Professional Documents
Culture Documents
2011
A PROJECT REPORT ON
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)
Through IMPULSE EDUCATION SOCIETYS MOMENT INSTITUTE OF BUSINESS MANAGEMENT, PUNE - 411 046
(2011-2012)
1
2011
DECLARATION
I hereby declare that this research entitled Marketing Policy awareness
analysis of Chembond in Pune city submitted by me to I.E.S. Moment Institute of
Business Management, Pune for the degree of Masters of Business Administration in Marketing Management. This is my original work. I further declare that the best of my knowledge and belief this research work has not been submitted earlier to this or any other university for the award of MBA degree.
2011
Acknowledgement
This project is teamwork; it would not have been possible without the guidance and cooperation of number of people. I wish to extend our gratitude to all those who facilitated the completion of my project. I am really grateful to Mr. Mohan Pande sales Manager of Chembond Chemical Limited Pune for his guidance to undertake this project and enabling me to turn my dream to reality. I express my deep sense of gratitude to my internal guide, Prof D.N.Itkyal for his help and advice during the preparation of this project. Finally, I would like to thank all others who directly or indirectly help me to accomplish my project work.
2011
EXECUTIVE SUMMARY
This project report entitled as MARKETING POLICY AWARENESS ANALYSIS FOR CHEMBOND FOR PUNE CITY has been undertaken as part of two months summer training program as per the Pune University rules at Chembonds sales office at Mumbai. The todays competitive environment, always giving good performance in the market is critical for an organization. The success of this is depends on many factors including successful rollout of the product in the project market. In order to stay in the market with the successfully it is essential to study the current position of the project in the relation to various factors like product preferences, project promotion / display and pricing strategy. This project tries to study the project sector in this contest and in doing so provide practical input for increase to market of Chembond`s product in project segments. The study shows the market share of Chembond and the perception of builders about CHEMBOND CHEMICAL LIMITED. Also, shows that what efforts should be taken for the increase the sale in mention time that company can adopt. The initial section of the report covers the concept of project analysis along with an objective of the study, research methodology and the manner in which the data has been collected. The data analysis section has been divided into two parts 1) Data presentation and 2) The numerical analysis. The next section pertains to the finding, suggestion and conclusion. It also includes the rationales behind the project strategy that the company can adopt. The database of the retail listing is also encapsulated here. The report finally ends with the mention of the various books and websites referred during the course of the project.
2011
INDEX
Sr. No. Particulars Page No.
1.
Introduction
2.
Literature Review
3.
4.
5.
6.
Research Methodology
7.
Data Collection
8.
9.
10.
Suggestions
11.
Limitations
12
Bibliography
2011
CHAPTER 1 INTRODUCTION
As a part of MBA, it is required to present a project report. For this purpose, one has to associate him / her with an industrial / commercial service organization for specific period of minimum eight weeks. This project report entitled as MARKETING POLICY AWARENESS ANALYSIS FOR CHEMBOND IN PUNE CITY has been undertaken as part of two months summer training program as per the Pune University rules at Chembond`s sales office at Mumbai. The purpose of this project is understand and study of Chembond project operation to do study of CHEMBOND CHEMICALS LIMITED. In respect of its project in the parts of Pune region. I have tried to understand technical knowledge of exiting CHEMBOND product.
2011
2011
Cannot be expected necessarily to have a deep understanding of the issues. In particular, the project needs to be clearly defined before the Project Manager accepts personal responsibility for its success. Remember that things change. The business changes; customers' needs move on; departments are restructured; there may be mergers and acquisitions; there may be demands to cut costs or drive change faster. At any time when the project's purpose might be challenged or the anticipated outcome is significantly changed, the Project Definition should be re-examined to see In what ways it has changed or should be Changed to reflect the new circumstances. Where this has an impact on the benefit case, approach, planning, timing, resourcing, or expected outcome, the Project Manager will need to review and re-calculate the detailed changes and present a revised definition for agreement by the project's sponsors and executive leaders. .
2011
CHAPTER 3
Company Profile
Chembond is a BSE listed company, established in 1975, with group sales of over Rs. 150 crores and 500 employees. Chembond manufactures Metal Treatment Chemicals and Water Treatment Chemicals in joint ventures with global leaders Henkel, Germany and Ashland, USA respectively. We are the market leaders in these products in India with sales to the automotive, steel, petrochemical, power, appliance, engineering, fertilizer and pharma industries. Chembond also manufactures construction chemicals for the building construction and infrastructure sectors and high performance coatings for structural protection from corrosion, floors and walls in clean rooms and shop floors and building exteriors. Chembond`s newest project in biotechnology promises to improve industrial applications using the technology of the future. Chembond`s modern, well-equipped and multi-purpose manufacturing and blending plants are located at Tarapur, Maharashtra; Baddi, Himachal Pradesh and Dudhwada, Gujarat. Additional blending plants are located in Chennai, Tamil Nadu and Balasore, Orissa. Warehouses and branch offices are located at Ahmedabad, Bangalore, Delhi, Faridabad, Jamshedpur, Kolkata and Pune.
