j. Ravi Kumar

8/13/2019 j. Ravi Kumar

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A PROJECT REPORT ON

SALES PROMOTION

IN

KESORAM CEMENT INDUSTRIES LIMITED BASANTHNAGAR,

KARIMNAGAR

Project submitted

To

KAKATHIYA UNIVERSITY WARANGAL

In Partial Fulfillment of the Requirements for the

Award of the Degree of

MASTER OF BUSINESS ADMINSTRATION

Submitted By

J. RAVI KUMAR

H.T.NO.: 13087-C-1112

Under the Guidance of

G. RAVI KUMAR

Department of Business Management

ALLURI INSTITUTE OF MANAGEMENT SCIENCES

Hunter Road, Warangal506001,

Andhra Pradesh.


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DECLARATION

J.RAVI KUMAR here by declare that the project work entitled (SALES PROMOTION

STATERGIES KESORAM CEMENT COMPANY)submitted to Deparmentof Commerce and

Business Management, K.U Warangal in partial fulfillment for the award of the degree of MASTER

OF BUSINESS ADMINISTRATIONis a bonafied work done by me.

I also declare that the project id not submitted any ware else for the award of any Degree/diploma

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Introduction:

Basic needs like food to live cloth to wear and shelter to hide affect the common life

of people. Shelter is also necessary to protect the life from natural calamities. There

were number of changes of the process of constructing houses for the purpose of

having shelter. Till early twentieth century lime stone has been the main material for

the construction of house.

In India monuments like tajmahal, red fort, Qutubmitunar in the north konark

and khajuraha temples in central India, meenakshi and Madurai temple in south were

constructed with lime.

For the early twentieth century dominated the construction field. The availability of

Ingredients in all over the world in uniform quality entitled by centralized production

and strict quality control and above all the advent RCC made cement an essential and

widely used material for construction and permanent structures.

In this modern age cement industry is ranked as a basic industry because for every

development effort i.e. from the construction of single household to the building of

big multipurpose dams, cement constitutes a basic ingredient. It is used by the

consumers to have a strong and durable construction. They want a material which is

capable of strongly uniting masses. Cement, when mixed with sand and water in

proper ratio is able to give this benefit to the user.

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The cement is of many types. They include ordinary Portland cement, Portland strong

cement, Portland pizza land cement, white Portland cement, hydrophobic Portland

cement, oil well cement, rapid hardening cement, low heat Portland cement, high

strength Portland cement, super supplanted cement and alumina cement.

NEED OF THE STUDY:

Introduction of the study

The Indian market is very vast, both in terms of physical size of the territories

involved and the diversity of consumer the need for arises because the product has to

move to the consumer in the right quantity, at a specific time, and at the particular

place. The need for intermediaries in the delivery of goods is sometime questioned.

Particularly because the profit they earn or viewed as adding to the cost of the item.

However, this argument is fallacious, since it should be recognized that the function

these intennediaries person or 1ll1dISl.0Od to be more efficient and cheaper then what

the manufacture can manage. This is rationale for having a generation of form,

possession time and variability, utility. In other words the major objective of

distribution management is to ensure delivery at a minimum cost so the consumer

interest is served.

Marketing ~ channel decision is among the most critical decision facing

management. The company as chosen charnels intimately affect all the other

marketing decisions. The company pricing intimately affect all the other marketing

decisions. The companys pricing depending on where it uses mass merchandisers or

high quality. The as sales force and advertising decisions depends on how much

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Training and involved relatively long time commitment to other firms. There fore

management as well as today

OBJECTIVES OF THE STUDY:

l. To know the sales of Kesoram cement.

2. To know which grade cement is having much demand in the market.

3. To identify the problems faced by the retailers in distribution process.

4. To identify the complaints received by retailers from the consumers.

5. To know the position of Kesoram cement in the market.

6. To identify which distribution strategy is best.

7. To know which type of advertisement gives more positive results.

8. To study about the level of satisfaction of retailers regarding quality, quantity,

Price and package.

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RESEARCH METHODOLOGY

Research refers to a search for knowledge. One can also define research as a search on

a specific topic. infect, search is an act of scientific investigation

According to Lyford woody research comprises defining and redefining;

Problems, formulating hypothesis or suggested solutions, collecting, organizing and

1 evaluating data; making deductions and researching conclusions t determine whether I

they t the formulation hypothesis.

For the purpose of the study, the primary data and secondary data are

collected. The ordinary data is collected by following the observational method and

survey research method. While taking personal interviews of the stockiest the

Observational method is used. The survey research method is used to gain and insist

\

knowledge about the opinion of retailers of Kesoram cement vies-a-vies the other branch

the main research instrument used for the survey is a well structured questionnaire for

retailers consisting of questions interviews, group discussions and observations have

been also used to supplement and support the primary data generated through

questionnaire method.

The collected data is classified, tabulated, analyzed and interpreted.

From analysis, conclusions are drawn and suggestions are offered.

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RESEARCH DESIGN:

R The study was conducted in Karimnagar district. The research describes the

i s attitudes, opinion and view of the retailers on the Kesoram cement service, quality,

price, quantity, distribution, delivery etc., and also reason behind it. The research is

* designed to employ the statistical techniques are used in analyzing the data collected.

DATA:I A) NATURE OF THE DATA:

The study relies to a grant extent on primary data and to some extent

secondary data. The primary data consist of data collected from questionnaire. The

first hand information was obtained through primary data. Secondary data was

R obtained from internal sources of the form l

B) SOURCES OFDATA:

_The study is based on primary and secondary sources of data.

PRIMARY DATA:

R Primary data is personally developed data and it gives latest information and

_ offers much greater accuracy and reliability. The primary data is obtained from the

~ survey conducted on the authorized Kesoram retailers of Karimnagar.

~

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SECONDERY DATA:

It is published data and already available for use and it saves time. The main

sources of secondary data are published market surveys, government publications,

advertising, research report and intimae sources such as sales, purchase records, sales

Records, customer complaints and other business records.

The secondary data is obtained from the annual reports of Indian cement review (ICR)

Business magazines and news papers like the economic times and Indian express etc.

METHODS OF DATA COLLECTIONS:

A survey was conducted together data. The method adopted to elicit

Information was from two courses i.e. retailers and intimae sources of the mi. The

Questionnaire method was chosen to know the retailer satisfaction about the quality,

Service, delivery, price, etc. and also due to qualitative nature of the research.

SAMPLING

SAMPLE DESIGN:

Sample design is a definite plan for obtaining a sample from a given

population. It refers the techniques or the procedure the researchers would adopt in

selecting items for the sample.

SAMPLE SIZE:

For ascertaining the views of dealers regarding the various operational aspects

of Kesoram cement 120 retailers are selected from various towns in Karimnagar

District on the basis of convenient random sampling technique.

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The research universe comprises of the existing consumers of Kesoram

Cement. The exact size of universe is unknown. The sampling procedure adopted for l

the study was convenience sampling.

For ascertaining the views of dealers regarding the various operational aspects

of Kesoram cement 120 retailers are selected from various towns in Karimnagar

district on the basis of convenient random sampling technique.

MAJOR TYPES OF INTERMEDIARIES:

Retailer: a middleman who sells to ultimate consumers.

Wholesaler: a middlemen who sells retailers, commonly found in consumer

product marketing.

A Dealer: any middleman with legal authority to act on behalf of the

manufacturer.

4 Broker: a middleman who performs limited selling functions like seeking

Q orders for a principal. Usually, brokers have neither title to, nor possessions of the

merchandise.

Jobber: normally used in an industrial marketing context as a limited function.

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CHAPTER-II

THEORITICAL

CONCEPTS

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WHAT IS SALES PROMOTION?

Sales promotion refers to many kinds of incentives and techniques directed towards

Consumers and traders with the intention to produce immediate or short-term sales

effects.

DEFINITION

Sales promotion includes incentive-offering and interest-creating activities

which are generally short-term marketing events other than advertising,

. Personal selling, publicity and direct marketing.

