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1.0 INTRODUCTION:
Marketing is a communication process that has the purpose of individuals
or groups - that are directly or indirectly able to purchase - aware of products and
services that may satisfy their existing or newly-identified needs and wants.
Marketing is defined by the American Marketing Association as the activity, set
of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at
large. The term developed from the original meaning which referred literally to
going to market, as in shopping, or going to a market to buy or sell goods or
services.
Dealer
Any person who carries on business in purchasing, selling, supplying or
distributing goods and also includes works contractor, company, Co-operative
Society, Broker, Commission Agent, Auctioneer or any other mercantile Agent for
the consideration of cash, commission and deferred payment.
There are two types of dealer such as:
1) Registered dealer.
2) Casual dealer
Wholesaler
A wholesaler buys goods in large quantities from their manufacturers or
importers, and then sells smaller quantities to retailers, who in turn sell to the
general public.
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Many shops are part of a chain: a number of similar shops with the same name
selling the same products in different locations. The shops may be owned by one
company, or there may be a franchising company that has franchising agreements
with the shop owners.
Retailer
A retailer buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells individual items or
small quantities to the general public or end user customers, usually in a shop, also
called store. Retailers are at the end of the supply chain.
DEALER SATISFACTION
Satisfaction in level of persons felt state resulting from company’s products
perceives performance in relational to the person’s expectations. Satisfaction is a
function of the difference between the perceived performance and expectations.
Company seeks to win in today’s market. The must track their declares
expectations, perceive company performance and dealers satisfaction. While
assessing the satisfaction level a company must not conclude that it can get full
picture of dealer satisfaction and dissatisfaction by simply running complaints and
suggestions.
As some times dealers may feel that their complaints are minor or that they will be
made to feel stupid , or that normally will be offered the results is that the company
has need Lesley lost dealers.
Therefore companies instead of using complaints level as measure of dealer’s
satisfaction, obtaining a direct measure of dealer satisfaction of conducting
2
periodic survey would provide more appropriate measures. The questionnaire can
be made to a random sample of their recent customers.
To find out how they fell about various aspects of the company’s performance.
They can also solicit dealers view on the competitor’s performance.
The respondents can be asked to list out problems they have, had with the
offer and to list out improvements they could suggest companies would also ask
the respondents to rate various elements of the offer in terms of the importance of
each element and how well the company has performed
Exclusive dealers needed to bring dealers satisfaction. Many dealers like to
develop exclusive channels for their products. The strategy in which the producer
allows only certain concepts to carry its products is called exclusive design when
the producer requires that these dealers should not handle expeditor products its
strategy is called exclusive dealing, both parties benefits from exclusive
arrangements.
Cement industry is one of the major industries in India. Today there are
130 large cement plants and more then 300 mini cement plants operating in India,
producing cement under different brands and grades. Though most of the
companies are restricted to surrounding states, some spread throughout India. A
local market to a city, a district, or a state is composed of a variety of brands
leaving to the customer a wide range of choice.
‘In the market, the movement of cement largely depends on the dealer’s
promotion, constructor or contractor’s awareness and advice to the customer and to
an extent on the awareness of the customer. Dealer is one of the key persons who
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can affect the movement of a particular brand of cement. A marketer needs the
information regarding the dealer’s satisfaction on different factors like product
quality, service, price, supply and satisfaction of company’s promotional activities
so as to estimate his willingness to push the brand.
The study attempts to analyze the satisfaction of the dealer regarding various
factors corresponding to KCP CEMENTS and the brand preference by the dealers.
This helps the marketers of KCP CEMENTS to estimate the market position of
KCP CEMENTS and take steps for their expansion of business.
2.0 NEED OF STUDY:
To study the dealers satisfaction levels towards KCP cements regarding
promotional activities, Supply, quality and quantity of cement and to
know demand level of KCP cements in the market by the customers.
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3.0 OBJECTIVES:
To find the Dealer’s Satisfaction Level with KCP CEMEMTS.
To find the factors influencing the dealers to deal with KCP CEMEMTS.
To study various areas that needs improvement in KCP cements from dealer
point of view.
To study the impact of sales promotion on sales.
To find the dealer’s suggestions if any with respect to KCP CEMEMTS.
5
4.0 SCOPE OF THE STUDY:
The study is confined on the selected dealers in Nalgonda and Hyderabad
Districts.
To know the dealer’s satisfactory levels with quality, supply, packing,
service of KCP CEMENTS and promotional activities by the company.
The study enables to know the expectation of the dealers and consequently the customers.
The project highlights the scope for future improvements on the basis of
present scale.
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5.0 LIMITATIONS OF THE STUDY:
Since the survey was done only in Nalgonda and Hyderabad Districts the
result obtained may not be taken as universal suggestion.
Quality of the information highly dependent on the knowledge of the
respondents.
The results may not be accurate because the survey is on KCP CEMENTS
dealers and hence there is a possibility of bias in their responses.
The attitude, perception of the customers and the market situations in
Nalgonda and Hyderabad districts differs from other market so same
approach may not be beneficial.
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6.0 RESEARCH METHODOLOGY:
Research methodology describes how the research study was undertaken.
This includes the specifications of source of data, research design, and method of
data collection, the sampling method and the tools used.
SAMPLE DESIGN:
Geographical area:
The study is conducted in two districts Nalgonda and Hyderabad.
Duration of project:
The duration of project work is about 45 days
Population:
Population for this research is set of dealers those who are dealing with KCP
CEMENTS in Nalgonda and Hyderabad districts.
Sample units:
The sampling units used by the researcher for this research, are those who
are dealing KCP CEMEMTS.
Sample size:
The number of samples collected by the researcher is 80 dealers
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Sampling procedure / Sampling method:
The sampling method used for this study is non-profitability convenience
sampling, which is selected according to the easy and convenience of the
researcher.
SOURCE OF DATA
Primary data:
The researcher collected both by direct survey from the dealer’s
through questionnaire. The researcher used structured questionnaire.
Secondary data:
Here the researcher collected secondary data from the company
profile, industry profile and official web sites.
RESEARCH INSTRUMENT:
Research instrument used for data collecting is questionnaire and interview
schedule.
Questionnaire
The questionnaire is prepared in a well-structured and non disguised form so
that it is easily understandable and answerable by everyone. The type of questions
include in the questionnaire are open-ended questions, multiple choice questions
and dichotomous questions.
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Interview Schedule
The interview method of collecting data involves presentation of oral-verbal
stimuli and reply in terms of oral-verbal responses. Then the responses are filled up
in the questionnaire, for further analysis.
