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CONSUMER BEHAVIOR ON J.K CEMENT AND FACTORS AFFECTING ITS PURCHASE
Under the Supervision of: Mr. Pankaj Basra Regional Head (J.K Cement) Faculty Guide: Director. Prithvi Yadav
Submitted By
Vikrant Awasthi
Roll No.1421, Sec-A
Batch: XVI (2010-2012)
In partial fulfillment for the requirement of the Two Year Full Time
Post Graduate Diploma in Management @ Dr.Gaur Hari Singhania Institute of Management &
Research
Preface
Classroom teaching helps the student by making conceptual base clear, but on the job training is a way, which helps the students to get the applied knowledge of the concept. Normally the students are not aware of the actual requirement of practical field, keeping in view this fact; a system of summer training has been established to make the students acquainted of actual difficulties that are to be faced in the demanding corporate sector. Summer training at J.K CEMENT, has given me a great experience. I was required to prepare a training report on the topic Study of consumer behaviour on J.K Cement and factors affecting its purchase. The managers of the entire department helped me a lot to prepare this report.
Table of Contents
SL.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Topics ACKNOWLEDGEMENT EXECUTIVE SUMMARY RESEARCH OBJECTIVES SCOPE OF THE STUDY COMPANY STUDY REVIEW OF LITERATURE RESEARCH METHODOLOGY DATA INTERPRETATION AND ANALYSIS FINDINGS QUESTIONNAIRE RECOMMENDATIONS LIMITATIONS CONCLUSION BIBLIOGRAPHY
Page No.
Acknowledgement
I would like to thank JK cement for providing me with an opportunity to work on my summer project. The immense help and support received from J.K Cement over whelmed me during the project.
I am highly indebted to Mr. Pankaj Basra (J.K Cement ltd, Regional head, gurgaon), who provide me with the necessary information and his valuable suggestion and comment on bringing out this report in the best possible way.
I also thank Director Prithvi Yadav, faculty guide, DR.GAUR HARI SINGHANIA INSTITUTE OF MANGEMENT AND RESEARCH, who has sincerely supported me with the valuable insight into the completion of this project. Last but not the least my heartfelt love of my parents, their constant support and blessing helped me throughout the project.
Executive Summary
Times have never been so good for the Indian cement industry. The robust earnings growth posted by cement companies since last eight quarters has been unprecedented. Strong demand and slower capacity addition has resulted into cement prices perking up by almost 35 to 50 percent over last two years. We believe the purple patch for cement companies is likely to continue for another four to five quarters till the new capacities get commissioned although the earnings would see moderate growth going forward due to high base effect. There is no room for dramatic rise that has been witnessed over past five quarters marked by reversal in cement cycle. From longer tern perspective, we believe cement companies would feel the pressure on margins post December 2007, both on account of rising cost as well as vanishing pricing power, at least in some pockets across India. Cement is a commodity business characterized by peak & trough phases. After three years of boom, the industry is close to its peak & the way cement companies are rushing up to cash in on the boom by expanding furiously does not sound conducive from investment perspective. In the given scenario, we remain neutral on the sector per se. There is nothing to suggest pressing panic buttons as of now but the outlook may turn negative in case supply continues to grow at frenzied pace. From long term horizon, we believe its time to lighten cement
portfolio & adopt bottom up approach rather than going gung ho about the sector. Driven by solid earnings over next three quarters, cement stocks will continue to attract the market fancy. That is the best time to reshuffle cement portfolio in favour of potential frontrunners. Based upon location, cost efficiency, competitiveness, cap-ex plans & financial performance, we recommend a few winners that will outpace the peers. The best Investment strategy would be to exploit every rise to exit weak cement stocks & accumulate the winning stocks.
Management Problem
To know the consumer behaviour on J.K cement and factors affecting their purchase.
Objective
The project is carried out for knowing the consumer behaviour on J.K cement and factor affecting their purchase. The project will be done in Gurgaon. I will take market players in cement industry. They are ACC, Ambuja, Jaypee, Shree, Binani, bangur and JK.
