A STUDY ON THE EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD CEMENT CORPORATION LTD

PROJECT REPORT Submitted to

UNIVERSITY OF MADRAS

In partial fulfillment of the Requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

Submitted by BALAJI.V (REG NO MA00605) Under the guidance of

MR.D.SUGUMAR, M.COM, M.PHIL, M.B.A, PGDPMIR,,

DEPARTMENT OF MANAGEMENT STUDIES VEL SRI RANGA SANKU COLLEGE (ARTS & SCIENCE)
Approved by AICTE, New Delhi & Affiliated to University of Madras Avadi, Chennai-600062 April 2011-June2011

CERTIFICATE

This is to certify that the project work title A STUDY ON THE EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD CEMENT CORPORATION LTD submitted to Department of Management Studies, University of Madras, in partial fulfillment of the requirement for the award of degree of Master of Business Administration is a record of bonafide work done by MR.BALAJI.V (Reg No: MA00605) Vel Sri Ranga Sanku College, during the Academic Year 2010-2012.

Internal Guide

Head of the Department

External Examiner

Principal

Vel Sri Ranga Sanku College (Arts & Science) No.42&60, Vel tech road, Avadi Chennnai-600062 Phone- 044-29036931

BONAFIDE CERTIFICATE
This is certify that MR.V.BALAJI, Reg no.MA00605, a student of first year MBA has prepared a project report titled A STUDY ON THE
EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD CEMENT CORPORATION LTD as a partial fulfillment of MBA degree for

the academic year 2010-2012.

External examiner

HOD signature

ACKNOWLEDGEMENT

I convey my heartful gratitude to our chairman Dr.R.Rangarajan, B.E (Elect)., B.E (Mech)., M.S (Auto)., Ph.D., for giving me an opportunity to conduct the study. I would like to thank our college principal Dr. A.Sreenivasalu, B.com, M.com, M.Phil, Ph.D, for his encouragement and inspiration. I convey my deep sense of gratitude to Our HOD MR.D.SUGUMAR, M.COM,

M.PHIL, M.B.A, PGDPMIR, Head of the department of Management Studies for

his motivation and providing me moral support during the course of this work. I am grateful to my Guide MR.D.SUGUMAR, M.COM, M.PHIL, M.B.A,

PGDPMIR,for his valuable advice and supported me to complete this project in a

successful manner I have great pleasure in thanking Mr.SRIDHAR, Assistant Manager of CHETTINAD CEMENT LTD who spared his valuable time in guiding me to undergo this project. I thank all other faculty member of the department for their constant co-operation and encouragement in pursuing my project work.

DECLARATION

I, BALAJI.V (Reg.No.MA00605), II MBA of VEL TECH

VEL SRI RANGA SANKU COLLEGE(ARTS AND SCIENCE)

hereby declare that the project entitled A STUDY ON THE

EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF

CHETTINAD CEMENTS CORPORATION LTD, in partial

Fulfillment of Madras University for the award of the degree in

Master of Business Administration is my original work and that it

has not formed the basis for the award of any degree, associate ship,

diploma or any other similar title.

(BALAJI.V ABSTRACT
The topic taken for the study is A STUDY ON THE EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD CEMENT

CORPORATION LTD. The main aim of the study is to find out whether their distribution system is effective. The study helps to know about the credit facilities provided to the industrial customers. The study was conducted by the sample size of 75 customers. Questionnaire was circulated to the companies, their feedback was received, and analysis was made effectively. The research undertaken is a descriptive type and statistical tools used for the study are percentage analysis and chi-square analysis. The 90% of the customers says that their distribution system is effective. The customers are also satisfied with the credit facilities provided to them.

TABLE OF CONTENTS
Chapter Index Introduction
INTRODUCTION OBJECTIVE OF THE STUDY
1 5 6 7 8 11

Page No.

NEED OF THE STUDY SCOPE OF THE STUDY RESEARCH METHODOLOGY LIMITATIONS OF THE STUDY

REVIEW OF LITERATURE

12

COMPANY PROFILE

15

Data Analysis and Interpretation 4

PERCENTAGE ANALYSIS CHI SQUARE TEST
20 52

Summary And Conclusion 5

SUMMARY OF FINDINGS SUGGESTIONS CONCLUSION
55 58 59

Annexure
QUESTIONNAIRE
60

Reference

62

LIST OF TABLES Table No.

