Académique Documents
Professionnel Documents
Culture Documents
Industrial Report
On
Marketing of
UltraTech Cement Ltd.
Submitted By
Name: Niraj S Pahwa
Class: SY BBA B
Roll No: 119
Submitted To
Gujarat Law Society Institute of Business
Administration
Preface
1
ACKNOWLEDGEMENT
2
Table of Content
3
Topic
Page No.
Basic Information
(Company Profile, Introduction to
Company, Brief History, Mission,
Vision, Values, Management Teams,
Awards & Achievements)
Finance
(Balance Sheet, P & L Account and
Capital Structure)
Corporate Social Responsibility
5-12
13-15
16-20
SWOT Analysis
21-23
Production Details
(Products, Production Process and
Production Plants in India)
Human Resource Department
(Introduction to HR and HR
Functions)
Marketing Department
(Introduction of Marketing,
Marketing Orientation)
Marketing Mix
(4 Ps of Marketing Product, Price,
Place and Promotion)
Segmentation, Targeting & Positioning
24-28
51-52
29-30
31-33
34-45
46-50
53
54
Basic Information
Company Profile
Introduction
5
UltraTech Cement, India's largest and the world's 10th largest manufacturer of
cement, one of India's largest producers of RMC and the nations's largest producer
of white cement has been instrumental in Indias rapid infrastructural growth. Its
state-of-the-art manufacturing facilities produce products and services that have
aided growth not only in urban areas but also in the rural interiors of the country.
UltraTech as a brand is an embodiment of strength and reliability. These traits
have inspired engineers to further use their imagination, which has resulted in a
more extensive realm of possibilities.
UltraTech Cement is part of the US $40 billion Aditya Birla Group. The company
has 22 cement plants in India with an installed capacity of 48.75 Million Tonnes
Per Annum (MTPA) with an expected increase of 10 MTPA by FY 13.
UltraTech Cement provides a range of products that cater to all the needs from
laying the foundation to delivering the final touches. The range includes Ordinary
Portland Cement, Portland Blast Furnace Slag Cement, Portland Pozzalana
Cement, White Cement, Ready Mix Concrete, building products and a host of
other building solutions. White cement is manufactured under the brand name of
Birla White , ready mix concretes under the name of UltraTech Concrete and
new age building products under the name of UltraTech Building Products
Division. The retail outlets of UltraTech operate under the name of UltraTech
Building Solutions.
UltraTechs parent company, the Aditya Birla Group, is in the league of Fortune
500 companies. It employs a diverse workforce comprising of 1,33,000 employees,
belonging to 42 different nationalities across 36 countries. A recent survey
conducted by Aon-Hewitt ranked the Aditya Birla Group as one among the Best
Employers in India. Another survey conducted by Aon-Hewitt, Fortune magazine
and RBL ranked the group as No. 4 in the world and No.1 in Asia Pacific among
the Top Companies for Leaders (2011).
Brief History
Milestone
1983 -Awarpur Cement Works Plant I 1987 Awarpur Cement Works Plant II 1993
-Jharsuguda grinding unit 1994 -Hirmi Cement Works 1996 -Gujarat Cement
Works Plant I 1998 -Andhra Pradesh Cement Works -Gujarat Cement Works Plant
II 1999 -Narmada Cement Company Limited acquired -Ratnagiri Cement Works
2000 Bulk cement terminals at Mangalore, Navi Mumbai and Colombo
2001 -Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to
15.3 per cent by October 2002 -Durgapur grinding unit
2002 -Grasim increases its stake in L&T to 14.15 per cent -Arakkonam grinding
unit -The Grasim Board approves an open offer for purchase of up to 20 per cent of
the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions
and guidelines issued by the Securities & Exchange Board of India (SEBI)
Regulations, 1997.
