Jithesh Project TCL

A STUDY ON PREVAILING MARKETING AND DISTRIBUTION ADOPTED BY TCL
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CHAPTER 1
INTRODUCTION


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INTRODUCTION

1.1 BRIEF INTRODUCTION

The ancient Romans developed cement and concrete similar to the kinds used
today. They manufactured cement by mixing slaked lime (lime with water) with a volcanic
ash called Pozzuolana. People lost the art of making cement after the fall of Roman Empire
in AD 400s. In 1759, John Sneaton , a British Engineer found how to make hydraulic
cements by using blue lime with clay content and Pozzuolana from Italy. I. C. Johnson
produced Portland cement in 1845. Portland cement contains about 60% lime, silica and
5% alumina. Iron oxide and Gypsum make up the rest of the materials. In the plant the
materials go through a chemical process that consists of three basic steps namely crushing,
grinding, burning and finish grinding.
Cement was developed by Joseph Asp Din of England. He manufactured
commercially the improved quality of Portland cement in a country market kiln in the year
1848. Cement produced on 21
st
October 1854 was patented as Portland cement.
Cement Industry in India has made significant contribution to the countrys
economic development. This is obvious because most of the development activities of the
country involve construction works using cement. South Indian Industry Limited installed
the first cement industry in Tamil Nadu in 1904 and then onwards number of factories
manufacturing cement was started. In our country there are 51 companies and 99 plants
having installed capacity of manufacturing 700million KN of cement and with this
installed capacity, the Indian cement Industry is the largest in the world after China,
Russia, Japan and USA
Industrial era in Kerala and its beginning from the time of Sir C.P RamaswamyIyer, Diwan
of Travancore State during the pre-independence period. He knew that the cement is one of
the basis industrial needs for the speedy industrialization of the state and felt it is very
essential for the state to have atleast a cement factory. But lime stone deposits of the
required quality were not available to start a cement plant factory in travancore. However,
lime shells available in the backwaters offered in alternative of course a better source for

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calcium raw material. Sir C.P RamaswamyIyer induced the promoters of TCL for pulling
up cement plant based on the lime shell reserve. Thus the first cement plant starts its
operation on 7.12.1946 in Kerala.

1.2 OBJECTIVE OF THE STUDY
To find out the method of marketing strategies of the company.
To find out the method used for transporting goods and services form producer to
consumer.
To study about the market share of the Travancore cements products.
To study about the main competitor.
To get valuable suggestions from the dealers aptitude towards the products of
T.C.L.
To find out the role of channels of distribution both in case of organization and
customers.
To study the functions of dealers in marketing process.

1.3 SCOPE OF THE STUDY

The study conducted for the marketing and distribution practices of TCL, Kottayam.
Through this project the researcher attempt to find out the distribution channels and
marketing efforts of TCL. The study covers factors involved in the channels of distribution
benefits derived by the company through the channels of distribution, and methods used
for transporting goods and services.


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1.4 METHODOLOGY OF THE STUDY
Research comprises defining and redefining problems, formulating hypothesis or
suggesting solution, collecting, organizing and evaluating data at careful testing the
conclusion determine whether they fit the formulated hypothesis.

METHOD OF DATA COLLECTION

1.4.1 Primary Data:
Primary data have been collected through interview and discussion with the
concerned departmental heads of the company.

1.4.2 Secondary Data:
Secondary data are those data which are gathered for some other purposes and are
already available in the firms internal records and publications. They are mainly collected
from old report like annual report of the company, company brochure, company
documents, company journals and other manuals maintained by the company.

1.5 LIMITATIONS OF THE STUDY

The Travancore cements Limited consists of five major functional departments and
fifteen sub departments. Covering the entire areas of the department is a very difficult task
as there were limitations in time. Some of the data were treated confidential and hence it
was difficult to get the same. In addition most of the datas were collected through
interviews and so the information is subjected to the bias of the individuals. Time is main
constraint, because this project work is mainly meant for academic purpose and hence it
has to be completed within in the short period.


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CHAPTER 2

INDUSTRY PROFILE


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2.1 INDUSTRY PROFILE

CEMENT INDUSTRY IN INDIA

Cement industry in India has made significant contribution to countrys economic
development. This is because most of the development activities involve construction
works, which makes use of cement. It is an indigenous industry with local raw materials.
In 1904, the first cement industry was started. It was in Tamil Nadu. Since then, a
number of factories manufacturing cement were started.
In our country there are 51 companies and 99 plants having installed capacity of
manufacturing 700 million KN of cement. With this capacity, the Indian cement industry is
the fifth largest in the world after China, Russia, Japan and USA. Indian cement industry
accounts for about 4% of the world production.

Some of the important highlights of the Indian Cement Industry can be stated as follows:
1. The average capacity per kiln works out to be less than 17000 KN / day for the dry
process systems and 4000 KN / day for the wet process system.
2. The energy consumption is substantially higher than that in the plants abroad.
3. The protection activities require improvement and updating.
4. The new technologies i.e. high efficiency separators, roll processors, vertical roller
etc. have been introduced.
5. The per capita consumption in India is about 5 tonne, which is almost 1/4
th
of the
world average.
6. The requirements such as better packaging materials, bulk containers and ready mix
concrete technology deserves attention.

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

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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.

Major Domestic Players

Associated Cement Companies Ltd (ACCL):

Associated Cement Companies Ltd manufactures ordinary Portland cement,
composite cement and special cement and has begun offering its marketing expertise and
distribution facilities to other producers in cement and related areas. It has fifteen
manufacturing plants located throughout the country.

Birla Corp:

Birla Corp's product portfolio includes acetylene gas, auto trim parts, casting, cement, jute
goods, yarn, calcium carbide etc. The cement division of the company has seven plants,
with an installed capacity of 57.8 lakh tonnes. The company has two plants in Madhya
Pradesh, Rajasthan and West Bengal and one in Uttar Pradesh and holds a market share of
2.8 per cent. It manufactures Ordinary portland cement (OPC), portland pozzolana cement,
fly ash-based PPC, Low-alkali portland cement, portland slag Cement, low heat cement
and sulphate resistant cement. Large quantities of its cement are exported to Nepal and
Bangladesh.


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Century Textiles and Industries Ltd (CTIL):

The product portfolio of CTIL includes textiles, rayon, cement, pulp & paper, shipping,
property & land development, builders and floriculture. Cement is the largest division of
CTIL and contributes to over 40 per cent of the company's revenues. The company has an
installed capacity of 7.8 million tonnes. CTIL has four plants that manufacture cement, one
in Chhattisgarh, two in Madhya Pradesh and one in Maharashtra.

Grasim Cement:

Grasim's product profile includes viscose staple fibre (VSF), grey cement, white cement,
sponge iron, chemicals and textiles. With the acquisition of UltraTech, L&T's cement
division in early 2004, Grasim has now become the world's seventh largest cement
producer with a combined capacity of 45.7 million tonnes. Grasim (with UltraTech) held a
market share of around 16.7 per cent in 2008-09. It has plants in Madhya Pradesh,
Chhattisgarh, Punjab, Rajasthan, Tamil Nadu and Gujarat among others.

Ambuja Cements Ltd (GACL):

Gujarat Ambuja Cements Ltd was set up in 1986. In the last decade the company has
grown tenfold. The total cement capacity of the company is 18.5 million tonnes. The
company has a market share of around 10 per cent, with a strong foothold in the northern
and western markets. Gujarat Ambuja is India's largest cement exporter and one of the
most cost efficient firms.


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India Cements:

India Cements is the largest cement producer in southern India with three plants in Tamil
Nadu and four in Andhra Pradesh. The company has a market share of 5.4 per cent.

Jaiprakash Associates Limited:

Jaiprakash Industries, now known as Jaiprakash Associates Limited (JAL) is part of the
Jaypee Group with businesses in civil engineering, hospitality, cement, hydropower,
design consultancy and IT.

Madras Cements:

Madras Cements Ltd is one of the oldest cement companies in the southern region and is a
part of the Ramco group. The company is engaged in cement, clinker, dolomite, dry mortar
mix, limestone; ready mix cements (RMC) and units generated from windmills. The
company has three plants in Tamil Nadu, one in Andhra Pradesh and a mini cement plant
in Karnataka. It has a total capacity of 10 million tonnes annually and holds a market share
of 4 per cent.