4.1.1 4.1.2 CHETTINAD CEMENTS CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS THE SATISFACTION LEVEL OF PRESENT CREDIT 4.1.3 FACILITY THE COMFORTABLE CREDIT PERIOD REQUIRED BY 4.1.4 THE RESPONDENT THE SATISFACTION LEVEL OF CURRENT 4.1.5 DISTRIBUTION SYSTEM REASONS FOR NOT SATISFIED WITH THE 4.1.6 DISTRIBUTION SYSTEM THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN 4.1.7 4.1.8 4.1.9 4.1.10 THE MARKET WHICH BRAND ENJOYS HIGHER MARKET SHARE FACTORS TO GAIN GOOD MARKET SHARE DISCOUNTS PROVIDED TO RESPONDENT PERCENTAGE OF DISCOUNT RECEIVED BY THE 4.1.11 4.1.12 4.1.13 4.1.14 4.1.15 RESPONDENT SATISFACTION LEVEL OF DISCOUNT PROVIDED MODE OF PAYMENT GIVEN TO THE COMPANY FREQUENCY OF SUPPLY DELAY BETWEEN ORDER AND SUPPLY 40 42 44 46 48 32 34 36 38 30 28 26 24

Page Title
THE RESPONDENT GETS THE CREDIT FACILITY FROM 20 22

No.

TIME DURATION BETWEEN DELAYS OF ORDER & 4.1.16 SUPPLY 50

LIST OF CHARTS Table No.

4.1.1 4.1.2 CHETTINAD CEMENTS CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS THE SATISFACTION LEVEL OF PRESENT CREDIT 4.1.3 FACILITY THE COMFORTABLE CREDIT PERIOD REQUIRED BY 4.1.4 THE RESPONDENT THE SATISFACTION LEVEL OF CURRENT 4.1.5 DISTRIBUTION SYSTEM REASONS FOR NOT SATISFIED WITH THE 4.1.6 DISTRIBUTION SYSTEM THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN 4.1.7 4.1.8 4.1.9 4.1.10 THE MARKET WHICH BRAND ENJOYS HIGHER MARKET SHARE FACTORS TO GAIN GOOD MARKET SHARE DISCOUNTS PROVIDED TO RESPONDENT PERCENTAGE OF DISCOUNT RECEIVED BY THE 4.1.11 4.1.12 4.1.13 4.1.14 RESPONDENT SATISFACTION LEVEL OF DISCOUNT PROVIDED MODE OF PAYMENT GIVEN TO THE COMPANY FREQUENCY OF SUPPLY 41 43 45 47 33 35 37 39 31 29 27 25

Page Title
THE RESPONDENT GETS THE CREDIT FACILITY FROM 21 23

No.

4.1.15

DELAY BETWEEN ORDER AND SUPPLY TIME DURATION BETWEEN DELAYS OF ORDER &

49

4.1.16

SUPPLY

51

CHAPTERISATION

CHAPTER 1

Chapter -1 deals with introduction, need of the study, scope of the study, objectives, limitation and research methodology,

CHAPTER 2

Chapter - 2 deals with review of literature .

CHAPTER 3

Chapter 3 deals with company profile.

CHAPER-4

Chapter-4 deals with data analysis and interpretation

CHAPER-5

Chapter-5 is summary of findings, suggestions, conclusion, annexure(questionnaire) and bibliography that includes list of references.

CHEPTER-1 INTRODUCTION
Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion. The Nature of Distribution Channels Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as"all the organisations through which a product must pass between its point of production and consumption" Why does a business give the job of selling its products to intermediaries? After all, using intermediaries means giving up some control over how products are sold and who they are sold to. The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself.

Functions of a Distribution Channel The main function of a distribution channel is to provide a link between production and consumption. Organisations that form any particular distribution channel perform many key functions: Information Gathering and distributing market research and

intelligence - important for marketing planning Promotion Contact Matching Developing and spreading communications about offers Finding and communicating with prospective buyers Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging Negotiation Reaching agreement on price and other terms of the offer Physical distribution Financing Acquiring and using funds to cover the costs of the distribution channel Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock) Transporting and storing goods

All of the above functions need to be undertaken in any market. The question is - who performs them and how many levels there need to be in the distribution channel in order to make it cost effective.

Numbers of Distribution Channel Levels Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels:

In the figure above, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent.

The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Dixons and Currys which then sell the goods to the final consumers. Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. A good example of this channel arrangement in the UK is the distribution of drugs.

