Project Final - India Cements
Project Final - India Cements
Project Final - India Cements
“We should be one of the largest Cement Companies in the Country. Our growth in size will
be through continuous review of potentials of the existing manufacturing resources, strategic
acquisitions and expansions”.
The company is the largest producer of cement in South India. It‟s plants are well spread with
3 in Tamil Nadu and 4 in Andhra Pradesh which cater to all major markets in South India
(Andhra Pradesh, Tamil Nadu Karnataka, Kerala) & Maharashtra. India Cements is the
market leader with a market share of 28% (approximately) in Southern India. It aims to
achieve 35% market share in the near future. The Company has access to huge limestone
resources and plans to expand capacity by de-bottlenecking and optimization of existing
plants as well as by acquisitions. It has a strong distribution network with 10000 stockists of
whom 25% are dedicated stockists. India Cements has well established brands like
Coromandel King, Coromandel Super Power & Rassi Gold.
And ICL is currently headed by Mr.N.Srinivasan , Vice Chairman and Managing Director.
The day-to-day affairs of the company are managed by Executive President Mr.
T.S.Raghupathy and other key personnel in each functional area.
The company has achieved its best ever performance both in terms of operational and
financial parameters in the 62 years history of the company. The clinker production for the
year 2007-08 of the company was at 72.13 lakhs tonnes while cement production was at
92.34 lakhs tonnes representing a capacity utilisation of 105% as compared to 84.24 lakh
tonnes in the previous year. Cement sales was also brisk at 92.15 lakh tonnes as against 84.14
lakh tonnes in the previous financial year.
The company‟s plants surpassed their best achievements in many fronts during 2007-08 :
Sankarnagar Plant achieved its highest clinker, cement and despatch during the year
of 11.80 lakh tonnes (11.72 lakh tonnes), 18.02 lakh tonnes (15.70 lakh tonnes) and
18.02 lakh tonnes (15.79 lakh tonnes) respectively.
Chilamakur Plant achieved its record clinker production of 11.19 lakh tonnes (11.17
lakh tonnes).
Dalavoi Plant achieved its best ever clinker, cement and despatches of 11.49 lakh
tonnes (10.90 lakh tonnes),12.72 lakh tonnes (11.45 lakh tonnes) and 12.67 lakh
tonnes (11.47 lakh tonnes) respectively.
Yerraguntla Plant again surpassed its record by clocking a clinker production of 5.39
lakh tonnes (5.01 lakh tonnes), cement grinding of 5.80 lakh tonnes (5.73 lakh
tonnes) and cement despatches of 5.80 lakh tonnes (5.73 lakh tonnes) respectively.
Vishnupuram Plant recorded its highest cement grinding of 25.11 lakh tonnes (24.02
lakh tonnes) and the despatches of 25.04 lakh tonnes (24.03 lakh tonnes).
India Cements Ltd. also owns Indian Premier League's Chennai franchise, Chennai Super
Kings. During the year, the company has successfully bid for the Chennai Franchise of the
DLF-IPL 20/20 Cricket Tournament. “Chennai Super Kings”, as our Franchise is known, was
taken primarily with a view to promote the brand and to promote the Corporate Image.
Considering the plans to become a Pan India cement player, IPL would be an ideal platform
for India Cements Ltd. to launch their brands on an all India basis. The revenue stream for
this Franchise will consist of a share of central revenue and 100% of the local franchise
earnings. The company has also tied up with leading brands for team sponsorship and apparel
sponsorship and judging by the current trend, it will achieve huge brand promotion at
minimal cost.
Overview :
The cement industry in India has been enjoying its best period with a healthy growth in
demand in the past two years. The industry has been operating at its near full capacity during
this period. The cement prices have been steady throughout the year with this firm demand
position.
The cement industry is one of the main beneficiaries of the infrastructure boom. With robust
demand and adequate supply, the industry has bright future. The Indian Cement Industry with
total capacity of 168 million tones is the second largest after China. Cement industry is
dominated by 20 companies who account for over 70% of the market. Individually no
company accounts for over 12% of the market. The major players like L&T and ACC have
been quiet successful in narrowing the gap between demand and supply. Private housing
sector is the major consumer of cement (53%) followed by the government infrastructure
sector. Similarly northern and southern region consume around 20%-30% cement while the
central and western region are consuming only 18%-16%.
The all India clinker production picked up further by 6.5% to 129.70 million tonnes as
compared to 121.75 million tonnes during the previous year. The overall production of
cement in the country for the year ended March 2008 was up at 168.31 million tonnes as
against 155.66 million tonnes in the previous year registering a growth of 8.1%. The
domestic consumption of cement grew further by 9.8% over and above the double digit
growth recorded in the previous two financial years and was at 164.02 million tonnes as
compared to 149.40 million tonnes in the previous financial year. The cement export was,
however, lower at 3.65 million tonnes as against 5.89 million tonnes in the previous year due
to a buoyant domestic market. The clinker exports were also lower at 2.37 million tonnes as
compared to 3.10 million tonnes in the previous year.
India is the second largest cement producer in world after china. Right from laying concrete
bricks of economy to waving fly over‟s cement industry has shown and shows a great future.
The industry looks healthy and promising & shows significant growth on the back of robust
demand from housing construction, Phase-II of NHDP (National Highway Development
Project) and other infrastructure development projects by both private, public & also by a
consortia of both. Domestic demand for cement has been increasing at a fast pace in India.