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Mergers & Acquisitions

The globalisation of Indian cement industry has also encouraged many foreign cement
manufacturers to engage themselves in agreements and deals with their Indian counter
parts to enjoy a share of pie in the rapidly growing Indian cement market. These
engagements have been primarily through various mergers and acquisitions deals. Some of
the major M&A deals between domestic and foreign cement manufacturers in recent years
have been

Lafarge India:

It is a subsidiary of the Lafarge Cement Company of France. It was established in 1999 in
India with the acquisition of the Tisco and the Raymond cement plants. Lafarge currently
has four cement plants in India: two integrated plants in the state of Chhattisgarh, one
grinding station each in Jharkhand & West Bengal. Total cement production capacity of
Lafarge in the Indian market currently stands at around 6.5 million tons. The company
produces different types cements like Portland Slag Cement, Portland Pozzolana Cement.

Heidelberg Cement - Indorama Cement Ltd:

In March 2006, Heidelberg Cement Company entered into a 50:50 joint venture with the
Indorama Cement Ltd. Heidelberg Cement Company is the leading German cement
manufacturing company, which was setup in 1873. It has its operations in various countries
across the Globe. The Company has two manufacturing units in India - a grinding plant in
Mumbai and a cement terminal near Mumbai harbour.


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Holcim Cement - Gujarat Ambuja Cements (GACL):

Holcim Cement entered into a strategic partnership with GACL, in 2006, to acquire 14.8%
in GACL. Currently Holcim holds around 56% stake in the company. Holcim Cement
Company is among the leading cement manufacturing and supplying companies in the
world. It is one of the major employers in the world, having a work force of 90,000.The
Holcim Cement Company has units in excess of 70 countries all over the world.

Italcementi cement - Zuari Cement Limited:

In 2006, Italcementi Cement Company with the help of the Ciments Franais, a subsidiary
for its globalactivities, entered into an agreement to acquire shareholding of Zuari Cement
Limited, through a 50:50 joint venture. Italcementi Cement is among the
largest cement manufacturing companies in the world. The company entered
the Indian market in January 2001 when it acquired 50% of Zuari Cement
plant in Andhra Pradesh in southern India.

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2.2 ISSUES CONCERNING CEMENT INDUSTRY
High Transportation Cost is affecting the competitiveness of the cement industry.
Freight accounts for 17% of the production cost. Road is the preferred mode for
transportation for distances less than 250km. However, industry is heavily
dependent on roads for longer distances too as the railway infrastructure is not
adequate.
Cement industry is highly capital intensive industry and nearly 55-60% of the
inputs are controlled by the government.
There is regional imbalance in the distribution of cement industry. Limestone
availability in pockets has led to uneven capacity additions.
Coal availability and quality is also affecting the production.
Shortage of raw materials.

2.3 OUTLOOK

Outlook for the cement industry looks quite bright. Given the sustained growth in
the real estate sector, the government's emphasis on infrastructure and increased
global demand, it looks as if the juggernaut of cement industry would continue to
roll on the path of growth.


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CHAPTER 3
COMPANY PROFILE


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COMPANY PROFILE

The Travancore Cements Limited was incorporated in the year 1946. The year of
commencement of grey cement is 1949. The licensed capacity of the plant is 50,800
Tonnes per annum. The master mind behind the setting up of this factory was Late Sir. C.
P. RamaswamiIyer, who was the then Divan of Travancore, and he realized the vital role of
cement in the industrial development of Kerala. The company was made with M/s F. L.
Smidth& Co, Denmark. During 1959, the company diversified into the production of white
Portland cement. The capacity for the production of white cement is 30,000 Tonnes per
annum. Till 1974 the company was manufacturing both white and grey cement in the same
plant, disturbing the production of two over certain period in a year. Since 1974, the
company started manufacturing white cement alone, as the demand for white cement went
up.
During the last 58 years of its existence, TCL has diversified its activities into
related areas. Besides super Shelcem brand cement paint, the company has added to its
product range namely the Sheltex Acrylic Emulsion paint and Shell prime cement primer.
The Travancore Cements Limited is the only manufacturer, perhaps in the whole
world, producing white cement from a raw material other than conventional lime stone.
The main raw material of TCL is the lime shell, which is dredged out of Vembanad Lake,
one of the back waters in Kerala. The company has successfully executed a diversification
project for manufacturing grey cement during the year 2000, with a capacity of 66,000 NIT
per annum


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3.1 HISTORY

The Travancore Cements Limited was incorporated in the year 1946. The year of
commencement of business was also 1946. The company started manufacture of Grey
Cement in the year 1949. The licensed capacity of the plant was 50,800 tons of Cement per
annum.
The mastermind behind setting up of this factory was that of late Sir C.P.
RamaswamyIyer, the then Diwan of Travancore, who had realized the vital role of cement

in the industrial development of Kerala. The company was promoted by the state of
Travancore, in association with Tamil Nadu. Later the Government of Kerala acquired the
company with a share of 51.33% and about 33.33% share with the Super Pharma Private
Ltd., which belongs to the company group. The share of the company has been listed in the
stock exchange of Cochin & Chennai.
The company was promoted by M/s Essel Ltd., Mumbai and Technology tie up was
made with M/s F. L. Smidth& Co. Denmark.
The Travancore cements Ltd. Is one of the first project making cement companies
in Kerala.TCL is the only public sector (Kerala Government undertaking), which
manufactures and market white cement and cement paints.
During 1959, the company diversified into the production of white Portland
cement. The installed capacity for the production of White Cement is 30000 tonnes per
annum. Till 1974, the Company was manufacturing both White Cement and Grey Cement
in the same plant, distributing the production of the two, over certain periods in a year. In
1974, the company switched over to the exclusive manufacturing of White Cement, as the
demand for White Cement went up and the government of Kerala took over the
management of the company which was firstly under private management. At that time it
had monopoly over the marketing.
During the last 54 years of its existence, TCL has diversified its activities to related
areas by adding ''Vembanad' brand ordinary Portland cement, 'Super Shelcem' brand
Cement Paint and 'Shelprime' dry Cement Primer besides 'Sheltex' Acrylic Emulsion Paint
for interiors and exteriors to its products range.

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The Travancore Cements Limited is one of the only two companies in the world
manufacturing White Cement from a raw material other than conventional limestone. The
other company is in South California, U.S.A. The main raw material of TCL is lime shell,
which is dredged out of Vembanad Lake, one of the backwaters of Kerala; hence the brand
name is Vembanad White Portland Cement. As it does not contain any magnesium oxide,
the White Cement made out of lime shell is highly durable and superior in quality.
The Travancore Cements Limited employed the wet process technology on the
fully imported machinery of F. L. Smidth& Co. Denmark. Wet process facilitates total
homogenization of raw materials and thus ensures high consistency in quality. As a result
of this, Vembanad White Cement is having higher whiteness, durability, strength and
quality.

3.2 LOCATION
The cement plant of TCL is situated on the bank of Kodoor River and on the side of
the State Highway, M.C. road, and 4km away from the town of Kottayam in Kerala. The
typical Location of the plant makes it accessible by road as well as by water.

3.3 MILESTONES
Started the production of Vembanad Grey cement from lime shell in August
1949.
Started production Vembanad White Cement from lime shell in 1959
Grey Cement production stopped in 1976.
Diversified into Cement paint- Super Shelcem production in 1977.
Celebrated Silver Jubilee in 1982.
Became a Government Company in April 1989.
Celebrated Golden Jubilee in 1997.
Launched Dry Cement Primer 'Shell prime' in January 2000.
Diversified into Acrylic Emulsion Paint Sheltex for exteriors & interiors in
April 2000.
Diversified into Grey cement production from brought out clinker in 2000.


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Became an ISO 9002 company in December 2000.
Company started an HRD center in 2002
Launched Vembanad Wall Care Putty in 2008

3.4 OBJECTIVE OF THE COMPANY

The main objective of the company is engaged in the production of Vembanad White
Portland Cement. It is the first and foremost product of TCL, which is the best white
cement available in the country in its quality. Now the company is also engaged in the
production of cement paint known as Super Shelcem, which is available in a wide range
of colors of 24 shades.

3.5 COMPETITORS

Super snowcem
Dukecem.
Surfacem.
Acc white cement.
Birla white cement.
J.K white.

Promoters Of The Organization
The company was run under the private management until 1974. Subsequently the
government of Kerala took over the management. Now the government is holding 50.13%
of the equity share capital. The Pyramid group of company is holding another 25% of
shares and the remaining shares are held by general public.


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3.6 VISION AND MISSION

Vision Statement

To be a leader in the Indian Cement industry and providing customer delight and
enhancing shareholders value.

Mission Statement

Having a unique role in the Heavy Industry sector of the country, TCL is
committed for catering the society towards the specific need expected by producing quality
product at a customer friendly price while keeping sustained growth of the organization
and total growth of the society.