7.0FRAME WORK OF ANALYSIS:-
STASTICAL TOOLS USED FOR ANALYSIS:
The researcher carries out analysis through various statistical tools. The
statistical analysis is useful for drawing inference from the collected information.
Simple percentage analysis
Bar diagrams
Pie charts
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INDUSTRY PROFILE
Sector structure/Market size:
India is the 2nd 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 overall outlook for the industry 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. Domestic demand for cement has been increasing at a fast pace in India.
Cement consumption in India is forecasted to grow by over 22% by 2009-10 from
2007-08.Among the states, Maharashtra has the highest share in consumption at
12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leading
with 14.72% of total production followed by Rajasthan. Cement production grew
at the rate of 9.1 per cent during 2006-07 over the previous fiscal's total production
of 147.8 mt(million tons). Due to rising demand of cement the sales volume of
cement companies are also increasing & companies reporting higher production,
higher sales and higher profits. The net profit growth rate of cement firms was
85%.Cement industry has contributed around 8% to the economic development of
India. Outsiders (foreign players) eyeing India as a major market to invest in the
form of either merger or FDI (Foreign Direct Investment). Cement industry has a
long way to go as Indian economy is poised to grow because of being on verge of
development.
11
Despite the growth of Indian cement industry India lags behind the per capita
production. Supply for cement is expected to remain tight which, in turn, will push
up prices of cement by more than 50%. The most important factor for better prices
is consolidation of the industry. It has just begun and we will see more
consolidation in the coming years. Other budget measures such as cut in import
duty from 12.5 per cent to nil etc. are all intended to cut costs and boost
availability of cement.
One of the strategies is to decrease dependence on road & opt for sea logistics as
that can cut transportation cost by 30- 50 %. Some plants are adopting futuristic
plan such as setting up captive power plant, moving closer to the customers by
creating clicker, crushing, and capacity in key markets, to be more customer
centric to generate better revenue. India should push for stricter regulations of
market place as to control the prices of big companies and prevent them from
forming cartels and exchanging information. To fight with the high inflation,
government wants to import more cement from Pakistan .However cement prizes
are not very much high as other items but still they are increasing. And the reason
of high prize is surging cost of raw material and transportation cost. Apart from
this government also discussed with cement industry not to have increase in prizes
and keep consumer interest in mind.
Now the question arise in front of the government is whether the demand by the
government is possible to increase through expenditure on infrastructure or not
according to the current state of economy when so many crises are going on or
how the government allocation of US$ 3.23 billion for the National Highway
Development, Project will keep the demand for cement alive?
12
India is the world's second largest producer of cement after China, with
cement companies adding nearly eight million tones (MT) capacity in April 2009,
taking the total installed capacity to 219 MT and dispatch of 16.65 million tones
during April 2009. A few of the leading manufacturers are the UltraTech/Grasim
combine, Dalmia Cements, India Cements, and Holcim etc. The cement industry
may add 40-45 MT of capacity this fiscal, a 21 per cent increase over the installed
capacity at 212 MT in 2008-09.
With the boost given by the government to various infrastructure projects, road
networks and housing facilities, growth in the cement consumption is anticipated
in the coming years. Another 50 MT capacity is likely to be added this year,
according to industry sources.
With almost total capacity utilization levels in the industry, cement dispatches have
maintained a 10 per cent growth rate. Total despatches grew to 170 MT during
2007–08 as against 155 MT in 2006–07.
Moreover, cement despatches were 18.12 MT in March 2009, showing a growth of
10.35 per cent as compared to 16.42 MT in March 2008. During March 2009,
cement production was 18.10 MT, registering a growth of 10.43 per cent as
compared to 16.39 MT in March 2008.Despite concerns of slowdown, led by a
change in economic scenario along with excess supply pressure; the cement
industry has ended FY 2008-09 on a strong note.
According to experts, the fourth quarter of the current financial year 2009
will report a 2-3 per cent growth in margins due to rise in prices and 10-12 per cent
year-on-year growth in sales due to sudden increase in demand this quarter.
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Technological change
Continuous technological upgrading and assimilation of latest technology
has been going on in the cement industry. Presently, 93 per cent of the total
capacity in the industry is based on modern and environment-friendly dry process
technology and only 7 per cent of the capacity is based on old wet and semi-dry
process technology. There is tremendous scope for waste heat recovery in cement
plants and thereby reduction in emission level.
New Investments
Shree Cements will invest almost US$ 244.12 million this year, of which
half will be invested towards setting up two grinding units at Rajasthan and
Uttarakhand to augment its capacity. The other half will be towards the two
power plants in Bangor.
ACC Ltd will spend US$ 575 million on capacity expansion in 2009 and
2010. ACC is expanding capacity by a third to 30 MT by 2010.
Binani Cement has signed a memorandum of understanding with the Gujarat
government to set up a 2.5 MTPA Greenfield cement plant in Gujarat at a
cost of US$ 169.40 million. Binani Cement has also initiated talks with a
few foreign institutional investors (FIIs) to raise US$ 307.99 million for its
new projects.
Bheema Cements Ltd is planning to invest US$ 116.42 million in setting up
a new manufacturing line of 1.5 MT capacities at its plant in Andhra
Pradesh.
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Mergers and Acquisitions (M&As)
A growing and robust economy was noteworthy in terms of the total number of
mergers and acquisitions (M&A) in India 2007, with the cement sector
contributing to 7 per cent to the total deal value.
Holcim strengthened its position in India by increasing its holding in
Ambuja Cement from 22 per cent to 56 per cent through various open
market transactions with an open offer for a total investment of US$ 1.8
billion. Moreover, it also increased its stake in ACC Cement with US$ 486
million, being the single largest acquirer in the cement sector.
Leading foreign funds like Fidelity, ABN Amro, HSBC, Nomura Asset
Management Fund and Emerging Market Fund have together bought around
7.5 per cent in India's third-largest cement firm, India Cements (ICL), for
US$ 124.91 million.
Cimpor, the Portugese cement maker, paid US$ 68.10 million for Grasim
Industries' 53.63 per cent stake in Shree Digvijay Cement.
CRH Plc, the world's second biggest maker and distributor of building
materials, acquired a 50 per cent stake in My Home Industries Ltd for almost
US$ 372.64 million.
Vicat SA, a French cement maker acquired a 6.67 per cent stake in
Hyderabad-based sagar Cement for US$ 14.35 million.
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Government Initiatives
Government initiatives in the infrastructure sector, coupled with the housing sector
boom and urban development, continue being the main drivers of growth for the
Indian cement industry.
Increased infrastructure spending has been a key focus area over the last five
years indicating good times ahead for cement manufacturers.
The government has increased budgetary allocation for roads under National
Highways Development Project (NHDP).
