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JAYPEE CEMENTS

Jaypee Cements Term Paper on Business Marketing

By Akhil.k Marketing 1 Roll No-6 USN-1PI11MBA12

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JAYPEE CEMENTS
Table of Contents Figure number Content Page number 7

1.1

The production and sale of Cement/ Clinker

1.2

Competitors

1.3

Business to business distribution channel

10

1.4

Business to customer distribution channel

10

1.5

Undifferentiated Market Selection

14

1.6

Differentiated Market Selection

14

1.7

Concentrated Market Selection

15

1.8

Product Life Cycle

16

1.9

Business to business distribution channel

17

2.0

Business to customer distribution channel

18

2.1

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JAYPEE CEMENTS
CEMENTCement is a mixture of compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminium oxide and iron oxide. Cement is manufactured by burning a mixture of limestone and clay at high temperatures in a kiln, and then finely grinding the resulting clinker along with gypsum. The end product thus obtained is called Ordinary Portland Cement (OPC). In India, OPC is manufactured in three grades, viz. 33 grade, 43 grade and 53 grade, the numbers indicating the compressive strength obtained after 28 days, when tested as per the stipulated procedure. Apart from OPC, there are several other types of cement, most of them meant for special purposes, e.g. sulphate resistant cement, colored cement, oil well cement, etc. However, there are some general purpose cements, the commonest one being Portland Pozzolana Cement (PPC). INTRODUCTION The first cement unit was set up at Porbandar in 1914 with a capacity of 1,000 tons per annum. India ranks second in world cement producing countries In India there are around 365 small and 140 large cement plants, combined production capacity of which is approximately 234 Million Tons (MT). There is a low per capita consumption of cement in the country (156 kgs/year as compared to world average of 260 kgs) there is an enormous potential for growth of the industry. Furthermore, it is expected that production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 - 2013-14 to reach 303 Million Metric Tons. According to Indian Cement Industry Forecast to 2012. Cement Manufacturing Association (CMA) is targeting to achieve 550 MT capacities by 2020. A large number of oversea players are also expected to enter the industry in the coming years as 100 per cent FDI is permitted in the cement industry

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JAYPEE CEMENTS
JAYPEE GROUP
Jaypee group is the 3rd largest cement producer in the country. The Jaypee Group is a diversified industrial conglomerate with a turnover of over Rs.7000 Crores. The group is the leader Engineering & Construction sector with substantial interests in Cement, Hydropower, Thermal Power, Wind Power, Expressways & Highways, Hospitality & Tourism, Real Estate, Hospitals, Minerals & Mining, Transmission, Information Technology and Education. Professionally managed and with a work force of over 50,000 people, the group has operations spread across the country. Largest exporter of Cement from India to Nepal during the last 11 years. More than 750 Kms of national Highways being reconstructed with more than 1.6 million tonnes of Jaypee Cement likely to be consumed in the same. A leader in Engineering and Construction of Hydropower projects in India, the Group has the largest market share in the Indian Hydropower, E&C and EPC sector having participated in 54% of Hydropower projects developed in 10th 5-Year Plan in different capacities. The key non-EPC projects completed across India by jaypee cements 1450 MW Sardar Sarovar Project, the largest water resource project in India, 1000 MW Tehri Dam, Asia's highest rockfill dam. 1000 MW Indira Sagar Power House, second largest surface power house in the country. 1500 MW Nathpa Jhakri Power House, the largest underground surface power house in the country.

JAYPEE CEMENTS
Jaypee group is the 3rd largest cement producer in the country. The groups cement facilities are located in the Satna Cluster (M.P.), which has one of the highest cement production growth rates in India. Its cement division currently operates modern, computerized process control cement plants with an aggregate installed capacity of 28 MnTPA. The company is in the midst of capacity expansion of its cement business and is slated to be a 35.90 MnTPA by FY13 (expected) with Captive Thermal Power plants totaling 672 MW.