The purpose of sales promotion is to stimulate, motivate and incidence the

\ purchase and other desired behavioral responses of the miffs customers. a

MORE ON IT...

Sales promotion offers a direct inducement to act by providing extra worth over and

above what is built into the product at its normal price. These temporary inducements

are offered usually at a time and place where the buying decision is range. Not only

are sales promotions very common in the current competitive market conditions, they

are increasing at a fast apace. These promotions are direct inducements. In spite of the

t directness, sales promotions are fairly complicated and a rich tool of marketing with

innumerable creative possibilities limited only by the imagination of promotion

;planners. Sales promotion is often referred to by the names of extra purchase value

and below-the-line selling.

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'Used to achieve short-term sales

Sales promotion IS a separate and distinct element H1 the promotion mix and IS an

important and poweril tool of marketing. The aim of sales promotion is goal-

oriented to achieve sales/marketing objectives which are short-term and immediate.

Generally, sales promotion is not used to generate long-term results or sales in the

future, but rather to generate sales results now.

i Example: promotions mostly say lasts till which is aimed at increased sales

till that date. This would induce trials, and even the existing users would increase

consumption.

Becoming too common

Sales promotion has been traditionally viewed as a non-recurrent selling activity.

However, this does not portray the present market conditions where frequent and

repeated sales promotion programmers have become necessary to maintain business

in many product categories. The reality is that sales promotion has become an all too

recurrent activity.

Today we and companies in almost all sectors offering some sort of a promotion

scheme. These sectors range from automobiles to beverages, from financial services

to foods, from household durables to services, from household products to business

products, from personal care to textiles and apparel.

Here are examples of each.

Automobiles: Marla Suzuki tiered a 22-carat, 10gm T apish gold coincide

and lots of other exciting prizes, Other prizes include 50 Rs. 50,000 T apish

gift vouchers, 10 Rs. 1 la/ch Tarnish gift vouchers and a grand bumper prize

of I kg gold with every new Marti 800 or Omni.

Financial services."T are finance tiered Free Tata Finance credit cards with

every car/financed j

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Foods:Nestle offered Free 50g Johnson 's baby soap with every 400g Cerelac

pack.

Household durables:Samsung offered a free book on Indian recipes and free

cookery classes. Up I o Rs. 2000 off & Boorish dishes worth Rs. 510, on

buying Samsung Microwave Ovens.

Q Services: CMC Computer Education tiered a set of 3 CDs of Britannica

Encyclopedia worth Rs. 1995free on enrolling for DST & cDAST.

1 Household products: Kodak Express offered a Dill Chula hay T -shirt free

with any Kodak camera.

v Business products: Godrej jeered prizes like a Ford Icon car, Godrej air

conditioners, Godrej auto clean washing machines and more on purchase of

Photocopiers and Digital Mulii-function products.

Pearsall erne: Fem had an offer of save Rs. 79 on buying a 1-litre pack of

Fem soft gentle soapi

Many types of sales promotion require participation of customers who are

encouraged to take some action and invest their time and effort.

But sales promotions are not always short term. It would be reasonable to say that

promotions are reasonably short term because in many product categories, extra

discounts continue on a regular basis. Likewise, some product brands always contain

in-pack premium.

For example, each pack of 'Barossa agarbalti ' contains either a stainless steel glass

or a small bowl.

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Writing about sales promotion tools, Prof. Philip Kilter observes they have 3

distinctive characteristics.

1. Communication:they gain attention and usually provide information that

may lead the customer to the product.

2. Incentive:they incorporate some concession, inducement, or contribution

that gives value to the consumer.

3. Invitation:they include a distinct invitation to engage in the transaction now

(offer valid till ...0r lill stocks last)

Major users of sales promotions are marketers of soaps, detergents, toiletries, soft

drinks, toothpastes, tea, coffee, footwear, textiles, readymade garments, consumer

durable goods, music systems, autos, televisions, washing machines, microwave

ovens, refrigerators, magazines and many other household items. In fact the list of

product categories using sales promotion is ever-increasing, no matter what the

product category, it could be staples, impulse goods, emergency goods shopping

goods, specialty goods, unsought goods, industrial products, or different types of

services.

Sales promotion is now established as an important and increasingly respectable

element of the marketing communication tools. Sales promotion expenditures are

increasing dramatically, and economic recession is most likely to fuel this trend

further.

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DIFFERENCE BETWEEN ADVERTISING AND SALES PROMOTION

By using variety of persuasive appeals, it offers reasons

to buy a product or service.

Besides giving reasons in the form of different appeals,

they offer incentive to the consumers to buy the product

or service now.

Appeals are emotional or functional in Appeals are rational

Time-frame is long term Time-frame is short term

The primary objective is to create an To get sales quickly or to induce trial.

Indirect and subtle approach towards

persuading customers to buy a product or service

Direct in approach to induce consumers to

buy a product or service immediately by

temporarily changing the existing price-

value relationship of the product or

service.

But both advertising advertising and sales promotions go hand .Both are very essential to achieved success. Both

are complementary to each other.

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THE ADVANTAGE OF ADVERTISI9NG FOLLOWED BY PROMOTION OVER ONLY PROMOTION

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RELATIVE COMMUNCATION STRENGTHS OF ADVERTISING AND PROMOTION

REASONS FOR RAPID GROWYH OF SALES PROMOTION

There are a number of reasons that are favorable to the growth of sales promotion;

The ai4r of change is gaining momentum after the introduction of economic liberalization Due to increase

in competition companies are finding it increasingly difficult to compete on quality .They are there fore

resorting to more and innovative methods of sales promotion

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To break away from the clutter. Samsung introduced the phod ke dekho ' and phir se

phod ke dekho ' offers, which helped increase sales.

Customers Have Become More Price Sensitive

This increased price sensitivity is a direct result of rampant inflation. Economic

recession is likely to fuel this trend further, as consumers and dealers become more

sensitive towards prices.

The case of Akai TV presents an interesting example. This television star/ed

introducing quite attractive deals, one after the other and gained a substantial share

of the C TV market. Continuous promotions have abetted the price perceptions of

consumers across the product category, and today the situation is such that

customers in general look or waitjbr promotional deals on their preferred brands of

CTV. They are not much moved by the advertising that might extol about the highly

advanced features and quality of most brands. They usually consider buying CTVs on

price cuts.

0 Sales Promotions Maximize Profits

A nmnbcr of economic theories conclude that a company can maximize profits by

using sales promotion. Such promotions can permit price discrimination by allowing

the brand to compete in 2 or more different market segments. Sales promotion may

allow a premium brand to compete with a lower tier brand among price sensitive

consumers. For example, a premium band of toilet soap may be on promotion in

some price sensitive markets, while in the remaining markets it is sold at its normal

price.

9 Sales Promotion Specialists Are Available

As a result of economic liberalization. the number of management institutions has

increased. This has lead to the availability of specialists, who are not only well paid

but can handle this specialized work more efficiently in the current market

conditions, where sales promotion has become more important

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ADVANTAGES OF SALES PROMOTION

Sales promotions have a signee cant effect on the behavior of consumers and trades

people. Such promotions can bring in more profits for the manufacturers because

they permit price discrimination.

DISADVANTAGES OF SALES PROMOTIONS '

While sales promotion is a powerful and effective method to produce immediate short

term positive results, it is not a cure for a bad product or bad advertising. In fact, a

promotion is speed up the killing of a bad product. A consumer may be motivated to

try to new products because of the incentive but after this the product itself must take

over.

Pepsi Aha launched at sales promotion campaign for its launch, though the promotion

was effective, ineffective advertising and publicity led to the downfall of the brand.

Q Increased price sensitivity

Frequently promoted brands in the product category, especially on the basis of price,

make consumers and traders more price sensitive not only for the promoted brands

but for other brands as well in the same product category.

Consumers wait for the promotion deals to be announced and then purchase the

product. This is true even for brands where brand loyalty exists. Customers wait and

time their purchases to coincide with promotional offers on their preferred brands.