Appointing a coal regulator is looked upon as a positive move as it will
facilitate timely and proper allocation of coal (a key raw material) blocks to
the core sectors, cement being one of them.
Road Ahead
According to a report by the ICRA Industry Monitor, the installed capacity is
expected to increase to 241 MTPA by FY 2010-end. India's cement industry is
likely to record an annual growth of 10 per cent in the coming years with higher
domestic demand resulting in increased capacity utilization.
Moreover, according to the Centre for Monitoring Indian Economy (CMIE),
cement production is expected to grow by 8.1 per cent and demand for the same is
likely to rise by a healthy 7-7.5 per cent in FY 2009-10.
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CEMENT INDUSTRY & SERVICES
An Overview
The cement industry is experiencing a boom on account of the overall
growth of the Indian economy. The demand for cement, being a derived demand,
depends primarily on the industrial activity, real estate business, construction
activity, and investment in the infrastructure sector. India is experiencing growth
on all these fronts and hence the cement market is flourishing like never before.
Indian cement industry is globally competitive because the industry has witnessed
healthy trends such as cost control and continuous technology up gradation. Global
rating agency, Fitch Ratings, has commented that cement demand in India is
expected to grow at 10% annually in the medium term buoyed by housing,
infrastructure and corporate capital expenditures.
Current Scenario
The Indian cement industry is the second largest producer of quality 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
beginning of the year 2008-09 was 198.30 million tonnes.
Cement production during April to October 2008-09 was 101.04 million tonnes as
compared to 95.05 million tonnes during the same period for the year 2007-
08.Despatches were 100.24 million tonnes during April to October 2008-09
whereas 94.33 million tonnes during the same period for the year 2007-08.During
April-October 2008-09, cement export was 1.46 million tonnes as compared to
2.16 million tonnes during the same period for the year 2007-08.
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Technological Advancements
Modernization and technology up-gradation is a continuous process for any
growing industry and is equally true for the cement industry. At present, the quality
of cement and building materials produced in India meets international standards
and benchmarks and can compete in international markets. The productivity
parameters are now nearing the theoretical bests and alternate means. Substantial
technological improvements have been brought about and today, the industry can
legitimately be proud of its state-of-the-art technology and processes incorporated
in most of its cement plants. This technology up gradation is resulting in increased
capacity, reduction in cost of production of cement.
Future Outlook
Considering an expected production and consumption growth of 9 to 10 per
cent, the demand-supply position of the cement industry is expected to improve
from 2008-09 onwards, resulting in an expected price stabilization. The cement
industry is poised to add 111 million tones of annual capacity by the end of 2009-
10 (FY 10), riding on the back of an estimated 141 outstanding cement projects.
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Major Players
The major players in the cement sector are:
Ultratech Cement
Century Cements
Madras Cements
ACC
Gujarat Ambuja Cement Limited
Grasim Industries
India Cements Limited
Jaiprakash Associates and
JK Cements.
Holcim
Lafarge
Bharathi cement
Italcementi
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STATISTICS
Cement
(million tonnes)
2009-10 2008-2009
(Apr-Oct)
(a) Production 141.04 105.05
(b)Despatches (Including Export)
139.24 101.33
(c) Export 2.28 1.56
(d) Cap. Uti.(%) 92 85
Source: Cement Manufacturers’ Association
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COMPANY PROFILE
The KCP Group of Companies had its beginning in the year 1941. It started
with a single co-operative sugar factory in the state of Andhra Pradesh in South
India with a simple philosophy... Modernize... Indigenous...Never compromise on
Technology ´. These were the words of our founder Shri V. Ramakrishna who had
stepped down at the age of 51 in those pre-independence turbulent days (before
1947) to take up this challenge. Since then The KCP Group has diversified into
Cement and Heavy Engineering. The KCP Cement Division went operational in
1958 and was India's first dry process kiln. The KCP Heavy Engineering Division
was established in 1955 as a sprawling High Technology Complex in the suburb of
Chennai. This complex is one of the largest and highly integrated centers with
Casting, Fabrication and Machining facilities required in the manufacture of large
infrastructure machinery for core Industries like Sugar, Cement, Steel and Power.
Our Chairman & Managing Director Dr. V.L Dutt and Joint Managing
Director Mrs. V.L. Indira Dutt have been the guiding architects for the group´s
continued progress. Under their leadership we have grown from strength to
strength into a Rs. 150 Crore ($ 50 million) company. An important highlight in
the financial performance is its 58 year uninterrupted dividend record and its bonus
capitalization of shareholder wealth (98% of share capital) which is the 3rd highest
in India.
KCP Philosophy
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KCP’s philosophy is to “modernize, Indigenize, Never Compromise on
technology” This has taken KCP from being a single co-operative sugar factory in
1941 to being one of the largest and most well diversified industrial houses in
India.
KCP HR Mission
KCP’s human resources development & services department will add value
to all its Units and associate companies by ensuring that the right person is
assigned for the right job and that they grow and contribute towards organizational
excellence.
KCP Vision
KCP’s vision is to achieve organizational excellence through innovation.
KCP Quality policy
Committed to the manufacture of heavy engineering equipment for various
industries as per mutually accepted requirements of our customers.
Our commitment towards total quality management is to forge the human
resources of our organization into a team that promotes continual improvement in
quality of products and services.KCP, a pioneer in producing premier cement is
committed to maximize customer satisfaction and keep a clean and safe
environment.We are certified for ISO 9001 and ISO 9002 standards in our
engineering and cement production units respectively.
22
KCP GROUPS
Fives cail-KCP Limited
KCP Technologies limited
KCP Biotech limited
KCP Vietnam industries limited
KCP cements
KCP Heavy Engineering Unit
DEPARTMENTS IN KCP LIMITED
Human Resource
Marketing
Finance
Civil
Production planning & control (PPC)
Industrial Engineering Department(IED)
Design
Information Technology
Purchase or procurement
Stores
Machine shop
Foundry
Fabrication
Mechanical & electrical maintenance
Quality
KCP Cement Divison, setup at Macherla, Andhra Pradesh with a state-of-the-art cements manufacturing plant. India’s first dry process kiln was installed at Macherla by HUMBOLD AG, Germany in 1958(while still a prototype in Europe).
23
KCP Cement Division has a State-of-the-art Cement manufacturing plant at Macherla, Andhra Pradesh, South India. Strong emphasis on new technology characterizes all operations at KCP’s Macherla plant. India’s 1st dry process kiln was installed here in 1958 by HUMBOLDT, Germany even while it was still a prototype in Europe.
In 1962 KCP installed a second wet process kiln in collaboration with FIVES LILLIE CAIL, France.
