INDEX

Chapter No

Name Of the Chapter

Executive summary Introduction to the title, Objective, scope of the Project Company Profile Theoretical Background Research Methodology Data Analysis Findings Limitation of the Project Conclusion Recommendations Bibliography Annexure

Page no

1 2 3 4 5 6 7 8 9 10 11 12

2-3 5-6 8-16 18-19 21-24 26-44 45-47 48-48 49-49 50-50 51-51 52-52

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
The project was carried out at Lafarge Cement Pvt. Ltd. at Bhubnashowar region OBJECTIVE

The objective was carried out for two mail objective. The first objective was carried out the market survey for knowing prevailing market condition of Lafarge Cement in Bhubneswar market. The second objective of project was to study the sales promotion activities undertaken by Lafarge and other competitors.

RESEARCH METHODOLOGY The descriptive nature of the research necessitated collection of primary data from retailers of cement through market survey. Both the methods, personal interview technique and telephonic interview technique were used with the measure emphasis on personal interview method. Interviews were conducted through the structure questionnaire. Sampling Technique Random Sampling technique was used to select the retailers. Out of nearly 400 retailers of cement, randomly 50% of population was considered as a sample size. 189 retailers were visited to collect the information about the cement market. The project was carried out for a period of 60 days. After collecting the detailed information from the market, analysis of the data was made. The market research has reveled many facts and figures about cement market.

RESEARCH AND DESIGN: INTRODUCTION

OBJECTIVES SCOPE AND LIMITATIMITATION

INTRODUCTION TO THE TITLE Today it is fashionable to talk about the new economy. We hear that the business are operating in globalize economy; things are moving at a nanosecond pace our market are characterized by hyper competition and disruptive technologies are challenging every business and so business must adopt to empower consumer To become successful in such a competitive environment the business organizations have to be customer oriented. Customers need and want must be taken care of. Built customer and not only products. Customer must be delighted. This information about the market could be collected by the way of proper market survey. Rom the market survey we get the feed about the good or services of the organization .For this purpose the said project work is undertaken. The project was carried out for knowing prevailing market condition of Lafarge Cement in Bhubaneshawar Region .The second objective of the project was to study the sales promotion activities undertaken by Lafarge and its other competitors. The project was carried out in the marker of Bhubaneshawar of Orissa state. There are six market players in cement industry. They are Konark, Century, Ultratech, ACC, Ambuja, apart from these there are few local brands selling in the market. The information about the market was gathered by visiting retailers in the market. Interview of retailers was taken depending upon there accessibility. While doing the project attempt was made to collect maximum information about the marker. To get actual and correct information ,it was not told retailers that the survey is conducted by Ultratech Cement for the obvious reasons .Number of retailers were visited to get the actual picture of the market. Again, the retailers of each grade (according to the performance) were visited, to get each and every detail about the market. Most of the time was spent in traveling for one retailer were reluctant to give the information , as they do not want to disclose their business details. Visits to such retailers were loss of time, money and energy. 5

After collecting the derailed information about the market analysis is done. In the analysis, the observations recorded during the project were carefully analyzed and the results are prepared. The findings and result of the project work are given at the later stage in the report.

OBJECTIVE OF THE PROJECT

This project was undertaken for two main objectives was To carry out market survey for knowing prevailing market condition of Lafarge India Pvt. Ltd. In Bhubaneshawar (Orrisa) The second objective was To study the sales and promotion activities undertaken by Lafarge cement and other player in the market. To attain these two objectives various other sub objective are needed to be achieved. These are listed below. To analyze the market share of Lafarge Cement in Bhubaneshawar market. To know the customers preference for the brands of cement. To know the preference of retailer for sorting different brands of cement. To understand the effectiveness of various sales promotion activities of cement. To know preference of retailers for different gift and incentives. To analyze the sales promotion activities of various brands. To analyze the transportation facilities for Lafarge and other cement companies. To analyze the frequency of visits of marketing representative of various companies Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus increase the business prospects.

Scope of the study 1. The study has been done for the Cement so more or less it helps in understanding the consumer preference towards the cement market. 2. The study can help in analyzing certain weak point, improving on which a company can overcome the low sales of its cement but only in Bhubaneshwar region

COMPANY PROFILE

LAFARGE VISION To be a leading cement company in India by: Sustained growth that creates value for our shareholders and doubles our turnover every 4 years. Building strong brands that meet consumer needs and aspirations. Embracing safety as a way of life. Being a responsible citizen and ensuring sustainable development. Being committed to the highest standards of corporate governance by conducting our business with integrity, honesty and transparency. Fostering a performance culture in an environment of learning that encourages mutual trust and respect, teamwork, customer orientation and sharing of best practices - which makes us a preferred employer.

HISTORY The beginning (1833 to 1914): In 1833, Lon Pavin, launched an industrial lime production operation, having taken over a business acquired by his family in 1749 with the purchase of the Lafarge domain in south-eastern France, an area known for generations for the quality of its limestone deposits. The company signed its first major international contract in 1864, delivering 110,000 tonnes of lime for the construction of the Suez Canal. Lafarge opened its first central research laboratory in 1887, the Le Teil Laboratory, with which highly reputed scientists collaborated. In 1908, the Central Laboratory filed a patent for Cement Fondue calcium aluminates, obtained by fusing a mixture of bauxite and limestone. This new high alumina binder gradually established a reputation as a rapid-hardening cement resistant to both high temperatures and corrosion. In the years until 1914, favoring a strategy of horizontal integration, the company now the "Socit des Chauxet des Ciments de Lafarge du Teil" set about acquiring lime and cement companies in all parts of France.

