EFFECTIVENESS of SALES and DISTRIBUTION CHANNEL of ZUARI CEMENTS

CHAPTER-1

INTRODUCTION

NEED FOR THE STUDY

Consumer satisfaction is the most important objective for any manufacturing concern to successfully market its products. ZUARI has from gradually and would want to take a stock of the satisfaction level of consumers and define areas where possible improvement may be made. The research work has been therefore selected in this area. The company which produces products doesnt give life to sustain in competition without sales of products. So sales are important function of the manufacturing company to get profits. Through sales only wealth maximization if possible. Distributions are also one of the important functions in marketing. Through distribution only one company can sell its products. Here the distribution channels contain the dealers. Who are very near to the customers and act as middlemen between the organizations. So there is a need to study sales and distribute on strategies.

Distribution system includes distribution channels. Which are sets of independent organizations involves in the process of making a product (or) a service available for the consumption. Distribution network is necessary for smooth flow of goods.

OBJECTIVES OF THE STUDY

Primary objective: To assess the role of dealers in ZUARI cement Industries Limited. Secondary objective: 1. To assess the channel effectiveness in ZUARI Cement. 2. To find dealers opinion on various issues of the present market situation and furthering (strengthening) channel effectiveness. 3. To offer suggestion in building effective channel strategy to ZUARI Cement Industry

SCOPE OF THE STUDY

The study aims to measure satisfaction level of the dealers regarding ZUARI cement industries. The area within which the study was conducted regarding the information the primary data is collected in the form of questionnaire collected from the dealers in Rangareddy district. To sum up the project had with in the scope of the study in the area of EFFECTIVENESS FEB 2011) of SALES and DISTRIBUTION CHANNEL of ZUARI Cement dealers in Rangareddy district for a particular time ( JAN-

METHODOLOGY OF STUDY: In view of the objectives of the study, an exploratory design has been adopted. researcher design Further the researcher also touched the descriptive and causal analysis to relate between different

variables. Exploratory research is one which largely interprets the available information on the study and it lays emphasis on the analysis and interpretation of the exiting and available information. This research is generally useful when we use the information collected from three sources, viz., study of secondary sources, discussion with individuals and analyzing the some specific case.

Sources of Data:
To perform the Research study by Researcher, the sources of data obtained are: Primary Data: This data is obtained by interacting and interviewing the dealers in Rangareddy district. Secondary Data: This data is obtained directly from the company in the form of broachers, charts, diagrams, document and other forms.

Data Collection Tool:

Questionnaire:
This is one of the data collection tools. It is quite popular particularly in case big enquires. It is being adopted by private individuals, research worker, private and public organization and even government. In this method, a questionnaire is issued to the persons concerned with a request to answer the questions and return the questionnaire. A questionnaire consists of number of questions printed or typed in a definite order or a form or set of forms. The researcher used the structured questionnaire in which the questions were: Open-ended questions Close-ended questions Dichotomous questions Multiple choice questions

Sampling Design
The researcher has done his research study on the dealers of ZUARI Cement to know their present satisfaction and expectation from this brand. The researcher selected the dealers of ZUARI Cement at Rangareddy district for his research study. Sampling Plan Sample size: Sample size consists of 50 dealers. Sampling unit: Sampling The Sampling unit includes all the dealers of ZUARI For collecting information from dealers, nonCement products present in Rangareddy District. method: probabilistic simple random sampling method is used.

Tools of analysis:
The data collected trough survey has been carefully and

meaningfully analyzed by using well established statistical tool and techniques. Important statistical technique is percentage method.

Hypothesis:
Hypothesis is a part of research that enables the researcher to predict about the future based on the present trend. It is very much essential in any research activity to develop the policies for a better working of the system. Based on the above concept, the hypothesis for the study developed by the researcher at the various stages of analysis.

Limitations of the study:

The selected sample members are conspicuous and inconspicuous in nature. So, there is chance to arise some errors in the courts of survey. The errors may be as follows: Respondents may not disclose the right information, because the researcher is very stranger to them. Respondents may give pleasing answers to the researchers even though it is not correct from the prospective. The perceptional values like status, not-disclosure of the correct information and difficulty in expressing their personal feeling to an unknown researcher can bring questionnaire. Since, the sample size is small; a perfect mix of the respondents may not be available for the researcher to conduct the opinion survey. wrong opinion poll ton filling the