Quality image may become tarnished

U If the promotions in a product category have been rare, or the product happens to be

of high involvement category, the promotions could have a negative effect about its quality image.

Consumers may start suspecting that perhaps the product has not been

selling well, the quality of the product is true compared to the price or the product is

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Promotion. So after a paint af time a good number of consumers started suspecting its

quality and almost no one is prepared to call il u high qualify brand.

Because of competitive pressures, now almost all brands of color television period

market are available on one or the other promotional deal and consumer perceptions

are that almost all the brands have same quality and performance in a price range.

Even a top-of-the-line brand like Sony having technological edge, has occasionally

announced promotional deals because of competitive pressures as promotions have

become common in the category.

Q Dealers forward by and divert stocks

ln case of deals for the trade, many dealers forward by, in excess of their inventory

requirements. This is particularly happens if a product is low bulk, much in demand

and the inventory holding costs are favorably low. This is true both for wholesalers as

Well as retailers. Forward buying of excessive stocks on deals or quantity discounts

can lead to diversion of some of the stocks in non-deal areas, Forward buying of

excessive stocks on deals or quantity discounts can lead to diversion of some of the

stocks in non- deal areas. Wholesalers and retailers do not hesitate in selling these

excess stocks in non- decal areas on prices that are less than the list price, but keeping

some reasonable margin for themselves. This is likely to have a negative effect on

price discrimination efforts of the company as dealers and those areas would not be

buying even the normal requirements from the company.

6 Merchandising support from dealers is doubtful

One of the trade promotions tool is to offer promotional allowances to trade people to

motivate them to provide merchandising support and to pass on some benefit to

consumers. This generally is the condition attached with such promotional

allowances. In many cases, the dealers do not cooperate in providing the

merchandising support nor do they pass on any benefit to consumers. The retailer

might not be willing to give support because he does not have the place, or the

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Product does not sell much in lolls shop, or may be he thinks the effort required rs more

W than the commission/benefit derived.

l 0 Short-term orientation

3 Sales promotions are generally for a short duration. This gives a boost to sales for a

short period. This short-term orientation may sometimes have negative effects on

long-term fixture of the organization. Promotions mostly build short-term sales

volume that is not maintained. Heavy use of sales promotion, in certain product

categories, ma be res omissible for causing brand alit imam dilution.

A dealer in second-hand cars had to close shop because he was able to attract '

customers only during heavy promotions. The investment made on attracting

customers was not showing any continua] returns.

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TECHNIQUES OF SALES PROMOTION

PRICE DISCOUNTS OFF INVOICE allowance Sales conests

Price pack deals Buying allowance Incentives

Rebates/refunds Display and adverisiting allowance Awards and prizes

Continuity programs Buy back allowance Premiums(gifts)

Coupons Bill back allowance Sales meetings

Samples Count and allowance Sales manuals etc

Contests and sweepstakes Slotting allowance Salles manuals etc

Premiums and advertising

specialties

Merchandise allowance

Free trials Pop displays

Brand placement Cash rebate

Event sponsorship Free goods

Product warranties Trade coupons

Exchange offers Dealer listing

Internet promotions Dealer loaders

Low interest financing Sales contests

Free service camps SPIFFS(PUSH MONY)

INCENTIVES

Sales training programs

Trade shows

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CONSUMER SALES PROMOTIONS

Sales promotions directed at the end-user, whether by the manufacturer or the retailer,

are called consumer sales promotions. Manufacturer announced promotions to

consumers are based on pula strategy of the manufacturer and retailer announced

promotions to consumers constitute usher strategy of the retailer.

Objectives of consumer market sales promotions

The following basic objectives can be pursued with sales promotions in the consumer

Market.

Stimulate trial purchase

When a rim wants to attract new users sales promotions tools can reduce the

consumers risk of trying something new. A reduced price or offer of a rebate may

stimulate trail purchase.

I When Dove was launched in the market, people had u certain reservation against

the product. Why?

There were two reasons:

a. Price actor Most housewives found Dove to be pretty steep and thus

consumption was restrained.

b. Secondly, the rumors of one if its ingredients being animal fat.

HLL began a sales promotion campaign: Get Dove soap free with a kilo of Surf

Excel. With this promotion tactic, HLL got the opportunity of converting non-

Users of Dove to users. At the same time changing attitudes of other detergent

users by converting them to Surf users.

I Pentene when it was launched did u lot of sampling, to stimulate trail purchase.

Their efforts have surely shown results, with Fastened being one of the top selling

brands in India today.

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Stimulate repeat purchases

In-package coupons good for the next purchase, or the accumulation of points with

repeat purchases, can keep consumers loyal to a particular brand.

The most prominent frequency programs are found in the airline industry where

competitors try to retain their most lucrative costumers by enrolling them for various

perks such as frequent dyers can exam free travel, hotel stays, gifts etc.

I McDonaI1ls India has targeted a lot at the kids. To keep them coming in again

and again they introduced the happy meal concept where they used to give away

diesel toys every week. And they advertised about it saying collect your entire

set of toys. This concept really worked and has shown u tremendous increase in

the sales and is presently an integral part of their marketing strategy.

I Jet Privilege

Jet privilege is a rewarding and customer friendly frequent /Iyer programmed in the

country as ajet privilege member one can earn JP miles not only on jet airways but

also from many other programmed partners of the program me.

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SALES FORCE PROMOTION

Sales promotion directed towards the sales people is referred to as sales force

promotions. These schemes are intended to motivate sales people to put in more

efforts to increase sales, increase distribution, promote new or seasonal products, sell

more deals to resellers, book more orders, develop prospects lists and build up morale

and enthusiasm. Some of these activities are meant to prepare the sales people to do

their jobs well and include sales meetings and manuals, training programmers, sales

presentations, lm and slide shows etc. Prize distribution to winners is the more

tangible aspect of any such programme.

Objectives of sales force promotion schemes are:

Increase sales volume

Introduce a new product

Reducing selling costs

O Offset competitive promotions

Improve working habits

6 Develop new prospect lists etc. -

Tools used in sales force promotions

T 0 Sales meetings

T Sales meetings are generally organized for sales people fond one area, region or

district more frequently, usually once a month, once in two months, or quarterly.

These meetings bring together sales people from different territories of the nation and

are considered a popular way of educating sales people. There is a varying mixture of

business and pleasure.

Educational material of sales meetings generally focuses on product knowledge ,

1 selling skills and motivation of the sales force. The programme often includes formal

lectures, quiz shows, etc. The purpose is to generate interest and enthusiasm and the

winners are awarded prizes and certificates.

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max Healthcare

Objective: to celebrate the annual day of Max-India and instill a sense of pride

amongst the employees being exclusive Max-team members.

Strategy: presentations, reviews and their vision for the future marked the evening.

An address by the chairman, Mr.Analjit Singh and the award ceremony were the

highlights. The vent itself was held in park royal, Delhi. Linefeed often evening was

transmitted on audio-visual screens. This exclusive live relay added to excitement

among the invitees.

6 Sales Manuals

Training materials such as manuals, visual aids, ip charts, programmers, learning

books are most useful to sales people. Sales manual may be long or short depending

upon the type of the products manufactured and sold by the company. The sales t

manuals usually contain product details, applications, manufacturing processes,

prices, sales techniques etc. Some companies also have house journals that reports

about the company programmers, new products, research activities, new polices,

awards, promotions, etc.

In any rm where personal selling is critical for the sale of the product incentives to

the sales people become very important. Incentive programmers most often used by

the company include paid vacations within or outside the company, cash rewards,

prizes, honor awards, merit certificates for excellent performance etc.

Training

Sales contests

incentives

Awards and prizes

Premiums (gifts

C0nsumer-cum-Dealer-cum-Sales force sales promotions:

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How does a sales promotion influence sales

: There are 4 basic mechanisms involved: t

: 1) Brand switching

: 2) Repeat buying

; 3) Purchasing more or accelerating timing

4) Increasing category expansion and consumption

; 1) Brand switching

; The objective of some sales promotions is to induce brand switching, i.e.

