A PROJECT REPORT ON Marketing research and For Aggregate products MASTER OF MANAGEMENT STUDIES (MMS) UNIVERSITY OF MUMBAI SUBMITTED

TO MARATHA MANDIRS BABASAHEB GAWDE INSTITUTE OF MANAGEMENT STUDIES MUMBAI CENTRAL

SUBMITTED BY VIVEK DATTARAM CHAVAN

DECLARATION

I, Taware Niketan Prakash of Master of Management Studies (Semester III) of Babasaheb Gawde Institute of Management Studies (BGIMS), hereby declare that I have successfully completed this project on marketing research and Preparation of IMC plan for ASUS product as a part of my Summer Internship. The information incorporated in this project is true and original to the best of my knowledge.

Signature

ACKNOWLEDEGEMENT

At the commencement stage of the research study, I was not quite sure about the magnitude and dimensions of the research and the related efforts needed. Except for the strong will bestowed by almighty to pursue the study with patience and sincerity I would have not been able to complete it. I am grateful to our director Prof. Atul Thakurdas , Prof, Anu Sharma , Prof. Parmar & my mentor Mr. Romi Suri & Mr.Giriraj Karkera for all the support given during data collection which has precisely assisted my accomplishment. I am also thankful to my family and my friends without whom it wouldnt have been possible to complete this research. I sincerely thank all the people who knowingly or unknowingly helped me in the work.

Contents Sr.no Topic Page

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no. 1 2 3 4 5 6 7 8 9 10 11 Executive Summary Objectives of Project Literature Review Lafarge: General information Product line information Project Design Observations and findings Data analysis Limitations Annexure Conclusion Bibliography

Chapter 1: Executive Summary Title of the project: Customer Segmentation & Price mapping Study for aggregates market in Mumbai Name of the company: Lafarge Aggregates & concrete India Private Limited. Mentor Name: Mr. Sachin Patil.

Summary of Project: This project is an attempt to decipher the market potential for products widely used in the construction & building material space in a different format of consumption. These products known collectively as Aggregates in global terminology assume a formidable significance due to a huge demand for it in an ever growing sector Construction Industry, here in India as also because some of the natural alternative to these products become increasingly difficult to procure due to environmental regulations imposed on them. We are talking of Sand & Coarse stones of specific dimensions called popularly in the local Mumbai market as Reti & Khadi -1 number & Khadi -2 number. Our products are 0/4mm Fine Aggregate for Reti , 4/10mm Coarse Aggregate for Khadi-1 number & 10/20 Coarse Aggregate for Khadi-2 number For the first time an organized player like Lafarge plans to entering into the aggregate market & this project aims understand customers purchasing pattern of aggregates & identify key parameters which influence customer buying decision while purchasing aggregates segment wise & geographic location wise. For this study segments are defined based on Lafarge segment definition terminology Civil contractor ( Residential/commercial) Infrastructure Contractor (Road, Bridges, Water supply, Drainage, Metro Rail, Other mention) Commercial ready mix manufacturer

Commercial asphalt manufacturer Paving / precast manufacturer Builder Captive ready Mix Player

Lafarge is currently doing trading business in the aggregate market in Mumbai since year 2009 with average sales of around 35,000 to 40,000 tons per month. In last three years it has developed up solid customer base across segments & has made inroads into unstructured aggregate market in Mumbai. It has developed its sales team, technical team & logistic team . Lafarge will be starting its first aggregate Greenfield project in Badlapur. Lafarge aggregate division decided to conduct study to do customer segmentation & price mapping across segments & geography wise which will be a divisive tool for Lafarge aggregate sales team to sales aggregate from Badlapur plant. So I did customer segmentation and a price mapping study to assist them understand the current market scenario. My main aim of the project is to understand customers current pain areas and assist Lafarge to provide better service in those areas. I had to prepare this plan by performing the market research on given product line in selected region. So this project will give you the brief idea about the marketing research and IMC plan for aggregate market. I have discussed following points through my project: 1) I am giving the basic information about Aggregates, product line, there features and market research plan.

2) Then I am discussing about project design .Then I designed the research process with the sample size of 54 builders and civil contractors from south mumbai. Then I am discussing about observation and findings about the project. 3) In the data analysis part, I have shown actual analytical results of data secured from research process and the graphical representation. 4) In the final part, I have discussed about the Limitation of the project. I have tried my level best to put best efforts to take out maximum data from the given region, and to use that data for the preparation of my recommendation. I am sure this will help Lafarge in future.

Chapter 2: Objectives of Project

Objectives of summer placement: 1) To do market research on Aggregate product mainly 10mm, 20mm and crushed sand our main objective is to study the market position of above mentioned Aggregate products in Mumbai market. For this I have select south Mumbai as my sample region.
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2) To understand the current pain areas of the customers.-The objective of the project was to understand the current pain areas of the customers and the issues faced by them in the current market from their existing suppliers. To understand the purchasing patterns of aggregates: The objective was met by identifying key parameters which influence customer buying decisions while purchasing aggregates. To identify the gap between customer needs and marketing offerings: The objective of the study was to identify and analyze satisfaction level of customers across parameters by identifying the loop holes. To capture the usage patterns across segment and geographic location: This objective is met by doing a complete customer mapping of aggregate users and also understanding demand of aggregates segment wise. To create awareness in the minds of the customers: One of our other objectives of this research program was to create awareness in the minds of customers about Lafarge and its new plant at Badlapur. To understand customers perspective about the brand: During the research we also tried to understand the customer perspective about Lafarge and what values do they associate with Lafarge To analyze the data collected: The objective was to collect and analyze the required data to guide Lafarge to devise sales plan for Badlapur project. To develop Customer Data : This objective will be used after operation of the badlapur plant.