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JAYPEE CEMENTS
More than 750 Kms of national Highways being reconstructed with more than 1.6 million tonnes of Jaypee Cement likely to be consumed in the same. Keeping pace with the advancements in the IT industry, all the 260 cement dumps are networked using TDM/TDMA VSATs along with a dedicated hub to provide 24/7 connectivity between the plants and all the 120 points of cement distribution in order to ensure track the truck initiative and provide seamless integration. This initiative is the first of its kind in the cement industry in India. Creation of large multi location Technical cells to support & educate consumers on usage of cement in various types of construction. Awarded with "National Safety Award" by the national Safety Council of India for developing and implementing very effective management systems and procedures and attaining very high performance levels in occupational safety and health. For optimizing cost of power, 100% of the power requirement of cement plants are being sourced through captive thermal power plants.(MP-123MW, UP-65 MW, HP-30 MW and Gujrat-85 MW ) One of the first cement companies in India to be awarded a coal block for captive mining to meet the requirement of cement plants and captive power plants. The closest competitors in the cement industry for Jaypee cements Binani cement, Ambuja cement, ACC, Grasim, Utratech cement, Lafarge cement. The production and sale of Cement/ Clinker during the year, as compared to the previous year, are as under (fig 1.1)
16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Cement Production Clinker Production 9,808,903 2011-12(MT) 2010-11(MT) 13,341,389 11,529,728

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JAYPEE CEMENTS

Competitors(fig 1.2)

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JAYPEE CEMENTS
Chapter 1 Dimension Of jaypee Cements Marketing
Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers requirements for different types of cements in each of its markets. All the brands, which the Company produces, are so evolved in their characteristics and properties that they will surpass BIS Standards. For each brand, the relevant BIS standards are mentioned in enclosed table along with a comparison with the BIS requirement. The state-of-the-art cement plants operated by the Jaypee Group are equipped with the most modern technology from the globally leading technology providers. Extensive Instrumentation & fully automatic and computerized process control system, custom designed Quality Control software like QSO Expert and CADES in the Mines, Cross Belt Expert Analyzer using the Prompt Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray Diffraction analyzers and optical microscope, enable production of cement of the highest quality consistently on a sustained basis.

Jaypee cement produces ordinary Portland cement 43 grade conforming to is: 8112-1989. 53 grade conforming to is: 12269-1987. 53 s grade conforming to irst-40(53 s). jaypee cement (opc-43 grade). J jaypee cement (opc-43 grade).

All the above verities produced from enriched limestone most suited to make high quality clinker, which on grinding gives a cement with characteristics surpassing those specified in is: 8112 1989. Jaypee cement (opc-43 grade) is available in 50 kgs hdpe bags of a distinctive design and cover. Jaypee cement (opc-43 grade), has emerged as the top choice of engineers and engineering companies engaged in construction of mega projects such as national highways, bridges, transmission lines, power plants, industrial and residential structures. Demand Demand for cements are cross elastic in nature. Demand varies on the basis of economic improvements and slowdown. Due to the general economic slowdown, from 2008-2011 financial institutions tightened their credit norms. This led to a credit crunch and impacted upcoming real estate, infrastructure and other projects.

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JAYPEE CEMENTS
During FY2011, jaypee cements demand grew by moderate 2.7% Y-o-Y, the lowest in the past several years. Demand in the southern region was worst affected, reporting a decline of 3.4%. Demand scenario has worsened further in 1st HFY 2012 companys demand and growth slumped to 3%. Price In Cement industry price is used only as a differentiator between the various Competitors brands. The prices of different brands in the same segment remain more or less similar, with just a difference of 2-5 rupee per bag. Sometimes price also varies with the order placed by the customer i.e order placed by him is in trade or in non- trade. Pricing decisions in the cement industry largely depend on the price of the inputs like clinker, other raw materials, excise duties and taxes and the general operating profits. Generally increase or decrease of prices is affected across all brands in the market.

Distribution Channels
Distribution Network Jaypee cement has around 156 cement dumps and all are networked using State-of-the-art TDM/TDMA VSATs along with a dedicated hub to provide 24x7 connectivity between the plants and all the 156 points of cement distribution in order to ensure track the truck initiative and provide seamless integration. Jaypee group follows both direct and indirect methods of distribution.