To enhance the companys shareholder value.
Employee satisfaction.
Revenue growth.
Strength supply chain management.
High volume, high market share, cost effectiveness in all segments.
High quality technology and superior products.
Consistent production through harmonious industrial relations.
Competitive advantage.
To widen the distribution network and strengthen the field service
organization.

3.7 PRODUCT PROFILE

The Travancore Cements Ltd is producing four types of products and they are: White
Portland cement under the brand name VEMBANAD , cement paints with a range of 40
shades under the brand name SUPER SHELCEM, cement paint primer under the


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brand name "Shel Prime", Emulsion paint under the brand name "SHELTEX" and
wall putty ender the brand name VEMBANAD WALL PUTTY

1. Vembanad White Portland cements
. TCL manufactures the best white cement in the country and its quality is at
par with that of the best available in the world market. This can be attributed to the fact
that Vembanad white cement is manufactured using lime shells and it accounts for its

superior whiteness as compared to other brands. Today the company enjoys the highest
8042 e-1976specification. White cement is quick drying; possess high strength and
superior aesthetic values. It is used for floor finish, plaster and ornamental works.

2.SuperShelcem Cement Paint

The Travancore Cements Ltd started manufacturing cement paints under the brand
name Shelcem during 1977. It was rebranded as Super Shelcem in 1986. Super
Shelcem is a unique technology formulation with the most durable Vembanad white
cement. It is an intimate mixture of Vembanad white cement, water proofing fungicides.
Cement paint is water based paint widely used for painting buildings, both components an
oxide extender, non fading oxide pigments, hardening agents and exterior interior.
Shelcem, unlike other cement paints, does not require water curing after first and second
coat. Only initial wetting of the surface is necessary. This makes Super Shelcem ideal for
exteriors of multi storied buildings and sky scrapers. Super Shelcem carries ISI marks and
is available in a wide range of colours of total 40 different shades in the market.

3.Shell Prime Dry Cement Primer

In order to mark the new millennium, the Travancore Cements Limited
launched a new product, cement paint primer under the brand name "Shel Prime". It is
a dry cement primer available in 1kg. Packets. The range is Rs.25/Kg.


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4. Sheltex Emulsion Paint

The company launched another new product "Sheltex" cement paint. It was
launched in April 2000. The basic raw materials include acrylic based pigments and
bonding chemicals (Titanium compounds). It is used for both exterior and interior
painting purposes. The product is available in 2 packages 11 litersand 4 liters.

5. Vembanad Wall Putty

Vembanad wall putty has more coverage than any other dry wall putty in the
market. The object of the company will be to offer putty of the highest quality, giving the
smoothest finish, highest coverage and durability. It is available in 20 kg and 5 kg
packing.

3.8 ORGANISATION STRUCTURE

When we look to this organization we can see it is consisting of different department and
also each department have departmental heads. The service manager is responsible for
dredger, civil and sanitary, water and general transport, workshop, and electrical
departments. The production department is responsible for the department of white cement
plan, kiln, packing house, shelcem, lab and quality control. The maintenance manager is
responsible for marketing control, purchase and store and shelcem department. The finance
manager is responsible for the department of accounts. Finally the secretary is responsible
for the time office, personnel department, medical department, and office and guesthouse.

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3.9 DEPARTMENTS
Departmentalization is a method of arranging activities to facilitate the
accomplishment of organizational objectives. The organization process of determing how
activities are to be grouped is called department. The departments show the horizontal
different of an organization.

The main departments are:
MARKETING DEPARTMENT
FINANCE DEPARTMENT
PERSONNEL DEPARTMENT
PURCHASE DEPARTMENT
PRODUCTION DEPARTMENT

The Board of Directors consists of five persons of which one is full time Managing
Director. Under the Managing Director we have: Service Manager, Production Manager,
Maintenance Manager, Financial Manager and Secretary. The service manager is
responsible for departments of dredger, civil and sanitary, water and general transport,
workshop and electrical. The production manager is responsible for the departments of
white cement plant, kiln, packing house, Shelcem, lab and quality control. The
Maintenance manager is responsible for the departments of marketing control, purchase,
store and Shelcem. The finance manager is responsible for the departments of accounts.
Finally the secretary is responsible for the time office, personnel department, medical
department, and office and guest house.

A) MARKETING DEPARTMENT

TCL has a well established marketing department. There is an efficient sales force
which is under the Marketing Manager. The whole system comes under the General
Manager. TCL has got 14 sales representatives throughout Kerala.


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B) FINANCIAL DEPARTMENT

The finance department maintains all the accounts of the various departments in an
organization. It is the duty of the finance department to receive money and make payments
on behalf of the company. It also prepares the annual budget according to which the
expenses of the company are monitored. The finance department is a vital part in an
organization, as without finance the day to day activities of the company will not function
in a smooth and rapid way. It is the core of the organization. The cash section and account
section also forms part of finance department. The recording of day -to-day transactions
routine functions like sales tax, payments and receipts of cash, Cheque etc comes under the
purview of accounts section. The accounts section also undertakes the employees payroll
function. The cash section deals with the disbursement of cash.

C) PERSONNEL DEPARTMENT
It is the department that is connected to other departments in TCL. This department
is headed by Joint General Manager. Under him Joint Chief Manager followed by Junior
Executive and Office Assistants. This department does the recruitment and selection of the
personnel. Another important function of the personnel department is to look into the
welfare of its employees. Time office comes under this department. The function of the
time office is to maintain leave register, attendance making, over time confirmation etc.
The above data is forwarded to the accounts department for accounting the wages of the
employees.

D) PURCHASE DEPARTMENT

Purchase department helps in the purchase of raw materials and other things
required for production. They are the people who decide from where to purchase, how to
purchase, when to purchase and what to purchase.


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E) PRODUCTION DEPARTMENT

The production department is the heart and soul of the TCL. It is here that white
cement and cement paint are produced. The uniqueness of white cement products is that
produced from the lime shell, extracted from Vembanad Lake. This gives the cement much
more whiteness compared to other brands. The major raw material is lime shell.
The production department is the heart and soul of TCL. The company produces
white Portland cement and cement paints. The production and service department controls
and coordinates the production process. The production can be divided into three stages
namely: The slurry preparation, Clinker making and grinding. The numbers of workers
employed in these stages are 75 with 17 in shift basis.

SUB-DEPARTMENTS

a) GENERAL STORE
General stores are the department for storing the raw materials. The materials are
collected as per the order made by the department, which is known as purchase order.

b) MAINTENANCE DEPARTMENT
The company has 1 workshop under the control of the mechanical maintenance
department. All machinery works and repairs are undertaken in the workshop.46 members
are there in the workshop.

c) ELECTRICAL DEPARTMENT
This department deal with all the works connected with the electrical equipment,
power links and other allied activities. Consumption of electricity per day is 20000 units.
The electricity bill in a month is Rs 25 lack. If the plant is not working or functioning the
company has to pay Rs 3 lack. This is a fixed charge set by the government. The
company has its own substation for power supply.


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d) QUALITY CONTROL DEPARTMENT

Unlike other government organizations, where quality is secondary, at TCL quality is
being given the prime position. The ISO 9002 certification is a proof for enduring the
quality commitment of TCL. TCL has its own laboratory which continuously striving to
maintain the quality of the products. There are three levels of testing conducted in the
laboratory like raw material testing, process testing, and intermediate testing.

e) TRANSPORTATION DEPARTMENT

Free transportation facilities are given to the staff to come to the office. For the
purpose the company has two buses of their own. It is available to workers in all shifts.If a
person purchases one of the products from the company, free transportation facilities are
provided for bringing the same and he will get it at the premises of his house.
f) PACKING HOUSE
Here cement is drawn from storage spoils and packed in the paper bags by
automatic machines and dispatched.
.
g) WORKSHOP
The company has one workshop under the control of the mechanical maintenance
department. The maintenance and repairing of machinery spare parts, pipe line, oil line,
vehicle etc. are undertaken in the workshop. Fitter, Automobile section, Diesel mechanic
section, Welder, Turner, Blacksmith, Carpenter, Khalasis, Tool section are the nine
different sections in the mechanical maintenance department.


