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Partial Fulfilment of the Requirements for the Award of Post Graduate Diploma in Management (Recognized by AICTE, Ministry of HRD, Govt. of India)
By
ANKUSH DAWN
PG10-012
Batch 2010-12
A Study on Brand Positioning of Birla Cement Samrat With Special Reference to Asansol & Durgapur
At
BIRLA CORPORATION
By
ANKUSH DAWN
Batch 2010-12
TABLE OF CONTENT
CONTENTS
CERTIFICATE DECLARATION
PAGE NO 5 6 7 8 9
PREFACE
ACKNOWLEDGEMENT EXECUTIVE SUMMARY
34 36-46 48 50 52 54
ANALYSIS & INTERPRETATION FINDINGS & CONCLUSIONS SUGGESTIONS REFERENCES CITED ANNEXURE
PAGE
PAGE NO.
12 13 20 22 22 23 25 29
37 37 38 38 39 39 40 40 41 41 42 42 45
DECLARATION
I, Ankush Dawn, hereby declare that the project report entitled. A Project on Brand Positioning under the guidance of Mr. Koushik Choudhury submitted in partially fulfilment of the requirement for the award of degree of Post Graduate Diploma in Management from Integrated Academy of Management & Technology, Ghaziabad is my original work - research study carried out during 25th May, 2011 to 17th June, 2011 and not submitted for the award of any degree, diploma, fellowship or other similar titles or prizes to any other institution/organization or university.
Ankush Dawn
(Integrated Academy of Management & Technology)
PREFACE
Founded in 1919 by the visionary industrialist, Shri G.D. Birla, at the outskirts of the then Calcutta Birla Jute Manufacturing Company Ltd. was the first company of Birla industrial conglomerate. Under the stewardship of his nephew Shri M.P. Birla, the company diversified and expanded its business interest beyond cement, jute, PVC goods, steel casting and auto trims. Birla Corporation Limited is the flagship company of M.P. Birla group. The project entitled KNOWING BRAND POSITIONING OF BIRLA SAMRAT CEMENT IN ASANSOL BELT MARKET. The term of study was kept limited to make the title true. The focus of the report is to get the crystal clear understanding of the Brand positioning of Birla Cement in West Bengal, Particularly in Asansol Belt areas. With the growing Indian economy and the government policies for infrastructure the demand for cement is increasing and seeing this as an opportunity we are under taking many new projects for expansion of the production which are under implementation for increasing the capacity of the plants. Brand position has been taken into the consideration by two ways overall study of the whole Birla Cement Samrat Market & by doing Survey of whole cement market of above mentioned areas. The project contains the basic things which are necessary for knowing Brand- Positioning of Company. Firstly is the Market Research is done by me in Asansol Belt areas Taking FIVE major Brands Birla Samrat Cement, Ambuja Cement, Ultratech Cement, Lafarge Cement, ACC Cement & Other Cement. Data collected by me only from The Dealers .After data collection Research Methodology is done & found out the Brand-Positioning of cement in Asansol Belt areas. In a net-shell after the completion of my Brief report on the crucial subject matter of Knowing the Brand-Position of Birla Corporation Limited. I in my long lasting view has brought an eternal light towards Findings, Suggestions & Constraints regarding the Brand Position of the Birla Corporation which can play a vital role in taking it to the heights of the Success & goodwill to capture a good market share in this neck-to-neck competition creating hyper tension.
RECOGNITION
The company has been included in the prestigious list of 200 best under A Billion Companies in the Asia-Pacific Region, published by forbes magazine, in October 9, 2009 issue. It received the best corporate ethics award for 2008, instituted by IIPM, in Kolkata & & Was shortlisted for best CSR.
TECHNICAL CONSUMER SERVICE (TCS) CELL FOR CEMENT DIVISION:The TCS cell is a unique one-cell support system for dealers & consumer. It offers practical suggestions & guidance to consumers on home building, construction methodologies & choice of the rite cement. Supervision of work at site & prompt reaction of complaints are plus point of the cell.
ACKNOWLEDGEMENT
Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me in completing my summer project to the best of my ability. Being a part of this project has certainly been a unique and a very productive experience on my part. I would also like to thank my mentor and project coordinator Mr. Koushik Choudhury (Manager, TCS) for assigning me a project of such a great learning experience and acquainting me with real life project financing and appraisal. This project also would not have been successful without the help of Mr. Dibyendu Dey (G.M. HRD). Last but not least I would like to thank all the employees of Birla Corporation Ltd. who have directly or indirectly helped me with their moral support for the completion of my project. I am really thankful to Mr. Tarun Kr Singhal (my college mentor) for making all kinds of arrangements to carry the project successfully and for guiding and helping me to solve all kinds of quarries regarding the project work. His systematic way of working and in comparable guidance has inspired the pace of the project to a great extent I express my deep sense of gratitude to Dr. Pankaj Gupta (Executive Director of Integrated Academy of Management & Technology) & all Faculty members who guided me in my project.