B2B-Direct Selling is done by supplying the product directly to the customer from the manufacturing unit. Mode of transportation used is Railways, trucks and Ships in case of exports. (fig 1.3)
Manufacturing Plant

Distributor

Customer

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JAYPEE CEMENTS
B2C- Jaypee cements have three tier distribution channels. They include sales promoters in their distribution channel to promote their sales. Company invariably hires c & f agents to transport cements to own or government warehouses. Domestically from c & f agents or warehouses cement is transported to distributers and in turn to sub dealers who finally sell it to end users. (fig 1.4)
Manufacturing Unit Warehouse Dealers/Distributers

Sub dealers

Customers

Government Initiative
With a goal of speed up and sustaining growth in the cement industry the government has taken a range of steps in the Union budget 2011-12. The infrastructure sector has received an momentum in the form of improved funds and tax related incentives offered to magnetize investors for tapping the infrastructure opportunities across the country. Introduction of tax free bonds, formation of infrastructure debt funds and formulating a comprehensive policy for developing public private partnership projects (PPPs) are some of the steps that will provide required stimulus for growth of the cement industry in India.

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JAYPEE CEMENTS
Chapter 2 Nature Of Industrial Buying
With the advances in manufacturing technology and construction techniques, the production of cement is getting more and more sophisticated, while the use of cement is becoming more versatile. Indeed Indian cement industry produces today a range of six (main) varieties and three grades of cement, besides a host of special cements earmarked for use for specific purposes. So much so, it has now become imperative for the consumer, in his own interest, to avoid confusion and mistake, to have an overall knowledge of these cements including their properties and application and also some basic idea about cement manufacture. This will help the consumer to make an informed choice both from functional utility and economic point of view. This site is an attempt at enabling the consumer with the essential guidance in selecting the right type of cement suiting his purpose, its proper storing and handling and check-testing of cement for quality reliability. Our primary objective is that the customer should get the value for the money spent in using cement and should get the maximum performance out of it.

Buying Situation
1) New Task Rebuy In cement industry new task rebuy happens only with construction industries were they will be having contracts in different projects like roads, dams, railway. For the type of strength needed for a dam or road the specification will be manufactured. Jaypee construction group itself is its biggest B2B customer. They supply different grade of cements for different projects based on the requirement. 2) Modified Rebuy Modified rebuy is adding different specification according to the needs. In cement markets grade changes based on the type of projects they are into. In housing segments as well as in major project specifications and grades changes accordingly. 3) Straight Rebuy Power and fuel costs have a strong influence on the operating expenditure of the company as they would account for about 32 % of total production costs. The overall costs are also determined by the economies of scale. So Large buyers of cement would align with cement producers for a long-term supply relationship; pricing will be determined by market and expected off take during a given period.

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Factors influencing buyers strategy
1. ) Economic Factors Economic Slowdown influences the industry in a large way. When bank rates increases major projects will be postponed and this impacts the market. 2. ) Technology Use of technology in marketing will assume more changes with increase in both communication and information technological changes. Concepts will emerge such as phone-acement, or portraying a 3-D animation of the house prior to its construction in a library, providing responses to customers through mobile technology. Increasing customer expectations of adding greater value will ensure greater attention to this aspect. Necessary enhancement in using mobile and communication technologies will also be introduced. 3. ) Cement Economics Costs have a significant bearing on the performance of an industry and cement is no exception. The uptrend in costs is likely to continue, although the increase in input costs is expected to be neutralized by rise in prices owing to higher demand. Power and fuel costs have a strong influence on the operating expenditure of the company as they would account for about 32 % of total production costs. The overall costs are also determined by the economies of scale. So Large buyers of cement would align with cement producers for a long-term supply relationship pricing will be determined by market and expected off take during a given period. 4. ) R&D and Innovation Companies do not have much of application-oriented research and development efforts but this will become critical for future success. To a large extent, this is related to creating the application and customer of the future and understanding customer needs based on the emerging environment. Companies will need to create niche products and develop the market for such products by providing solution-based offerings to the customer. Innovation will be very important, to create high-grade and cheaper quality of cement. Indian companies have been moving from lower grade cement to higher over the years, and would have to continue to roll out even better quality to compete with the global players and local competition. New cement products like RMC (Ready Mix Concrete) will help create a company carves out a niche in the market.