Research Methodology
The descriptive nature of the research necessitated collection of primary data from retailers of cement through market survey. Personal Interview method will be used and interview would be conducted through structure questionnaire. With the help of the Questionnaire I will try to analyze each n every factor which
is responsible for the satisfaction level of the retailers, dealers, LABOUR (mistris) and consumers toward JK cement and its competitors. Study will also include market demand for the cement, market share, and competitors analysis to know the exact position of cement in the market.
Sampling Technique
Random Sampling technique will be used to select the retailers and consumer. 90 respondents will be taken including retailers, dealers, labours (mistris), consumer (of age group 30 and above, both and female and income level above 4 lac per annum). The project will be carried out for 50 days. After collecting the detailed information from the market, analysis of data will be made.
Introduction
Today it is fashionable to talk about the new economy. We hear that the business are operating in globalize economy; things are moving at a nanosecond pace our market are characterized by hyper competition and disruptive technologies are challenging every business and so business must adopt to empower consumer. To become successful in such a competitive environment the business organizations have to be customer oriented. Customers need and want must be taken care of. Built customer and not only products. Customer must be
delighted. This information about the market could be collected by the way of proper market survey. The information about the market will be gathered by visiting retailers, dealers, customers in the market. Interview of retailers was taken depending upon their accessibility. While doing the project attempt will be made to collect maximum information about the market. To get actual and correct information, it will not be told retailers; dealers etc. that the survey is conducted by JK Cement for the obvious reasons .Number of retailers, dealers were visited to get the actual picture of the market. Again, the retailers of each grade (according to the performance) will be visited, to get each and every detail about the market. After collecting the derailed information about the market analysis is done. In the analysis, we will try to suggest the observation would be carefully analyzed and suggestion would be given to management that how they can improve their branding strategies in this cluttered market.
Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus increase the business prospects.
The study can help in analyzing certain weak point, improving on which a company can overcome the low sales of its cement but only in gurgaon region.
INTRODUCTION
cement industry has also acquired technical capability to produce different types of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc. Some of the major clusters of cement industry in India are: Satna (Madhya Pradesh), Chandrapur (Maharashtra), Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda (Andhra Pradesh), Bilaspur (Chattisgarh), and Chandoria (Rajasthan).Cement industry in India is currently going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo Rama Cement. Cement is a key infrastructure industry. It has been decontrolled from Price and distribution on 1st March, 1989 and deli censed on 25th July,
1991. However, the performance of the industry and prices of cement are monitored regularly. The constraints faced by the industry are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). Its performance is also reviewed by the Cabinet Committee on Infrastructure.
Domestic Players
While the Cement Corporation of India, a Central public sector undertaking, comprises 10 units; the various State governments own 10 large cement plants. Among the leading domestic players in terms of cement manufacturing are: Ambuja Cement, Aditya Birla Group (which owns UltraTech Cement), ACC Ltd., Binani Cement, India Cements and J K Cement. They are not only the foremost producers of cement but also enjoy a high level of equity in the market.
THE COMPANY
Vision:-
price. We will be driven by our commitment to continuous quality improvement and exceeding all our customer expectations.
Mission:-
society at large.
Today in India J.K Organization occupies a place of pride in industrial and commercial Fields. The Singhania family struggled over last two centuries and contributed to the economic and social growth of India. In the process of industrialization they attend the present place of destination among the top industrial pioneers of the country. M/S J.K.Cement works is a division of J.K. Synthetics Limited Kanpur a member of J.K.Organization. This is a multi product and multi unit company with diversified operation in synthetic fibers, Cement plants (gray & white), Power generation etc. M/S J.K. synthetics Limited established their first gray Portland cement plant based on dry process technology at Nimbahera in the year 1974 .The main aim to set up the plant was to fulfill the demand of cement in the country. The main reason of establishing this plant in Nimbahera was easy availability of raw materials (Limestone) in sufficient quantity. The whole Maarwad Malwa belt is carrying plenty of Limestone i.e. primary raw materials for cement manufacturing. Then first kiln of this plant was started at 900 tons per day (TPI) and subsequently the capacity was increased by addition of two more kilns f 1200 TPD 1350 TPD & 3400 TPD in 1979, 1982 & 1988 respectively. In 2002 new Grey Cement plant was installed at Mangrol with initial production capacity of 2500 TPD. Today Nimbahera plant production is around 7000 TPD and Mangrol plant production is about 3000 TPD contributing to total production of 10000 TPD. J.K.Cement has been awarded by ISO -9000, ISO-9002, ISO-14000 & OHSAS-18000.
