LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT

Report on Summer Training

MARKET RESEARCH AND OVERALL PERFORMANCE OF J&K

CEMENTS IN SRINAGAR, KASHMIR

Submitted to Lovely Professional University

In partial fulfillment of the Requirements for the award of Degree of Master of Commerce

Submitted by:

Deepak Singh
Regd. No. 11001691

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (YEAR 2010-11)

CERTIFICATE

This is to certify that Sandeep Singh, student of Lovely Professional University , Punjab has worked on project MARKET RESEARCH AND OVERALL PERFORMANCE OF J&K CEMENT IN SRINAGAR, KASHMIR. He has successfully completed his project work in partial fulfillment of Master of Commerce (M.Com) from Lovely Professional University, Punjab. This project report is the record of the students own efforts under the able supervision and guidance of Mr. Mandeep Singh.

Mr Mandeep Singh Signature of director Signature of Guide

Date: Place:

Date: Place:

ACKNOWLEDGEMENT

First of all I would like to thank Almighty for blessing me to complete this project. It was an honour and privilege for me to work for J&K CEMENTS LTD. I am greatly thankful and extend my deepest sense of gratitude to Mr. Farooq Ahmad Wani (Managing Director J&K Cements Ltd.), who most willingly extended his cooperation and gave me an opportunity to work for his organization. I owe a deep sense of obligation to the following persons for their stimulating and enthusiastic support and guidance due to which I could carry out this project successfully: Mr. A.R. Wani, DY. General Manager, JKCLplant, Khrew Kashmir Mr. Javaid Ahmad Hakeem, Manager Engineering JKCL I would also like to extend my deep regards towards all the faculty members of Lovely Professional University, Punjab for helping me to complete my project successfully. I take this opportunity to thank Mr Mandeep Singh for his role as a philosopher, friend and guide.

CONTENTS

S.NO.

Chapters

1.

INTRODUCTION OF THE STUDY (Executive summary)

2.

THEORETICAL FRAMEWORK

3.

BACKGROUND OF THE STUDY

4.

OBJECTIVES OF THE STUDY: SCOPE OF THE STUDY:

5.

6. 7.

INDUSTRIAL PROFILE

J&K Cements Ltd: Overall Performance

8.

RESEARCH METHODOLOGY

9. 10.

DATA ANALYSIS AND INTERPRETATION

SWOT Analysis

11. 12. 13. 14.

FINDINGS AFTER THE SURVEY:

CONCLUSION/ SUGGESTIONS ANNEXURE BIBLIOGRAPHY

INTRODUCTION OF THE STUDY

EXECUTIVE SUMMARY The American Marketing Association (AMA) states, 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 objectives". Marketing is a wide and heavily interconnected subject with extensive publications. It is also an area of activity infamous for re-inventing itself and its vocabulary according to the times and the culture. There are many different definitions of marketing. Consider some of the following alternative definitions: The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time The achievement of corporate goals through meeting and exceeding customer needs better than the competition The management process that identifies, anticipates and supplies customer requirements efficiently and profitably Marketing may be defined as a set of human activities directed at facilitating and consummating exchanges The project report titled Market Research and overall performance of J&K Cement in Srinagar, Kashmir was conducted to find out the market share and overall performance of J&K cements in Kashmir. During the survey, 150 sellers selling different brands of cement were interviewed and their opinions and views about the quality, availability, economy in price of J&K cement in the city were thus drawn. Questionnaire was used as a tool to get the views and idea from the retailers. J&K Cements Ltd. has been in operation for more than 26 years now, producing high quality cement 43 Grade OPC and PPC. The company has been growing at a fast rate i.e. 10-15% annually and is first of its kind in govt. sector manufacturing high quality cement from past several years. Company has in its credit various awards of excellence. 5

The basic objective to conduct the market survey was to find out the Market share and overall performance of J&K cement in terms of quality, economy in prices and level to which the company has been successful in fulfilling the social responsibility in Kashmir valley.

J&K cements has acquired a market share of about 35% in Srinagar city. Majority of the retailers selling J&K cement are very loyal to the brand of cement. J&K Cements is having an effective distribution channel as compared to other brands of cement. Its supply mainly goes to the govt. sector. Being the brand of Kashmir and having a very strong goodwill in the govt. sector as well as in market, J&K cement has restricted other brands of cement to expand their market (particularly in govt. sector) in Kashmir.