Today, KCP’s 100% modernized cement plant with a World Bank funded outlay of Rs.367 million incorporates the latest technology such as the energy-efficient dry process, with a two support kiln and a five stage pre-heater with flash calciner. KCP also incorporates a sophisticated centralized process control system with hardware and software from SIEMENS, Germany.
Commissioned: 1958
Capacity: 450,000 tpa (tons per annum)
Employees: 775
Products: KCP Grade 53 Portland, Cement
Achievements: ISO 9002 since 1994
Significant Customer:
Nagarjuna Sagar Dam built with 1.34 million metric tons of KCP Cement
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Strengths:
Power generated from KCPL's thermal, hydel and wind power plants is used in the
engineering and cement plants, thereby saving energy costs.
Weaknesses:
Caught in a legal hassle related to wheeling charges and excess on captive power
generated
Opportunities:
Boom in core infrastructure sector, leading to a demand for heavy machinery. Fall
in prices of raw materials could bring down manufacturing costs, currently at
24.58% of the total costs.
Threats:
Insufficient rains could hamper production of hydel power. They could also affect
agricultural produce which is a raw material for the biotech division. Appreciation
of the Indian Rupee might lead to a loss in export revenue. Rising prices of
limestone and fly-ash may put an upward pressure on the manufacturing costs of
cement.
25
GROUP OF KCP COMPANIES
CEMENT INDUSTRY OVERVIEW:
The Company operates a plant of 5, 00,000 tones annual capacity at
Macherla in Guntur District of Andhra Pradesh. During the year under report, the
Company marketed cement in Andhra Pradesh, Pondicherry and parts of Tamil
Nadu. The Company’s prospects were in tune with the realization in Andhra
Pradesh since 90% of the production was marketed in Andhra Pradesh.
State of the Industry:
The entire country is witnessing increase in demand. Demand outstripped
supplies in the entire country, as also in Andhra Pradesh. The Company’s
production capacity is 4% of the total production capacity available in the State.
Outlook:
The company produced predominantly Portland cement in the current year.
Demand for Cement increased substantially during the year. Hence prices are
expected to firm up and rule at higher levels as compared to previous year all
through the Country. The Company has installed and commissioned in April 2007,
a Waste Heat Recovery System, at a cost of Rs.1150 lakhs, which is expected to
26
generate 1.75 MW electricity. In furtherance of clean environment, a clinker silo
has been built at a cost of Rs.1000 lakhs during the financial year 2006-07.
POWER
Overview:
The Company has five mini-hydel units aggregating to 8.25 MW capacities
on the Guntur Branch Canal of the Nagarjuna Sagar Dam. This being an irrigation
canal, water is expected to be available for seven to eight months of the year.
Electricity generated in these units is wheeled to the Company’s Cement Unit for
use. Generation in excess of the consumption at the cement unit is banked on a
monthly basis and is to be used within twelve months of generation. Electricity
unused even after twelve months is sold to the Grid. Electricity used in the cement
factory will be deducted from the monthly bills and will get a relief at the H.T
rates, while electricity sold to grid will be paid for at the prevalent purchase price
as determined by APERC.
Risks:
Except one scheme all the other four are operating at FULL capacity due to
good inflow of water. Further, water flow in the canal is unpredictable which is
entirely dependant on inflow of water to Nagarjuna Sagar dam. Normal monsoon
during the season improved storage in Nagarjuna Sagar Dam. Consequently,
during the year under report, adequate flow of water was available in the Canal.
Generation was normal.
27
ENGINEERING
The Company operates a versatile engineering facility that is capable of
manufacturing heavy mechanical equipment to a given design for various
industries. The Unit has an integrated facility comprising of foundry, heavy
fabrication and machine shop facilities. The Arakonam facility was effectively
used to augment production of foundry products and fabrication. Due to good
demand in the Cement, Sugar and Infrastructure sectors, the operation of the
Engineering Unit at Tiruvottiyur was substantially better than the previous year in
terms of turnover and profits.
Overview:
Status of capital goods sector:
During the year capital goods industry has done well in both domestic and export
markets.
Opportunities:
Widening of the product range has also widened the customer base. This is
leading to better value addition.
Risks:
Product mix is the deciding factor affecting the performance of this segment.
Consequently, this segment results are open to variations in profits depending on
the Order profile.
Outlook:
With the orders on hand of about Rs. 120 Crores and the existing product-
mix, performance during fiscal 2007-2008 is expected to yield similar results as
that of the year under report. The modernization programmed being implemented
28
at a cost of Rs. 2200 lakhs will enable the Company to increase productivity and to
compete in higher value added segment.
CORPORATE INVESTMENTS
Fives Cail K.C.P. Limited:
Operations during the year ended 31.03.2007 were better than the previous
year. New domestic orders fructified on revival of sugar industry. The company
returned profits in the current year and was able to wipe out accumulated losses.
Outlook for the ensuing year is optimistic. The Company has declared an interim
dividend of 225% for the year ended 31.3.2007.
KCP Vietnam Industries Limited:
KCP Vietnam Industries Limited concluded the season with a crush of 2,
93,671 tones and a recovery of 8.92%. Realization in 2006 was higher than that of
the previous year, due to shortage of sugar in Vietnam. For the year ended 31-12-
2006, the Company earned a profit of Rs. 507 lakhs. After wiping out the entire
accumulated losses, a profit of Rs. 110 lakhs is carried to Balance Sheet. Dong
Xuan Factory crushed 12757 tones of cane and the syrup was taken into production
process at the Phu yen factory.
K.C.P. Biotech Limited:
During the year under report, paprica (chilli) color extract was exported to
USA, Quality of the products has been acceptable to the international buyers.
29
Natural color market demand being vast, growth potential offered by this business
is impressive. However, production process is under stabilization and the company
is focusing to get quality manpower to improve the efficiency of the Plant. Efforts
are on to improve yields, which is essential to make this business segment
profitable. For the year under report this unit posted a loss of Rs. 225.74 lakhs.
Investment in Sugar:
Prospects of the parent Company’s investment in Vietnam improved
substantially, with the excellent demand for the sugar in Vietnam and this trend is
likely to continue for the coming year also. During the year under review this
Company posted profits.
Investment in Bio-Technology:
Natural color extraction facility fully operational during the year. Further,
production process is yet to stabilize. While there is a good demand for the
products, and quality has been established to international requirements, returns
depend upon appropriate manufacturing process.
KCP Cement:
The KCP Group of Companies had its beginning in the year 1941. It started with a
single co-operative sugar factory in the state of Andhra Pradesh in South India with
a simple philosophy Modernise Indigenous..Never compromise on Technology ´ .