Chapter 3: Literature review Lafarge: General information

Introduction About Lafarge Global Lafarge was founded in 1833 by Joseph-Auguste Pavin de Lafarge in Le Teil, to exploit the limestone quarry in Mont Saint-Victor between Le Teil and Viviers. In 1864 Lafarge signed its first international contract for the delivery of 110,000 tonnes of lime to the Suez Canal construction project. It developed calcium aluminate cements. It was also an early pioneer in the production of white Portland cement, still made at the company's original Le Teil plant.
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In 1919, a public company was formed, named "Socit anonyme des chaux et ciments de Lafarge et du Teil." In 1980, it joined with the cement company Coppe to become SA Lafarge Coppe. Lafarge purchased a plant from the National Gypsum Company in early-1987. Ten years later, it bought Redland plc, a leading British quarry operator. In 2001, Lafarge, then the world's second largest cement manufacturer, acquired Blue Circle Industries (BCI), which at the time was the world's sixth largest cement manufacturer, to become the world leader in cement manufacturing. In 2006, Lafarge North America shareholders accepted a $3 billion tender offer from Lafarge Group which gave the parent company full control over the North American business, removing LNA from the New York Stock Exchange. Previously the Group had owned 53% of LNA shares In December 2007, Lafarge announced the purchase of the Orascom Cement Group, an Egyptian based cement producer with operations across Africa and the Middle East, from Orascom Construction Industries (OCI). On May 15, 2008 Lafarge acquired Larsen & Turbo Ready Mix-Concrete (RMC) business in India for $349 million. About Lafarge Aggregates & Concrete India (P) Ltd. In line with its strategy to develop its Aggregates & Concrete business in emerging markets, Lafarge went on with the acquisition of L&T Concrete for an enterprise value of INR 14.8 billion (USD 349 million). Lafarge acquired through L&T Concrete 66 highly efficient concrete plants located across India, in key markets such

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as Delhi, Kolkata, Mumbai and Bangalore, with total estimated volumes of 4.1Mm3 in 2008 and a market share of approximately 25%. The acquisition will be accretive to Lafarge earnings per share from 2009. With this acquisition, Lafarge established itself as the leader in the Indian ready-mix concrete market. The ready mix concrete market is still in an early stage of its development in India, but offers strong growth and value creation potential. The Indian construction market is developing to meet significant demand for new housing, urbanization and infrastructure. This acquisition was an important step in Lafarge's strategy to develop its Aggregates & Concrete business in emerging markets. It is with a planning provide the Group with an excellent platform to develop further its Aggregates & Concrete business in the fast-growing Indian market, along with a very experienced team. India offers strong potential for introducing innovative products. Lafarge boasts the world's leading research facility in building materials and has developed innovative, value-added concrete products over the last ten years which contribute to improving construction methods and working conditions on building sites. One of Lafarge's key strategic focuses today is innovation in concrete, which translates into an markets. Lafarge is also aiming to offer the Indian market its most advanced and value creative solutions for construction. Lafarge: World World leader in building materials, Lafarge extracts resources from the heart of the earth to make materials to bring to the heart of life. Present in 78 countries, the Group responds to the worlds demand for housing and infrastructure. Lafarge is driven by the needs of its customers, shareholders, local communities and architects. The Group creates high value-added solutions which encourage creativity whilst leaving a lighter trace on the world. Profile Lafarge holds top-ranking positions in each of its Businesses: Cement, Aggregates, Concrete and Gypsum.

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Lafarge at a glance At a global level, Lafarge is: n 1 in Cement, n 2 in Aggregates, n 3 in Concrete, n 3 in Gypsum. The Group controls a unique portfolio of Businesses: Cement: 59.7%, Aggregates and concrete: 31.5%, Gypsum: 8.8%. (Figures at 12/31/2010 as a % of sales) Mission: anticipate needs to drive advances in construction methods Lafarge designs and produces building materials to meet the requirements of people throughout the world for: sustainable construction, housing, transport, healthcare, education, Essential infrastructure for economic growth and social progress.

Solid values: respect, care, rigor Essential values guide Lafarge's development: integrity, ethics, courage, empathy, openness, commitment. Lafarge believes that ongoing advances in building materials must integrate respect for people, their different needs and their environment. This strong conviction is reflected in a strategy which combines industrial know-how with:

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 performance, value creation, respect for employees and environmental protection,

local cultures,

conservation of natural resources and energy Principles of Action Becoming the undisputed world leader in building materials Lafarge is committed to: offering our customers the best in innovative materials and reliable products and services, reinforcing our position as the world leader in relation to our suppliers, employees, customers and shareholders. Upholding commitments to all stakeholders Lafarge is committed to: generating value for our clients, delivering the value creation that our shareholders expect, giving our employees every opportunity to contribute and develop their talents, contributing to building a better world for our communities

The Lafarge Way The Lafarge Way is built around 3 concepts. Making our employees successful: Lafarge aims to enable each individual to succeed. Delivering continuous performance improvement: Lafarge continually strives to optimize its products and services. A multilocal organization: Lafarge's goals are local but remain integrated into our global approach Strategy Our strategy seeks to strengthen our place as world leader in building materials in terms of market share, innovation, customer image, geographical spread and profitability. Sustainable development also forms an essential part of the Group's strategy. Clear and ambitious strategic priorities 2 strategic priorities: Cement, primarily in growth markets. Innovation, particularly innovative construction systems corresponding to the new market trends of sustainable construction solutions

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and affordable housing. 3 operational priorities: The health and safety of our employees and contractors - the Group's biggest priority is to become accident-free. Cost-cutting - the significant progress seen in recent years shows that cost-consciousness has now become part of Group culture. People development - the Group is focusing on four key aspects: filling our talent pipeline, developing our talents, leveraging diversity and optimizing the effectiveness of its organization Continued growth in emerging markets The urbanization and demographics of emerging countries are driving substantial needs for infrastructure and housing. Despite the economic and financial crisis, global cement demand grew by approximately 9% in 2010, supported by the dynamism of most large emerging markets. Lafarge is well placed to benefit from this growth thanks to its well diversified geographical portfolio,strengthened during recent years by a cement capacity increase program and the acquisition of Orascom Cement in January 2008. Emerging markets accounted for 74% of Group's current operating income in 2010, and they are the target for most of its new production capacity projects.