Ankush Dawn
(Integrated Academy of Management & Technology)
EXECUTIVE SUMMARY
This project report is prepared as the partial fulfilment of two year degree programme of PGDM curriculum of Integrated Academy of Management & Technology, Ghaziabad. This Research project is a compulsory part of the academics. This research is done after the Third trimester of the PGDM curriculum. In this research, I have attempted the research about Brand Positioning. Positioning is one of the key elements of modern marketing management (Kotler, 2000). The overall purpose of this research is to identify the Brand Position of Birla cement in Asansol & Surrounding market. I have taken six major cement brands for this research. The whole research is based on Dealer & Sub Dealer survey. The project is followed by 8 Chapters:Chapter 1: Introduction of Cement Industry, Current Scenario in India, growth in Production & consumption, Birla Corporation history, subsidiaries companies, types of cement, manufacturing process of cement, standard requirement of raw material, distribution channel & SWOT analysis. Chapter 2: Definition & concept of brand positioning, brand positioning strategy, competitive study among various cement brands Chapter 3: Research methodology, objective of research. Chapter 4: Analysis & interpretation of collect datas Chapter 5: Findings & conclusions Chapter 6: Suggestions Chapter 7: References cited Chapter 8: Annexure
This report is an honest work towards the topic. There can be many short comings in because of the lack of the time, unavailability of data and other constraints
HAPTER
1
INTRODUCTION
INTRODUCTION
Cement Industry:Cement Industry originated in India when the first plant commenced production in 1914 at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during the period before Independence, the growth had been very slow. Since indigenous production was not sufficient to meet the entire domestic demand, the Government had Lto control its price and distribution statutorily. Large quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled in 1982 and this gave impetus to its pace of growth capacity increased to more than double from 27 million tons in 1980-81 to 62 million tons in 1989-90. The cement industry responded positively to liberalization policy and the Government decontrolled the industry fully on 1st March 1989. From 1991 onwards cement industry got the status of a priority industry in schedule III of the industry policy statement, which made it eligible for automatic approval for foreign investment up to 51% and also for technical collaboration on normal terms of payment of royalty. After the globalization and liberalization of Indian economy, the cement industry has been growing rapidly at an average rate of 9 percent. The country is now the second largest producer of cement in the world next only to China with a total capacity of 217.80 million tones. Additionally, in the last two decades, the industry has undergone rapid technological up gradation and growth, and now, some of the cement plants in India are comparable to the worlds best operating plants in all respects. Till a few years ago India was importing cement from other countries, as the production could not meet the demand for the whole country. Now the tables have turned as India has started exporting large quantities of cement and clinker to Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE, and Singapore etc. India is today the second largest producer of cement in world with an installed capacity of close to 217.80 million tons per year. 95 % is consumed domestically and only 5% is exported. Demand is growing at more than 10 % per annum. More than 90 % of production comes from large cement plants. There are a total of 146 large and more than 350 small cement manufacturing units in the country. More than 80% of the cement manufacturing units use modern environment friendly dry process. In the cement industry there are two sectors one consisting of large plants and the other consisting of mini cement plants. A factory with an installed capacity exceeding 2, 97,000 tons per annum (900 tons per day) is a large plant and with capacity up to and including 2,97,000 tons is a mini cement plant. At present, there are 146 large plants and about 365 mini cement plants. Since mini cement plants are scattered all over the country with a number of associations representing different types of processes, sizes etc. and some of them are even tiny units, it has not been possible to obtain correct data of this sector. The present installed capacity of large plants is 217.80 million tons and the estimated capacity of mini cement plants is 11.8 million tons.
Overview of the performance of the Cement Sector:The Indian cement Industry not only ranks second in the production of cement in the world but also produces quality cement, which meets global standards. However, the industry faces a number of constraints in terms of high cost of power, high railway tariff; high incidence of state and central levies and duties; lack of private and public investment in infrastructure projects poor quality coal and inadequate growth of related infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize excess capacity available with the cement industry, the government has identified the following thrust areas for increasing demand for cement: Housing development programmers & Promotion of concrete highways and roads; Use of ready-mix concrete in large infrastructure projects; Construction of concrete roads in rural areas under Prime Ministers Gram Sarak yojana.
Cement
Particulars Production Despatches(Including Export) Export Closing Stocks Capacity Utilization (%) 94% 93% FY07 155.66 155.26 5.89 FY08 168.31 167.67 3.65
Million Tones
FY09 231 199 7.78 FY10 236.16 209 10.6 FY11(expected) 262.62
95%
TABLE 1.1
98%
INDIA
11.70%
10.30%
9.70%
3.10%
3.40%
West
East
Central
North
South
FIGURE 1.1
18 16 14 12 10 8 6 4 2 0
Production
FIURE 1.2
COMPANY PROFILE
Birla Corporation Limited is a multi- product conglomerate It plays significant roles in the Cement, Jute, PVC floor Covering, Auto Trim and Steel casting industries. The concentric around the triangle represents this very multi-dimensional nature The apex of the triangle is a visual representation of the force that drives the entire Corporationthe unifying force in search of excellence.