These were the words of our founder Shri V. Ramakrishna who had stepped down
at the age of 51 in those pre-independence turbulent days (before 1947) to take up
this challenge.
30
Since then The KCP Group has diversified into Cement and Heavy Engineering.
The KCP Cement Division went operational in 1958 and was India's first dry
process kiln.The KCP Heavy Engineering Division was established in 1955 as a
sprawling High Technology Complex in the suburb of Chennai. This complex is
one of the largest and highly integrated centers with Casting, Fabrication and
Machining facilities required in the manufacture of large infrastructure machinery
for core Industries like Sugar, Cement, Steel and Power
2007 KCP Biotech Limited got merged with the KCP Limited.2006 Wind Power generating Unit setup at Uthumalai village in Tirunelveli Dt of
Tamil Nadu.2002 KCP Biotech Limited setup at Biotech Park, Shameerpet, Hyderabad to
manufacture biotech related products.2001 KCP Heavy Engineering Plant II setup at Arakonam near Chennai, to
execute medium to large sized fabrication projects.1999 KCP Hydel Power Division setup at Nekkarikallu, Andhra Pradesh on the
Guntur Canal of Krishna river to generate 8 MW of power.1999 KCP Vietnam Industries Limited, a fully owned subsidiary of the KCP
Limited setup to manufacture sugar at Thua Thien Hue Province at Central Vietnam. This 2500 TCD plant was shifted to Son Hoa District, Phuyen Province in 2001.
1999 KCP Technologies Limited setup to provide high quality IT Solutions & Engineering Technical Services.
1995 FCB-KCP Limited, (now Fives Cail-KCP) setup as a joint venture with Fives Cail Group of France for the design and manufacture of Sugar Plants.
1995 KCP Sugar Manufacturing Division demerger into a separate company, KCP Sugar & Industries Limited.
1984 Fuller KCP Limited, a joint venture with Fuller International Inc, USA was launched, for the design and manufacture of large-sized cement plants and other mineral processing equipment. KCP divested its stake to FL Smidth, Denmark in 1996.
1967 EIMCO-KCP Limited, started as a joint venture between The KCP Limited and EIMCO Corporatation, USA. Currently a 100% subsidiary of KCP Sugar & Industries Limited.
31
1958 KCP Cement Division, setup at Macherla, Andhra Pradesh with a state-of-the-art cement manufacturing plant. India's first dry process kiln was installed at Macherla by HUMBOLDT AG, Germany in 1958 (while still a prototype in Europe).
1955 KCP Heavy Engineering Division Plant I, setup at Tiruvottiyur, Chennai consisting of an integrated manufacturing facility, which caters to a wide range of heavy mechanical equipment and sub-systems for core sector industries.
1941 An 800 TCD Sugar Plant was setup at Vuyyuru, Andhra Pradesh, India by Sri. V. Ramakrishna, Founder Chairman of KCP.
Location of plant:
The first mini plant is located at Macherla, Guntur district, located within 35
km from the Guntur. Location of the plant at Macherla village has the following
advantages.
Cheap availability of the required land.
Abundant water resources.
Proximity of market.
Availability of financial subsidiary.
Plant is near to headquarter.
Well-connected road transport.
Availability of labour.
Salient features of KCP CEMENT
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High strength and great durability.
A very susceptible saving cost up to 20 - 25% due to low setting
Time.
Superiority quality of cement resulting in a better over all finish.
Stronger bonding with aggregates.
33
KCP CEMENT industries limited - quality policy:
To provide customer satisfaction through “Total Quality”.
Develop a strong quality culture at all skill top stay in the front
line.
Continues upgrade technology and skill top stay in the front line.
Strive to maintain the environment clear.
Objectives of the company:
The customer satisfaction should me attained by maintaining good
quality.
Types of products produced:
Ordinary Portland Cement: 53 grade
SRC
IRS T-40 Super grade
Portland Pozzolona Cement
Portland Slag Cement
34
KCP CEMENTS Network :
Dealers
The network of our dealers has been ensuring the fast and easy reach with
speedy feedback. The wide network of our dealers even more ensures that not even
a single remote area is left. Further, we take pleasure to appreciate our most
trusted dealers who are helping us to utilize the full capacity of our plants.
Community Care
We our self and our business are part of the society we do believe in caring
the community. As its efforts, KCP Cements Limited is actively taking part in
developing the community that needs a helping hand. Let it be laying the good
roads or erecting a building for educational purpose, KCP Cements Limited was
there to support the efforts. From local voluntary organizations to nationwide relief
fund organizations, the company has contributed to its level best.
HEALTH, SAFETY, ENVIRONMENT AND SOCIAL RESPONSIBILITY
KCP CEMENTS LIMITED shall strive to provide a safe and healthy
working environment and comply with all regulations regarding the preservation of
the environment in and around its manufacturing facilities and other points of
operations. The companies is committed to efficient use of natural resources and
minimize any hazardous impact of the development, production, use and disposal
of any of its products and services on the ecological environment.
35
CONFIDENTIALITY
The Directors and the Senior Management Team shall maintain utmost
confidentiality of information or that of any customer, supplier or business
associates of the company to which company has a duty to maintain confidentiality
except when disclosure is authorized. The use of confidential information for his
own advantage or profit is also prohibited.
COMPLIANCES
The Directors and the Senior Management Team shall comply with all
applicable laws, rules and regulations. Transactions relating to sale or purchase of
company's equity shares should not be undertaken without complying with the
formalities contained in the company's code of internal procedures and conduct for
prevention of insider trading. If any Director or Member of the Senior
Management Team who knows of or suspects of any violation of applicable laws,
rules or regulations or this Code of Conduct, he must immediately report the same
to the Board of Directors or any designated person thereof. Such person should as
far as possible provide the details of suspected violations with all known
particulars relating to the issue. The company recognizes that resolving such
problems or concerns will advance the overall interests of the company that will
help to safeguard the company’s assets, financial integrity and reputation.
36
REVIEW OF LITERATURE:
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”
“Marketing is the performance of business activities that direct the follow of
goods and services from the producer to the consumer or user”
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.
Dealer Satisfaction begins with the following specific assumptions about
company’s relationship with the customers.
1. The dealer service activities focus mainly on existing dealers.
2. Some dealers are more important than others
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3. They are the assets.
4. The dealer is always specific.
The dealer needs and value should influence every aspect of the organization
strategy, employee safety and performance, product and organization strategy,
employee safety and performance, product and service development, sales and
marketing programs, operational procedures and information and measurement
system.
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 me”. 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.