2003 The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (CemCo). Grasim decides to acquire an
8.5 per cent equity stake from L&T and then make an open offer for 30 per cent of
the equity of CemCo, to acquire management control of the company
2004 Completion of the implementation process to demerge the cement business of
L&T and completion of open offer by Grasim, with the latter acquiring controlling
stake in the newly formed company UltraTech 2006 -Narmada Cement Company
Limited amalgamated with UltraTech pursuant to a Scheme of Amalgamation
being approved by the Board for Industrial & Financial Reconstruction (BIFR) in
terms of the provision of Sick Industrial Companies Act (Special Provisions) Formerly known as Ultratech Cemco Limited. The Group's principal activities are
7
Mission
Vision
Values
Integrity
9
Commitment
Seamlessness
Passion
Speed
MANAGEMENT TEAMS
Board of Directors
Mr. Kumar Mangalam Birla, Chairperson
Mrs. Rajashree Birla
Mr. R.C.Bhargava
Mr. G.M.Dave
Mr. N.J.Jhaveri
Mr. S.B.Mathur
Mr. V.T.Moorthy
Mr. S.Rajgopal
Mr. D.D.Rathi
Mr. O.P.Puranmalka, Wholetime Director
Executive President & Chief Financial Officer
10
Mr.K.C.Birla
Chief Manufacturing Officer
Mr. R.K.Shah
Chief Marketing Officer
Mr. S.N.Jajoo
Chief People Officer
Mr. C.B.Tiwari
Company Secretary
Mr. S.K.Chatterjee
positioned as the expert for all construction needs. UltraTech has been recently
bestowed with the title of consumer validated Superbrand by the Superbrands
Council and consumer selected Powerbrand by Powerbrands India.
A majority of UltraTechs state-of-the-art manufacturing units are accredited with
the highest quality standards and certifications such as ISO 9001 for quality
systems, ISO 14001 for environmental management systems and OHSAS 18001
for occupational hazard and safety management systems.
UltraTech has pursued excellence in all its areas of operations and has numerous
accolades to its credit. Clients in India and across the world have consistently
endorsed UltraTechs adherence to the highest quality standards. The lists of export
awards won by UltraTech provide ample proof of its uncompromising standards on
product quality. UltraTech has been on the roll call of top exporters of the
Chemicals & Allied Export Promotion Council, year after year. UltraTech has also
won the Capexil Certificate of Export Recognition - Top Exporter - Cement,
Clinker, Asbestos and Cement Products for the years 2000, 2002 and 2003.
Export
Environment
Safety
Finance
CSR
12
6.
7.
8.
Quality
ISO/SA/OHSAS
Others
Finance
Balance sheet
(Rs in Crore)
Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Mar ' 12
Mar ' 11
Mar '
10
Mar '
09
Mar '
08
274.07
12,585.7
5
274.04
10,392.0
0
124.49
1.99
4,482.17
124.49
1.68
3,475.93
124.49
0.77
2,571.73
2,012.09
1,796.04
16,667.9
5
2,789.76
1,354.84
14,810.6
4
854.19
750.33
6,213.17
1,175.80
965.83
5,743.73
982.66
757.84
4,437.49
Uses of funds
13
Fixed assets
Gross block
19,014.4
8
7,379.66
11,634.82
8,078.14
7,401.02
4,972.60
3,136.46
4,941.68
2,765.33
4,635.69
2,472.14
2,500.46
3,163.02
3,788.77
17,942.2
7
6,542.02
11,400.2
5
1,105.32
3,730.32
259.37
1,669.55
677.28
1,034.80
2,283.15
170.90
4,501.82
6,420.48
3,920.31
5,345.56
1,496.18
2,153.61
1,378.35
1,982.39
1,317.49
1,834.51
-1,918.66
16,667.9
5
-1,425.25
14,810.6
4
-657.43
6,213.17
-604.04
5,743.73
-517.02
4,437.49
3,697.10
3,730.32
1,669.55
1,034.80
170.90
90.23
5,892.68
2740.65
4,220.47
2740.42
420.26
1244.87
355.07
1244.86
645.17
1244.86
Income
Operating income
Expenses
Material consumed
Manufacturing expenses
Personnel expenses
Selling expenses
Adminstrative expenses
Expenses capitalised
Mar ' 12
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
18,270.69
13,205.64
7,042.82
6,385.50
5,512.43
3,620.80
4,489.06
855.21
4,419.48
819.34
-39.11
3,013.54
3,302.56
690.64
3,168.94
487.27
-10.51
1,588.44
1,528.33
250.28
1,477.88
224.27
-4.02
1,193.97
1,805.56
216.76
1,256.46
177.93
-8.38
1,008.92
1,314.78
171.55
1,143.02
160.03
-13.37
14
Cost of sales
Operating profit
Other recurring income
Adjusted PBDIT
Financial expenses
Depreciation
Other write offs
Adjusted PBT
Tax charges
Adjusted PAT
Non recurring items
Other non cash adjustments
Reported net profit
Earnigs before appropriation
Equity dividend
Preference dividend
Dividend tax
Retained earnings
14,164.78
4,105.91
121.60
4,227.51