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h) DREDGING DEPARTMENT

The main raw material for the production of Vembanad White Cement is lime
shell an underwater deposit in Vembanad lake, is dredged and brought to the company by
means of power barges. The company has two dredgers, one hydraulic dredger named
Lokanathan of 5000 gallon capacity and one mechanical dredger, Rudger of 2000 gallions
capacity. The dredger can cut the lime shell around 40 ft. maximum depth. The dredger
works on two powerful engines, a dredger pamper engine and an auxiliary engine.

i) CEMENT PAINT DEPARTMENT
Super Shelcem is a self curing cement paint manufactured by the TCL. It is an
intimate mixture of Vembanad White Cement. Water proofing components, an oxide
extender, non fading oxide pigments, hardening agents and fungicides. It contains more
White Cement than any other Cement Paint in the country. Super shelcem, unlike other
cement paint doesnt require water curing after first and second coat.

j) SECURITY DEPARTMENT
The department is mainly concerned with the security and control of the
company. There are 28 employees working in the security department on shift basis.

k) TIME OFFICE
Time Office comes under the personnel department. The main function of the
office is to maintain attendance register and calculate the monthly working hours of each
employee. The company follows punch card system for measuring attendance.

l) MEDICAL DEPARTMENT
This department provides medical aid to both permanent and temporary
employees. The medical leave of the employees is recorded and sanctioned from this
department.


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CHAPTER 4
RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN:
The research design is the conceptual structure within which the research is conducted. It is
actually the blue print for the collection and analysis of data .The design chosen for this
study is descriptive research design. A descriptive research involves gathering data that
describe events and then organizes, tabulates, depicts and describes the data. It often uses
visual aids such as graphs and charts to aid the reader.
4.2 RESEARCH APPROACH:
As the total number of employees in the organisation is large, a census survey was
impractical and hence the researcher opted for a sample survey.
4.3 RESEARH INSTRUMENT:
The researcher used a questionnaire for collecting the required information. A structured
questionnaire was developed to collect the data from the employees. The questionnaire
consisted a total of 20 questions which was rated on a five point scale.

4.4 METHODOLOGY OF THE STUDY
Research comprises defining and redefining problems, formulating hypothesis or
suggesting solution, collecting, organizing and evaluating data at careful testing the
conclusion determine whether they fit the formulated hypothesis.


29
METHOD OF DATA COLLECTION

4.4.1 Primary Data:
Primary data have been collected through interview and discussion with the
concerned departmental heads of the company.

4.4.2 Secondary Data:
Secondary data are those data which are gathered for some other purposes and are
already available in the firms internal records and publications. They are mainly collected
from old report like annual report of the company, company brochure, company
documents, company journals and other manuals maintained by the company

4.5 SAMPLING PLAN:
4.5.1 Sampling Unit: The dealers of TCL
4.5.2 Sampling: Sampling size for the study was 65 dealers

4.5.3 Sampling Procedure: It is the systematic way of choosing the samples from whom
the researcher wants to collect information. There are about 400 dealers in Kerala. Out of
those 400, 65 dealers were selected on a random manner and conducted market research

4.6 Research Period: The study was conducted in May During this time the researcher
went to study about the dealers attitude with the help of a questionnaire and conducted a
face to face conversation.


30

CHAPTER 5

REVIEW OF RELATED LITERATURE


31

5.1 MARKETING

GENERAL INTRODUCTION
Marketing is as old as mankind. Educational Institutions trying to attract students, actors
promoting films, politicians seeking votes, Insurance agents selling new policies are
examples of marketing in practice. Business need to practice marketing for achieving
growth and generating profits to survive. Marketing is the process of finding consumer
needs and serving those needs profitably. Thus customer is the heart of marketing
activities. Marketing people is involved in Marketing 10 types of entities: - goods,
services, experiences, events, persons, places, properties, organizations, information and
ideas.

DEFINITION OF MARKETING:

Some definitions of marketing are: -

Marketing is the process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational goals.

---American Marketing Association

Marketing is a societal process by which individuals and groups obtain what they need
and want through creating, offering and freely exchanging products of services and of
value with others.

---Philip Kotler


32

CORE MARKETING CONCEPTS:-

Needs, wants & demands:-

Needs are basic human requirements. We need food, air, water, clothing and shelter to
survive. People also have strong need for recreation, education and entertainment. Wants
are needs directed towards specific objects- e.g. A South Indian needs food but wants Idlis,
Dosas & Sambar. A North Indian needs food but wants Rotis, Sabjis etc. Demands are
wants for specific products backed by an ability to pay.

Market: -

Traditionally, a market was a physical place where buyers and sellers gathered to buy and
sell goods. Economists now describe a market as a collection of buyers and sellers who
transact over a particular product or product class (the housing market or grain market); but
marketers view the sellers as constituting the industry and the buyers as a constituting the
market. The term market can also be used to cover various groupings of customers such as
need market (the diet seeking market), product market (The shoe market), demographic
market (The youth market), and geographic market (The Asian market) or the concept may
also be extended to cover other markets such as money market, forward market etc.
Depending on the focus of marketer we can classify the markets as consumer markets, e.g.
(FMCG markets), Industrial markets i.e. business buyers buying goods in order to make or
resell a product to others for profits, non-profit market (organizations like Churches, Non
government Organizations involved in social causes etc.) or global (International) market.

Target markets and Segmentation:--

Market consists of heterogeneous buyers who might prefer or require different product and
services. Marketer identifies and profile distinct groups of buyers requiring varying
products and services. Market segments can be identified by examining demographic,
psychographic and behavioural differences among buyers. The marketer then decides
which segments present the greatest opportunity, which are its target markets. For each
chosen target market, the firm develops a market offering.(The combination of products,
services, information and experiences).The offering is positioned in the minds of the target

33
markets as delivering some central benefits for example, Videocon offers electronic
appliances for price-conscious customers; and thus positioned as value for money
products.

Market place, Market space and Meta market:-

Market place is physical place where buyers and sellers meet e.g. Store; Market space is
digital as when one goes shopping on the Internet, Meta market is a cluster of
complementary products and services that are closely related to the minds of customers but
are spread across diverse set of Industries e.g. the automobile meta market consists of
automobile manufacturers, new car and used car dealers, financing companies, Insurance
companies, mechanics, spare part dealers, Service shops, auto magazines, classified auto
ads in newspapers, auto websites on the internet.

Value and satisfaction:-

Value can be defined as a ratio between what customer gets and what he gives. The
customer gets benefits and assumes cost. The benefits include functional benefits and
emotional benefits. The costs include monetary costs, time costs and psychic costs. The
value is given as

Value = Functional benefits + Emotional benefits
Monetary cost+ Time cost+ Energy cost + Psychic cost

Exchange and Transaction:-

Exchange is the process of obtaining something from someone by offering something in
return. For exchange five conditions must be satisfied

There are at least two parties.


34
1. Each party has something that offers value to the other party.
2. Each party is capable of communication and delivery.
3. Each party is free to accept or reject the exchange offer.
4. Each party believes it is appropriate to deal with the other party.

MARKETING AS A VALUE DELIVERING PROCESS: --

The success of the firm depends upon its ability to deliver better value to the customer than
its competitor. Marketing can be seen as the value delivering process. The value creation
and delivery sequence can be divided into three phases. The first phase, choosing the value
includes segmentation, targeting and positioning i.e. dividing the heterogeneous market
into homogeneous segments, identifying target markets and developing offerings value
positioning i.e. position the product as delivering central benefits most sought after by
target market. The second phase is providing the value. This involves identifying product
features, pricing and distribution. The third phase is communicating the value by utilizing
the sales force, sales promotion, advertising, and other communication tools to promote the
product. Each of these phases adds cost and provides benefits. Value delivery process
begins before there is a product and continues while it is being developed and after it
becomes available.

Marketing Mix

Marketing mix, simply stated, is the process of designing and integrating various elements
of marketing in such a way to ensure the achievement of enterprise objectives. The
elements of marketing mix have been classified under four heads- product, price, place,
promotion. That is why marketing mix is said to be a combination of 4 Ps.
Marketing mix involves decisions regarding products to be made available, the price to be
charged for the same, the incentives to be provided to the consumers in the markets where
products would be made available for sale. These decisions are taken in the influence of
marketing forces outside the organization. These 4Ps are:


35

1. Product: refers to a physical product or a service or an idea which a consumer
needs and for which he is ready to pay.

2. Price: price is the amount charged for a product or service.

3. Place: place consists of decisions relating to channels of distribution and physical
distribution.

4. Promotion: refers to using methods of communication with two objectives:
(i) Informing the existing and potential consumers about a product, and
(2) To persuade consumers to buy the product. It is an important element of
making mix. In the absence of communication, consumers may not be aware of the
product and its potential to satisfy their needs and desires. Promotion mix is also
known as marketing communication mix.


36


37

The marketing communications mix is the specific mix of advertising, personal selling,
sales promotion, public relations, and direct marketing a company uses to pursue its
advertising and marketing objectives.