; encouraging the consumers to purchase the promoted brand instead of the regular

; brand that would have been purchased had there been no sales promotion. This

_ type of brand switching is often called aggressive switching '. The second type of

: promotion effect on brand switching is considered as defensive switching.

: this case, the objective is to retain the customer by encouraging him to buy the

same brand as was bought on earlier occasions.

; Gore Q/ed free gas plus discounts on its washing machines to make T

consumers shift from newly arrived competition (Samsung). That was an

aggressive strategy.

-a prevent its customers from shifting to Godrej, Samsung had to launch a

Q similar scheme of free gifts and price discounts. This was a defensive strategy.

; Thc manufacturer concern is to compete with other similar brands, While the

:1 conked of the reseller is to encourage customers to buy from his store. When a V

._ retailer promotes, consumers respond by switching stores, i.e. they purchase from

: the store that is promoting instead of the regular store.

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I Promotions offering price deals incidence the attitude of consumers towards

buying the brand. Much would depend on the size of the discotmt and the

consumers sensitivity towards price and how much importance consumers place

on price as compared to quality. If the attitude toward the brand has been quite

5low compared to some other brands, then a price promotion is likely to encourage 5

a switch to the promoted brand. Such price promotions may also encourage

consumers to buy an otherwise expensive brand which they could not afford on

the normal list price

Displays at the points of purchase may induce brand switching because they

serve as conditioned stimuli associated with price promotions. Over a period of

time, consumers get trained to associate displays with price reductions and

respond even when the price reduction is not there.

If most of the consumers are inclined towards low prices because of economic

conditions, the majority of them are assumed to be buying low priced brands.

However, if the price of an expensive item is reduced because of a promotion,

some consumers from low quality category will switch to the promoted brand.

But when the low quality product is promoted, there is no switching because the

: consumers have been buying the brand without promotion. The consumers from

high-income group are unlikely to switch to low-price brand because of

ii promotion and the sales gains would not be there

2) Repeat buying

When a consumer buys a product on promotion, this may lead to developing a

habit towards purchasing that brand and some evaluation about the performance

of that brand. It may also happen that since the brand is purchased on promotion,

the consumers attitude towards the brand weakens, and the probability of

purchase in declines. Repeat purchase may result because of habit

formation that may develop because the brand is bought more than once due to

sales promotion. Much depends on the satisfaction of the consumer with the

brand purchased on promotion.

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For example, if customer purchased a Godrej refrigerator on promotion and

was stained, il is very like/ that next time when the need arises, lye customer

would purchase the same brand again on promotion, or other products of the

same manufacturer when available on promotion.

Repeat purchasing is often the result of habit formation and learning. Sales

promotions stimulate the customers to by a product and this becomes the first

step towards establishing a habit. Another route is not to allow the brand user to

shift to some other brand by rewarding and reinforcing the already established

behavior.

In case of low-involvement products, the role of habit is more important. The

consumer does not want to devote much time to thinking and pre-purchase

evolution in making a purchase decision. Habit helps the customer avoid any

cognitive effort and helps as a simple and convenient way to decide which brand

to purchase.

Once a consumer gets used to the long-lasting ejects of Duracell batteries, it

becomes a habit and he would not think much beware going in its the same brand

again.

In case of high-involvement products, it is assumed that learning takes place

when the consumer experiences the actual performance of the product and makes

an evaluation. A favorable evaluation is likely to help sustain the habit. ln some

cases, even consumers with low involvement oen make evaluations that may

have repercussions with regard to developing the habit.

This holds true to a great extent in case of industrial products, where the actual

experience after initial usage is very important.

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3) Purchasing more or accelerating timing

Purchasing more and accelerating timing refers to those situations when

cons tuners buy more than their immediate requirement, or shim their purchase

timing as a result of promotions. When resellers buy more than their normal

requirements, it is called forward buying Building excessive inventories in this

manner often leads to stock diversion in non-deal areas. Another important

repercussion of this purchase behavior is that it merely shifts the purchases which

would have occurred anyway.

For example, if a consumer buys more than the immediate requirements, then in

the next purchase period, this consumer either would not buy, or buy less. In

another situation, due to promotion, the consumer buys the refrigerator now,

though the intention was to buy 2months.

This is purchase acceleration.

Another effect of promotion can be that consumers who have bought in excess of

their requirements would be out of the market. Similar would be the retailers

shelves are full. This can help in preempting the competition. Such acceleration

in purchase quantity would also help in preventing brand switching, and in some

cases, more consumption of the product.

The reverse may also be true in certain situations, i.e., negative acceleration when

the consumers buy less or decide to purchase later rather than now. This may

happen when the sales promotion stimulates brand switching. The consumer

wants to try the product and buys a smaller quantity to reduce the risk associated

with using something new. The consumer may also postpone the purchase of a

product because he/she learns from some source about the forthcoming salespromotion or anticipates it.

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4) Increasing category expansion and consumption

Sales promotions are likely to stimulate demand by creating new occasions for

purchase or by increasing the consumption rate of consumers. In certain situation,

the purchase of a product category gets accelerated. Sales promotions such as

displays can create new purchase occasions by the reminding the customer that

the displayed product is good for growing children (protein biscuits). Other

products, for example noodles or potato chips purchased on promotion in

multiple units, can increase the consumption rate, which is often the objective of

many promotions.

One example can be of condensed milk, (Milkmaid)i An attractive display of /his

brand is arranged and agree recipe book is given on purchase af2 packs. This is

quite likely to increase the rate of consumption of this product and consumers

will he tempted to try different recipes.

In case of many high-involvement products, promotions can help consumers to

realize that a certain product would serve as a good item (a silk sari, camera,

a Cadbury pack Ray-Ban sunglasses, etc). In some cases, there is a certain price

limit beyond which the consumers will not buy a product. However, a price

promotion offer lowers the price of the product below the customer price limit,

and thus a purchase occasion is created. Many customers buy cars when available

on promotion such as interest-free installments, which otherwise they are not in a

position to buy on down payment. Of late, this is happening in case of almost all

brands of computers. .

Observations in the market place point to the likelihood that brand switching,

repeat purchasing, purchase acceleration and consumption, all occur

simultaneously. The net result, however, is that sales promotions work.

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SALES PROMOTION BUDGET

The allocation of monetary resources to sales promotion is determined by the

promotional strategy of the mi.

Ln most cases, first the total amount of money for promotion is detennined then it is

budgeted for different activities. Before deciding the money allocated to sales

promotion, the management should evaluate relevant factors such as type of product,

its stage in PLC, the market situation, level of competitive activity, etc. All these

factors, alone or in combination, can significantly affect the promotional budget.

There are live important techniques that are commonly used to allocate funds to sales

promotion.

Q Percentage nestles method

The percentage of sales method to allocate the funds is probably most popular among

companies. ln this approach, the budget is determined by taking a fixed percentage of

sales. The sales figure taken could pertain to the previous year, or the average of

several past years. This percentage could also be based on the forecasted sales of the

year under consideration.

9 Unit of sales method

This method is commonly used by companies dealing in high-priced products,

generally consumer durable goods such as four and two wheeler auto-manufacturers,

refrigerators, washing machines, microwave ovens, entertainment electronics and

many other items.

Instead of rupee value of sales, as in the previous method, the base is the physical

volume of either the past or anticipated sales. This figure of units is then multiplied

by a fixed amount of money to reach the budget amount. For example, the

manufacturer might allocate Rs. 2000/- per unit for sales promotion.

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Competitive parity method

Many marketers match or base their sales promotion budget to that of the major

competitors. The logic attributed to this method is that the collective minds of the

companies in the industry probably generate promotion budget that are close to i

optimal and any departure from the industry norms may lead to promotion war.

