INTRODUCTION

Marketing can be defined as the activity, set of institutions, and processes

for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large. The term developed from the original
meaning which referred literally to going to market, as in shopping, or going to a market
to buy or sell goods or services.

Marketing is a societal process by which individuals and groups obtain what they
need and want through creating, offering and freely exchanging products and services of
value with others. For a managerial definition, marketing has often been described as
The art of selling products", but people are surprised when they hear that the most
important part of marketing is not selling , but selling is only the tip of the marketing ice
berg.
The Marketing strategy is evolved in the late 1950s. When some marketers
began to realize that they could sell more goods more easily. If they produced only those
goods they had already determine that consumers would buy. Instead of trying persuade
to customers to buy what the firm had already produced. Consumer needs and wants
became the firms primary focus. The marketing mix consists of a companys product
offerings to consumers and the methods and tools it selects to accomplish the exchange.
The marketing mix consists of 4 elements: Product, Price, Place, and Promotion.

Marketing is the societal process by which individuals and groups obtain

what they need and want through creating, offering, and freely exchanging
products and services of value with others. For a managerial definition, marketing
has often been described as the art of selling products, but people are surprised
0

when they here that the most important part of marketing is not selling are only the
tip of the marketing iceberg.

The American marketing association offers the following definition:

Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchange that satisfy
individual and organizational goals. The marketing plays a major component of any
organization to reach their goals. Marketing should help the organization to know the
needs, wants, and feelings of the customers.
The goal of marketing is to attract new customers by promising superior value and
to keep current customers by delivering satisfaction based on their preferences retaining
them. Without customer no market exists. As the customers are regarded as superiors in
todays market, the level of satisfaction and their preferences should be keenly studied.
Getting a new customer is difficult, then retaining a current customer is a more difficult
one and not only that it is estimated that the cost of attracting a new customer is five times
the cost of retaining current.

DEFINITIONS:
Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that satisfy
Individual and Organizational goals.
-------Philip Kotler & Kevin Lane Keller

Todays market is full of offers and discounts. Marketers use multiple promotion
programmers to entice customers to by products and services. While objectives of

advertising are long term and generally of brand building., sales promotion programmers
often pursue a single goal i.e, to maximize sales in short run. The consumer promotion
programmers are visible to the audience because they are often advertised in the mass
media . companies also undertake trade are intermediary promotion and sales force
promotion programmer to increase sales. This is important because in both direct and
indirect marketing programmes ,sales and trade play an important role in the product at
trade and sale force and, many consumer promotion programmes will not achieve its
desired objective. Sales promotion programmes are short term programmes, short term
programmes are aimed at maximizing sales in a period of time but what is most important
to remember is that the sales promotion programme should be designed in such a way that
it does not affect the overall brand image of the firm and its product. Many companies
offers sales promotion prigrammes more frequently. Through they are able to optimize
their sales in a short run period but frequent use of sales promotion leads to brand value
erosion. Sales promotions are increasingly being used to accomplish an ever-expanding
list of marketing objectives.

Companies pursue short term and long term marketing goals. Whereas in the long
run they wish to build brands, which deliver vale over a long period of time, in the short
term they pursue sales and market share goals. The demand for products and services is
affected by various extraneous entry of new competitor into the business. In off seasons,
sales are not healthy and there is a fall in market demand which creates companies use
sales promotion schemes to promote sales during off season period.

Sales promotion is one of the four aspects of promotional mix. (The other three
parts of the promotional mix are advertising, personal selling, and publicity/public
relations.) Media and non-media marketing communication are employed for a predetermined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include:

contests

point of purchase displays

rebate (marketing)

free travel, such as free flights

OBJECTIVES

The following are the objective of this project:The objective was carried out the market survey for knowing prevailing market
condition on Maha Cement in Hyderabad market.

To assess the quality of advertisement of Maha cement

To lay down suggestive measures for the improvements of Maha Cements Sales
performance.

To find out satisfaction levels of the dealers towards the Maha cement

Increase sales volume

Check the fluctions in sales

Encourage dealers to participate in displace sale contests

Improve relationship with dealers

Motivate to the dealers

Deflect customers attentions from price

SCOPE OF THE STUDY

1. . The study has been done for the Cement so more or less it helps in understanding
the consumer preference towards the cement market.

2. . The study can help in analyzing certain weak point, improving on which a
company can overcome the low sales of its cement.
3. The study concentrates on analyzing the satisfaction levels of the customers in
HYDERABAD.
4. To study the major competitors of Maha Cement in Hyderabad
5. To assess the quality of distribution network of Maha cement

LIMITATION OF THE STUDY

. Lack of cooperation from the retailers in regard to giving interview

. It was found in some cases dealers showed inclination towards certain brands
which gave them more margins when compared to others.

. It was experienced during the survey that it was difficult to convince or make the
retailers and dealers understand the important of the project

As the retailers and dealers thought that it was unwise for the

METHODOLOGY
Method:
The following are the method chosen for the completion of project and collection
of data , response.
Personal Interview method
Telephone Survey

Research Plan:
The following pages are the account of a survey conducted on behalf of Maha
Cement. An attempt was made to know the performance of Maha Cement with regards to
its Sales and Promotion, Advertisement and Distributions.
For this a thorough marketing survey was conducted by collecting required data
both primary and secondary. Primary data consists as, secondary data consists of
information that already exists somewhere having been collected for another purpose. The
data collected for this study consists of both primary data and secondary data.

SOURCES OF DATA:
Primary Data
Primary data was collected with help of questionnaire, an interview with the
dealers of samples.
Secondary Data:
Secondary sources helpful for my study were:

 Text books like marketing management research

News papers were referred
Business magazines were referred
Some journal was also referred
The survey conducted includes only Maha Cement dealers and multi Brand Dealers no
any other brand Specific Dealers.
To give their details of business as they feared competitors would take advantage.

CEMENT INDUSTRY
INTRODUCTION:
Cement is a key infrastructure industry. It has been decontrolled from price and
distribution on 1st March, 1989 and delicensed 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.
For building a houseman needs a material that would bind stones in to solid form
in olden days clay was used to bind the blocks, then the Egyptians used lime and gypsum
mortar to bind blocks in building pyramids. Romans used slacked lime mixed with
volcanic Ash of mount Vesuvius as a building material, this material was called Hydraulic
cement which hardness under water. This is now called POZZOLONA CEMENT. When
one English engineer, John Semitone was assigned to build a light house on the coast of
Orwell failed with ordinary lime mortar which did not harden underwater, he came out
with an idea of making cement made from burning of lime stone containing a consider a
bad portion of clay. Then he succeeded in making the LIGHT HOUSE which stayed for
many years.

Capacity and Production

The cement industry comprises of 125 large cement plants with an installed
capacity of 148.28 million tonnes and more than 300 mini cement plants with an
estimated capacity of 11.10 million tonnes per annum. The Cement Corporation of India,
which is a Central Public Sector Undertaking, has 10 units. There are 10 large cement
plants owned by various State Governments. The total installed capacity in the country
as a whole is 159.38 million tonnes.

Actual cement production in 2002-03 was 116.35

million tonnes as against a production of 106.90 million tonnes in 2001-02, registering a

growth rate of 8.84%.
Keeping in view the trend of growth of the industry in previous years, a
production target of 126 million tonnes has been fixed for the year 2003-04. During the
period April-June 2003, a production (provisional) was 31.30 million tonnes. The industry
has achieved a growth rate of 4.86 per cent during this period.

Exports
Apart from meeting the entire domestic demand, the industry is also exporting
cement and clinker.

The export of cement during 2001-02 and 2003-04 was 5.14

million tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was
1.35 million tonnes.

Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

Recommendations on Cement Industry

For the development of the cement industry Working Group on Cement Industry
was constituted by the Planning Commission for the formulation of X Five Year Plan.
The Working Group has projected a growth rate of 10% for the cement industry during
the plan period and has projected creation of additional capacity of 40-62 million tonnes
10

mainly through expansion of existing plants.

The Working Group has identified

following thrust areas for improving demand for cement;

(i)

Further push to housing development programmes;

(ii)

Promotion of concrete Highways and roads; and

(iii)

Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry,

the Department of Industrial Policy & Promotion commissioned a study on the global
competitiveness of the Indian Industry through an organization of international repute,
viz. KPMG Consultancy Pvt. Ltd.

The report submitted by the organization has made

several recommendations for making the Indian Cement Industry more competitive in the
international market. The recommendations are under consideration.