223.86
902.56
3,101.09
956.69
2,144.40
250.27
51.52
2,446.19
5,229.78
219.25
35.57
4,974.96
10,652.44
2,553.20
253.22
2,806.42
287.91
765.73
1,752.78
507.48
1,245.30
33.41
125.52
1,404.23
4,133.60
164.42
26.67
3,942.51
5,065.18
1,977.64
101.71
2,079.35
124.11
388.08
1,567.16
494.92
1,072.24
21.00
1,093.24
3,531.64
74.69
12.41
3,444.54
4,642.30
1,743.20
99.29
1,842.49
134.09
323.00
1,385.40
384.44
1,000.96
-23.94
977.02
2,575.14
62.24
10.58
2,502.32
3,784.93
1,727.50
87.31
1,814.81
81.93
237.23
1,495.65
499.40
996.25
11.36
1,007.61
1,782.77
62.24
10.58
1,709.95
Paid Up
Shares (Nos)
Paid Up
Capital
Capital structure
(Rs in Crore)
From
Year
To
Year
2011
2012
2010
2011
2009
2010
Class
Of
Share
Equity
Share
Equity
Share
Equity
Authorized
Capital
Issued
Capital
280.00
274.07
274065301
Paid Up
Face
Value
10
280.00
274.04
274041665
10
274.04
130.00
124.49
124487079
10
124.49
15
274.07
2008
2009
2007
2008
2006
2007
2005
2006
2004
2005
2003
2004
2002
2003
2002
2003
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
130.00
124.49
124485879
10
124.49
130.00
124.49
124485879
10
124.49
130.00
124.49
124485879
10
124.49
130.00
124.40
124398621
10
124.40
130.00
124.40
124398621
10
124.40
130.00
124.40
124398621
10
124.40
30.00
30.00
29999993
3.00
30.00
30.00
10
CSR is defined as operating a business that meets all exceeds the ethical, legal, commercial and
public expectations that society has of Business.
Making a difference
Before Corporate Social Responsibility found a place in corporate lexicon, it was already
textured into companys group's value systems. As early as the 1940s, their founding father Shri
16
G.D Birla espoused the trusteeship concept of management. Simply stated, this entails that the
wealth that one generates and holds is to be held as in a trust for their multiple stakeholders. With
regard to CSR, this means investing part of their profits beyond business, for the larger good of
society.
While carrying forward this philosophy, company legendary leader, Mr. Aditya Birla,
weaved in the concept of 'sustainable livelihood', which transcended cheque book philanthropy.
In his view, it was unwise to keep on giving endlessly. Instead, he felt that channelizing resources
to ensure that people have the wherewithal to make both ends meet would be more productive.
He said, "Give a hungry man fish for a day, he will eat it and the next day, he would be hungry
again. Instead if you taught him how to fish, he would be able to feed himself and his family for
a lifetime."
Company strategy
Taking these practices forward, ultratech chairman Mr. Kumar Mangalam Birla
institutionalised the concept of triple bottom line accountability represented by economic
success, environmental responsibility and social commitment. In a holistic way thus, the interests
of all the stakeholders have been textured into companys group's fabric.
17
The footprint of their social work today spans 2,500 villages in India, reaching out to seven
million people annually. Their community work is a way of telling the people among whom they
operate that they care.
Projects are planned after a participatory need assessment of the communities around the plants.
Each project has a one-year and a three-year rolling plan, with milestones and measurable
targets. The objective is to phase out their presence over a period of time and hand over the reins
of further development to the people. This also enables them to widen their reach. Along with
internal performance assessment mechanisms, their projects are audited by reputed external
agencies, who measure it on qualitative and quantitative parameters, helping them gauge the
effectiveness and providing excellent inputs.
Their partners in development are government bodies, district authorities, village panchayats and
the end beneficiaries the villagers. The Government has, in their 5-year plans, special funds
earmarked for human development and they recourse to many of these. At the same time, they
network and collaborate with like-minded bilateral and unilateral agencies to share ideas, draw
from each other's experiences, and ensure that efforts are not duplicated. At another level, this
provides a platform for advocacy. Some of the agencies they have collaborated with are UNFPA,
SIFSA, CARE India, Habitat for Humanity International, Unicef and the World Bank.