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1914 - 1955 Growth on all fronts International development began with the opening up of North African markets. Lafarge, which had operated in Algeria ever since 1866, now became the leading Portland cement producer in Algeria, and set up operations in Morocco and Tunisia. Lafarge continued to acquire companies in mainland France. With a quarter of the domestic market, the company became established as France's number one cement producer. In 1926, Lafarge opened its first aluminous cement plant in the United Kingdom. It diversified into gypsum in 1931, and developed Superblanc, new cement, in 1932. By 1939, Lafarge was the leading cement producer in France. After 1945, Lafarge gained a new lease of life with the arrival of Alfred Franois at the helm, the Marshall Plan and the post-war rebuilding boom: production doubled over the next ten years. 1955 - 1981 Mergers, acquisitions, developments

In 1956, Lafarge constructed its first North American cement plant, creating Lafarge Cement of North America with the start-up of the Richmond plant in Canada. In 1959, Lafarge began operations in Brazil. By the end of the 1960s, Lafarge Canada had become the third largest cement producer in the country, with annual production capacity of 900,000 tonnes. In 1980, a merger agreement was signed between Lafarge and Coppe, the newly formed group becoming Lafarge Coppe. Acquisitions in the United States and Canada established Lafarge Coppe as the number one cement producer in North America. The size of the Group rose from 12,000 to 17,000 employees. 1982 - 1990 The conquest of Europe

During the 1980s, with the construction of a single market representing more than 300 million inhabitants, the Group chose to expand its business in Europe. Lafarge first turned to Germany, raising its stake in Portland Zementwerk at Wssingen to 83%. Through the purchase of the Swiss company, Cementia in 1989, the Group acquired interests in Asland (Spain), Aslan 11

(Turkey) and Perlmooser (Austria). Then followed the investments in Eastern Europe: East Germany, the Czech Republic (1991), then Poland, Romania, Russia and Ukraine. The agreement with the East German cement producer, Karsdorf, came even before German reunification had been mooted. 1990 - 2001 Lafarge becomes world leader in building materials

1994 saw Lafarge take a foothold in China. Today, all four of the Group's Divisions operate there, and there have been developments throughout Asia (1998: Indonesia and the Philippines; 1999: India and South Korea). The Group's expansion in Poland began in 1995 with the acquisition of a 75% stake in Kujawy. Within six years (2001), 4 entities representing all four Divisions were active in the country.Lafarge acquired Redland in 1997, positioning itself more strongly in Aggregates and Concrete and gaining entry onto the Roofing market. Thanks to the acquisition of Warren in Canada in 2000, Lafarge became one of the leading aggregates producers in North America. Lafarge focused on its main four Divisions, and divested its Specialty Products businesses, which became Materis. Lafarge was the first industrial group to conclude a partnership agreement with WWF (World Wildlife Fund for Nature). In 2001, following the acquisition of Blue Circle, Lafarge became the world's leading cement producer. Numerous acquisitions and joint ventures in all four Divisions, and on every continent, particularly Asia, have continued to consolidate its world leadership position. In July, 2001, Lafarge was introduced onto the New York Stock Exchange (NYSE).

2001-2004: A global growth

In 2002, the Gypsum Division acquired the plasterboard businesses of Gyproc (a subsidiary of British PlasterBoard) in Germany, Poland and Central Europe. The Cement Division inaugurated in China the new Dujiangyan cement plant, the first greenfield cement plant for the Group in China, and acquires a 70% interest in the Chongqing cement plant.

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The Cement Division acquired two new cement plants in Slovenia and in Serbia. In 2003, the Cement Division enters Australia and had constructed a new cement plant in Mexico, near Mexico City. In 2004, the Group:

Acquired in Ecuador Cementos Selva Alegre. Acquired The Concrete Company of Columbus, Georgia, United States with operations in both cement and concrete. Acquired Hupfer Holdings with operations in France and Switzerland in aggregates activities. Acquired an additional 10.2% stake in Lafarge Halla Cement, in South Korea. Acquired an additional 14% stake in our gypsum operations in Lafarge Gypsum in Asia, in a joint venture with Boral.

Lafarge Group's Growth Strategy

To maintain its leadership in construction materials, the Group is aggressively following a strategy of growth and competitiveness. This includes international development and expansion in all of its businesses. Lafarge Group has established its presence or consolidated its position, alone or with local partners, in countries as diverse as Egypt, Uganda, Mexico, South Korea, Venezuela, Brazil, Jordan, Poland, Germany, Argentina, Turkey, Canada, United States, Australia and Ukraine. With operations on every continent, Lafarge is committed to a strategy of international development. It aims to simultaneously, increase its business in countries with high market growth potential, and further develop products enjoying growth in mature markets, capitalizing on every opportunity and offering synergies with existing businesses.

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LAFARGE ORGANIZATION Lafarge Cement - India Lafarge India provides a professional and exciting environment to its employees and is consistently able to attract the best talent in the industry. Lafarge has always put its employees at the heart of its strategy. Its management style has for many years been termed "participative management", open to the cultures of the companies it has acquired on all five continents. The keywords are Participation, Efficiency and Example. As part of Lafarge's training philosophy, it conducts regular exchange of personnel between its operations in Europe, North America and other parts of Asia with India to ensure that the Indian operations reach operating efficiencies comparable with the best in the world.

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CEO President
VP
(Manufactur ing)

VP (human
resource)

VP
(Sales)

VP
(Control and performance)

VP
(finance and legal)

VP
(Business development & strategy)

RSM

ASM

Summer trainee

PRODUCTS DETAIL
1. Lafarge Concreto

15

Lafarge Concreto has been launched by Lafarge to meet the need of homebuilders in India for truly premium all-purpose cement. Concreto was developed in Lafarges state-of-the art laboratories, which are extensively networked with its Central Research Institute in France. The company has leveraged its combined know-how of more than 170 years and its experience across 75 countries to develop this unique product. Concreto is a specially engineered, premium quality all purpose cement. It can be used for varied applications like roofing, foundations, beams, columns, plastering and brickwork. It is specially formulated to provide a denser concrete mix than normal cements. Concreto is characterized by:

High ultimate strength due to the addition of highly reactive silica containing more than 95% glass content. Enhanced durability due to optimum pore refinement and consequently denser concrete matrix this improves the impermeability of the concrete. Exceptionally high resistance to chemical attack (sulphates and acids). Protects reinforcement from corrosion. Reduction of structural cracks due to lower heat of hydration than ordinary cements. Low heat of hydration and higher resistance against alkali-reactive aggregates.