Innovating to meet customer needs in terms of sustainable construction In recent years, the Group has expanded its offer of high value-added products and systems to meet its customers' expectations in terms of performance, ease of use, reduced application time and recycling. The growing demands of sustainable development are also drivers of innovation: preservation of the environment and the combat against climate change, health protection and corporate social responsibility. Lafarge supports building methods respectful of man's future and his environment by partnering with different industry players. It focuses its innovations on reducing the carbon footprint of its products and buildings, improving the energy efficiency of its production processes and of buildings built with its solutions, and reducing construction costs Expansion of emerging markets

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Emerging markets drive global growth in the sector Around the world, cement production is increasing by 5% per year for 20 years. This means 100 million additional tons of cement is being consumed every year. Despite the crisis, it grew by approximately 9% in 2010. This growth is predominantly driven by urban and demographic development in emerging markets that are facing strong demands in infrastructures and housings. In these countries, the cement market is growing at a significantly faster rate than the general economy. Lafarge is positioning itself as a leading player in this context. Lafarge strengthens its positions In the 1990s, the Group established solid positions in emerging markets through a combination of acquisitions and organic growth. More than 60% of Lafarge's workforce is employed in emerging countries (Asia, Africa, Central and Eastern Europe, the Mediterranean Basin, Middle East and Latin America). In 2010, these countries accounted for 53% of Lafarge's turnover. In the Cement Business, emerging markets account for, in 2010, 69% of its results. Most of the Group's new production capacity projects are located in emerging markets. In 2010, Lafarge continued to implement its capacity increase in emerging countries with 12 million tonnes started up in Africa, Middle East and Asia

Moving towards new industrial practices Cost structure In general, the cost of manufacturing our different products can be broken down as follows: energy accounts for 33% of the cost of producing cement, raw materials (more than 50% of which are cement) represent 75% of the cost of ready-mix concrete. Delivery expenses account for approximately 20% of the cost, raw materials (primarily gypsum and paper) represent 40% of the cost of plasterboard, energy, raw materials and labor represent 50% of the cost of producing aggregates. Reducing the environmental footprint of our activities The cement industry emits CO2. Since the 1970s, the Group has been working to reduce its ecological footprint in order to respond to needs for infrastructure, housing, hospitals and schools whileconserving natural resources. This approach focuses on: the modernization of plants and the improvement of industrial processes, product research and innovation, the use of alternative fuels and materials, with the aim of reducing the consumption of non-renewable natural resources and limiting CO2 emissions. Towards sustainable construction

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The building consumes vast amounts of energy and is the source of 40% of the CO2 emissions of developed countries. Lafarge is working to invent the building methods of tomorrow. The entire life cycle of the building needs to be reconsidered, from the use of recyclable materials to the integration of renewable energies and the reduction of pollution

Corporate governance Governing bodies The Board of Directors of Lafarge has 17 members, of whom 10 are independent directors. The Board of Directors relies on Specialized Committees to examine questions relating to the Group's operations. The Executive Committee implements the policies defined by the Board of Directors Transparency and efficiency A majority of the members of the Board of Directors, the Corporate governance and the Nominations Committee, the Remunerations Committee and the Audit Committee are independent. The Chairmen of the 3 committees (the Audit Committee, the Corporate governance and the Nominations Committee, the Remunerations Committee) are also independent. In 2007, the Board adopted the principle of appointing a Vice Chairman, to be chosen from amongst the independent directors. The Group has established a Code of Business Conduct and a system for annual internal evaluation. Its goals: to evaluate the operations and efficiency of the Board of Directors, to improve the way it functions.

Our priorities Fighting climate change Lafarge develops and is implementing a comprehensive strategy contributing to the overall objective of limiting the Earth's temperature increase to a maximum of 2C. The Group surpassed its 2010 objectives 1 year in advance and set itself 3 new targets for 2015 and 2020, in the framework of its partnership with WWF. They now encapsulate the entire construction chain. Reducing CO2 emissions Lafarge is aware of challenge which climate change presents for the entire planet. Since 2001, the Group committed itself to ambitious objectives in the framework of a pioneering partnership with WWF.

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Lafarge has fulfilled and surpassed in advance its 2010 objectives, because of the context of the economic downturn, which has significantly impacted production volumes: - 10% absolute gross emissions* in industrialized countries: they were cut by 36.5% in the Cement business between 1990 and 2010, - 20% net emissions* per ton of cement produced worldwide: they fell by 21.7% between 1990 and 2010. (* Gross/net emissions: net emissions equal gross emissions minus emissions related to the burning of waste.) Going beyond plants The construction sector accounts for 40% of the global energy demand, and for 30% of the overall greenhouse gas emissions. In 2011, the Group announced it 2nd generation commitments, set up in the framework of the partnership with WWF International. Lafarges 3 new targets for 2015 and 2020 are in line with a comprehensive, ambitious and original approach. They go beyond plants CO2 emissions and encapsulate the entire construction chain: Reducing CO2 emissions per ton of cement produced by 33% between 1990 and 2020; Developing 10 innovative products ranges and contributing to500 sustainable construction projects by 2015; Promoting CO2 performance enhancement policies which are adapted to Lafarges industry in international and professional organizations. Relying on industrial ecology and innovation To meet these objectives, the Group is: reducing energy consumption, modernizing its plants and constantly improving its industrial processes, developing industrial ecology through alternative fuels and industrial waste, particularly slag, fly ash and pozzolan, to manufacture cement. Lafarge also invests in research to: develop clinker which produces less CO2. For example, new clinkers Aether incorporate less limestone and can be heated to lower temperatures, which will allow a 25 to 30% cut in CO2 emissions. perfect processes which make more efficient use of energy, optimize the composition of concrete and improve recycling. Promoting sustainable construction to other industries