FOUNDATION
-PILLARS-
Mr.Yadupati Singhania (Managing Director) Mr. Singhania, our Managing Director and Chief Executive Officer, holds a Bachelor of Technology (B.Tech.) degree from Indian Institute of Technology, Kanpur. He has experience spanning 25 years in the cement industry. He has been associated with the Company as its Promoter Director and has led our Company
since its inception in 1994. He was appointed Managing Director of the Company with effect from April 1, 2004. He was instrumental in setting up the JKSL Cement Division. He is the Director of the Employers Association of Northern India, President of Kanpur Productivity Council, and member of the Board of Governors of the National Council for Cement and Building Material and Jodhpur Chamber of Commerce. He is also a member of the managing committee of Cement Manufacturers Association. He has held the position of District Governor of Rotary International and President of Foreign Trade Development (India) Association
Dr.Gaur Hari Singhania (Chairman) Dr. Singhania, our Chairman, holds a Master of Arts degree in Economics and a PhD degree in Economics from Agra University. He has corporate experience spanning 50 years. He has been associated with the Company as its Promoter Director and has led our Company since its inception in 1994. He is also the Chairman of JKSL, Juggilal Kamlapat Cotton Spg. & Wvg. Mills Company Limited and J.K. Traders Limited. He has held the position of Chairman of the Merchant Chambers of Uttar Pradesh and Employers Association of Northern India. He has also been the president of Uttar Pradesh Stock Exchange Association Limited. He has been a director of Pradeshiya Industrial Investment Corporation of Uttar Pradesh, Uttar Pradesh State Industrial Development Corporation and the Uttar Pradesh State Sugar Corporation. Currently, he is also the chancellor of Dayanand Shiksha Sansthan and the president of Kanpur Education Society
1.2.4 QUALITY PARAMETERS: J.K.Cement Nimbahera is using the latest dry process precalicination technique in its plant. This technique incorporates a five stage precheater, Precalcinator, air swept vertical roller mills and electronically controlled packaging machine. The major produced grade is 43 grade cement. It is also an ISO 9002 certified manufacturing company. a certificate given by Lloyd. Register of quality assurance U.K. Cement has different quality parameters which can be classified broadly in two categories Chemical and physical generally cement is of three different grades i.e. 33, 43, 53 based upon cements 3.7 or 28 days compressive strength. J.K. Cement is pioneering in 43 grade cement because of its quality consciousness. 1.1.4 ACHIEVEMENTS : National award for highest production in 1978. 104% production in 1990-91. Record production 1.86 million tons against capacity of 1.50 million tons per annum. Power consumption reduced to 115 Units per ton of cement in spite of multiple and old units. Now it has touched as low as 100 units per ton. Specific heat consumption achieved up to 760 Kilo Calorie per Kg. of clinker. Selected as one of the lead plant by World Bank & DANIDA for setting up the Regional Training Centre. Received ISO 9002 certificate for manufacturing and marketing of White as well as Grey cements both in 1995.