Company focus areas
Ultratech rural development activities span five key areas and their single-minded goal here is to
help build model villages that can stand on their own feet. Their focus areas are healthcare,
education, sustainable livelihood, infrastructure and espousing social causes.
Education
Balwadis (pre-school)
Adult education
Non-formal education
Continuing education
Scholarships for girls, merit and technical education
18
19
Infrastructure development
Roads
Dams
Community centres
Houses
Culverts
Electricity
Health centres
Water channels
Schools
20
For Employees
Relocation benefit:
a) Reimbursement of cost incurred for movement of goods
b) Travel Reimbursement
c) Relocation Allowance
Childrens Education Reimbursement
General Reimbursements
Hospitalization Insurance
21
Accident Insurance
Company Vehicle Leasing Scheme
Holidays & Leave Policy
Company Transportation
Leave encashment
Advance Salary
Awards and reorganization
Social events
Loans without interest
Employee Scholarship (with/without bond)
Employee Compensation
Sponsorship (Sports)
Parental Care
Discounts and Coupons
For the Environment
Committed to sustainable development, to meeting the needs of the present without in
any way jeopardizing the welfare of future generations.
Business strategies consciously factor environment conservation as a major principle.
22
Plants are ISO14001 Environment Management Systems Certified and adhere to OHSAS
18001 standards.
SWOT ANALYSIS
Strength
UltraTech Cement Limited (UltraTech) is India-based one of the largest cement
manufacturing company. The company along with its subsidiaries is engaged in the business of
manufacturing, marketing, distribution and sales of the cement and cement related products.
UltraTechs other cement related products are ready mix concrete and cement clinker. The
product portfolio of the company comprises Portland cement, Portland blast furnace slag cement
and Portland Pozzolana cement. The company also exports cement and clinker to countries
around the Indian Ocean, Africa, Europe, and the Middle East. The company has an annual
cement production capacity of 18.2 million tones. It is a subsidiary of Grasim Industries Ltd. The
company operates two subsidiary companies namely, Dakshin Cement Limited and UltraTech
Ceylinco (P) Limited. The company is headquarter at Mumbai in India.The company reported
revenues of (Rupee) INR 66,643.30 million during the fiscal year ended March 2009, an increase
of 16.43% over 2008. The operating profit of the company was INR 13,678.20 million during the
fiscal year 2009, a decrease of 9.73% from 2008. The net profit of the company was INR
9,780.60 million during the fiscal year 2009, a decrease of 3.17% from 2008.
Strengths of UltraTech are as follows Better quality
Long relationship with customer.
Maintains a world class infrastructure.
Market share.
Large distribution network.
Proper research and development.
23
Weakness
Everyone looks up to a visionary leader to understand the possibilities tomorrow holds.
And you have a greater responsibility to bear when you are Indias largest cement company.
In the present day context, UltraTech is playing an important role in the infrastructural
development of the country. No wonder, UltraTechs every creation is a window to tomorrow.
And an effective communication was needed to reflect the same.It was quite a daunting task for
Interface Communications, the advertising agency for UltraTech, to get the right mix of emotions
and technological superiority that appeal to everyone right across IHBs to architects and large
commercial establishments.
The weaknesses of UltraTech are as follows Delay in supply.
Inconsistency of Supply.
Insufficient manpower
Opportunity
When you view India through a prism, its multi-faceted refractions are awesome, unique
and partly distressing. A multiethnic, multi-religious, multilingual, multi-cultural diverse
democracy, rich in its distinctive heritage India is, indeed, captivating. Our democracy
resonates throughout the world. Moreover, the way in which India has transformed itself from a
colonial, agri-based backwater economy into an independent, modern, knowledge-driven one is
the stuff of case studies at the best-in-class business schools the world over. While the youth
leader must appreciate these facets, he or she must have a thorough understanding of the
different strands that go into the weave of India. The partition in the aftermath of our freedom
struggle has left a scar, as has the divide in the name of God. India is a country of extreme
paradoxes. We are reckoned as a nation of tremendous opportunities and, yet, it is a reality that
India is a place of perpetual struggle. We have large tracts of our country that have yet to witness
any economic advancement.