All you can afford method

In using this approach to budget allocation, the amount that is leftover after all other

relevant allocations have been made, is earmarked for sales promotion. This approach

is used, generally, by companies with small budget, or by some other companies,

large as well as small, when they are introducing a new product. It is merely an

availability oriented budget and quite unsophisticated. Apparently, there is no

realization that in a competitive market situation, sales promotion mainframe sales in

many ways.

Objective end task method

As mentioned earlier, the promotion budget is determined by the overall promotional

strategy. Objective end task method approach is the one which is driven by strategy.

This is also the most popular technique to decide the sales promotion budget. The

promotion manager starts by making a thorough study of the market, the product,

competition and consumer behavior in order to set up appropriate promotion

objectives. These objectives may relate to increasing short-term sales, introducing a

new product. stimulate trial, increasing distribution, etc., within a specifiess period of

timer Next step is to determine how much money would be necessary to accomplish

each task involved in achieving the objectives. If the costs happen to be more than

the money available, then either the promotion objectives adjusted or more funds are

made available from the contingency reserve or by reducing the budgets of the other

promotional activities.

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SALES PROMOTION EVALUATION

Measurement of results in any area of business activities related to the objectives that

are set. To accomplish this, set of evaluation criteria is laid down before the

implementation of the sales promotion programme. A number of these objectives are

directly related to sales. In all such cases, the measurement does not pose any

complexity and the sales based techniques can be used with relative ease. For I

instance, it is quite easy to measure the sales effect before, during and air the sales

promotion. In case of objectives not related to sales, such as trial purchase, or

changing consumer awareness and attitude as resultant increase and perceived value

of the product, measurement is more difficult. In certain types of promotion, the

reseller support is important and can have significant effect on marketers promotion

performance.

Pretesting

l-low sales promotion is to be communicated and what would be communicated to the

target groups is important and can be pretested. For example the pre-tested may n

out what is likely to be the perceived value and the risk. A customer considers

whether it would be wise to buy an LL\1kn0Wl'l brand of sport shoes at a 45% discount.

In this offer was there a risk of buying an unfamiliar brand? The pre-test can be

conducted to assess these factors by using focus groups and consumer panels.

Another approach, ballot method, consists of kneeling a ballot paper to a list of

Consumers. They are requested to evaluate different illustrated promotion is and vote

for the most light and rectum the ballot to the rm. A relatively expensive but more

Accurate method is a portfolio test. A portfolio of sales promotion is prepared and

Shown to consumers in person and the responses are noted.

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Strategy

Strategyis the direction and scope of an organization over the lung-term: which

l achieves advantage for the organization through its configuration of resources within

a challenging environment, to meet the needs of markets and to stakeholder

l expectations"

Strategy,a word of military origin, refers to a plan of action designed to achieve a

particular goal. In military usage strategy is distinct from tactics, which are concerned

with the conduct of an engagement, while strategy is conceded with how different

engagements are linked. How a battle is fought is a matter of tactics: the tens and

conditions that it is fought on and whether it should be fought at all is a matter of

strategy, which is part of the four levels of warfare: political goals or grand strategy,

strategy, operations, and tactics. Building on the work of many thinkers on the

subject, one can define strategy as "a comprehensive way to try to pursue political

ends, including the threat or actual use of force, in a dialectic of wills ~ there have to

be at least two sides to a conch. These sides interact, and thus a Strategy will rarely

i be successful if it shows no adaptability." Strategy has been extended beyond its

traditional ends, military and grand strategy, to business, economics, game theory

and other lids.

Strategy at Different Levels of a Business

Strategies exist at several levels in any organization - ranging from the overall

business (or group of businesses) through to individuals working in it.

a Corporate Strategy - is concoct with the overall purpose and scope of the business

J to meet stakeholder expectations. This is a crucial level since it is heavily inuenced

by investors in the business and acts to guide strategic decision-making throughout

the business. Corporate strategy is often stated explicitly in a "mission statement

Business Unit Strategy - is concerned more with how a business competes

successfully in a particular market. It concerns strategic decisions about choice of

products, meeting needs of customers, gaining advantage over competitors, exploiting

or creating new opportunities ctc.

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Operational Strategy - is concerned with how each part of the business is organized

to deliver the corporate and business-unit level strategic direction. Operational

strategy therefore focuses on issues of resources, processes, people etc.

How Strategy is Managed - Strategic Management

ln its broadest sense, strategic management is about taking "strategic decisions" -

decisions that answer the questions above.

In practice, a thorough strategic management process has three main components,

shown in the figure below:

Strategic Analysis

This is all about the analyzing the strength of businesses position and understanding

the important extremely factors that may inuenced that position. The process of

Strategic Analysis can be assisted by a number of tools, including:

Strategic planningis an organization's process of defining its strategy or direction,

and making decisions on allocating its resources to pursue this strategy, including its

capital and people. Various business analysis techniques can be used in strategic

Planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and

Threats ), GE/Mc(inset portfolio analysis, COPE analysis PEST analysis (Political,

Economic, Social, and Technological), STEER analysis (Socio-cultural,

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Technological, Economic, Ecological, and Regulatory factors), and EPISTEL

(Environment, Political, informatics, Social, Technological, Economic and Legal).

Strategic planning is the formal consideration of an organization's future course. All

strategic planning deals with at least one of three key questions:

l. "What do we do?"

2. "For whom do we do it?"

3. "How do we excel?"

Strategic planning tools and approaches

Among most useful tools for strategic planning is SWOT analysis. The main objective

of this tool is to analyze internal strategic factors, strengths and weaknesses attributed

to the organization, and extremely factors beyond control of the organization such as

opportunities and threats. Besides SWOT analysis, portfolio analyses such as the

GE/McKinscy matrix or COPE analysis. Can be pardoned to determine the

strategic focus.

Other tools include Balanced Scorecards, which creates a systematic framework for

strategic planning, and scenario planning, which was originally used in the military

and recently used by large corporations to analyze future scenarios.

Business Strategy Mapping

Business Strategy Mapping is the discipline of mapping business opportunities from

potential to portability and the points in between. This method is different from

other methods in that it visually shows how marketing, Nance and operational

strategies relate to each other and need to together in order to optimize the results

of all the strategies. Business Strategy Mapping assists managers in better

understanding how to generate and deliver value to both the customers a.nd thc

companies.

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Strategy map

A strategy map is a diagram that is used to document the primary strategic goals

being pursued by an organization or management team. It is an element of the

documentation associated with the Balanced Scorecard, and in particular is

characteristic of the second generation of Balanced Scorecard designs that first

appeared during the mid 1990s. The first diagrams of this type appeared in the early

1990s, and the idea of using this type of diagram to help document Balanced S

Scorecard was discussed in a paper by Kaplan & Norton in 1996 [

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CHAPTER-III

COMPANY PROFILE

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CEMENT INDUSTRY PROFILE

History

Cement is an essential commodity on which our standard of living is greatly

dependent. It is a ne ground powder, which when mixed with water sets to a hard

mass. Cement was invented by JOSEPH ASPIDIN a leading builder and brick Lauer.

Cement was patented in the year 1824 in England.

German standard comities: DEF

Binding agents consisting essentially of compounds of oxide, with silica, alumina and

iron oxides, this can harden in air and under Water and are stable in water after they

harden and which further more satisfy the conditions to strength.

The basic raw material for production of cement is limestone which is

available plenty in India in the form of limestone is excavated by mechanical means

and processed through primary and secondary crushers to the required sizes.

All basic raw materials consisting of:

Lime (CAO) 60-67%

Silica (SIO2) 17-25%

Alumina (al2o3) 3~8%

Iron oxide (fe203) 0.5-6%

Magnesium l-4%

Are nely grounded on the raw mills and heated to a temperature of about

1500c in the Rotary kiln resulting in the formation of CLINKER The clinker is

ground to a ne powder. The clinker is containing the following components.