Lafarge Cement Lafarge Cement is the flagship brand of Lafarge. A unique outcome of international expertise, this super performing cement has been developed taking into consideration the weather conditions in India and the practices of homebuilding. Lafarge Cement is available in Portland Slag Cement (PSC) and Portland Pozzalona Cement (PPC) variants. Lafarge PPC and PSC are very high performance blended cements far exceeding the requirement of IS: 455-1989 & IS: 1489. Lafarge PSC is the only PSC in its markets produced by blending high quality pulverised clinker with the most consistent slag of over 95% glass content. This therefore provides very high compressive strength exceeding 60 MPa at 28 days. Lafarge PSC has a very low heat of hydration and is hence suitable for mass concreting and concrete cast under Hot Weather Conditions. Workability retention is also enhanced. Lafarge cement has very high soundness as reflected through the extremely low values of expansion through the Le-Chatelier test and Autoclave tests.Its C3A content is low, thus making it more resistant to sulphates compared to other cements. Its other chemical properties contribute to a very low co-efficient of permeability of the concrete prepared, thus making it an ideal choice for construction of dams, foundations, tunnels, or other subsoil constructions and structures that shall be in contact with water. Being a blended cement with a highly reactive slag obtained from the best source in the country so far, it improves the density of the concrete mix thus increasing the durability factor.

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Plants and Operations

Lafarge India's current cement operation comprises a modern split location cement facility located at Sonadih (District Raipur, Chhattisgarh) and at Jojobera (District Singhbhum, Jharkhand) and an integrated cement facility located at Arasmeta (District Janjgir-Champa, Chhattisgarh). A brief description of Lafarge India's existing facilities is as below: Location Facilities Clinkerisation unit Sonadih Cement Grinding unit Cement Grinding unit with separate circuits for clinker and slag grinding Clinkerisation unit Arasmeta Cement Grinding unit Rated Capacities (as of 2006) 1.4 MTPA of clinker 0.5 MTPA of Ordinary Portland Cement (OPC) 43 grade 3.4 MTPA of Portland Slag Cement (PSC) & Portland Pozzolana Cement (PPC) 1.6 MTPA of clinker 1.6 MTPA of Portland Pozzolana Cement (PPC)

Jojobera

The plants at Sonadih, Jojobera and Arasmeta are based on the dry process technology and use energy efficient processes. The thermal energy of the kiln is optimized by the use of a multistage pre-heater with in-line pre-calciner. Lafarge worldwide places a very high emphasis on protection of the environment. In all its Indian plants, bag filters and electrostatic precipitators are used to reduce pollution and ensure environment friendly plant operations. Lafarge India has adopted stringent quality control measures to ensure the highest quality cement .The plants have the benefit of the strong technical and R&D set-up of Lafarge group called DPC which is supported by CTI & CTEO - at Lyon in France, CTS - at Montreal in Canada, ATC - at Kuala Lumpur in Malaysia and CTEC - in Austria. Lafarge Group employs more than 500 scientists and spends more than 100 million euros annually in developing leading technologies in the area of building materials and construction technology. The regular exchange of knowledge and technological improvements between the technical centre and the Indian operations has enabled Lafarge India to improve operational efficiencies on a continuous basis.

17

18

THEORETICAL BACKGROUND

PROMOTION
Promotion is persuasive communication. It is a highly visible element in the marketing mix. It tells the target customer product, price, and place. It tells also known as marketing communication. Promotion consist of activities that facility exchanges with target customers through persuasive communication to stimulate demand. According to Professor Philip kotler:-

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Promotion includes all the activities the company undertakes to communicate and promote its products to the target market. In modern marketing the question is not whether to promote but rather what to say, to whom and how often. A good product, an attractive price and an accessible distribution must be supported by an effective promotion to satisfy customer needs. Promotion activity include advertising, sales promotion, public relation, and direct marketing. Promotion can also be viewed as the management of the customer buying process of pre-purchase, purchase and post purchase.

FUNCTION OF PROMOTION:Promotion is a tool to influence target customer and to face competition. It performs four functions: Information Persuasion Reminding Reinforcing PROMOTION MIX The promotion mix is the combination of advertising, public relations, sales promotion, personal selling and direct marketing tools that help achieve marketing objective 1. ADVERTISING: - Advertising in any paid form of nonpersonal communication by an identified sponsor to promote product. 2. PUBLIC RELATION: It refers to programmes designed to promote or protect a company

image and products. Publicity is any unpaid form of communication through media about an organization, its policies and products. 3. PERSONAL SELLING: - personal selling is personal communication with customers to persuade them to buy products. It permits interaction and relationship

20

building. Sales persons provide feedback about the market, competitors and customers. 4. DIRECT MARKETING: - It is persuasion by manufacturer to specific customers. The tools of direct marketing are: 1. Face to face selling 2. Mail 3. Catalogue marketing 4. Telephone 5. E-mail 5. SALES PROMOTIONS: - Sales promotion has been increasing in popularity as a tool. Marketers are using it aggressively. Sales promotion refers to short term incentives to stimulate demand. It is used to create a stronger and quicker purchase response. It can be directed at consumers, middleman and sales personnel. It supplements advertising and facilitates personal selling. According to Professor William J. Stanton:- Sales promotion refers to demand stimulating devices designed to supplement advertising and facilitate personal selling. According to professor Philip kotler:- Sales promotion consists of diverse collection of incentives tools, mostly short term, designed to stimulate quicker and or greater purchase of particular product /services by consumer or trade. NATURE OF SALES PROMOTION: 1. It is short term 2. It provides incentives 3. It aims at quicker response: 4. It is directed at target audience