Technological change
Cement industry has made tremendous strides in technological upgradation and
assimilation of latest technology. At present ninety three per cent of the total capacity in
the industry is based on modern and environment-friendly dry process technology and
only seven per cent of the capacity is based on old wet and semi-dry process technology.
There is tremendous scope for waste heat recovery in cement plants and thereby reduction
in emission level. One project for co-generation of power utilizing waste heat in an
Indian cement plant is being implemented with Japanese assistance under Green Aid Plan.
The induction of advanced technology has helped the industry immensely to conserve
energy and fuel and to save materials substantially.

India is also producing different

varieties of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement
(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening

11

Portland Cement, Sulphate Resisting Portland Cement, White Cement etc. Production of
these varieties of cement conform to the BIS Specifications. It is worth mentioning that
some cement plants have set up dedicated jetties for promoting bulk transportation and
export.

Cement Industry in India:

The cement industry in India began in 1904, when the first cement factory was
started in Madras by the south India Industries Company later on large scale production
was started in 1914 after cement industries has setup their plant at Porbandar. Then
various other cement companies were setup.

In 1936 all the cement factory merged to form the Associated Cement Companies Ltd.
Except Stonewalled Portland Cement Company Ltd. At time of partition of India had 18
factories with an installed capacity of 105 million tones per annum. The cement industry
received a push with the five year plans.

After Independence
The growth rate of cement was slow around the period after independence due to
various factors like low prices, slow growth in additional capacity and rising cost. The
government intervened several times to boost the industry, by increasing prices and
providing

financial

incentives.

But

it

had

little

impact

on

the

industry.

In 1956, the price and distribution control system was set up to ensure fair prices for both
the manufacturers and consumers across the country and to reduce regional imbalances
and area suffiency

12

Since the independence. India cement industry has been growing to meet the demand of
the Indian market. Now India Is in a position to meet the demand of the local market and
also in a position to export the cement to the other counties the counties to which cement
is exported are Nepal, Bangladesh, South Africa, Maldives, UAE and other others.
Cement Industry in India is on a roll at the moment. Driven by a booming real
estate sector, global demand and increased activity in infrastructure development such as
state and national highways, the cement industry has witnessed tremendous growth.
Production capacity has gone up and top cement companies of the world are vying to
enter the Indian market, thereby sparking off a spate of mergers and acquisitions. Indian
cement

industry

is

currently

ranked

second

in

the

world.

The origins of Indian cement industry can be traced back to 1914 when the first
unit was set-up at Porbandar with a capacity of 1000 tonnes. Today cement industry
comprises of 125 large cement plants and more than 300 mini cement plants. The Cement
Corporation of India, which is a Central Public Sector Undertaking, has 10 units. There
are 10 large cement plants owned by various State Governments. Cement industry in
India has also made tremendous strides in technological upgradation and assimilation of
latest technology. Presently, 93 per cent of the total capacity in the industry is based on
modern and environment-friendly dry process technology. The induction of advanced
technology has helped the industry immensely to conserve energy and fuel and to save
materials substantially. Indian 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

13

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 HolcimACC-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.

14

Cement production and growth:

Domestic demand plays a major role in the fast growth of cement industry in
India. Infact the domestic demand of cement has surpassed the economic growth rate of
India. The cement consumption is expected to rise more than 22% by 2009-10 from 200708. In cement consumption, the state of Maharashtra leads the table with 12.18%
consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh
leads the list with 14.72% of production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total
production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the
production of cement in India was 101.04 MT comparing to 95.05 MT during the same
period in the previous year. During October 2009, the total cement production in India
was 12.37 MT compared to a production of 11.61 MT in the same month in the previous
year. The cement companies are also increasing their productions due to the high market
demand. The cement companies have seen a net profit growth rate of 85%. With this huge
success, the cement industry in India has contributed almost 8% to India's economic
development.

The Global Cement Industry

Cement is a basic ingredient for the construction industry. Cement is made out of
limestone, shell, clay mined out of a quarry close to the plant. The raw material is
crushed, and then heated at temperature in excess of 1000 C in rotating kiln to become
clinker. Clinker is then mixed with gypsum and ground to a fine powder to produce final
grade of cement. The technology is a continuous process and is highly energy

15

intensive.Cost of cement is 29% energy, 27% raw materials, 32% labour and
12%depreciation.
The weight/to price ratio make transportation cost very high. The competitive
radius of a typical cement plant for most common types of cement extends no more than
300 kilometers. However, cement can be shipped economically by sea and inland
waterway over great distances, extending greatly the competitive radius of cement plants
with access to waterborne shipping lanes. Thus, the location of a cement plant and the
cost to transport the cement it produces through its distribution terminals bear
significantly on the plants competitive position and the prices it may charge. The
minimum efficient size for a cement plant is around 1 million ton a year.
As a consequence of a relatively low minimum efficient plant and transportation
costs cement production is highly fragmented. It is estimated that there are around 1500
integrated cement production plants in the world. Although the industry has seen the
emergence of strong global players such a Lafarge or CEMEX, the share of the four
largest firms account only for 23% of the overall demand.
Cement is distributed in bags or is delivered to construction sites through
readymix lorries.
The major segments of the industries are:
Aggregates: quarries and crushing minerals to be mixed with cement to
make concrete
Cement production
Ready Mix: distribution of ready to use concrete

Issues concerning Cement Industry

High Transportation Cost is affecting the competitiveness of the cement industry.

Freight accounts for 17% of the production cost. Road is the preferred mode for
16

transportation for distances less than 250km. However, industry is heavily

dependant on roads for longer distances too as the railway infrastructure is not
adequate.

Cement industry is highly capital intensive industry and nearly 55-60% of the
inputs are controlled by the government.

There is regional imbalance in the distribution of cement industry. Limestone

availability in pockets has led to uneven capacity additions.

Coal availability and quality is also affecting the production

Cement industry profiles: India

This article is an abridged version of the full article, which appeared in the October 2012
issue of World Cement. Subscribers can view the full article by logging in.
The monsoon effect
Poor monsoon rains this year have hit Indian farmers badly but have helped boost demand
for cement during what is usually the low season for the cement industry. The lack of rain
has allowed construction companies to continue working as usual and pushed up demand
for cement by more than 10% all over India in June and July, according to property
developers, with the price of cement also edging up as a result.
During a normal monsoon season, cement demand decreases by mid-June and remains
depressed for another three months as heavy rain falls all over India causing construction
work to slow down. For example, cement demand growth was just 1.6% in June 2011,
while double digit growth is expected when accurate cement demand data becomes
available for June of this year.

17

Observers believe the recent rise in cement prices may not be solely due to unexpected
increased demand from the construction industry. Many cement manufacturers close
some of their plants during the monsoon season for annual maintenance owing to the
normal decrease in cement demand, which results in lower production capacity
availability during the annual rains.
Additional capacity
Increased monsoon season demand is lifting cement production in various parts of the
country. However, this is not expected to reverse the overall trend that Indias cement
industry has faced during the past two years of subdued demand growth and declining
plant operating rates caused by the large increase in cement capacity that has recently
come on stream.
Almost 63 million t of new high quality cement production capacity has been
commissioned during the past two years according to the Cement Manufacturers
Association of India (CMA). The impact of the new capacity additions and weaker
cement demand has been to push down capacity utilisation rates across the country from
85% in FY09/10 to 75% in FY11/12, CMA figures show. Housing construction and
government infrastructure investment helped boost demand across most of India in
FY11/12. Cement consumption grew by 13.8% in the western region followed by 11% in
the north, 9.3% in central India and 2.9% in the eastern region.
Southern India
The situation is different in the south, however, where some 23 million t, almost one third
of Indias new cement manufacturing capacity, has been installed during the past two
years. Local political issues, particularly in Andhra Pradesh state, which is an important

18

cement market, caused cement demand for infrastructure projects and housing
construction in the south to fall to 3% below the previous years level for the first three
quarters of FY11/12, with southern demand only showing growth in the final quarter of
the year. As a result, utilisation rates in the southern region are the lowest in India, with
the overall rate falling to 63% in FY11/12.
Apart from lower construction activity last year, another reason for the low plant capacity
utilisation in the south has been a shortage of rail freight cement wagons, preventing
southern cement producers from supplying cement markets in eastern and northern India
that are located too far away to be supplied by road transport.
The outlook this year is brighter. Cement demand picked up in the first quarter of 2012
across India, raising hopes for sustained growth during the rest of the year.
According to the CMA, cement demand rose 10% countrywide in January March 2012,
compared with 5.6% during the preceding nine months. Growth in demand was largest in
southern India, reaching 9.6% in contrast to a 3% y/y fall during the previous nine
months. It is expected that demand in the south will catch up with cement supply by
FY14/15.
New plants
Although cement demand is picking up, capacity utilisation is expected to fall even
further this year as more cement plants come onstream. According to The Hindu
newspaper, cement demand is likely to rise by 8% in FY12/13, lifted by rising demand
from infrastructure construction and housing development projects in western and eastern
India.