THEORETICAL FRAMEWORK Theoretical framework is a structure of concepts which exists in the literature, a readymade map for the study. The Theoretical framework for research provides guidance for the researcher as study questions are fine-tuned, methods for measuring variables are selected and analyses are planned. Once data are collected and analyzed, the framework is used as a base of comparison. Did the findings coincide with the Theoretical framework? If there were discrepancies, is there a way to explain them using the framework? The critique of market research needs to know how to critically appraise a Theoretical framework for resea rch. Evaluating frameworks for market research requires skill, which can only be acquired through repeated critique and discussion with others who have critiqued the same manuscript. The novice critique of market research must be patient as these skills are developed. With continuing education and a broader knowledge of potential Theoretical frameworks, one builds a repertoire of knowledge to judge the foundation of a research study.the framework for research. Market Research Market research is the result of consumer oriented marketing. Now- a- days it has become necessary to study systematically the different aspects relating to the market process with regard to fulfilling the expectations and need of the customers by introducing the right product, at the right time and at the right place. Market Research is concerned with all those factors, which have a direct impact upon the marketing of products and services. It involves gathering, analyzing, processing and interpreting the information to help the management to understand and identify the problems, opportunities, marketing environment etc.

What is retailing? Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. The word retailing is derived from the French word retaillier, meaning to cut a piece off or to break the bulk. A retailer is a person, agent, agency, company or organization which is instrumental in reaching the goods, merchandise, or services to the ultimate consumer. Retailers perform specific activities such as anticipating customers wants, developing assortments of the products, acquiring market information, and financing.

Functions performed by the retailers:Retailers under takes business activities and performs functions that increases the value of the products and services that they sell to the consumers. These functions are: 1. Providing an assortment of products and services. 2. Breaking bulk. 3. Holding inventory. 4. Providing services.

Providing an assortment of products and services: Supermarkets typically carry 20,000 to 30,000 different items made by over 500 companies. Offering an assortment enable their customers to choose from a wide selection of brands, designs, sizes, colors and prices in one location. Manufacturers specialize in producing specific types of products. For example, Cambell makes soup, Amul makes dairy products, Kellogg makes breakfast cereals, and McCormick makes spices. If each of these manufacturers had its own stores that only sold its own products, consumer would have to go to many different stores to buy groceries to prepare a single meal. Hence all retailers offer assortments of products, for the convenience of the customers.

Breaking Bulk: To reduce transportation costs, manufacturers and wholesalers typically ship large cartons of the product, which are then tailored by the retailers into small quantities to meet individual consumption needs.

Holding Inventory: A major function of retailers is to keep inventory that is already broken into user friendly sizes so that the product will be available when consumers want them. Thus, consumers can keep a small inventory of products at home because they know the retailers will have the products available when they need more. Hence this is an important function done by the retailers.

Providing Services: Retailers provide services that make it easier for customers to buy and use products. They offer credit so customer can have a product now and pay for it later. They display products so 8

consumers can see and test them before buying. Some retailers have salespeople on hand to answer question and provide additional information about product. These are the different services provided by the retailers to the customers.

Retail Industry in India: In India, the retail sector is the second largest employer after agriculture. The retailing sector in India is highly fragmented and consists predominantly of small, independent and, ownermanaged shops. There are some 12 million retail outlets in India. Besides, the country is also dotted with low-cost kiosks and pushcarts. In 2001, retail trade in India worth Rs 11228.7 billion.

There has been a boom in the retail trade in India owing to a gradual increase in the disposable of the middle-class households. More and more players are venturing into the retail business in India to introduce new attractive retail formats like malls, supermarkets, discount stores, department stores, and even changing the traditional look of the bookstores, chemist shops, and furnishing stores. Food sales constitute a high proportion of the total retail sales. The share was 62.7% in 2001, worth approximately Rs 7039.2 billion, while non-food sales worth Rs 4189.5 billion however the non-food retailing sector registered faster year on year growth then food sales.

BACKGROUND OF THE STUDY

Project report titled MARKET RESEARCH AND OVERALL PERFORMANCE OF J&K CEMENT IN SRINAGAR, KASHMIR was undertaken as a part of two months summer training program for the partial fulfillment of 2 year M.Com degree, as per the norms of Lovely Professional University, GT road Phagwara, Punjab.

The main objective of the study was to understand the actual position of J&K cement in Srinagar city by interacting and communicating with the retailers selling different types of cement and thus finding the market share, overall performance of J&K in terms of quality, economy in prices, and the level up to which the company has been successful in fulfilling the corporate social responsibility. Descriptive research design was selected, random sampling was done and questionnaire was used to collect the primary data. 9

Results of the survey conducted reveal that J&K Cements acquires a major market share for govt. works in Srinagar, Kashmir. It has created an effective brand image in the market, by providing quality cement and has an effective distribution system too which has helped the company to expand its market throughout the Kashmir valley. Company has been much successful in fulfilling the corporate social responsibility as compared to its competitors. Company also has a golden opportunity to expand its market outside J&K state.

OBJECTIVES OF THE STUDY: 1. To find out the market share of J&K cements in Srinagar city.

2. To measure the overall performance of J&K cements in terms of quality and economy in prices.

3. To find out the level to which J&K have been successful in fulfilling various social responsibilities in Kashmir.

4. To find out the Positive and Negative aspects about J&K cements in the market.

10

SCOPE OF THE STUDY:

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. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. Scope of the Market Research was limited to Srinagar city. Retailers selling different brands of cement were studied during the research meant to find out the market share and overall performance of J&K cements in Srinagar city.