MANAGEMENT
The day- to-day management of the company is being looked after by the Chief Executive Officer Shri B.R.Nahar who is assisted by a team of highly qualified professional persons.
Shri N.K. Kejriwal Smt Nandini Nopany Shri Deepak Nayyar Shri Pracheta Majumdar
Logo of Birla Corporation Limited:
Shri Vikram Swarup Shri Anand Bordia Shri B.B. Tandon Shri D.N.Ghosh
The corporate symbol of concentric circles around a triangle represents this very multi-dimensional nature. The apex of the triangle is a visual representation of the force that drives the entire corporation the unifying force in search of excellence. The various sub-business units are diverse in interest & operation. But they are held together by this centripetal drive. The circles represent the inspiration to explore new frontiers of growth.
Computerized mine planning and deposit evaluation to enable optimum use of raw material. Online X-ray fluorescence spectrometer for raw material control and raw mix design. Better aided instrumentation and process measurements using X-ray analysis, gas analyzers,
temperature and pressure measuring devices, etc
Centralized kiln control system in conjunction with expert control systems for process and
operation control.
BIS certification is compulsory for all varieties and grades of cement under the Cement (Quality Control) Order, 1962 issued under the Essential Commodities Act, 1955. Since the India cement industry recognizes that ISO-9000 quality system is extremely important for quality assurance, reliability and competitiveness, about 45 cement plants have already secured ISO-9000 Certification. The Total Quality Management (TQM) concept has also been adopted by more than 70 cement plants. Besides, some leading companies have acquired TPM (Total Productive Maintenance) accreditation. Some manufacturers are going ahead for world class rating, e.g. WCM (World Class Manufacturing) or ERP (Enterprise Resource Planning) to be at par with Best Practices anywhere in the world.
India produces different varieties and grades of cement, namely, Ordinary Portland Cement (OPC) (33, 43, 53 grades), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFSC) and many other varieties. Some of these varieties are used for special applications, e.g. blended cement helps in resisting certain chemical agents, sulphate resisting cement can be used in places where concentration of sulphate is more, a low heat cement is used for mass concreting work like dams, barrages and deep foundations. All these varieties of cement have been covered by Indian Standard specifications.
Mission: To achieve international standards of excellence in all aspect of division and diversified business with focus on customer delight through value of product, services, cost and reduction. To maximize creation for wealth and satisfaction for the stakeholder To foster a culture of participation and innovation of employee growth and contribution To cultivate high standards of business ethics and total Quality Management To provide technology and service through sustained research and development To attain leadership in developing, adopting and assimilating state-of-art technology for competitive advantage Offered full opportunities and challenges to develop individually enabling career growth Encouraged to acquire knowledge to meet the challenges of new technologies and business needs in the changing scenario Educated and guided to inculcate and practice right values as are nurtured by the organisation
Obligations:-
Towards Customers and Dealers: To provide prompt, courteous and efficient service and quality
products at fair and reasonable prices Towards Suppliers: To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries Towards Employees: Develop their capability and advancement through appropriate training and carrier planning Towards Community: To develop techno-economically viable and environment friendly products for the benefit of the people
The Product and Brand names are as Follows:UNITS Birla Cement Works Chanderia Cement Works Satna Cement Works Birla Vikas Cement Durgapur Cement Works Durgapur Hitech Cement Raebareli Cement Works PRODUCTS Portland Pozzolana Cement Ordinary Portland Cement Portland Pozzolana Cement Ordinary Portland Cement Portland Slag Cement Portland Pozzolana Cement Portland Pozzolana Cement Table: 1.5 BRAND NAME Birla Cement Samrat Birla Cement Chetek Birla Cement Samrat Birla Cement Khajuraho Birla Premium Cement Birla Cement Samrat Birla Cement Samrat
ISO 9001-2000(QMS) certification for Birla Cement Works, Chanderia Cement works from BVQI, UK IS/ISO 14001 certification in 1999-2000 for Satna Cement Works and Birla Vikas Cement, in 2002-2003 for Birla Cement Works & Chanderia Cement Works for "Best in Energy Performance" for .Satna Cement Works in 1993-94, 1994-95, 1995-961997-98 "Best improvement in Thermal Energy Performance" recognition from NCB for Birla Cement Works in 1992-93 and Chanderia Cement Works in 1993-94 "Excellence in Improving Machinery Health Condition" in 1997 "Lal Bahadur Shastri Memorial National Award" for Excellent Pollution Control
BRAND NAME:
Birla Cement Birla Cement "Samrat" Birla "Premium" Cement Portland Slag Cement confirming to IS 455/1998 Packed in HDPE Bags of 50 Kgs each Portland Pozzolana Cement confirming to IS 1489 (part-1) : 1991. Packed in HDPE Bags of 50 kgs each. Portland Slag Cement Confirming to IS 455/1998 Packed in Paper Bags of 50 Kgs each. Table: 1.6
Portland Slag Cement compressive strength maintained up to 53 Mpa i.e. much higher than minimum 33 Mpa prescribed by BIS in IS 455 : 1998. Portland Pozzolana Cement up to 53 Mpa much higher than minimum requirement in IS 1489 (Part-1): 1991.