CHAPTER-2

10

REVIEW OF LITERATURE

11

CUSTOMER SATISFACTION INTRODUCTION

The present day Indian economy is viewed a highly competitive and market oriented. At this state the success of any organization is totally depends on customer and his satisfaction only. So, every business organization should see that the customer as sovereign of the market who decides the fete of it. Hence, it is the responsibility of any concern to meet the requirements of customers from time-to-time with greater dynamism. Customer satisfaction is totally intangible and its management is very crucial aspect on the part of the business entrepreneurs. Making such an intangible property in to tangible is great challenge among the various organizations. This depends on customer orientation, customer dynamism, tapping new avenues by the business unit, quality of the product, price of the product, proper supply of materials, timely ness in supply, effective channel of distribution, customer treatment, after sale service, product chiqueness professionalism in marketing strong grand image, effective packing system, and continuous improvement in business and so on. Market:A market, in general, may be described as a place or geographical area where buyers and sellers meet and function, goods of services are offered for sale, and transfers of title of ownership occur. From the point of view of economics, a market is defined as an aggregate of the potential buyers for a product or service. But, in practice, the term market is used to denote any body of persons who are in intimate business relation and carry on any extensive transaction in any commodity. Marketing:-

12

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. The present generation of producers is intelligent in regard to the application of procedures. They first want to find out what the consumers want. Then they produce goods according to the needs of the consumers. They realized that only such products could be sold to the best satisfaction of the users and at a profit to the maker. For this arrangement, however, the whole organization has to be rearranged in a most complex manner. Marketing starts and ends with the consumer:Marketing activity is concerned only with the flow of goods, from the producer to the consumer. In other words, to achieve maximum efficiency in marketing, there must also be a flow of information vis--vis the flow of goods. This information, for practical purpose, has to be collected even before a product is planned. Subsequent information would also enable the manufacturer to assess periodical changes that are required. That is why it is very often remarked that marketing starts and ends with the consumer, with information flowing form the consumer to the producer and goods flowing back to the consumer from the producer. Today they have a full-fledged function added to marketing, viz, Market information and Marketing Research. Under consumer oriented marketing, it is highly essential to know what the consumer really wants.

13

This is possible only when proper information is collected from the consumers A push strategy means a channel member directs its promotion primarily at the middle men that are the meant links forward in distribution channel. The product is Pushed through the channel the producer will promote heavily to wholesalers which then also use a push strategy to retailers in turn the retailers promote to consumers. As market conditions change over time a company they shift product growth strategies. A company tries to sell more of its present products to its present markets. Supporting tactics might include grater spending on advertising of personal selling. A firm continues to sell its present products, but to a new market This strategy sells for a company to develop new products to sell to its existing markets. A company develops new products to sell to new markets. Determining Intensity of distribution: Distribution intensity ordinarily is thought to be a single decision. However if the channel was more than one level of middlemen the appropriate intensity must be selected for each level. Intensive Selective Exclusive

Distribution Distribution Distribution through in a market Product through every through multiple sells its product through every available outlet a single whole selling where consumer might reasonable look for it. Ultimate consumers demand Reasonable But not all reasonable Out let in a market Out lets in market 14 Middlemen and/ or retaileinmarket

immediate satisfaction from convenience goods and will not defer purchases to find a particular brand. This intensive distribution is often used by manufactures of this category of product. A product sells its product through multiple but not all possible, wholesalers and retailers in a market where a consumer might reasonable look for it. Selective distribution if appropriate for consumer shopping goods. The supplier agrees to sell its product only to a single wholesaling middlemen and retailer in a given market producer it is essential that the retailer carry a large inventers. Sales and Distribution strategy: Sales and distribution management constitutes one of the most important parts of marketing management. Exchange is the core, aspect of marketing, and it is the sales and distribution management which facilities it. Sales management has been defined as the management of a firm personal selling function. The importance of the sales and distribution function varies across organizations depending upon its nature and verity of products, target market. Consumer density and dispersion and the competitive practices among the other things. Sales and distribution function is organized internally, externally or jointly. Finding and communication with prospective buyer. Bringing together the markets offering and the prospective buyer. Reaching an agreement on price and other terms of the offer so that ownership and possession can be transferred. Of the markets offerings, and his satisfaction generating potential. Actual transfer of possession i.e. timely and safe delivery. Of relevant consumers information and revenue in exchange of goods of services.

15

Selling The basic task of marketing is to bring the buyers and the sellers together. Regardless of the desire one has to sell and the other to buy, no exchange can take place until each one knows the desire of the other. The function of marketing is to ensure that the right product is made available at the place, in the right time and under the right impression to the consumer. Distribution of Consumer Market: Five channels are widely used in marketing tangible products to ultimate consumers: Producer consumer: The shortest, simplest distribution channel for consumer goods involves no middlemen. The producer may sell from door to door of by mail. For instance, south-western company uses college students to market its books on a house-to-house basis. Producer retailer consumer: Many large retailers buy directly from manufactures and agricultural products. To the chagrin of various wholesaling middlemen. Walmart has increased its direct dealings with products. Producer wholesaler retailer consumer: If there is a traditional channel for consumer goods, this is it, small retailers and manufactures buy the thousands find this channel the only economically feasible choice. Producer agent retailer consumer: Instead of using wholesalers, many producers prefer to use agent middlemen to reach the retail market, especially large scale retailers. For example. Clorox uses agent middlemen such as Eisenhart & wholesaler that distribute a wide range of products to retailers. In turn, Dierbergs offers its assortment of products to final consumers.