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Lafarge has set itself the objective to build a common vision on climate change and CO2 performance, together with other industries and cement players, but also with its stakeholders, such as WWF. The Group addresses all actors in the value chain and participates inpartnerships and collective actions, such as: the WBCSD (World Business Council for Sustainable Development), the EEB (Energy Efficiency in Building) project, the WBCSD Cement Sustainable Initiative (CSI), which was co-chaired by Bruno Lafont in 2010, the Building Energy Foundation, UNEP (United Nations Environment Program), Upstream collaboration with clients, architects, engineering and construction companies in developed and emerging countries

Implementing Clean Development Mechanisms Lafarge conducts a number of projects aimed at implementing Clean Development Mechanisms (CDM) within the framework of the Kyoto Protocol. Three projects have already been recognized by the CDM Executive Committee: in Morocco, the Tetouan wind farm supplies 50% of the electricity used by the local Lafarge cement plant, in Malaysia, 5% of the thermal energy for the Rawang and Kanthan cement plants comes from biomass, in India, fly ash from conventional power plants is recycled for use in cement. These 3 Clean Development Mechanisms provide annual savings of 160,000 tons of CO2, an environmental benefit equivalent to planting 10.6 million trees per year! Protecting biodiversity Because of its geographic scope, its long term business and local impacts, Lafarge continues its strong commitment to biodiversity and rehabilitation of its quarries. The objective is to preserve the animal and plant ressources present in these natural environments A biodiversity management system Lafarge has established a comprehensive biodiversity management system in partnership with the WWF: a specific methodology, tools to evaluate the challenges of the site, programs to maintain and improve biodiversity.

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The objective is to work with local experts and environmental associations to establish biodiversity programs for all sites located in a sensitive area or presenting real potential for wildlife. In partnership with the WWF Lafarge has also developed abiodiversity index to monitor and track ecological changes at the Group's quarries and sites. Criteria include: the rarity of identified species, the surface area of the natural environment. The ratings underpin action programs. In 2010: 94% of quarries are screened according to these WWF criteria. 84,5% of quarries have a rehabilitation plan. 47% of quarries located in sensitive areas have a biodiversity program.

Partnerships with specialists Lafarge works closely with specialists to expand its understanding of biodiversity: A panel of experts and stakeholders is consulted in all biodiversity matters. International experts: the indicators developed with WWF have been reviewed and have inspired key perfomance indicators for the CSI (Cement Sustainability Initiative). Local experts such as: the "Museum d'Histoire naturelle" (France) and English Nature (United Kingdom) lend their expertise during the creation of natural habitats on rehabilitated sites, the Wildlife Habitat Council (United States) has recognized the attention to biodiversity shown in the Group's industrial approach by certifying 74 of its Cement and Aggregates sites Conserving water Highly exploited by human activities, water is the must-consumed resource in the world. Therefore, reducing its water footprint is a priority for Lafarge. Water, a key component of the WWF partership With the renewal of its WWF partnership in 2009, Lafarge integrated water in its 5 main commitments. The aim was to develop a better understanding of its water consumption to better reduce it. Through the partnership, Lafarge: maps sites located in areas of water scarcity and measures their water footprint, reduces its water consumption, preserves fragile wetlands, recycles water by collecting washing and cooling water.
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In 2010, water recycling systems are already installed at: 83% of cement sites; 72% of concrete and aggregates sites; 69% of gypsum sites. In 2009, pilot projects have been set in all 4 businesses in order toassess their water footprint: in Medgidia in Romania for Cement; in Almenara in Spain and Gravel in Morroco for Aggregates; in 3 concrete-batching plants near Cairo in Egypt; in Bristol in the UK for Gypsum. 4 of them have identified practices to reduce their water consumption, such as rain water collection, washing without water and condensing steam in stacks. The remaining 3 plants will complete studies to imagine similar solutions in 2011. New pilot sites were launched in 2010 Assessment methodology In 2010, Lafarge used the methodology from the Water Footprint Network to assess the impact of its sites' activities on water resources. The Group also used the Global Water Tool (GWT), developed by the World Business Council for Sustainable Development (WBCSD). With this tool, Lafarge mapped the location of all cement and plasterboard sites. Water consumption reduction initiatives will be announced in 2011 at sites located in extreme scarcity areas

Health & safety Health and Safety are core values for Lafarge, demonstrated by the Group's leading position in this area. Worldwide Lafarge has implemented a rigorous policy and management system which is helping to eliminate any harm to employees and those working alongside them. Lafarge's dedication also extends into the local communities where the Group shares its Health and Safety culture. A challenging journey to excellence Lafarge is the safest company in its sector, but its aim is to be among the safest companies in any sector, through continuous improvement and personal engagement of everybody. Examples of how this is being achieved include: setting and exceeding challenging targets to reduce incidents; rigorously implementing world-class standards for the main risks; engaging all employees through visible leadership at all levels; campaigning relentlessly to support changes in attitude and behavior;

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recognizing and rewarding the best performers from business units to individuals.