OBJECTIVES OF THE STUDY

Primary Objective: To study the effectiveness of distribution of cement products with special reference of the Franky Hub in Chennai

Secondary Objectives:  To study the credit facilities provided to the industrial customers by Franky Hub  Brand preferences of existing industrial customers of Franky Hub  To study on discounts provided to the industrial customers by Franky Hub To study about the delay in order and supply of product by Franky Hub

NEED OF THE STUDY

 It is to study how effective the Franky Hub products move efficient to the various customers.  To know the credit facilities available to the customers and its effect on distribution.  To know the satisfaction level of the customers.

SCOPE OF THE STUDY

 The main scope of this study is to ascertain the effectiveness of channel of distribution and various methods to increase the sales volume of the concern.  The methods include regular information to the buyers creating a brand position in the market and taking measures to make the brand remain in its position.  One of the important aspects of this study is also to increase the market segment for the product.

RESEARCH METHODOLOGY

Methodology is one of the main aspects of any research. Extreme care must be taken in every step of research for the project to provide reliable data. The following methodology has been adopted in conducting the RESEARCH DESIGN.

RESEARCH DESIGN: A Research design specifies the methods and procedures of conducting a particular study. It is the map or blue print according to which the research is to be conducted. The study is descriptive in nature. The study is designed to describe the attitude, option, perception & preferences of the correspondents towards distribution network.

NATURE OF DATA: Required data gathered from primary and secondary sources.

SOURCES OF DATA:

PRIMARY DATA:  The data from primary sources has been collected by conducting survey with the help of structured undisguised questionnaire  The primary data was collected from respondents.  Interview techniques have been simultaneously used to make the study about and relevant.

SECONDARY DATA: It has been collected from company publication which include pamphlets and annual reports, other require information has been collected from text books, journals and other collected magazines.

DESIGN OF QUESTIONNAIRE: Before the questionnaire was prepared required information were listed in details. The questionnaire used in primary data collection was structured non disguised questionnaire consists of:  Open ended questions.  Close ended questions.  Multiple choice questions.  Rankings.  Dichotomous questions. ANALYTICAL TOOLS: Analytical techniques are used to obtain findings and arrange information in a logical sequence from the raw data collected

After tabulation of data researcher used following qualitative techniques.  Percentage analysis  Chi square test  Graphs  Weighted arithmetic mean

SAMPLING:  For selecting the respondents in Chennai city was used.  The respondents were chosen by cluster sampling. SAMPLE SIZE:

 The sample size have chosen from different universe.  A sample size(N) is 75 respondents have been taken from Chennai city. N = 75

LIMITATIONS OF THE STUDY

 The study was limited to Chennai city and all inference made of for the city only and cannot be generalized to other cities  The answers given by the retailers cannot be taken as face value for their could be bias.  The study conducted considering the prevailing condition which is subject to change in future.

CHAPTER 2

REVIEW OF LITERATURE

Channel Management is the Process by which a producer or supplier directs marketing activity by involving and motivating the entities comprising its channel of distribution.Channel management program that includes: 1. Goals. Define the specific goals you have for each channel segment. Consider your goals for the channel as a whole as well as individual accounts. And, remember to consider your goals for both acquisition and retention. 2. Policies. Construct well-defined polices for administering the accounts within this channel. Be sure to keep the unique characteristics of each segment in mind when defining policies for account set up, order management, product fulfillment, etc. 3. Products. Identify which products in your offering are most suited for each segment and create appropriate messaging. Also, determine where your up sell opportunities lie. 4. Sales/Marketing Programs. Design support programs for your channel that meet THEIR needs, not what your idea of their needs are. To do this, you should start by asking your customers within this segment, how can we best support you in the selling and marketing of our products? That being said, the standard considerations are product training, co-op advertising, seasonal promotions, and merchandising. Again, this is not a one-size fits all, so be diligent about addressing this segments SPECIFIC needs in these areas.

Bowers ox

 A distribution channel is, ultimately, an economic entity that is orchestrated by its participants to achieve their desired profitability and return on investment.  He suggests that measuring the distribution effectiveness shows results on the profit and ROI.