OBJECTIVE OF SALES PROMOTION 1. Objective for consumer promotion:21

(a) Encourage greater purchase volume (b) Attract new customer (c) Introduce new products 2. Objective for trade promotion:(a) Carry and push new item (b) Increase resellers inventories (c) Attract new channel members (d) Offset competitive promotion (e) Better store display 3. Objective for sales force promotion (a) Motivate sales force (b) Support new product METHOD OF SALES PROMOTION Sales promotion methods differ according to the target audience. They can be directed at consumer promotion, trade promotion, and sales force promotion (a) Consumer promotion method Free sample Coupons Rebates Premium Price off Contests Display/Demonstration (b)Trade promotion methods Free goods Allowance Prices-off Sales contest Gift items Credit facilities Trade show 22

(c) Sales contests Trade shows and conventions Gift items Promotional kits Bonus and commissions

. .

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY The research methodology is the way systematically solve the systematically solve the research problems. The main objective of the product was to know the market condition of Lafarge Cemejnt and to study the sales promotion activities undertaken by various cement companies. For this, right at the beginning the research plan was prepared. This includes all the detail of how to go about research work of Lafarge Cement.

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RESEARCH PLAN Definition of research problem The research problem can be defined as follows 1. `What are the cement being used by various customer in the region of Bhubaneshwar and what are their expectation from the cement. 2. What the market trend is of cement and brand awareness of Lafarge Cement.

DATA COLLECTION The descriptive nature of research necessitates collection of primary data from retailers through market survey, personal interview technique was used and interview were conducted through structured questionnaire the question were asked in prearranged manner. The market research was conducted over a period of 60 days. Data was tabulated, analyzed and suggestion and recommendation were given. RESEARCH INSTRUMENTATS The Research instrument chosen for conducting the survey was structured questionnaire was pre[pared as show as in the annexure. The questionnaire includes open ended as well as close ended question, few open ended question were included to obtain the perception of the retailers. The questionnaire designed and a pilot survey was made with the questionnaire and then changes were made accordingly with the questionnaire.

SAMPLE PLAN A sampling technique was chosen for the study was Random Sampling Technique. This is the most common method of selecting the sample. This is because the retailers are localized in different part of the marker a group of retailers are chosen are random from large group. It gives all retailers in a group and equal chance of being selected for the purpose of the survey.

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SAMPLE SIZE Out of nearly 400 retailers in cement market of Bhubaneshwar and its region around randomly 50% of total population was considered as the sample size. CONTACT METHOD Both personal and telephonic interview methods were used for conducting the market survey. Personal interview had the benefit one to one communication between the researcher and the respondent. If the respondent is having any doubt or queries in their mind, they can get heir doubts clarified from the researcher on the spot and so superior of data was collected from the survey was collected from the survey. Tele interview was conducted with the structured questionnaire. Tele-interview was less costly and less time consuming but the data could not be collected in detail from the respondents. Also any doubt or queries of respondent could not be clarified. ANALYSIS AND INFORMATION Detailed information was collected for the project marker survey for retail marketing and sales promotion activities of Lafarge Cement for the area of Bhubaneshawar market. The information was collected by visiting the retailers of cement present in Bhubaneshawar market. The interview of retailer taken in a friendly atmosphere so as to encourage them to give right information, without any hesitation. Because of some inherent limitation of telephonic interview, the method of personal interview was mostly used. ANALYSIS The analysis of the collection information was made in scientific manner. Different manner rank was given to each alternative of particular questions, in the questionnaire. A particular rank was given in the following manner, Rank1 For the most favorable alternative

26

RankRankRankRank-

2 3 4 5

For the moderately favorable alternative For unfavorable alternative For most unfavorable alternative Unfavorable

To come at the conclusion, total of each alternative of all the sample size retailers was made. Thus the sum of an alternative having least score considered to be most favorable. In this manner, result is prepared for various important parameters of the survey. With the help of results so obtained, the findings are recorded in the form of graphs. The market of cement Changes as the area changes. The demand for particular cement for particular cement is much less. This is because of the crazier Trend of particular market. Thus the demand for the cement is not that price sensitive. Price is not the criterion for selection of rejection of particular brand is adapted on the type of application of cement and the brand name in market. Thus the awareness among the customers about the particular cement plays a vital role. The major types of customers are the builders and masons. The individual customers are there, but their demand is not more. The customers are ready to give slightly high price, but he wants quality cement, thus he is quality conscious. The customer perceives quality of cement as good quality because of effective marketing. So effective marketing is necessary. The retailer in the marker plays an important role in the sale of the cement. They have some expectation from the cement companies; they expected credit facility, good sales promotion schemes, and timely delivery of cement, etc Among the plastic bag and paper bag of cement, Customer prefer bag. This is because the paper bag prevents it from moisture and quantity remains intact.

27

In brief cement market is sensitive to marketing. The better & more the marketing the more is possibility of sales. The observations and findings of the market survey about market share and sales promotion activities are given at the next stage, in the report.

28

DATA ANALYSIS
PRESENTATION INTERPRETATION

Q. Which brand do you prefer most? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 1:-

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Dealers brand preference:Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total No of Dealers 24 60 36 36 14 12 8 10 200 percentage 12% 30% 18% 18% 7% 6% 4% 5% 100%

Da r peee c t wr st e e l s r f r n e o ad h e c mns r n e e t ba d
5 % 4 % 6 % 7 % 3% 0 1% 8 1% 8 1% 2 Lf r e a g a Kn r o ak U r te h ltea c Ac c A b ja mu Cn r e tuy Gs r im a Dn a uc n

Analysis and Interpretation:Obviously, maximum dealer, which are about 78 percent, come with Konark, Acc, Ultratech or Lafarge, And 22 percent either confused or dependent on seasonally available brand for the Cement.

