94
UNIT-I INTRODUCTION

market potential of acc2

  • Upload
    2562923

  • View
    2.780

  • Download
    0

Embed Size (px)

Citation preview

Page 1: market potential of acc2

UNIT-IINTRODUCTION

Page 2: market potential of acc2

PREFACE

The topic chosen by me for my project is marketing strategy in reference to ACC CEMENTS especially in the cement industry. At present Acc cement is market leader in the Indian market.

Today there are various companies coming in Indian and these certainly will exist a cutthroat competition in these field . I have chosen a Acc as a topic essence of my project ..

A normal customer is quit puzzled and faces for an uneven some time huge problems in deciding which vehicle to buy. I realized the problem and decide to take these up as the challenge and provide answer to as the requirement of the Acc cements.

SCOPE OF THE STUDY

This study includes direct interaction with the customers and this helps us to know the ‘ Market

potential and customer satisfaction level ‘to great accuracy. This study is of great importance

to the company which will know about the customer preference to buy a particular brand.

The company will gain information about customer’s preference depending on the following

factors:-

1. Price factor

2. fineness of the cement

3. setting time

4. attractive packaging

5. brand image—one of the important factor

6. quick delivery time

7. wide availability

Page 3: market potential of acc2

So , scope of this study is to achieve customer satisfaction because customer

satisfaction and quality maintenance is company’s primary objective…

OBJECTIVE OF THE STUDY

Main objective:- The main objective of this study is to find out the MARKET POTENTIAL

AND CUSTOMER SATISFACTION LEVEL through scientific tools like interviews and

questionnaire .

Specific objectives:- The specific objectives will be met by finding the customer

satisfaction level through direct interaction with the customer and by knowing their preference.

This will include all the processes like asking questions from the customers through

questionnaire which will be included in the primary survey . once the primary survey is done ,

secondary survey will be done . The path of the secondary survey will be decided depending on

the conclusions coming out of the primary survey.

≈} To know the customers expectations towards Acc cements

≈} to find out the customer opinion regarding Various aspect of the cements.

≈} To give the appropriate suggestion to the company regarding he performances.

Page 4: market potential of acc2

RESEARCH METHODOLOGY

Data collection method—

I have selected around 50 persons for the the interview.

I have taken help of the questionnaire , personal and

Telephonic interview.

I have collected the data through focus interviews. I have concentrated on taking

interview mainly from the following group of people.

1. Masons—20%

2. Architects/ engineers--- 10%

3. Retail stockiest---- 2

4. Wholesale---- 10%

5. Industrial bulk consumer—10%

6. General consumer---- 30%

The survey was descriptive and sample chosen was mainly on the judgement of the

researcher with the help and proper consultation of project guide..

In this kind of sampling method , the population elements are based on the judgement of

the researcher. The researcher exercises judgement or expertise , chooses the elements to be

included in the sample , because he or she believes that they are represntative of the population

of intrest or are otherwise appropriate.

Page 5: market potential of acc2

In this survey , I visited the dealers of cement also to know the strategy of the

companies , especially Acc cements to satisfy the customer as they buy the cement of any

particular company….

The main purpose of the descriptive research is description of the state of affairs as they exist at

present.

LIMITATIONS OF THE STUDY

This survey was conducted partially in Mancherial, northern part of India and some

parts of Adilabad. So market potential of the ACC cement in other parts of the

country couldn’t be determined.

Some customers were not able to understand some of the questions.

The sample size was not enough and it failed to give the clear picture or the results of

the survey.(Sample size =50 )

Some customers or dealers did not cooperated well.

The questionnaire did not cover the whole aspect of the market potential of ACC

cements limited.

Page 6: market potential of acc2

Unit-II

MARKETING STRATEGIES OF ACC CEMENTS

Page 7: market potential of acc2

MARKETING STRATEGY OF ACC CEMENTS LIMITED

1. SEGMENTATION:-

The company has segmented the market geographically . it sells its products all

over India with major presence in northern region

2. PRICING STRATEGY

Before deciding the price of the cement company has considered the following points:--

Cost factor:-

Manufacturing cost

Transporting cost

Storing and material handling

Other cost

Officer expenses

Other expenses

Tax and interest

Competitor’s price and offering

Page 8: market potential of acc2

MARKETING STARTEGY

Company conducts market surveys to identify market trends and customer’s response,

company position in the market etc. There is R and D department which continuously trying to

improve the quality of the product at the minimum cost and trying to meet the demand of the

customer.

MARKETRING STRATEGY FOR COMPETITORS

Company always keeps an eye over its competitors activities and its offerings like

different promotional schemes, product price etc. It also takes proper action according to

competitors strategy.

DISTRIBUTION STRATEGY

The company is distributing cement by following ways:-

Direct to consumer

Depot

1.whole seller

2.retailer

Director General of sales and disposal

1. Tender sales

2. Government department

Non trading sales

1. wagon load

2. Institutional sales

Page 9: market potential of acc2

Method of developing dealers:- Company conducts the market survey also to motivate the sub dealer and

advertise the programmer. The company takes profile of the dealers and gives dealership

only to those in a particular area where the company is not having already existing dealer.

OBJECTIVES OF MARKETING STRATEGIES

1. To increase sales in high realization

2. To develop stockiest network consisting of retailer or final outlet which directly sells

3. Increasing sales of branded cement ie Acc white cements

4. Marketing distribution network more efficient and cost effective.

The company has a dedicated team of highly skilled professionals and

Experienced application engineering. They are functioning in an advisory capacity. Besides

handling their constructional problem the cell offering all kind of assistance in the selection

of the right cement for different application to ensure cost effective , durable and safe

construction.

Page 10: market potential of acc2

Key factor of marketing strategy

Positioning

Targeting

Segmentati

on

Page 11: market potential of acc2

Segmentation of acc cements: -

Geographical Segmentation

Geographic Segmentation calls for division of the market into different geographical units

such as nations, states, regions, countries, cities, or neighborhoods. In the South Asian

context, geographic segmentation assumes importance due to variations in consumer

preferences and purchase habits across different regions, across different countries, and

across different states in these countries.

Demographic Segmentation

In Demographic Segmentation, we divide the market into groups on the basis of variables

such as age, family size, family life cycle, income, occupation, education, religion, race,

generation, nationality and social class. One reason demographic variables are so popular

with marketers in that they’re often associated with consumer needs and wants. Another is

that they’re easy to measure. Even when we describe the target market in non-

demographic terms (say, by personality type), we may need the link back to demographic

characteristics in order to estimate the size of the market and the media we should use to

reach it efficiently.

Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand

consumers. In psychographic segmentation, buyers are divided into different groups on

Page 12: market potential of acc2

the basis of psychological/personality traits, lifestyle, or values. People within the same

demographic group can exhibit very different psychographic profiles. Values and lifestyles

significantly affect product and brand choice of consumers. Religion has a significant

influence on values and lifestyles. The strict norms that consumers follow with respect to

food, habits or even dress codes are representative examples in this regard.

The four groups with higher resources are:

1. Innovators: - successful, sophisticated, active, “take- charge” people with high self-

esteem. Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products

and services.

Page 13: market potential of acc2

2. Thinkers- mature, satisfied, and reflective people who are motivated by ideals and who

value order, knowledge and responsibility. They seed durability, functionality, and value in

products.