A LEGACY OF COMMITMENT:
Birla Cement - In extensive use for the past 35 years. Birla Cement Samrat - A high quality superior strength cement launched in March 1999 and wellaccepted in the market and has gained top slot in a short period. Birla Premium Cement - A high quality superior strength slag cement, packed in paper bags. Quality Assurance System - Certified in accordance with IS/ISO 9002, and upgraded to IS/ISO 9001: 2000 in 2004. Product Certified by - Bureau of Indian Standards First major cement plant in West Bengal - Established in 1975 mainly to use Durgapur Steel Plant's waste by-product molten slag and then capacity enhanced to use fly ash, a hazardous waste of thermal plants at Durgapur. Only cement plant in India having - own plant for granulating molten slag obtained from blast furnaces.
Special Features:1. Having own Slag Granulation and Dryer Unit. 2. Computerised Process Controls. 3. Closed Circuit Ball Mills with high efficiency separators. 4. Most modern and updated laboratory to produce consistently superior quality cement 5. Adequate numbers of Bag Dust Collectors for pollution Control.
FIGURE 1.3
-Rail -Road
-Packed in PP Bags 50 Kg each -Packed Birla Premium Cement in paper bags 50 Kg each Table: 1.7
CAPTIVE POWER PLANTS One DG set of 860 KVA of SKODA make for Packing Plant and essential services Environment Protection:The management is alert to its social responsibility to protect the environment in and around its plant since inception with this self commitment, the waste product Molten slag of Durgapur Steel Plant is granulated by DCW and thus gainful utilization of waste product and also from environmental degradation. Electro Static Precipitators and bag filters have been installed in order to minimize air pollution. To control pollution of Durgapur, capacity of the unit enhanced to produce 1 Million TPA of PPC using fly ash, a hazardous waste of Thermal Power Plants. The plant is presently in operation with emission level much lower than the prescribed by the Air and Water Pollution Authorities.
PRODUCT PROFILE
Definition of Cement:In General is a generic name for powered material which initially have plastic flow when mixed with water but from solid structure on several hours with varying degree of strength & bonding properties which continue to improve with age. Cement is a binding material. Earlier the cement was used as a binding material. Cement is one of the strongest binding materials with long life. The weathering effect on cement is very low. For manufacturing of cement the basic raw materials is limestone (calcium carbonate). The limestone used in manufacturing of cement should have at least 80% purity. History of Cement: Joseph Aspedene discovered cement in 1824 Materials used were- lime, Brick, Bed, Volcanic, lava, water & ash. 1897 wet process KILAN came in existence DRY-PROCESS. Types of Cement:-
Water Proof Cement: Water Proof Cement is similar to OPC, with a small portion of calcium
stearate or non- saponifibale oil to impart waterproofing properties.
Raw material required for Cement: Various raw materials required for manufacturing cement are:1. Limestone - extracted from own mines 2. Late rite 3. Gypsum 4. Pet Coke 5. Fly Ash - readily available from nearby mines - purchased from Bikaner & Nagore - imported from foreign countries - brought from Kota Thermal Power Plant
FIGURE 1.4
Process Flow-Diagram:ng
Mining
Crushing
Limestone Transporta
tion
Cement Storage Cement Grinding Silo Processing Raw Grinding
Cement Packing
FIGURE 1.5
Fuel Grinding
Manufacturing Process
Mining: Limestone is extracted from own mines, which are situated approx. 4 km. away from plant. The mining of limestone is done in such a way so as to get 78% to 82% pure limestone.