Cement industry in India has also made tremendous strides in technological up gradation and
assimilation of latest technology. Presently, 93 per cent of the total capacity in the industry is
based on modern and environment-friendly dry process technology. The induction of
advanced technology has helped the industry immensely to conserve energy and fuel and to
save materials substantially. Indian cement industry has also acquired technical capability to
produce different types of cement like Ordinary Portland Cement (OPC), Portland Pozzolana
Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid
Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc. Some
of the major clusters of cement industry in India are: Satna (Madhya Pradesh), Chandrapur
(Maharashtra), Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda (Andhra
Pradesh), Bilaspur (Chattisgarh), and Chandoria (Rajasthan).
Current Scenario :
India is the second largest producer of cement, which meets global standards. The cement
industry comprises 130 large cement plants and more than 300 mini cement plants. The
industry's capacity at the end of the year 2008 reached 188.97 million tons(approximately)
which was 166.73 million tons(approximately) at the end of the year 2006-07.It is estimated
that cement production would cross the 200 million tons mark by the year end of 2009.
a. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in
Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of a
major group in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja
Cements group.
b. Lafarge, the French cement major has acquired the cement plants of Raymond and
Tisco.
c. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari
Industries' cement plant in Andhra Pradesh, and
d. German cement company Heidelberg Cement has entered into an equal joint-venture
agreement with S P Lohia Group controlled Indo-Rama Cement.
It can be observed that south in which the company‟s main markets are situated has registered
a growth of 9.71% over and above 12.9% growth achieved in the previous year. This has
clearly paved way for more remunerative prices in the market.
On the fiscal side, the Government has taken a lot of measures in the previous year including
removal of import duty and CVD on cement and has also introduced slab rates of excise duty
of cement linked to Maximum Retail Price which has been further modified during the year
with increase in tariff rate from Rs.600 to Rs.900 per MT. However, given the buoyant
demand, the industry was able to pass on this impact to the consumer. During the year there
was a steep hike in the delivered prices of imported coal caused by the increase in freight and
increased demand for coal from developed countries. The CIF prices of imported coal which
was around 55 – 60 US dollars in March 2007 rose to a level of 110 – 120 US dollars towards
the end of March 2008 causing a huge adverse impact on the cost of production of cement for
many of the units relying on imported coal.
Ordinary Portland cement (OPC): OPC, popularly known as grey cement, has 95 per cent
clinker and 5 per cent gypsum and other materials. 3 grades of OPC are produced by ICL :
53 Grade OPC : 53 Grade OPC is a higher strength cement to meet the needs of the
consumer for higher strength concrete. As per BIS requirements the minimum 28 days
compressive strength of 53 Grade OPC should not be less than 53 MPa. For certain
specialised works, such as prestressed concrete and certain items of precast concrete
requiring consistently high strength concrete, the use of 53 grade OPC is found very
useful. 53 grade OPC produces higher-grade concrete at very economical cement
content. In concrete mix design, for concrete M-20 and above grades a saving of 8 to
10 % of cement may be achieved with the use of 53 grade OPC. It is mostly used in
paving blocks, tiles , building blocks , runways, concrete roads, bridges and similar
heavy constructions.
43 Grade OPC : 43 Grade OPC is the most popular general purpose cement in the
country today. The production of grade 43 OPC is nearly 50% of the total production
in the country. 43 Grade OPC‟s are generally used in general civil engineering works,
precast items such as blocks,tiles,asbestos sheets etc.
33 Grade OPC : This cement is used for general civil construction work under normal
environmental conditions. Due to low compressive strength, this cement is normally
not used where high grade of concrete is required. The availability of higher grades of
Portland Pozzolana Cement (PPC): PPC has 80 per cent clinker, 15 per cent pozzolana and
5 per cent gypsum and accounts for 18 per cent of the total cement consumption. It is
manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient.
The Portland Pozzolana Cement is a kind of Blended Cement which is produced by either
inter grinding of OPC clinker along with gypsum and pozzolanic materials in certain
proportions or grinding the OPC clinker, gypsum and pozzolanic materials separately and
thoroughly blending them in certain proportions.
Volcanic ash
Calcined clay
Fly ash
Silica fumes
In view of the availability of good quality fly ash in abundant quantity, the use of calcined
clay based pozzolana cement is progressively decreasing. The flyash is a waste product of
Thermal power Plant which create disposal problems at Thermal power plant site. The yearly
production of flyash in India is about 70 million tonnes per annum. This would increase in
future depending upon the new coal based thermal power plants to be installed in the country.
The Portland Pozzolana Cement makes concrete more impermeable and denser as compared
to Ordinary Portland Cement. The long-term strength (90 days and above) of Pozzolana
cement is better compared to OPC.
The Portland Pozzolana Cement is ideally suited for the following construction.
a. Hydraulic structures
b. Mass concreting works
c. Marine structures
d. Masonry mortars and plastering
The compressive strength of PPC as is equivalent to that of 33 grade OPC. The major
quantity of flyash based PPC in India Cements Limited is presently being produced at
Sankarnagar and Sankari Works of India Cements Limited at Tamilnadu. However depending
of the requirement of flyash based PPC could be produced at all the Plants of India Cements
Limited in Tamilnadu and Andhra Pradesh. The PPC being manufactured by „India Cements
Ltd‟ meets the strength requirements of 53 grade.
Lime stone is the basic raw material used in cement production. Good quality
limestone‟s are abundantly available in the mines owned by India Cements Ltd.
Limestone is obtained from the mines through the process of heavy blasting
conducted under strict supervision and safety precautions. The limestone herewith
obtained at India Cements Ltd. Mines are of very superior quality.