3. Achievers- successful, goal-oriented people who focus on career and family. they favor

premium products that demonstrate success to their peers

4. Experiences- Young, enthusiastic, impulsive people who seek variety and excitement.

They spend a comparatively high proportion of income on fashion, entertainment and

socializing.

The four groups with lower resources are:

1. Believers- conservative, conventional, and traditional people with concrete beliefs. They

prefer familiar products and are loyal to established brands.

2. Strivers- trendy and fun-loving people who are resource constrained. They favor stylish

products that emulate the purchases of those with greater material wealth.

3. Makers- Practical, down-to-earth, self-sufficient people who like to work with the hands.

They seek products with a practical or functional purpose.

4. Survivors- Elderly, passive people who are concerned about change. They are loyal to

their favorite brands.

Behavior Segmentation: -

In behavioral segmentation, marketers divide buyers into groups on the basis of their

knowledge of, attitude toward, use of, or response to a product.

Decision Roles:

Page 14: market potential of acc2

People play five roles in a buying decision: Initiator, Influencer, Decider, Buyer and User.

Recognition of the different buying roles and specification of the people who play these roles

for specific products and services are vital for marketers. This is especially useful for

designing the communication strategy.

Behavioral Variables:

Many marketers believe behavioral variables-occasions, benefits, user status, usage rate,

buyer readiness stage, loyalty status, and attitude-are the best starting points for constructing

market segments.

Market Targeting: -

Effective Segmentation Criteria

To be useful, market segments must rate favorably on five key criteria:

Measurable, the size, purchasing power and characteristics of the segments can be

measured.

Substantial, The segments are large and profitable enough to serve. A segment should

be the largest possible homogenous group worth going after with a tailored marketing

program. It would not pay, for example, for an automobile manufacture to develop cars

for people who are less four feet tall.

Page 15: market potential of acc2

Accessible, The segments can be effectively reached and served.

Differentiable, The segments are conceptually distinguishable and respond

differently to different marketing-mix elements and programs. If married and unmarried

women respond similarly to a sale on perfume, they do not constitute separate segments.

Actionable, Effective programs can be formulated for attracting and serving the

segments.

MARKET POTENTIAL:

Decisions related to products and services - where to offer them, how to set revenue

targets for them, how much to spend in support of them - all start with a realistic, accurate and

confident understanding of Market Potential.

“A Market Potential is an estimate of the maximum possible sales opportunities present

in a particular market segment and open to all sellers of a good or service during a stated future

period.”

A market potential indicates how much of a particular product can be sold to a particular

market segment over some future period assuming the application of appropriate marketing

methods.

Market Potential data measures the likely demand for a product or service in a county,

ZIP Code, or any other defined trade area. Businesses and other organizations use Market

Potential data to make decisions about where to offer products and services.

A Market Potential is an estimate of the maximum possible sales opportunities present in

a particular market segment and open to all sellers of goods or services during a stated future

period.

Thus, a market potential indicates how much of a particular product can be sold to a

particular market segment over some future period, assuming the application of appropriate

marketing methods.

Page 16: market potential of acc2

Sales potential:

A sales potential is an estimate of the maximum possible sales opportunities present in a

particular market segment and open to a specified company selling a good or service during a

stated future period. Thus, sales potential represents sales opportunities available to a particular

manufacturer, while market potential indicates sales opportunities available to entire industry.

With Market Potential Data One Can-

Optimize organization merchandise mix

Develop successful advertising and marketing plans

Decide which expansions are most profitable

Increasing Share of Wallet/Untapped Potential

Increasing market share requires an understanding of "Untapped Potential," which is

different than simply taking the difference between Total Potential and your current market

share.

Maximize Marketing Budgets & Efficiencies

With a realistic picture of Market Potential you can focus resources intelligently,

maintaining a presence where you're strong and investing heavily where opportunity is greatest

i.e., investing marketing budget more effectively.

Set Aggressive & Attainable Revenue Targets

The best way to establish revenue goals and sales quotas for products, territories or

stores/branches is to base them on the true consumer demand/market potential within the area.

Sales Forecast:-

A sales forecasting is an estimate of sales in physical units in a future period under a

particular marketing program and assumed set of economic and other factors outside the unit for

an entire product line. It may be for a manufacturer’s entire marketing area or for any sub-

division of it. Such forecasts are short term or operating it is important to the sales executive.

ANALYZING THE MARKET POTENTIAL

Market Identification:-

Page 17: market potential of acc2

The first step in analyzing a product’s market potential is to identify its market. Market

identification required finding out

Who buys the product?

Who use it?

Who are the prospective buyers and users?

Some companies find answer to these questions in their internal records but most of the

companies especially those that use long marketing channels, in consumer- good marketing,

Buyers, user, and prospectus are identified and classified according to such characteristics as age,

sex, income, and social class. In Industrial goods marketing, buyers, users, and prospectus are

identified and classified by size of firm, geographical location, type of industry and the like.

Market identification studies reveal the characteristics that differentiate the market segments

making up the product’s market potential. market identification studies provides, as a side result,

customer data on such factors as purchase frequency, searching time expended unit of purchase,

and seasonal buying habits. When assembled and analyzed, these data help in estimating market

potential.

Market Motivation:-

The second step in analyzing market potential is to detect the reasons why customers buy

the product and the reasons why potential customers might buy it. Market motivation studies

answer twin questions: why do people buy? & why don’t buy?

The answer helps not only in estimating market potential but assist the sales executive to

increase the effectiveness of promotional programs.

Motivation research techniques vary, but the most widely used are the projective

techniques, in which respondents projects themselves, their attitudes interests and opinions into

interpretation of special materials presented by the researcher. Analysis of results by trained

specialist lays bare what goes on in buyer’s minds, including, importantly, the real reasons for

buying or not buying the product. Most motivation studies are directed towards explaining the

buying behaviour of ultimate consumers rather than industrial users.

Information from motivation studies helps not only in estimating a product’s market

potential but also assists in deciding

Page 18: market potential of acc2

1. How best to present the product in sales talks

2. The relative effectiveness of different selling appeals

3. The relative appropriateness of various promotional methods

Analysis of Market Potential:-

Third Step is to analyze the market potential. Market potential can not be analyze directly,

so analysis make use of market factors (Market factor is a market feature or characteristics

related to the product’s demand) using market factor for analyzing market potential is a two step

process

1. Select the market factor associated with the product’s demand

2. Eliminate those market segments that do not contain prospective buyers of the product

Why Use Market Potential Data

Market Potential data helps companies to understand, predict, and influence consumer

behavior by providing insight into areas with the highest growth potential. This allows you to

make informed decisions about products and services based on the latest trends and consumer

demand.

Page 19: market potential of acc2

UNIT-IIIINTRODUCTION OF CEMENT INDUSTRY

INTRODUCTION OF THE COMPANY

Page 20: market potential of acc2

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's

operations are spread throughout the country with 14 modern cement factories, 19 Ready mix

concrete plants, 19 sales offices, and several zonal offices. It has a workforce of about 9000

persons and a countrywide distribution network of over 9,000 dealers. ACC's research and

development facility has a unique track record of innovative research, product development and

specialized consultancy services. Since its inception in 1936, the company has been a trendsetter

and important benchmark for the cement industry in respect of its production, marketing and

personnel management processes. Its commitment to environment-friendliness, its high ethical

standards in business dealings and its on-going efforts in community welfare programs have won

it acclaim as a responsible corporate citizen. ACC has made significant contributions to the

nation building process by way of quality products, services and sharing its expertise.