C3s- tribalism silicate (About 45%)

C2s declaim silicate (About 25%)

C3s tricalcium aluminates (About l0-12%)

Required quantity of gypsum (about 2-3%) is added to control the setting time

to facilitate easy working. This is done in a cement mill or ball mill of several

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compartments charged with progressively smaller hardened balls. The mixture is

ground to the required newness and transferred to storage soils. From here, the cement

is bagged and packed where from it is transposed either by road to the desired

Destinations.

Continuous monitoring of the quality of cement is exercised, both at the raw

material stage and also at the finishing stages with the help of X-ray analyzer etc; no

replacement exists for the cement in the foreseeable future and it is bound to retain its

prominent position as a construction material.

Indian cement industry is the fourth largest in the world producing 70 millions

off with 106 major plants

China ~ 380 million tones

Japan ~ 110 million tones

USA 90 million tones

The total world cement production is around 1400 tones.

TYPES OF CEMENT GRADES

Earlier depending upon the requirement, different varieties of cements were

manufactured. The following are the major varieties of cements:

1. Ordinary Portland cement (ope)

2. Portland pozzoland cement (ppc)

3. Portland slag cement (psc)

4. Rapid hardening cement (src)

S. Low heat Portland cement (lhc)

6. Oil well cement (owc)

7. White cement (wc)

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PERCENTAGE OF EACH TYPE OF CEMENT TO TOTAL CEMENT.

COMPANY PROFILE

Kesoram cement is branch unit of Birla house. The house reliability. Kesoram

is mainly known as in the form of Shri.B.K.Birla group Kesoram cement industry is

located at Basantnagar in Karimnagar district of Andhra Pradesh. Basantnagar is

8km away from Ramagundam Railway station linking to Chennai to New Delhi.

History:

One among the industrial giants in the country today serving the nation on the

industrial front Kesoram industries limited has a chequered and eventful history dating

back to 20"s when the industrial house of Birlas acquired it with only a textile mill

under its banner in 1924 it grew from strength to strength and spread it activities to

never ends like rayon, pulp, transparent paper pun, pipes, refectories, types and other

products.

Looking to the wide gap between the demand and supply of a vital

commodity, cement which place and important role in national building, the Govt. of

India censed the cement industry in the year 1966 with a view to attract entrepreneurs

to augment the cement production. Kesoram rose to occasion and decided to setup

few cement plans in the country.

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Many a site in different parts of the country was considered but the final

choice fell on Andhra Pradesh a site in the Godavari river valley at Thakkalapally

reserves has been selected for putting up the first cement plans. It has got natural

advantages like power station, coal mines and rill head are located with in a radius of

15km from the site. Having located a site Kesoram lost no time in drawing up a

blueprint for a modern cement plant with an ultimate aim to resources men and

material at its command, it did not take much time to execute the project.

Kesoram cement factory is surrounded by a wide range of limestone deposits.

Kesoram serving railway station is Ragavapuram in Kazipet Ballarshaw section of

south central railway. It is bounded by singareni collieries, NTPC, FCI and APSEB

power house which makes area industrial.

Kesoram cement is one of the prestigious renowned Kesoram group of

industries which is one of the Indias leading industrial conglomerates under the

stewardship of SYT.B.K.Birla, the doyen of Indian industries. It is one of the leading

manufacturers of cement in India. It is a dry process cement plant with capacity of 9

lakes per annum.

The cement plant of Kesoram with a capacity of 2.5 Lakh tons per annum was

established in 1969 at Basantnagar a backward area in Karimnagar district of AP, the

second unit followed suit which added a capacity of2 Lakh tones in August 1978, 1.13

Lakh tones in 1981 and 0.87 Lakh tones in September 1981.

Kesoram set up a l5M.W captive power plant to facilitate of an uninterrupted

power supply for manufacturing of cement in 1997. the plant incorporates the

technology in cement making; it is professionally managed and well established

cement manufacturing company enjoying the confidence of the consumers.

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Kesoram produces:

1 Ordinary Portland cement (opc)

I 43 grade-known as Birla supreme

0 53 grade-known as Birla supreme gold

2 Portland pozzoland cement (ppc)

SUPREME PERFORMANCE:

Birla supreme, the 43-grade cement is widely accepted popular brand in the

market commanding a premium However need the specific demands of the

consumers Kesoram brand out the 53-grade-known as Birla supreme gold which is

special quality like higher fineness, quick setting, durability etc

Ppc is known as Birla Shakhty which attracted by people its qualities and rate

margin compared to open. All quality system of Kesoram have been certified under

INTERNATIONAL STANDARD ORGANISATIONwhich proves the world wide

acceptance.

SUPREME STRENGTH:

Kesoram cement has huge captive limestone deposits which make it possible

to possible to feed high grade limestone consistently. Its natural gray color is in-born

ingredient and gives good shade.

Both the products offered by Kesoram i.e. Birla supreme-43 Grade and Birla

supreme-53 grade cement are outstanding with much higher compressive strength and

durability. The following characteristics show there distinctive qualities.

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PROCESS AND QUALITY CONTROL:

It has been the endeavor of Kesoram to incorporate the worlds latest

technology in the plant and today the plant has the most sophisticated, state of the art

technology in its process.

X-RAY ANALYSIS:

Fully computerized XRF, XF Dand X-RAYanalyzers keep a constant round

the clock vigil on quality.

DCS SYSTEMS:

DCS ( Distributed controlled system) is installed in clinker making process of

Kesoram cements since it is key step in the overall cement making process is totally

computer controlled. The DCS is constantly monitors the process and ensures

operating efficiency. This eliminates variations and ensures consistency in the quality

of clinker.

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DEPOT SALES:

Kesoram cement is maintaining marketing depots as head quarters in different

places in Andhra Pradesh, Maharashtra, TamilNadu, Kama taka and Orissa states.

1ANDHRA PRADESH:

Hyderabad

Warangal

Karimnagar

Nizamabad

Vijay Wada

Nell ore

2. MAHARASHTRA:

Amoretti

Akolo

Jalgoan

Nagpur

Nanded

Chandrapur

Wardha

3. TAMIL NADU:

1 Madras

4, KARNATAKA:

I Bangalore

5. ORISSA

Berhampur

Sales will take place from depot to:

Retailers/ stockiest

Builders/ contractors

Pipe factories-Industries

Direct consumers

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Government and semi government Bodies

FEATHERS IN KESORAMS CAP:

Kesoram has put standing track record, achieving over 100% capacity

utilization in productivity and energy conservation. It has provided its designation by

bagging several national and state awards, noteworthy being.

NATIONAL & STATE AWARDS

National productivity award for 1985 &1986

National award for mines safety 1985-86 &1986-87

NCBM ( national council for cement and building materials)s national

award for 1989-90

Prestigious state award, Yajamsnya Ratna and Best management award

for 1989.

9 FAOCC1 (Federation of AP chamber of commerce and industry) award for

best family planning effort in the state for the year 1991.

9 May day award of the government of AP for best management and

Jawaharlal Nehru Silver Rolling Trophy for best industrial productivity

effort in the state, sponsored by FAPCCI for the year 1993.

F FAPCCI award for best efforts of industrial in the state to develop rural

economy twice in the year 1994 as well as in 1998.

9 National award (Sheri. S R Ragtag) for social awareness for the year 1995-

96

The best rural development efforts made by the company got FAPCCI

Award for Best workers welfare

Kcsoram got the first prize for Mine Environment and pollution control the

year 1999 too, for the third year in succession in July 2001.

F Kesoram annexed the Vana Mitra" Award from the Govt. of A.P. l

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KESORAM CEMENT ADVANTAGES:

1. Helps in designing sleeker and more elegant structures giving greater

edibility in design concept.

2. Due to its ne quality super ne construction can be achieved.

3. it gives maximum strength at minimum use of cement with water in the water

cement ratio, especially the 53 grade Birla supreme gold.

4. Improved durability is achieved, the permeability reduces and the volumetric

changes are also reduced.

5. Better water proofing is achieved due to low heat of hydration as the shrinkage

will be less which means fewer crackers.

6. Better finish is achieved due to fitness and hence better workability. Thus

plastering becomes easier with batter finish.