19

A forecasted 7.5% increase in GDP will help lift cement demand this year as the economy
picks up again.
Indias GDP growth in FY11/12 is estimated at 6.9%, a sharp fall from 8.4% the previous
year due to the impact of the Eurozone crisis, high domestic inflation and weak industrial
growth.
A further 25 million t of production capacity is due to be commissioned this year. Cement
plants totalling around 9 million t are due to start up in the south, while about 7 million t
of new capacity is set to be commissioned in eastern India.
The impact is likely to depress the cement industrys all-India operating ratio to about
72% this year, with the operating ratio in the south likely to be in the low 60 percentile
range and eastern India in the mid to upper 60s.
Cement pricing
Cement prices are expected to rise in northern India, which geographically is too far from
southern and eastern India to be supplied from those regions where surplus cement
production capacity is available. Meanwhile, cement prices and supplies have recently
made headline news in the country as a result of the Competitive Commission of India
(CCI) imposing a collective fine totalling Rs.60 billion (US$1.1 billion) in June for price
fixing. Announcing the fine, CCI accused the companies of limiting cement supplies
and controlling prices through an anti-competitive agreement. CCIs action follows a
formal complaint from the Builders Association of India that the 11 cement companies
had formed a price cartel. The CMA has also been implicated in the price fixing issue. It
has been asked to disengage and disassociate itself from collecting whole and retail
cement prices from member cement companies and for circulating details on production

20

and dispatches of cement companies to CMA members. The penalty is bigger than
expected and the accused cement manufacturers are preparing to enter the appeals
process. Indias three largest cement manufacturers, UltraTech, ACC and Ambuja
Cements, have said they will appeal the ruling at the countrys Competition Appelate
Tribunal.
Cement Industries in ANDHRA PRADESH with Production Capacity
16.70 CAPACITY
NAME OF CEMENT
COMPANY / PLANT

LOCATION

ANNUAL INSTALLED
CAPACITY (MILLION
TONNES)
0.34

ACC Ltd.

Macherial

Orient Cement

Rechni Road

1.18

Maha Cement

Nalgonda

3.32

Andhra Cement (G)

Vijaywada

0.24

Kistna Cement

Kistna

0.21

Zuari Cement

Tadipatri

1.70

India Cement

Yerraguntla

0.40

India Cement

Chilamkur

1.00

Madras Cements

Jayantipuram

1.10

Rassi Cement

Wadapally

1.80

Priyadarshini Cement

Ramapuram

0.60

Shri Vishnu Cement

Sitapuram

1.00

CCI Ltd.

Tandur

1.00

Andhra Cement (G)

Visakapatnam

0.50

CCI Ltd.

Adilabad

0.40

Andhra Cement

Nadikude

0.50

KCP Ltd.

Macherla

0.40

21

Panyam Cements

Bugganipalle

0.53

L & T A.P.

Tadipatri

2.00

India Cement Visaka

Tandur

0.90

STATE

NUMBER OF PLANTS

Madhya Pradesh
Andhra Pradesh
Rajasthan
Gujarat
Maharashtra
Karnataka
Tamil Nadu
Bihar
Himachal Pradesh
Uttar Pradesh
Orissa
Punjab
West Bengal
Delhi
Haryana
Kerala
Jammu & Kashmir
Assam
Meghalaya
TOTAL

20
16
12
6
8
10
7
3
6
3
1
2
1
1
1
1
1
1
1
120

CAPACITY
(MILLION TONNES)
26.03
18.03
15.07
12.59
6.41
6.92
7.59
4.62
3.47
4.05
2.66
1.04
1.13
0.50
0.17
0.42
0.20
0.20
0.20
111.03

COMPANY PROFILE
History:

22

My Home Industries limited (MHIL) is a private limited company originally

incorporated as Devi Cements limited under the companies act 1956 with the main
objectives manufacturing and selling of cement and cement related products.

In the year 1998 Dr.J .Rameshwar Rao, one of the promoters has acquired the
share holding interest of other promoters. consequent to the change in the management,
the name of the company was changed to My home Cement industries limited and
since then there was substantial growth in the operations of the company. The company is
an ISO 9001 : 2000 certified company.
CORPORATE PROFILE
My Home Group is promoted by Dr. Rameswar Rao Jupally, a doctor by profession
entered into real estate business with an aim to deliver excellent and quality homes. For
Dr. Rao a house is not the four walls with empty space. It is something beyond them, it's
about the emotions, excitement and happiness. With this profound belief and philosophy,
He established My Home Group, with My Home Constructions Pvt. Ltd. as its flagship
company.
My Home Industries Ltd
Cementing trust and quality
My Home Industries, part of My Home Group, is one of the leading cementmanufacturers
in South India. With three plants in Mellacheruvu (Nallagonda Dist), one newly
commissioned unit at Yalamanchili (Vizag Dist) My Home Industries has a total installed
capacity of 4.7 million tons per annum. With this, My Home Industries has become the
largest cement company in Andhra Pradesh in terms of installed capacity. The Brands
MAHA CEMENT and MAHA SHAKTHI have built a formidable reputation for quality.

23

My Home Industries also has a 15 MW captive power plant at Mellacheruvu unit.My

Home Industries has a 60 MW plant at Mellacheruvu which is being implemented by My
Home Power
MY Home constructions
Hosting Happy Communities
With the advent of My Home Constructions Pvt. Ltd. Hyderabad real estate market
landscape changed permanently. All the ventures of My Home Constructions have
become icons for world class standards and amenities. My Home Tycoon, My Home
Rainbow, My Home Navadweepa, My Home Hub are amongst 14 properties developed
by My Home that are popular landmarks in twin cities. So far My Home Constructions
have built about 30 lakh square feet of prime properties which are happy communities.
Latest offering, My Home Jewel, is a never before project in Hyderabad, with 2,016 flats.
Whereas, My Home groups all previous projects put together occupy a built up area of 30
lakh sft, My Home Jewel, truly a monumental project itself coming up in 31.5 lakh square
feet of built up area.
My Home Power Ltd
My Home Group entered into the power sector by acquiring naphtha based CCGT plant
in 2000 which later converted into a biomass based conventional plant. Over the years the
company has achieved excellent operational results and today it has achieved the
distinction of being a debt free company. The company is amongst few companies in the
country

to

achieve

100%

carbon

credit

approved

by

UNFCCC

Another feather in the cap of My Home Power is the establishment of My Home Power
Consultancy Services Limited in 2005. Today the company has clients like Visaka

24

Industries Limited , Ramky Pharma city Limited, Orissa Sponge Iron Limited, Aurobindo
Pharma and Amreli Power Projects Pvt. Limited to name a few. This is apart from the 15
MW captive Power Plant of MHIL and its 60 MW plant under implementation.
What is heartening is the fact that several assignments are in tech pipeline for the
company and most of which are from other states. In short it has become a pan-India
power consultancy company and has its sights trained on the neighbouring countries as
well.
Under the leadership of Dr. Rameswar Rao Jupally, My Home Industries Limited
(MHIL) has grown from strength to strength to its current annual capacity of 5 million
tonnes.
MHIL is a joint venture with CRH Plc, Ireland, the international leader in building
materials, operating in 33 countries across 3500 locations. Sharing the CRH vision of
excellence, MHIL has earned a reputation for quality, reliability and energy efficiency for
which it has bagged number of prestigious national awards. MHIL is today one of the
fastest growing cement companies in India.At MHIL, quality monitoring begins right
from the raw material, and is carried through to the finished product. Online X-Rayanalyzers ensure quality at every stage of manufacturing. And a fuzzy logic system
operates all the equipment with total automation to ensure consistent quality. In
recognition of its quality drive, MHIL has been awarded the ISO 9001-2000 certification.
With three manufacturing units located at Mellacheruvu in Andhra Pradesh, MHIL
produces 3.20 million tonnes of cement per annum. In addition, MHIL has set up a
cement grinding unit at Mulakalapalli, Andhra Pradesh, with a capacity of 1.50 million
tonnes per annum.