Binani Cement
Limited is engaged in the production and sales of cement and clinker. The Company's products include ordinary Portland cement and clinker. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 52.80 lac metric tons of cement. In December 2009, the Company commissioned a cement mill of 110 throughput per hour (TPH) capacity. The Company's overseas projects include Shandong Binani RongAn Cement Co. Ltd., China (SBRCC) and Binani Cement Factory LLC, Dubai (BCFLLC). The Company focuses to set up a Greenfield Cement plant of 2.5 million tons per annum capacity at Sutrapada in Gujarat. Its parent company is Binani Industries Limited. The Company's subsidiaries include Krishna Holdings Pte Limited, Mukundan Holdings Limited, Murari Holdings Limited and Bhumi Resources (Singapore) Pte Limited. Full Overview of BINC.BO
ACC
(ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers.Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry. ACC plants, mines and townships visibly demonstrate successful endeavours in quarry rehabilitation, water management techniques and greening activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY This report acts a general guide line in framing the entire research work. Further it gives clear ideas about defining the research problem, research design, sampling design, methods of data collection and measurement and scaling techniques. This report acts as a general guideline in framing the entire research work. Hence, a research should be a step towards the awareness of the expanding needs of the customers and thereby to meet them. Just as many dissatisfied customers do not register formal complaints, satisfied customers may not provide the feedback necessary to understand as to why the satisfaction has occurred. Hence, a detailed research is required to know as to what is lacking in the system and what can be done thereof. A recent study of the corporate world has clearly established the fact that only such of those corporations which have given their customers maximum value for their money, have survived and further, only such of those companies
that have gone beyond the stage of satisfying the customers into delighting them by exceeding their expectations have really grown beyond ones wildest dreams. Research methodology is a method used to systematically and scientifically solve the research problem. The present study is about the Study of consumer behaviour on J.K Cement and factors affecting its purchase.
Research Design A research design is purely the frame work or plan used to study and analyze the data collected. Research is the scientific way to solve the problem and it is increasingly used to study the market potential. This involves exploring all possible methods of solving the research problems, examining the alternative methods one by one and arriving at the best method, considering the resources at the disposal of the researcher. Descriptive Research The Research design used for this study is Descriptive design, which includes surveys and fact findings of different kinds. The major purpose of descriptive research is a description of the state of affairs, as it exists at present .The entire analysis is described in detail with the use of a well structured questionnaire and the interpretation thereon. Sample design A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for her sample. The random sampling technique is to be employed for data
collection. 45 dealers and retailers were interviewed altogether from GURGAON for the collection of primary data through questionnaire in order to extract pieces of information and opinions about J.K. cement and other cement manufacturers. 2 different structured Non-Distinguished Direct Questionnaire that includes multiple choice and Open-Ended Questions was framed to carry out the survey and obtain the necessary information from the Customers and dealers and retailers.
Source of data The data for this study was collected from primary source and secondary source. The primary data was collected through questionnaire and survey. This catered to the needs of studying the objectives. The secondary data was collected from articles given in internet, journals and magazines to gather information about the company and the topic of the study.
PRIMARY DATA Primary data was obtained by interviewing the dealers and retailers, the customers.
SECONDARY DATA Through past records of the company, annual reports, magazines and journals and internet to understand the topic.
Sample Size
About 90 respondents were surveyed and assessed for their opinion about Cement. Survey was done in GURGAON only. Research Methodology Survey Method was chosen to obtain the needed information from the respondents so as to study the various magnitudes of the project objectives.
Research Instrument 2 Questionnaires are structured for evaluating the customers and dealers and retailers.
Contact Method Personal visit to various shops & various places in Gurgaon.
Sampling Procedure NON-PROBABILISTIC CONVENIENT SAMPLING Technique was followed for getting the response to the questionnaire.
Period of study The reference period for conducting this study is from 02nd MAY to 24th JUNE, 2011.
ANALYSIS
FINDINGS FROM
CUSTOMERS
45 0 4.0000
Frequency
Percent
Valid Percent
Valid
J.K Cement Binani ACC Ambuja Shree Jaypee Birla Bangur Total
8 5 5 11 10 3 2 1 45
Interpretation:
From the above table, we can make the analysis that 17.8% of the consumers prefer JK cement whereas Ambuja and Shree brand has a highest value in the eyes of customers.
12
10
Frequency
Frequency Valid J.K Cement Binani ACC Ambuja Shree Jaypee Birla Bangur Total 1 5 10 14 9 2 1 3 45
Percent 2.2 11.1 22.2 31.1 20.0 4.4 2.2 6.7 100.0
Valid Percent 2.2 11.1 22.2 31.1 20.0 4.4 2.2 6.7 100.0
Interpretation:
From the above table we can analyze that J.K Cement (2.2%) advertisements are very less as compared to most advertised brand like ambuja (31.1%) and ACC (22.2%).