Advertising: any paid form of non-personal presentation and promotion of ideas, goods,or
services by an identified sponsor.

Personal selling: personal presentation by the firms sales force for purpose of making
sales and customer and building relationships.

Sales promotion: short-term incentives to encourage the purchase or sale of a product or
service.

Public relations: building good relationships with the companys various publics by
obtaining favorable publicity, building up a good corporate image and handling or
heading off unfavorable rumors, stories and events.

Direct marketing: direct communications with carefully targeted individual consumers to
obtain an immediate response and cultivate lasting customer relationships.


38

Marketing
communications mix
Personal selling
Public relations
Direct marketing
Advertising
Sales promotion

39

5.1.1MCKINSEYS 7S FRAME WORK

The 7-s framework of McKinseys is a management model that describes seven factors to
organize a company in holistic and effective way. Together these factors determine the
way in which a corporation operates. Managers should take into account all seven of these
factors, to be sure of successful implementation of a strategy, large or small. They are all
interdependent, so if you fail to pay proper attention to one of them, this may affect all
others as well. On the top that, the relative importance of each factor may vary over time.

The 7-s model provides a useful framework for analyzing the strategic attributes of an
organization. This framework has helped various consultants in their duties of many
companies. The most interesting fact is that this model is a similar to managerial functions
that are widely followed i.e. planning, organizing, staffing, leading and controlling.
This model shows the how all the elements of the organization goals are interrelated with
each other. The Mckinsey 7S model involves seven interdepentent factors which are
categorized as either hardor soft elements: strategy, systems, shared value, skills, style
and staff.

Hard elements are easier to define or identify and management can directly influence
them: These are strategy statements; organization charts and reporting lines; and formal
processes and IT systems.


40
Soft elements, on the other hand, can be more difficult to describe, and are less tangible
and more influenced by culture. However, these soft elements are as important as
important as the hard elements if the organization is going to be successful.

a. Strategy: the plan devised to maintain and build competitive advantage over the
competition.

b. Structure: the way the organization is structured and who reports to whom.

c. Systems: the daily activities and procedures that staff members engage in to get
the job done.

d. Shared values: called super ordinate goals when the model was first developed,
these are the core values of the company that are evidenced in the corporate
culture and the general work ethic.

e. Style: the style of leadership adopted.

f. Staff: the employees and their general capabilities.

g. Skills: the actual skills and competencies of the employees working for the
company.


41

structure
systems
Strategy
skills style
staff
Shared
values

42

5.1.2 Mc Kinseys 7S frame Work with reference to Travancore
cements.

4 STRATEGY
Strategy can be defined as the choice of direction of that company adopts to
achieve its objectives in a competitive situation. It is the first step that the company has to
take in leading its organization to the ladder of success. The competitive advantage for the
company can by keeping in mind the following points.

Strategy persuaded by Travancore cements:
1. Production of good quality products
2. Usage of lime shell instead of lime stone
3. Packing on demand of product to enhance quality
4. Giving trade discounts to the dealers based on performance
5. Giving credit on sales to the dealers
6. Giving good facilities to the employees
7. Sales of product through marketing executives
8. Quick delivery of product to the dealers
9. Using of cheap transportation means like water transportation and rail
transportation of the product

5 STRUCTURE
Structure refers to the organizational arrangements for performing the tasks and activities.
The structure could be functional, regional, product wise etc.it also establishes the
relationship between various functions.

43
Organization structure defines how the task is to be allocated, who reports to who, and
formal coordinating mechanism and interaction pattern that will be followed.
Travancore cements has a well structured system with clear departmentalization of various
functions to enhance better flow of information. The major departments in the TCL are
production department, sales department, purchase department, personal department,
finance department and maintenances department.
TCL is having sales offices and godown at Bangalore, Coimbatore, Calcutta and Delhi.
Transport is through trucks and railways wagons to distant places; regional office is
situated at Trivandrum. The production and security employees are having 3 shifts for their
work and other department employees are having day time work only.
The company is located in such a place that the transportation of the products and the raw
materials is much easier and cost is also less. The general transportation used by the
company are road, rail and water ways.

6 SYSTEM
System refers to all the rules and regulations and procedure both formal and informal that
complement the organizational structure. Systems apply to many aspects of the firm. The
system model of management shows that communication is needed for carrying out the
managerial functions and for linking the organizational with its external environment
system is most offers used with reference to MIS and marketing information system. The
effective day-to day running of business requires the speedy collection, collection,
collation and flexible retrieval of information.
Recruitment is done through direct application and through employment exchange.
Selection is mainly based on written test and interview. The selected person will have to
undergo a period of training.

7 STYLE
The style of the organization refers to the management style of the organization, the
decision making style. The relationship of the different branches in this regard will be

44
considered under the head of the style. The style of the organization will depend on the
type of the organization because the style differs from the public sector and private sector.
Reporting relationship may also convey the style of the organization. In some
organizations quality control function is embedded in the manufacturing function, but in
others it is a separate function directly under the chief executive officer.
In Travancore cements the higher level decision are taken by the junior level and higher
level managers.

8 STAFF
Staff is considered as a pool of resources to be nurtured, developed guarded and allocated.
There is a wide spread spectrum ranging from the hard end to the soft end. One of the key
challenges is to make use of and to develop a group of faculty members characterized by
heterogeneity in the terms of competencies, styles and interest. Individually or as group,
the staff must possess skills in problem solving, teaching and opportunity findings,
developing learning methods, conducting study and opportunity finding, developing
learning methods and research reports. Effective staffing policy would promote joy in
work, which is very important in attracting competent individuals and assuring quality
improvement.

9 SKILLS
The term skill includes those characteristics that most of the people use to describe
company. Skills capture a companys crucial attributes or capabilities. Companies are
usually characterized not by their strategies or their structures, but by what they do best.
This distinction is important because organizations facing big discontinuity in their
environment often must do more than shifting their strategic focus. People in an
organization need various skills such as managerial, engineering, application technology,
science etc., in the organizational content people also need business skills, such as
marketing, finance and planning etc.
In Travancore cements, the employees are well skilled to carry the various departmental
functions assigned to them. The employees are given training in advance to make them
comfortable with all the equipments used for the production purposes. Other nontechnical

45
jobs are given on job training to enhance skill. For the appointment in higher experience in
the same job profile for definite period of time is required, which ensures the skill.

10 SHARED VALUES
A set of values and aspiration, often unwritten, that goes beyond the conventional formal
statement of corporate objectives. They are the starting on system development. Shared
values work if the drive for their accomplishment pulls an organization together and if they
provide stability in organization dynamics. It has been observed that shared values do not
seem to be present in all, or even most, organization.
The value which exist in reliance are,
No discrimination for race, religion, decision making and actions.

To develop a sense of respect for oneself in others mind.

If any of the staff do theft, fraud work or anything against company policy they will
be terminated from the job after proper investigation.

5.2 CHANNELS OF DISTRIBUTION

In the modern marketing environment, production and distribution have become very
complex. Goods are produced in a factory place where as consumers are scattered
throughout the country and abroad. Under these circumstances, the producer will not be
able to sell the goods directly to the ultimate consumers. The reasons are many, the
producers lack financial reasons, he has to maintain large sales force, problem of
management control arise, instead of spending a lot of time and energy on distribution, he
can concentrate on promotion and so on. So he has to depend on intermediaries for the
physical distribution of his goods.


46

According to American marketing association A channel of distribution is a structure of
intra company organization units and extra company agents and dealers, wholesale and
retail through which a commodity, product or service is marketed. A channel of
distribution is an organized network or a system of agencies and institutions which, in
combination, perform all the activities required to link producers with users and users with
producers to accomplish the marketing task.

In other words, it stands for the path and route traced in the direct of indirect transfer of
title to a product; as it move from a producer to the ultimate consumer or industrial users.
Thus, a channel of distribution is a path way directing the flow of goods and services
from producers to consumers composed of intermediaries through their functions and
attainment of the mutual objectives.

Distribution is the act of carrying goods and services from the producer to the consumer. It
consists of an operation or series of operation which physically brings the goods from the
producer in to the hands of the final user. Good have no value if they simply lie in the
down of the manufacture. They must be made available to the consumers. Various
agencies are involved in the movement of goods from the plant to the consumer. The term
distribution collectively refers to all the acts or serves rendered by various agencies.

Distribution is an integral part of the mark by process. Its future is to distribute or
subdivide. The total products of a production on a geographical basis to various speeches
markets.