7. Faster construction possible at both Birla Supreme Gold achieves their high

early strength in just 24 hours, and hence the form work can easily be

removed. Thus improving the efficiency and saving in cost and time.

MIX C;FA;CA WATER W/C RATIO

PCC

M10

M15

M20

M25

1;4:8

1;3:6

1;2:4

l.5:3

1;1:2

30 Lts

28 Lts

27 Lts

Z6 Lts

24 Lts

0160

0.56

0.54 _

0.52

0.48

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CHAPTER-IV

DATA ANALYSIS

AND

INTERPRETATION

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01)THE RESPONDENTS WERE ASKED WHETHER THEIR DEALERASHIP BELONGS TO ONLY KESORAM

CEMENT OR ANY OTHER AND THE RESPONSES ARE DEPICTED BLOW

Options No of respondents Precentage of respondents

Yes 75 62.05

No 45 37.05

Total 120 100

INTERPRITATION

As per a above table 4.01 the study was conducted with 1200 dealers with in Karimnagar district 62.05%

of dealers are sealing the only Kesoram brand and the remaining 37.05% were dealing with others

brands

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02)CUSTOMER REFERENCE WITH REGARD TO DIFFERENT BRANDS OF CEMENT

A)Mcc cement b)orient gold cement c)1&t cement

d)Coramandal cement e)rassi gold cement f)maha cement g)ambuja cement

H)Kesoram cement

Option No of respondents Percentage of responentsMcc cement 15 12.50

Orient cement 25 20.83

1&t cement 10 8.33

Coramandal cement 05 4.17

Rassi golg cement 05 4.17

Maha cement 20 16.67

Ambuja cement 25 20.83

Kesoram cement 15 12.50

Total 120 100

INTERPRITATION

As per a bove table 4.02 the study was conducted with 120 dealers with in Karimnagar

Daistrict.20.83% of customers were attracted to wards ambuja and orient gold cement and 16.67 %$

were attracted to weards maha cement 12.520 %were attracted to wards Kesoram and remaining

were attracted to wards others brands of cement company.

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03)EFFECTIVE BRAND ADVERTISEMENT IN ENHANCING THE SALES

A)Mcc cement b)Orient gold cement

c)L&t cement d)Coramandal cement

e)Rassi gold cement d)Maha cement

g)Ambuja cement h)kesorasm cement

Options No of respondents Percentage of respondents

Mcc cement 05 4.17

Orient gold cement 13 10.83

1&t cement 17 14.17





Kesoram cement 35 29.17Total 120 100

INTERPRITATION

As per above table 4.02 the study was conducted with 120 dealers with Karimnagar District,29.17% of

customers said that Kesoram advertisement is enhancing the sales 16.67% customer said ambuja

ce3ment advertisement is enhancing the sales and remaining were respondent to wards other cement

brand advertisement

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04)FACTORS IN SELECTING A BRAND

Price

Quality

Quantity

Brand image

Packing

Credit facility

Dealer presentation


Price 15 12.50

Quality 13 10.83

Quantity 17 14.17

Brand image 15 12.50

Packing 10 8.33

Credit facility 25 20.83

Dealer presentation 25 20.83Total 120 100

INTERPRITATION

As per a above table 4.04 the study was conducted with 120 dealers with in Karimnagar District

20.83% customers were effected towards credit facility 14.17% were effected towards quantity and

remaining customers affected towards price ,packing and brand image

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05)OPINION ON PRICE COMPARED WIT5H OTHER BRANDS OF THE COMPANY



H)Kesoram cement


Mcc cement 05 4.17


1&t cement 17 14.17






Total 120 100

INTERPRITATION


20.83% customers were effected towards credit facility 14.17% were effected towards quantity andremaining customers affected towards price ,packing and brand image

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06)SATISFACTION ON THE PACKING MADE BY KESORAM

a)Highly satisfied b)satisfied

c)Highly dissatisfied d)dissatisfied

Option No of respondents Perce3ntage of respondents

Highly satisfied 45 37.50

satisfied 35 29.17

Highly dissatisfied 15 12.50

dissatisfied 55 45.83

Total 120 100

INTERPRITATION

As per a above table 4.

05 the study was conducted with 120 dealers with Karimnagar District 45.83% of customer were

dissatisfied with packing maid by Kesoram Cement Company 37.50% customers highly satisfied

with packing maid by Kesoram

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07)OPINION ON REPLACEMENT OF CEMENT BAGS OF KESORAM

A)Yes b)No


Yes 75 62.50

No 45 37.50

Total 120 100

INTERPRITATIONAs per above table 4.05 the study was conducted with 120 dealers in Karimnagar District 16.50% of

dealers respondent to works cement of cement bags remaining 37.50% of dealers was not

respondent replacement of Kesoram cement bags

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08)STITABLE ADVERTISEMENT MEDIA FOR CEMENT INDUSTRIES

A)Television

b)Radio

c)Wall painting

d)paper

e)Bill boards

f)OthersOthers No of respondents Percentage of respondents

Television 25 20.83

Radio 13 10.83

Wall painting 27 22.50

paper 20 16.67

Bill boards 10 8.33

Others 25 20.83

total 120 100

INTERPRITATION

as per table 4.0 the study was conducted with 120 dealers with in Karimnagar District 20.83% wererespondent other resources and television are suitable advertising media for a cement media for a

remainingpreference other media

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09)OPINION ON FGAST MOVING BRAND IN YOUR STATE



H)Kesoram cement


Mcc cement 05 4.17


1&t cement 17 14.17






Total 120 100

INTERPRITATION


29.17% despondence said Kesoram cement brined fast moving in there state and rooming 20.83%

resonance Abuja cement is fads moving brand in there state and remaining options is otherbrands.

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A)Mcc cement b)orient gold cement

c)1&t cement d)Coramandal cement

e)rassi gold cement f)maha cement

g)ambuja cement H)Kesoram cement

Options No of respondents Percentage of respondentsMcc cement 12 10.00


1&t cement 0.5 4.17






Total 120 100

INTERPRITATIONAs per a above table 4.05 the study was conducted within Karimnagar District 29.17% of respondents

Kesoram cement brand having more number of sales in market and remaining 20.83%maha cement

having more number of sales in the market and rooming despondence other brands

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11)VIEW ON THE MAJOR COMPETITOR FOR OTHER CEMENT COMPANIES

a)Highly agree b)agree c)highly disagree d)disagree


Highly agree 60 50.00

Agree 25 20.00

highly disagree 20 16.67

disagree 15 12.50

Total 120 100

INTERPRITATION

As per above table 4.05 the study was conducted with 120 dealers with Karimnagar District 50.00%

respondents were highly that Kesoram cement brand is a major that Kesoram cement brand is not

a major competitor for other cemen5 companies

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12)CREDIT PERIOD ALLOWED TO THE DEALERS OF KESORAM

a)Tenbdays b)one week c)three days d)none of the above


Ten days 55 45.83

one week 25 20.83

three days 20 16.67

none of the above 20 16.67

Total 120 100

INTERPRITATION

As per above table 4.05 the study was conducted with 120 dealers with in Karimnagar

dfistridct.45.83% of dealers said that Kesoram allows a credit period of ten days 20.83% dealers

said Kesoram allows one week of credit period and remaining says Kesoram is not allowed proper

credit period.