12.5
10.0
Frequency
7.5
5.0
2.5
0.0 J.K Cement Binani ACC Ambuja Shree Jaypee Birla Bangur
3-Advertisement Effectiveness
Statistics
Advertisement Effectiveness N Valid Missing Median 45 0 4.0000
Advertisement Effectiveness
Frequency 8 3 3 29 2 45 Percent 17.8 6.7 6.7 64.4 4.4 100.0 Valid Percent 17.8 6.7 6.7 64.4 4.4 100.0 Cumulative Percent 17.8 24.4 31.1 95.6 100.0
Valid
Interpretation:
From the chart and the table, we can analyze that advertisement are most effective on T.V (64.4%), Newspaper (17.8%) & so on.
Advertisement Effectiveness
30
20
Frequency
10 0 Newspaper Hoarding WallPainting T.V Others
Advertisement Effectiveness
Interpretation:
From the above table, we can analyze that most suggested brand by various sources is ambuja(24.4%) then shree(22.2%) and then J.K (17.8%).
12
10
Frequency
45 0 1.0000
Valid
Frequency 23 8 9 4 1 45
Interpretation:
From the above table, we can analyze that maximum number of people take the advice from the engineers (51.1%) during purchasing of cement then from their mistries (20%) and then from the friends (17.8%), hence we can come to the conclusion that firstly people give priority to engineers in purchasing cement, then to mistries.
Brand Suggested By
25
20
Frequency
15
10
Brand Suggested By
45 0 4.0000
Brand Rating Cumulative Percent 17.8 28.9 35.6 57.8 68.9 73.3 97.8 100.0
Frequency Valid J.K Cement ACC Jaypee Shree Binani Birla Ambuja Bangur Total 8 5 3 10 5 2 11 1 45
Percent 17.8 11.1 6.7 22.2 11.1 4.4 24.4 2.2 100.0
Valid Percent 17.8 11.1 6.7 22.2 11.1 4.4 24.4 2.2 100.0
Interpretation:
From the above table, we can analyze that Ambuja (24.4%) has got the best cement brand perception, then Shree (22.2%) and then J.K (17.8%).
Brand Rating
12
10
Frequency
Brand Rating
Brand Image
40
30
Frequency
20
10
0 1 2 3
Brand Image
2. Price
Statistics Price N Median
Valid Missing
Valid
1 2 3 Total
Frequency 3 6 36 45
Price
40
30
Frequency
20
10
0 1 2 3
Price
3. Convenience of Location
Statistics Convenience of Location N Valid Missing Median
45 0 2.0000
Valid
1 2 3 Total
Frequency 9 29 7 45
Convenience of Location
30
20
Frequency
10 0 1 2 3
Convenience of Location
Interpretation:
From the above tables and charts, we can make the analysis that BRAND IMAGE is preferred mostly and is ranked first , then secondly CONVENIENCE OF LOCATION, then thirdly PRICE hence we can come to the conclusion that mostly consumer prefer brand image while purchasing cement.
1. Most Preferred Brand (Median=4) 2. Most Advertised Brand (Median=4) 3. Advertisement Effectiveness (Median=4) 4. Most Suggested Brand (Median=4) 5. Purchase Decision Influencer (Median=1) 6. Brand Rating (Median=4)
45 1 4.00
Most demand brand Cumulative Percent 13.3 26.7 35.6 51.1 68.9 80.0 88.9 100.0
Valid
J.K Cement Binani ACC Ambuja Shree Jaypee Birla Bangur Total
Frequency 6 6 4 7 8 5 4 5 45 1 46
Percent 13.0 13.0 8.7 15.2 17.4 10.9 8.7 10.9 97.8 2.2 100.0
Valid Percent 13.3 13.3 8.9 15.6 17.8 11.1 8.9 11.1 100.0
Missing Total
System
Interpretation:
From the above table, we can analyze that most demanded brand in gurgaon is Shree (17.4%), ambuja(15.2%) and then J.K Cement(13%).