SIGNIFICANCE TO THE INDUSTRY: The Project Report has a limited significance as the findings and observations during the survey are based on the responses of 150 retailers which can be explored to take in the new trends across the cement industry. The significance for the industry lies in studying these trends that emerge from the study. Cement manufacturing sector is now a huge and the most energy consuming industry changing rapidly with the changing market scenario and developments in the construction sector. I have tried my level best to come up with some ideas which can help the company to innovate its business tactics.

LIMITATIONS OF SURVEY:

There was a sincere and honest attempt to conduct the survey in the most efficient and scientific manner possible. But the survey does have some limitations, which are as under: -

As the survey was done in District Srinagar therefore the results reveal the performance of J&K cements in Srinagar only, so the opinion of retailers in other districts of the valley may be different.

11

Most of the retailers selling cement are illiterate and that is the reason they either hesitated or refused to share their views.

Biased opinion of the retailers.

Due to the political disturbance and strikes in Kashmir valley, the study could not be conducted in other parts of Kashmir.

Many respondents thought that it was not necessary to provide authentic information. Limited time was available for conducting the survey.

INDUSTRIAL PROFILE

Bricklayer Joseph Aspdin of Leeds, England first made Cement early in the 19th century by burning powdered limestone and clay in his kitchen stove. By this crude method he laid the foundation for an industry which annually processes literally mountains of limestone, clay, cement rock, and other materials into a powder so fine it will pass through a sieve capable of holding water. Cement is so fine that one pound of cement contains 150 billion grains. Cement, the basic ingredient of concrete, is a closely controlled chemical combination of calcium, silicon, aluminum, iron and small amounts of other ingredients to which gypsum is added in the final grinding process to regulate the setting time of the concrete. Lime and silica make up about 85% of the mass. Common among the materials used in its manufacture are limestone, shells, and chalk or marl combined with shale, clay, slate or blast furnace slag, silica sand, and iron ore. Each step in manufacture of Cement is checked by frequent chemical and physical tests in plant laboratories. The finished product is also analyzed and tested to ensure that it complies with all specifications.

12

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.

INTRODUCTION

TO

INDIAN

CEMENT

INDUSTRY

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 up gradation 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 etc.

13

THE INDIAN CEMENT INDUSTRY NOW! Cement industry in India is currently going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement.

Issues concerning Cement Industry

y

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 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 im.comlance 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.

14

J&K Cements Ltd:

The place is a remote area of district Srinagar, KHREW, where J&K cements came into existence in 1980s and started its production in 1981. The story of J&K cements thus began and it has completed 28years of its glorious existence. Over the last few years, J&K cements has spent its time to build, build and build There is only one difference between dream and aim dreams require effortless sleep and aim requires sleepless efforts

J&K Cements did a pioneering role in laying the foundation of cements as early as 1982 and making a humble beginning. The group has to its credit thunderous achievements of universal acclaim in terms of quality of the products and the latest technology employed, coupled with able guidance and skilled work force. J&K Cements is undisputedly the most diversified, spread out cement of the valley. Currently the total employee strength of the J&K Cements is over 900 and is expected to rise in future.

15

The company has been in operation for more than 28 years now, producing high quality cement 43 Grade cement OPC and PPC at its cement plant situated at Khrew, Srinagar. It started with the cement production of 600 tones per day, which is now going to increase to 1200 tones per day as J&K cements have recently started a new Rotary Plant unit of 600TPD capacity.

The company uses latest sophisticated German technology. The company has distinction of being the first plant of its kind in the valley. The company commands good market reputation in the valley for super quality cement J&K Brand 43 Grade OPC, with super strength, super finish and super fineness manufactured in latest sophisticated Rotary plant with comput ri ed e raw material feeding. The company provides employment to more than 9 persons directly and about 2000 00 families indirectly. Company provides a lot of benefits and allowances like Bonus, food allowances, conveyance allowances etc to its employees. It believes that the reason behind the fast growth of the company is its competent and skilled workforce.

NAME OF T E PROPRIETOR

DE IGNATION

Managing Di Dy Gen. Manager(Plant

Farooq Ahmad Bhat (J&K Cements Ltd.) Mr. A.R. Wani

16

CORPORATE MISSION

The management of J&K Cements aims at expanding its market by providing better quality products with added services to meet the market demand. Company also aspires for maintaining its profitability and creates job opportunities in the state as well as outside. Among the first companies in India to include commitment to environmental protection is also included in its corporate mission.

GENERAL FEAT RES The company was started with the initial capital of 38 crore rupees, Of which 15crore was invested by the govt. and the rest by Banks and various financial institutions. The company has been making profits right from its inception. J&K started with a staff of 315 employees falling under different cadres including 25 managers/ engineers, 40 supervisors/ technicians, 200 permanent workers and 50 casual workers. At present, the company has staff strength of more than 900 employees of which 30 are managers/ engineers, 70 supervisors, 550 permanent and 2 casual workers. 57

Further the company has an annual turnover of 50crore with an annual growth of 15-20%. The company is having a very good conducive working atmosphere and is free from union interventions. However, company has never witnessed any strike throughout its establishment.