Russell W. McCalley

 Branches in the Channel Recall that the marketing channel runs parallel to the physical distribution channel.  The physical distribution channel may involve separate branches feeding into or bypassing the main channel of distribution

Abrahamson

He describes the evolution of logistics (or the evolution of supply chain management if you wish) as having gone through four phases:  optimization of flows and specialization of tasks,  economies of scale with centralization of tasks,  economies of scope with flexibility in tasks, and  economies of integration with tasks interfacing directly with the end customer.

This, he says, has readied the ground for an agile and opportunity-driven supplychain.

Omera Khan

The literature on purchasing and risk, and supply chain management and risk, fails to draw on or locate itself within the wider theory of risk and the practice of risk management. Though the general literature on risk offers a wide range of tools and techniques for managing risk, these do not appear to have been adapted for use in managing supply chain risk. Rather, what appears to be on offer is a range of general prescriptions on how to reduce risk.

CHAPTER 3

COMPANY PROFILE

Chettinad cements Cement Corporation Limited is an India-based company. The Company is engaged in the manufacture and sale of cement. Its manufacturing unit is located at Puliyur, Karur. The Companys cement products include Pavithram, Chettinad cements Royal Grade 53, Chettinad cements Grade 43, Chettinad cements PPC and Sulphur Resistant Cement. Dr. Rajah Sir Muthiah Chettiar's urge to contribute to the nation building cause combined with his business acumen culminated in establishing the company "M/s. Chettinad cements Cement Corporation Limited" in 1962 to cater to growing demands of Cement in the country. The manufacturing unit located at Puliyur, Karur an Industrially backward area in Tamil Nadu commenced production in April 1968. Further Green filed plant at Karikkali, Dindigul District was commissioned in October 2001.

VISION: Acquire new markets with product development and customer satisfaction.

PRODUCTS MANUFACTURED

PRODUCTS Pavithram - An unique cement manufactured at Puliyur works having very high quality for special concrete applications Chettinad cements Royal Grade 53- Superior finely ground cement, suitable for plastering works, giving a silky finished look. For RCC applications Laser controlled manufacturing would yield best results. Chettinad cements Grade 43- Multipurpose cement, suitable for plastering and binding. Chettinad cements PPC- A finely blended cement, providing very fine result for plastering work, devoid of hair line cracks and giving excellent appearance to the building. Sulphur Resistant Cement- Finds applications in the construction activity in the coastal areas to save from corrosiveness due to salty environment. MANAGEMENT

Date of Establishment 1962 Revenue 339.656 ( USD in Millions ) Market Cap 16112.3373564 ( Rs. in Millions )

Corporate Address Rani Seethai Hall Building,No 603,,Annasalai.Chennai-600006, TamilNadu www.chettinadcement.com

Management Details Chairperson - M A M Ramaswamy MD - M A M R Muthiah Directors - K Ganapathy, K Ganapathy, M A M R Muthiah, M A M R Muthiah, M A M Ramaswamy, R Krishnamoorthy, Ramanathan Palaniappan, S Hariharan, S Hariharan, S P S T Palaniappan, Sheela Rani Chunkath, Sp St Palaniappan Business Operation Cement & Construction Materials

Background Chettinad Cement Corporation incorporated in 1962, is engaged in the business of manufacturing cement. The company was promoted by Dr. Rajah Muthiah Chettiar. In 1968 company started commercial production of its manufacturing unit located in Puliyur, in Tamil Nadu. Later in October 2001, CCCL set up greenfield plant at Karikkali. Financials Total Income - Rs. 13734.9 Million ( year ending Mar 2010) Net Profit - Rs. 966.3 Million ( year ending Mar 2010) Company Secretary S Hariharan Bankers Auditors PB Vijayaraghavan & Co, Krishaan & Co, Seshadri & Jayaraman

COMPANY HISTORY
Chettinad Cement Corporation incorporated in 1962, is engaged in the business of manufacturing cement. The company was promoted by Dr. Rajah Muthiah Chettiar. In 1968 company started