Lafarge has come a long way on its journey but recognizes it has further to go to achieve zero incidents and occupational illnesses. That's why Health & Safety is the Group's number one priority. Sustainable construction The environmental footprint of buildings needs to be reduced throughout their lifecycle in order to respond to the challenges of climate change. Lafarge follows a rigorous methodology, invests in innovation and brings together all its partners to develop solutions promoting sustainable and efficient construction solutions. The Lafarge approach: a sustainable building throughout its life cycle Buildings represent nearly 40% of global energy demand. Reducing constructions' environmental footprint is an essential tool in fighting climate change. At least 80% of a building's energy consumption occurs during its use. It is therefore vital to improve its performances throughout its lifecycle. To do this, Lafarge has developed an approach based on 3 priority focuses: economizing energy consumption; reducing greenhouse gas emissions; keeping construction costs as low as possible; while improving structures' other environmental and social footprints as much as possible. To achieve these objectives, the Group uses the life cycle assessment (LCA) method, which quantifies a product's or building's environmental footprint throughout its life (greenhouse gas emissions, air pollution, water consumption, transport, etc.). And to raise the public's awareness of its commitment to more efficient and sustainable construction, Lafarge has createdEFFICIENT BUILDING, an approach relying on measurable factual data. EFFICIENT BUILDING is meant to highlight the particular benefits of a solution, construction project, partnership or innovation, such as its contribution to energy performance, durability or to optimizing resources used throughout a construction's life. Involving the whole sector in innovation Lafarge believes that a building's environment footprint begins from its design stage. In order to offer solutions upstream in the value chain, the Group focuses on innovation, devoting over 50% of its R&D investments in 2010, representing more than 70 million euros, to sustainable construction. The Group works in close collaboration with the leading research centers and prestigious universities worldwide, including: MIT (Massachussetts Institute of Technology) in the United States: the Ecole des Ponts et Chausses and the CNRS in France;

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Tsinghua University in China; IIT Madras in India.

Lafarge also carries out research in collaboration with architecture firms and engineering offices to offer solutions with environmental characteristics most suited to projects. For example, the Group worked with the firm Arte Charpentier to design Essilor's new R&D center, which sets an environmental benchmark. Collaboration with players in the sector also includes partnerships with project owners, such as Bouygues Construction, with whom Lafarge develops innovative solutions responding to sustainable construction challenges Taking the lead in sectoral bodie Lafarge works in numerous bodies and working groups, on an international and local level, to promote more sustainable construction and contribute to progress towards more sustainable methods of construction, in its sector and beyond. The World Business Council for Sustainable Development (WBCSD) Lafarge is a member of the World Business Council for Sustainable Development (WBCSD), an organization of 200 large companies committed to a sustainability approach. In the context of the WBCSD, Lafarge is particularly active in 2 programs: CSI and EEB. Cement Sustainability Initiative (CSI) Along with 23 cement manufacturers operating all around the world and representing more than 40% of global production, Lafarge had the idea of setting up the "Cement Sustainability Initiative". The program offers a framework for dialogue between cement manufacturers which agree to do all they can to: protect the climate, preserve resources (natural raw materials and fossil fuels), guarantee the health and safety of employees. In 2010, the Chairman and CEO Bruno Lafont co-chaired the CSI, showing the Group's permanent commitment. Energy Efficiency in Buildings (EEB) In 2006, Lafarge launched the EEB in partnership with United Technologies Corp., the world's largest supplier of capital goods. This project aims to develop the way construction is viewed, at every stage, from the design to the demolition of buildings. The goal, by 2050, is to construct buildings which are self-sufficient in energy and no longer produce any CO2. 17 multinational companies, all among the leaders in their sector, are now part of this project: United Technologies, Bosch, Dupont, EDF, GDF Suez, Philips, Skanska, Tokyo Electric Power Company, etc. With the Fondation Btiment-Energie Four major players in the building and energy sectors (Lafarge, Arcelor, EDF and GDF22

Suez) have come together to form the Fondation Btiment-Energie, a recognized NGO in France. Its mission is to support research and curb climate change. The goal is to quarter greenhouse gas emissions by 2050 through: a reduction in energy consumption, increased use of renewable energies in the building sector, promotion of innovative technologies.

With the United Nations As part of the United Nations Environment Program (UNEP), Lafarge is leading the Sustainable Buildings and Climate Initiative. The goal is to promote the most environmentally-friendly practices and establish criteria for assessing construction and building.

Chapter 4 Product Line Information In this summer, our main aim is to prepare plan for the aggregate products of Lafarge Definition & Classification of Aggregates Construction aggregate, or simply "aggregate", is a broad category of coarse & Fine particulate material used in construction Inert materials

Classifications Sand & gravel Hard Rock Slag Recycled concrete Geosynthetic aggregates

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Uses of Aggregates Important component of composite materials Concrete and asphalt concrete Serves as reinforcement to add strength to the overall composite material Drainage applications Relatively high hydraulic conductivity value as compared to most soils

Base material Under foundations, roads, and railroads Provides a stable foundation or road/rail base with predictable, uniform properties (e.g. to help prevent differential settling under the road or building) Low-cost extender that binds with more expensive cement or asphalt to form concrete

Properties of Aggregates Physical Properties Grading (Particle size distribution) Durability Particle shape and surface texture Abrasion and skid resistance Unit weights and voids Absorption and surface moisture

Chemical Properties Organic & Inorganic impurities Chlorides and sulphates

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Reactivity

Properties of concrete influenced by aggregates. Aggregates constitute 60-80% of concrete volume Strongly influence concrete's freshly mixed and hardened properties, mix proportions, and economy Cement and water requirements, workability, pumpability, and durability of concrete Particle shape and surface texture Influence the properties of freshly mixed concrete more than the properties of hardened concrete Rough-textured, angular, and elongated particles require more water to produce workable concrete than smooth, rounded compact aggregate Consequently, the cement content increases

Test methods of aggregates General Tests Sieve Analysis Water Absorption Aggregate Impact Value Aggregate Abrasion Value Aggregate Crushing Value Specific Gravity Test Alkali Aggregate reactivity test

Tests pertaining to manufactured sand Flow Cone test - Shape

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Methylene Blue Value test (MBV) - Noxiousness Gradation