Being a fair market practitioner and providing quality products, the company is putting its regular effort in research and development for making innovations in its market strategies and locates new potential markets. The company is having dedicated well qualified a efficient nd human resources.

The capital investments, regular purchases, financial matters including preparation of budgets, cash inflows and outflows etc are directly controlled and managed by the director of

17

the company who is very hopeful and positive about the mission of the company applying his expertise in fulfilling the goals of the organization.

TRAINING AND DEVELOPMENT The company does not have any annualized budget spared for training purpose as the training is provided within the premises of the organization by the experts from higher positions in the company. Company only provides short term practical training to its employees working at shop level. Employees found deficient while performing their routine job are recommended for training purpose by the head of the department. Whenever there is need for training the employees, the company shows its most interest in imparting training to its employees. Employees also show strong inclination and interest towards these training programs.

Jammu & Kashmir, located in the northern-most part of India has been described by many as a 'Paradise on Earth' and holds huge potential in the tourism sector. Jammu & Kashmir's economy is mostly dependent on farming and animal husbandry. Although small, the manufacturing and services sectors are growing rapidly with several consumer goods companies opening manufacturing units in the region during recent years. According to estimates by the Centre for Monitoring Indian Economy (CMIE), outstanding investments in Jammu & Kashmir as of the quarter ended March 2007, totalled US$ 8.1 billion, which is 18.7 per cent higher compared to the same quarter a year ago. This rise in investments has been on account of increased investments in the manufacturing sector, which grew by 78.6 per cent, and investments in power projects that rose by 24 per cent.

18

ORGANIZATIONAL HIERARCHY

MANAGING DIRECTOR

E ECUTIVE DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

CHIEF ACCOUNTS OFFICER

PERSONNEL MANAGER

PURCHASE MANAGER

SALES MANAGER

AWARDS OF E CELLENCE WON BY J&K CEMENTS PVT. LTD.

LOYALTY AWARD 2007

19

BEST CONSULTING AWARD IN CEMENT SECTOR(IN J& K)

MOST RESPECTABLE COMPANY AWARD (J&K), PRESENTED BY CHIEF MINISTER OF J&K

RESEARCH METHODOLOGY

METHODOLOGY: Marketing research is a systematic gathering, recording and analysis of data collected by various techniques to assess the response to different parameters related to a given project and accordingly prepare a report based on which the company can have a view of the market and the problem areas. These help the company to formulate various alternatives for the solutions and take correct decisions. These decisions are highly crucial in determining the marketing strategy to be adopted.

The main objective of the research was to find out the market share and overall performance of J&K Cements in Srinagar city. Based on the findings, suitable suggestions were to be given to the company to increase its sales and tackle competition.

20

RESEARCH PLAN: The research plan was executed with the help of following parameters in order to get the required information:

1. Data sources. 2. Research approaches. 3. Sampling instruments. 4. Sampling plan 5. Contact method.

RESEARCH DESIGN

Type of Research: The type of research done was Descriptive.

Nature of Research: The research was Quantitative in nature.

Type of Questionnaire: The type of questionnaire used during the survey was the Structured and formalized Questionnaire.

Type of Questions: The types of questions asked during the survey were Formalized and Limited Probing.

Type of Analysis: The type of analysis carried out during the study was Statistical Analysis.

DATA COLLECTION: It includes the source from where the data was collected during the survey.

PRIMARY DATA: Primary data consist of original information gathered for a specific purpose. The primary data was collected through the questionnaire. It is the most common instrument in collecting primary data. 21

RESEARCH APPROACH & RESEARCH INSTRUMENTS: The primary data was collected through a survey. Information was collected by personally interviewing the retailers selling different brands of cement. The survey was conducted in most efficient manner possible in different areas of Srinagar city.

QUESTIONNAIRE: The questionnaire was carefully prepared, tested and debugged before it was put to actual use. Each question contributed to the research objective. The questionnaire was framed in such a manner so that it could serve the purpose of the survey.

SAMPLING DESIGN:

A sample design is a definite plan for obtaining information (sample) form a given population. The steps involved in sampling design are as follows:

SAMPLING UNIT: WHO IS TO BE SURVEYED? The market researcher must define the target population to be sampled. The sampling units chosen for this survey were the retailers selling cement.

SAMPLE SIZE: The sample size should be optimal. An optimal sample is one that fulfils the requirement of efficiency, representative ness, reliability and flexibility. Sample size was 150 respondents from the different parts of Srinagar who helped to get the relevant answers to the questions mentioned in the questionnaire.

22

SAMPLING METHOD: The sampling method used for this survey was convenience-sampling method or random sampling.