In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement

and concrete and a trendsetter in many areas of cement and concrete technology including

improvements in raw material utilization, process improvement, energy conservation and

development of high performance concretes.

ACC’s brand name is synonymous with cement and enjoys a high level of equity in the

Indian market. It is the only cement company that figures in the list of Consumer Super Brands

of India.

The company's various businesses are supported by a powerful, in-house research and

technology backup facility - the only one of its kind in the Indian cement industry. This ensures

not just consistency in product quality but also continuous improvements in products, processes,

and application areas.

ACC has rich experience in mining, being the largest user of limestone, and it is also one

of the principal users of coal. As the largest cement producer in India, it is one of the biggest

customers of the Indian Railways, and the foremost user of the road transport network services

for inward and outward movement of materials and products.

Page 21: market potential of acc2

ACC has also extended its services overseas to the Middle East, Africa, and South

America, where it has provided technical and managerial consultancy to a variety of consumers,

and also helps in the operation and maintenance of cement plants abroad.

ACC is among the first companies in India to include commitment to environmental

protection as one of its corporate objectives, long before pollution control laws came into

existence. The company installed pollution control equipment and high efficiency sophisticated

electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far

back as 1966. Every factory has state-of-the art pollution control equipment and devices.

ACC demonstrates the practices of being a good corporate citizen undertaking a wide range of

activities to improve the living conditions of the under-privileged classes living near its factories.

OVERVIEW OF THE CEMENT INDUSTRY

The Indian Cement industry is the second largest cement producer in the world, with an installed

capacity of 144 million tonnes. The industry has undergone rapid technological Adilabad

gradation and vibrant growth during the last two decades, and some of the plants can be

compared in every respect with the best operating plants in the world. The industry is highly

energy intensive and the energy bill in some of the plants is as high as 60% of cement

manufacturing cost. Although the

newer plants are equipped with the latest state-of-the-art equipment, there exists substantial

scope for reduction in energy consumption in many of the older plants adopting various energy

conservation measures.

The Indian cement industry is a mixture of mini and large capacity cement plants, ranging in unit

capacity per kiln as low as 10 tpd to as high as 7500 tpd. Majority of the production of cement in

the country (94% ) is by large plants, which are defined as plants having capacity of more than

600 tpd. At present there are 124 large rotary kiln plants in the country. The Ordinary Portland

Cement (OPC) enjoys the major share (56%) of the total cement production in India followed by

Page 22: market potential of acc2

Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A positive trend towards

the increased use of blended cement can be seen with the share

of blended cement increasing to 43%. There is regional imbalance in cement production in India

due to the limitations posed by raw material and fuel sources. Most of the cements plants in India

are located in proximity to the raw material sources, exploiting the natural resources to the full

extent. The southern region is the most cement rich region while other regions have almost same

cement production capacity. The Indian cement industry is about 90 years old and its main

sources of energy are thermal and electrical energy. The thermal energy is generally obtained

from coal, and the electrical energy is obtained either from grid or captive power plants of the

individual manufacturing units.

2. Salient features of Indian cement industry

Indian cement industry is the second largest in the world with an installed capacity of 135

MTPA. It accounts for nearly 6% of the world production.

There are 124 large plants and around 365 mini plants. The industry presents a mixed

picture with many new plants that employ state-of-the-art dry process technology and a few old

wet process plants having wet process kilns.

Production from large plants (with capacity above 1 MTPA) account for 85% of the total

production.

The cement industry has achieved significant progress in terms of reducing the overall

energy intensity. Dry process plants that the weighted average thermal energy consumption was

734 kCal/kg clinker, and weighted average electrical energy consumption was 89 kWh/tonne of

cement. The best energy consumption are 692 kCal/kg. clinker and 66 kWh/ton of cement.

3. Quantitative details:

The energy intensity of the all the dry process plants (cost of energy as percentage of total

production cost of packed cement) varies from 29 to 61%. This is observed to vary with the

vintage of the plant, the technology employed by the plants and the type of cement produced.

Specific thermal and electrical energy consumption for the plants ranges between 692 – 879

kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced (product mix) respectively. The

specific electrical energy also includes the energy consumed in packing, plant utilities and plant

Page 23: market potential of acc2

lighting. The reasons for wide range in specific energy consumption can be mainly attributed to

the differing equipment configuration employed in different sections of the plants .

Total.Poduction

The cement industry comprises of 125 large cement plants with an installed capacity of

148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10

million tonnes per annum.

The Cement Corporation of India, which is a Central Public Sector Undertaking, has 10

units. There are 10 large cement plants owned by various State Governments. The total installed

capacity in the country as a whole is 159.38 million tonnes. Actual cement production in 2002-

03 was 116.35 million tonnes as against a production of 106.90 million tonnes in 2001-02,

registering a growth rate of 8.84%. Major players in cement production are Acc cement,

Aditya Cement, J K Cement and L & T cement.

Apart from meeting the entire domestic demand, the industry is also exporting cement and

clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92

million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes. Major

exporters were Gujarat Acc Cements Ltd. and L&T Ltd.

The Planning Commission for the formulation of X Five Year Plan constituted a 'Working Group

on Cement Industry' for the development of cement industry. The Working Group has identified

following thrust areas for improving demand for cement;

i. Further push to housing development programmes;

ii. Promotion of concrete Highways and roads; and

iii. Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry, the

Department of Industrial Policy & Promotion commissioned a study on the global

competitiveness of the Indian Industry through an organization of international repute, viz.

Table given here is representing the cement industry growth through five year plans……

Page 24: market potential of acc2

Five years plan Years Capacity (mt) Production (mt)

Pre plan2nd plan3rd plan4rth plan5th plan6th plan7th plan8th plan9th plan

10th pl

1950-511951-561956-611961-661969-741974-791980-851985-901992-971997-02

3.285.029.3012.0019.7622.5842.4061.31105.26146.13

2.204.607.9710.9714.6619.4230.1345.4176.22108.40

Cement industry has been decontrolled from price and distribution on 1st March

1989 and de-licensed on 25th July 1991. However, the performance of the industry and prices of

cement are monitored regularly. Being a key infrastructure industry, the constraints faced by the

industry are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet

Secretariat under the Chairmanship of Secretary (Coordination). The Committee on

Infrastructure also reviews its performance.

Technological change

Continuous technological Adilabad grading 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. One project for co-

generation of power utilizing waste heat in an Indian cement plant is being implemented with

Japanese assistance under Green Aid Plan. The induction of advanced technology has helped the

industry immensely to conserve energy and fuel and to save materials substantially. India is also

producing different varieties 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. Production

Page 25: market potential of acc2

of these varieties of cement conform to the BIS Specifications. Also, some cement plants have

setAdilabad dedicated jetties for promoting bulk transportation and export.