25

In a short time, Maha Cement has achieved phenomenal success in the whole of south
India as well as Maharashtra, Orissa, Bihar, Jharkhand, Chattisgarh, and West Bengal.
The next few years will see MHIL leave its mark all over India with a projected annual
capacity of 10 million tonnes.
Maha Cement is marketed through a wide network of over 2600 dealers spread all across
south India, Eastern India and Maharashtra. The MHIL marketing team delivers
exceptional services to its customers through 16 regional offices, 64 sales depots, and a
dedicated fleet of over 1200 trucks and bulk loaders.
Maha Cement has various brands under its name - Maha Cement (OPC 43 Grade), Maha
Gold (OPC 53 Grade), Maha Shakthi (PPC), Maha Shakthi (PSC). All of which surpass
the standards set by Bureau of Indian Standards (BIS).

Units & Capacity :

The company has three units located at Mellacheruvu village, ,Kodhada Taluka,
Nalgonda District . A.P.Unit I was set up in the year 1998 with a capacity of 1.98 lakhs
MT per annum.Over a period of time the capacity was increased to 8.25 lakhs MT per
annum.Unit=II was established in 2002 with a capacity of 6.60lakh MT per annum and
the same was increased to 10.15 lakhs MT per annum by modifications and additions to
plant & machinery and other assets and also by production of blended cement. Unit III
with a capacity to manufacture 13.60 lakhs MTs of cement per annum was set up during
March 200.Thus, the total capacity of 3 units works out to 32.00 lakh MTs per annum.

Types of Cement:

26

The company manufactures the products :

1.Ordinary Portland Cement(OPC)
43 grade
53 grade
2.Portland Pozzolana Cement(PPC)
Maha cement offers a product line to suit for every need.
Maha Gold 53 grade high strength cement
Maha Shakthi- Quality blended cement (PPC)
Maha Cement-43 grade High strength cement.

My Home Cement Industry Ltd In India use Thermoteknix

High Temperature Infrared Cameras

My Home Cement Ind. Ltd have just commissioned Thermoteknixs WinCem 3D Graphic
Kiln Shell Scanning System at their Mellacheruvu Village Nalgonda Dist Plant. The
newly installed system comprises the Thermoteknix Centurion Kiln Linescanner working
alongside.

WinCem 3D Graphic Software.

27

Centurion Kiln Shell Scanner

WinCem is established throughout the industry as the leading kiln scanning system. It
provides three dimensional live displays of kiln shell temperatures, brick work and
coating with virtual reality graphics presenting the kiln from any angle, position or
distance. My Home Cement presented a greater challenge in that that the companys Head
Office in Hyderabad needed to be able to view the scan, live, with the data being
transmitted on-line from the kiln some 200km away from the plant in Nalgonda District.
The commissioning, which was carried out by Thermoteknix Indian agents SB
Engineers at the beginning of September, involved the system being made available via
an internet connection based in the Hyderabad Office. Real time kiln shell scan data is
now being relayed live from the plant to My Home Cement HQ, meaning that at HQ,
information can be viewed, monitored and assessed at any time.
It is now possible for decisions to be made and discussed between sites and HQ based on
up-to-date live data, as and when necessary, saving time and money for My Home
Cement. WinCem 3D Graphics alarms and outputs give a configurable, flexible user
interface ensuring continuous coating monitoring for all kiln conditions and improved
control via client-server fully networked software with multiple screen display
capabilities. WinCem is the only scanning system on the market to provide data as it is

28

scanned from the kiln during each revolution of the kiln. Other systems update at the
end of every revolution.
My Home Cement Industries Ltd manufactures MAHA cement and is headed by
Chairman Dr. J. Rameswar Rao, a well known industrialist who attended the
commissioning and was delighted with the capabilities of the system.
SB Engineers was established by Mr Subodh Bhatt in 1991. The company represents
manufacturers both from within India and overseas and markets a range of industrial
products and services. They have a strong established presence in the Indian Cement
Industry and their technical expertise and after sales service are second to none.

My Home Industries, a cement sector company is planning to take up an

expansion programme at its unit located in Mellacheruvu Village in Nalgoda district of
AP. The project involves expanding the clinker capacity from 1.58 to 2.48 MTPA and
Cement production from 1.90 to 3.30 MTPA. A 15 MW captive power plant is also being
planned as a part of the project. Dry process pre-calcinatory technology will be used for
manufacturing cement. Continuous emission monitoring will be carried out in kiln/raw
mill stack and clinker cooler stack. Water spray and dust suppression system will be
provided to control fugitive emissions ESP in clinker cooler, bag house in raw mill/kiln
and bag filters in coal mill, cement mills, crusher. Ash generated from the 15 MW coal
based thermal power plant will be utilized in the cement plant for the manufacture of Port
land Pozzolona cement. The project is estimated to cost Rs. 2,030 million. As of June
2006, the project has obtained clearance from ministry of environment and forests.

MY HOME INDUSTRIES AIMED IN HYDERABAD:

29

Hyderabad: Aimed at gearing up to next boom in infrastructure and realty sectors in the
country, the Hyderabad-based My Home Industries Ltd plans to more than double its
capacity to 10-million tons in five years, said its chairman and managing director, J.
Rameswar Rao.
My Home, one of the largest cement manufacturers in Andhra Pradesh, now has a
capacity of 4.7-m tons. Rao said the company plans to initially double the capacity of its
slag cement facility to 3-m tons at Visakhapatnam to cater to markets in the Eastern India
with high demand for slag cement.
The company is also considering a plan to set up at least a 2-m ton Greenfield plant in the
borders of Andhra Pradesh and Karnataka to cater to down South markets, involving an
investment of some Rs1,000 crore.
Admitting that the South Indian cement market now has excess capacities, leading to
pressure on margins, he said, We are preparing for a long-term game and gearing up with
capacities to meeting future demand.
In a bid to spread its geographic presence both for manufacturing and marketing, My
Home is also considering a plan to enter the Central Indian market with a manufacturing
facility of 2-m ton at Rs1,000 crore investment, said Rao. Though the preference would
be on setting up Greenfield projects, the company is not averse to acquisitions with good
opportunity, he said.

My Home Industries plans Rs 400-cr investment

30

My Home Industries Ltd is investing Rs 400 crore in the expansion of its cement
plant near Visakhapatnam, development of two support rail links for transport of raw
materials and cement, and in setting up a 60 MW captive power project near the
Nalgonda project site.
The company, along with its Irish partner, CRH plc, is scouting for acquisitions in the
western region, where there continues to be shortage of cement supply, as against excess
production in the southern market.
The Chairman of My Home Industries, Mr J. Rameswar Rao, said the company is
augmenting capacity at the Vizag plant, which will take the total installed capacity to
about 4.5 million tonnes.
Faced with a severe power supply glitch in 2009-2010, which hampered cement
production in the State, the company has embarked on setting up a 60 MW captive power
plant with an outlay of Rs 250 crore.
This project will be ready for commissioning by December 2011. When completed, this
will take the installed capacity of the company's captive capacity up from 20 MW now to
80 MW. We will consume 50 MW at two sites. This would also bring down the cost of
power by more than Rs 24 crore/annum. The cost of generation from the coal plant will
be about Rs 2.70 a unit as against nearly Rs 4 a unit from the State grid. In addition, we
will have the option to sell the excess power of 30 MW as merchant power, he said.
Speaking to Business Line, Dr Rao said that the company had offered 50 per cent stake to
CRH plc for Rs 1,600 crore in 2008 and has been a debt-free company over the last few
years. All the expansion projects, including the power project, are being handled through
internal accruals. The company closed last fiscal with revenues of Rs 920 crore in 2009-

31

2010, which was lower than Rs 1,110 crore registered a year before, due to pricing
pressures and lower production due to power shortage.
Over the last 15 years, we have seen different cycles of cement business and continue to
be upbeat on the prospects. Therefore, we are looking at projects in the West and North
for acquisition, he said.
Along with the expansion of the cement unit, and setting up the power project, the
company is investing in setting up two rail links, one for the Vizag project and another for
the Nalgonda project with an outlay of Rs 20 crore. These will be ready by next year, he
said.