Introduction and briefing Planning of the study

Research Proposal Research Proposal was Prepared

Exploratory Research and Secondary Data Collection Check internal and external sources of data, to help in the preparation of questionnaire

Survey and Primary Data Collection Data Collection from consumers

Data analysis and interpretation

23

The following Research Plan was adopted during the Survey: Data source

Secondary Research Approach

3ULPDU\

6XUYH\
Observation Methods Focus Group

Contact Method

Mail

Telephone

3HUVRQDO

Research Instrument

4XHVWLRQQDLUH

Mechanical Instrument

24

Sampling Plan

Sample Unit

Sample Si e

Sampling Procedure

Sample Extent

Sample Duration

Sample Element

DATA ANALYSIS AND INTERPRETATION

REGAR ING ATA ANALYSIS AN INTERPRETATION

The Data Analysis and Interpretation topic may be read keeping in view the followingnote:Most of the retailers simultaneously sell more than one Brand of cement such asJ&K, Saifco, TCI etc. Out of 150 retailers interacted during the survey, it has been ascertained that: -

51 retailers sell only J&K cement, 39 retailers sell J&K cement and also other Brands as well such as Khyber, TCI etc. 32 out of 150 retailers sell Saifco cement as well as other Brands like Khyber, TCI etc. Minor numbers of retailers i.e.; only 28 out of 150 retailers, sell Cemtac along with other Brands of cement as well.

The Market Share of each Brand is defined on page no. 47. Similarly Average monthly sales of different Brands of cement sold by the retailers surveyed (150 retailers) is indicated further.

25

4) Different brands of cement sold by the retailers?

Market share of different brands of cement 138

140 120 100 80 60 40 20 0 (DFKUHVSRQVHRXWRIUHWDLOHUV 

59 30 13 0 0 0 0 0 0

JKCL Khyber TCI Saifco Haroon Ambuja ACC Jhelum Arco ICC

Brands JKCL Khyber TCI Saifco ACC Haroon Ambuja ICC Jhelum Cemtac Arco

Market share 51 35 30 13 0 0 0 0 15 0

Out of 150 150 150 150 150 150 150 150 150 150

%age 34% 23% 20% 8.67% 0% 0% 0% 0% 10% 0%

Interpretation: KHYBER cement has the major market share (92%) followed by Saifco (39.33%), TCI (20%), Cemtac (8.67%) while as no retailer sells other brands of cement.

26

5) Reasons why retailers prefer to sell J&K cement

Better Quality

140 120 100

131 120 117 101

127
More demand Good profit margin Regular availability

80 60 40 11 20 0 (DFKRXWRI5HWDLOHUVVHOOLQJ- .&HPHQWV 42 35
Durable/ prevents rusting of iron More credit period allowed by the supplier brand image It sets quickly

Reasons why retailers sell J&K cement Better Quality More demand Good profit margin Regular availability Durable/ Prevents rusting of iron More credit period allowed by the supplier Brand image It sets quickly

Response Out of Share 131 120 42 117 101 35 127 11 138 138 138 138 138 138 138 138 94.92 % 86.95 % 30.43 % 84.78 % 73.18 % 25.36 % 92.02 % 7.97 %

Interpretation: All the above responses are out of 138 each, 131 told that they sell J&K cement because of its Better Quality, 120 (because of more demand), 42 (because of Good Profit Margin), 117 (because of regular availability), 101 (because of its durability), 35 (because of more credit period allowed by the su ppliers), 127 (because of the brand Image) and only 11 (because of its quick setting)

27

6) Quantity of different brands of cement sold by the retailers on an average monthly basis

Khyber 25490 bags, 23%

TCI 8230 bags, 7%

JKCL 74005 bags, 68%

Saifco 2010 bags, 2%

JKCL Khyber TCI Saifco

Different brands

Quantity of cement sold on an avg. monthly basis in Srinagar city

J&K Khyber TCI Saifco

74,005 bags (412 trucks approx.) 25,490 bags (142 trucks approx.) 8,230 bags (46 trucks approx.) 2,010 bags (12 trucks approx.)

Interpretation: 74,005 bags of J&K are sold on an average monthly basis in Srinagar city, followed by Khyber (25,490 bags), TCI (8,230 bags) and Khyber (2010 \ bags)

28

7) In which months, the demand for the cement is maximum?

September

June

August

November

December

October

July

January

February

March

April

May

Months January February March April May June July August September October November December

Responses by the retailers 0 0 23 51 113 139 145 144 114 56 13 0

Interpretation: The demand for the cement is maximum in the month of June, July and August. It is the time when the Cement is sold maximum in the market. while as in other months, the demand for the cement is minimum.