Frequency
Most advertised brand Cumulative Percent 13.3 22.2 55.6 80.0 88.9 100.0
Valid
Frequency 6 4 15 11 4 5 45 1 46
Percent 13.0 8.7 32.6 23.9 8.7 10.9 97.8 2.2 100.0
Missing Total
System
Interpretation:
From the above table we can analyze that most advertised brand is ambuja(32.6%) , shree (23.9%) , binani(13%).
15
10
Frequency
5 0 Binani ACC Ambuja Shree Jaypee Bangur
3-Effectiveness of Advertisement
Statistics Ad Effectiveness N Valid Missing Median 45 1 4.00
Frequency Valid Newspaper Hoardings Wall Painting T.V Others Total Missing Total System 7 5 3 27 3 45 1 46
Interpretation:
From the above table, we can make the analysis that most effective advertisement for cement category is T.V (58.7%) and then Newspaper (15.2%).Hence we can make a conclusion that cement industry should invest more in advertisement in TV and Newspaper.
Ad Effectiveness
30
20
Frequency
10 0 Newspaper Hoardings Wall Painting T.V Others
Ad Effectiveness
Most Suggested Brand Cumulative Percent 11.1 24.4 33.3 51.1 68.9 80.0 88.9 100.0
Valid
J.K Cement Binani ACC Ambuja Shree Jaypee Birla Bangur Total
Frequency 5 6 4 8 8 5 4 5 45 1 46
Percent 10.9 13.0 8.7 17.4 17.4 10.9 8.7 10.9 97.8 2.2 100.0
Valid Percent 11.1 13.3 8.9 17.8 17.8 11.1 8.9 11.1 100.0
Missing Total
System
Interpretation:
From the above table, we can analyze that most suggested brand by various sources is ambuja & shree (17.4%) then binani (13%) and then (J.K, Jaypee, bangur) 10.9%.
Frequency
45 1
Median
4.0000 Best Brand Perception Cumulative Percent 13.3 22.2 33.3 51.1 64.4 75.6 91.1 100.0
Frequency Valid J.K ACC Jaypee Shree Binani Birla Ambuja Bangur Total Missing Total System 6 4 5 8 6 5 7 4 45 1 46
Percent 13.0 8.7 10.9 17.4 13.0 10.9 15.2 8.7 97.8 2.2 100.0
Valid Percent 13.3 8.9 11.1 17.8 13.3 11.1 15.6 8.9 100.0
Interpretation:
From the above table, we can analyze that Shree (17.4%) has got the best cement brand perception, then ambuja(15.2%) and then (binani and J.K ) 13%.
Frequency
1. Most Demanded Brand (Median=4) 2. Most Advertised Brand (Median=4) 3. Effectiveness of Advertisement (Median=4) 4. Most Suggested Brand (Median=4) 5. Best Brand Rating (Median=4) Median of above all factor=4
Findings
Median (Consumer) =4
Median (Dealers) =4
Median =4
4th factor is most important i.e. (Most suggested Brand) .Hence suggestions from various sources play an important role in purchase of cement brands.
1-
2-
Brands dealing in: S.No. Name Brand wise sales (Per Month) Brand wise prices (Per Bag) Brand wise discount Structure
B1 B2 B3 B4 B5
3-
Why?
6-
Which type of advertising do you feel is the most effective? (Please tick) - Newspaper - Hoardings - Wall painting - T.V.
Others 7- Which brand of cement did you buy at present/last time? J.K Binani ACC Ambuja Shree Birla Jaypee Other..
8-
9-
10-
How do you rate the quality of chosen brand? Very good Good Average Fair Poor
11- Who has suggested you for that brand? ............................... ...............................
Rating 1 2 3 4 5 6 7
J.K.
ACC
Jaypee
Shree
Binani
Birla
Ambuja
13-
1-
Which brand of cement you prefer the most? 1- J.K Cement 2- Binani 3- ACC 4- Ambuja 5- Shree 6- Jaypee 7- Birla 8- Bangur
2- Which brand of cement did you buy at present/last time? J.K Shree
4- Which type of advertising do you feel is the most effective? ? - Newspaper - Hoardings - Wall painting - T.V. Others
5-
6- While purchasing cement you take advice of? Engineer Friends Mistries Dealers Others
7- In selecting cement, How important are all points, Please rank them accordingly from (1-3)
Rating 1 2 3 4 5 6 7
J.K.