Properties of concrete Relatively high compressive strength Significantly lower tensile strength The elasticity of concrete is relatively constant at low stress levels but starts decreasing at higher stress levels as matrix cracking develops Very low coefficient of thermal expansion As concrete matures it continues to shrink Due to the ongoing reaction taking place in the material The rate of shrinkage falls relatively quickly and keeps reducing over time Considered to not shrink due to hydration any further after 30 years All concrete structures will crack to some extent Shrinkage, settlement and tension Creep in Concrete When subjected to long-duration forces Permanent movement or deformation in order to relieve stresses Specialist applications require different types of concrete Regular concrete High strength concrete High-performance concrete Self-compacting concrete Shotcrete Pervious concrete Cellular concrete

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Roller-compacted concrete Asphalt concrete

Production of concrete

In its simplest form, concrete is a mixture of paste and aggregates. The paste, composed of portland cement and water, coats the surface of the fine and coarse aggregates. Through a chemical reaction called hydration, the paste hardens and gains strength to form the rock-like mass known as concrete. Testing of concrete Tests on Wet concrete Workability Slump test Flow table test Cohesiveness Tests on hardened concrete

Strength Compression tests Flexure resistance tests

Durabilty

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Chloride penetration

Compliance tests Non-Destructive tests

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Chapter 5: Project Design During summer internship, we concentrated mainly on 3 products: 1) 10 mm 2) 20mm 3) crushed sand/river sand So for this we focused on getting the Current market condition of aggregates. For getting the information from all available sectors of Mumbai and analyzing it in a effective manner. 1) Defining the type of questionnaire: We designed the questionnaire in two parts A) Open Ended B) Close Ended The close ended questions included satisfaction levels of their current source of supply , areas of supply , the no suppliers , their comfort level with the current material being supplied to them in terms of price, quality, payment terms, delivery, customer management and documentation. We also included questions which helped us study the factors that drive them to purchase aggregates. The open ended questions mainly consisted of questions regarding Lafarge and their awareness of an organized player like Lafarge getting into this unorganized market. During the study we also briefed the customers about Lafarge and the company coming up with a green field aggregate crusher in badlapur and noted their valuable comments on the same.

2) We used database for interviewing customers from

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Projects today database Lafarge Sales Team inputs Real estate websites Personally visiting key locations & identifying ongoing projects

3) Methodology During Study we tried to cover all the above said segments by interviewing players from each segments.

To cover players spread across whole metropolitan Mumbai area we divided it in 4 regions 1. Central Mumbai 2. Western Mumbai 3. South Mumbai

4) In total I interviewed fifty five customers across all segments spread across entire south Mumbai area to know their viewpoint regarding aggregate consumption, pricing, source and satisfaction level and river sand consumption, pricing and satisfaction level

Out of total sample size of 55 players we interviewed and got 55 responses (as some players are lying in more than one customer segment) Ready mix concrete Road contractors Builders Civil Contractors

Target Products:

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10 mm, 20 mm. Crushed sand.

We collect the information in following Sequence: What kind of activities the company is into. Collect the information regarding the current source of suppliers and the quantity demanded.

Reasons: Why they keep multiple suppliers. Collect information about the current price of material. Take the ratings of their current suppliers related to price, quality, delivery, customer management, Documentation.

Then we took the ratings of the purchase drivers. Then the awareness of Lafarge.

Chapter 6: Observations and Findings

Observations and Findings:

For getting the appropriate information regarding the market, I conduct the market research in south Mumbai region.

We prepared the set of questions regarding his current source of materials, quantity demanded, no. suppliers, current satisfaction from suppliers and purchase drivers.

While asking the questions I observed, whether he was aware about all the product features, by asking some extra questions.

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We observed the content of questions should be easy that it would be easily understand by builders.

We observed that currently customers are happy by keeping multiple suppliers to maintain the security of supply.

We found that in south Mumbai due to the space constraints most of the builders are ordering as and when required.

Most of the customers are happy with the current suppliers and the way things are working out for them.

During this research, we also observed that most the customers are still not aware of their pain areas.

We observed that most of the customers have given information in a appropriate manner.

Other than the shortage of river sand no project has suffered in its work this means that the supply of aggregate is appropriate.

The awareness of the company in the market is not that great, especially amongst the small players.

About Lafarges entry in the aggregate market, some people were happy to work with a organized sector, for some it didnt matter.

When asked about the satisfaction levels with the current materials being supplied to them, the following were the findings.

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1. Price Depending upon the market demand & supply of materials there were frequent variations in prices. These variations never altered their demand for materials as the projects had to be completed in the stipulated time frame. On the other hand buyers have this thing in mind that Lafarge being in International giant entered in Indian market will not be of great help as the overhead cost(of Lafarge) in running the business with a proper streamlined system will eventually be increase players cost. Some of the players are ready to deal with Lafarge if there prices are competitive enough compared to other suppliers. Those already dealing with Lafarge in aggregates or RMC have given mixed response, some are happy with the cost and some are not.

2. Quality The Shape, Size, geology and consistency of quality was of utmost importance to all the players. But they tend to compromise on that which we realize when ask to give the ratings about it. Lot of builders and contractors compromise on it to complete the project as times the main constraint. Though the first purchase driver while buying the material is Quality, a lot of them tend to compromise. A lot of big Builders have brought it to my notice that quality material is unavailable or it is not as per their standards. E.g. If ordered for 10mm metal, they get the material which is between 1015mm. This is due to the improper or insufficient quality parameters and standards observed by the suppliers which ultimately affects the end product.

3. Payment Terms.

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Payment terms was important for some as they had this mutual understanding with the suppliers, lot of them are not ready to do business with other players such as Lafarge because of this factor. Though the term is between 30-60days, the transactions never take place never on the mentioned time frame. Some of the builders and contractors have faced a tough time and they have had gone through the situations when they were suffered due to Lafarges payment term policies and that is why they do not want to deal with us in future.