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JAYPEE CEMENTS Chapter 3 Segmentation


Region-wise strategy is likely to continue for cement companies, unless state governments in surplus states along with business create a different growth strategy to boost infrastructure development. Cement delivery will be made off city limits where the growth is expected to happen. The stocking points will be larger and fewer. Jaypee cements has huge presence in north India than in south. It is because most of its manufacturing plants are in north India such as in Gujarath, Himachal Pradesh etc. Northern regions had many huge projects such as dams for hydro power generation and restructuring of national highways and jaypee cements is the major exporter to Nepal. The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be 37.55 MnTPA by FY12 (expected) with Captive Thermal Power plants totaling 672 MW. JayPee is the largest Cement producer in the state of Uttar Pradesh. For optimizing cost of power, 100% of the power requirement of cement plants are being sourced through captive thermal power plants.(MP-123MW, UP-65 MW, HP-30 MW and Gujrat-85 MW Jaypee Cement being used in the construction of large dams and hydro electric power projects like the TehriDam in Uttarakhand, Dul Hasti and Baglihar projects in J&K, Indra sagar dam in M.P, Teesta-Vproject in Sikkim, Baspa-ll, Nathpa Jhakri and Chamera-ll projects in H.P, Tala project in Bhutan,Karcham-Wangtoo Project in H.P, Sardar Sarovar Project in Gujrat, Omkareshwar Hydro Electric Project in M.P and Vishnuprayag Project in Uttarakhand. List of prestigious clients include Reliance Energy, NTPC, NHPC, GAIL, DMRC, IOC, NFL, Indian Railways, DIAL, L&T, Gammon,HCC, Som Datt Builders. IRCON, UPSBC, Hindalco, GMR, OSEL, RIL to name a few.

Selecting market segments by jaypee cements


a) Undifferentiated Market Selection Jaypee cements manufacture ordinary 'Portland' cement which is used maximum in the country. It is more suitable cement for masonry and general concrete works where the members are not taken to very high stresses. It is standardised cement for common market. (fig 1.5)

33 Grade Ordinary Portland Cement


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General Concrete Works

JAYPEE CEMENTS
b) Differentiated Market Selection Jaypee cements manufacture 43 Grade Ordinary Portland cement for RCC works and 53 Grade special Ordinary Portland cement for RCC work where high early strength in 1 to 28 days range is required. Type III is a high-early strength portland cement that provides high strengths at an early period, usually a week or less. It is used when forms are to be removed as soon as possible, or when the structure must be put into service quickly. Used mainly for road construction and dam construction.(fig 1.6) 43 Grade ordinary Portland cement

RCC Works

53 Grade Special ordinary Portland cement

RCC Works

Type 3 cements high early strength Portland cement

Roads and Dams

c) Concentrated Market selection

(fig 1.7)

33 Grade Portland ordinary cement

General Concrete Works

RCC Works/Drainage works

Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers requirements for different types of cements in each of its markets. All the brands, which the Company produces, are so evolved in their characteristics and properties that they will surpass BIS Standards. For each brand, the relevant BIS standards are mentioned in enclosed table along with a comparison with the BIS requirement. The state-of-the-art cement plants operated by the Jaypee Group are equipped with the most modern technology from the globally leading technology providers. Extensive Instrumentation& fully automatic and computerized process control

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JAYPEE CEMENTS
system, custom designed Quality Control software like QSO Expert and CADES in the Mines, Cross Belt Expert Analyzer using the Prompt Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray Diffraction analysers and optical microscope, enable production of cement of the highest quality consistently on a sustained basis

PositioningAdvertisement Jay pee Cement launches a new campaign to redefine the concept of solidity and trust with an emotional connect that the Jaypee Group has come to be known for Andar se onal Solid as the tagline to consolidate the brands core values of Trust, Resilience & Stability and the brands core promise of superior strength, durability and withstanding the test of time. Campaign would reinforce and further build on the brands virtues of strength, endurance and fortitude values that shall propel Jaypee Cement to a capacity of 25 million tonnes by 2010 and then 35 million tonnes per annum by 2011 Jaypee Cement is Indias 3rd largest cement player and To communicate the companys leadership stature and premium positioning, an aggressive multimedia campaign has been drawn up New Delhi, April 14, 2009 The Master Blaster, Sachin Tendulkar To Endorse Jaypee Cement.