Q. Which brand do you store? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

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ANALYSIS, PRESENTSTION AND INTERPRETATION 2:Dealers preference for the storage of cements brand:Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total No ofDealers 40 50 22 24 18 24 12 10 200 percentage 20% 25% 11% 12% 9% 12% 6% 5% 100%

D l r r f r neo a sh s r g o e ep e c t w d t e t ae f a e e r o bn r d a

6 % 1% 2

5 %

2% 0

Lf r e a g a Ka or nk U rt c l e eh t a A c c A bj ma u 2% 5 Ct r eu n y Gs r i am D cn ua n

9 %

1% 2 1% 1

Analysis and Interpretation:Most of the dealers prefer to store either Lafarge or Konark. 20% of the dealer choice is Lafarge where as 25% of the dealers choice is Konark. Remaining 35% of the dealers inclined towards the Acc, Ultratech and Century. Remaining 20% of the dealer gives equally importance to the Ambuja, Duncan and Grasim.

Q. Which brand does your customer prefer?

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Lafarge Konark Ambuja

Century

Ramco Acc Ultratech

Duncan Grasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 3:Customer inclination towards the cement brand:Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total No of Dealers 24 60 36 36 14 12 8 10 200 percentage 12% 30% 18% 18% 7% 6% 4% 5% 100%

C s t mrp ee e c t w r sc mn Ba d u r o e r f r n e o ad e e t r n

6 % 7 %

4 %

5 %

1% 2

Lf r e aag Knr o ak U r te h ltea c Ac c A b ja mu Cn r e tuy Ga im rs Dn a uc n

1% 8 1% 8

3% 0

Analysis and Interpretation:78% of the customers are brand loyal. And 22% of the customers are price sensitive they go with that brand which has fewer prices. In case of brand equity Lafarge lies in No. four.

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Q . What is the Avg. monthly sale of different brands of cement? Co. Lafarge Konark Ambuja Tones/bags Century Ramco Acc Ultratech Duncan Rasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 4:Average Monthly sale of cement:Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total Consumption 1365 2651 1548 1890 640 750 625 685 10154 percentage 13% 26% 15% 19% 6% 7% 6% 7% 100%
A e a em nh C n u pio v r g o t ly o s m t n

6 % 7 % 6 %

7 %

1% 3 Lf r e aag Knr o ak U r te h ltea c Ac c 2% 7 A b ja mu Cn r e tuy Ga im rs Dn a uc n 1% 5

1% 9

Analysis and Interpretation:This data show that the maximum consumption of cement brand in the region of Bhubaneshwar is Konark cement which is about 26% of the total sales of the cement. Lafarge is on the no. fourth position which is about 13% of the total sale of cement.

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Q. Rank the companies stockiest on the basis frequency of making personal visits & ph calls. Co. Ranks Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 5:Dealers rank the companies stockiest on the basis of frequency of making personal visits & ph calls
Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total Total of Rank 562 656 430 450 515 380 420 470 3883
Rn o t eC ma y t k t a k f h o p n so i s

Lf r e a g a 1% 2 1% 1 1% 4 1% 7 Kn r o ak U rt c lteae h Ac c A b ja mu 1% 3 1% 2 1% 1 Cn r e tuy Gs r im a Dn a uc n

1% 0

Analysis and Interpretation:From this data we can conclude that only the weak brands stockiest are preferred by the retailers. Strong brands stockiest are not given the proper consideration towards the retailers. All the giant brands are ranked as 3 or 4 where as all the loose brands retailers are ranked as1or2.

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Q. Which Companies stockiest inform you about the change in the market price faster? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 6:Company that provides information to the retailer about the price change in the near future:Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total No of Dealer 15 10 21 22 26 38 36 32 200

I f r ai n r v e t t e nom o po i d o h t d r t ie a o tf t r c a g i eal r b u uue h n e n pi e rc

8 % 1% 6 1% 8 1% 8 5 % 1% 1 1% 1 1% 3 Lf r e a g a Kn r o ak Ueae h lt r t c Ac c A b ja mu Cnuy et r Gs r im a Dn a uc n

Analysis and Interpretation:More than 100 of retailers said that Century or Grasim or Duncan provide the preinformation about the future price change. This helps them to take precautionary action against the future happenings.

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Q How much credit in days do you enjoy from the stockiest of following companies? Company Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim No. of bags/days ANALYSIS, PRESENTSTION AND INTERPRETATION 7. :Credit period facilitate by the companies stockiest to the retailer

Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total

No of days 15 10 21 22 26 38 36 32 200
C d pro f ciae y h Cm n s r i ei da i t t b t e o p i et l ae sok s t t e eaes t c i t oh r t i r e l
Lf r e a g a Cn r et y u Knr oa k Ue t c lt r eh a Gs r im a Ac c A bja mu Cn r et y u Knr oa k Lf r e a g a Dna uc n Gs r im a Dna uc n

A bja mu Ac c

Ue t c lt r eh a

Analysis and Interpretation:The entire market leaders (Lafarge, Konark, ACC, Ultratech) of cement industries provides relatively less credit period (i.e. less than 50 days) to their stockiest due to which the stockiest are not able to provide the sufficient credit in days to their retailers. Where as the newly entered cement brand provides sufficient credit in terms of quantity as well as in days to their retailers. Thats why their growth rate is relatively high.

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Q Maximum profit you get out of selling various brands rank them? Co. Ranks Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 8:Maximum share of profit of retailers comes through the selling of the cement:Company Lafarge Konark Ulteratech Acc Ambuja Century Grasim Duncan Total Profit 35 45 38 37 14 17 8 6 200

M i u p fter e b sli gh b ns a m r i a d y en t e r d x mo n l a

1 7 1 4

3 5

3 7 3 8

4 5

Analysis and Interpretation:Only 35 retailers said that their maximum profit comes through Lafarge. Similarly 45, 38, and 37 retailers said that their maximum profit comes through Konark, ACC, and Ultratech respectively.