The word channel is derived from the French word cannal. The channel of distribution
thus refers to the path way taken by the goods as they flow from the point of production to
the point of consumption. A channel of distribution consists of various specialized
institution or agencies are called middleman.

47

5.2.1 IMPORTANT BENEFITS OF DISTRIBUTION

Distribution has enabled the consumer to satisfy their wants. It has created place,
time and possession utilities.

It has brought in to existence, the service of the bankers and insures.

Easy distribution of goods.

Demand creation.

Better availability of products.

Means of communication and transportation have developed.

Problems of scarcity and famine in certain areas are solved by effective
distribution.

Scope for specialization and division of labour have enlarged. It has offered gainful
employment opportunities to millions of persons.

Total wealth production of the world has increased.


48

5.2.2 CLASSIFICATION OF CHANNELS

The trade channels are classified as to conventional and non-conventional or non-
integrated with further classifications.

Conventional Non - conventional

Direct indirect Vertical horizontal

constractual Administered corporate

Channels of distribution

49

5.2.3 TYPES OF INTERMEDIARIES

Merchant middlemen
Merchant middlemen are those who take title to the goods and channel step to the next
channel step in the pipeline. These merchant middlemen are broadly classified as
wholesalers and retailers.

Wholesalers
Wholesale trader is one whole sale to other middlemen institutions and individuals usually
in fairly large quantities.
According to ammerican management association, wholesalers sell to retailers or other
merchant and or individual institutional and commercial users but they do not sell in
significant amounts to ultimate consumers.

FUNCTIONS
1. Assembling and buying
Assembling implies the collection of small lot of scattered agricultural production
for economic bulk buying. Buying comprises of the activities of selection of
manufacturers and placing orders on them and making special purchase in case of
seasonal products.

2. Warehousing
Warehousing or storing is closely related to the function of assembling. This
involves capittal lock-up plus risks.


50
3. Transportation
In the process of assembling and warehousing and resale, wholesale do undertake
transportaion of goods from producers to their warehouses and back to the retailer.

4. Financing
Wholesales undertake marketing financing.

5. Risk bearing
Channels helps to reduce the risk of producers and shares the risk of the producers.

6. Grading, packing and packaging
Grading is another function of wholesaler where by they sort-out the stocks in form
of differing size, qualites, moisture-contents and so on.

7. Market information
Wholesalers are the vital link between the retailers and the manufacturer.
Retailers

Retailer is one whose business is to sell to consumerr a wide variety of goods which are
assembled at this premises as per the needs of final users. Professsor willam staton defines

retail trade as retailing includes all activities directly related to the sale of goods and
services to the ultimate consumer for personal or non-business use

FUNCTION

1. Buying and assembling
Retailer has to assemble products from different manufactures and wholesalers as
he has to keep wide variety of stock of products to meet the varied and small
requirements of large number of customers.


51

2. Warehousing
Warehousing or storing is closely related to the function of assembling. This
involves capittal lock-up plus risks.

3. Selling
Final aim is to sell the products to the customers or those who want the product.
Retailer is rightly called as the buying agent of consumer.

4. Risk shouldering
Risk- shouldering is the basic responsibility of a retailer arising out of physical
deteriorations and changes in prices.

5. Grading and packing
Grading is another function of wholesaler where by they sort-out the stocks in form
of differing size, qualites, moisture-contents and so on.

6. Financing
In the whole scheme of marketing, the contribution of retailers is really worth
emphasizing in so far as consumer financing.

7. Advertising
Retailer are the best agents to advertise the products, service and ideas.

8. Supply of market information
Retailers really enjoy enviable position in so far collection information from the
horses mouth.


52
Agent midlemen
Agent middlemen are as important as merchant middelmen. Agent middlemen are those
channel components who help in the transfer of goods from the hands of producers to the
hands of ultimate users without acquiring the ownership of these goods.

THE TYPES OF AGENT MIDDLEMEN

1. Commission Agent
He buys and sells goods for his principles in return for a commission. He may or
may not buy in his name but he does not assume any risk. He get a fixed rate of
commission for the business done.

2. Brokers
Brokers is an agent who is employed to make bargains and contracts in matters of
trade, commerce or navigation, between two parties for a compensation known as
brokerage.

3. Factors
Factors are an agent employed to sell the goods or merchandise consigned or
delivered t o him by or his principals for compensation.

4. Auctioneers
Auctioneers are the legal of the seller till the goods are knocked down to the
highest bidder. He is the intermediary between the buyer and seller. The products
like white cement, putty, super shelcem are commonly sold by auction.

5. Selling agent
Selling agent are the intermediaries who are given the exclusive franchise only for
a limited market segment.


53

5.2.4 CHANNEL LEVELS
The physical movement of goods starts from the centers of production to the centers of
consumption that is production to the consumers. Channel level implies the route that
connects the producer and the consumers. It speaks of the intermediaries both owner and
agent between the producer and consumers.

a. Channels or channel levels for consumers goods

1. Manufacture consumer
It is zero level channels because no intermediary is involved between the
producer and the consumer. That is there is direct link between the producers
and consumers.

2. Manufacturer retailer
This is one level channels. Here enter one intermediary namely retailer. That is
goods mere from producers to retailers and to the final consumer.
3. Manufacturer- wholesaler retailer consumer
It is a two level channel where two intermediaries enter namely, wholesaler and
retailer. That is the goods move from producer to wholesalers and back to
retailers before reaching the final consumer.
4. Manufacturer sole agent wholesaler- retailers- consumers
It is three level channels where both owner and agent intermediaries enter.


54

b. Industrial goods channels

1. Manufacturer industrial customer
Majority of the cases, the manufacturer sell directly to the customers as
customers are few and geographical concentrated.

2. Manufacturer industrial distributor industrial customers
Here one intermediary enter and makes the channel level one channel. This
intermediary is the industrial distributor who is responsible to sell the industrial
goods to industrial customer.

3. Manufacturer manufacturer representative industrial distributor - industrial
customer
Here channel turns into double level where two intermediaries appear. To
contract industrial distributors, manufacturers a manufacturers representative
has a vital role to play.


55

CHAPTER 6

MARKETING AND DISTRIBUTION OF

TCL


56

MARKETING AND DISTRIBUTION OF TCL

6.1 MARKETING DEPARTMENT STRUCTURE

Chief Manager
(Marketing)
Sales Representatives
Junior Executive
Marketing Manager

57

6.2 FUNCTIONS OF MARKETING DEPARTMENT
To identify the needs and wants of the consumers
To meet the demand of the consumers
Developing new better product
Successful distribution of the products
Improving the quality of products or services

MARKETING ACTIVITIES
TCL has a well established marketing department. There is an efficient sales force
which is under the Marketing Manager. The whole system comes under the General
Manager. TCL has got 14 sales representatives throughout Kerala.

6.3 MARKETING DISTRIBUTION CHANNELS
Company Depots Stockiest Dealers Customers

Stockiest
Number of Stockiest of TCL products

TCL has 25 Stockiest for White cement in Kerala.
TCL has 300 Dealers for Paint in Kerala.
TCL has 2000 Dealers for White cement in Kerala.
TCL has 3 Stockiest for White cement in Tamil Nadu.
TCL has 50 Dealers for White cement in Tamil Nadu.

6.4 SALES PROMOTION
TCL has an advertisement budget of 25 lakhs per annum. Since the amount
is too small the company is advertising at low level. Other promotional activities include
conducting dealers meetings once in two years. In addition to these the company offers
various incentive schemes for its dealers according to their sales performance.

58
Due to very low advertisement budget the company does not engage in any large
scale type of advertisement activities. The company occasionally engages in advertisement
through newspapers, magazines etc. The main modes of advertisement are displaying
boards which are positioned where they get maximum attention.
They also use Asia net cable vision, wall painting etc. The current year Board of
directors allowed 50 lakhs for advertisement

Table no.1: PRICING OF VEMBANAD PORTLAND WHITECEMENT

WEIGHT

PRICE

KERALA MRP

50KG
5KG
1KG

RS 856.50
RS 109.10
RS 24.20

OUTSIDE

50KG

RS 870.50


59

Table no. 2: PRICING OF SUPER SHELCEM CEMENT PAINT

WEIGHT

PRICE

25 KG Bag

RS 825

5 KG Jute Bag

RS 170.80

3 KG Polythene Packet

RS 102.50

1 KG

RS 34.80

Table no. 3: PRICING OF VEMBANAD WALLPUTTY

WEIGHT PRICE
20KG RS 678
5 KG RS 180


60

Reason for High Price
The production process of TCL is very old and it is known as WET process and is
very expensive. This is the only company which is using this old process. The other
companies are using DRY process. This is comparatively less expensive. So the other
companies can reduce price. Another reason is the raw materials particularly lime shell and
white clay is scarce. So these products are priced very high

Competition
The company is facing tough competition from the white cement from internal
manufacturers and also from imported white cement. JK White, Birla, RKC etc. are the
major competitors in the white cement sector. In the cement paint sector, there are about 14
brands to compete with Super Shelcem. The major competitors are Durocem, Snowcem
etc. The companys new product Sheltex Acrylic Emulsion Paint has only 5% market share
and facing competition from majors like Apex, Excel etc.