State- wise major cement plants

state No.of plants Capacity mt

Andhra pradeshAssamBihar

ChhatisgarhDelhiGujrat

HaryanaHimachal pradesh

J and kJharkhandKarnatkaKerala

Madhya pradeshMaharashtraMeghyalaya

OrrisaPunjab

RajasthanTamil nadu

Uttar pradeshWest Bengal

24119112141591128133141374

23.960.201.0010.360.5017.120.174.060.204.5710.070.4216.3910.950.202.762.8417.9514.795.073.13

Total 134 146.71

Page 26: market potential of acc2

Current status of Indian cement industry

The Indian cement industry has grown remarkably in the last two decades to emerge as

the second largest in the world after china. In terms of technology , quality and productivity,

India cement industry is remarkably is undeniably at the top. Today, the country has 134 major

plants with an installed capacity of 146.71 million tones. There are also 60 surviving mini and

tiny units with a capacity of 6.3 million tones The combined capacity of the cement industry is

153.01 million tones . in recent years , the production of blended cement has increased in India

as more and more companies shifting their emphasis from opc to blended cement. With

increased cement production, the cement supplies have increased substantially resulting into

depressed prices, with producers are getting inadequate returns on their investment, affecting the

bottom lines of several companies.

Today, the Indian cement industry is passing through are alignment and consolidation .

Multi nationals have a strong entry in the cement market and are trying to get their presence by

acquisitions and mergers. The per capita consumption of cement in India, which currently is very

low at 99 kg, has huge scope of growth . according to industry sources with the intiative taken

by the government on the infrastructure , particularly the north and south corridor particularly

known as “ golden qualidateral” the working group on the cement industry constituted by the

planning commission.

History & Profile of ACC Cement Works

ACC was formed in 1936 when ten existing cement companies came together under one

umbrella in a historic merger – the country’s first notable merger at a time when the term

mergers and acquisitions was not even coined. The history of ACC spans a wide canvas

beginning with the lonely struggle of its pioneer F E Din Shaw and other Indian entrepreneurs

like him who founded the Indian cement industry. Their efforts to face competition for survival

in a small but aggressive market mingled with the stirring of a country’s nationalist pride that

touched all walks of life – including trade, commerce and business.

Page 27: market potential of acc2

The first success came in a move towards cooperation in the country’s young cement

industry and culminated in the historic merger of ten companies to form a cement giant. These

companies belonged to four prominent business groups – Tatas, Khataus, Killick Nixon and F E

Din Shaw groups. ACC was formally established on August 1, 1936. Sadly, F E Din Shaw, the

man recognized as the founder of ACC, died in January 1936. Just months before his dream

could be realized.

ACC stands out as the most unique and successful merger in Indian business history, in

which the distinct identities of the constituent companies were melded into a new cohesive

organization – one that has survived and retained its position of leadership in industry. In a sense,

the formation of ACC represents a quest for the synergy of good business practices, values and

shared objectives. The use of the plural in ACC’s full name, The Associated Cement Companies

Limited, itself indicates the company’s origins from a merger. Many years later, some

stockbrokers in the country’s leading stock exchanges still refer to this company simply as ‘The

Merger’

The ACC Board comprises of 13 persons. These include executive, non-executive, and

nominee directors. This group is responsible for determining the objectives and broad policies of

the Company - consistent with the primary objective of enhancing long-term shareholder value.

The Board meets once a month. Two other small groups of directors - comprising

Shareholders'/Investors' Grievance Committee and Audit Committee of the Board of Directors -

also meet once a month on matters pertaining to the finance and share disciplines. During the last

decade, there has been a streamlining of the senior management structure that is more responsive

to the needs of the Company's prime business. A Managing Committee - comprising, in addition

to the Managing Director and the two executive directors, the presidents representing

multifarious disciplines: finance, production, marketing, research and consultancy, engineering

and human resources – meets once a week. Besides these bodies, there are senior executives and

other regional managers - based at the Company's corporate office and at its marketing offices

and manufacturing units -who contribute to the development and operation of the various

functions. While these groups form the core management team that frames and guides corporate

policy, ACC is proud of its manpower strength of about 9,000 people, who comprise experts in

Page 28: market potential of acc2

various disciplines assisted by a dedicated workforce of skilled persons. Quite a number of them

have logged many years of service with the organization. They come from all parts of the

country and belong to a variety of ethnic, cultural and religious backgrounds. Because of such a

cosmopolitan make-up, ACC can rightly be said to embrace within its fold a family that forms a

'mini-India'.

A Strategic Alliance:

The house of Tata was intimately associated with the heritage and history of ACC, right

from its formation in 1936 up to 2000. The Tata group sold all 14.45% of its shareholdings in

ACC in three stages to subsidiary companies of GujaratACC Cements Ltd. (GMCL), who are

now the largest single shareholder in ACC.

This enabled ACC to enter into a strategic alliance with GMCL; a company reputed for its brand

image and cost leadership in the cement industry.

Holcim – A New Partnership:

A new association was forged between ACC and The Holcim group of Switzerland in

2005. In January 2005, Holcim announced its plans to enter into long – term alliances withACC

Group by acquiring a majority stake inACC Cements India Ltd. (ACIL),which at the time held

13.8% of total equity shares in ACC. Holcim simultaneously announced its bid to make an open

offer to ACC shareholders, through Holdcem Cement Pvt. Ltd. and ACIL, to acquire a majority

shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Ltd. along with ACIL,

following which the shareholding of ACIL increased to 34.69% of Equity share capital of ACC.

Consequently , ACIL has filed declarations indicating their shareholding and declaring itself as a

promoter of ACC.

Holcim is the world leader in cement as well as being large supplier of concrete,

aggregates and certain construction related services. Holcim is also a respected name in

information technology and research and development. The group has its headquarters in

Switzerland with worldwide operations spread across more than 70 countries. Considering the

Page 29: market potential of acc2

formidable global presence of Holcim and its excellent reputation, the broad of ACC has

welcomed this new association.

Plants & Their Capacity:

S. No. Units State Capacity (MTPA)

1 BargarhBargarh Cement Works

0.96

2 ChaibasaChaibasa Cement Works

0.87

3 ChandaChanda Cement Works

1.00

4 DamodharDamodar Cement Works

0.53

5 GagalGagal Cement Works 4.40

(Gagal I and II)

6 JamulJamul Cement Works

1.58

7 KymoreKymore Cement Works

2.20

8 mancherialMancherial Cement Works

1.50

9 MadukkaraiMadukkarai Cement Works

0.96

10 SindriSindri Cement Works

0.91

11 WadiWadi Cement Works

2.59

12 New Wadi PlantWadi Cement Works

2.60

13 TikariaTikaria Cement Grinding and Packing Plant 2.31

Page 30: market potential of acc2

Mission of ACC

Leadership

Maintain our leadership of the Indian cement industry through the

continuous modernization and expansion of our manufacturing facilities

and activities, and through the establishment of a wide and efficient

marketing network.

Profitability

Achieve a fair and reasonable return on capital by promoting productivity

throughout the company.

Growth

Ensure a steady growth of business by strengthening our position in the

cement sector.

Quality

Maintain the high quality of our products and services and ensure their

supply at fair prices.

Equity

Promote and maintain fair industrial relations and an environment for the

effective involvement, welfare and development of staff at all levels.

Pioneering

Promote research and development efforts in the areas of product

development and energy, and fuel conservation, and to innovate and

optimize productivity.

Responsibility

Fulfill our obligations to society, specifically in the areas of integrated

rural development and in safeguarding the environment and natural

ecological balance.

Page 31: market potential of acc2

Milestones of ACC Limited

1936 Incorporation of The Associated Cement Companies Limited on August 1, 1936.

1936 First Board Meeting of The Associated Cement Companies Limited held at Esplanade

House, Mumbai on November 10, 1936.

1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the

formation of ACC is complete on October 23, 1937.