Marketing is a communication process that has the purpose of individuals
or groups - that are directly or indirectly able to purchase - aware of products and
services that may satisfy their existing or newly-identified needs and wants.
38
The Chartered Institute of Marketing, which is the world's largest marketing
body, defines marketing as "The management process responsible for
identifying, anticipating and satisfying customer requirements profitably."
Dealer
Any person who carries on business in purchasing, selling, supplying or
distributing goods and also includes works contractor, company, Co-operative
Society, Broker, Commission Agent, Auctioneer or any other mercantile Agent for
the consideration of cash, commission and deferred payment.
There are two types of dealer such as:
1) Registered dealer.
2) Casual dealer
Wholesaler
A wholesaler buys goods in large quantities from their manufacturers or
importers, and then sells smaller quantities to retailers, who in turn sell to the
general public.
Retailer
A retailer buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells individual items or
small quantities to the general public or end user customers, usually in a shop, also
called store. Retailers are at the end of the supply chain.
39
Brand
A brand is a name or trademark connected with a product or producer.
Brands have become increasingly important components of culture and the
economy, now being described as "cultural accessories and personal philosophies
Brand identity
A product identity, or brand image are typically the attributes one associates
with a brand, how the brand owner wants the consumer to perceive the brand - and
by extension the branded company, organization, product or service. The brand
owner will seek to bridge the gap between the brand image and the brand identity.
Effective brand names build a connection between the brand personalities as it is
perceived by the target audience and the actual product/service. The brand name
should be conceptually on target with the product/service (what the company
stands for). Furthermore, the brand name should be on target with the brand
demographic. Typically, sustainable brand names are easy to remember, transcend
trends and have positive connotations. Brand identity is fundamental to consumer
recognition and symbolizes the brand's differentiation from competitors.
Brand identity is what the owner wants to communicate to its potential consumers.
However, over time, a products brand identity may acquire (evolve), gaining new
attributes from consumer perspective but not necessarily from the marketing
communications an owner percolates to targeted consumers. Therefore, brand
associations become handy to check the consumer's perception of the brand.
Brand Image
Brand Image is not something you have or you don't! A brand is unlikely to
have one brand image, but several, though one or two may predominate. The key
40
in brand image research is to identify or develop the most powerful images and
reinforce them through subsequent brand communications. The term "brand
image" gained popularity as evidence began to grow that the feelings and images
associated with a brand were powerful purchase influencers, though brand
recognition, recall and brand identity. It is based on the proposition that consumers
buy not only a product (commodity), but also the image associations of the
product, such as power, wealth, sophistication, and most importantly identification
and association with other users of the brand. In a consumer led world, people tend
to define themselves and their Jungian "persona" by their possessions. According
to Sigmund Freud, the ego and superego control to a large extent the image and
personality that people would like others to have of them.
Good brand images are instantly evoked, are positive, and are almost always
unique among competitive brands.
Brand image can be reinforced by brand communications such as packaging,
advertising, promotion, customer service, word-of-mouth and other aspects of the
brand experience.
Brand images are usually evoked by asking consumers the first words/images that
come to their mind when a certain brand is mentioned (sometimes called "top of
mind"). When responses are highly variable, non-forthcoming, or refer to non-
image attributes such as cost, it is an indicator of a weak brand image.
41
INTRODUCTION:
Definition
Individual or firm that buys goods from a producer or distributor for
wholesale and/or retail reselling. Unlike a distributor, a dealer is a principal and not
an agent.
The dealer came in to existence when communications were difficult with
consumers and it is found necessary to have a point of distribution. The dealers
help the manufactures by formulating the policy of manufacturers according to the
demand and assist them in securing the markets for their goods. The dealers are
also relieving the manufactures from the necessity of having sales organizations.
The manufactures are not put to the task of collecting and securing orders and the
numbers of accounts they have to open are smaller compared to dealing directly
with the consumer.
Dealer generally enters in to forward contracts for supply of goods with the
results the manufactures do not accumulate heavy stocks. The dealers are being
close touch with consumers so they are in position to advice the manufacturer by
giving proper feedback about the customer’s requirements. The dealer occupies a
very important specialized position. He not only assist to the manufacture that also
acts as the link in the chain of distribution between the manufacturer and
consumers for which purpose the dealer maintain efficient and comprehensive
organization. The dealer can asses the public demand and see that marketable
goods or manufacturer thus protecting the manufacture from wasteful and
indiscriminate production as well as the consumer against goods which are neither
satisfaction nor dissatisfaction of good value.
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DEALER’S RELATION:
Large manufacturers depends on dealer to sell their products, therefore good
relations are most important to them , every manufactures thus wants to motivate
his distribution channel to sell more of his own products. Here the manufacturer
must realize that dealers are themselves business men and must be viewed as
customers and human beings rather than mechanical entities for flow of his
products
The dealer interested in maximizing their profits thus good dealer
relations can be promoted if the manner is fair to his dealers in his behavior for
example- salesmen of some manufactures dump products on dealers through
aggressive selling. Thereafter, the dealer finds stocks are laying at heavy on his
hands and he cannot sell those products by adequately. Advertising products in the
area concern the manufacturer should provide his dealers with promotional
literature; he should correspond them as frequently as necessary to show that the
manufacturer is there to help the dealers to sell all and thus makes profit for them.
He may offer adequate trade discount, provided display facilitate and even arrange
contests among the dealers to motivate them towards better results. The
manufacture should realize that the company dealers are more important assets. If
they are assisted with promotional help. They will appreciate effort and would be
more in demand to support the company campaigns in advertising.
DEALER SATISFACTION
Satisfaction in level of persons felt state resulting from company’s products
perceives performance in relational to the person’s expectations. Satisfaction is a
function of the difference between the perceived performance and expectations.
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Company seeks to win in today’s market. The must track their declares
expectations, perceive company performance and dealers satisfaction.
While assessing the satisfaction level a company must not conclude that it
can get full picture of dealer satisfaction and dissatisfaction by simply running
complaints and suggestions. As some times dealers may feel that their complaints
are minor or that they will be made to feel stupid , or that normally will be offered
the results is that the company has need Lesley lost dealers.
Therefore companies instead of using complaints level as measure of dealer’s
satisfaction, obtaining a direct measure of dealer satisfaction of conducting
periodic survey would provide more appropriate measures. The questionnaire can
be made to a random sample of their recent customers.
To find out how they fell about various aspects of the company’s performance.
They can also solicit dealers view on the competitor’s performance.