The limestone in the form on huge stones is loaded in the dumpers and are transported
to the crusher.
Using accurate weighing machines the material is fed into a vertical roller mill. It is a
vertical steel mill with huge rollers used for grinding the material.
Calcination is the most crucial stage in cement manufacturing process. The raw
materials is fed into a kiln, which is a huge rotating furnace. Using coal as the fuel the
Kiln heats the raw material to a staggering temperature of 1400 degrees Celsius.
Subsequent to the intense heating, the raw material is sent to a cooler that brings the
temperature of the material down to 200 degrees Celsius. The sudden cooling of the
material results in the formation of grey colored nodules known as clinker.
Clinker and gypsum are fed to a cement mill in definite proportions with the help of
weigh feeders. This procedure is popularly known as “Cement Mill”.
Then cement is packed in the packing plant into cement wags which weigh 50
kilograms each, with the help of automatic electronic packers and then are loaded into
trucks .
During this whole manufacturing process, hourly samples are taken from manufactured
cement and is stringently tested at the shift labs in the plant. These check are to determine the
setting time and strength of the cement manufactured to keep the quality of the cement being
manufactured under constant observation.
As there are a large number of dealers dealing with India Cements Ltd. Products, the study
was conducted to know the dealers satisfaction towards India Cements Ltd. This in turn
enables the company to enhance its stringent competitiveness in the OPC & PPC Cement
market.
1. To find the overall Dealer Satisfaction Level with India Cements Limited [ICL].
2. To find the logo awareness of Coromandel & Raasi Cement among customers.
3. To find awareness among customers that Coromandel & Raasi are brands of ICL.
1. The project is focused on randomly selected dealers in the twin cities of Hyderabad &
Secunderabad & as well as Mahbubnagar District.
2. The data collection is carried out in Hyderabad & Secunderabad for a period of 35
days in the twin citites & for a period of 1 day at Mahbubnagar District.
3. The project also focuses on the quality of India Cements Limited products as per
dealers view
4. The study helps to know the expectation of the distributors.
1. Since the survey was done only in 2 places i.e Hyderabad & Mahbubnagar , the result
obtained may not be taken as universal suggestion.
2. Quality of the information is highly dependent on the knowledge of the respondents.
3. Concerned person of shop keeping in charge will always change, so their assessment
of the product & the relationship with the company officials could not be adequate.
Marketing is “The management process which identifies anticipates and supplies customer
requirements efficiently and profitably”.
“Marketing is a total system of interesting business activities defined to Plan, piece, promote
and distribution want satisfying products & services to present and potential consumers”
- William. J. Stantion
“Marketing is the performance of business activities that direct the follow of goods and
services from the producer to the consumer or user”
- American Marketing Association
A social and managerial process, by which individuals and groups obtain what they need and
want, through creating and exchanging product and value with others. Customer satisfaction
begins with a difficult faith; it starts with a commitment to deliver the result for each
customer which is also a concern of the dealers. Hence for a manufacturing company, in
order to satisfy its customers, it is highly important to satisfy its dealers, as they are the direct
customers to them. Establishing satisfaction as the ultimate goal is like the other ultimate
goals of business pursuit of higher profits or shareholders wealth. Perfect dealer service or
satisfaction is one that meets the combined need satisfaction is a systemized service that
involves the entire organization. But many organizations have yet to develop this kind of
awareness of dealer satisfaction strategy.
Understanding the dealer is critical to the success of any customer focus initiative, the first
step in understanding the dealers is to listen to them. A company needs to hear what its
dealers are saying about its people, product service and vision. Their information helps to
develop meaningful product and service.
Organizations need to listen to their dealer satisfied, dissatisfied neutral and prospective. As
one company executive said, “talking to a satisfied customer is talking to myself”. In the past,
dealer satisfaction and service was the responsibility of a separate organization that supported
the dealer primarily after the sale. Today, service is also likely to be interested with the every
product accompany offers. High dealer satisfaction comes from providing effective services.
But giving that service is a continuous activity. It means being efficient, reliable, courteous,
curing and professional every time.
Considering the fact that the way in which a dealer is treated by its manufacturer has decisive
influence on the dealer‟s commitment to the brand as well as on the dealer‟s business success,
an examination of dealer satisfaction or dissatisfaction has become strikingly important
during the last few years.
“If image is everything then your company’s logo is its first impression.”
Before any knowledge of the company has been acquired, perceptions have already
been formulated based off of the logo.
While it may be difficult to pin down what it is that makes a great logo there certainly are
some common characteristics that all great logos share. The majority of logos consist of but a
One thing remains constant - change. The constant evolution of media and information
delivery systems of today‟s times means that a logo will likely take on more than one form of
medium in its lifespan. Because of the likeliness that the logo will be found on more than just
print it‟s best to use clean lines. You don‟t see drop-shadows or beveling being used. This
allows for the logo to be easily placed on billboards, on business cards, on black and white
fax copies, mugs, t-shirts, mouse pads and all the rest.
We can take a few logos and analyse it, for example FedEx
The designer of the FedEx logo had embedded an arrow into its logo. If we concentrate and
look between the letters E & X you can see an arrow which shows speed and agility. These
are really well crafted logos which define the company and its product or services with just a
picture.
A logo should be able to convey its message over a prolonged period of time and it must be
able to adapt to cultural changes. It might be exciting to design a logo that is influenced by a
trendy typeface, but it will become outdated and need to be replaced in later years.
People engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or service has
certain qualities or characteristics that make it special or unique. A brand is therefore one of
the most valuable elements in an advertising theme, as it demonstrates what the brand owner
is able to offer in the marketplace. The art of creating and maintaining a brand is called brand
management.
A brand which is widely known in the marketplace acquires brand recognition. When brand
recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in
the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is
the identification of a brand without the name of the company present.
Consumers may look on branding as an important value added aspect of products or services,
as it often serves to denote a certain attractive quality or characteristic (see also brand
promise). From the perspective of brand owners, branded products or services also command
higher prices. Where two products resemble each other, but one of the products has no
associated branding , people may often select the more expensive branded product on the
basis of the quality of the brand or the reputation of the brand owner.
Types of brands:
A brand cannot be all things to all people, by definition; NO one brand is going to appeal to
all customers. On the contrary, branding is based on the concept of singularity – targeting
individuals in a personal manner – and therefore precludes the concept of universal appeal.
This is why many brands broaden and widen their appeal by creating tertiary brands or line
extenders. Although most industries and products or services can benefit from a brand not
every product needs its own stand-alone brand. Brand can be separated into three categories.
1. PRICING: A component of value; higher prices may signify to consumers higher quality
and lower prices may suggest decreased value.
3. QUALITY: Which impacts satisfaction; obviously, higher quality will translate to more
satisfied customers who come back again and again to purchase my offerings.
4. PRESENCE: Prominence in the paid & unpaid media; products and services with a high
profile market presence will lead to brand recognition and increased sales
5. AWARENESS: Top off mind awareness, residual awareness and recognition, which are
directly related to presence; the higher your offerings awareness the better my sales results
will be.
8. BENEFITS: Consumers may equate certain positive and negative consequences with use of
your product or service these may be warranted or unwarranted.
10. SHARE OF MARKET: Increased market share is a direct result of a successful branding
campaign.
11. CUSTOMER COMMITMENT: Loyalty is built through long term branding and close
consumer contact.
Meaning of Research
The term „research‟ is composed of two words „RE‟ and „Search‟ which means to search
again. Research is conducted to search for new facts or to modify the existing facts. The
obvious function of research is to add new knowledge to the existing store as well as to
remove the misconceptions and ignorance of mankind. Thus, research is a process and means
to acquire knowledge about any natural or human phenomena. It is the pursuit of the truth
with the help of study, observation, comparison and experiment.
Definition of Research
“Research is the process of systematically obtaining accurate answers to significant and
pertinent questions by the use of the scientific method of gathering and implementing
information.”
By Clover and Balsely
Types of Research
1. Descriptive Research:- This kind of research merely describes and depicts the current state
of affairs of different variables. The research has no control over these variables. He only
reports what has happened and what is happening. E.g :-Census in India
3.Explanatory Research :- This kind of research explains the causes of social and economic
phenomena. Describing or exploring the nature of a phenomena is one thing but explaining
the cause for the same is its explanatory aspect. E.g :- what are the cause for decline in
productivity and profitability of a business, why and What are the causes of industrial
backwardness of a state.
1. Exploratory design: - The main objective of exploratory studies is to achieve new insights
into phenomena. The major emphasis in these studies is on the discovery of new insights and
ideas. They are mostly carried out when the researcher has either no knowledge or a limited
knowledge about the phenomena under study.
E.g :- The impact of television on behavior of youth, Impact of globalization on Indian
culture and social life.
2. Descriptive design: - The descriptive research design enables the researcher to describe a
present picture of a phenomenon under investigation. The methodology involved in such
designs is mostly quantitative in nature producing descriptive data. 2. Descriptive design: -
The descriptive research design enables the researcher to describe a present picture of a
phenomenon under investigation. The methodology involved in such designs is mostly
quantitative in nature producing descriptive data.
4. Experimental design: - It is a design in which some of the variables being studied are
manipulated. It is a design which seeks to control conditions within which persons are
observed. Here control means holding one factor constant while others are free to vary in the
experiment. One variable is manipulated are its effect upon another variable is measured,
while other variables which may confound such a relationship are eliminated or controlled.
The purpose of experimental studies is to test a hypothesis of casual relationship between
variables.
Meaning of sample
A part of the population which is studied for making judgment about the entire population is
called a sample. Different Methods of drawing a sample out of a given population have been
developed by the statisticians. These methods with the help of which a sample is drawn out of
a given population are called as a techniques of sampling.
Types of Sampling
Probability Sampling
Non-probability sampling
1. Convenience sampling.
2. Judgment sampling.
3. Quota sampling.
4. Snowball sampling
Types of Data
Primary Data: - If the investigator collects the data originally for the investigation, the data is
called primary data.
Secondary Data: - If this investigator does not collect the data originally but uses data
collected by other investigator or agency and available in published or unpublished form, the
data is called secondary data.
Published Sources
a. Government Publications
b. Publications of Universities and Research Institutions
c. Publications of commercial and Financial Institutions
d. Reports of Committees and Commissions
e. Newspapers and Periodicals
f. Internet
Unpublished Sources
All statistical material is not always published. Such records are maintained by various
government, post offices and research institutions. Such sources can be used where
necessary.