1944 ACC’s first community development venture near Bombay

1947 India’s first entirely indigenous cement plant established at Chaibasa in Bihar

1952 Village Welfare Scheme launched

1955 Sindri cement works used the waste product calcium carbonate sludge from fertilizer

factory at Sindri.

1956 Bulk Cement Depot established at Okhla, Delhi

1957 Technical training institute established at Kymore, Madhya Pradesh.

1957 Katni Refractories

1961 Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture Portland Slag

Cement for the first time in India.

Page 32: market potential of acc2

1961 Manufacture of Accocid Cement, which resists the corrosive action of acids and

chemicals.

1961 Oilwell Cement manufactured at ACC Shahabad Cement Works in Karnataka for

cementation of oilwells upto a depth of 6,000 feet.

1961 Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement Works in

Bihar.

1962 Manufacture of Accoproof, a waterproofing additive.

1965 ACC’s Central Research Station (CRS) established at Thane

1965 Manufacture of Portland Pozzolana Cement.

1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina

Castables and High Alumina Refractory Cement.

1968 Advent of computers in ACC for data processing and designing management information

and control systems.

1968 ACC supplied and commissioned one-million-tonne iron ore pelletising plant ordered by

TISCO

1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-75

1973 Take-over of The Cement Marketing Company of India (CMI)

Page 33: market potential of acc2

1977 ACC receives ASSOCHAM first national award for the year 1976 instituted for

outstanding performance in promoting rural and agricultural development activities.

1978 Introduction of the energy efficient precalcinator technology for the first time in India.

Full scale commercial production based on MFC technology at Wadi in 1979.

1979 ACC wins international contract for operation and management of a new one million

tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.

1982 Commissioning of the first 1 MTPA plant in the country at Wadi, Karnataka.

1984 ACC achieves a breakthrough in import substitution by developing and supplying a

special G type of oil well cement to ONGC.

1987 ACC develops a new binder for use at sub-zero temperatures, which is successfully used

in the Indian expedition to Antarctica.

1992 Incorporation of Bulk Cement Corporation of India, a joint venture with the Government

of India.

1993 ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai.

1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pradesh.

1999 Commissioning of captive power plants at the Jamul and Kymore plants in Madhya

Pradesh.

Page 34: market potential of acc2

1999 Tata group sells 7.2% of its stake in ACC toACC Cement Holdings Ltd, a subsidiary of

GujaratACC Cements Ltd. (GMCL)

2000 Tata Group sells their remaining stake in ACC to the GMCL group, who with 14.45%

now emerge as the single largest shareholder of ACC.

2001 Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka plant, the

largest in the country, and among the largest sized kilns in the world.

2002 ACC wins PHDCCI Good Corporate Citizen Award

2003 IDCOL Cement Ltd becomes a subsidiary of ACC

2004 IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).

2004 ACC raises US $ 100 million abroad through Foreign Currency Convertible Bonds

(FCCB’s) for US$ 60 million and Global Depository Shares (GDS’s) for US $ 40

million. Both offerings are listed on the London Stock Exchange.

2004 ACC named as a Consumer Superbrand by the Superbrands Council of India, becoming

the only cement company to get this status.

2004 GreenTech Safety Gold and Silver Awards awarded to Madukkarai Cement Works and

Katni Refractory Works by Greentech Foundation for outstanding performance in Safety

Management System.

2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit –

Page 35: market potential of acc2

2004 from Council For Fair Business Practices.

2005 Holcim group of Switzerland enters strategic alliance withACC Group by acquiring a

majority stake inACC Cements India Ltd. (ACIL) which at the time held 13.8 % of the

total equity shares in ACC. Holcim simultaneously makes an open offer to ACC

shareholders, through Holdcem Cement Pvt. Limited and ACIL, to acquire a majority

shareholding in ACC. Pursuant to the open offer, ACIL’s shareholding in ACC increases

to 34.69 % of the Equity share capital of ACC.

2005 Commissioning of Modernisation and Expansion project at Chaibasa in Jharkhand,

replacing old wet process technology with a new 1.2 MTPA clinkering unit, together

with a captive power plant of 15 MW.

2005 Financial accounting year of the company changed to calendar year January-December

2006 Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement Limited and

Tarmac (India) Limited merged with ACC

2006 ACC announces new Workplace policy for HIV/AIDS

2006 Change of name to ACC Limited with effect from September 1, 2006 from The

Associated Cement Companies Limited.

2006 ACC receives Good Corporate Citizen Award 2005-06 from Bombay Chamber of

Commerce and Industry

2006 New corporate brand identity and logo adopted from October 15, 2006

Page 36: market potential of acc2

2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at Wadi in

Karnataka– the first ever such project by a private sector company in India.

2007 ACC partners with Christian Medical College for treatment of HIV/AIDS in Tamil Nadu

2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens with new

curriculum

2007 ACC commissions Wind energy farm in Tamil Nadu.

Map of ACC Network

Corporate office:

Overseeing the company’s rang of business, the Corporate Office is the central head quarters of

all business and human resource function located in Mumbai.

ACC Subsidiaries:

1. Bulk Cement Corporation India Ltd (BCCI)

2. ACC Machinery Company Ltd (AMCL)

3. ACC Nihon Casting Ltd (ANCL)

Cement Plant:

1. Bargarh Cement Works2. Chaibasa Cement Works3. Chanda Cement Works4. Damodar Cement Works5. Jmul Cement Works 6. Gagal Cement Works7. Kymore Cement Works8. Madhukkarai Cement Works9. Mancherial CEMENT Works10. Sindri Cement Works11. Wadi Cement Works12. Tikaria Cement Works

Page 37: market potential of acc2

Regional Marketing Office:

BANGALORE BHOPAL CHNDIGARH COIMBATORE KANPUR KOLKATA MUMBAI NEW DEHPATNA PUNE SECUNDERABAD MANCHERAIL

Area Office:

ALLAHABAD ASANSOL AURANGABAD BELLARY COCHIN CHENNAI FAZABAD GULBARGA GUWAHATI JAMMU BHUBANESHWAR JALANDHAR KOCHI KOZHIKODE KOLHAPUR LUCKNOW MANGALORE NAGPUR PATIALA RAIPUR SHIMLA VELLORE ADILABAD

RMX Office:

Mumbai- Kalamboli Mumbai- Sion Mumbai- JVLR Project Chennai Delhi- Faridabad

Page 38: market potential of acc2

Greater Noida Bangalore- Whitefield Bangalore- Peenya Bangalore- Hosur Road Bangalore- betta Halsoor Kolkata- Sonapur Goa- Panaji Gurgaon- Haryana

OVERVIEW OF MANCHERIAL CEMENT WORKS

Unit Profile: Mancherial

Mancherial is a city and a municipality in Adilabad district in the Indian state of Andhra

Pradesh. Mostly surrounded by agricultural lands & villages the most distinct feature of

Mancherial is a cement manufacturing unit of ACC [Associated Cement Companies] Ltd. This

plant is the oldest running cement plant in Asia. But with the passage of time the plant has

undergone expansions to incorporate the latest technology in cement producing. The latest

expansion project is being completed in April 2007.

ACC Limited is India’s foremost manufacturer of cement and ready mix concrete with a

countrywide network of factories and marketing offices.

Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete

technology. ACC’s brand name is synonymous with cement and enjoys a high level of equity in

the Indian market. Among the first companies in India to include commitment to environment

protection as a corporate objective, ACC has won several prizes and accolades for environment

friendly measures taken at its plants and mines. The company has also been felicitated for its acts

of good corporate citizenship. Presently ACC is a part of the “Holcim Group”, one of the largest

multinational Cement manufacturers. ACC Mancherial Cement Works is located between Kota

& Sawai Madhopur of Western-Central Railway. Place known for ACC Cement. The oldest

cement plant in India which has still preserved its 1905 lime kilns. Plant has already been

Page 39: market potential of acc2

modernized and the capacity being further increased to 1.5 M.T.P.A.together with 25MW Coal

based Power Plant during the year 2006-2007.

Product (Cement):Quality

Product development has always been an important activity at ACC, arising out of a

focus on quality and process improvement. It has been a constant partner, driving research,

innovation and evaluation. In 1964, a centralized research facility – the Central Research Station

(CRS) was established in Thane. The research complex now renamed as ACC Thane Complex,

spread over an area of 8000 sq m has modern labs with the latest equipment and manned by

highly qualified scientists and technologists who carry out product development work in cement

and allied fields.

ACC has effectively pledged its reputation as the market leader in quality of cement.

Maintaining this lead calls for harnessing the resources and expertise of the company – from

applied research and production to marketing. Accordingly, all ACC factories are equipped with

state- of- the- art process control instrumentation and associated quality control and testing

laboratories. Trained engineers, chemists and technicians staff these. The Central Laboratory at

ACC Thane Complex is used as a reference laboratory for diagnosis and resolving specific

trouble – shooting cases.

As a result of this focus on quality, ACC cement specification exceeds those set by BIS

by wide margin. Today, all ACC cements plants have the ISO 9001 Quality Systems

Certification. This demonstrates our tradition of providing reliable and consistent quality through

the application of modern technology, and justifies the preferences of a nationwide customer

base.

ACC manufactures the following types of cement, in addition to which, it provides Bulk

Cement and Ready Mix Concrete.

Ordinary Portland Cements

 OPC 43 Grade

Blended Cements

Page 40: market potential of acc2

 Fly-ash based Portland Pozzolana Cement

Ordinary Portland Cement 43 Grade Cement (OPC 43 Grade):

ACC Cement is the most commonly used cement in all constructions including plain and

reinforced cement concrete, brick and stone masonry, floors and plastering. It is also used in the

finishing of all types of buildings, bridges, culverts, roads, water retaining structures, etc.

What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on compressive

strength levels.

ACC Cement is marketed in specially designed 50 kg bags.

ACC in other plants also manufactured 53 Grade Cement This is an Ordinary

Portland Cement which surpasses the requirements of IS: 12269-53 Grade. It is produced from

high quality clinker ground with high purity gypsum.

ACC 53 Grade OPC provides high strength and durability to structures because of its optimum

particle size distribution, superior crystalline structure and balanced phase composition.

It is available in specially designed 50-kg bags.

Blended Cement:

Fly-ash based Portland Pozzolana Cement

This is special blended cement, produced by inter-grinding higher strength Ordinary

Portland Cement clinker with high quality processed fly ash - based on norms set by the

company's R&D division. This unique, value-added product has hydraulic binding properties not

found in ordinary cements. It is available in specially designed 50-kg bags.

Pioneer & Trendsetter:

Page 41: market potential of acc2

ACC has a unique track record of innovative research, product development and

specialized consultancy services. It is a important benchmark for the cement industry in respect

of its production, marketing and personal management process.

ACC is proud of its many innovation over the years and realizes that innovativeness is an

essential characteristic of leadership.

ACC Cement:

ACC’s brand name is synonymous with cement . its marketing, sales and distribution

processes are industry standards. The brand building approach to marketing cement which was

first adopted by ACC has proved to be exceptionally successful in respect of blended cements in

terms of providing more effective communication with customers and has been emulated by

other companies in the industry.

Ready- Mix Concrete:

ACC established the country’s first commercial ready-mix concrete (RMX) in Mumbai.

ACC’s pioneering efforts in this respect along with the introduction of bulk cement handling

facilities have been responsible for redefining the pace and quality of construction activity in

metropolitan cities and in mega infrastructure projects. The JJ flyover in Mumbai was the first

mega construction project in India to use High Performance Concrete of M-75 grad.

Research & Development:

ACC is the only cement producer in India with its own in-house Research and

Development facility. The sprawling Research and Consultancy Directorate

(RCD) complex at Thane near Mumbai has a unique track record of innovative research and

specialized technological services.

RCD has helped introduce some unique special projects of immense value to the concrete

and construction sectors. These include repair products and grouts and Ancones, a non explosive

demolition agent. RCD has developed Accmarg, a revolutionary new product and grouting

composition for the construction and repair of new roads and highways.

Page 42: market potential of acc2

The services of concrete group at RCD have been utilized in the striation of several

heritage buildings across the country, such as the CST terminus at Mumbai, churches and royal

palaces in Goa, Mysore and Hyderabad.

Sharing Knowledge:

Following the massive earthquake in Gujarat, ACC’s civil engineers trained over 1500

unemployed youth from remote villages in the fundamentals of building stronger, more

earthquake resistant structures. This was the first formal training effort of its kind for masons.

Many of these youth are now gainfully employed.

Environmental Protection:

ACC is among the first companies in India to include commitment to environmental

protection as one of its corporate,long before pollution control norms and regulatory act came in

to existence. The company inducted the use of pollution control equipment and hig efficiency

sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and

coolers as for as 1966.

Today each ACC factory has high efficiency state-of-the art pollution control equipment

and devices. Each of our manufacturing units has a separate environment section manned by a

qualified environmental engineer and supporting staff. Our plants, mines and township

demonstrate the company’s successful endeavors in greening activities such as Afforestation,

tree planting, horticulture, vegetable and cultivation apart from basic landscaping designed to

enrich and beautify the environment.

Cleaner mining techniques have helped safeguard and conserve mineral resources. In

addition, we have taken other positive measures such as top – soil conservation, efficient water

management systems and the treatment of the wastage, sewage and effluents. Some of our plants

have become near self – reliant in their water requirements.

ACC has achieved spectacular results in the utilization of two hazardous and pollutant

industrial wastes – namely slag from steel plants and fly ash from thermal power stations – to

make blended cements that help conserve limestone resources. Over the years, ACC has won

Page 43: market potential of acc2

several prizes and certificates of merit for environmental measures undertaken at its various

plants and mines.

In particular, for programs involving greening, Afforestation, rehabilitation of mines, noise

abatement and other visible measures like tree plantation and water management.

A forestation and Greening the Environment.Tree plantation is a regular and committed activity at ACC. Vacant land in plant, mines

and colony at each factory is used to develop greenery of various species. Some ACC plants (viz.

Gagal, Jamul, Kymore and Chaibasa) have developed as much as 40% area for green belts as

compared to statutory requirement of 30 %. Every cement plant has its own success story of tree

plantation, greening activities, horticulture, flower and fruit cultivation and water conservation.

Tree plantation and green belt development programs have been extended to cover areas in

vicinity of our plants for the benefit of local community.

Rocky areas in mines have been rendered suitable for plantation by overspreading topsoil

obtained from mining activity. A forestation programs have helped transform the once barren

and dry ambience into lush greenery.Each One – Plant One has been an inspiring message

practiced by many of our employees. The total plantation undertaken across ACC is more than

3.3 million numbers of trees, with an average survival rate of 85% and spread over an area of

1000 acres in mines, factories and residential townships.