My Home Cement Industries Ltd neighborhood businesses

International Air Comforts : Air Conditioner - Dealers, Begumpet

Ispace Consulting & Recruiting : Educational Consultants, Ameerpet

Jaydurga Furnishings : Carpet - Dealers & Manufacturers, Ameerpet

Jersey : Milk Products, Begumpet

THEORETICAL FRAME WORK

32

Sales & Promotion:

The company has operated at optimum capacity utilization during last 4 years The
details of production and sales during the last 4 years are ,

The Companys Cement is marketed under the brand MAHA which is highly
reputed in south India. The company has established very wide market networth with 180
dealers and 12 regional offices in the states of andhrapradesh , tamilnadu ,
Karnataka,orissa maharastra kerala and Chettisgarh. The brand MAHA cement has been
accepted and acknowledged as premium brand and hence the demand for the same is
continouously increasing.

PROMOTION :
Promotion is persuasive communication. It is a highly visible element in the
marketing mix. It tells the target customer product, price, and place. It tells also known as
marketing communication. Promotion consist of activities that facility exchanges with
target customers through persuasive communication to stimulate demand.

According to Professor Philip kotler:Promotion includes all the activities the company undertakes to communicate
and promote its products to the target market. In modern marketing the question is not
whether to promote but rather what to say, to whom and how often. A good product, an
attractive price and an accessible distribution must be supported by an effective
promotion to satisfy customer needs. Promotion activity include advertising, sales

33

promotion, public relation, and direct marketing. Promotion can also be viewed as the
management of the customer buying process of pre-purchase, purchase and post purchase.

FUNCTION OF PROMOTION:Promotion is a tool to influence target customer and to face competition. It

performs four functions: Information
Persuasion
Reminding
Reinforcing

PROMOTION MIX:
The promotion mix is the combination of advertising, public relations, sales
promotion, personal selling and direct marketing tools that help achieve marketing
objective

1. ADVERTISING: Advertising in any paid form of nonpersonal communication by an identified

sponsor to promote product.

2. PUBLIC RELATION: It refers to programmes designed to promote or protect a company image and
products. Publicity is any unpaid form of communication through media about an
organization, its policies and products.

34

3. PERSONAL SELLING: personal selling is personal communication with customers to persuade them to
buy products. It permits interaction and relationship building. Sales persons provide
feedback about the market, competitors and customers.

4. DIRECT MARKETING: It is persuasion by manufacturer to specific customers. The tools of direct

marketing are: 1. Face to face selling 2. Mail 3. Catalogue marketing 4. Telephone 5. Email

5. SALES PROMOTIONS: Sales promotion has been increasing in popularity as a tool. Marketers are using it
aggressively. Sales promotion refers to short term incentives to stimulate demand. It is
used to create a stronger and quicker purchase response. It can be directed at consumers,
middleman and sales personnel. It supplements advertising and facilitates personal
selling.

Definitions:
According to Professor William J. Stanton:- Sales promotion refers to
demand stimulating devices designed to supplement advertising and facilitate personal
selling.
According to professor Philip kotler:- Sales promotion consists of diverse
collection of incentives tools, mostly short term, designed to stimulate quicker and or
greater purchase of particular product /services by consumer or trade.

35

NATURE OF SALES PROMOTION:

It is short term

It provides incentives

It aims at quicker response

It is directed at target audience

OBJECTIVE OF SALES PROMOTION:

Objective for consumer promotion:o Encourage greater purchase volume
o Attract new customer
o Introduce new products

Objective for trade promotion:o Carry and push new item

o Increase resellers inventories
o Attract new channel members
o Offset competitive promotion
o Better store display

Objective for sales force promotion

o Motivate sales force
o Support new product

36

What is sales promotion?

Sales promotion is any initiative undertaken by an organisation to promote an
increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered
by the other elements of the marketing communications or promotions mix). Sales
promotions are varied.
Often they are original and creative, and hence a comprehensive list of all
available techniques is virtually impossible (since original sales promotions are launched
daily!). Here are some examples of popular sales promotions activities:
(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating
promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to
manufacture, if you sell two for $1, you are still in profit - especially if there is a
corresponding increase in sales. This is known as a PREMIUM sales promotion tactic.
(b) Customer Relationship Management (CRM) incentives such as bonus points or
money off coupons. There are many examples of CRM, from banks to supermarkets.
(c) New media - Websites and mobile phones that support a sales promotion. For
example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging,
whereby a consumer would enter the code into a dynamic website to see if they had won
a prize. Consumers could also text codes via their mobile phones to the same effect.
(d) Merchandising additions such as dump bins, point-of-sale materials and product
demonstrations.

37

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each
sandwich purchase. Once the card was full the consumer was given a free sandwich.
(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their
customers with the latest low-price deals once new flights are released, or additional
destinations are announced.
(g) Joint promotions between brands owned by a company, or with another company's
brands. For example fast food restaurants often run sales promotions where toys, relating
to a specific movie release, are given away with promoted meals.
(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to
potential consumers at supermarkets, in high streets and at petrol stations (by a
promotions team).
(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on
The Internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the less
well off farmers and producers, are becoming more popular.
(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

METHOD OF SALES PROMOTION:

Sales promotion methods differ according to the target audience. They can be
directed at consumer promotion, trade promotion, and sales force promotion
(a)Consumer promotion method

38

Free sample
o Coupons
o Rebates
o Premium
o Price off
o Contests
o Display/Demonstration
(b)Trade promotion methods
Free goods
o Allowance
o Prices-off
o Sales contest
o Gift items
o Credit facilities
o Trade show
(C)Sales contests
o Trade shows and conventions
o Gift items
o Promotional kits
o Bonus and commissions

FUNCTIONS OF SALES PROMOTIONS:

Sales promotion is a short-term marketing strategy designed to achieve a specific

purpose. Sales promotion differs from advertising in that its intent is to create a
sense of urgency to encourage immediate action as opposed to building sales or a
brand over a long period of time. Sales promotion may take the form of a
temporary price reduction or a campaign to introduce an item.

39

Production Differentiation

Use of sales promotion techniques helps to differentiate your products from

those of your competitors. This is especially beneficial is your products offer
essentially the same features and benefits as others on the market. A method often
used to make products stand out is to offer them at a slightly reduced price for a
short period of time.

Attract Customers

Sales promotions are used to attract customers during periods of slow sales. For
example, if you offer a seasonal product such as barbecue grills, by running a
promotion in the middle of winter where the price is reduced by 50 percent may
encourage people to buy a grill at a time where it might not otherwise cross their
mind.

Increasing Market Share

Sales promotions can lead to an increase in market share for the manufacturer.
The promotion will likely increase your sales by taking away sales from your
competitors. As a result, your market share will increase while your competitors'
share decreases.

New Product Introduction

Retailers can use sales promotions to introduce a new product. By offering the
new item at a reduced price and placing a "new item" sign in front of it, they can
persuade customers to give the new product a try. At the same time they can
discontinue a slow-moving item in the same category by marking it down and
40

placing a "reduced for quick sale" sign in front of it. This technique has the effect
of keeping the category fresh while freeing up needed shelf space.

Inventory Control

Sales promotion can help retailers limit out-of-stock situations by allowing them
to purchase large quantities at a reduced price. This can be especially
advantageous to the retailer for items that are popular sellers that can be difficult
to keep on the shelf.

Advertisement:

The pivotal aspect of any management effort is the development of meaning full
objective. In the same way the main objective of advertisement is to help raise the level of
sales. The increase in sales is due to many factors, out of which advertisement is one and
it is difficult to isolate its contribution to the increased sales. The other factors include
price, Distribution, Packaging, Product Features, Competitors action and changing buyers
need and taste.
A basic communication task in which advertisement excels is to create awareness
of a product. Awareness can be particularly needed when the global is to stimulate a trial
purchase to consumer who is already using some other brand. It is recognized that
advertisement is mass, Paid communication that is intended to create awareness, impart
information, develop attributes or induce action.
Advertising is seen as influencing consumer attitudes and purchase behaviors. An
advertisement exposure can increase brand familiarity, communicate brand attributes and

41

benefits and develops an image and personality for the brand, associate specific feelings
with the brand and directly induce action.

Definition:
Advertisement is any paid form of in personal presentation and promotion of
ideas, goods or services by an identifies sponsors.

Price:
the price of a product is perhaps the single most important factors, which affects
the sales. The fixation of price can either increase the sales and demand or else decrease.
The law of demand says that if price of a commodity increases then the demand of that
commodity decreases and vice verse there fore for good marketing price mix must be
appropriate for that market segment that suits the consumer requirement and satisfaction.