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JAYPEE CEMENTS Chapter 4 Formulating product Planning


T h e c e m e n t p l a n t s o f J a y p e e c e m e n t s a r e l o c a t e d i n various regions of the country in number of states. The gadgets and equipments are of high standards and comply with the international standards. Presently, there are around 8 cement plants of Jaypee cements which cater to the different mar ket segments of the country. RESOURCE ALLOCATION All the jaypee cement Plants use the cutting edge technologies and services which in turn produces high quality cement brands. It has always worked dedicatedly to produce some of the best brands of cement and its business strategy is based on providing the best of products to the changing consumer market in the country and the world. STRUCTURAL IMPLEMENTATION The cement plants of jaypee cements are located in various regions of the country in a number of states. The gadgets and equipments are of high standards and comply with the international standards. Presently, there are around 8 cement plants of jaypee cements which cater to the different market segments of the country. The cement plants work in coordination with each other and also independently to increase the share in the market. FUNCTIONAL IMPLEMENTATION The high quality cement that is manufactured and exported by jaypee cements is produced in the jaypee Cement Plants. It has a significant market share in the segments of housing, real estate, infrastructure and other development projects. With more and more developmental projects coming up, the profit and the market share of the company is expected to rise at a considerable rate. PRODUCT LIFECYCLE (fig 1.8)
16000 14000 12000 10000 8000 6000 4000 2000 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Turnover(Rs Crores) Profit(Rs Crores)

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MATURITY STAGE The Gray cement brands of Jaypee Cements is in Maturity stage of the product lifecycle. As the products already enters the maturity stage, the number of competitors entering the market increase resulting in the decline in the growth of profits comparing to the increasing turnover. The marketing strategy when a product is in maturity stage of Jaypee Cements is: i. ii. iii. Enter new markets Keep the existing customers satisfied Cut marketing, production and other costs to maintain profit margins.

It is applicable for all the products of Gray cements manufactured by Jaypee Cements, as it has long existence in the steel market. Life Cycle Analysis In recent years concern for the environment has grown among national governments, industry and the general public. In consequence, there is pressure to improve manufacturing systems and change consumer behaviour to progress towards sustainable development. Life Cycle Assessment (LCA) has emerged as a leading tool for quantitative analysis of environmental impacts of products and processes, which are often very complex. LCA measures the impact on the environment over the course of a products lifetime, from the parts and materials that are used in its manufacture through to its assembly, shipment, use, and ultimate disposal.

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Chapter 5 Formulating Channel Strategy Distribution Channels
Jaypee cements invariably hire c & f agents or transport cements to own or government warehouses either via roadway or railways. In case of exports, cement reaches the nearest port via roadways or railways and is then transferred to the importing country. Domestically, from c & f agents or warehouses the cement is transported to the dealers/distributors and in turn to sub dealers who finally sell it to the end users. There may or may not be physical ownership of goods. In the second case, dealers and sub dealers take order from buyers and place it to the companies, co ordinate and monitor the timely dispatch of said orders, transportation of goods and final delivery. Distributor network in cement industry is highly dominating and companies are compelled to hire as they do not really have that rapport and touch with the end consumer of their product. Apart, from this, the distributors have storage facilities as well which help control well in the entire supply chain as they are the ones who bring orders and therefore are directly responsible for the business that a manufacturer would do. Industry dynamics in Cement Industry do not favour entry of MNCs into the Indian market. Jaypee group follows both direct and indirect methods of distribution. B2B-Direct Selling is done by supplying the product directly to the customer from the manufacturing unit. Mode of transportation used is Railways, trucks and Ships in case of exports.