commercial production of its manufacturing unit located in Puliyur, in Tamil Nadu. Later in October 2001, CCCL set up greenfield plant at Karikkali. Company started production of cement with installed capacity of 2 Lac tonnes capacity per annum. Now the production capacity has increased to 2.2 Million tonnes per annum. Companys plants are well equipped with modern dry process technology. Company operates modern Computer controlled LOESCHE lignite mill and five stage pre-heater kiln and electronic packing plant. It is also equipped with centralised control room for process control and elaborates display screen give up-to-the minute information on the production process so that any deviation can be promptly corrected. The Company has received ISO 9001:2000 and ISO 14001:2004 certification for its quality management.The Company commissioned a 15 MW Captive Thermal Power Plant at its unit at Karikkali in October 2004 and at Puliyur in March 2008 to cater to the entire power requirements of the facilities thus reducing the power cost. Company is part of Chettinad Group which has business interest in areas of granite, engineering, silica, garnet, information technology, education, medical, plantations, shipping, transportation, stevedoring, clearing and forwarding and logistics having a combined turnover of about Rs. 10,000 million. Products Company manufactures a range of cement such as Grade 53, Grade 43, Sulphur Resistant Cement, Ready Mix Concrete and Portland Slag Cement. CCCL markets these products under the brand name Pavithram, Chettinad Royal Grade 53, Chettinad Grade 43 and Chettinad PPC. Awards
y

Chettinad Cement Corporation was given TNEB Energy Conservation Award - (One among the 15 Energy Efficient H.T. Industries of 2000 KVA) in 1998-99.

The company received NCBM National Awards (Improvement in Energy Performance) in 1998-99.

CCCL was awarded Conservationist of the year (for outstanding progress in the field of Conservation of Energy, Metal Components & Machinery) 1987.

Recent Development Chettinad Cement Corporation is setting up two greenfield cement manufacturing units with an installed capacity of 2 Million Tonnes each at Ariyalur, Tamilnadu. This unit will also be equipped with 2X15 MW captive thermal power plants. This unit will commence its operation in near future.

COMPETITORS
Ultratech Cement, Ambuja Cement, Grasim Industries, Samruddhi Cement, Birla Corp, India Cements and Madras Cement etc

CHAPTER 4

4.1 DATA ANALYSIS AND INTERPRETATION

Table No: 4.1.1 THE RESPONDENT GETS THE CREDIT FACILITY FROM CHETTINAD CEMENTS

S. No

Credit

No. of

Percentage of Respondents 100% 0% 100%

facility respondents 1 Yes 2 No 75 0 75

Total

THE RESPONDENT GETS THE CREDIT FACILITY FROM CHETTINAD CEMENTS

THE RESPONDENT GETS THE CREDIT FACILITY FROM CHETTINAD CEMENTS CEMENTS

100% 80% PERCENTA 60% GE 40% 20% 0% Yes No CREDIT FACILITY

Inference:

From the above table 100% of respondents have credit facility given by the Chettinad cements and 0% of respondents have no credit facility.

Table No: 4.1.2 CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS S. No Credit facility One 1 week 2 15 days 3 Monthly 4 Quarterly Total Inference: From the above table indicates the period of credit received by 75 respondents 47% get one week, 33% get in 15 days and 13% received monthly and 7% gets in quarterly. 35 25 10 5 75 47% 33% 13% 7% 100% No. of respondents Percentage of Respondents

Chart No: 4.1.2 CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS

CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS CEMENTS

13%

7% 47%

One week 15 days Monthly Quarterly

33%

Table No: 4.1.3 THE SATISFACTION LEVEL OF PRESENT CREDIT FACILITY

S. No

Satisfaction

No. of

Percentage of Respondents

level of credit respondents Highly 1 Satisfied 2 Satisfied 3 Dissatisfied Highly 4 Dissatisfied 12 75 27 16 20

36% 21% 27%

16% 100%

Total

Inference: From the table 36% of respondents are highly satisfied, 21% are satisfied, 27% are dissatisfied and 16% are highly dissatisfied with the current credit facility.

Chart No: 4.1.3 THE SATISFACTION LEVEL OF PRESENT CREDIT FACILITY

Table No: 4.1.4 THE COMFORTABLE CREDIT PERIOD REQUIRED BY THE RESPONDENT

S. No

Comfortable credit period 1 15 days 2 Month More than a 3 month

No. of

Percentage of

respondents Respondents 12 21 36% 64%

0 33

0% 100%

Total

Inference:

From the above table 64% respondents comfortable with one month credit period, 36% of respondents responded 15 days and no one opted for more than one month.

Chart No: 4.1.4 THE COMFORTABLE CREDIT PERIOD REQUIRED BY THE RESPONDENT

Table No: 4.1.5 THE SATISFACTION LEVEL OF CURRENT DISTRIBUTION SYSTEM

Percentage Satisfaction level of the S. No Current Distribution System No. of of

respondents Respondents 37 10 18 10 75 49% 13% 24% 13% 100%

1 Highly Satisfied 2 Satisfied 3 Dissatisfied 4 Highly dissatisfied Total

Inference:

From the above table 49% of respondents are highly satisfied and 13% are satisfied, 24% are dissatisfied, 13% are highly dissatisfied with the current distribution system.