16

Distribution of Business Goods: A variety of channels are available to reach organizations that in corporate the products into their manufacturing process of use them in their operations. In the distribution of business goods, the terms industrial distributor and merchant wholesaler are synonymous. The four common channels for business goods: Producer user : This direct channel accounts for a greater dollar volume of business products than any other distribution structure. Manufactured of large installations, such as airplanes, generators, and heating plants, usually sell directly to users. Producer operating industrial supplies and small distributor accessory user: producers of frequently use equipment

industrial distributors to reach their markets. Manufactures of building materials and air conditioning equipment are two examples of firms that make heavy use of industrial distributors. Producer agent user: Firm without their own sales departments fid this desirable channel. Also, a company that wants to introduce a new market may prefer to use agents rather than its own sales force. Producer agent industrial distributors user:

This channel is similar to the preceding one. It is used when, for some reason, it is not feasible to sell through agents directly to the business user. The unit sale may be too small for direct selling. Of decentralized inventory may be needed to supply rapidly, in which case the storage services of an industrial distributor are required.

Indian Distribution System:

17

It is also important to assess how the distribution task is being performed in India. This task can be undertaken by measuring the number of functionaries in each class, their organizational structure and their capital structure. The margins charged by them would be a function of the quantum if goods moved and the population served by them and services rendered by them and would also assist in the task if measuring their performance. Dividing the members involved in each type of trade we can briefly get an idea about the average productive capital required in each class of trade. Having assessed the inputs, structure and size their distribution all over India we are now in la position to assess how the task is being performed in terms of output. Distribution logistics: Logistics was a military term referring to complete system of moving, supplying and quartering troops. Businessmen broadened logistics to include any type of transportation and storage. Marketers applied the term to mean the physical handing of products. They also began employing the term physical distribution in place of logistics. The area of physical distribution has received considerable attention. The attention was quite justified for a country such as ours because of its traditional short supply markets of for the gaps often witnessed between the demand and available of products. Prices of essential commodities of daily consumptions are particularly amenable to any dislocation in physical distribution. If any evidence is required, we need the concerns and anxieties associated with news of strike in Rail and road transport.

Role of Distribution:

18

The major role that distribution pays in any economy is that it constitutes the process by which goods and services become available for consumption. Manufacturers of goods and services specialize in generating structural of form utility for their products, in the sense that they create a unique set of demand satisfiers in the form of their offering. The actual mass scale delivery of these offerings to the consuming public requires a different kind of specialized effort. This generates time, place and possession utility. In other words, you cannot obtain and consume a finalized product unless the product is transported to a place where you can get access to it; stored till you are ready to buy it and ultimately exchange for money so that you can gain possession of it.

Physical Distribution and Channels of Distribution: If distribution could be treated as a whole function of marketing, physical distribution and channels of distribution. It is found that these two terms are used, sometimes, interchangeably. Channels of distribution refer, primarily, to the middlemen of intermediary marketing instructions which perform certain marketing functions. More than performing the function, these institutions try to gain access to the target market. Physical distribution, on the other hand, concerns with material aspects of the flow of goods to the consumers. It includes transportation, storage, warehousing, packaging, etc. it is technical function in the sense that it ensures availability of products at the right time, at the right place and in the right form. The term is used often in aboard sense to include channels of distribution also. Service to the manufacturers:

19

The

wholesaler

provides

perpetual

and

definite

customers

to

the

manufacturers. He either purchases large quantities from the manufacturer and sells them to the retailers, of collects small orders from a number of retailers and places a bulk order with the manufacturer. The manufacturer is thus relived of the trouble and expense of collecting a large number of small orders. He collects and provides the information required for planning the production ahead. He maintains stock and thus assures equitable distribution. He places bulk orders with the manufacturer and thus enables him to concentrate on production and reap the benefits of large-scale operations. He shoulders all marketing functions.

Position of the Wholesalers in modern marketing: In spite of gloomy forebodings common nowadays, the wholesaler still manages to hold his position because of the very real services he renders. But the wholesaler today, as compared with that of a hundred years ago, is a much less important member of the business fraternity. The following importance: Growing displeasure of this system of channel in all quarters. Growth of large retail stores such as chain stores, Departmental stores, super markets, etc. Manufacturers desire to establish direct contracts with the customers. Development of transport and communication systems. Frequent and unexpected changes in style and fashion. Emergence of new and bigger markets. Growth of consumers co-operative in almost all fields. are the important factors responsible for reducing his

20

Transportation: Transportation is necessary function of marketing because most of the markets are geographically separated from the areas of production. Majority of manufacturing plants are far away from their most important markets because of various factors. All goods are not utilized at the place of their origin. They require some kind of transportation to create place utility. Holtz Claw vividly puts the importance of transportation in the following liens: Minerals of other raw materials are to be transported from the place of extraction of production to the factory, crops are to be carried from the farm to the local market or primary market and from there to the places of consumption. Finished products are to be transported from the warehouse to the wholesalers warehouses, from warehouse to the retail dealer, and from the dealer to the ultimate consumer. The various modes of transport fall under the three categories:

Road transport Rail transport Water transport Air transport Pipeline transport

21

CHAPTER-3

INDUSTRY PROFILE
INTRODUCTION

22

Cement, like steel is one of the basic materials for the technical Development of a country. Cement industry in India is Eight decades old, the first cement plant having been commissioned in 1914 at Borabandhar (Gujarat). The Indian cement industry is the second largest in the world after Chinas. In terms of quality, productivity, and efficiency it compares with the best anywhere. It is almost entirely home growth, built indigenously and using locally soured inputs. In other words, the hard ware and software that run the industry in all mostly Indian barring one (or) two exceptional years, its performance in the last two decades has been quite consistent and commendable in terms of Modernization, expansion, growth in production, improvements in productivity and cost efficiency. In the past, the growth was at a slump till 1977 and after that there was a reversed trend and a climate of accelerated growth set in announcement of a formula for new investments based on 12% post tax return . The policy of partial decontrol announced in 1982 gave further boost to the cement Industry.

Modernization/ Expansion programmes:

I n the wake of the new policy, ambitious and comprehensive Modernization / expansion programmes have been undertaken by the Industry, Which include conversion of wet process to energy efficient dry process, comprehensive adoption of latest technology such as the use of vertical raw mill, precalcinators and installation of pollution control devices. For the implementation of these programmes Rs.5, 000 Crores have already been spent.

Capacity:

23

According to the Cement Manufactures Association (CMA) the industry has an installed capacity of over 137 Million tones from 124 plants of 56 member companies. Most of this capacity is modern and based on the energy efficient (conservation of energy) dry process technology. These are as many as 64 plants of a million tones or more capacity. How ever the minimum economic size has increased to two million tones a year.

Transportation of cement:
The share of roads in transport of cement is nearly 60% while 39% is moved by rail. In recent years, seas routes are used increasingly markets on the western coast.

Production:
Cement production dispatches grew almost 10% in 20012002 when few sectors of the economy could avoid first time last year with production of 102.4 million tones. The outlook for the current year is also favorable. Previously the annual growth rate of cement production is 7 % to 8 %. 70% Of the production is OPC, 15 % of PPC, slag cement 11 %, and production of oil well cement, special & other verities of cement together accounted For 1 %.

Demand and supply scenario:

The industry can expect to see good years ahead in the long run. Demand is expected to grow due to greater to cur on infrastructure and housing. Although the industry is capable of meeting its 24

own challenges, it still needs assistance from the govt., to overcome some of its external constraints.

Demand forecasting:
In particular, the housings and Roads sectors have high linkages with other sectors n terms of economic growth and employment generation also gives a valuable boost to the fortunes of the Indian Cement Industry. The CMA forces that 2002-2003 will also be a favorable one or the industry with a likely growth rate of 8 to 10 %.

Export Potential:
Even thought India is the second largest industry in the world, and has the natural advantages of limestone reserves, its export performance is not line with the size. Exports account for less than 2 % production. India is strategically placed to be a major exporter of cement to SAARC Countries and all those around Indian Ocean such as west Asia and Africa but India has not been able to fully tap this location advantage. There is sizable surplus capacity, and a quality product. Unlike in some of the neighboring countries, the Indian industry does not receive any special support from the Government to promote Exports the Government should lobby with some of the neighboring countries for reduction in their import duties. The Government can help in a big way in boosting export competitiveness through suitable financial incentives and confessional inland freights. It is interesting to note despite the reduction of import duties year after year, there have been no actual arrivals of cement

25

consignment from abroad. Low cement prices prevailing in the country, inadequate port infrastructure & high inland freight from ports to consumption centers are provided effective barriers to imports. Despite so many constraints, the industry exported under 3.4million tones during 2001-2002. Most of the credit goes to cement plants in Gujarat. There the companies have opened up their initiative. Some of the states, which have been marked for export from recent past, are A.P., Gujarat, Tamilnadu, Particularly in relation to export which have to be moved by sea. A Glance on the contribution of cement Industry towards Indian Cement has been a core building material for almost a century. There is no viable Substitute foreseeable in the near future. Since cement is a core building material, it is directly related to Construction which in turn flows from economic growth. All forecasts suggest large investments in housing & infrastructure. It is easy to visualize its multiplier effect on the constructions sectors have high linkages with other sectors in terms of economic growths and employment generation a part from their giving a valuable boost to the fortunes of the Indian Cement Industry. Cement, like steel is one of the basic material for the economic development of a country. The economic development of a country is indexed by the consumption of cement .The Indian cement industry plays a key role in the national economy, generating substantial Revenue for state and central government the third highest contributor in terms of excise duty of over Rs.3500 Crores a year. Sales taxes yield as round Rs. 1500 Crores. The industry employs a work force of over 1.5 lakhs persons and supports a further complement of 12 lakhs people engaged indirectly.