Table no 5: - Prices of the shares of MCL (BSE and NSE)

MONTH BSE (HIGH) BSE (LOW) NSE (HIGH) NSE (LOW)

Page 44: market potential of acc2

January-09

February-09

March-09

April-09

May-09

June-09

July-09

August-09

September-09

October-09

November-09

December-09

79.20

76.25

75.10

87.80

95.00

107.00

109.95

111.50

102.50

105.55

95.00

104.80

65.55

59.55

60.35

70.20

74.00

79.20

85.25

95.10

96.05

83.80

81.80

92.15

79.20

76.40

75.00

87.85

94.70

106.90

110.30

111.80

102.45

105.30

95.00

105.20

65.10

59.75

60.40

68.30

74.00

82.50

85.05

95.05

96.05

86.05

81.85

92.35

(Source: Acc cement Annual Report 2009)

2.14 Distribution of Shareholding:-

The shareholding distribution of the equity shares as on 31st December, 2009 is shown in the

table:-

Page 45: market potential of acc2

Table no 6- Shareholders distribution

Number of equity shares

Number of

shareholders

Number of shares Percentage of shareholders

Less than 50

51 to 100

101 to 500

501 to 1000

1001 to 5000

5001 to 10000

10001 to 50000

50001 to 100000

100001 to 500000

500001 & above

120245

43095

44915

11564

20195

3946

2292

141

165

128

3066287

3876307

11697348

9110676

53451013

28498276

42316750

10024450

36755350

1324914923

0.20

0.25

0.77

0.60

3.51

1.87

2.78

0.66

2.41

86.95

TOTAL 246686 1523711380 100

(Source: Acc cement Annual Report 2009)

2.15 Shareholding Pattern:

The shareholding of different categories of the shareholders as on 31st December, 2009 is shown

in the table-

Page 46: market potential of acc2

Table no 7. -Shareholding pattern

Category No. of Shares Percentage (%)

Indian Promoters

Foreign Promoters

Foreign Investors

(including FIIs)

Mutual Funds, Banks &

Institution

OCB NRIs

Body Corporates

GDR Holders

Other

12081909

695393717

349054069

257400509

20416097

21332630

28952518

139079931

0.79

45.64

22.91

16.89

1.34

1.40

1.90

9.13

TOTAL 1523711380 100

(Source: Acc cement Annual Report 2009)

Page 47: market potential of acc2

UNIT-IV

DATA ANALYSIS & INTERPETATION

DATA ANALYSIS:

Page 48: market potential of acc2

In this section, we will analyze the data which was obtained through different means of

data analysis like questionnaire, personal interviews. Since this survey was related to the cement

industry, so people related to it like masons, bulk consumer , retailer and Above all general

consumer were interviewed.

The whole data analysis section is done with help of different charts, bars and other

techniques available. The interview was mostly done on selected persons of selected category. I

have done survey mainly on the basis of following structure…..

1. Masons—20%

2. Arch/ Engineers—10%

3. Retail stockists--- 20%

4. Wholesalers--- 10%

5. Bulk consumers—10%

6. General consumer—30%

For doing the survey, a questionnaire was designed as a scientific tool so as to know the

customer’s attitude towards the Acc mancherial cement works limited.

The main purpose of this survey was to know the customer satisfaction level

. This survey was done partially Mancheria land somepartsd of NCR also. Some other parts of

the country like the neighboring Adilabad was also touched for the survey.

This page and onwards will contain step by step analysis of different questions…

Page 49: market potential of acc2

1 How important is price for you while buying the cement?

1. MASONS

Choices / options No of respondents1. Extremely important 3

2. Rarely important 2 3. Not at all important 0

2. Arch / engineers

Options / choices No of respondents1.Extremely important 2

2.Rarely important 13.Not at all important 0

INTERPRETATION:

The above table shows that majority of respondents consider price is more important while purchasing.

Extremely important Rarely important Not at all important0

1

2

3

4

Importance of price

choices /options

no

of

res

po

nd

en

ts

Extremely important Rarely important Not at all important0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Page 50: market potential of acc2

2 Do you consider colour of cement as an important factor for buying of the cement?

1. Masons

Options /choices No respondents1.Definitely important 2 2.Not so important 1

3.Sometimes important 14..Not sure 1

2. Retail stockists.

Options No of respondents1.definitely important 1

2 .not so important 23.sometimes important 1

4. not sure 1

Definitely important

Not so important

sometimes important

Not sure0

1

2

3

4

5

colour of cement

choices

no of re-spondents

Definitely important Not so important

sometimes important Not sure

Page 51: market potential of acc2

3. General consumer

Options No of respondents1.Definitely important 1

2.Not so important 43.sometimes important 1

4.not sure 1

INTERPRETATION:

Above interpretation indicates that colour of the cement is not an important factor. From survey

done on different group of people , it is evident that masons, retail stockists and general

consumer, all of them do not give too much attention to colour of the cement….

3 Is early setting time an important factor in buying of the cement?

Definitely important

Not so impor-tant

Sometimes important

Not sure0

1

2

3

4

Importance of colour

Parametrs

No of respondents

Page 52: market potential of acc2

Architects / engineers

ParametersNo of respondents

1.Important 12.Not important 03.Extremely important 24.Not sure 0

3. Retail stockiest

ParametersNo. of respondents

1.Important 12.Not important 03.Extremely important 34.Not sure 1

4.General consumer

Important Not important extremely important

Not sure0

0.20.40.60.8

11.21.41.61.8

2

Important

Not important

extremely important

Not sure

Page 53: market potential of acc2

ParametrsNo. of respondents

1. Important 22. Not important 13.Extremely important 44. Not sure 0

INTERPRETATION:

The above interpretation clearly indicates that early setting time is one of the important factor

with all group of people giving more weightage to it.

4 Do you think that attractive packaging is an important factor while buying a cement?

Important Not important extremely important Not sure0

0.5

1

1.5

2

2.5

3

3.5

4

Page 54: market potential of acc2

1. Retail stockiest.

ParametrsNo of respondents

1. Very much 22. Not so much 23. Can’t say 1

2. Whole salers

ParametrsNo. of respondents

1. Very much 12. Not so much 13.Can’t say 1

3. General consumer

very much not so much cant say

0

0.5

1

1.5

2

2.5

very much not so much cant say

0

0.2

0.4

0.6

0.8

1

1.2

Series1

Page 55: market potential of acc2

Parameters No of respondents

1.Very much 22. Not so much 43.cant say 1

The response to this question clearly indicates that people do not tend to buy those cement which

have good and attractive packaging as after all quality matters.

4. Rate the following on the scale of 1 to 5!!

ParametersBrand name Brand

imageDelivery

timePrice Packaging

Ambuja 4 3 3 4GUJ ACC 3 3 3 3

ACC MANCHERIAL CEMENTS

3 2 3 2

LAFARGE 4 3 3 3

INTERPRETATION:

Table given here is determining the customer’s preference of different brands depending on

different parameters. It is evident from the table that ACC and LAFARGE excel on every

parameter i.e. brand image, delivery time, price and packaging etc. Brand image and price are

one of the important factors in the selection of any Cement.

very much not so much cant say0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Page 56: market potential of acc2

5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?