Chart No: 4.1.5 THE SATISFACTION LEVEL OF CURRENT DISTRIBUTION SYSTEM

Table No: 4.1.6 REASONS FOR NOT SATISFIED WITH THE DISTRIBUTION SYSTEM

S. No Reasons Delayed 1 supply 2 No response Total

No. of respondents

Percentage of Respondents

12 15 27

44% 56% 100%

Inference:

From the above table, 44% of respondents replied that there is a delayed supply in the distribution of the products and 56% replied that there is no proper response from the company.

Chart No: 4.1.6 REASONS FOR NOT SATISFIED WITH THE DISTRIBUTION SYSTEM

Table No: 4.1.7 THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN THE MARKET

Other S. No products available 1 Cement 2 Clinker Ready Mix 3 Concrete 4 Others Total 20 5 75 27% 7% 100% No. of respondents 37 13 Percentage of Respondents 49% 17%

Inference:

From the above table 49% of respondents replied that the other competitive products available for Chettinad cements are Cement, 17% replied its Rea molders, 27% replied its Miscellaneous Sales and 7% replied others.

Chart No: 4.1.7 THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN THE MARKET

THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN THE MARKET

7% COMPETITIVE Others COMPANY Ready Mix Concrete Clinker Cement 0% 10% 20% 17%

27%

49% 30% 40% 50%

PERCENTAGE

Table No: 4.1.8 WHICH BRAND ENJOYS HIGHER MARKET SHARE

S. No

Higher

No. of

Percentage of Respondents 20%

Market Share respondents 1 Cement Ready Mix 2 Concrete 3 Clinker Miscellaneous 4 Sales 5 Others 4 2 75 49 5 15

65% 7%

5% 3% 100%

Total

Inference:

From the above table 20% of respondents replied that the brand that have higher market share are premier industrial cement, 65% replied its Ready mix concrete, 7% replied its clinker, 5% replied its Miscellaneous and 3% replied others.

Chart No: 4.1.8 BRAND WHICH ENJOYS HIGHER MARKET SHARE

BRAND WHICH ENJOYS HIGHER MARKET SHARE

Cement 20%

5%3% 7%

Ready Mix Concrete Clinker Miscellaneous Sales

65% Others

Table No: 4.1.9 FACTORS TO GAIN GOOD MARKET SHARE

Factors to gain good S. No Market Share

No. of respondents 55 20 75

Percentage of Respondents 73% 27% 100%

1 Price 2 Quality Total

Inference:

From the above table 73% of the respondents replied that the factor to gain good market share is price and 27% replied its quality

Chart No: 4.1.9 FACTORS TO GAIN GOOD MARKET SHARE

Table No: 4.1.10 DISCOUNTS PROVIDED TO RESPONDENT

S. No Discounts provided 1 Yes 2 No Total

No. of respondents 75 0 75

Percentage of Respondents 100% 0% 100%

Inference:

From the above table 100% of the respondents receives discount from Chettinad cements.

Chart No : 4.1.10 DISCOUNTS PROVIDED TO RESPONDENT

Table No : 4.1.11 PERCENTAGE OF DISCOUNT RECEIVED BY THE RESPONDENT

S. No 1 2 2 to 4% 3 4 to 6% Total Discounts Received 1%

No. of respondents 0 55 20 75

Percentage of Respondents 0% 73% 27% 100%

Inference:

From the above table 73% of the respondents receives discounts of 2 to 4% and 27% receives discounts of 4 to 6%.

Chart No: 4.1.11 PERCENTAGE OF DISCOUNT RECEIVED BY THE RESPONDENT

Table No: 4.1.12 SATISFACTION LEVEL OF DISCOUNT PROVIDED

S. No Satisfaction Level 1 Yes 2 No Total

No. of respondents 49 26 75

Percentage of Respondents 65% 35% 100%

Inference:

From the above table 65% of the respondents are satisfied with the discount provided by Chettinad cements and 35% are not satisfied.