2011
Chembond Chemicals Limited Chembond Ashland Water Technologies Limited Henkel Chembond Surface Technologies Limited Chembond Enzymes Company Limited CCL Building Systems Limited
Company growth over the years 2002 Launch of environmental bio-products. 2001Takeover of Drew treat Chemicals Limited and simultaneous Joint Venture with Ashland Inc, USA for Water treatment chemicals. 1997Joint Venture with Henkel KGaA, Germany for Metal treatment chemicals. 1995Chembond IPO, shares listed on the Bombay Stock Exchange. 1994Technology transfer agreement with Freiborne, USA, for manufacture of cold forming lubricants for the wire drawing industry. Diversification into manufacturing Anticorrosive coatings, Construction chemicals, Maintenance products and Water treatment plants. 1992 Expansion of facilities at Tarapur, doubling factory premises and substantially increasing the production capacity.1983 Diversification into manufacture of Cooling water treatment chemicals.1979 Construction of a manufacturing plant at Tarapur.1975 Incorporation of the company as Chembond Chemicals Private Limited on March 22, 1975. Chemicals offered were for Pre-treatment of metallic surfaces. Henkel Chembond Surface Technologies Ltd. is a Joint Venture between Henkel KGaA and Chembond Chemicals Ltd in operation since 1997. Henkel owns 51% of the JVC and Chembond, owns the balance 49%. Henkel is a global specialty products company and is the world's largest metal chemical supplier with a market share of over 65%. Chembond Ashland Water Technologies Ltd. is a Joint Venture between Chembond Chemicals Ltd and Ashland Inc., USA. The JV was a result of Chembond's acquisition of Drewtreat Chemicals Limited, and simultaneous merger of its water treatment business into the company.
10
2011
Brands
The Chembond brand stands for innovation, quality and service, and is a solid bond between the company and its customers worldwide, whether on large construction sites or in building material stores.
11
2011
Mission
We are a leading specialty chemicals company with a 35 year history in Indian industry. Our mission is to attain Market Leadership in each of our business areas by Creating Customer Delight through Value, Innovation, and Service.
12
2011
13
2011
The relative market share of large layers in waterproofing chemical industry has changed significantly over the years. Consolidation of capacities has seen, Chemistik and Araldite emerge as the leading players along with Chembond apart from Pidilite BSF, which has been the market leader during all the years from five years up to 2011.
14
2011
SUPER PLASTICIZERS :
Liquid internal water reducing and super plasticizers admixture for all types of concrete and mortar. Application Areas:
Ready mix Concrete. Pile Concrete. Under Water concrete. High Performance Concrete. Structural Concrete. Column Concrete. Paver Block. Pre cast Concrete. Pre Stressed Concrete. Self Consolidated Concrete.
Features :
2011
High ultimate strength. Reduce in cement concrete. Better ability. High workability without segregation and bleeding.
16
2011
Single component glass fiber reinforced acrylic waterproofing cum heat reflecting type membrane system. Application Areas:
Suitable for all types of; Water tanks, basements, roof slabs, terraces and balconies, sunshades, sunken toilets,
swimming pools and other exposed wet areas.
Application in marine areas. Protective coat against carbonation and chloride attack. Underground and water retaining structures. Hairline crack repairs. Concrete block. Features:
Reduce porosity and bleeding. Improve consistency at lower dosage. Tough water proof barrier coating. Easy penetration to masonary substrates.
17
2011
18
2011
REAPIR COMPOUNDS
KEM BOND SBR
Chembond Repair Compounds is an acrylic based ready to use non-shrink crack filling mortar in paste form. Chembond repair compounds is a ready to use non- shrink crack filling mortar in powder form.
Application Areas: For repairing cracks on plasters and walls. Suitable for both vertical and horizontal applications wherever hairline cracks are
observed.
Concrete repair affected by repeated loads. Structures affected by marine environment. Internal and external cracks in plaster. Structures affected by marine environment Bridge, harbours, dam. New to old concrete. Old to new concrete.
19
2011
Features:
Non- shrink For both internal and external surfaces. Hairline cracks should be opened to at least 1mm for ease of application. For non moving cracks up to 5 mm wide in plasters and walls.
KEM BOND SBR Powder : 1 kg pack covers 30 40 running meter (rm). (6mm 6mm).
