cemnt industry india

8/7/2019 cemnt industry india

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SUBHOJEET NASKAR

SUBHOBRATA SENGUPTOSWASTI RANJAN SAHU

TAHSIN AKHTAR

TATHAGATO BISWAS

TANIA DATTATRIPTI DAS

URMIMALA PAUL

PRESENTED BY THE QUALITY ALL GROUPPRESENTED BY THE QUALITY ALL GROUP


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INDUSTRY OVER VIEW:INDUSTRY OVER VIEW:--


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SEGMENTATIONSEGMENTATION

Cement is a bulkcommodity, so theindustry is mainly productbased.

Segmentation in cementindustry is based on-

1) its various products.eg- Portland pozzalanacement, quick hardeningcement,readymixcement.

2)Life Style-White cement


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SEGMENTATIONSEGMENTATION

Industry focuses onrelationship approach, so as to build and maintaintrustcenteredrelationship.

The cement Industry is mostly donethroughmass marketing, as it doesnthave any

customized product for any specific group of customers.


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DEMAND DRIVERSDEMAND DRIVERS

1)Strong GDPgrowth of over 8per cent overthe

pastthreeyearswhich is likelytosustain in future

2)HugeInfrastructurespending on

Roads, irrigation,

urbaninfrastructure,

seaports, air-ports.

3)Over Rs 100000cr. of investmentlined up for SEZs

overnext fiveyears

4)Booming RealEstatemarkets ledby unprecedented

foreigninvestment.


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MARKETING MIXMARKETING MIX

Marketing mixis the combination ofelements thatyou will useto marketyour product.(4 Ps)


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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..

Prices across thecountryhaverisen

substantially buoyedbytherobust

demand for cement.

the local demand is

morethan 60 percent ofthe capacity

the prices elsewhere inthe country arereachingthe viable levels of Rs

180to Rs 200 per bag.

TheThe keykey factorsfactors affectingaffecting priceprice sensitivitysensitivity::ii)) stockstock priceprice movementsmovements (IPO)(IPO) ofof cementcement companiescompanies..ii)Seasonalii)Seasonal changeschanges ..iii)Naturaliii)Natural calamitycalamity


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Everyyearthe price israising by Rs.10-15.2008-09the avg. price wasRS.250-265 but ithasraised to Rs.280-290.

REASONS: increase inthe price ofrawmaterial, andtransportation cost

EFFECT OFEFFECT OFINFLATIONINFLATION

Distribution channel of cement has 3 level distribution channel.Distribution channel of cement has 3 level distribution channel.

1)Carry &1)Carry &Forward AgencyForward Agency

[CFA][CFA]

2)Dealers2)Dealers 3)Sub3)Sub--DealersDealers


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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..main shortcomings in the distribution are:main shortcomings in the distribution are:--

Lack of good communication channel

Roadways Distantly located plants

High sales tax on importfrom other states

High transportation cost

MAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMS

ChannelConflict/Conflict

betweendistributers

TransportationProblems

Cost/Availability OfRaw Materials


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Cement industrymainly applies a push strategyas cement is essentially viewed as commoditybytheend user. So companymainlytargets the

dealers,engineers who ultimately influencepurchase ofthe product,throughmeeting,seminars, camps anddistributinggifts. itspends max of its promotional funds in pushstrategy, and on the dealers,engineers, as theyinfluencethe individual home builders.

Is CementMe Jaan Hai

Jaan Wahi, Pehchan Nai- ULTRATECH


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But with increase in large number ofBut with increase in large number offragmented customers pullfragmented customers pull strategy

has

now been adopted bytop

leading companies throughadvertisement inT.V., newsT.V., news

papers, hoardings, sponsoring showspapers, hoardings, sponsoring shows,,etcetc

Eg- ultratech- Engineers choice

Cement sector(specially ACC Cement) is now adopting

sustainable development practices & they are trying to

make cement which reduces the impact of green house

gases.


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BRANDING & ADVERTISEMENTBRANDING & ADVERTISEMENT

Though being a commodity product, branding is important forThough being a commodity product, branding is important for

a cement company.a cement company.

ACC CEMENTSACC CEMENTS

PPC

PBFSC

AMBUJAAMBUJA

CEMENTSCEMENTS

PPC

PBFSC

ULTRATECHULTRATECH

CEMENTSCEMENTS

PPC

PBFSC

REVENUE:REVENUE:--As ACC is the most trusted brand in cement it enjoys the

excess revenue and profit than others.

Revenue for the year 2009, acc-Rs.8749 cr

konark cement-Rs.780 cr


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Branding & AdvertisementBranding & Advertisement continued..continued..

The cement industry uses less amount for

advertising as theT.V. and hoardings, and print

media count very less as compared to the abovetwo.

The film Chak De India, promoting

women's hockey in India, became an all-time hit. In the movie UltraTech was the

sponsor of the Indian women's hockeyteam


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SALES MANAGEMENTSALES MANAGEMENT

Cement industry has scope lies mainly inB2B rather than B2C. The reason being:

1. Number of housing companies, realestate business is continuously rising.Demand for cement has increased in thehousing sector ~53%

2. most importantly, govt. has allocated

Rs.1000 cr. To the cement industry forirrigation purpose.

Relationship with the distributers/dealers isa key factor for the success and growthbecause the success of cement industry lieson long term relationship. E.g, IndiaCements with Gammon in Kolkata Metroconstruction.

Relationship also indicates how it can attachits product with the individual homebuilders, which is also another key factor.


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SALES MANAGEMENTSALES MANAGEMENTCONTINUEDuCONTINUEDu

. Formaintaininggood relationshipcompanies followvarious strategy;they providegiftsonevery annual

meeting, freetourprograms ,etc..

STRUCTURE OFSTRUCTURE OFSALES FORCESALES FORCE

The structure ofthesales team consistsof sales director,

manager, assistantsales manager,team leader andsales person.

Number of salesperson depend

uponthe potentialofthe area,

customer base.acc has 20 sales

office,10,000sales force

SALESSALESCOMPENSATIONCOMPENSATION

Sales forcegets basic

salary, incentives onachievement of prefixedtarget, D.A. bonuses ETC

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cemnt industry india