Chart No: 4.1.12 SATISFACTION LEVEL OF DISCOUNT PROVIDED

Table No: 4.1.13 MODE OF PAYMENT GIVEN TO THE COMPANY

Mode of S. No payment

No. of respondents 20 40 15 75

Percentage of Respondents 27% 53% 20% 100%

1 Cash 2 Cheque 3 Both Total

Inference:

From the above table, 27% of the respondents pay by cash, 53% through cheque and 20% pays through both cash and cheque

Chart No: 4.1.13 MODE OF PAYMENT GIVEN TO THE COMPANY

Table No:4.1.14 FREQUENCY OF SUPPLY

Percentage No. of S. No Frequency of Supply 1 Daily 2 Weekly 3 15 days 4 Monthly Total of

respondents Respondents 75 0 0 0 75 100% 0% 0% 0% 100%

Inference:

From the above table 100% of all the 75 respondents are supplied daily

Chart No: 4.1.14 FREQUENCY OF SUPPLY

Table No: 4.1.15 DELAY BETWEEN ORDER AND SUPPLY

S. No

Delay between Order & Supply 1 Yes 2 No

No. of respondents 21 54 75

Percentage of Respondents 28% 72% 100%

Total

Inference:

From the above table 28% of the respondents replied that there is a delay between the order and the supply and 72% are satisfied with it.

Chart No: 4.1.15 DELAY BETWEEN ORDER AND SUPPLY

Table No: 4.1.16 TIME DURATION BETWEEN DELAYS OF ORDER & SUPPLY

Percentage No. of S. No Time duration of delay 1 6 Hours 2 12 Hours 3 One day 4 More than a day Total of

respondents Respondents 12 10 0 0 22 55% 45% 0% 0% 100%

Inference:

From the above table, 55% of the non satisfied respondents replied that there is 6 hrs of delay in the supply of orders and 45% replied that there is 12 hrs of delay.

TIME DURATION BETWEEN DELAYS OF ORDER & SUPPLY

4.2 CHI SQUARE TEST

Chi Square 1

RELATIONSHIP BETWEEN BRANDS WHICH ENJOY HIGHER MARKET SHARE

S. No 1

Attributes Cements Ready mix 11

Price 4

Quality 15

Rows

2 3

concrete Clinker Miscellaneous

36 4

13 1

49 5

4 Columns

sales

4 55

2 20

6 75

Null hypothesis: There is no significant difference between the brands that shares the higher market share Alternative hypothesis:

There is no significant difference between the brands that shares the higher market share Calculation: O 11 36 4 4 4 13 1 2 E 11 35.9 3.7 4.4 4 13 1.4 1.6 O-E 0 0.1 0.3 0.4 0 0 0.4 0.4 (O-E)2 0 0.01 0.09 0.16 0 0 0.16 0.16 (O-E)2/E 0 0.000279 0.024324 0.036364 0 0 0.114286 0.1 0.275252

Calculated value: 0.275252 Degree of Freedom=(r-1)(s-1)= 3*1=3 Tabulated Chi square value @ 5% significance level = 2.366 Calculated value < tabulated value Hence Null Hypothesis is accepted.

INFERENCE: There is no significant difference between the brands that shares the higher market share

Weighted Average Rank Method:

RANK OF WHICH BRAND ENJOYS HIGHER MARKET SHARE weighted point option Pavithram Chettinad cements Royal grade 53 Chettinad cements ppc Sulphur resistant cement 2 1 1 2 8 4 2 2 0 1 64 2 4 23 12 10 172 1 6 4 4 3 3 2 2 1 Weighted Average Rank 44 3

INFERENCE:

From the table the respondent ranks the Chettinad cements to be first, cipla to the second place.

CHAPTER 5

SUMMARY OF FINDINGS

1. From the study, it is observed that 100% of respondents have credit facility given by the Chettinad cements and 0% of respondents have no credit facility.

2. From the study, it is observed that the period of credit received by 75 respondents 47% get one week, 33% get in 15 days and 13% received monthly and 7% gets in quarterly.

3. From the study, it is observed that 36% of respondents are highly satisfied, 21% are satisfied, 27% are dissatisfied and 16% are highly dissatisfied with the current credit facility.

4. From the study, it is observed 64% respondents comfortable with one month credit period, 36% of respondents responded 15 days and no one opted for more than one month.

5. From the study, it is observed 49% of respondents are highly satisfied and 13% are satisfied, 24% are dissatisfied, 13% are highly dissatisfied with the current distribution system.