Distribution:

A marketing channel or a distribution channel is a path traced in the direct or

indirect transfer of the product from the producer to the ultimate customer.
A marketing channel performs the work of moving goods from producers to
consumers. It overcomes the time, place, possession gaps that separates gods and services
from those who would use them.
A manufacturer can have his own distribution channel and supply the products
directly to the consumers. But this can be done by manufacture who can afford to
establish their own

42

The distribution channel

It is defined as a chain of intermediaries, each passing the product down the chain
to the next organization, before it finally reaches the consumer or end-user. This process
is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains
will have their own specific needs, which the producer must take into account, along with
those of the all-important end-user.
A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just
as important for moving a service from producer to consumer in certain sectors, since
both direct and indirect channels may be used. Hotels, for example, may sell their
services (typically rooms) directly or through travel agents, tour operators, airlines, tourist
boards, centralized reservation systems, etc.
If we mention in a single sentence the distribution channel is nothing but it is a process of
transfer the products or services from Producer to Customer or end user.
There have also been some innovations in the distribution of services. For example, there
has been an increase in franchising and in rental services - the latter offering anything
from televisions through tools. There has also been some evidence of service integration,
with services linking together, particularly in the travel and tourism sectors. For example,
links now exist between airlines, hotels and car rental services. In addition, there has been

43

a significant increase in retail outlets for the service sector. Outlets such as estate agencies
and building society offices are crowding out traditional grocers from major shopping
areas.

Distribution Network
The marketing flow in the marketing channel of Maha Cement

Maha Cement Company distributes the cement both directly and through
middleman. It has its own sales branches to market its product. The sales branches are
situated in different part of the states and country so that the branches can have friendly
relation with the dealers. The various sales branches have their own go downs to store the
product Channels and it is not only the affordability that counts, but the economic
feasibility should be properly checked.

M
A
N
U
FA
C
T
U
R
E
R

Customers
Governments /
Contractors /
Dealers
Consumers

Dealers Sales

Manufacturer

Dealer

Consumer

Sales Depot.

44

Channels of Distribution

Direct Channels

Indirect Channels

01. Mail Order Business

01. M W R C
(Manufacturer, Wholesaler,

Retailer,

Consumer)

02. Chain Stores

02. M W C
(Manufacturer,
Wholesaler, Consumer)

03. His Own Depot

03. M R C
(Manufacture, Retailer,
Consumer)

These are located in 19 cities in 7 states:

The following are the sales branches

45

Various channel of distribution:

The most common route used for bringing the products in the market from
producer to consumer as fllows.

1.

MANFACTURER-CONSUMER-USER CHANNEL(DIRECT SALE):

There are three alternatives in direct sale to consumers :

mail order selling

house to house convassing.

Sale through retail shops of manfacturer.

This is a shortest channel a product can follow to the market. Bussiness goods
directly sold to the bussiness buyers.

2.

MANFACTURE_ RETAILER-ULTIMETE CONSUMER:

This channel option is preferable when buyers are large retailers, e.g., a
department store, discount house, chain stores, supermarket, big mailorder
house, or co-operative stores.

3.

MANFACTURER-WHOLESALER-RETAILER CONSUMER:

This is a normal, regular and popular channel options used in grocieries,

drugs, drug goods etc. it is suitable for a producer under the given
conditions.

he has a narrow product line.

he has a limited finance.

wholesalers are specialised and can provide strong promotional

support.

46

products are durable and not subject to physical deterioration or

fashion changes.

4.

MANFACTURER-AGENT-WHOKLERSALER-RETAILER CONSUMER:

In this channel the products usees the servixce of an agent

middleman such as a sole selling agent, for the initial dipersion of goods.
the agent may run distribute to the wholesalers.

Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales
and service support. Motivating the owners and employees of the independent
organizations in a distribution chain requires even greater effort. There are many devices
for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a
better margin, to tempt the owners in the channel to push the product rather than its
competitors; or a compensation is offered to the distributors' sales personnel, so that they
are tempted to push the product. Dent defines this incentive as a Channel Value
Proposition or business case, with which the supplier sells the channel member on the
commercial merits of doing business together. He describes this as selling business
models not products..
Depots: All Together 12 Maha cement Depots

RESEARCH
The

research

systematically
research

solve

problems.

the
The

01.

Nalgonda

02.

Vishakapatnam

03.

Hyderabad

04.

Adilabad

05.

Nizamabad

06.

Vijayawada

07.

Nellore

08.

Chennai

09.

Bangalore Site

10.

Chandrapur

METHODOLOGY:
methodology is the way
systematically
main

solve

objective

of

the
the

47

product was to know the market condition of Maha Cement and to study the sales
promotion activities undertaken by various cement companies. For this, right at the
beginning the research plan was prepared. This includes all the detail of how to go about
research work of Maha Cement.

RESEARCH PLAN :
Definition of research problem
The research problem can be defined as follows
1

1. `What are the cement being used by various customer in the region of
Hyderabad and what are their expectation from the cement.

2. What the market trend is of cement and brand awareness of Maha Cement.

DATA COLLECTION:
The descriptive nature of research necessitates collection of primary data from
retailers through market survey, personal interview technique was used and interview
were conducted through structured questionnaire the question were asked in prearranged
manner. The market research was conducted over a period of 60 days. Data was tabulated,
analyzed and suggestion and recommendation were given.

RESEARCH INSTRUMENTATS:
The Research instrument chosen for conducting the survey was structured
questionnaire was prepared as show as in the annexure. The questionnaire includes open
ended as well as close ended question, few open ended question were included to obtain
the perception of the retailers. The questionnaire designed and a pilot survey was made
with the questionnaire and then changes were made accordingly with the questionnaire.

SAMPLE PLAN :
A sampling technique was chosen for the study was Random Sampling Technique.
This is the most common method of selecting the sample. This is because the retailers are

48

localized in different part of the marker a group of retailers are chosen are random from
large group. It gives all retailers in a group and equal chance of being selected for the
purpose of the survey.
CONTACT METHOD:
Both personal and telephonic interview methods were used for conducting the
market survey. Personal interview had the benefit one to one communication between the
researcher and the respondent. If the respondent is having any doubt or queries in their
mind, they can get heir doubts clarified from the researcher on the spot and so superior of
data was collected from the survey was collected from the survey.
Tele interview was conducted with the structured questionnaire. Tele-interview
was less costly and less time consuming but the data could not be collected in detail from
the respondents. Also any doubt or queries of respondent could not be clarified.

ANALYSIS AND INFORMATION:

Detailed information was collected for the project marker survey for retail
marketing and sales promotion activities of Maha Cement for the area of Hyderabad
market. The information was collected by visiting the retailers of cement present in
Hyderabad market. The interview of retailer taken in a friendly atmosphere so as to
encourage them to give right information, without any hesitation. Because of some
inherent limitation of telephonic interview, the method of personal interview was mostly
used.

ANALYSIS:
The analysis of the collection information was made in scientific manner.
Different manner rank was given to each alternative of particular questions, in the
questionnaire. A particular rank was given in the following manner,
o Rank- 1 For the most favorable alternative
o Rank- 2 For the moderately favorable alternative

49

o Rank- 3 For unfavorable alternative

o Rank- 4 For most unfavorable alternative
o Rank- 5 Unfavorable
To come at the conclusion, total of each alternative of all the sample size retailers
was made. Thus the sum of an alternative having least score considered to be most
favorable. In this manner, result is prepared for various important parameters of the
survey. With the help of results so obtained, the findings are recorded in the form of
graphs.
The market of cement Changes as the area changes. The demand for
particular cement for particular cement is much less. This is because of the crazier Trend
of particular market.
Thus the demand for the cement is not that price sensitive. Price is not the criterion for
selection of rejection of particular brand is adapted on the type of application of cement
and the brand name in market. Thus the awareness among the customers about the
particular cement plays a vital role.
The major types of customers are the builders and masons. The individual
customers are there, but their demand is not more. The customers are ready to give
slightly high price, but he wants quality cement, thus he is quality conscious. The
customer perceives quality of cement as good quality because of effective marketing. So
effective marketing is necessary.
The retailer in the marker plays an important role in the sale of the cement. They
have some expectation from the cement companies; they expected credit facility, good
sales promotion schemes, and timely delivery of cement, etc Among the plastic bag and
paper bag of cement, Customer prefer bag. This is because the paper bag prevents it from
moisture and quantity remains intact.
50

In brief cement market is sensitive to marketing. The better & more the marketing the
more is possibility of sales. The observations and findings of the market survey about
market share and sales promotion activities are given at the next stage, in the report.