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Q. Rank sales promotion activities according to their effectiveness? Activities Shop Naka & Manson Meet Gifts Incentives Hoardings Others Rank

ANALYSIS, PRESENTSTION AND INTERPRETATION 9:Retailers belief towards the activity that influences sales of the cement:Activities Shops naka and mason Gift Incentive Hoardings Others Total Ranks 14 37 49 66 34 200

R t ile sb lie eo t ea t it st a inlu n e ea r e v n h civ ie h t f e c s le o t ec m n a s fh e et

7 % 1% 9 S o s n k a dm s n hp aa n ao G ift Icn e n e tiv H a in s o rd g 3% 2 2% 5 O es th r

1% 7

Analysis and Interpretation:Sixty six retailers out of two hundred which is 33%, beliefs that Hoardings influence the sales of the cement. Incentives also play vital role in the promotion of the goods.

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Q Rank sales promotion activities according to their effectiveness? Activities Shop Naka & Manson Meet Gifts Incentives Hoardings Others Rank

ANALYSIS, PRESENTSTION AND INTERPRETATION 10:Retailers preference towards the gift:Gifts Share Tour Gold White Gold Cheque others Totals No of dealers 14 40 39 12 29 66 200
Rae p f r neo a sh gt e i r r e c t wd t e i tl s e e r f

1 4 6 6 4 0

Sr he a Tr o u Gd o l We o h Gd i t l C qe hu e

2 9

1 2

3 9

oe t r hs

Analysis and Interpretation:Most of the retailers do not want to say about the gift. But after asking again and again their preference are out of the available optioned e.g.:-TV, Camera, cycle, trophy, etc. Out of two hundred 40 preferred tour, 39 preferred gold, 29 preferred cheque, 14 preferred share and 12 preferred white gold.

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Q Give your raking to the cement companies in their sales promotion activities Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank

ANALYSIS, PRESENTSTION AND INTERPRETATION 11:Retailers rank the cement company on the basis of the sales promotional activities:Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank 1 20 60 20 20 12 13 50 30 Rank 2 40 55 25 71 14 45 68 62 Rank 3 80 47 32 57 45 68 58 82 Rank 4 25 38 78 27 68 52 24 26 Rank 5 35 0 45 25 61 22 Total (Retailers) 200 200 200 200 200 200 200 200

Rt iesr n t ec mn c o t eb sso t e eal r a k h e e t o n h a i f h t ers l spo oi n la tvt h i ae r mto a ci i y

9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0

Rn 1 ak Rn 2 ak Rn 3 ak Rn 4 ak Rn 5 ak
h fa rg e o n a rk n tu ry b u ja ra te c s im n c a D u c c n

U lt

Analysis and Interpretation:From the interpretation of the data, we come to know that Konark and ACC are on no.1 and no.2 respectively. Lafarge cement is on no.3. Because 30% of the retailers believe that Lafarge is on no

40

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G ra

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three. Century, Grasim, and Duncan are making extra effort to penetrate the market. Every retailer mentioned their name and mentioned their considerable effort. Q What is the general price gap (BP-RP) between the following companies? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

ANALYSIS, PRESENTSTION AND INTERPRETATION 12:The profit on per bag of cement:Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan price gap on per bag 6 5 6 6 7.5 8 10 10 T ed re c b tw e th b gp ea d h iffe n e e e n e illin ric n re ilin p eo o eb go c m n ta g ric n n a f e e t
1 2 1 0 8 6 4 2
h fa rg e o n a rk n tu ry b u ja ra te c si m n ca D u cc n

U lt

Analysis and Interpretation:-

41

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G ra

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Lafarge charges competitive price to the customer. Some of the company charges premium price like OCL where as some of the brand has very less price like Grasim, Cemtury and Duncan. Price of Lafarge is always equal to the price of Ultratech, ACC.

. Q Rank the companies on the basis of their transportation facilities? Company Rank Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan ANALYSIS, PRESENTSTION AND INTERPRETATION 13:Companies are ranked on the basis of the transportation facility provided by them:Total (Retailers) 200 200 200 200 200 200 200 200

Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan

Rank 1 70 23 40 20 15 85 80 95

Rank 2 65 25 70 67 14 78 75 62

Rank 3 28 15 65 90 45 37 38 43

Rank 4 25 72 25 20 90 0 7 0

Rank 5 12 65 0 3 36 0 0 0

C m a ie r n so t eb sso t e o pn s a k nh ai f h t a s ot to f c it s r n p r ai n a il ie
10 0 8 0 6 0 4 0 2 0
fa rg e o n a rk n tu ry b u ja ra te c s im n c a c c n

Rn 1 ak Rn 2 ak Rn 3 ak Rn 4 ak Rn 5 ak
h

G ra

U lt

C e

42

D u

L a

Analysis and Interpretation: - Transportation facility is a very vital factor for a brand to be
successful in the market; Lafarge cement has proved itself in this area as they are having the best reach in the urban area not in the rural area. Q Rank the companies on the basis of their cement delivery time? Company Rank Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan ANALYSIS, PRESENTSTION AND INTERPRETATION 14:Companies are ranked on the basis of the cement delivery time:Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank 1 114 91 0 82 14 42 11 21 Rank 2 53 82 82 78 25 12 24 37 Rank 3 33 27 91 39 97 83 45 49 Rank 4 0 0 12 1 61 42 21 68 Rank 5 0 0 15 0 3 21 99 25 Total 200 200 200 200 200 200 200 200

C ma i sr n o t eb sso t ec mn o p ne a k n h a i f h e e t d l v r tm ei ey i e
10 2 10 0 8 0 6 0 4 0 2 0 0