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13)TIME TAKEN FOR DELIVERING AFTER ORDERING

(a)Very fast (b)fast (c)slow (d)veryslow

Options No of respondents Percentageof respondents

Very fast 10 8.33

fast 55 45.836

slow 35 29.17

veryslow 20 16.14

Total 120 100

INTERPRITATION

As per a above table 4.05 the study was conducted within Karimnagar District 29.17% of respondents

Kesoram cement brand having more number of sales in market and remaining 20.83%maha cement

having more number of sales in the market and rooming despondence other brands

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14)BETTER SCHEMES AND REWARDS ON ACHIVEING THE TARGETS

a)Kesoram cement b)orient gold c)Mcc cement



orient gold 40 33.33

Mcc cement 20 16.67

total 120 100

INTERPRETATION

As per a bove table 4.14 the study conducted with 120 dealers with in Karimnagar district 50%

respondents Kesoram cement company provides better schemes and rewards achieving the

target and remaining 33.33% of respond nets orient and remaining 16.67% of respondents mcc

cement company provides better schemes and rewards achieving the target

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15)FACILTES PROVIDED IN ATTRACTING THE DEALERS

a)offers b)discount c)commission


offers 35 29.17

discount 55 45.83

commission 30 25.00

total 120 100

INTERPRETATION

As per the above table 4.15 the stayed conducted with 120 dealers with in Karimnagar district45.83% of respondents discounts attaching for dealers and riming

29.17% of respondents offers attracting for dealers and 25% of respondents commission attracting

for dealers

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01) As a dealer which brand of cement you deal with?

A) MCc cement b) orient gold cement c) l&t cement

D) coramandal cement E)arsis gold cement mama cement g)Abuja cement h)others

O2) According to you which brand of Cement Company did most customers prefer?

A) Mcc cement b) orient gold cement c) l&t cement

D) coramandal cement E)arsis gold cement Omaha cement g)ambuja cement h)others

03) Which brand advertisement more effective in enhancing the sales?

A) Mcc cement b) orient gold cement c) l&t cement

D) coramandal cement E)rassi gold cement f)maha cement g)ambuja cement h)others

04) Which factor did customer consider in selecting a brand?

Price

Quality

Quantity

Brand image

Packing

Credit facility

Dealer presentation

05) State your opinion with regard to piece comprised with other brands of Cement

Company?

a) Very high B) high C) slow D) low

O6) What is the time taken for delivery after ordering?

A very slow b) fast C) slow D) very delay

07)Are you satisfied with the packing made by Kesoram?

a) Highly satisfied b) satisfied

C) Highly dissatisfied D) dissatisfied

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08) ls Kesoram cement replaces the damage bags?

A) YES B) NO

09) According to you which is the suitable advertising media for cement industries?

a) Television

b) Radio

c) Wall paintingd) Paper

e) Bill boards

F) Others

|0)Rank the fast moving brand in your state?

A) Mcc cement

b) Orient gold cement

c) L&t cement

D) Coramandal cement

E) Rassi gold cement

f) Maha cemcnt

g) Ambuja cement

h) Others

ll) Which brand have more number of sales in he market?

A) Mcc cement


c) L&t cement



t) Maha cement

g) Ambuja cement

h) Others

l2) What is the credit period given by Kesoram to their dealers?

a) ten days b) one weak c) three days d) none of the above

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I3) Do you agree that Kesoram cement is major competitor to other cement companies?

a) Highly agree b) agree c) highly disagree d)disagree

l4) According to you which brand of cement price is high?

A) Mcc cement


c) L&t cement



l) Maha cement

g) Ambuja cement

h) Others

l4) Which facilities did both orient and Kesoram cement companies attract you for

dealer ship?

a) Offers b) discount c) commission

l5) Which company provides better schemes and rewards on achieving the target?

a) Kesoram cement b) orient gold c) others

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CHAPTER-V

CONCLUSION

AND

SUGGESTIONS

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CONCLUSSION

During the course of my study information is obtained mainly through interaction

with the dealers personally

The study was safe the survey conducted using questions are

MAJOR COMPITETRS: - major competitor of Kesoram cement is MCC,

CORAMANDAL KING, and L&T ORIENT AND RASSI

MOST POPULAR: - the most popular among these brands are Karimnagar and

adlibbed dist Kesoram cement and mcc cement

FAST IN WORK:-it was found that MCC dealer consigrunent faster than Kesoramcement

DEALER I-IARRASMENT: - it is shocking that even if there is a change of rupees

l0/- the order broacher (as rate change) Kesoram cement adjust the consignment

GIFT OFFERI-

CREDIT PERIOD:- the credit period of Kesoram cement is only 10 days where as

other brands gives about 15 to 45 days

DISCOUNT:- very less discount is given to dealers on blank purchase than others

brands quality among quantity Kesoram nods its first place than second by Birla

ambuja

PACKING: - the packing ofkesoram cement is best than compare to other brands

Pricing:- even in pricing Kesoram and MCC are best and more preferred by

customers

NO INFORMATION: - the dealers are unaware of discount and offers and there is no

proper response from factory manager

MEETINGS AND SEMINARS:- Kesoram has no interest on their dealers are either

on there customers where as MCC and L&T cement companies conduct half yearly

meetings with their dealers to solve the problems facing by the dealers

GIFT AND OFFERS:-there will not be any gift is offer to the dealers from kesoram

cement company for that the dealers prefer other brands

_ AVERAGE MARGIN: - it was found that average of MCC and coramandal cement

companies are satisfactory where as kesoram cement goes less

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SUGGESTIONS

\The company should maintain healthy relationship with the dealers by making

frequent visits and helping them in solving the problems faced by them letter

of application must be given

The company has to welcome new ideas and various schemas from the dealers

for the improvement of Kesoram cement since they know the requirement of

customers

The company should conduct meetings with the dealers and should give some

gifts and offers to boost the sales .

Credit period should be increased and discount should be introduced in bluck

purchase

Proper own of information should be there

Now not only the urban but also remote people are watching television so the

company should give more advertisement in local channel which will give

more awareness to the people

There pricing strategy and margin should be competitive with other brands

Regular market survey is required to analyses the present market conditions

and the actions of competitors

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Questionnaire on Sales promotion

Kesoram cement factory

Name of the shop: date:

Name of the proprietor: ph no:

District: signature:

1. l-low long have you been dealing with Kesoram cement?

a)


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9. According to you most of the customers are aware of Kesoram cement through

a) advertisement b)campaign c)dealer d)others

10. D0 you satisfy with the sales of Kesoram cement?

a)highly satisfied b]moderately satisfied c)satisfied d)dies satisfied e)highly

dissatisfied

11. How do estimate the demand for various products?

a]past sales b)seasonal c)orders d)others

1Z.Do you face any difficult in dealing with the company?

a)yes b)no

ifyes please specify

13.What percentage of fright if incurs you to received goods from company to

your store point?

a)Z% b)3% c]4% d]5%

14. Do you feel like to suggest any thing which improves distribution

effectiveness?

a) yes b) no

15) In your view, what is one quality that Kesoram can retain its customers?

Ans

16) What are the factors that Kesoram should look out to attract new customers?

Ans

17) What are the factors that Kesoram is loosing on to retain its customers?

Ans

18) What is the ratio of Kesoram cements sales out offal the products you deal in?

Ans

19] Does Kesoram have its distributions outlets at you convenient points or how

comfortable is it for you to get the stock from the Kesoram?

Ans

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20) What is the average time Kesoram takes to deliver the stock upon order?

Ans

21) How often you see the advertisement of Kesoram?

Ans

22). Have you heard about the brand Kesoram?

Yes El N0 El

23). Where did you sec the Advertisement

On T.V. U ln Magazine El Hoarding El Others El

24). What type of advertisement do you like the most media or any other 7

Ans.

25). Which other cement advertisement can you recall?

Ans.

26). Which company advertisement is most consistent?

Ans.

27). Have you satisfied with the Kesoram product ?

Fully Satisfied Partially Satisfied III Dissatisfied

Seal & signature

Thanking you

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BIBLIOGRHAPHY

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BIBLO GRAPHY

l) COMPANY brochures

2) Staff of Kesoram cement

Reference books

l) Marketing research Tull and hawkinstal

2) Principals of marketing Philip kotler

3) Marketing channels Stern

4) Advertising management Batra

Deccan chronicle

Economic times

Business line

lntemet/Web sites

WWw.cementindia.com

Www.cementindustry.com

WWW.google.com

WWw.kesoramindustry.com

j. Ravi Kumar

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Transcript of j. Ravi Kumar