26

It must be admitted that govt. policy announcements in recent years have been pro-active in this respect & the cement industry has welcomed the governments announcements and initiatives in building roads etc, as there are huge advantage of cement & concrete roads over conventional bitumen roads. They are economical, ensure durability & long life. The housing sector by a rough estimate can consume over 50 million tones of cement to help clear the backlog. Any impetus in housing activity will serve as a powerful driver of the economy and consequently the cement industry. In fact, housing is likely to be the most powerful engine for growth of the economy. Despite lowering of import duties, no import of cement is likely. The needs renewed support from the Govt., in providing impetus in economic growth and construction of infrastructure projects. It also seeks Governments assistance in easing it financial burden by way of administered tools & duties. This kind of assistance will simultaneously increase the consumption of cement further reduce prices of customers. For cheaper costs cement can be made available to the public for mass housing 7 to help make the construction of infrastructure projects more financially viable.

COMPANY PROFILE
Introduction

27

The company zuari Agro Ltd was in corporate on 12 t h may 1967 zuari cement limited has been himself off as a separate company with 50-50 share holding by Zuari industries limited (A.K.K.Birla group company) and Italy cement group (as Italian cement company) with effect from 1-4-2000 with Head-quarters at Bangalore, Zuari and Italy cement group (through cement Francis group company) have formed joint venture company Viz., Zuari cement limited. It is projected to increase the cement capacity of 2.2MT. TEXMACO Limited in the year 1995 was changed to Zuari cement by division of ZUARI CHEMICAL LIMITED, jointly promoted by K.K.BIRLA & USX CORPORATION a major steel leader in U.S.A.

2.1 LOCATION OF THE PLANT

Zuari cement is running under the Flagship of Zuari Agro chemicals Limited. Zuari cement is strategies located 6 kms away from Yerraguntla town of Kamalapuram (Taluk) in Kadapa district Andhra Pradesh. Railway line has been laid connection the Yerraguntla station of Zuari Cements. Location of the plant at this place is having following advantages. 1. Location in industrial belt of Rayalaseema with sophisticated facilities like water, electricity, labor, transport etc. 2. Present of the best limestone proved scientifically for cement. 3. Low free lime to ensure reduced surface cracks. 4. Low heat of hydration for better soundness. 5. Low magnesia content to ensure reduced tensile cracks. 6. Specially designed setting time to suit Indian working conditions.

28

2.2 JOINT VENTURE WITH ITALIC CEMENT

Zuari group has identified as one of the core business to grow. It has therefore, been decided to constitute a separate corporate entity and hire off cement business to it. To accelerate the growth and achieve capacity additions quickly it decided to form a joint venture with a strategic partner after careful evaluation the multinational cement giant italic cement group was identified to be suitable partner for pursuing growth.

Zuari and Italic cement groups have agreed to form a joint venture with 50-50 equity sharing. The Zuari cement business will get transferred to the joint venture company Viz. Zuari cement limited.

It is proposed to have quarters of cement business at Hyderabad. It is proposed to increase the capacity of1.7 MTPA in span of 3 to 4 years. Italic cement group is the largest producer & distributor of cement in European and one of the leaders in the world maker place. The group operates in 13 countries including Belgium, Canada, France, Greece, Italy, Moraco, Spain, Turkey and U.S with recent acquisition in Bulgaria, Kazakhstan and Thailand.

The group was founded in 1864 and had its head quarters in Bermago, Italy; currently the group has 54 plans with an installed capacity of 40 MTPA spread over 13 countries. The group also has 500 RMC plants all over the world. The consolidated group turn over in 1998 was 3.4 billion US$. The group has excellent R & D and Machine design facilities

29

head quartered at Bermago, Italy, which renders technical support to all over the group plants.

2.3 ITALIC CEMENTRIC GROUP

Our Mission Our Shared Ambition: Effective and Efficient To become the most effective and most efficient cement manufacture and distributor in the world. Our Approach: We are local we think Global. Cement aggregates and ready to mix concrete manufacture and distribution are local business. Around the world we serve local customers in local markets with local needs. Our Way of Working: Technological leadership is our Goal. Our technology plays the key role in realizing our ambition we are committed to increasing the value of our groups, our companies, our products and services, the capabilities of our employees and the ecological standards by which we operate. Our spirit: One team worldwide. We operate worldwide in many diverse markets, cultures and continents. We are proud of our cultural diversity and our distinctive character.

2.4 ORGANIZAITONAL STRUCTURE

The organizational structure of Zuari is simple and flat. The employees are assigned grades based on their pay packages. These grades are not based on the job responsibilities may have different grades for reasons like duration of association with the company.

2.5 OBJECTIVES OF THE COMPANY:

To Provide employment to the local employees To supply best cement at economical prices

30

To get the optimum utilization of the raw materials available of their own mines. Manufacturing quality cement and to stand as a market leader in south India.