6. From the study, it is observed, 44% of respondents replied that there is a delayed supply in the distribution of the products and 56% replied that there is no proper response from the company.

7. From the study, it is observed 49% of respondents replied that the other competitive products available for Chettinad cements are Cement, 17% replied its Rea molders, 27% replied its Miscellaneous Sales and 7% replied others.

8. From the study, it is observed 20% of respondents replied that the brand that have higher market share are Cement, 65% replied its Chettinad cements, 7% replied its Rea molders, 5% replied its Miscellaneous Sales and 3% replied others.

9. From the study, it is observed 73% of the respondents replied that the factor to gain good market share is price and 27% replied its quality

10. From the study, it is observed 100% of the respondents receives discount from Chettinad cements.

11. From the study, it is observed 73% of the respondents receives discounts of 2 to 4% and 27% receives discounts of 4 to 6%.

12. From the study, it is observed 65% of the respondents are satisfied with the discount provided by Chettinad cements and 35% are not satisfied.

13. From the study, it is observed, 27% of the respondents pay by cash, 53% through cheque and 20% pays through both cash and cheque

14. From the study, it is observed 100% of all the 75 respondents are supplied daily

15. From the study, it is observed 28% of the respondents replied that there is a delay between the order and the supply and 72% are satisfied with it.

16. From the study, it is observed, 55% of the non satisfied respondents replied that there is 6 hrs of delay in the supply of orders and 45% replied that there is 12 hrs of delay.

17. From the study it is observed that there is no significant difference between the brands that shares the higher market share

18. From the table the respondent ranks the Chettinad cements to be first, cipla to the second place.

SUGGESTIONS

 Among the 75 respondents 44% are dissatisfied and highly dissatisfied with the credit period. So it is suggested to increase the credit facility and remove the dissatisfaction level  Current distribution system is not favorable since 36% replied No regarding the distribution system. So it is suggested that to improve the performance of the present distribution system  Among 75 respondents 25% of respondents replied No regarding the satisfaction level of time delivery. So it is emended that to the company to concentrate on it to reduce dissatisfaction level.

CONCLUSION

Every company needs to monitor the target focus in its distibution if it wants to improve its products, service and market position. As todays market is becoming more competitive the company needs to constantly scan its service which enable it to increase the service and grab higher market share.

The researcher has revealed that the company should improve its distribution network to being competitive in the market.

Annexure

5.1 Questionnaire

Name of the Company:

Address

Phone Number

1.

Do you get any credit facilities from your distributors? (a)Yes (b) No

2.

If yes, the period of credit you get? (a)One week (b) 15 days (c) Monthly (d) Quarterly

3.

Specify the level of satisfaction with the present credit facility? (a)Highly Satisfied Dissatisfied (b) Satisfied (c) Dissatisfied (d) Highly

4.

If not satisfied, specify your comfortable credit period? (a) 15 days (b) Month (c) More than a month

5.

Are you satisfied with the current distribution system? (a)Yes (b) No

6.

If no, specify reasons (a)Delayed Supply (b) No proper response

7.

What are the other competitors products you are dealing with? (a) Cement (b)Ready mix concrete (c)Clinker

(d)Others 8. Which brand enjoys higher market share? (a) Cement (b) Ready mix concrete (c) Clinker (d)Miscellaneous sales e) Others

9.

If CHETTINAD CEMENTS which feature helps to gain good market share? (a)Price (b) Quality

10.

Are you provided with any discounts? (a)Yes (b) No

11.

If yes, say about the discount you get? (a)less than 1% (b)2 to 4% (c)4 to 6%

12.

Are you satisfied with the discount provided? (a)Yes (b) No

13.

What is the mode of payment? (a)Cash (b)Cheque (c)Both

14.

How often do you get supply? (a)Daily (c) 15 days (b)Weekly (d)Monthly

15.

Is there any delay between order and supply? (a)Yes (b) No

16.

If yes please mention the time particular? (a)Hours (c)One day (b) 12 Hours (d) More than one day

References

BIBLIOGRAPHY

BOOK NAME:

Marketing Management

Philip Kotler

Research Methodology

C.R.Kothari

Marketing Research

G.C.Beri

Statistical Methods

S.P.Gupta

ELECTRONIC REFERENCE:

http://www.chettinad.com/cement.htm

http://economictimes.indiatimes.com/chettinad-cement-corporationltd/finishedproducts/companyid-12640.cms