Crushing: -The extracted limestone is then transported to Jai crusher by dumpers. The limestone Is crushed into small pieces of approx. 16 to 25 mm. Sizes. Grinding:- The crushed limestone along with latrine is feed into the Raw Mill for grinding. The ground material is called Raw Meal. It is than sent to the CF Silo Blending: - In the Silo the Raw Material is blended to make the mixture uniform. From here the material is sent to the pre heaters. Burning: - In pre heaters, the mixture is heated at various temperatures at various stages. this preheated material is now fed into the kiln where it is heated at the temperature of 1400-1500 degree where calcinations take place. Coal is used in the kiln to maintain the temperature and finally clinker emerges out of it. This a clinker is transported through conveyor into a storage Silo from where it taken out through vibratory feeders & fed into the open circuit cement grinding mill hoppers. Grinding: - The grinding of clinker with gypsum is done in cement mill. It is basically have where the grade of cement is controlled gypsum is added to increase the setting time of the cement. Then cement is than stored for some time Storage:& Packing The cement is than conveyed to different cement storage silos according to their grades & from silos it is packed in pp bags by using electronic packaging machines
OPC
PPC
PSC
33 Grades
43 Grades
53 Grades
FIGURE 1.6
Storage of Cement:Storage Time Fresh 3 Month 6 Month 12 Month 24 Month Table: 1.8 Standard requirement of various Raw Materials: Requirement for OPC:Particular Clinker Limestone Iron Ore Gypsum Table: 1.9 Standard requirement 92-93% 02-03% 05% Compressive Strength 100% 80% 72% 60% 46%
1. All windows & doors are closed and weather & Moisture must not affect to the cement. 2. Distance of stacking bags should be 1 feet from wall & 2 feet from ceiling 3. In one stacking put only max. 15 cement bags. 4. Use of cement bags FIFO system 5. Put the cement bags on wooden-plates & than cover by the plastics-sheets
DISTRIBUTION CHANNEL
Company has a very simple distribution channel for delivering the goods to the consumer. It is combination of:
COMPANY
STOCKIST
DIRECT SELING TO
VARIOUS GOVT CONTRACT S
FIGURE 1.7
DEALER
1. The industry is likely to maintain its growth momentum and continue growing at about 9 10% in the foreseeable future. 2. Government initiative in the infrastructure sector such as the commencement of the second phase of the National Highway Development project, freight carriers, rural road and development of the housing sector, are likely to be the main drivers of growth. 3. To meet the future demand they are increasing their production capacity day by day. 4. They have started working for their own electric supply plant, which will help them to continue their work smoothly. 5. Understanding between different departments helps them to grow in a rapid scale. Weaknesses:-
1. High capital cost and investment cost for each and every project. 2. The complex Excise Duty structure based on the category of buyer and end use of the cement has caused at lot of confusion in the industry. 3. The major concern for the industry are: o Procuring of limestone mines at economical price an entry barrier o Shortage of skilled labour o Advertisement
Opportunities:-
1. Adequate support from the Government is very essential to promote business activities. 2. Increase in the production and sell of cement at different plants have increased the turnover of the company. 3. It would be in the interest of both the government and the industry to work together with aim to streamline the indirect tax regime and keep the prices of the imputes under control so that the cement price can be maintained at reasonable levels 4. Despite slightly lower economic growth, the construction and infrastructure sector is expected to record healthy growth, which augurs well for cement industries. 5. The modernization, productivity improvement and cost control allowed small investors to enter in the cement manufacturing.
Threats:-
1. The recent moves by the Central Government in making the import of the cement total duty free, is a cause for the Indian cement industries. 2. Further recent changes in the Central Excise Duty structure by way of introduction of multiple slabs of Excise Duty is also a cause of worry for the industries. 3. Almost all the major players in the industry have announced substantial increase in the capacity and the possibility of oversupply situation cannot be ruled out. 4. Increased railway freight, coal prices and dispatch bottlenecks on account of truck Loading restrictions imposed by various State Governments 5. Scarcities of good quality Coal are some other factors which are cause of concern for the industry.
HAPTER-
2
CONCEPTUAL FRAMEWORK
Developing Marketing Strategy by Knowing Brand-Position of DCW & DHTC Product- 2011 for Birla Cement Samrat
Brand Positioning - Definition and Concept:Brand positioning refers to target consumers reason to buy your brand in preference to others It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brands benefits/reasons to buy; and it focuses at all points of contact with the consumer Brand positioning must make sure that: Is it unique /distinctive vs. competitors? Is it significant and encouraging to the niche market? Is it appropriate to all major geographic markets and businesses? Is the proposition validated with unique, appropriate and original products? Is it sustainable - can it be delivered constantly across all points of contact? Is it sustainable - can it be delivered constantly across all points of contact with the consumer? Is it helpful for organization to achieve its financial goals? Is it able to support and boost up the organization? In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential advantage must be created in their mind. Brand positioning is a medium through which an organization can portray its customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customers views and opinions. Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customers mind Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and its similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full flight.