160 140 120 100 80 60 40 20 0

45

44 4

56

January February March April May June July August September October November December

Out of 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers 150 retailers

29

8) Type of cement mostly bought by the Consumers

1 0
150

100

50

Ordinary Portland Cement Polarized Portland Cement Polarized Portland Cement

0 Ordinary Portland Cement

Types of cement OPC PPC

Response 150 0

Out of 150 150

Interpretation: All the consumers prefer to buy OPC and no one buys PPC

30

9) Reasons why consumers mostly prefer to buy OPC and no one buys PPC? Costlie than OPC, 1, (1 ) less awareness among consumers about PPC, 69, (46%) Less availability of PPC in the valley It is low in quality & has less st ength, 0, (0%) Less availability of PPC in the valley, 80, (53%) less awareness among consumers about PPC It is low in quality & has less strength Costlier than OPC

Reasons why consumers buy OPC and not PPC Less availability of PPC in the valley Less awareness among consumers about PPC Low quality & less strength Costlier than OPC

Response by retailers

Share

80 69 0 1

53% 46% 0% 1%

Interpretation: 53 % of the retailers told that PPC has less availability in the valley, 46 % told that it is because of the unawareness of customers about PPC. More or less PPC is unavailable in the state.

31

10) Rankings given by the retailers selling J&K in terms of Quality, Economy in prices and overall performance?

Ranking J&K

Excellent 42

Excellent

Good 85

Good

Average

90 80 70 60 50 40 30 20 10 0

Excellent Good Average Poor

Average 11

Poor

Poor 0

Interpretation:

42 retailers ranked J&K cement as Excellent in terms of quality, economy in prices and overall performance, 85 retailers ranked J&K as Good and 11 retailers ranked it as Average.

32

11) Keeping in view the current competition and several new brands cement coming in market, Will J&K cement be able to attain its market share in coming future period of time and Why?
Positives (YES)
150 100 50 0 1

Quality cement Goodwill in the market Low pricing

Negatives (NO)

Delays in supply Low quality

6 6

Reasons Why

Response Out of

Interpretation: From the above table, it can be interpreted that Majority of the retailers selling J&K cement are of the opinion that J&K has the ability to attain its market share in future period because of the quality cement, Goodwill in the market, Low pricing strategy and Effective distribution channel.

6 4

4 1

Deficiency in marketing channel High pricing

Quality cement

129 138

Effective distribution system

0 1

YES, it can attain its market share because of these reasons. Goodwill in the market Low pricing Effective distribution channel

NO, it cannot attain its market share because of these reasons. Delays in supply Low quality Deficiency in marketing channel High pricing

122 138

23 138

105 138

4 138

1 138

6 138

6 138

33

12) How much has J&K been able to fulfill various social responsibilities?
110 82 57 35
40 20 0
Created employment opportunities Increased standard of living of the society Established charitable trusts for the society Provided Quality products at economical prices Taken care of environment/ surroundings

120 100 80 60

Social Responsibilities Created employment opportunities Increased standard of living of the society Established charitable trusts for the society Provided quality products at economical prices Taken care of environment/ surroundings

Response 82 35

Out of 138 138

Share 59.42 % 25.36 %

110

138

79.71 %

57

138

41.30 %

138

3.62 %

Interpretation: 82 of the 138 retailers told that J&K has created employment opportunities in the valley, 35 were of the opinion that J&K has increased standard of living of the society from the past several years, 110 retailers told that J&K has established charitable trusts for the society, 57 retailers told that J&K has provided quality products at economical prices and 5 retailers told that J&K has taken care of environment/ surroundings.

34

13) Does J&K needs Advertising and various other promotional activities to be followed to locate potential markets and increase sales? 87
90 80 70 60 50 40 30 20 10 0

51
YES NO

Whether J&K need Advertising.. Yes, it needs No, it does not need Total

Response 51 87 138

Share 37 % 63 % 100 %

Interpretation: 37 % of the retailers selling J&K cement told that J&K needs advertising and various other promotional activities to be followed to identify potential markets and increase sales while as only 63 % told that J&K does not need any advertising and various other promotional activities.

35

14) Credit period allowed to the retailers selling J&K Cement by their suppliers?

100 90 80 70 60

10 0

Credit period allowed 0 7 days 7 15 days 15 30 days Above 30 days No credit allowed TOTAL

Interpretation: 14 % of the retailers selling J&K Cement told that they get credit period up to 7 days from the supplier, 10 % of retailers get credit period up to 15 days, 4% get credit period up to 30 days while as majority of the retailers i.e. 72 % dont get any credit period from their respective suppliers.

50 40 30 20

14 6

Response. 19 14 6 0 99 1

0 - 7 days 7 - 15 days 15 - 30 days Above 30 days No credit allowed

Share 14 % 10 % 4 % 0 % 72 %

36

15) Does J&K need innovations in packing of cement to make it more attractive and avoid loss of cement due to hooking, careless handling etc or should it be kept as it is now?
88
90 80 70 60 Yes 50 No 40 30 20 10 0

Whether innovation is needed YES, innovation is needed NO, keep it as it is now Total

Response.. 88 50 138

Share 64 % 36 %

Interpretation: 64 % of the retailers told that innovations should be made in packing to make it more attractive and prevent loss of cement, While as 36 % of the retailers told that the packing is good and should not be changed. It should be kept as it is.