Company should 24
Production
25
26
27
Concrete
Concrete is most vital material in modern construction. It has versatile properties like
easy mould ability, high compressive strength and long lasting durability. These properties of
concrete have made it most popular construction material for all types of civil engineering
works. The latest developments in concrete technology have made it possible to use it in intricate
and architecturally complex structures, requiring high degree of performance and aesthetic
appearance.
In addition to normal concrete, other varieties in use are, high strength and high
performance concrete, self compacting, light weight, high density, fibre reinforced, polymer,
coloured concrete etc.
The ingredients of good and bad concrete are the same. The difference lies in the
technology used for production, transportation and placement. The making of concrete is an art
as well as a science. Science because all the ingredients are proportioned as per the standard
codes of practice to get the targeted strength & durability, and an art because in addition to
accurate proportioning, quality of concrete depends on the way it is mixed, placed, compacted,
finished, cured and protected. Ready mix Concrete (RMC) technology results in a perfect blend
of the Art and Science.
In all the developed as well as most of the developing nations, use of RMC for
construction has made it possible to achieve speed and quality. The advent of commercial RMC
in India is about a decade old, but in recent years it has become the preferred choice of architects,
engineers and consumers.
UltraTech Concrete is committed to provide customised high quality RMC for ensuring
speedy construction.
28
Process
Portland cements are made by grinding a mixture of limestone, clay and other
corrective materials, viz. Lateritic, Bauxite etc. Essential constituents mainly are
Lime, Silica, Alumina and Iron Oxide. The process of manufacturing consists of
grinding of raw materials into fine powder, mixing them intimately and burning in
a kiln at about 1400 deg. C. The resultant product is called Clinker. Clinker is
cooled, ground to fine powder with gypsum. The end product is cement.
29
Type of Unit
Integrated Plants
No.
11
Grinding Units
11
Bulk Terminals
Jetties
30
HRMS FUNCTION:
Man-power planning
Recruitment
Selection
Orientation
Wages & salary administration
Motivation
Performance appraisal
Employee welfare
31
About Company:
Man Power Planning In Ultratech Cement Ltd., the human resource planning is done on the basis
of demand and supply of human resource.
Recruitment & Selection
Recruitment and Selection is made on the basis of Internal Sources of
Recruitment and Selection criterias are set in the Human Resource
Planning.
Orientation
There is a Group Orientation of the New Employees so that they can get a
basic introduction about the company and Group Orientation saves the time
of both Employees and Employer.
Wages & Salary Administration
Wages and Salary are decided on the basis of Job and Professional
Qualification of the Employee.
Motivation Constant motivations are given to employees so that the employees work
efficiently and the employee turnover reduces.
Performance Appraisal
Performances of the employees are evaluated every year and promotions are
given on the basis of their performance.
Employee Welfare
Different types of employee welfare activities are organized in the company.
32
Marketing
Marketing is the process of communicating the value of a product or service to
customers. Marketing might sometimes be interpreted as the art of selling products,
but sales is only one part of marketing. As the term "Marketing" may replace
"Advertising" it is the overall strategy and function of promoting a product or
service to the customer.
From a societal point of view, marketing is the link between a societys material
requirements and its economic patterns of response. Marketing satisfies these
needs and wants through exchange processes and building long term relationships.
The process of communicating the value of a product or service through
positioning to customers. Marketing can be looked at as an organizational function
and a set of processes for creating, delivering and communicating value to
customers, and managing customer relationships in ways that benefit the
organization and its shareholders. Marketing is the science of choosing target
markets through market analysis and market segmentation, as well as
understanding consumer buying behavior and providing superior customer value.
Ultratech Cement
Ultratech Concrete
Birla White
Star Cement
33
Marketing Orientation
Production Concept
The Production Concept is one of the oldest concepts in business.
Production Concepts say that, consumer will prefer that product which is
economical in nature and which is easily available in the market. According
to this concept company should concentrate on achieving high production
efficiency, low cost and mass distribution.
Product Concept
Product concept says that a product which is having unique and
distinguishes features than its competitors is preferred by the customers. It
means that product concept holds that consumer will favour those products
that offer the most quality performance or innovative features.
Selling Concept
Selling concept says that a market should aggressively promote its product
or market or should put an effort to promote its product. Otherwise it will
not be purchased by the customers. In other words if your product is good in
quality and features than also aggressive marketing should be done. The
purpose of such companies is to sell more for earning more profits.
Advertising with celebrities and various schemes can be helpful.