THEORY OF CROSS-TABULATIONS:
Researchers often seek to explain why a certain variable varies. This variable of interest is the
dependent variable. For example, a researcher might be interested in why some people favour
gun control, while others do not. The distribution of a dependent variable is the relative
frequency of each value of the variable (simply put). Hence, if 46.6% of survey respondents
favour a ban on guns, while 53.4% oppose it, this is the distribution of the researcher‟s
dependent variable. A researcher then forms a theory of what causal factor might affect the
dependent variable, and the measurement of this causal factor is the independent variable. A
researcher might reason that, all else equal, a person will trust the leaders of his or her party
on an issue. Since Republican leaders almost universally argue against gun control, while
many Democratic leaders favour it, there should be less support for a gun ban among
Republicans when compared to Democrats. The researcher could then choose a survey
respondent's self-reported party identification to test the hypothesis that Republicans will be
less supportive of a gun ban than Democrats.
1. Use the independent variable to define a table‟s columns and the dependent variable
to define the rows. Include raw frequencies in parentheses in each cell and sum-up
total frequencies for each row and each column.
2. Always break-down percentages within categories of the independent variable. Many
people make a mistake by breaking-down percentages within categories of the
dependent variable; such a mistake prevents a researcher from testing the true
hypothesis that the independent variable causes the dependent variable and not the
reverse.
3. In interpreting results, compare the percentages across columns at the same value of
the dependent variable.
Some common mistakes to avoid: First, avoid breaking-down percentages by the dependent
variable (see rule 2). Second, avoid comparing the largest percentage in each category of an
independent variable: The hypothesis states that the frequency of the dependent variable will
vary by value of the independent variable; it does not argue what value of the dependent
variable will be most frequent. Lastly, avoid drawing inferences based on the pure magnitude
of percentages; the researcher‟s task is to look at differences in the distribution. For example,
even if 80% of Democrats and 60% of Republicans had expressed support for a gun ban, the
researcher should not focus on majority support in both categories, but conclude that a 20%
difference implies that partisanship importantly affects gun control opinion.
Here I am comparing the tenure ship of dealership of randomly picked up dealers for
Hyderabad market & Mahbubnagar market. 100 & 15 samples were take into consideration
for Hyderabad & Mahbubnagar respectively.
Option 1 : 1 to 3 years. Only 3% of the samples are in Hyderabad & 0% were found in
Mahbubnagar.
Option 2 : 4 to 7 years. 31% of dealers in Hyderabad were of a tenure raning from 4 to 7
years & 33.33% in Mahbubnagar.
Option 3 : 8 to 10 years. 28% of the dealers in Hyderabad fall into this category where as
40% in Mahbubnagar fall into this category.
Option 4 : more than 10 years. 38% dealers fall into this category in Hyderabad whereas
26.67% dealers fall into this category in Mahbubnagar.
What we can infer from here is Hyderabad has maximum number of dealers who are as old as
more than 10 years , whereas in Mahbubnagar maximum number of dealers fall into the
category of 8-10 years, which shows mahabubnagar is a budding market for ICL &
Hyderabad is a cash cow market for ICL.
In Mahbubnagar , most of the respondents were dealers of Coromandel & 53.33 % of the
respondents have rated the product to be of very good quality & 46.67% rated it as to be of
good quality. No respondent said that Raasi was of very good quality & few respondents said
that Raasi was of good quality.
In Hyderabad 15% of the dealer respondents said that the pricing of Coromandel & Raasi as
well was very high, specially in the case of Raasi. 73% of dealer respondents said pricing of
both the products were High as compared to its competitors & only 12% said products were
priced reasonably. Overall sentiments in Hyderabad market was of the view that the products
were highly priced as compared to its competitors.
In Mahbubnagar , 86.67% of the dealer respondents said that pricing of both the cements as
compared to its competitors was high, where as 13.33% of the respondents said these
products were extremely pricey.
The inference we can draw here is , both the markets respondents said pricing of both the
brands of cements was comparatively high which makes it more difficult for them to sell it as
compared to their competitors.
This question is more of a descriptive or open ended question as I used to ask the dealers the
reasons for not recommending ICL products. The reasons can be found at the findings section
of this report.
In Hyderabad market 79% of the dealers recommended ICL products where as 21% did not
recommend ICL products to their customers. 79% might seem to be on the higher side but
ICL cannot afford negative marketing because , those dealers who are not recommending ICL
products are doing negative marketing for the company as found out from personal
interviews with the dealers.
This question tries to find out the feelings of the dealers about the credit period being given to
them by ICL. This question had 5 answer choices :
1. Very Good
2. Good
3. Average
4. Bad
5. Very Bad
In Hyderabad, just 7% of the dealers said that the credit period given to them was very good
& a majority of 45% said that the credit period being given by ICL is average. 44% of the
respondents said credit period is good .
In Mahbubnagar a majority of 73.33% of dealers said credit period being given to them is
Good , and not a single dealer said that the credit period being given to them is bad or very
bad.
As Hyderabad is a primary market for ICL in Andhra Pradesh , ICL should look into
restricting the credit period in such a manner which would be a win-win situation for both the
dealers & the company.
1.Yes
2. No
In Hyderabad , 45% of the respondents said that customers did not treat Coromandel King &
Coromandel Super Power as a premium brand among other cements. Customers are of the
view that ACC , Lafarge & Ultratech score over Coromandel in terms of brand image. Where
as 55% said that Coromandel is a premium brand. Definitely majority is there who treat it as
a premium brand but its just by a margin. 45% is too huge a number to be treating
coromandel as a non-premium brand.
In Mahbubnagar scenario is different. It is quite ideal & 80% of the customers think of
Coromandel as a premium brand. It‟s a windfall margin .
When we compare both the markets , few advertising initiatives are more in Mahbubnagar as
compared to Hyderabad, which makes the brand recall for people in Mahbubnagar easier.