4. Delivery Most of the players were satisfied with the delivery schedule and the quantity ordered as per requirements. Delivery truck size and security supply was of least importance to them. Their dealings with the sales representatives were proactively dealt with and their technical as well as commercial issues regarding quality were also resolved. When asked about Lafarge some of them(between kurla & mulund) had problems with delivery, they mentioned about Bhandup plant which is at a reasonable distance from their projects and still they faced this problem, when told them about Badlapur plant they were not sure whether to deal with us because of their past experiences.

5. Documentation None of the players faced any problem about documentation as they emphasized on proper challan, royalty slips, and invoices. This was the case when they dealt with suppliers other than Lafarge. When asked about us, some were happy and some who have dealt and who are currently dealing with Lafarge have problem of Batch sheet which is the essential part along with the material delivered.

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Chapter 7: Data Analysis We did the Processing on the available data with the following parameter: 1) Total Sample Size 55 Shopkeeper in a area of Dadar to churchgate. 2) % of Preferences = No. of times particular choice Total no of responses 4) Average= No. of points No. of responses We found the above mentioned findings with the use following Pie chart. This pie chart represent the composition of the sample size

What kind of activity the company was into:

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The current source of supply :

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From the above pie diagram we infer that 80% of the companies prefer to deal through an agent or a broker,and just 20% deal directly with the crush owners.

The current areas of supply:

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In the above pie diagram we can see that the major part is occupied by companies who dont know ,but this also includes the people whose supply keeps on fluctuating depending upon the prices followed by uran, turbhe, wada and others which includes vashi, borivili, pargaon.

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No of suppliers prefered by companies:

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The major part of the above pie daigram is occupied by the companies who prefere more than 1 supplier, when asked questions about the reasons for keeping more than 1 supplier the common answer was for the security of supply.

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Company satisfaction from the current suppliers: On the basis of price:

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When asked about their satisfaction level about price, we can see that on a scale of 5, 4.4 is an average rating for current price and 3.5 for the price satisfaction. When asked questions on the same lot of companies were not happy with the price variation but were helpless on the same.

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On the basis of Quality:

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From this we can find that, techincal support is one of the area with least rating and even the companies who have given top ratings in this area are the ones who receive it only at the start of the project, variation of size is one of the other concerns for the companies followed by shape and colour.

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On the basis of payment terms:

From this we can find that, most of the companies are happy with their current payment terms and days which is between 30 days to 45 days.

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On the basis of delivery:

From the above we can find that, the companies are not facing much of an issue in getting their deliveries on time only in some case where the trucks have got late due to traffic jams, rest the quantity ordered , and requirement have alsmost perfect ratings.

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On the basis of customer management:

From the above we can observe that most of the companies are happy with their current customer management, they are directly in contact with their suppliers.

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On the basis of Documentations:

From the above we can see that weighment slip is not received by the companies but it is not a matter of concern for the companies because alsmost everyone is taking material on measurement so they do not accept a weighment slip, in other cases where the royalty slip is received by the companies only when its asked.

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The main purchase drivers in aggregates:

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From this we can observe that, the above are the main purchase drivers which have got the highest ratings during the research.

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The purchase drivers with lest importance:

From this we can observe that most of the companies are not giving much importance to the operating standards of the suppliers as the rating is very low, followed by core fleet, plant capacity and supplier reputation.

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Has the project suffered in past 12 months due to supply of aggregates:

From the above we can notice that just the 2% i.e from a sample size of 55 only 1 company has suffered due to the shortage of supply that was because the government had closed down a few quarries, rest of them have never had a issues from the supply of aggregates but there have been stoppages in the work which was mainly due to the shortage of river sands supply.

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The major decision makers in the company:

From this we can find that,in most of the companies purchase department is the major decision maker, even if this is the case in most of the cases the site quality incharge and the project managers play an important role in the decision making process.Most of the RMC the site quality incharge play a very important role.

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Awareness about Lafarge:

From this we can find that, out of the total sample size 58% people were aware of Lafarge but then the main reason of concern for the company is that even if this 58% people are aware of Lafarge they just have a very rough idea of Lafarges business that is because some of them have seen Lafarges RMC trucks on the road but not a good awareness of the company, but in most of the cases this people are not the decision makers.

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Would they be comfortable in purchasing Aggregates from Lafarge:

From this we can find that, 64% people are ready to deal with Lafarge but it depends on a lot of things was one of the common answer, and the people who do not want to deal with Lafarge are the people who have good relation with their current suppliers.

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Chapter 6- Recommendations : From above analytical graph, we can easily point out that, Lafarge needs to improvise on the following points: 1) PROVIDE VALUE ADDED SERVICE: Make sure you provide better service than all your other competitors. If you want to charge premium price its the premium service that is going to get the premium price. 2) IMPROVE YOUR PAST RELATION: If you have had any problems with any customers please try to resolve the issues and try to build a better relation. 3) TRY TO UNDERSTAND CUSTOMERS PERCEPTION: Try and understand customers perception about the brand and clear their doubts if any. During the service I have come across people who had perceptions like the color of aggregate will not be good in badlapur, and the travel time will be too much. 4) TRY AND GET 1 CUSTOMER FROM EACH AREA: Initially try and get 1 customer from each area which will allow you to get a upper hand on the delivery issues. 5) SPREAD AWARENESS: I have observed during my study instead of Lafarge being such a big name in this industry its awareness amongst the small builders and a contractors is very less. Lafarge has to capitalize on its brand name 6) AVOID OVER COMMITMENT: This is one of the key recommendations that avoid making commitments which are difficult to keep because when you are not able to keep your commitments you frame a bad picture for customers.

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7) CREATE A STRONG DATA BASE: If the company aims at selling high quantity of aggregates it needs to have a very strong data base, especially of the small builders and contractors who are difficult to reach otherwise. 8) CREATE RELATIONSHIPS: The Company has to build a good relation with the purchasing managers, make sure that we are in their good books and their first preference even with a little higher price from the other suppliers.