Available Pack Sizes: KEM BOND SBR Powder 500 gm, 1 kg, 2kg
20
2011
21
2011
Ahmedabad 309/310,B Rajkamal Plaza, Opp. High Court, P.O.Navjeevan, Ahmadabad 380 014. Tel. (079) 2754671, 27542160.
New Delhi 607, Sixth Floor Madhuban Building, 55 Nehru Place New Delhi - 110024
Kolkata 32/6, Garihant Road (South) Gr. Floor, Kolkata -700 019 Fax : (033)24834537
22
2011
Construction Chemical Industry has traditionally been focused, largely on projects and After Construction Problems involving high end engineering skills.Changing times not only witnessed the emergence of a visible opulence in India but also saw our country emerging as a power house in information, space & satellite technology and academics. The construction technology too has gone through a sea change where more & more people have access to information and products. These changes have brought about a shift in the focus of Construction Chemical Industry also. Presently this industry is being viewed as a sunrise industry as efforts are on the anvil to take the products, systems and the services to the market place. The process of converting various speciality products into over the trade counter (OTC) products is bound to enable this industry to look beyond the horizons in terms of sales and services. Imparting product knowledge, skills and services as an integral part of this business, shall continue to be the main strength of future business approach as well. The term 'construction chemicals' covers a wide range of materials and is commonly used to describe various products such as admixtures, waterproofing compounds, and flooring compounds among others. The construction chemicals industry in India is still in a nascent state with the per capita consumption of construction chemicals being low in comparison to countries from Europe, North America, and even Southeast Asia. For the sake of convenience, the construction chemicals market has been delineated into various segments to quantify it as waterproofing, cement admixtures, repair and rehab chemicals, flooring compounds and so on. The key end user of construction chemicals is the construction industry, which includes infrastructure, industries, as well as commercial and residential buildings. It consists of following markets polymer based, inorganic based, and expoxies.
23
2011
Market Overview: The size of the industry is relatively small with an annual turnover of around Rs. 300 crore. There are far too many players in the sector with the unorganized sector contributing substantially Infrastructural Activities Prove to be the Building Blocks of the Indian Construction Chemicals Market. From being almost nonexistent until recently, the Indian construction industry has been growing at 15-20 % year on year, mainly on the strength of increased manufacturing activities, industrial growth, and heightened investments - especially by the government - in infrastructure and real estate. The rise in disposable income in India had spelled boom time for the construction chemicals market, as building contractors are realizing the importance of using these products for better-quality constructions. Expanding construction businesses in the largely untapped rural areas are also expected to provide a huge thrust to the construction chemicals market. Moreover, the Government's decision to give 100 percent foreign direct investments (FDIs) in the real estate business has boosted construction activities throughout India. Although the economic downturn had bogged down the real estate business, it is already showing signs of recovery. This revival, along with foreign investors' popular perception of India as a high-growth market, has given a shot in the arm for construction chemicals companies. Despite the inflow of funds, the market is restrained by low end-user awareness. Consumers are only gradually beginning to understand the importance of using construction chemicals for construction, infrastructural work, repair, and maintenance. The Indian consumer is realizing that while the cost of construction chemicals is only 2 percent of the overall construction cost, the benefits are manifold. Effective marketing and product innovation are keys to success in the Indian market, says the analyst. It is imperative to maintain long-term relations with customers and exert influence over channel partners to stay afloat in this market.
24
2011
Market participants are also frequently challenged by the absence of quality standards for the manufacture and application of construction chemicals. This inadequacy is likely to lead to price wars, which will constrict profit margins to such an extent that new companies might be reluctant to enter the market. This, in turn, could result in customer dissatisfaction, as they might only receive substandard products and services. However, participants are looking to pre-empt this situation by focusing on their offerings. "Indian manufacturers of goods and services are emphasizing compliance with the industry best practices to successfully compete against their international counterparts," notes the analyst. "This has improved the infrastructure and the working conditions in the plants, which has enhanced the quality of output and attracted more end users."
Market Sectors
following are the market sectors in India: Waterproofing Chemicals Cement Admixtures Flooring Compounds Repair and Rehab Chemicals Other Construction Chemicals (like grouts, adhesives, etc)
25
2011
The project analysis was conducted by me on behalf of the CHEMBOND GROUP. Following are Objectives of the study:
To find out, analyze sales of Chembond product. To do swot analysis. To understand the obstacles in the Increasing competition in the builders. To find out the expectation of users.
26
2011
1. Time limitation. 2. Research has been done only in Pune Region. 3. Companies did not disclose their secrets data and strategies. 4. There remains possibility of Error in data collection. 5. There is possibility of getting deceptive answer from respondent. 6. Possibility of Error in analysis of data due to small sample size.
27
2011
Research methodology is the description, explanation and justification of various methods of conducting research. This area deals with the research design, sources of data collection, sampling design, hypothesis, and statistical tools used for the data analysis and interpretation. The first step towards any research is to identify the problem and look at it objectively. After the problem is found, the steps for the research should be finalized.