2.6 RECENT DEVELOPMENTS

Zuari cement has signed on agreement with the cement corporation of India (CCI) to market CCIs cement produces from their facility at tender in Andhra Pradesh. Zuari Cement shall market this in the state of Tamil Nadu, Kerala, Andhra Pradesh and pond cherry. The incremental tonnage for zuari cement as a result of this arrangement is around 3.5 lakh tones.

2.7 SOCIAL RESPONSIBILITY

As part of social responsibility the company is maintaining one dispensary where the near by villagers are treated free of cost. It has one primary school & also it has constructed bus shelters, traffic signals water sheds, water tanks hospitals, houses & road dividers.

2.9 MOTIVATION
Motivation in zuari cement limited is one by encouraging the employees by awarding them rewarding them and identifying their talents and promoting them to higher positions. The career development is possible through proper motivational factors.

2.10 MAJOR USERS

Zuari cement is marked through out south India by a wide network of stockiest. The zuari sales officers and representatives are based in almost all cities.

31

And towns in south India, Major users of zuari cement are as follows. Madras refineries limited. Airport authority of India Tamilnadu real estate limited East coast construction and industries limited. Tamil Nadu port trust. Asia pacific hotels limited Grind well Norton limited Tirumala Tirupati Devasthanam APSEB Srisailam power project. Ramco industries visaka industries. Hyderabad Everest limited Nagarjuna Construction.

2.11 CORPORATE MARKETING OFFICE

Zuari cements limited corporate marketing office is at cheennai (Tamil Nadu) and branches are at: Hyderabad Visakapatnam Bang lore Cochin Hanaji Cheennai Bhuwaneswar - Andhra Pradesh. - Andhra Pradesh. - Karnataka. - Kerala. - Gao. - Tamil Nadu. - Orrisa.

2.12 COMPETITORS

32

Penna Ultra Tech Malabar

- Tadipathri - Tadipathri - Cochin

33

PRODUCT PROFILE
Zuari Cement manufactures and distributes its own main product lines of cement .We aim to optimize production across all of our markets, providing a complete solution for customer's needs at the lowest possible cost, an approach we call strategic integration of activities. Cement is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed and ground to provide the "raw meal, a pale, flour-like powder. Heated to around 1450 C (2642 F) in rotating kilns, the meal undergoes complex chemical changes and is transformed into clinker. Fine-grinding the clinker together with a small quantity of gypsum produces cement. Adding other constituents at this stage produces cements for specialized uses.

ZUARI CEMENTS RANGE OF CEMENT

34

Zuari Superfine Cement cement

Zuari 43 Grade Cement

Zuari Superfine P53

ZUARI SUPERFINE CEMENT ZUARI 43 GRADE CEMENT ZUARI SUPERFINE P 53 CEMENT

QUALITY Six strong benefits that make Zuari 43, 53 Grade, Super fine, Vishnu Premium and Vishnu Shakti the ideal cement

Higher compressive strength. Better soundness. Lesser consumption of cement for M-20 Concrete Grade and above. Faster de shuttering of formwork. Reduced construction time with a superior and wide range of cement catering to every conceivable building need, Zuari cement is a formidable player in the cement market.

Here just a few reasons why Zuari cement chosen by millions of India. Ideal raw material

35

Low lime and magnesia content and high proportion of silicates. Greater fineness. Slow initial and fast final setting. Wide range of applications. Quality customer services.

FEATURES THAT PROMISE BETTER PERFORMANCE Concrete of better strength and workability since voids of air and water are reduced. Protection against alkali aggregate reaction due to the presence of a very glassy state of silica. Resistance towards chemical attacks and lowers permeability. Long term durable concrete, because of low free lime. Lower heat of hydration

SHARE CAPITAL OF ZUARI CEMENT LIMITED

36

31 s t December 2009 (Amalgamated) 1. Share Capital Authorized 27,00,00,000 (Previous period : 27,00,00,000) equity shares of Rs.10 each 17,00,00,000 (previous period : 17,00,00,000) 9% redeemable nonconvertible cumulative preference shares of Rs. 10 each Issued, subscribed and fully paid up 25,79,61,400 (previous period : 25,79,61,400) equity shares of Rs.10 each [refer to note (a) and note (b) below] 17,00,00,000 (previous period : 17,00,00,000) 9% redeemable non-convertible cumulative preference shares of Rs. 10 each 17,000.00 27,000.00

17,000.00

25,796.14

42,796.14

TAX ASSET / LIABILITY AT THE BALANCE SHEET OF ZUARI CEMENT LIMITED

Major components of deferred tax asset / liability as at the balance sheet date comprises of the following:

37

31 s t December (Amalgamate Deferred tax liability Excess of depreciation allowable under Income-Tax Act, 1961 over depreciation provided in accounts. Total Deferred tax asset Unabsorbed losses and depreciation (to the extent of virtual certainty) [refer Note I below) Provision for leave encashment Voluntary retirement expenditure allowable under Income-Tax Act 1961. Disallowance under Section 43B Provision for doubtful debts and advances Provision for stores and spares Others Total (B) Net Deferred tax liability (A B) Deferred tax liability taken over on amalgamation Deferred tax charge for the year 18