FIGURE 2.1
Brand Positioning Strategy:Brand positioning is an essential element of a winning branding strategy. Positioning simply refers to how your product or service is viewed in the minds of prospects and customers relative to other products or services available in your niche. The term positioning has two connotations: 1. A vertical 2. A horizontal Vertical: the term refers to the order in which your product ranks relative to the products of your competitors in the minds of your customers in your industry niche. (For example, which product comes to mind first when I say the word cola?) Horizontal: the term refers to the qualities and attributes your product represents in the mind of your customers, again relative to your competitors. While you cannot directly control the ranking that your product or service enjoys in the minds of your customers, you can influence how you position the product in terms of qualities and attributes. That is, by properly positioning your product relative to your competitors in the minds of your customers, you will have much more control over how your brand is perceived in the marketplace. You will you will then effectively have a guide or map for how to execute your branding strategy
5 Factors of Brand Positioning:1. Brand Attributes:- What the brand delivers through features and benefits to consumers. 2. Consumer Expectations:- What consumers expect to receive from the brand 3. Competitor attributes:- What the other brands in the market offer through features and benefits to Consumers 4. Price:- An easily quantifiable factor Your prices vs. your competitors prices 5. Consumer perceptions:- The perceived quality and value of your brand in consumers minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, high- price tag solution, etc.?) In order to Position a Brand You must decide.... -- Who the Target Consumer is -- Who your main competitors are -- How the Brand is similar to your competitors --How the Brand is different from your competitors Where do you get this information? -- Your BRAND INVENTORY!! Brand Positioning:A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product. Birla Corporation Ltd. (Cement Division) introduce their new product, SAMRAT, with the value proposition of Aaj ya kal majboot har pal" .with PPC (Portland Pozzolana Cement) instead of OPC (Ordinary Portland Cement). Main features of SAMRAT are: Corrosion Resistant Work ability Sulphate resistant Durability Seepage Resistant Fineness Low Cracks in RCC Mass Concrete Low heat of hydration
Competitive Frame of Reference:A starting point in defining a competitive frame of reference for a brand positioning is to determine Category Membership- the products with which a brand competes and which function as close substitute. Points of Parity and Point of Difference:Once the competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, marketers can define the appropriate points-of-difference and point-ofparity associations. Point-Of-Difference:POD's are attributes or benefits consumer strongly associates with a brand, positively evaluated, and believe that they could not find the same extant with a competitive brand. Strong, favourable and unique brand associations that make up POD. Point-of-Parity POP's on the other hand, are associations that are not necessarily unique to the brand but may in fact be shared with other brands. These types of associations come in two basic forms: 1. Category 2. Competitive Category POP's are associations consumers view as essential to be a legitimate and credible offering within a certain product or service category. Competitive POP's are associations designed to negate competitors' points-of-difference. Choosing POPs and PODs POP are driven by the needs of category membership (to create category POP's) and the necessity of negating competitors POD's (to create competitive POP's) These are three key consumer desirability criteria for POD's:-
The project contains various questions. These questions are designed to analyses the various dealer behaviour towards the Best Cement Brand in Asansol & Surrounding areas. Project includes whole study of cement market & questionnaire help of this survey we know that which cement company best according to a various attributes of cement which company provides best sales promotion strategy, which company media is more effective in present market which company best in quality , colour ,supply T.C.S. etc. are know by this survey. The study basically draws attention towards the exceptional attributes of the various dealer and which factor influence to dealer. Major issue is to knowing cement market where we stand & what the reason behind lacking is & trying to come out with best result which helpful to company growth. About questionnaire: The questionnaire consists of 13 questions. All these questions are related to know the position of different brands prevailing in the market and dealers satisfaction level. This questionnaire is also helpful in knowing the market potential of Asansol & Surrounding areas. It is also helpful in knowing where our company stands in market. Major Issue: -
Analysis of questionnaire below: Brands available in Asansol & Surrounding areas Market share of companies Brand leader in the area Suggestions to increase the goodwill Effective media for advertising Brand image of Birla Cement Effectiveness of TCS of Birla Cement Timely delivery of Birla Cement
HAPTER -
3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Objective of Research: The purpose of research is to discover answer to question through the application of scientific procedures . The main aim of research is to find out the truth which is hidden & which has not been discovered yet. However, each research study has its own specific purpose. Objective of research as follow: To study the brand positioning of Birla Samrat in the market. To compare the major cement brands in terms of Price, Preference, Quality, Packing and Colour. To compare the advertisement strategy of the various cement brands. Research Methodology:-
Project Research Type: Data Sources: Research Approach: Research Instrument: Data Analysis: Sampling Procedure: Sample Size: Geographical Coverage: Duration of the Survey:
Descriptive Research Primary Data , Secondary Data Survey Method Questionnaire Logical analysis Choose 50 Respondents Asansol & Surrounding areas 35 Days Table: 3.1
HAPTER
4
ANALYSIS
&
INTERPRETATION
Overall Ranking of the Attributes Only:Attributes Preference Quality Packing Colour Availability Price Tech. Service Sale Promotion Brand Image Advertisement Total Birla Cement 1 1 3 1 1 2 2 4 1 4 2171 Ambuja 4 4 4 3 4 4 1 5 3 3 1918 Ultratech 2 2 2 2 2 1 3 3 2 1 2085 Table: 4.2 Lafarge 5 5 1 4 5 5 5 2 5 5 1359 ACC 3 3 5 5 3 3 4 1 4 2 1898 other 6 6 6 6 6 6 6 6 6 6 1128
Overall rank of the Companies:Company No. of Forms RANK Birla Cement 25 1st Ambuja 6 3rd Ultratech 7 2nd Table: 4.3 5 5th Lafarge 6 4th ACC 1 6th other
No of Forms of Various Companies:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL FORMS 25 6 7 5 6 1 50 Table 4.4
FIGURE 4.1
Number
50
Preferences Collected from Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL preference 266 175 189 140 184 90 1044 Table 4.5
FIGURE 4.2
Preference
300 250 200 150 100 50 0 Birla Ambuj Ultrat Lafarg Ceme a ech e nt Preference 266 175 189 140 ACC 184 other 90
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st Preference to Birla Samrat, 2nd Ultratech, 3rd Ambuja, 4th ACC, 5th Lafarge & at last other
Quality Collected From Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL Quality 252 181 214 133 192 78 1050 Table 4.6
Interpretation: - The above survey clearly shows that for quality most of the dealers GIVE 1 st
preference to Birla Samrat, 2nd Ultratech, 3rd Ambuja, 4th ACC and 5th Lafarge.