1. Yes
2. No
Scenario is quite different when we take Raasi into consideration. In Hyderabad 83% of the
respondents say its not a premium brand as compared to its competitors and 17% say it‟s a
premium brand
In Mahbubnagar just 40% of the respondents say that Raasi is treated as a premium brand in
Mahbubnagar market & 60% of the respondents were of the view that Raasi is not treated as
a premium brand.
It is quite amazing that over the years Raasi has lost its brand value. Revelations from
personal interviews say that a decade back Raasi commanded the market & also made a
statement that shops wouldn‟t open if they didn‟t have Raasi Cement in their stock ! But now
scenario is quite different. Customers have become smarter , competitors have become even
more smart. They have outsmarted Raasi with their marketing strategies.
Raasi is said to be a dying brand whereas ICL is trying hard to revive Raasi. More of its
details will be in the findings section of this report.
1.Very High
2. High
3. Reasonable
4. Average
5. Low
This question was aimed at finding out how aware are customers about India Cements Ltd. as
an entity and how aware are they that two major selling cement brands i.e Coromandel &
Raasi are brands of ICL.
In Hyderabad, majority (58%) of the respondents said that customers have below average
awareness that Coromandel is a product of ICL. 32% of the respondents say that awareness
among customers is barely reasonable which doesn‟t do any good to ICL.
In Mahbubnagar 60% say that barely people know that Coromandel is a flagship brand of
India Cements Ltd. & often confused Coromandel to be a part of Coromandel fertilizers from
the Murugappa Group !
1.Very High
2. High
3. Reasonable
4. Average
5. Low
In the case of Raasi situation is even worse. People don‟t even have a clue that Raasi is
owned by India Cements Ltd.
In Hyderabad 79% of the respondents said customers had very little or no idea that Raasi
comes from the factories of India Cements Ltd. 14% said their was below average awareness
among customers that Raasi is a brand of India Cements Ltd & a miserly 7% say that
customers somewhat have reasonable low awareness that Raasi is a brand of India Cements
Ltd.
In Mahbubnagar , 73.33% of the respondents say that customers have below average
knowledge that Raasi is a brand of India Cements Ltd & 26.67% say that reasonable
awareness among customers is there that Raasi is a product from India Cements Limited.
1. Yes
2.No
In Hyderabad ,78% of the respondents say that customers are able to relate the logo of
Coromandel with the product, whereas 22% of the respondents say that customers had no
idea about the logo of Coromandel.
In Mahbubnagar, the scenario is even better as 93.33% of the respondents respond that
customere here are able to relate the logo of Coromandel with the core product & a mere
6.67% of the respondents say that customers are not able to relate with the logo.
The difference here in both the markets is largely due to advertising , though Mahbubnagar is
a small place but the number of wall paintings & hoardings are more. People are constantly
reminded of the logo & the brand with its huge number of wall paintings in small vicinities.
1. Yes
2.No
In Hyderabad , a whooping 90% said customers have no clue what type of logo Raasi holds.
Just a miserly 10% say that few customers were able to relate Raasi with its current logo.
In Mahbubnagar also 73.33% say that customers have no clue about the logo of Raasi .
Whereas 26.67% say few customers have some clue about the logo of Raasi.
Logo‟s are very important for a brand to sustain its visibility. People recall brands from their
logos.
Desperate measures are needed to be taken to revive Raasi from its slumber.
Some recommendations are given in the finding & recommendation section of this report.
1. Yes
2.No
This question was aimed at finding out whether is it appropriate to market both the brands
under 1 logo. Though personally I am not in favour of this because Coromandel already has
two sub-brands being marketed under 1 logo i.e Coromandel King & Coromandel Super
Power & adding another brand to it will lead to more confusion & would definitely reduce
the brand value Coromandel enjoys.
In Hyderabad , 73% of the dealers recommended both be branded under 1 logo but without
any strong reason to back their view. They are more or less looking into a quick fix solution
to increase sales of Raasi under the umbrella of Coromandel , whereas 27% were of the view
that both the brands be marketed under 2 different logos.
In Mahbubnagar , 60% of the respondents were of the view that both the brands be marketed
under 1 logo but same without any strong backing. And 40% said both the brands should be
left alone .
1. Yes
2.No
This question basically aimed at finding how many dealers were dealing with other
companies also. It was necessary to opt for dealers who were not sole Coromandel or Raasi
dealers but multiple dealers so as to get unbiased opinion from them about the products and
the questions I asked to them.
In Hyderabad , 85% of the respondents fell into the multiple dealer category & only 15% of
the dealers fell into exclusive dealership.
In Mahbubnagar , approximately 73.33% of the dealers were multiple dealers & remaining
26.67% dealers were the ones who had exclusive dealership.
The final question which is of prime importance. If intends to find the overall satisfaction
levels of the dealers who are dealing with India Cements Ltd. This question is though just
having 2 options for answering , the results were more or less given in a statement by the
dealers during the personal interviews. This graphical representation of the question just
show numerically what percentage of the dealers are satisfied or unsatisfied.
There has been stark remarkable difference in opinions between dealers of Hyderabad &
Mmahbubnagar.
In Hyderabad , 66% of the dealers are unsatisfied with the way India Cements Ltd. is
handling them , whereas just 34% are fully satisfied , which doesn‟t serve the purpose of the
company.
In Mahbubnagar its altogether different , 100% of the dealers were satisfied the way India
Cements has been dealing with them.