(Fig 1.9)

Manufacturing Plant

Distributor

customer

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JAYPEE CEMENTS

B2C- Jaypee cements have three tier distribution channels. They include sales promoters in their distribution channel to promote their sales. Company invariably hires c & f agents to transport cements to own or government warehouses. Domestically from c & f agents or warehouses cement is transported to distributers and in turn to sub dealers who finally sell it to end users. (fig 2.0)

Manufacturing Unit

C & f/Warehouse

Dealers/Distributer s Sub dealers Customers

Distribution Network Jaypee cement has around 156 cement dumps and all are networked using State-of-the-art TDM/TDMA VSATs along with a dedicated hub to provide 24x7 connectivity between the plants and all the 156 points of cement distribution in order to ensure track the truck initiative and provide seamless integration. Distribution has Numerous Challenges Cement has a useful shelf life of approximately 6 months. Customers also have a bias towards fresh cement ( Garam Cement ) forcing manufacturers to predict accurate amount of inventory. In India construction activities slows down during rainy season that is why cement demand is cyclic in nature. A fine balance needs to be achieved between inventory cost and capacity utilization. Since railway route is the cheapest mode of transport, availability of railway wagon is a big constraint in present scenario. Since companies put multiple plants to save on transportation cost, which market should be served from which plant is big challenge Value added services such as Ready Mix Concrete ( RMX) has now become a industry trend. It is putting pressure on lead-time and vehicle TAT. Private & Confidential. Cement companies offer a lot of discounts like cash discounts, volume discounts, seasonal discounts, foreign tours and allowances to dealers for promoting healthy sales. The dealers take advantage of these discounts to gather more business.

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Chapter 6 Pricing Strategies Pricing Strategies
Price in Cement industry is used only as a differentiator between the various Competitors brands. The prices of different brands in the same segment remain more or less similar, with just a difference of 2-5 rupee per bag. Sometimes price also varies with the order placed by the customer i.e order placed by him is in trade or in non- trade. Pricing decisions in the cement industry largely depend on the price of the inputs like clinker, other raw materials, excise duties and taxes and the general operating profits. Generally increase or decrease of prices is affected across all brands in the market. Most of the Cement companies offer a 5-10% margin to the dealer and particular amount of money against per Mt. of the sales to the Sales Organizer for promoting the sales in his region. Due to internal competition, the dealers pass on this advantage to the customers by reducing their own margins to 2- 3%. This is a cause of concern for the cement companies because they have to keep a constant check on the prices offered in the market. The dealers offer more of discounts and the companies are not able to firm up the prices. Cement companies offer a lot of discounts like cash discounts, volume discounts, seasonal discounts, foreign tours and allowances to dealers for promoting healthy sales. The dealers take advantage of these discounts to gather more business. Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers requirements for different types of cements in each of its markets. All the brands, which the Company produces, are so evolved in their characteristics and properties that they will surpass BIS Standards. Thus basics prices for different brands of JAYPEE CEMENT from the dealer of Madhya Pradesh(Indore) are given below: JAYPEE CEMENT (PPC) PPC stands for portland pozzolana cement Price of Jaypee Cement (PPC) contains 50 kgs is INR 300 per bag. Jaypee Cement (OPC-43 Grade) Jaypee Cement (OPC-53 Grade)OPC stands for Ordinary Portland Cement Price of Jaypee Cement (OPC-43 Grade) INR 290 Per bag contains 50 kgs is INR 285 per bag.

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Future Pricing Strategies
The continuous rise in input costs, which eats into the profits of company, may force jaypee cements to re-work pricing strategy. Further, the fuel price hike could act as a trigger for an immediate hike. There has been no definite industry report on the price restructuring. Companies comments as The situation is uncertain and anything can happen in near future as a result of increasing fuel price A month ago, several cement firms had taken a non-uniform stand on pricing, after being pressurised by the government. Jaypee cements opted for freezing rates at the current levels, whereas others went ahead with cuts of Rs 2-7 on a 50 kg bag of cement. So far, the government has not taken any measures on the industry's demands, which include reducing excise duties, abatement on cement and removing import duty on coal the major contributor to the firms' input cost concerns. Jaypee cements spoke person recently said that after two-three months, the company would look at the scenario and decide about the prices. The company had chosen in May to freeze the prices for the period. However, it had added that this would erode margins. On an average, the cost pressure on a bag of cement has risen by Rs 14 in the last year. However, the actual rate increase has been in the range of Rs 5-8 a bag. Currently, the average prices across the country is around Rs 220-230 a bag of cement. In Mumbai, it is Rs 255, Delhi Rs 235, Kolkata Rs 240, Chennai Rs 255 and Hyderabad Rs 216