Di s count s Al l owed By T C L
TCL gives trade discounts of 10% and cash discount of 4 % for purchase of 250 kg.
and above ,the company allows 3% discount on freight allowances and 3% on special
discount. In every three months, the company gives 1% quantity discount for 200kg, 2%
for 500kg.

Procedure for Marketing and Distribution
The company has been carrying out production oriented strategy because of the
monopoly of the Vembanad brand. With the entry of competition the need for marketing
oriented strategy is analyzed. The company was mainly depending on distributors in
various regions.
TCL offers no credit facilities for white cement. It offers 45 day credit for cement
paint. The payment is made in advance by demand draft in case of white cement and by
cheque in case of cement paint. The company offers commission in the form of trade
discount in their stockiest.


61

Fig. no.3: Market share of Vembanad white cement

0%
10%
20%
30%
40%
50%
60%
vembanad
Birla
JK
RKC
35%
55%
5%
5%
Market share
market share

62

Fig. no.4: Market share of Supershelcem paint

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Supershelcem
Other brands
10%
90%
Market share

63
1) EXPERIENCE IN DEALERSHIP (IN YEARS)

ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)
Up to 5 years 11 22
5-15 20 40
15-25 10 20
Above 25 years 09 18
total 50 100

INFERENCE
From the above table it is clear that out of 50 respondents, majority of the dealers (40%)
have 5-15 years of experience in dealing Vembanad white cement. And 20% of dealers
have been dealing white cement for 15-25 years. The 22% have less than 5years and the
rest 18% have more than 20 years of experience. This shows the sustainability of the
product in the market even in the presence of other competitive brands, it also shows the
dealers interest in the usefulness of the product for the consumers.
0
10
20
30
40
Up to 5
years
5 to 15
15-25
Above 25
years

64

2) DEALERS OPINION ABOUT THE QUALITY OF VWC

Excellent 14 28
Very good 24 48
Good 07 14
Satisfactory 05 10
Poor 00 00
Total 50 100

INFERENCE
The chart above shows the degree of reliability on the quality of VWC. Most of the dealers
said the quality of VWC is unbeatable. Around 28% of dealers have the opinion that the
quality is excellent. Majority of the dealers rated the quality as very good and 14% say the
quality is good. Only a mere 10% have the opinion satisfactory. No one reported on poor
quality products from TCL.
0
10
20
30
40
50
Excellent Very good Good Satisfactory Poor
28%
48%
14%
10%
0%

65

3) DEALERS OPINION ABOUT THE PRICE OF VWC

Very high 15 30
High 28 56
Affordable 06 12
low 01 02
Total 50 100

INFERENCE
This table shows the option of dealers and customers about the price of VWC when
compared to other brands. Most of the respondents feel that the pricing of cement is very
high when compared to other similar brands. Among 50 dealers 30%ofthem reported that it
0
10
20
30
40
50
60
70
80
90
100
1 2 3 4 5
Series1

66
is higher not the highest. 12%of the dealers feel that the price is affordable and only 2%
reported that it is low.

4) FACTOR FOR PREFERENCE GIVEN FOR THE PRODUCT

ATTRIBUTES NO.OF RESPONDRNTS PERCENTAGE (%)
Availability 05 10
Demand 15 30
Quality 07 14
Brand name 20 40
Others 03 06
Total 50 100

INFERENCE
From the above table it is clear that, out of 50 respondents, majority 40% of dealers prefer
this product, because of its brand name and another 30% prefer because the demand of this
product in the market. 14%of dealers prefer this product because the quality of it, and
another 10% prefer because of its availability. Remaining 6% prefer this particular brand
because the reasons such as company policy, margin etc.
0
20
40
60
80
100
Series1

67

5) LEADING BRAND IN THE MARKET

Birla white 15 30
JK 05 10
RKC 04 08
Vembanad white 26 52
Others 00 00
Total 50 100

INFERENCE
From the above it is clear that, out of 50 respondents, 52% respondents said that vembanad
white cement is leading in the market. 30%respondents said that Birla white is the leader in
the market.10% dealers said that JK is the leading brand in their region, and remaining 8%
said that RKC is the leader in their region. From the above table, it is clear that vembanad
brand having a good share.

0
20
40
60
80
100
1 2 3 4 5 6
PERCENTAGE (%)
PERCENTAGE (%)

68

6) SATISFACTION OF DEALERS WITH PACKING OF THE PRODUCT

Yes 41 82
No 09 18
Total 50 100

INFERENCE
From the above table it is clear that, out of 50 respondents, 82% respondents are satisfied
with the packing of the product. Remaining 18% find some problems with the packing and
not satisfied with packing of the product.
Yes
No

69

7) RATING OF SALES PROMOTION ACTIVITIES

ATTRIBUTES NO. OF RESPONDENTS PERCENTAGE (%)
Excellent 02 04
Very good 05 10
Good 18 36
satisfactory 19 38
Poor 06 12
Total 50 100

INFERENCE
The promotion one of the Ps of marketing is most important for the survival of the
business firm. From the analysis the promotion activities of TCL are found to be
satisfactory. 40% of dealers found it Execllent 10% of the dealers reported as very good ,
0
5
10
15
20
25
30
35
40
PERCENTAGE (%)

70
36% of the dealers voted as good, majority (38%)of them voted as satisfactory, remaining
12% of the dealers reported as poor. According to them competitors are giving good
promotion for their products compared to TCL.

8) LEADING CEMENT PAINT IN THE MARKET

Lavanyacem 22 44
Truecem 12 24
Dukecem 10 20
supershelcem 06 12
Total 50 100

INFERENCE
The above table shows that around 44% of respondents, is selling lavanyacem cement
paint. 24% of respondents selling truecem. 20% of respondents selling dukeecemof
respondents selling supershelcem.
0
5
10
15
20
25
30
35
40
Birla
JK
Altech
Nippon
PERCENTAGE (%)

71

9) MOST SELLING WALL PUTTY

ATTRIBUTES NO. OF RESPONENTS PERCENTAGE (%)
Birla 20 40
JK 12 24
Altech 10 20
Nippon 08 16
Total 50 100

INFERENCE
From the above it is clear that out of 50 respondents 40% said that birla wall putty is
leading in the market , 24% said that JK wall putty is leading in the market, 20% said that

altech is the leading and remaining 16% respondents said that Nippon wall putty leading in
their region. It is clear that Birla wall putty is having a good market share.

0
10
20
30
40
Birla
JK
Altech
Nippon
PERCENTAGE (%)

72

10) DEALERS RECOMMENDATIONS OF TCL PRODUCTS TO
CUSTOMERS

Yes 30 60
No 20 40
Total 50 100

INFERENCE
The above data shows that 60%of dealers would recommend the TCL products to
customers and 40% would not do so. This is a good sign for the company that dealers have

positive attitude towards the products. Company would do well in improving the remaining
percentage of dealers that are unhappy with the product. This could be mainly due to profit
margin and other services offered from the company.

Yes
No

73

11) EFFECTIVENESS OF ADVERTISEMENT OF TCL PRODUCTS

Yes 34 68
No 16 32
Total 50 100

INFERENCE
Majority of the respondents who are aware of TCL advertisements feel that they are
effective in attracting the customers towards the product. 68% feel that ads effective and
32% consider it in effective.

Yes
No

74
12) SATISFACTION OF DEALERS WITH DISTRIBUTION SYSTEM

Yes 39 78
No 11 22
Total 50 100

INFERENCE
Out if 50 respondents 78% of them are satisfied with distribution system of TCL. And the
remaining 22% are not satisfied with the distribution system of TCL.

Yes
No

75

12) MOST SELLING WHITE CEMENT

Birla white 26 52
RKC 10 20
JK 06 12
Vembanad white 08 16
Total 50 100

INFERENCE
From the above table, it is clear that out of 50 dealers 52% selling Birla white cement. 20%
reported that they are selling are RKC white cement 12% selling JK white cement and
remaining 16% said that they are selling Vembanad white cement.