Q2.ICL Dealership Duration * Q18.Satisfaction level as ICL Business Partner. Cross tabulation
2.00 Count 15 16 31
3.00 Count 7 21 28
4.00 Count 11 27 38
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Satisfaction Level has 2 options : (a) Yes (b) No
From the above table we can infer that maximum of the unsatisfied dealers fall into the
category of more than years of dealership activities with ICL & the least unsatisfied dealers
fall into the category of 1-3 years or fairly new dealers. 2nd highest unsatisfied dealers fall
into the category of 8-10 years of experience & second last would be 4-7 years.
It can be observed that as the duration of dealership increases with ICL , more of unsatisfied
dealers number has been rising. Various factors are responsible for this which have been
mentioned in the findings section of this study.
2.00 Count 17 27 44
3.00 Count 11 34 45
4.00 Count 3 1 4
Credit period had 5 options : (a)Very Good (b)Good (c)Average (d)Bad (e) Very bad
He we can infer majority of the dealers i.e 34% of the total sample size are unsatisfied dealers
and they rate the credit period given by them as average. In the previous table we saw
majority of the dealers who were unsatisfied were quite experienced dealers & hence we can
say the experienced dealers say theat credit period given by the company is of average
ratings.
Then next highest is that 27% of the dealers say that credit period given to them is good &
they are unsatisfied dealers though. Their satisfaction rating is related to other factors.
17% of the dealers say that credit rating is good & their overall experience with ICL is
satisfactory.
Only a mere 3% satisfied dealers say that credit period given to them is of average rating &
3% of satisfied dealers say that credit period given to them is very good.
2.00 Count 2 19 21
This cross tabulation shows us the number of satisfied dealers who recommend ICL products
and vice versa.
Strange observation here would be , 47% the majority of unsatisfied dealers recommend India
Cements Products to their customers & 19% of unsatisfied dealers do not recommend India
Cements Products to their customers.
Cumulatively 79% of the dealers do recommend India Cements products to their customers
where as 21% of both satisfied & unsatisfied dealers do not recommend India Cements
products to their customers
2.00 Count 2 12 14
This cross tabulation shows us the satisfaction level of dealers as compared with timely
supply of cement to them.
54% a majority of unsatisfied dealers said that cement was supplied to them on time as and
when ordered. 32% of satisfied dealers also say that cement was supplied to them on time by
the company. So cumulatively 86% of the dealers say that they received timely supply of
cement as and when ordered.
12% of unsatisfied dealers say that cement was not supplied to them on time . Whereas 2% of
satisfied dealers had grievances that cement was not being supplied to them on time even
when India Cements is the only company in Hyderabad which has its manufacturing unit just
120 kilometres away from Hyderabad and still not able to supply cement on time.
Cumulatively 14% of both satisfied & unsatisfied dealers say that cement was not supplied to
them on time.
Q10.Coromandel as a Premium
Brand?
2.00 Count 9 22 31
3.00 Count 17 11 28
4.00 Count 17 21 38
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Coromandel being considered as a premium brand by customers has 2 options : (a)Yes (b) No
21% of highly experienced dealers have to say that Coromandel is not being treated as a
premium brand by customers.Whereas 17% of highly experienced customers have to say that
Coromandel is being treated as a premium brand by their customers.
22% of dealers who have dealership experience in the range of 4 to 7 years have to say that
Coromandel is not being perceived as a premium brand by their customers where as 9% of
dealers in the same experience range responded as Coromandel being treated as a premium
brand by their customers.
Opinions varied from general opinions with dealers ranging in experience from 8 to 10 years.
Here 11% of the dealers said that Coromandel is not being treated as a premium brand by
their customers whereas 17% i.e majority of dealers in this experience bracket have to say
that Coromandel is being treated as a premium brand by its customers.
2.00 Count 4 27 31
3.00 Count 7 21 28
4.00 Count 6 32 38
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Raasi being considered as a premium brand options are : (a) Yes (b) No
This cross tabulation would help us in inferring the view of dealers as per their experience
with Raasi being treated as a premium or not.
Cumulatively we saw in frequency tables that a majority of 83% of dealers say that Raasi is
not being treated as a premium brand by its customers. In total 17% say that Raasi is being
considered as a premium brand among customers. Above we can see that even the most
experienced of dealers only 6% say Raasi is considered as a premium brand.
And only 7% of the dealers falling in the experience category of 8-10 hours say Raasi is
being considered as a premium brand among customers.
2.00 Count 22 9 31
3.00 Count 24 4 28
4.00 Count 30 8 38
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Recall of Coromandel Logo has 2 options : (a) Yes (b) No
In the frequency charts we have seen that Coromandel has got good logo recall as compared
with Raasi. Cumulatively Cormandel enjoys good logo recall , 78% of all the dealers
confirm to the fact that Coromandel has got good logo recall whereas 22% of the respondents
say that Coromandel doesn‟t have good recall .
Only 8% of the most experienced dealers have to say that Coromandel doesn‟t enjoy good
recall as a brand whereas 30% say that Coromandel enjoys good recall .
Overall the picture is quite favourable for Coromandel as maximum majority says that
Coromandel has good recall among customers.
2.00 Count 3 28 31
3.00 Count 1 27 28
4.00 Count 6 32 38
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Recall of Raasi Logo has 2 options : (a) Yes (b) No
Without any doubts its clearly visible from the table Raasi does not enjoy any logo recall
from the market. Dealers have responded that customers do not at all recognise the logo of
Raasi.
Cumulatively above 90% say that Raasi does not enjoy any recall/logo recognition from
customers where as just 10% do not say that.
Q18.Satisfaction
level as ICL
Business
Partner.