The respondents can be asked to list out problems they have, had with the
offer and to list out improvements they could suggest companies would also ask
the respondents to rate various elements of the offer in terms of the importance of
each element and how well the company has performed
Exclusive dealers needed to bring dealers satisfaction. Many dealers like to
develop exclusive channels for their products. The strategy in which the producer
allows only certain concepts to carry its products is called exclusive design when
the producer requires that these dealers should not handle expeditor products its
strategy is called exclusive dealing, both parties benefits from exclusive
arrangements.
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1. Experience in dealership:
a) 1-3 Years b) 4-7 Years c) 8-10 Years d) Above 10 Years
TABLE:
S.No Criteria No. of respondents % of respondents1. 1-3 years 06 7%
2. 4-7 years 20 25%
3. 8-10 years 38 47%
4. Above 10 years 16 20%
Total 80 100
GRAPH:
INTERPRETATION:
Of about 80 dealers 20% are having above ten years experience and 47% are
in the business of about 8-10 years. The other 25% have 4-7 years of experience
and the rest 7% of the dealers have 1-3 years experience.
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2. How long you are dealing with KCP CEMENT?
a) 1-3 Years b) 4-7 Years c) 8-10 Years d) Above 10 Years
TABLE:
S.No Criteria No. of respondents % of respondents
1. 1-3 years 15 19%2. 4-7 years 15 19%3. 8-10 years 22 26%4. Above 10 years 28 36%
Total 80 100
GRAPH:
INTERPRETATION:
This table shows the experience of the dealers in dealing with KCP cements. Most
of the dealers, who have experience in their dealership, have the experience in
dealing with KCP cements. 36% of the dealers have KCP cements dealership for
above ten years. 8-10 years experienced dealers are up to 26% and 19% have 4-7
years experienced and the rest 19% have up to 3 years experience
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3. What do you feel about Quality of KCP CEMENT?
a) Very good b) Good c) Satisfactory d) poor
TABLE:
S.No Criteria No. of respondents % of respondents
1. Very good 27 34%
2. Good 32 40%
3. Satisfactory 19 24%
4. Poor 02 02%
Total 80 100
GRAPH:
INTERPRETATION:
About 34% of the dealers rated very good toward the quality of KCP cements,40%
of dealers rated good,24% of dealers rated satisfied and remaining 02% rated poor
toward quality of KCP cements.
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4. Which factors enable you to be the dealer of KCP CEMENT?
a) Promotional scheme b) Quality c) Company Policy d) Margin e) Demand
TABLE:
S.No Criteria No. of respondents % of respondents1. Promotions 06 8%
2. Quality 20 25%
3. Company Policy 12 15%
4. Margin 04 04%
5. Demand 38 48%
Total 80 100
GRAPH:
INTERPRETATION:
About 48% of the dealers are dealing with KCP cements for its demand, 25% for quality, 15% for company policy, 8% of dealers are dealing for promotional activities and remaining 4% are dealing by seeing Margin
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5. What do you feel about Credit Period given by KCP CEMENT?
a) Very good b) Good c) Satisfactory d) poor
TABLE:
S.No Criteria No. of respondents % of respondents
1. Very good 02 02%
2. Good 19 24%
3. Satisfactory 27 34%
4. Poor 32 40%
Total 80 100
GRAPH:
INTERPRETATION:
About 02% of the dealers rated very good toward the Credit period of KCP
cements,24% of dealers rated good,34% of dealers rated satisfied and remaining
40% rated poor toward Credit period of KCP cements.
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6. What do you think about promotional activities given by KCP CEMENTS?
a) Very good b) Good c) Satisfactory d) poor
TABLE:
S.No Promotional Activities
No. of respondents % of respondents
1. Very good 05 06%
2. Good 25 31%
3. Satisfactory 31 39%
4. Poor 19 24%
Total 80 100
GRAPH:
INTERPRETATION:
The promotion activities carried out by KCP cements is found to be satisfactory.
About 39% of the dealers satisfied and 31% of the dealers found are good. 24%
dealers are Poor and the rest 06% of the dealers are reporting Very good. The
promotion activities are can be still improved according their opinion.
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7. What do you feel about the Price of KCP CEMENT?
a) Very High b) High c) Average d) Low
TABLE:
S.No Criteria No. of respondents % of respondents
1. Very High 32 40%
2. High 27 34%
3. Average 19 24%
4. Low 02 02%
Total 80 100
GRAPH:
INTERPRETATION:
About 40% of the dealers rated Very high toward the price of KCP cements, 34%
of dealers rated High price, 19% of dealers rated Average and remaining 02% rated
Low toward quality of KCP cements.
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8. What type of promotional activity do you prefer with KCP CEMENT? a) Discount b) Gift c) Prize d) Offers
TABLE:
S.No Promotions No. of respondents % of respondents
1. Discounts 34 43%
2. Gifts 16 20%
3. Prizes 21 26%
4. Offers 09 11%
Total 80 100
GRAPH:
INTERPRETATION:
Most of the dealers are influenced by the discount offering to them. Hence the 43%
of the dealers are influenced by Discounts, 26% are influenced by Prizes, 20% are
influenced by Gifts, and 11% are influenced by Offers provided by KCP cements.
52
9. Whether the expected quantity of KCP CEMENT is supplied to you In time?
a) Yes b) No
TABLE:
S.No Criteria No. of respondents % of respondents
1. YES 54 68%
2. NO 26 32%
Total 80 100
GRAPH:
INTERPRETATION:
Of about 80 dealers, 68% of dealers are satisfied with the supply of KCP
cements with in time and remaining 32% are dissatisfied.
53
10. Are you dealing with any other cement?
a) Yes b) No
TABLE:
S.No Criteria No. of respondents % of respondents
1. YES 62 77%
2. NO 18 23%
Total 80 100
GRAPH:
INTERPRETATION:
About 77% of the dealers are dealing with other companies and 23% deal
only KCP cements.
54
11. What are the factors that you expect from KCP CEMENT?
a) Promotional scheme b) Sales follow up c) Service d) Credit facilities
TABLE:
S.No Criteria No. of respondents % of respondents1. Promotional
schemes29 36%
2. Sales follow up 12 15%
3. Service 16 20%
4. Credit facilities 23 29%
Total 80 100
GRAPH:
INTERPRETATION:
Most of the dealers want the support of promotional activities, about 36% of
dealers want the support of promotional activities, 29% of dealers wants the
support of credit facilities, 20% of dealers wants the support of Service, and
remaining 15% of dealers wants the support of sales follows.
55
12. Do you recommend your customer about KCP CEMENTS? a) Yes b) No
TABLE:
S.No Criteria No. of respondents % of respondents
1. YES 76 95%
2. NO 04 05%
Total 80 100
GRAPH:
INTERPRETATION:
About 95% of dealers recommend to their customers about KCP cements
and remaining 5% of dealers do not recommend KCP cements to their customers.