42.25

134.08 50.93 205.01 170.72 790.36 5,659.36 320.00

5,339.36

38

CHAPTER-4

39

DATA ANALYSIS & INTERPRETATION

40

Table -1

Dealers relation with ZUARI Cements Industry Business experience <1 year Below 3years 3-6 years Above 6 years Total Number of respondents 5 11 30 4 50 Percentage 10 22 60 8 100

120 100 80 60 40 20 0
rs rs s ar ar 3y ea ye a ye ye To ta l

Number of respondents Percentage

<1

lo w

3-

6 Ab o

Inference: 8% of the dealers have more than 6-years experience. 60% of the dealers have 3-6 years experience. Followed by 22% of the dealers

Be

ve

41

having less than 3 years and 10% of the dealers have one year experience. Table-2 Dealers feeling about Company Image Dealers Opinion Highly satisfied Satisfied Neutral Dissatisfied Others Total Number of respondents 15 30 5 0 0 50 Percentage 30 60 10 0 0 100

120 100 80 60 40 20 0
fi Sa ed tis fie d N eu D t is sa r al tis fie d O th er s To ta l tis

Number of respondents Percentage

Inference:30% of the dealers falling highly satisfied about companied image and 60%of the dealers were feeling moderately satisfied, 10% of the dealers were feeling satisfied about companies image.

ig h

ly

sa

42

Table-3 To know on which aspects the customer gets more satisfaction

Dealers opinion Brand name Price Quality Usages Others Total

Number of respondents 6 2 38 4 0 50

Percentage 12 4 76 8 0 100

120 100 80 60 40 20 0
e s lit y e s m ge Pr ic er na ua sa th To ta l

Number of respondents Percentage

Inference: Majority of the respondents are gibing fist preference to quality, second preference to brand name, then followed by product, usage and price.

Table-4 Customers come to shop

Br a

nd

43

Dealers opinion By your influence By friends By advertising By Brand Name Other Total

Number of respondents 8 8 8 26 0 50

Percentage 16 16 16 52 0 100

120 100 80 60 40 20 0
ds rti an sin g d N am e O th er To ta l en flu en ce

Number of respondents Percentage

fri

in

By

ur

ad

yo

By

Inference: From the above table it is inferred that majority of the customers come to retail outlets by the influence of brand name of ZUARI cement and followed by advertising, dealers influence.

Table-5 Stock out problems Dealers opinion Frequently Rarely No Number of respondents 0 5 45 44 Percentage 0 10 90

By

By

Br

ve

Total

50

100

120 100 80 60 40 20 0
ly y N o R ar el To ta en t l

Number of respondents Percentage

Inference : 90% of the dealers are getting satisfied with the supply of ZUARI cement by expressing that they do not come across stock out problem.

Table-6 Dealer satisfaction on supply of product Dealers Opinion Highly satisfied Moderately satisfied Satisfied No. of. Respondents 12 12 24 45 Percentage 24 24 48

Fr eq u

Dissatisfied Highly dissatisfied Total

2 0 50

4 0 100

120 100 80 60 40 20 0 Highly dissatisfied Highly satisfied Satisfied

No.Of. respondents Percentage

Inference: 48% of the dealers are satisfying by the supply and 24% moderately satisfying, 24% highly satisfied and 2% dissatisfied.

Table-7 Dealers satisfaction on in time deliveries Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total No. Of. Respondents 2 16 32 0 0 50 Percentage 4 32 64 0 0 100

46

120 100 80 60 40 20 0 Dealers opinion Moderately satisfied Dissatisfied Total

Series1 Series2 Series3

Inference:The majority of the dealers are satisfied with the mode of dispatch by the company

Table-8 Customers Awareness Dealers opinion Advertisement Campaign Dealer Others Total No. Of. Respondents 19 4 27 0 50 Percentage 38 8 54 0 100

47

120 100 80 60 40 20 0
t e le r en s ig n ea er em pa th To ta l

No.Of. Respondents Percentage

tis

er

Inference:The above table shows that 54% respondents are saying that dealers play majors in customers awareness about the product. And 38% of respondents are stating that advertisement is second highest promotional activity to create awareness in the minds of customer.

Table-9 Sales satisfaction Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total No. of. Respondents 9 11 30 0 0 50 Percentage 8 22 60 0 0 100

Ad v

am

48

120 100 80 60 40 20 0 Dealers opinion Moderately satisfied Highly dissatisfied Dissatisfied Highly satisfied Satisfied Total

Inference:60% of the dealers are satisfying the sale of ZUARIs product following 22% if the dealers moderately satisfied, 18% of the dealers were highly satisfied.