1 Total
2 Count 11 11
3 Count 3 3
Total Count 15 15
Credit period had 5 options : (a)Very Good (b)Good (c)Average (d)Bad (e) Very bad
He we can infer majority of the dealers i.e 73.3% of the total sample size are satisfied dealers
and they rate the credit period given by them as good. Then next highest is that 20% of the
dealers say that credit period given to them is good .
Q6.Price of Products
2 3 Total
3 Count 6 0 6
4 Count 3 1 4
Total Count 13 2 15
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Price of Products has 5 options : (a)Very High (b) High (c) Reasonable (d) Low (e) Very low
Cumulatively 86.7% of respondents have said that price of India Cements products is
comparatively high in the Mahbubnagar market.
Only 13% have cumulatively said that price of India cement products is somewhat reasonable
in Mahbubnagar market.
Q10.Coromandel as a Premium
Brand?
1 2 Total
3 Count 5 1 6
4 Count 4 0 4
Total Count 12 3 15
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Coromandel as a premium brand has 2 options : (a) Yes (b) No
In the frequency charts we have seen that Coromandel is considered as a premium brand as
compared with Raasi. Cumulatively Coromandel enjoys good brand image , 80% of all the
dealers confirm to the fact that Coromandel has got a premium brand image whereas 20% of
the respondents say that Coromandel doesn‟t have a premium brand image.
26.7% of the most experienced dealers have to say that Coromandel enjoys a brand premium.
Overall the picture is quite favourable for Coromandel as maximum majority says that
Coromandel has good recall among customers.
3 Count 3 3 6
4 Count 1 3 4
Total Count 6 9 15
Dealership duration has 4 options : (a)1-3 years (b)4-7years (c)8-10 years (d) >10 years
Coromandel as a premium brand has 2 options : (a) Yes (b) No
Raasi has got mixed responses from the respondents. Overall 60% dealers say that Raasi does
not enjoy a premium brand image among the customers . 20% of highly experienced dealers
say Raasi does not enjoy a premium brand image.
Crucial Findings :
100% of the dealers said they faced problems with the accounting system. All big and
small dealers say accounting system is hugely flawed at India Cements ltd. Their
major concern is that company is very lacastical when it comes to settlement of
accounts and giving discounts. Some dealers have revealed that they haven‟t received
statements since 1 and a half year even after continuously reminding ICL. Whereas
they claim ACC, Ultratech and likewise are very prompt in delivering account
statements on a monthly basis which helps them keep updated but same is not the case
with India Cements Ltd.
All the dealers say that discount realization at India Cements Ltd. is very poor. They
are not aware when they will be receiving their discounts. They sell cement way
below the billing price & hence the difference which has to be compensated by the
company , is done in a wayward manner. It is very problematic for small dealers as
they find their capital blocked here for a longer period of time. Big dealers are
somewhat grudging about this also. They order in huge quantities and big money get
blocked in the process is what the say.
Few dealers have the complain that they do not get ordered quantity of Coromandel
King ( the OPC version ). They claim that company is not willing to dispatch
Coromandel King & instead is pushing for Coromandel Super Power ( the PPC
version ).
Many dealers have pointed out that packaging is faulty. They say the bags aren‟t
strong enough and by the time they receive their orders , they lose a few kgs of
cement due to faulty packaging.
Another stark finding was that , dealers have observed change is colour of cement
being delivered. Though colour of cement is irrelevant to the strength of the cement
but consumers are of the belief that darker the colour of cement , better the quality !
All the dealers have pointed out that company is not spending enough or is incurring
minimal expenditure in marketing activities. Compared to other companies
promotional activities of the company in Hyderabad is very less compared to
Mahbubnagar , is what I have observed.
Dealers are complaining that there are virtually no dealer mason meets in Hyderabad
market being arranged by the company.
Coromandel has grown into a big & strong brand in these 2 markets. But people are
unaware that Coromandel is a product of India Cements Ltd. Whereas Raasi , it has
almost lost its brand image . People do not even recognize the logo of Raasi.
Best advantage that India Cements has is , it is the only company which has a
manufacturing unit in close proximity of Hyderabad i.e the manufacturing unit at
Tandur.
Dealers say without doubt that Coromandel King is the best quality of cement
available in the market even when compared with other international companies,
Coromandel King stands out for its quality.
India Cements Ltd. has a large dealer network in Hyderabad , may be it‟s the largest
network we have compared to other companies which definitely server the purpose of
the company & helps it to cater to every nook & corner of Hyderabad.
Market responsiveness is quite low. India Cements takes decision based on price quite
slowly which when applying those decisions it has no relevance left.
Dealers should be given their discounts on time to increase the number of satisfied
dealers , as more the number of satisfied dealers more will be the sales.
Packaging has to be checked. Another point here could be , India Cements Ltd. should
embed the company name with the brand name on the bags to increase the visibility
that Coromandel & Raasi are products of ICL. This small tweak in packaging can be
of a big help in marketing and spreading awareness among consumers.
Colour of the cement being produced should be constant to avoid creating doubts in
the mind of consumers about the quality of the cement.
ICL should be more responsiveness & flexible in setting price of cements as per the
market requirements & should move away from this rigid pricing system.
“Questionnaire”
2. Since how long have you been dealing with India Cements Limited?
3. How would you rate India Cements products on the basis of quality?
7. Whether the expected quantity of India Cements products is supplied to you on time?
Yes No
8. What do you feel about the credit period given to you by India Cements Ltd?
Very Good Good Average Bad Very Bad