56
13. Do you have any complaints about KCP CEMENTS?
a) Yes b) No
TABLE:
S.No Criteria No. of respondents % of respondents
1. YES 23 29%
2. NO 57 71%
Total 80 100
GRAPH:
INTERPRETATION:
About 71% of dealers are not having any complaints with KCP cements and
remaining 29% or dealers are having some complaints with KCP cements
57
14. How do you feel about the KCP Cement transportation?
a) Highly Satisfied b) Satisfied c) Moderate d) Dissatisfied
TABLE:
S.No Criteria No. of respondents % of respondents1. Highly Satisfied 32 40%
2. Satisfied 27 34%
3. Moderate 19 24%
4. Dissatisfied 02 02%
Total 80 100
GRAPH:
INTERPRETATION:
About 40% of the dealers are Highly Satisfied toward the Transportation of KCP
cements, 34% of dealers are satisfied, 19% of dealers are Moderate and remaining
02% are dissatisfied towards Transportation of KCP cements
58
15. What do you feel about after sales service given by KCP Cement?
a) Highly Satisfied b) Satisfied c) Moderate d) Dissatisfied
TABLE:
S.No Criteria No. of respondents % of respondents1. Highly Satisfied 19 24%
2. Satisfied 36 42%
3. Moderate 21 28%
4. Dissatisfied 04 06%
Total 80 100
GRAPH:
INTERPRETATION:
About 42% of the dealers are satisfied toward the after sales service of KCP
cements, 24% of dealers are highly satisfied, 21% of dealers are Moderate and
remaining 06% are dissatisfied towards after sales service of KCP cements.
59
16. Do you have any suggestions to improve the packing, promotional
Activities, Quality, price of KCP CEMENTS?
a) Yes b) No
TABLE:
S.No Criteria No. of respondents % of respondents
1. YES 36 45%
2. NO 44 55%
Total 80 100
GRAPH:
INTERPRETATION:
About 45% of the dealers have suggestions to improve their packing. Their
suggestions are wider about promotional activities, gifts, special offers, in time
delivery of cement bags. The rest 55% of the dealers are satisfied with what they
are offering in KCP cements.
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Findings:
Most of the dealers have 8-10 years of experience in dealership among that
they are dealing with KCP cements Above 10 years.
Most of the dealers’ rated that the Quality of KCP cement is very good
The major promotional factor which influenced the dealers to choose KCP
cements is Discounts.
Most of the dealers also deal with other brands to satisfy the need of various
customers.
According to dealers outdoor advertisement and electronic media are
consider to be more effective to promote KCP cements.
The major supports required to dealers are Promotional schemes and service
from the company.
Overall 85% of the dealers rated KCP cements as Good.
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Suggestions:
Dealers should be encouraged through arranging special meetings.
Most of the dealers suggested for non-sticky cement packing.
Promotional activities should be improved like discounts, gifts, prizes etc.
As media impact is more, so company should go for more advertisements in
mass media and out door advertisements to promote their brand.
In time delivery (service) should be improved.
Improve awarding the dealers who make the highest turnover yearly
Regular feedback should be improved.
Most of the dealers report price is below the satisfactory level for the
product.
The company should have the credit period given to each dealer, because
most dealers are well satisfied with good credit period.
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CONCLUSIONS
KCP CEMENTS is one of the fast moving brands in Andhra Pradesh. The
company is holding a good market share which is the result of efforts made by the
company management and the executives.
From the market survey we can conclude that:
Supply and quality factors are fetching to the movement of brand.
The company is having a good dealer network and it is maintaining
good relations with them i.e., the service rate of the company is good.
The price of KCP cement is matching with the quality of the cement
With the ideal promotional strategies and increasing the satisfactory
level of the dealers the company can glow and become a market
leader in the future.
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DEALAR’S SATISFACTION QUESTIONNAIRS
1. Name:
2. Address:
3. Experience in dealership: (a) 1-3 years (b) 4-7 years
(c) 8-10 years (d) above 10 years
4. How long you are dealing with KCP Cement?
(a) 1-3 years (b) 4-7 years
(c) 8-10 years (d) above 10 years
5. What do you feel about Quality of KCP Cement?
(a) Very Good (b) Good
(c) Satisfactory (d) Poor
6. Which factor enables you to be the dealer of KCP Cement?
(a) Promotional Scheme (b) Quality
(c) Company Policy (d) Margin
7. What do you feel about credit period given by KCP Cement?
(a) Very Good (b) Good
(c) Satisfactory (d) Poor
8. What do you think about Promotion Activities given by KCP Cement?
64
(a) Very Good (b) Good
(c) Satisfactory (d) Poor
9. What do you feel about the Price of KCP Cement?
(a) Very High (b) High
(c) Average (d) Low
10. What type of promotional activity do you prefer with KCP Cement?
(a) Discount (b) Gift
(c) Prize (d) Offers
11. Whether the expected quantity of KCP Cement is supplied to you in time?
(a) Yes (b) No
12. Are you dealing with other companies?
(a) Yes (b) No
If Yes, specify
___________________________________________
13. What are the factors that you expect from KCP Cement?
(a) Promotional Schem (b) Sales follow-up
(c) Service (d) Credit Facility
14. Do you have any complaints about KCP Cement?
(a) Yes (b) No
If Yes, specify the reason,
15. Do you recommend your customers about KCP Cement?
(a) Yes (b) No
If Yes/No, specify the reason,
65
16. Do you have any suggestions to improve the quality of KCP Cement?
(a) Yes (b) No
If Yes, specify,
___________________________________________
17. What do you feel about after sales service given by KCP Cement?
(a) Highly Satisfied (b) Satisfied
(c) Moderate (d) Dissatisfied
18. How do you feel about KCP Cement transportation?
(a) Highly Satisfied (b) Satisfied
(c) Moderate (d) Dissatisfied
19. What is overall rating you give to KCP cements?
(a) Very Good (b) Good
(c) Satisfactory (d) Poor
20. Comparative to KCP which brand is better in promotional activity?
(a) Sager priya cement (b) Raasi cement
(c) Parashakthi cement (d) Kakathiya
(e) None
21. Which of the following media advertising are considered to be more effective?
(a) Print media (b) Electronic media
(c) Radio (d) out door advertisement
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BIBLIOGRAPHY
Book Name Author Publisher
Marketing management Philip kotler Tata McGraw Hill
Marketing research C.R. Kothari Pearson Education
Principles of Marketing V.S.RamaSwamy Prentice Hall India
Marketing management Rajan Saxena Prentice Hall India
Websites
- www.kcp cement.co.in
- www.encyclopedia.com
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