Packing Figure4.4
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1st choice for Packing quality to Lafarge, 2nd Birla Samrat, 3rd Ultratech, 4th Acc, and 5th Ambuja.
Colour Collected From Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL Colour 220 203 213 146 139 86 1107 Table 4.8 Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for colour to Birla Samrat, 2nd Ultratech, 3rd Ambuja, 4th Lafarge, and 5th ACC.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Birla Cement Ambuja Ultratech Lafarge ACC other
Availability Collected From Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL Availability 264 187 189 135 188 123 1086 Table 4.9
100% 80% 60% 40% 20% 0%
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for colour to Birla Samrat, 2nd Ultratech, 3rd Ambuja, 4th Lafarge, and 5th ACC.
Price 205 194 212 130 195 114 1050 Table 4.10
250 200 150 100 50 0
Price
Figure 4.7
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for Price to Ultratech, 2nd Birla Samrat, 3rd ACC, 4th Ambuja and 5th Lafarge.
Technical Services Collected From Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL T.Service 196 202 198 137 186 134 1050
Table 4.11
Technical Services
Figure 4.8
250 200 150 100 50 0
ACC
other
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for Technical Services 1st Ambuja, 2nd Ultratech, 3rd Birla Cement, 4th ACC & 5th Lafarge.
Sales Promotion
Figure 4.9
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for Sales promotion to ACC, 2nd Lafarge, 3rd Birla Samrat, 4th Ultratech and 5th Ambuja. Brand Name Collected From Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC other TOTAL Brand name 274 183 225 105 175 76 1038 Table 4.13
Brand Name
300 250 200 150 100 50 0
Figure 4.10
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for Brand name to Birla Samrat, 2nd Ultratech, 3rd Ambuja, 4th ACC and 5th Lafarge.
Advertisement Collected From Various Cement Dealers:Company Birla Cement Ambuja Ultratech Lafarge ACC Other TOTAL Advert isement 186 144 256 120 201 110 1038 Table 4.14
ACC
other
Interpretation: - The above survey clearly shows that most of the dealers GIVE 1 st choice for Brand name to Birla Samrat, 2nd, 3rd Ambuja, 4th ACC and 5th Lafarge. Total Score in Percentage Company Wise
Table: 4.15
other, 10.60%
Ambuja, 18.10%
Meaning & Definition A weighted average is an average that adjusts for the frequency of individual values. The weighted mean is similar to an arithmetic mean (the most common type of average), where instead of each of the data points contributing equally to the final average, some data points contribute more than others. The notion of weighted mean plays a role in descriptive statistics and also occurs in a more general form in several other areas of mathematics. If all the weights are equal, then the weighted mean is the same as the mean while weighted means generally behave in a similar fashion to arithmetic means, they do have a few counter-intuitive properties, as captured for instance in Simpson's paradox. The term weighted average usually refers to a weighted arithmetic mean, but weighted versions of other means can also be calculated, such as the weighted geometric mean and the weighted harmonic mean.