DATA ANALYSIS PRESENTSTION AND

INTERPRETATION
51

1.Which brand do you prefer most?

ANALYSIS, PRESENTSTION AND INTERPRETATION 1:Dealers brand preference:COMPANY
Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

NO OF DEALERS
24
60
36
36
14
12
8
10
200

PERCENTAGE
12
30
18
18
7
6
4
5
100

Analysis and Interpretation:Obviously, maximum dealer, which are about 78 percent, come with Konark, Acc,
Ultratech or Maha Cement, And 22 percent either confused or dependent on seasonally
available brand for the Cement

2.WHICH BRAND DO YOU STORE?

ANALYSIS, PRESENTSTION AND INTERPRETATION 2:-

52

Dealers preference for the storage of cements brand:COMPANY

Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

NO OFDEALERS
40
50
22
24
18
24
12
10
200

PERCENTAGE
20
25
11
12
9
12
6
5
100

Analysis and Interpretation:Most of the dealers prefer to store either Maha Cement or Konark. 20% of the
dealer choice is Maha Cement where as 25% of the dealers choice is Konark. Remaining
35% of the dealers inclined towards the Acc, Ultratech and Century. Remaining 20% of
the dealer gives equally importance to the Ambuja, Duncan and Grasim.

3.Which brand does your customer prefer?

ANALYSIS, PRESENTSTION AND INTERPRETATION 3:-

53

Customer inclination towards the cement brand:COMPANY

Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

NO OF DEALERS
24
60
36
36
14
12
8
10
200

PERCENTAGE
12
30
18
18
7
6
4
5
100

Analysis and Interpretation:78% of the customers are brand loyal. And 22% of the customers are price
sensitive they go with that brand which has fewer prices. In case of brand equity Maha
Cement lies in No. four.

4.What is the Avg. monthly sale of different brands of cement?

ANALYSIS, PRESENTSTION AND INTERPRETATION 4:Average Monthly sale of cement:54

COMPANY
Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

CONSUMPTION
1365
2651
1548
1890
640
750
625
685
10154

PERCENTAGE
13
27
15
19
6
7
6
7
100

Analysis and Interpretation:This data show that the maximum consumption of cement brand in the region of
Hyderabad is Konark cement which is about 26% of the total sales of the cement. Maha
Cement is on the no. fourth position which is about 13% of the total sale of cement

5.Rank the companies stockiest on the basis frequency of making

personal visits & ph calls.

55

ANALYSIS, PRESENTSTION AND INTERPRETATION 5:Dealers rank the companies stockiest on the basis of frequency of making personal visits
COMPANY
Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

TOTAL OF RANK
562
656
430
450
515
380
420
470
3883

Analysis and Interpretation:From this data we can conclude that only the weak brands stockiest are preferred
by the retailers. Strong brands stockiest are not given the proper consideration towards the
retailers. All the giant brands are ranked as 3 or 4 where as all the loose brands retailers
are ranked as1or2.

6.Which Companies stockiest inform you about the change in the

market price faster?
ANALYSIS, PRESENTSTION AND INTERPRETATION 6:-

56

Company that provides information to the retailer about the price change in the near
future:COMPANY
Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

NO OF DEALER
15
10
21
22
26
38
36
32
200

Analysis and Interpretation:More than 100 of retailers said that Century or Grasim or Duncan provide the
preinformation about the future price change. This helps them to take precautionary
action against the future happenings.

7.How much credit in days do you enjoy from the stockiest of following
companies?
ANALYSIS, PRESENTSTION AND INTERPRETATION 7. :Credit period facilitate by the companies stockiest to the retailer
57

COMPANY
Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

NO OF DAYS
15
10
21
22
26
38
36
32
200

Analysis and Interpretation:The entire market leaders (Maha Cement, Konark, ACC, Ultratech) of cement
industries provides relatively less credit period (i.e. less than 50 days) to their stockiest
due to which the stockiest are not able to provide the sufficient credit in days to their
retailers. Where as the newly entered cement brand provides sufficient credit in terms of
quantity as well as in days to their retailers. Thats why their growth rate is relatively
high.

8.Maximum profit you get out of selling various brands rank them?
ANALYSIS, PRESENTSTION AND INTERPRETATION 8:Maximum share of profit of retailers comes through the selling of the cement:-

58

COMPANY
Maha Cement
Konark
Ulteratech
Acc
Ambuja
Century
Grasim
Duncan
Total

PROFIT
35
45
38
37
14
17
8
6
200

Analysis and Interpretation:Only 35 retailers said that their maximum profit comes through Maha Cement.
Similarly 45, 38, and 37 retailers said that their maximum profit comes through Konark,
ACC, and Ultratech respectively.

9.Rank sales promotion activities according to their effectiveness?

ANALYSIS, PRESENTSTION AND INTERPRETATION 9:Retailers belief towards the activity that influences sales of the cement:-

59

ACTIVITIES
Shops naka and mason
Gift
Incentive
Hoardings
Others
Total

RANKS
14
37
49
66
34
200

Analysis and Interpretation:Sixty six retailers out of two hundred which is 33%, beliefs that Hoardings
influence the sales of the cement. Incentives also play vital role in the promotion of the
goods.

10.Rank sales promotion activities according to their effectiveness?

ANALYSIS, PRESENTSTION AND INTERPRETATION 10:Retailers preference towards the gift:-

60

GIFTS
Share
Tour
Gold
White Gold
Cheque
others
Totals

NO OF DEALERS
14
40
39
12
29
66
200

Analysis and Interpretation:Most of the retailers do not want to say about the gift. But after asking again and
again their preference are out of the available optioned e.g.:-TV, Camera, cycle, trophy,
etc. Out of two hundred 40 preferred tour, 39 preferred gold, 29 preferred cheque, 14
preferred share and 12 preferred white gold.

11.Give your raking to the cement companies in their sales promotion

activities
ANALYSIS, PRESENTSTION AND INTERPRETATION 11:-

61

Retailers rank the cement company on the basis of the sales promotional activities:Company

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total (Retailers)

Maha Cement

20

40

80

25

35

200

Konark

60

55

47

38

200

Ultratech

20

25

32

78

45

200

Acc
Ambuja
Century
Grasim
Duncan

20
12
13
50
30

71
14
45
68
62

57
45
68
58
82

27
68
52
24
26

25
61
22

200
200
200
200
200

Analysis and Interpretation:From the interpretation of the data, we come to know that Konark and ACC are on
no.1 and no.2 respectively. Maha Cement is on no.3. Because 30% of the retailers believe
that Maha Cement is on no three. Century, Grasim, and Duncan are making extra effort to
penetrate the market. Every retailer mentioned their name and mentioned their
considerable effort.
12.What is the general price gap (BP-RP) between the following companies?
ANALYSIS, PRESENTSTION AND INTERPRETATION 12:-

62

The profit on per bag of cement:COMPANY

MAHA CEMENT
KONARK
ULTRATECH
ACC
AMBUJA
CENTURY
GRASIM
DUNCAN

PRICE GAP ON PER BAG

6
5
6
6
7.5
8
10
10

Analysis and Interpretation:Lafarge charges competitive price to the customer. Some of the company charges
premium price like OCL where as some of the brand has very less price like Grasim,
Cemtury and Duncan. Price of Maha Cement is always equal to the price of Ultratech,
ACC.

13.Rank the companies on the basis of their transportation facilities?

ANALYSIS, PRESENTSTION AND INTERPRETATION 13:-

63

Companies are ranked on the basis of the transportation facility provided by them:Company

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total (Retailers)

Maha Cement
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan

70
23
40
20
15
85
80
95

65
25
70
67
14
78
75
62

28
15
65
90
45
37
38
43

25
72
25
20
90
0
7
0

12
65
0
3
36
0
0
0

200
200
200
200
200
200
200
200

Analysis and Interpretation: Transportation facility is a very vital factor for a brand to be successful in the
market; Maha Cement has proved itself in this area as they are having the best reach in
the urban area not in the rural area.

14.Rank the companies on the basis of their cement delivery time?

ANALYSIS, PRESENTSTION AND INTERPRETATION 14:-

64

Companies are ranked on the basis of the cement delivery time:Company

Maha Cement
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan

Rank 1
114
91
0
82
14
42
11
21

Rank 2
53
82
82
78
25
12
24
37

Rank 3
33
27
91
39
97
83
45
49

Rank 4
0
0
12
1
61
42
21
68

Rank 5
0
0
15
0
3
21
99
25

Total
200
200
200
200
200
200
200
200

Analysis and Interpretation:Maha Cement is quite ahead in the race in regards to the delivery option, as many
retailers says that a small quantity of cement bags are not delivered by most of the
company on time, they say that ar least you need carry 200 bags and so on, but Maha
Cement are willing to accept and delivery any amount of bag at any time.