Rn 1 ak Rn 2 ak Rn 3 ak
fa rg e o n a rk n tu ry b u ja ra te c s im n c a c c n

Rn 4 ak Rn 5 ak

G ra

U lt

Analysis and Interpretation:43

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Lafarge is quite ahead in the race in regards to the delivery option, as many retailers says that a small quantity of cement bags are not delivered by most of the company on time, they say that ar least you need carry 200 bags and so on, but Lafarge are willing to accept and delivery any amount of bag at any time. .Q Rank the companies on the basis of the response to customer complaints. Company Rank Lafarge Konark Ultratech Acc Ambuja ANALYSIS, PRESENTSTION AND INTERPRETATION 15:Companies responses towards the customer complain:Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank 1 102 78 41 82 41 42 31 26 Rank 2 71 45 65 78 78 52 51 56 Rank 3 27 36 52 35 44 41 47 45 41 41 5 35 37 37 68 0 1 0 2 28 34 5 Rank 4 Rank 5 Total no of the retailers 200 200 200 200 200 200 200 200

C p ies rank o the basis of the response to om an n the custom com er plail
10 2 10 0 8 0 6 0 4 0 2 0 0
fa rg e h o n a rk n tu ry b u ja si m n ra te c cc A G ra m C e D u L a n ca

Rn 1 ak Rn 2 ak Rn 3 ak Rn 4 ak Rn 5 ak

U lt

Analysis and Interpretation:-

44

Almost most all the companies stockiest response towards the customers complained but Lafarge is far ahead to the other companies. Most of the retailers said that Lafarge Marketing representative are so much attentive towards the customers responses. Q Rank the company on the basis of their Marketing Representatives frequency of visit. Company Rank Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan ANALYSIS, PRESENTSTION AND INTERPRETATION 16:Companies are ranked on the basis of the visit of the marketing representative:Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank 1 85 78 45 47 23 62 23 65 Rank 2 75 65 66 52 45 68 42 74 Rank 3 40 42 74 41 65 47 37 54 Rank 4 0 15 15 51 25 23 47 0 Rank 5 0 0 0 9 42 0 51 7 Total no of the retailers 200 200 200 200 200 200 200 200

C ma i saer n e o t eb sso t evsto o p ne r a k d n h a i f h i i f mr ei gr pe e t tv ak tn e r s nai e

9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0

Rn 1 ak Rn 2 ak Rn 3 ak Rn 4 ak Rn 5 ak
h fa rg e o n a rk n tu ry b u ja s im n D u n c a

ra te c

c c

U lt

Analysis and Interpretation:-

45

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Lafarges marketing representatives are too much concern towards the customers welfare. So they visit almost retailers ones in a week. Where as other companies marketing representative visit the counter only twice in a month. WHOLESALE PRICE / RETAIL PRICE ANALYSIS

BRANDS Lafarge Konark Ultratech ACC Ambuja Century Grasim Duncan

WHOLESALE PRICE (Billing price) 112-114 114-116 112-114 112-114 110-112 106-108 102-104 100-102

RETAIL PRICE 118-120 119-120 118-120 118-120 117-119 114-116 112-114 112-114

PRICE GAP 6 5 6 6 7.5 8 10 10

By comparing the wholesale price and retailing price of the various Brands in the market, we can infer that the retailers get a good margin in case of GRASIM & DUNCAN. Above that it is the cheapest brand among the major brands in the market. Hence the analysis carried earlier part of the project i.e. profit selling brand is justified at both the levels.

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SWOT Analysis
SWOT-analysis is done to understand the external and internal environment of the organization. SWOT, which is acronym for strength, weakness, opportunity and threats is also known by TOWS-analysis. Though such an analysis, is strength and weakness exist within an organization can be matched with the opportunity and threats operating in environment , so that an effective strategy can be formulated. An effective organizational strategy, therefore, is one that capitalizes on the opportunity through the use of strength and neutralizes the threats by minimizing the impact of weakness. Below is the SWOT- analysis of Lafarge India Pvt. Ltd. in cement market. Strength People ask for bleakness in cement and Lafarge has this. Cement grade is good and people are satisfied.

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 Customer choice. Lafarge being an MNC has a global leverage. It has a good brand image in Cement. Weakness Great need of strategic way for promotion and advertisement for both dealers and customers. Not an easy task to overtake Konark, Ultratech and ACC. Price and margins is not match with dealers and retailers expectation respectively. Guaranty given by company is from the date of manufacturing which is not acceptable for the dealers and retailers. Take large time in the replacement of Cement. Opportunity Strong infrastructure requirement for the development of the country and the country is developing in the utter pace. No of the medium class people is growing. Institutional market like corporate and government offices, school society complexes are growing in large scale, which will increase the requirement.

Threats
Cheep priced brand are grabbing rapidly a large chunk of lower income customer base. Other brands like Duncan and Grasim provide maximum profit to the both customer as well as to the retailers. It was found from my survey that Konark maximum market share is due to brand loyalty. Dealers expect more margin and gift to sell of the Lafarge cement.

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FINDING
OTHER REASONS STATED BY RETAILER FOR BRAND PREFERENCE:LAFARGE Better quality Good name in the market Timely available Immediately respond on the competitors strategy. Relatively less price. Better packaging ULTRATECH Sells easily in the market the customer demand for them. Customer choice.

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 Good name in the market as it carries the goodwill of L&T. High market awareness. Sells more CENTURY Good relationship with the company people. Price is low and affordable for people Low price helps to sell easily. Quality is good. More profit selling the brand. Good service and relationship ACC People ask for ACC. Service is good. Dhalai karne ke liye people ask for ACC. Very superior quality cement as compared to others Selling form the very first day the shop came in to being & sells easily (shree ganesh traders, bhatagaon) They have same price prevailing for wholesale at dealers/stockiest retailers end. AMBUJA Customers preference Good cement, plastering work is good GRASIM (Birla plus) Customers choice. Price is suitable as per customers pocket Rate & profit Good relationship with the people at Grasim. Birla is a very renowned name so people trust it.