W=
WX X
X = No. of Respondents which are given
W= Weight Rank
Preference Quality Packing Colour Availability Price Tech. Service Sale Promotion Brand Image Advertisement Total
Table: 4.17
HAPTER
5
CONCLUSIONS
&
FINDINGS
HAPTER
6
SUGGESTIONS
SUGGESTIONS
At the end, I would humbly suggest the company that if company has good quality, more advertisement, regular contact, marketing experts dealing with dealers in all rural and urban areas. Then company can improve their market shares, brand loyalty and promote their sales easily. Company should develop its R & D department as per the market requirement Company should increase availability by which it can increase the sale and brand image For customer care Services Company should starts its concrete mobile van facilities As we all know infrastructure sector is growing rapidly so company improve supply to capture maximum market share Company should start its internal call centre for its valuable customers by which they can directly interact with company expert Company conducts society welfare programs in rural area so that company creates good brand image among people By giving some gifts and best wishes cards to the customer that your buying decision is very good. Company can improve sales and brand loyalty. Company should organize seminars, conferences, Manson meetings and dealers meet to promote sales quarterly
HAPTER
7
REFERENCES CITED
REFERENCES CITED
References: Kotler, Philip Marketing Management published by Vikas publishing house Pvt. ltd. New Delhi. Kothari, C. R. .Research Methodology. (third. edition 2007) published by. new age international (P) ltd. CMA Magazine (Cement Manufacturers Association) Aaker, D.A. and Shansby, J. (1982) Positioning your Product, Business Horizons, 25, (May/June), 56-62 Crawford, C. M. (1985) A New Positioning Typology, journal of Product Innovation Management, 4 , 243-253 Domzal, T. and Unger, L. (1987) Emerging Positioning Strategies in Global Marketing, journal of Consumer Marketing, 4 , 23-40 Hooley, G., Saunders, J. and Piercy, N. F. (1998) Marketing Strategy and Competitive positioning (2nd edi), Hemel Hempstead: Prentice-Hall Kotler, P. (2000). Marketing Management, (Millennium Ed), Upper Saddle River, NJ: PrenticeHall Park, C. W., Jaworski, B. J. and McLnnes, D. (1986) Strategic Brand Concept-Image Management, .journal of Marketing, 50 (October), 135-145 Muhlbacher, H., Dreher, A. and Gabriel-Ritter, A. (1991) MIPS-Managing Industrial Positioning Strategies, Industrial Marketing Management, 23, 287-297 News Papers:Times of India Hindustan Times Economic Times Web Based References: http://www.birlacorporation.com http://www.amzon.com http://www.wikipedia.com http://www.answer.com http://www.cma.com http://www.scribd.com
HAPTER
8
ANNEXURE
E) Lafarge ( ) F) Others ( )
2.
E) Lafarge ( ) F) Others ( )
3.
E) Lafarge ( ) F) Others ( )
4.
E) Lafarge ( ) F) Others ( )
5.
E) Lafarge ( ) F) Others ( )
6.
According to Quality & Market Image the prices of which cement company do you agree with?
A) Birla Cement Samrat B) Ambuja Cement C) Ultratech Cement ( ) ( ) ( ) D) ACC ( )
E) Lafarge ( ) F) Others ( )
7.
E) Lafarge ( ) F) Others ( )
8.
The activities of which cement company attract you for increasing their Sales?
A) Birla Cement Samrat B) Ambuja Cement C) Ultratech Cement ( ) ( ) ( ) D) ACC ( )
E) Lafarge ( ) F) Others ( )
9.
E) Lafarge ( ) F) Others ( )
10. Rank
E) Lafarge ( ) F) Others ( )
Date: _______________
List of Dealers
Name M/S Chakraborty & Co M/S Dutta & Co M/S Gorai Enterprise M/S Chatterjee Concern M/S Sankar Cement Center M/S Arpan Enterprise M/S Annapurna Enterprise M/S Maa Tara Agencies M/S New Mondal Traders M/S Naba Gupal Maghi Ms Roy Traders M/S Sachindra nath Das M/S Salil Banerjee M/S Sibani Cement Traders M/S Sourav Enterprise M/S Sree Bijay Traders M/S Neha Enterprise M/S B.k.Dawn M/S Sree Durga Hardware M/S Sarker Enterprise M/S Samir Grai M/S P.C.Roy & Sons M/S Martian Traders M/S Chhabra Enterprise M/S Sree Durga Enterprise Brand Name Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Birla Samrat Contact No. 03412211026 9474910318 03416460406 9434849637 9433401598 9474372172 9434433651 9434478032 9832232240 9832116474 9434664309 9434107851 9333130465 9232738554 9832160207 9932116774 9832194985 9434189031 9434664223 9434679091 9434163116 9749478864 9434189031 9832244696 9002655889
List of Dealers
Name M/S Das Traders M/S Sharma Enterprise M/S Narayan Cement Traders M/S Roy Store M/S Krisna Constraction M/S Rima Enterprise M/S Sanchari Enterprise M/S Chandra Traders M/S Hazra Hardware M/S Baba Traders M/S ement Traders M/S Goutam Traders M/S Ashish Enterprise M/S Rampal Agarwal M/S Paul Co M/S Prabhat Sadhu M/S Bogra Cement Centre M/S Arun kr Saraf M/S Sumon Traders M/S Dhriti Agency M/S Nabagopal Maghi M/S Jit Cement House M/S Asim Traders M/S Haridas traders M/S Arti Traders Brand Name Lafarge Ambuja Lafarge Ultratech Ultratech Ambuja Ultratech Ambuja Ultratech Ultratech Ultratech Ambuja Ultratech Lafarge Ultratech Ambuja Ambuja Ambuja Konark Lafarge lafarge Acc Ultratech Ultratech Ambuja 8900253700 9434004010 03436458445 9732013014 9933409240 9732246768 9434359802 9332304864 9732212208 9832174446 9832222814 Contract No. 9474471487 9434383126 9232796380 8001672669 8900253700 787249166 9434477629 9749220696 9474606092 03412214854 9333959073