Chapter 7 - Limitations Some of the limitations of the study are : TIME CONSTRAINT: This Study was carried on in a period of 2 months ,which was not enough.Even the travel time between 1 site to another wasted alot of time. QUESTIONNAIRE: This type of a study was completely new to this segment so it was very difficult to make them understand the questionnaire and the reason for doing the survey. GENERATING LEADS: Intially generating the leads was not very difficult. We took help of the directory but was not possible to make calls and meet each one of them in their offices, then we took help of the net but most of the data was outdated.Finally we decided to walk on the street and meet the mat the site and collect the data.

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PRODUCT KNOWLEDGE: The people at the site were not aware of the product most of them had to be made understood about shape size and then ask questions. PAIN AREAS: Most of the customers are still not aware of their pain areas so the questions had to be asked across different parameters. SAMPLE SIZE: We have a very limited sample size to come to an anaylsis on an entire south Market.There were a lot of area which was not covered due to the lack of time and inconvience in travel. RELUCTANT TO GIVE INFORMATION: This type of study is very new to this class that is the reason most of the site managers where reluctant in reveling the information. ACURRACY OF THE DATA: Most of the people available at the site were not aware of the price as it was done by the purchasing team, even the consumption changes every month depending on the speed of work.

Chincpokli Nagpada/Mumbai central Girgaon Khetwadi Mazgaon Dadar (W) Shivdi Lalbaug byculla Dadar parsi colony Bhivandi

3000 per brass 2500 per brass 3500 per brass 3800 per brass 2500 per brass 2500 per brass 3500 per brass 2300 per brass 2500 per brass 4200 per brass 3000 per brass

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Chapter 8: Annexure The questionnaire through which we had to extract information from the Builders, contractors and other players was as follows: Q1. Name of the company? Q2. Address of the company? Q3.Contact person with contact details Q4. What kind of activities is your company engaged in: Civil contractor ( Residential/commercial) Infrastructure (Road,Bridges,Water supply,Drainage,Metro Rail, Other mention) Commercial ready mix manufacturer Commercial asphalt manufacturer Paving / precast manufacturer Builder Captive ready Mix Player Others

Q5. Where are your current projects located & at what stage they are (not applicable to commercial ready mix Player) Project Stage Under Execution Intial Stage partially completed

Location

Contact person

Planned

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Q6. What is the average monthly consumption of the following types of aggregates Project wise?

Product Type 40 mm 20 mm 12 mm 10 mm 6 mm 0-5 mm/Crushed Sand Dust River Sand

MT/Brass/CFT

Q7. How many tons of aggregates have been consumed annually? (Cft/Brass/MT / annum) & Future Aggregate Consumption projection? 2010 Location 1 Location 2 P* = Projected Q8. Can you tell me at what price is the material supplied to you (Delivered price) Location wise? 40mm (per ton/per Brass/ per cft) 20mm (per ton/per Brass/ per cft) 10mm (per ton/per Brass/ per cft) 6mm (per ton/per Brass/ per cft) Dust (per ton/per Brass/ per cft) River Sand (per ton/per Brass/ per cft) 2011 P* 2012 P*

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Q9. What is your current source of supply? a) Directly from the crusher owner b)Indirectly, through an agent or a broker Q10. From which of the following areas, is material supplied to you?

a. Uran

b. Turbhe

c. Wada

d. Vasai/Virar

e.Do Not know

Q11. How many players are supplying aggregates project wise & there supply quantity/percentage & Reason for having so many suppliers

Q12. Are you satisfied with the current material being supplied to you, in terms of (Please rate on 5 point Scale 1 lowest to 5 highly satisfied?) Q12. Are you satisfied with the current material being supplied to you, in terms of (Please rate on 5 point Scale 1 lowest to 5 highly satisfied?)

a. Prices 1. Price, 2. Variation in Price b. Quality 1. Shape 2. Size

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3. Geology (colour) 4. Consistency quality

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5. Providing technical support - test reports/sieve analysis

c. Payment terms ( Pls mention your current payment schedule) Any other Pls 30 days 45 days 60 days Advance mention

d. Delivery 1. Adherence to Delivery schedule 2. Delivery as per ordered quantity 3. Delivery Truck size as per your requirement. 4. Security of Supply

e. Customer Management1. Proactive order booking 2. Resolving technical(quality)/commercial issues 3. Sales Representative reachable/availability 4. Sales Representative Relationship

f.

Documentation 1. Challan 2. Royalty Slip 3. Invoices 4. Weighment slip

Q13. What are the factors that drive you to purchase aggregates ( Please rate on 5 point Scale lowest priority to 5 Highly priority)

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Chapter 9: Conclusion

From this project, I can conclude that there has to be an aggressive and strategic action plan in order to get success in the market. As a MMS graduate, I learned many essential things while working on this project. This project thought me the importance of research while the getting the success. Company has to invest there time and resources for getting the exact amount of information from market. They have to show instant plan to remove some drawbacks then only they can remain in the competition. Any corporate should have excellent and proper communication plan which will effectively convey your message to your target customer. So IMC plan will be helpful in planning such activities to bring the proper results in less investment, IMC plan will be helpful to correlate all above the line activities and below the line activities to target our target customer .for any company,

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Communication process in as a tool by which they can understand the needs of their customers and can take the efforts to satisfy it. In the case of ASUS also, there are many problems. ASUS has excellent quality in there products but due they lack in aggressiveness in there communication process. Because of this, they are not able to retain there position in the Indian market. They have there specific target customer. ASUS has variety of products but they have not launched them in a aggressive manner in an Indian market. ASUS has to come with a effective promotional plan which will increase the attention of other customers to them. ASUS has to target different customer group. They have to target technical student to increase the sells. They have to go beyond existing marketing methods to achieve the success. I have tried my level best to include all such activities which will increase the awareness regarding ASUS and that will help ASUS to built the brand image in the minds of their consumer.

Chapter 10: Bibliography

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