15.Rank the company on the basis of their Marketing Representatives frequency of

visit.
ANALYSIS, PRESENTSTION AND INTERPRETATION 15:-

65

Company
Maha
Cement
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan

Rank
1
85

Rank
2
75

Rank
3
40

Rank
4
0

Rank
5
0

Total no of the retailers

78
45
47
23
62
23
65

65
66
52
45
68
42
74

42
74
41
65
47
37
54

15
15
51
25
23
47
0

0
0
9
42
0
51
7

200
200
200
200
200
200
200

200

Analysis and Interpretation:Maha Cements marketing representatives are too much concern towards the
customers welfare. So they visit almost retailers ones in a week. Where as other
companies marketing representative visit the counter only twice in a month.

FINDING

66

On an average almost all the employees are satisfied the way rewards and
recognition is awarded to them. That shows the company is offering awesome
benefit package to the employees.

Only 60% of the employees are of the view that they are having long term job
security it is a good percentage but still 25% are in different. So company should
try to win the faith of them.

A good and effective relationship among the employees and superiors is the sing
of trust and understanding which Maha Cement is witnessing as 75% of them are
satisfied with the relationship with superiors.

In Organization employee feels that they are allowed to participate in decision

making this reflects professionalism of the company.

Employees are given a chance to deal with problem situation; they are allowed to
approach their seniors for any problem situation. Most of the employees (90%) are
satisfied with problem solving mechanism available in the company.

Encourages, focuses on improvements achieved or possible; creates trust and

cooperation

Increases confidence in ability and potential of workers

Leaves person feeling 'helped' and inspired

It is based on observations, repeated if possible.

67

OTHER REASONS STATED BY RETAILER FOR BRAND

PREFERENCE:MAHA CEMENT :
1
o Better quality
o Good name in the market
o Timely available
o Immediately respond on the competitors strategy.
o Relatively less price.
o Better packaging
ULTRATECH
1
o Sells easily in the market the customer demand for them.
o Customer choice.
o Good name in the market as it carries the goodwill of L&T.
o High market awareness.
o Sells more
CENTURY
1
o Good relationship with the company people.
o

Price is low and affordable for people

Low price helps to sell easily.

Quality is good.

More profit selling the brand.

Good service and relationship

ACC
1
o

People ask for ACC.

Service is good.

Dhalai karne ke liye people ask for ACC.

Very superior quality cement as compared to others

68

Selling form the very first day the shop came in to being & sells
easy (shree ganesh traders, bhatagaon)

AMBUJA
o Customers preference
o Good cement, plastering work is good
GRASIM (Birla plus)
o Customers choice.
o Price is suitable as per customers pocket
o Rate & profit
o Good relationship with the people at Grasim.
o Birla is a very renowned name so people trust it.
DUNCAN
o Rate & profit
o Price is suitable as per customers pocket
o Service is good.

PROBLEM FACED BY STOCKIEST:

1
o None of the stockiest had any complains about any brands, in

regards to the price,

transport, service etc

o Dispatch being closed at the start of the month is a trump card for them to play in
the market to push the sale.
o Stockiest are satisfied with the companies service.

RETAILERS REGRETS (Maha Cement):

o The stockiest occasionally inform about the price change in the market.
o They do not make personal visits to the counters frequently.

69

o Price should be stabilized in the market.

o Price stability in regard to the price set by the company as well as wholesalers (i.e. all
the wholesalers should have the same price offered in the market).
o The management should not interfere in the price offered by the counterperson to the
customers.
o They need price flexibility to shoot up the sale.
o Dispatch being closed every start of the month is a problem is a problem for them to
stick to the commitments made by them to the customers.
o Small quantity ordered is not furnished on time.
o Pressurize them for taking more quantity for more quantity for transportation facility.
o Maha Cement now does not give any gifts at the counters.

70

SUGGESTIONS

A very exhaustive study has been made, keeping in the essence of the objective of
the project. With the efforts put on the project a detailed analysis was conducted
and result were derived, based on the results and market response few suggestions
are discussed below

A Price fluctuation creates problems for retailers as the cannot keep the
commitments of price to customers

The reach to the rural market need to be strengthened

Transportation to rural areas need to be strengthened, a significant amount of

business is lost because of this.

At time it has been seen that the delivery commitments an the side of the company
is not prompt, this creates a bad name and again business is lost

On interviewing Dealers/Retailers the most important thing they said was about
the price flexibility, they want that the company should give them the price
flexibility to play in the market. (As the company has outlined that the price
offered by the company should only be offered to the customer, it should not
increased to the customer, it should not be increased or decreased).

The Brand Name Lafarge is quite difficult to be pronounced and remember, so it

should be made short and easy for the rural masses to remember like (L&T).

71

CONCLUSION :
To attain the objective of the project detailed information was collected from the
market of Hyderabad. The market research has revealed many facts and figures about the
cement scenario in the market prevailing.

In the market, Lafarge cement is well known brand of cement. This is the result of the
good quality of the Maha cement along with their effective marketing efforts, which
covers the whole market customers of Maha cement are highly satisfied with the use of it,
as they do not face any problem after using it.

There are seven major players in the market but the major completion is between the two
brands of cement. But because of good marketing efforts, Maha cement is able to grasp
some share of various other brands

The market survey undertaken shows that effective marketing efforts play a vital role in
creating the goodwill for the brand. The distribution channel of cement industry must be
well designed and made effective this ensures timely availability of cement to customers.

Good marketing creates good image i.e. brand building.

72

QUESTIONNAIRE
1. Which brand do you prefer most?

Maha

Konark

Ambuja Century Ramco

Acc

Ultratech Duncan Grasim

Acc

Ultratech Duncan Grasim

Acc

Ultratech Duncan Grasim

Cement

2. Which brand do you store?

Maha

Konark

Ambuja Century Ramco

Cement

3. Which brand does your customer prefer?

Maha

Konark

Ambuja Century Ramco

Cement

73

4. What is the Avg. monthly sale of different brands of cement?

Co.

Maha

Konark Ambuja Century Acc Ultratech Duncan Ramco Grasim

Cement
Tones/bags

5. Rank the companies stockiest on the basis frequency of making personal visits & ph
calls.

Co.

Maha

Konark Ambuja Century Acc Ultratech Duncan Ramco Grasim

Cement
Ranks

6. Which Companies stockiest inform you about the change in the market price faster?

Maha

Konark

Ambuja Century Ramco

Acc

Ultratech Duncan Grasim

Cement

7. How much credit in days do you enjoy from the stockiest of following companies?

74

Co.

Maha

Konark Ambuja Century Acc Ultratech Duncan Ramco Grasim

Cement
No. of
bags/days

8.. Maximum profit you get out of selling various brands rank them?

Co.

Maha

Konark Ambuja Century Acc Ultratech Duncan Ramco Grasim

Cement
Ranks

10. Rank sales promotion activities according to their effectiveness?

Activities
Shop Naka & Manson Meet
Gifts
Incentives
Hoardings
Others

Rank

11. Give your raking to the cement companies in their Sales promotion activities
Company
Maha Cement

Rank

Konark
Ultratech
Acc

75

Ambuja
Century
Grasim
Duncan

12. What is the general price gap (BP-RP) between the following companies?
Maha
Konark
Cement

Ambuja Century Ramco

Acc

Ultratech Duncan Grasim

13. Rank the companies on the basis of their transportation facilities?

Company
Maha Cement

Rank

Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan

14. Rank the companies on the basis of their cement delivery time?
Company
Maha Cement

Rank

Konark
Ultratech
76

Acc
Ambuja
Century
Grasim
Duncan

15. Rank the company on the basis of their Marketing Representatives frequency of visit.
Company
Maha Cement

Rank

Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan

BIBLIOGRAPHY
77

BOOKS
1
2

1. Research Methodology: C.K. Kothari

Wishwa Prakashan Darayaganj
New Delhi
2nd Edition-1995

2. Marketing Management: Philip Kotler

Prentice- hall of India Pvt. Ltd.
New Delhi-110001
8th Edition -1995

WEBSITE
1
2 1. www.lafarge-cement.co.in
3

2. www.google.com

3. www.ibef.org

4. www.msn.com

5. www.indianexpress.com

78