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JAYPEE CEMENTS Chapter 7 Promotion


Promotion of Jaypee Cements advertising has created brand awareness, highlighted what the brand has to offer and has consistently brought all of it top-of-the-mind for the customer. But the outreach effort does not end there. Jaypee Cement has recognized the importance of communicating to and involving key players who influence the final brand choice. These include channel partners, contractors and masons, on whom Jaypee cement focuses by initiating and developing innovative activities and promotions. This helps build the Jaypee cement family so that customers get a high degree of personalized service and professional guidance to facilitate their final decision. PackagingJaypee cements moto is Work for Quality, Safety, Health & Environment Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers requirements for different types of cements in each of its markets. All brands are marketed in attractive HDPE bags, containing 50 Kgs of quality cement from Jaypee. Bags are identified with a conspicuous Jaypee Logo, which also over the years has come to be regarded as a Hallmark of quality. Advertisement and PositioningAdvertisement Jay pee Cement launches a new campaign to redefine the concept of solidity and trust with an emotional connect that the Jaypee Group has come to be known for Andar se onal Solid as the tagline to consolidate the brands core values of Trust, Resilience & Stability and the brands core promise of superior strength, durability and withstanding the test of time. Campaign would reinforce and further build on the brands virtues of strength, endurance and fortitude values that shall propel Jaypee Cement to a capacity of 25 million tonnes by 2010 and then 35 million tonnes per annum by 2011 Jaypee Cement is Indias 3rd largest cement player and To communicate the companys leadership stature and premium positioning, an aggressive multimedia campaign has been drawn up New Delhi, April 14, 2009 The Master Blaster, Sachin Tendulkar To Endorse Jaypee Cement. The new campaign looks to redefine the concept of solidity and trust with an emotional connect that has come to be associated with all Jaypee Group campaigns. jaypee cement one of associate companies of jaypee group, endorsed famous lycrist javed akhtar as brand ambassador for newspaper print. (fig 2.1)

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Human resources/industrial relations


The core of achieving business excellence lies in a committed, talented and focussed workforce. Under the exemplary leadership of its Founder Chairman, the Company has created a highly motivated pool of professionals and skilled workforce that share a passion and vision of the Company. The resultant power of HR pool gets reected in the phenomenal growth of the Company in the recent past. The Company adopts latest techniques in evaluating the potential and training needs of the employees at all levels. Designing of tailor-made training programmes that ll the knowledge/skill gap and imparting in-house training in addition to utilising external programmes are signicant functions of HR. As at 31.03.2012, the Company had a total workforce of approx. 20,000 persons, including managers, staff and regular/casual workers. Industrial relations in the organization continued to be cordial and progressive.

Suggestions
Large number of players in cement industry makes it more competitive for JAYPEE CEMENT to carefully price its product and at the same time satisfy its dealers and customers. The emergence of small players in this market may increase the competition and start the malpractices, and heavy discounts to retailers. They can also influence many retailers by giving better profit margin, and other Benefits. People are opting for more stable structures and intensive use of cement is taking place, even government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets. Foreign direct investment in infrastructure sector going to increase in coming years, which will increase the demand of cement. Therefore JAYPEE CEMENT should try to create a goodwill through advertisements and better services in the market so that they can attract more customers Group.
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Using sophisticated technology and optimum utilization of resources helps reduce the cost and increase margin rate. Concentrating on all the geographical areas such as southern India will help jaypee cements increase its market share and thus curb competition.

Conclusion
Cement consumption and demand in India has been growing during the last few years. However, due to market conditions, the selling price had been under pressure during the year under review and for the present as well. To meet the challenge, the Company keeps taking steps to improve economy in operations on continuous basis. The pan India presence of the Company for manufacturing and marketing of Cement will give the Company inherent location advantages and economies of scale.

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