37

S-W-O-T Analysis STRENGTHS: Major seller to govt. in Srinagar city as compared to other Brands of cement sold in the market.

Strong Brand Image (Jehlum Brand) of J&K cement in the market.

Effective Distribution channel which enables regular availability of J&K cement in the valley.

J&K cement is more durable and sets slowly.

The belief that "to succeed requires the highest standards of corporate behavior towards the employees, consumers, societies and the world in which we live". J&K has been creating employment opportunities from the past several years and established various charitable trusts for the society.

WEAKNESS: Company or the distributor does not inform the retailers about the price reductions to be made in future period hence loss is suffered by the retailer. It also spoils the brand image of the company. Company has not provided any package or scheme to the retailers who are selling J&K cement from the past several years. It could hamper the sale of J&K cement in Srinagar city as the retailers would shift to other brands.

Cement coming from the new rotary plant established by J&K has complaints about the colour of cement which is brownish and thus results in difference in colour of plaster done on the walls.

38

Many registered retailers selling J&K cement from the past several years have never been provided bill boards, flex banners, diaries, calendars etc which act as a motivational tools and promotional steps to increase sales and retain the market share in todays competitive environment.

J&K cement is sold at different prices in the market by the retailer. It creates a bad impression on the mind of the customer as he thinks that why all the retailers selling the same brand but at different prices? He doubts about the quality of the cement.

OPPORUNITIES:

As India is a developing nation and construction sector is at boom, J&K with its quality cement and strong goodwill can look forward to expand its market outside J&K state.

J&K cements have a golden opportunity to fill the demands for cement in such areas e.g. Shopian, Kangan, Islamabad, Kulgam Pahalgham, Yusmarg, Sonmarg etc where other brands of cement are scarce or less available.

J&K could give a tough competition to other brands available within and outside J &K state if they advertise their brand. With the rise in production level, J&K has an opportunity to expand its distributorship making the network of retailers vast and strong throughout India.

THREATS Low profit margin given to the retailers can hamper the growth of J&K in future as the retailers selling J&K cement would probably shift to other brands who give much better margins to the retailer. With the coming of several new brands like Sumo Cement, Arco, Haroon, Asian Cement and Cemtac in the Valley having superb advertising, economical pricing strategies, effective promotional activities, have posed threats to J&K. Saifco, a tough competitor to J&K is planning to establish one more rotary plant with the two times more capacity as compared to J&K Cement. 39

FINDINGS AFTER THE SURVEY:

J&K cements has earned a lot of trust in the valley as compared to other cements available in the valley.

Customers mostly prefer to buy J&K cement because of its good quality, regular availability in the market and durability.

Most of the retailers sell J&K cement due to its Good quality, Goodwill and more demand.

J&K cement is the cement mostly sold to the registered retailers in Srinagar city.

Demand for the cement is maximum in the month of June, July and August.

Ordinary Portland cement is mostly bought by the consumers and no retailer sells Polarized Portland cement. 40

Most of the retailers ranked J&K cement as good in terms of quality, economy in prices and overall performance.

Majority of the retailers are of the opinion that J&K could attain its market share in coming future keeping in view the current competition and several new brands coming in the market.

J&K has always been able to fulfill its corporate social responsibility throughout the valley.

CONCLUSION

Every ship that starts for a voyage needs a harbor to end its journey and so does our journey, an exhausted survey conducted to know the Market Share and Overall Performance of J&K cements in Kashmir valley, threw up some knowledgeable aspects which are clear from data analysis. A general impression that I gathered during data collection was the immense awareness and knowledge among retailers about various brands of cement available in the market. As the company is growing fast and by the side it has also been successful in fulfilling the various corporate- social responsibilities in Kashmir by providing quality cement and establishing various charitable trusts (including Khalil Charitable Trust and J&K Medical hospital) in the valley. J&K cement has become a popular Brand name, Jehlum, in cement industry and ensures quality and values for the investments in construction. It is the first cement company in J&K State which has been successful in touching heights and won many national awards. Customer usually buys J&K cement because of the brand name and Better quality. J&K cement is sold more in J&K state and regularly available without any delays.

41

SUGGESTIONS Company should itself fix the prices of the cement and rate list should be provided to the retailers so as to avoid the differences in the prices at which the cement is sold in the market. It will result in uniformity of prices in the market.

Company should provide some schemes and packages to the retailers who have been selling J&K cement from the past several years. Providing schemes or packages to the retailers helps in motivating them and thus they become more loyal to the brand.

Company should inform the retailers in advance about the price cut downs to be made by the company in future period so that the retailers are able to sell/ finish their previous stock and avoid losses. Flex banners, sign boards, diaries, calendars, bill boards etc should be provided to the retailer to motivate them to become loyal to the brand. It costs less but pays much.