Marketing Concept
The Marketing concept emerged in the mod of 1950s. The marketing
concept says that marketer should undertake aggressive marketing strategy
to understand the needs of the customers. The marketing concept says that
the key to achieving organizational goals consists of the company being
more effective than competitors in creating, delivering and communicating
superior value to its customers.
34
Societal Marketing
This concept suggests that every marketer should provide the qualitative
goods at a reasonable price to fulfil his service towards the society.
Holistic Marketing
This concept is based on the development, design and implementation of
marketing programs, processes and activities that recognize their breadth
and interdependence. Holistic marketing recognize that everything matters
with marketing. It integrates all the aspect of the business like internal
marketing, relationship marketing, integrated marketing and social
responsibility.
About Company:
35
Marketing Mix
Marketing mix includes 4 Ps of Marketing. They are
Product
Price
Place
Promotion
36
About Company:
Related to Product
Ultratech is providing different kinds of product related to constructions and
variety of products are available in the market.
They are giving the superior quality of goods which makes the construction
more powerful and quality assurance is given by ultratech cement ltd.
Cement Products have different features as per the different requirements of
the customers or consumers.
There are different packaging pattern of cement so that the cement does not
losses its substance and hardness remains in the cement.
37
Cement comes in the size of 10kg, 25kg, 50kg and 100kg bags.
Many a time company is providing the facility of transportation for the
customers if the order is in bulk.
Branding
The name UltraTech with the signature line, 'The Engineer's Choice', admirably
captures the premium nature of the brand and its salience."
Mr. O.P. Puranmalka, Business Director, UltraTech Cement Limited, and Director,
Aditya Birla Management Corporation Private Limited.
Branding Scope
The UltraTech brand bears a strong association with popular Indian sports namely
cricket and hockey. The in-film branding with Chak De India and the IPL connect
with the Rajasthan Royals (Season 2, 3 & 5) and Deccan Chargers (Season 4) has
made UltraTech a youthful brand to reckon with. Birla Whites homegrown
Yuvaratna Awards recognise architectural and engineering excellence. UltraTech
is also associated with the Business India exhibition - A Celebration of
Architecture. All these affiliations have strengthened Brand UltraTech's
association with the fraternity of students, engineers, architects, builders and the
construction community at large.
39
Brand Achievements
40
UltraTech Cement has been honored with the title of the customer validated award
- SUPERBRAND for the years 2011 and 2012 by the Superbrands Council. It
has also been bestowed with the title of the customer selected POWERBRAND
for the year 2012 by Powerbrands India.
Superbrands is a global organisation that recognizes, showcases and pays tribute to
the best brands in each country. It is a prestigious award and recognizes the brand
custodians persevering efforts to build a brand that is strong on consumer
perceptions, thereby making it resilient to fluctuating economic conditions.
For the fourth edition of Consumer Superbrands, UltraTech was a part of a very
exclusive group of winners selected first by the consumer and then by an
independent Superbrands Council comprising of the most eminent professionals
from Indias corporate sector. This is an important recognition of our efforts and
serves our objective of getting closer to the consumer. In a market comprising of
several highly regarded competitors, this is certainly an outstanding achievement.
Birla White, a brand of UltraTech, too has earned the distinction of
SUPERBRAND for the second consecutive time and is also a
POWERBRAND.
UltraTech Superbrand Award 2012
Birla White Superbrand Award 2012
UltraTech Superbrand Award 2011
Birla White Superbrand Award 2011
Birla White Superbrand Award 2009
41
Related to Price
The regional variation in the Indian market has resulted in the cement prices across
regions witnessing movement within a band, with no appreciable increase in any
region. Differences in regional demand supply situation have translated into price
differences across regions. Prices are lower in Southern regions where there is
normally a supply surplus. However, prices are higher in Eastern and Western
regions where shortages exist. The surplus position had resulted in significant
pressure on price realizations in recent years.
In the field of marketing management process, it basically consists of four steps:
1. Analyzing marketing opportunities
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Related to Place
Distribution Channel
Companies invariably hire 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 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.
There is a use of 3 levels of channelling.
Manufacturer to Agents to Wholesaler to Retailer to End User.
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Supply Chain
The team orders and maintains the inventory of stock keeping units so that unit
does not run out of critical supplies at any point. The team also ensures that all
stock keeping units of items used in the unit are received at stores from vendors
and distributed to the different outlets on time. Other functions include:
Distribution Strategy:
Includes functions of operating control (centralized, decentralized or shared),
delivery scheme (e.g., direct shipment, pool point shipping, Cross Docking, DSD
(direct store delivery).