Research type:The researcher can use various types of research like exploratory research, experimental research, descriptive research etc. In this research descriptive research has been used.
Research Design:The research design is the logical and systematic planning and directing a piece of research. In this research we decided that what would be the sample size? How to collect the data and what type of research should be applied.
28
2011
Motivation in Research: Desire to finish summer project successfully along with its consequential benefits. Desire to get respectability. Desire to face the challenges. Desire to get joy of doing some creative work. Desire to understand the basic things of Project analysis.
29
2011
Secondary Data:Secondary Data are those data which are readily available and the researcher can use it as per the requirement of research. In this research the sources of secondary data are Internet Companys Broacher
30
2011
3. Based on Secondary Data Analysis:According to a research carried out by Mckinsey 93% of the Indian Consumers are not influenced by advertisements to actually buy the product. This means that most of the customers (around 60%) make a purchase decision at the point of purchase, thus all the more reason for the company to place the product at the right place & in the right way at the point of purchase.
31
2011
Awareness Of Chembond
% of awareness chembond No. of Person In %
Yes 22 37%
No 28 63%
Awaerness Of Chembond
Yes 37%
No 63%
32
2011
Tile Adhesives 9
Sealant 5 25 18
33
2011
Weekly 18 36
Monthly 32 64
% Of Buying Pattern
34
2011
Why do you use Chembond products In no Why do you use Chembond products In no%
35
2011
2 4
4 7
6 0
8 0
36
2011
Midium Large 42 8 84 16
84%
37
2011
Yes 27 70
No 23 30
70 60 50 40 30 20 10 0 Yes No In No In %
38
2011
Why do you use Chembond products In no Why do you use Chembond products In no%
39
2011
Very Good 12 33
Good 8 17
Poor 5 28
In no
Excellent Very Good Good Poor
30%
40
2011
BSF 9 17
Pidilite 6 10
Chembond Forecerock 12 20 8 20
Sika 15 33
41
2011
CHAPTER 9 CONCLUSION
1. Only (37%) of the Builders are familiar with the CHEMBOND brand i.e. they have sold the brandsChembond at some point of time. This would be challenging in the field of construction.
2. Demand for medium size pack is maximum (83%) in all the areas. 3. Chembond have number of product and more demand for product Super plasticizer (81) Waterproofing (72) and Tile adhesive (27) are demanded products.
4. Normal margin is approximately 15% to 30%. For CHEMBOND products the margin is very less ( 20%) as compared to other company products.
5. Few People have good perception about CHEMBOND brand . A case-by-case it shows that the company is not going to spend required money on advertising the product. Hence the products itself become the advertisement for the product. For attracting the customer company should provide the display. And after providing displays builders should put at the right place. To ensure that the display put up remain for long duration and keeping long term relation with the builders is essential. This would also improve product by builders and reduce overall further display costs of the company. The manual of products knowledge along with the product would be helpful for the builder not only to know the product better but also helpful for them pushing the product to the end user for new counters we should give the initial offer.
42
2011
Taking all these efforts into account a broad tie up with the builder is desirable in the order to challenge the competition effectively. A case-by-case approach for each builder is hence essential.
43
2011
CHAPTER 10 SUGGETIONS
1. The end users of CHEMBOND product are Mistri, Applicator, Car painter. Instead of giving facilities to builders if we give the facility to these people like keeping the coin into the bottle will help. Finally it will get to the end user.
2. Long term tie up with the company is essential. Give reasonable discount to the contractor, so he can increase the building strength.
4. The Pune region area is very wide, so for that about 2 to 3 sales executives should be recruited.
5. Branding activities take the major role to get the position in the customers mind so following activities should be arranged.
TV ads on local channel, on news channel in the form of strip. Wall paintings - on road side, on existing retailers shop. Boards on existing or new retailers. News paper ads- in local newspaper like Sandhyanand, Lokmat, Prattkal, Loksatta and Sakal, etc. Hoardings- at signal, at road sides, at bus stops, at railway stations, on buildings which are prime locations. Providing pamphlets- which giving a complete product knowledge. Business Magazines- like magazines published by the Chamber of commerce.
6. Actual product demonstration campaign during Builders meeting could also help in creating awareness and interest about CHEMBOND product.
44
2011
7. The companies think that providing better service quality is the best tool to compete in the market. Better service quality may be in the form
Informing company scheme. Making customers aware about their status of policy.
8. For the expansion of builders chain more and more seminars and meeting should be conducted.
9. The prices of Chembond products need to be competitive and exploit the advantage of price factor.
45
2011
Internet Websites:
http://www.google.com/ www.chembondconschem.com
46