J&K should make innovations in packing of the cement bags. Usually due to hooking, the bags are damaged resulting in loss of cement. It can be avoided by stitching a flap to the bag so that the workers could lift the cement bag with the hands and hooking can be avoided.

Company should keep a check on the Truck Union who increase the freight (Transportation charges) @ 10 to 12% annually without any reason or giving any notice to the retailer due to which the prices of the cement rise. Immediate attention of the company is needed.

Due to the enormous rise in production capacity of J&K cement, company should look forward to expand its market and sell the surplus cement in potential markets.

Trucks carrying cement from the plant to the retailer usually have very rough flooring which damages/ cuts the packing of cement bags resulting in loss of cement as well as loss to the retailer also as customer refuses to buy that bag. Flooring of the trucks should be made better and water proof. 42

Company should also update its website which plays a very vital role in promoting sales and creating awareness among the masses. Business transactions can also be made online.

Company should appoint a team who would appear the retailers, take feedback from them and if there are some grievances, suggestions or complaints from the retailer, these should be immediately corrected so that the company could point out its weaknesses in the market and can work on it to eradicate these weaknesses. Who knows? May be the suggestions from the retailers could help the company to grow and become the market leader in future.

Company should always keep in mind that the ultimate sellers of the cement are the retailers so proper care should be taken to preserve their rights as most of the retailers are selling cement on credit basis to the customer, company should instruct its distributors to provide credit facility to the retailers so they get some relief in selling the cement. It will also help the company to motivate the retailer and becomes much loyal to the Brand.

Company should also mention the price i.e. MRP (Maximum Retail Price) of the cement bag on the packing. It would make customers aware of the price which they are paying and restrict the retailers to sell the cement more than the price mentioned/ printed on the bag.

43

QUESTIONNAIRE 1. Name of the respondent: ____________________________________ 2. Name of the Shop/ Address: _________________________________ ____________________________________________________________ 3. Telephone/ Mobile no: ______________________________________ 4. Which brand/ brands of cement do you sell? a) Ambuja c) ACC e) Jhelum g) ICC i) Haroon b) Saifco d) J&K f) Cemtac h) TCI j) ARCO

5. Why do you sell the above brand/ brands of cement? Better Reasons why? Quality More deman d Good profit margin Regular availabilit y Durable/ prevents rusting of iron More credit period is allowed by the supplier s Ambuja Saifco ACC J&K Jhelum Cemtac ICC TCI Haroon ARCO Brand image It sets quickly

44

6. In which months, the demand for the cement is maximum? a) January b) February c) March d) April e) May f) June g) July h) August i) September j) October k) November l) December

7. Rank the different brands of cement in terms of quality, economy in prices and overall performance? Ranking Scale Excellent Good Average Poor

Ambuja Saifco ACC J&K Jhelum Cemtac ICC TCI Haroon ARCO

8. Every day, different Brands of cement are advertised in newspapers, on radios and TVs, do you think that the cement you are selling needs advertising and various promotional activities to be followed to create new markets to increase sales?

YES NO a) Ambuja c) ACC e) Jhelum g) ICC i) Haroon b) Saifco d) J&K f) Cemtac h) TCI j) ARCO

YES NO

45

9. Which Cement manufacturing company has been successful in fulfilling the following social responsibility in Kashmir?

Responsibilities

Created

Increased

Established charitable trusts for the society

Provided Quality products at economical prices

Taken care of environment / surrounding s

Employment standard of Companies opportunitie s living of the society

Ambuja Saifco ACC J&K Cements Cemtac ICC TCI Haroon ARCO

10. Do you feel that innovations should be made in packing of the

cements you sell to

make it more attractive and avoid loss of cement (due to hooking), handling, loading and unloading or should it be kept as it is now?

YES a) Ambuja c) ACC e) Jhelum g) ICC i) Haroon

NO b) Saifco d) J&K f) Cemtac h) TCI j) ARCO

YES

NO

46

11. How much credit period is allowed to you by the supplier/ distributor of the cement you sell or no credit is allowed?

Credit period allowed Ambuja Saifco ACC J&K Jhelum Cemtac ICC TCI Haroon ARCO

days

15 days

15 0 days

Above 0 days

No credit allowed

47

BIBLIOGRAPHY

1.

BOOKS/MAGAZINES REFFERED: MARKETING MANAGEMENT by PHILIP KOTLER Concepts & practices of Research Methodology by HARPREET SINGH. MAGAZINES: Company pamphlets Company Reports

2.

WEBSITES REFFERED: WWW.J&K.IN www.jammu&kashmircements.net WWW.GOOGLE.COM WWW.PCA.COM www.cementcorporationofindia.com

3. REPORTS/ARTICLES REFFERED:

ANNUAL REPORT OF BERKELEY NATIONAL LABORATORY

BRIEF PROFILE OF INDIAN CEMENT INDUSTRY from Bureau of Energy Efficiency Board of India. By Katja Schumacher and Jayant Sathaye

48

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