Table-10 Demand estimation on various products Dealers opinion Past sales Seasonal Orders Others Total No. of. Respondents 9 13 28 0 50 Percentage 18 26 56 0 100

49

120 100 80 60 40 20 0
l s s al es na er er so rd ts th to ta l

No.Of. respondents Percentage

Inference:The high percent of dealers are estimating the demand for the product through orders and 26%of are estimating on seasonal base.

Table-11 Industry to stock point fright expenses percentage Dealers opinion 2% 3% 4% 5% Total No. Of. Respondents 30 10 8 2 50 Percentage 60 20 16 4 100

Pa s

Se a

50

120 100 80 60 40 20 0 2% 3% 4% 5% total No.Of. Respondents Percentage

Inference: The dealers are incurs very less fright charges representing 2%, to receive goods from company to your stock point.

CHAPTER-5
51

FINDINGS
52

FINDINGS
1. Majority of the dealers having 3 to 6 years experience, and less number of dealers having above 6 years experience. 2. Majority of dealers just satisfied about the companys image, remaining are neutral, Highly satisfied. 3. Majority of the customers satisfying about the quality of the product next preference given brand name followed by usages, price. 4. Most of the dealers expresses customers visit to shop by brand name only. And followed dealers influence, by friends, by advertising.

53

5. The entire dealers were saying they do not face any difficulties to deal with the customers to selling the product. 6. Majority of the dealers saying they do no come across stock out problems. 7. Majority of the dealers satisfying with the supply from the company and very few members satisfied, dissatisfied. 8. All the dealers were saying the entire floor space were providing only for goods storing purpose. 9. Majority of the dealers satisfied with the mode of dispatch by the company. And few members were moderately satisfied, highly satisfied. 10. Majority of the dealers they estimate the demand for various products by the orders and followed by seasonal base and past sales. 11. All the dealers were saying they do not face any difficult in dealing with the company. 12.Majority of the dealers were saying about the fright it incurs 2% to receive goods from company to your stock point.

54

SUGGESTIONS

55

SUGGESTIONS

1. Provide opportunity for new entrants in the business. 2. To create awareness about the company, using of various ways of promotional activities such as advertisement, to maintain the better relation with dealers. 3. If possible increase the quality of the product and reduce the price. 4. Company and dealers should try to maintain customer good relationship as much as the possible. 5. Try to maintain better supply chain in order to improve the services. Supply the products with in time to the dealers. 6. Try to provide discounts to dealers and credit facilities. 7. Customers, who purchase the huge amount of products, provide free home delivery to customers place.

56

Questionnaire
Name of the shop : Name of the proprietor: District : Date Ph No : : Signature:

1) How long have you been dealing with ZUARI Cement? a)<1year b)below 3 years c) 3 to 6 years d) above 6 years

2) How do you feel the companies image? a) Highly satisfied b) Satisfied c) Neutral e) Others 3) According to you what makes customer more satisfaction in this field? a) Brand name b) Price c) Quality d) Usages e) Others d) Dissatisfied

4) How customers came to your shop? a) By your influence By brand name e) Others b) By friends c) By advertising d)

57

5) Do you face any difficulty in dealing with the customers? a) Yes b) No If yes please specify----------

6) Do you face stock out problems for ZUARI Cement? a) Frequently b) Rarely c) No

7) Are you satisfied with the supply from the company? a) Highly satisfied b) moderately satisfied Dissatisfied e) Highly dissatisfied c) Satisfied d)

8) How much floor space you have provide for ----------? a) Goods storing purpose------b) Office purpose------

9) In time delivery is very important for better serving the market. In this connection are you satisfied with the mode o dispatch by the company? a) Highly satisfied b) moderately satisfied Dissatisfied e) Highly dissatisfied c) Satisfied d)

58

10) According to you most of the customers are aware of ZUARI Cement through a) Advertisement Others 11) Do you satisfy with the sales of ZUARI Cement? a) Highly satisfied b) moderately satisfied Dissatisfied e) Highly dissatisfied 12) How do estimate the demand for various products? a) Past sales b) Seasonal c) Orders d) Others c) Satisfied d) b) Campaign c) Dealer d)

13) Do you face any difficult in dealing with the company? a) Yes b)No If yes please specify____________________________________ 14) What percentage of fright if incurs you to received goods from company to your store point? a) 2% b) 3% c) 4% d) 5%

15) Do you feel like to suggest any thing which improves distribution effectiveness? a) yes b) no

59

BIBLIOGRAPHY
Phillipkotler,2003Marketing Mgmt, T.M.H, New Delhi (9TH EDITION)
2.

1.

Schiffman&Kanuk,1997, Consumer behavior, PHI (6 T H EDITION)

3.

Levin & Kirpatric, Quantitative Techniques For M.B.A, Tata McGraw Hill-1985

Websites:
1. 2. 3. 4. 5.

www.marketing.org www.estrategicmarketing.com www.marketingprofs.com www.btobonline.com www.marketingstudies.net

Journals:
1. Economic Times 2. Business Standard

60

61