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DUNCAN Rate & profit Price is suitable as per customers pocket Service is good. PROBLEM FACED BY STOCKIEST None of the stockiest had any complains about any brands, in regards to the price, transport, service etc Dispatch being closed at the start of the month is a trump card for them to play in the market to push the sale. Stockiest are satisfied with the companies service. RETAILERS REGRETS (Lafarge) The stockiest occasionally inform about the price change in the market. They do not make personal visits to the counters frequently. Price should be stabilized in the market. Price stability in regard to the price set by the company as well as wholesalers (i.e. all the wholesalers should have the same price offered in the market). The management should not interfere in the price offered by the counterperson to the customers. They need price flexibility to shoot up the sale. Dispatch being closed every start of the month is a problem is a problem for them to stick to the commitments made by them to the customers. Small quantity ordered is not furnished on time. Pressurize them for taking more quantity for more quantity for transportation facility. Lafarge now does not give any gifts at the counters.

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LIMITATION OF THE STUDY

1. Lack of cooperation from the retailers in regard to giving interview 2. It was found in some cases dealers showed inclination towards certain brands which gave them more margins when compared to others. 3. It was experienced during the survey that it was difficult to convince or make the retailers and dealers understand the important of the project 4. As the retailers and dealers thought that it was unwise for the to give their details of business as they feared competitors would take advantage.

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SUGGESTIONS A very exhaustive study has been made, keeping in the essence of the objective of the project. With the efforts put on the project a detailed analysis was conducted and result were derived, based on the results and market response few suggestions are discussed below A Price fluctuation creates problems for retailers as the cannot keep the commitments of price to customers The reach to the rural market need to be strengthened Transportation to rural areas need to be strengthened, a significant amount of business is lost because of this. At time it has been seen that the delivery commitments an the side of the company is not prompt, this creates a bad name and again business is lost 53

On interviewing Dealers/Retailers the most important thing they said was about the price flexibility, they want that the company should give them the price flexibility to play in the market. (As the company has outlined that the price offered by the company should only be offered to the customer, it should not increased to the customer, it should not be increased or decreased). The Brand Name Lafarge is quite difficult to be pronounced and remember, so it should be made short and easy for the rural masses to remember like (L&T).

CONCLUSION To attain the objective of the project detailed information was collected from the market of Bhubaneshwar. The market research has revealed many facts and figures about the cement scenario in the market prevailing. In the market, Lafarge cement is well known brand of cement. This is the result of the good quality of the Lafarge cement along with their effective marketing efforts, which covers the whole market customers of Lafarge cement are highly satisfied with the use of it, as they do not face any problem after using it.

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There are seven major players in the market but the major completion is between the two brands of cement. But because of good marketing efforts, Lafarge cement is able to grasp some share of various other brands The market survey undertaken shows that effective marketing efforts play a vital role in creating the goodwill for the brand. The distribution channel of cement industry must be well designed and made effective this ensures timely availability of cement to customers. Good marketing creates good image i.e. brand building. Even through often Lafarge take over the Tata cement and place its brand as Lafarge cement in the market , but still it has not shown any decline in its status. Lafarge still cherishes the good will created by Tata cement in the market.

BIBLIOGRAPHY
BOOKS

1. Research Methodology: C.K. Kothari Wishwa Prakashan Darayaganj New Delhi

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2nd Edition-1995 2. Marketing Management: Philip Kotler Prentice- hall of India Pvt. Ltd. New Delhi-110001 8th Edition -1995

WEBSITE 1. 2. 3. 4. 5.
www.lafarge-cement.co.in www.google.com www.ibef.org www.msn.com www.indianexpress.com

ANNEXTURE

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QUESTIONNAIRE
1. Which brand do you prefer most? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

2. Which brand do you store?

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Lafarge Konark Ambuja

Century

Ramco Acc Ultratech

Duncan Grasim

3.

Give reasons for your preference? _______________________________________________________________________________

4. Which brand does your customer prefer? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

5. What is the Avg. monthly sale of different brands of cement? Co. Lafarge Konark Ambuja Tones/bags Century Ramco Acc Ultratech Duncan Rasim

6. Give names of the stockiest for your preference?

7. Rank the companies stockiest on the basis frequency of making personal visits & ph calls. Co. Ranks Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim

8. Which Companies stockiest inform you about the change in the market price faster? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

9. How much credit in days do you enjoy from the stockiest of following companies?

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Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim No. of bags/days 10. Maximum profit you get out of selling various brands rank them? Co. Ranks Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim

11. Rank sales promotion activities according to their effectiveness? Activities Shop Naka & Manson Meet Gifts Incentives Hoardings Others Rank

12. Give your preference for the following type of Gifts/incentives. Share Tour Gold White gold Cheque Others

13. Give your raking to the cement companies in their Sales promotion activities Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank

14. What is the general price gap (BP-RP) between the following companies? Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

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15. Rank the companies on the basis of their transportation facilities? Company Rank Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan 16. Rank the companies on the basis of their cement delivery time? Company Rank Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan 17. Rank the companies which are the best delivery time? Company Rank Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan 18. What kind of problem you generally face with the transport?

19. Rank the companies on the basis of the response to customer complaints. Company Rank Lafarge Konark Ultratech Acc Ambuja

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Century Grasim Duncan 20. Rank the company on the basis of their Marketing Representatives frequency of visit. Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank

21. Rank the company on the basis of their Marketing Representatives accessibility. Company Lafarge Konark Ultratech Acc Ambuja Century Grasim Duncan Rank

22. Rank the company on the basis of their Marketing Representatives art of making and maintaining the relationship. Co. Ranks Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim

23. Any suggestion you would like to make for the company?

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