1. Masons

ParametrsNo of responses recieved

1. Sometimes 12. Always 23. Never 14.Can’t decide 1

2. Retail stockiest

OptionsResponse

1. Sometimes 12. Always 33. Never 14.Cant decide 0

4. General customer

Sometimes Always Never Cant decide0

0.5

1

1.5

2

2.5

Fineness of the cement

Sometimes

Always

Never

Cant decide

Page 57: market potential of acc2

Choices / optionsResponses

1. Sometimes 32. Always 33.Never 14.Cant decide 0

INTERPRETATION:

We can interpret from the response received that fineness of the cement is one of the

Important factor that consumer takes into account while buying a cement.

6. How many retailers of Acc Cement do you find in your city?

Sometimes Always Never Cant decide0

0.5

1

1.5

2

2.5

3

3.5

Page 58: market potential of acc2

1. Masons

No. of retailersResponse

1 . 1-5 2 2. 5-7 33. 7-10 04. More than ten 0

2. Wholesalers

OptionsNO. Of responses

1. 1-5 12.5-7 23.7-10 04. more than 10 0

INTERPRETATION:

The response received from the customers indicate that there are enough cement retailers in their

city.

7. If you were a dealer Which type of schemes and incentives do you except from the company?

one-five five-seven seven -ten more than 100

0.5

1

1.5

2

2.5

3

3.5

no. of retailers

one-five five-seven seven -ten more than 10

0

0.5

1

1.5

2

2.5

Page 59: market potential of acc2

OptionsNo of responses

1. Gift items given 12. Award for best retailing 23.Promoting certain incentive schemes

0

4.Educate about the company’s policy

0

5. Foreign tours 2

INTERPRETATION: It is evident that the retailers want awards, tours and gifts on equal basis.

8. Do you find your desired cement easily in your city?

gifts items awards incentive schemes education foreign tours0

0.5

1

1.5

2

2.5

Page 60: market potential of acc2

1.Masons

OptionsResponses

1.sometimes 22.Always 23.Never 1

2. Industrial bulk consumer

optionsNo. of respondents

1. Sometimes 12.Always 23.Never 0

sometimes always

never

sometimes always never

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Page 61: market potential of acc2

3. General customer

choices responses1. sometimes 2

2. never 13. always 4

INTERPRETATION: The above tables shows that most of the customers always find their

desired cement easily in the town.

9. Which medium of information made you aware about Acc mancherial cements?

sometimes never always0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Page 62: market potential of acc2

1.General customer

OptionsLevel of responses

1. Newspapers 22.Hoardings 33. TV ads 14. Meeting with dealers 1

2. Industrial bulk consumer

optionsNo of respondents

1.Newspaper 02.Hoardings 13.Tv ads 04.Dealers meet 2

INTERPRETATION:

Analysis of this question reveals that hoardings are the best means of the communication as any

illiterate person can also read the various signs which could be there on the hoardings and also

there should be regular dealer meeting to know the customer aware of the cement.

newspaper hoardings tv ads meeting with dealers

0

0.5

1

1.5

2

2.5

3

3.5

newspaper hoardings

tv ads meeting with dealers

Page 63: market potential of acc2

10. Do you find compressive strength of the cement as a major factor while buying any cement?

1. Masons.

OptionsResponse rate

Very much 3Not much 2Cant decide 0

2. General customer

OptionsResponse level

Very much 5Not much 1Can’t decide 1

INTERPRETATION:

Analysis of this question reveals that customers don’t comprise on the matter of quality.

very much not much cant decide0

1

2

3

4

5

6

very much not much cant decide

0

0.5

1

1.5

2

2.5

3

3.5

Series1

Page 64: market potential of acc2

11. Is the response time of the company to the complaints satisfactory?

1. Wholesalers

ParametersResponse level

1. Satisfactory 12.Good 13. Not so good 14. Not sure 0

2. General customer

ParametersResponse level

1. Satisfactory 32 Good 23. Not so good 14. Not sure 1

INTERPRETATION:

Hence , we analyze that response time of the company to the complaints is overall satisfactory….

Page 65: market potential of acc2

UNIT-V

CONCLUSIONS & SUGGETIONS

On the basis of analysis of the questionnaire and data analysis, we find that:----

Page 66: market potential of acc2

1. Market potential of the Acc cement limited is very good in the northern parts despite the

presence of so many branded cement companies like Acc , GUJRAT ACC etc.

2.Customer satisfaction with respect to the ACC cement is satisfactory.

3. Despite the increasing cost of the raw material the company is able to bring down the cost of

manufacturing through procurement of raw materials by the mines which are located nearby .

3. Customers come to know about ACC cements mainly from hoardings as many

people are illiterate .

4. Customers want more prizes and dealers want more incentives , gifts and tours.

Dealers also want more meeting with officials of the cement companies.

5. Bulk consumers want more and more cash discount.

SUGGESTIONS

Page 67: market potential of acc2

1. The company should concentrate on more aggressive advertisement to promote their

products.

2. The company should launch more and more promotional schemes like “ two for the price of

one” or more discount coupons.

3 Company should do more to promote their brand as customer prefer good brand while buying

any cement.

4. Customer prefer price as an important factor while buying any cement so the company should

fix the price accordingly.

5. Company should concentrate on direct meeting with the customer as they are the most vital

element in deciding the growth or decline of any company.

6.Company should decrease the response time to the complaint received.

7.The company should fix certain amount of cement especially for the dealers and give them free

of cost as incentives.

8. The company should appoint more and more persons for the promotions of the brand.

9. The company should expand its market and concentrate in deep penetration in northern part of

India.

10. Company should decrease delivery time of the cement.

Page 68: market potential of acc2

ANNEXURESQUESTIONNAIRE & BIBLIOGRAPHY

QUESTIONNAIRES

Q 1. How important is price for you while buying the cement?

1. Extremely important 2. Rarely important 3. Not at all important

Page 69: market potential of acc2

Q2. Do you consider colour of cement as an important factor for buying of the cement?

1.Definitely important 2.Not so important

3.Sometimes important 4.Not sure

Q3. Is early setting time an important factor in buying of the cement?

1.Important 2.Not important

3.Extremely important 4.Not sure

Q4. Do you think that attractive packaging is an important factor while buying a cement?

1. Very much 2. Not so much 3. Can’t say

Q5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?

1. Sometimes 2. Always

3. Never 4.Can’t decide

Q6. How many retailers of Acc Cement do you find in your city?

1. 1-5 2. 5-7

3.7-10 4. More than 10

Q7. If you were a dealer which type of schemes and incentives do you except from the company?

1. Gift items given 2. Award for best retailing

3. Promoting certain incentive schemes 4.Educate about the company’s policy

5. Foreign tours

Q8. Do you find your desired cement easily in your city?

1. Sometimes 2.Always 3.Never

Q9. Which medium of information made you aware about Acc Mancherial cements?

1. Newspapers 2.Hoardings

3. TV ads 4. Meeting with dealers

Q10. Do you find compressive strength of the cement as a major factor while buying any

cement?

1. Very much 2. Not much 3. Can’t decide

Q11. Is the response time of the company to the complaints satisfactory?

1. Satisfactory 2.Good

3. Not so good 4. Not sure

Page 70: market potential of acc2

BIBLIOGRAPHY

1. www.Acc cement.com

Page 71: market potential of acc2

2. www. acc .com/

3. Labour and Industrial chronicle-- Survey of major cement plants

4. Marketing research—Naresh kumar Malhotra , Pearson education

5. Marketing Management—Phillip Kotler