Information:
Integration of and other processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory, transportation, and
potential collaboration etc.
Inventory Management:
Quantity and location of inventory including raw materials, work-in-process and
finished goods.
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Related to Promotion
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the
purpose of influencing, informing, or persuading a potential buyer's purchasing
decision.
There are seven main aspects of a promotional mix these are Advertising - Any paid presentation and promotion of ideas, goods, or
services by an identified sponsor.
Examples: Print ads, radio, television, billboard, direct mail, brochures and
catalogue, signs, in-store displays, posters, motion pictures, Web pages, banner ads,
and emails.
Personal Selling - A process of helping and persuading one or more
prospects to purchase a good or service or to act on any idea through the use
of an oral presentation.
Examples: Sales presentations, sales meetings, sales training and incentive
programs for intermediary salespeople, samples, and telemarketing. Can be faceto-face or via telephone.
Sales promotion - Media and non-media marketing communication are
employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability.
Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, selfliquidating premiums, trade shows, trade-ins, and exhibitions.
As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the healthy
success and life of the product. Stages and promotion strategies employed.
Introduction
When a product is new the organizations objective will be to inform the target
audience of its entry. Television, radio, magazine, coupons etc may be used to push
the product through the introduction stage of the lifecycle. Push and Pull Strategies
will be used at this crucial stage.
Growth
As the product becomes accepted by the target market the organization at this
stage of the lifecycle the organization works on the strategy of further increasing
brand awareness to encourage loyalty.
Maturity
At this stage with increased competition the organization take persuasive tactics to
encourage the consumers to purchase their product over their rivals. Any
differential advantage will be clearly communicated to the target audience to
inform of their benefit over their competitors.
Decline
As the product reaches the decline stage the organization will use the strategy of
reminding people of the product to slow the inevitable
About
Company:
Ultratech Cement
is
mostly
promoting its product through Advertising, Sales Promotion and Public
Relations.
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Recent Advertisement
Segmentation
Market segmentation consists of a group of customers who share a similar set of
needs and wants. Segmentation refers to divide the customers into groups on the
basis of some common needs or characteristic.
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Basis of Segmentation
Geographical Segmentation
It refers dividing the customers on the basis of the place where they are
living various geographic areas consists of region, city, rural and semi rural
area. The purpose of the company for such segmentation is to understand the
needs of people living in different geography. Geographic segmentation is
very useful because needs of the customers are influenced by the geography.
Demographic Segmentation
In Demographic segmentation the market is divided into the groups on the
basis of variables such as age, family size, family life cycle, gender, income,
occupation, education, religion, etc. There are two reasons for using the
demographic segmentation one is that it is easier to measure them while
second reason is that customers need and wants are different as per the
demographic variable.
Psychographic segmentation
Psychographic segmentation refers to be the division of the customers on the
basis of their life style, status, personality and values.
Behavioral Segmentation
In behavioral segmentation buyers are divided into the groups on the basis of
their knowledge and attitude toward the product. Occasion, benefits, usage
rate, buyer readiness stage, loyalty status and attitude are various behavioral
segmentation elements.
About Company:
49
Targeting
Once the firm has decided its market segmentation opportunities it has to decide
how many and which once to target. Marketers are increasingly combining several
variables in efforts to identify smaller, better defined target groups.
Steps of Targeting
Evaluation of Target
Market50
Selection of
Target Market
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About Company
Ultratech cement is targeting on the basis of Differentiated Market so that
the new varieties of cement can be given to the customers. This step can get
success only if segmentation is done properly.
Positioning
Positioning can be defined as the way by which a product has occupied a place in
the minds of customers related to the competitors.
Positioning is the act of designing the companys offering and image to occupy a
distinctive place in the minds of the target market.
To make the buying decisions easy customers are categorizing the products as per
their position in the minds. A products positioning is a complex set of perceptions,
impressions and feelings that consumer holds for the product.
Basis of Positioning
1. Product Differentiation
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2. Service Differentiation
3. People Differentiation
4. Image Differentiation
About Company
Ultratech uses Product Differentiation and Image Differentiation as its Brand name
Aditya Birla Group itself has a great reputation in the minds of the people.
53
Sponsorship
Conclusion
Bibliography
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