Birla
JK
Altech
Vembanad

76

13) Retailers opinion regarding whether the channels of distribution helps to
reduce the gap between producer and consumer

SI. No. Opinion No. of respondents Percentage
1 Yes 40 80
2 no 10 20
Total 50 100

INTERPRETATION
The above table shows that 80% of dealers say yes that is channels of distribution help to
reduce the gap between producer and consumer and 20% of dealers answered no.

Yes no

77

14) Opinions regarding the number of customers buy the TCL product.

SI. No. Opinion No. of respondents Percentage
1 large 0 0
2 medium 44 88
3 Less 6 12
Total 50 100

0
10
20
30
40
50
60
70
80
90
large medium Less

78
INTERPRETATION
The above table shows that 88% of the dealers says that average number of customers
go for buying the TCL product and only 12% of dealers says that a small number of
customers go for buying the TCL products.

14 Whether price of TCL products affordable for middle class people

SI. No. Opinion No. of respondents percentage
1 yes 4 8
2 No 46 92
Total 50 100

INTERPRETATION

The above table shows that 92% of the respondent says that the price of the TCL product is
affordable for middleclass people, but 8% of the people say the price of TCL product is not
affordable for middle class people.

yes
No

79
15) Retailers opinion about the price of TCL product

SI. No. Opinion No. of respondents percentage
1 high 45 90
2 medium 5 10
3 less 0 0
Total 50 100

INTERPRETATION

The above table shows that 90% of the respondent says that the price of TCL product is
high. Only 10% of the respondent says the price of TCL product is medium.

0
10
20
30
40
50
60
70
80
90
high medium less

80

CHAPTER 7

SWOT ANALYSIS


81

SWOT ANALYSIS

STRENGTHS

As TCL is a government owned firm, it enjoys privileges granted by the
government. Standard quality products are produced here.TCL is the only white cement
manufacturer in the world to manufacture cement from natural lime shell, and it uses wet
process technology for cement production. Therefore the product maintains high quality.

As TCL is a government oriented firm, it enjoys privilege associated with the state
government.

Number of players in international and Indian market is less in the case of white
cement compared to gray cement.

TCL is the only white cement manufacturer in the world to manufacture cement
from natural lime shell, and uses wet process technology for cement production.
Therefore the product maintains high quality.

Better transport facility.

Well equipped and trained employees.

Good quality products.

Good distribution channels.

High brand value exists for the products.

Easy movement of finished goods and raw materials.


82
WEAKNESS

Very low budget for advertisement, influence from government and political parties, sales
representatives are less, surplus labour, lack of transportation facility, scarcity of main raw
material lime shell etc. can be traced as the weakness of the company.
Very low and inadequate budget for advertisement.

Non availability of raw materials.

Rapid pricing system.

Out- dated machinery and manufacturing system.

Insufficient sales representative.

High cost of production.

Political influence.

No credit facility


83

OPPORTUNITY

The company should opt for psycho graphic segmentation of the market, where
more stress should be given to the quality and fitness of the product. It should expand the
distribution network to those markets where the competitors are less powerful. It can
compete in the national market supported by good advertisement.
Compete in the national market if there is good advertisement

Liberalisation demand for cement paint

Company introduces promotional programmes.

THREAT
High competition.

Liberal policy of other brands.

Promotional programmes of other brands

Complicated national market.

Good replacement of other brands.

Lack or inadequate support from government.

Complex national market.


84
FINDINGS OF THE STUDY

The majority of dealers (40%) have 5-15 years of experience in dealing with

Vembanad white cement.

The 28% of dealers experience was the quality was excellent. Majority of dealers
rated that quality was very good.14% of dealers rated quality of cement is good.
Merely 10% rated the quality was satisfactory and no one reported on poor quality
of the product.

Most of the respondents reported that the price of the cement is high when
compared to similar brands. Among 50 dealers 30% of them reported that the price
of the cement is higher but not highest. But 12% of dealers feel the price is
affordable.

The majority of the dealers prefer the product because of its brand name .The 40%
of the dealers prefer the product because of its brand name. The 30% of the dealers
prefer the cement because of the demand of the product. The 14% of dealers prefer
the product because of the quality of the product. And remaining 10% prefer
because of its availability.

Among 50% respondents, 52% of them reported that vembanad white cement is the
leading brand in the market.

Among the 50% respondents, 82% is satisfied with the packing of the product,
remaining 18% are not satisfied with the product packing and find some problem
with packing of the product.


85

The promotional activities of the TCL is found to be at a satisfactory level.
The 40% of the dealers found that the promotional activities of the firm are
excellent.

The 60% of the dealers recommend the TCL products to the customers.
Remaining 40% doesnt do so.

Among the 50 respondents 78% of the dealers are satisfied with the distribution
system of TCL. And remaining 22% are not satisfied with the distribution system.

Among the 50 respondents 52% is selling the Birla White cement. And 16% of
dealers said that they are selling the Vembanad White cement.

The 80% dealers responded that the channel of distribution helps to reduce the gap
between the producer and consumer.

The 88% dealers reported that the average number of customers is buying the TCL
products.

The 92% of the respondents reported that the prices of the TCL products are not
affordable to middleclass people.


86

CONCLUSION

Marketing and distribution is considered as the essentials for the survival of an
organization. Both are co-related to each other. It is necessary that products should satisfy
the need of the consumers and it should have better quality and reasonable price. Even
though company has better products, products may fail in the market. It is mainly because
of poor marketing and distribution practices of the company. So marketing and distribution
practices required adequate care. It is evident from the data that collected TCL gives
adequate preference for the distribution and marketing. Thats why even though company
facing shortage of raw material, its products has sufficient demand in the market.

The study shows how the distribution and marketing practices help the company to survive
in this competitive world. The main factor behind every sale is the margin or the profit that
a dealer gets out of it. It is interesting to know that the above all these factors influence the
sale in the long run. The sales person who meets the dealer, the distributor who meets the
customer, the customer who meets other prospective customers is all knitted to one. The
satisfaction must flow through these value-chains to have good future. Then only the
product will succeed in the market. Channels of distribution are the act of carrying goods
or services from the producer to consumer. Finding out of market share and consumer
awareness is very essential for building effective market strategies.

Finding out the market potentials and proper selection of distribution channels is very
essential for the survival of an organization. Retailers play an important role by helping the
customer for purchasing goods. As per this study I realized that every customer expect
good quality product at reasonable price and at reasonable time.


87

BIBLIOGRAPHY

Books

1. Arun Kumar and Meenakshi, (2006), - marketing management, second edition,
vikas publishing house pvt ltd Newdelhi.

2. Kothari.C.R- Research Methodology methods & techniques
New age international publishers, 2004.

3. Aswathappa K- Human Resource & Personnel Management
Tata McGraw Hill publishing co. ltd., 1999.

4 .Pandey.I.M -Financial Management
Vikas publishing house pvt ltd, 2000.
Website
www.travecement.com
Reports
Annual report of Tcl - 2011-12


88
QUESTIONARE
1. NAME :
ADDRESS : .
.
PHONE NUMBER :
2. Number of years in white cements dealer business?
Less than 5 years 5-15 years
15-25 years more than 25 years
3. How do you evaluate the quality of vembanad white cement?
Excellent very good
good satisfactory
poor
4. What is your opinion about the price of vembanad white cement?
Very high affordable
high low
5. Why do you prefer Travancore cement brand?
Availability demand
quality brand name
6. Which brand is leading in the market?
Birla white RKC
Vembanad Any other

89

7. Are u satisfied with the packaging of the product?
Yes No
8. What is your opinion about sales promotion activities of TCL?
Excellent Very good
Good Satisfactory
poor
9. Which is the leading cement paint in the market?
Lavanya cements duke cements
true cements supershelcem
10. Which is the leading wall putty?
Birla Altech
JK Nippon
Vembanad
11. Do you recommend the TCL product to your customer?
Yes No
12. Are you satisfied with the advertisement of the company?
Yes No
13. Are you satisfied with the distribution system of TCL?
Yes No


90

14. Do you think that channels of distribution help to reduce the gap between producer
and consumer?
Yes No
15. How much consumer goes for buying the TCL product?
Large Medium
Less
16. Do you think that the price of TCL product is affordable for middle class people?
Yes No
17. What is your opinion about the price of TCL product?
High Affordable Low

18. Are the stock sold out in reasonable period?

Yes No

19. Mentioned the mode of payment.

Cash Credit

Both

20. Are you satisfied with the profit margin of TCL products?

Yes No

21. Any suggestion:

Jithesh Project TCL

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A STUDY ON PREVAILING MARKETING AND DISTRIBUTION ADOPTED BY TCL

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