ACC
Jaypee
Shree
Binani
Birla
Ambuja
SWOT ANALYSIS
S-STRENGTHS
J.K.Cement possess good brand image in the existing market which is definitely a part of pavement brick for it.
Location has always been an important factor in Rajasthan extensive (about 2500 MT) of cement grade limestone available.
W-WEAKNESSES
Fewer advertisements. Low sales as compared to market potential. Lack of self enthusiasm in the working pattern of the executives as a result the aggressiveness towards sales is low.
Less advertisement and negligible sales promotion schemes as compared to other brands.
O-OPPORTUNITIES
More advertisement.
Competitive prices.
May increase the discount and margin structure for retailers and dealers.
T-THREATS
Some dealers are available at present which were not reputed / efficient.
Price fluctuation and price war which is a general phenomenon in this cement industry.
Quick availability/ Supply of cement of other cement industries are creating threat for J.K. cement.
FINDINGS AT A GLANCE
Customers are loyal towards one brand but not in cement. Good brand image of J.K.Cement in existing market. Lack of sales aggressiveness. Less advertisement of the product as compared to other company. Profit margin given by company is less and no any promotional schemes for retailers and semi dealers. Suggestions from various sources play an important role in purchasing decisions. Profit margin given by company is less and no any promotional schemes for retailers and semi dealers. No facility for removal of complaints from the side of dealers/ retailers on time. Lack of self-enthusiasm is working patterns of executives. As the real estate sector is at boom many new companies are entering into cement industry. The cement companies that are playing today have great opportunity.
RECOMMENDATION
1. JK CEMENT should focus more on TV advertisements which will increase company awareness among population. 2. JK CEMENT should also focus on its pricing strategy so that it would increase company sales. 3. JK CEMENT should give their ads in spots category which would help the company in targeting youth segment from the market which will increase its awareness among them. 4. BRAND AMBASSADOR also helps in increasing sales and also for increasing publicity so JK CEMENT should also focus towards it. 5. Some focus should also be made for the advertisement and brand promotions for the product mainly in the new developing sites and area. 6. Promotional activities should be more, because it helps to push the product and recall the product. 7. Dealers meetings may be play crucial role to increase the sales because whatever dealer want, can sales. He can also convince the customer to purchase the particular product.
8. The price is the major concern: If price can be lowered by compromising on some minor unnoticeable quality difference then the company should go ahead with it. 9. Occasional schemes would help to achieve higher sales. 10-Availability and quality should be good for good sell and make a good relationship with customer.
LIMITATIONS OF RESEARCH
Though a successful survey was conducted there were still certain limitations to the study. Below are some of the limitations of the research conducted:o The sample size was small; interview with more number of specifies could have given a better picture on the overall acceptability of cement among them. o Time frame was also one of the major limitations of the study. Research like this which concern with taste and preferences of human beings generally require a patient hearing and understanding. Since the people interviewed were all busy professional an honest hearing and understanding of the subject from them were very rare. o Some of the people interviewed were not that clear about their opinion. o Since the forms were filled by the interviewer there is a fair chance of lack of understanding on her/his part. In some cases views were not communicated properly.
CONCLUSION
It can be concluded from the research that customer has a preference of J.K Cement due to its quality availability and strength. Due to good distribution network in gurgaon, J.K cement is widely used cement brand. Several conclusions are derived:
Quality matters a lot in buying JK Cement in gurgaon. Dealers and Sub dealers have lot of knowledge about the product. It has goodwill in the market. To improve further the company should margin. They think in term of getting low margin and facing intensive competition as retailer face in it.
Contractor gives emphasis on price, so price decreases for contractor for bulk purchase. Lack of advertising of JK Cement in Gurgaon, which directly affected the sale in Gurgaon.
BIBLIOGRAPHY
BOOKS
Marketing management Marketing research
WEBSITES
www.google.co.in www.jkcement.com