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SUBHOJEET NASKAR
SUBHOBRATA SENGUPTOSWASTI RANJAN SAHU
TAHSIN AKHTAR
TATHAGATO BISWAS
TANIA DATTATRIPTI DAS
URMIMALA PAUL
PRESENTED BY THE QUALITY ALL GROUPPRESENTED BY THE QUALITY ALL GROUP
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INDUSTRY OVER VIEW:INDUSTRY OVER VIEW:--
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SEGMENTATIONSEGMENTATION
Cement is a bulkcommodity, so theindustry is mainly productbased.
Segmentation in cementindustry is based on-
1) its various products.eg- Portland pozzalanacement, quick hardeningcement,readymixcement.
2)Life Style-White cement
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SEGMENTATIONSEGMENTATION
Industry focuses onrelationship approach, so as to build and maintaintrustcenteredrelationship.
The cement Industry is mostly donethroughmass marketing, as it doesnthave any
customized product for any specific group of customers.
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DEMAND DRIVERSDEMAND DRIVERS
1)Strong GDPgrowth of over 8per cent overthe
pastthreeyearswhich is likelytosustain in future
2)HugeInfrastructurespending on
Roads, irrigation,
urbaninfrastructure,
seaports, air-ports.
3)Over Rs 100000cr. of investmentlined up for SEZs
overnext fiveyears
4)Booming RealEstatemarkets ledby unprecedented
foreigninvestment.
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MARKETING MIXMARKETING MIX
Marketing mixis the combination ofelements thatyou will useto marketyour product.(4 Ps)
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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..
Prices across thecountryhaverisen
substantially buoyedbytherobust
demand for cement.
the local demand is
morethan 60 percent ofthe capacity
the prices elsewhere inthe country arereachingthe viable levels of Rs
180to Rs 200 per bag.
TheThe keykey factorsfactors affectingaffecting priceprice sensitivitysensitivity::ii)) stockstock priceprice movementsmovements (IPO)(IPO) ofof cementcement companiescompanies..ii)Seasonalii)Seasonal changeschanges ..iii)Naturaliii)Natural calamitycalamity
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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..
Everyyearthe price israising by Rs.10-15.2008-09the avg. price wasRS.250-265 but ithasraised to Rs.280-290.
REASONS: increase inthe price ofrawmaterial, andtransportation cost
EFFECT OFEFFECT OFINFLATIONINFLATION
Distribution channel of cement has 3 level distribution channel.Distribution channel of cement has 3 level distribution channel.
1)Carry &1)Carry &Forward AgencyForward Agency
[CFA][CFA]
2)Dealers2)Dealers 3)Sub3)Sub--DealersDealers
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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..main shortcomings in the distribution are:main shortcomings in the distribution are:--
Lack of good communication channel
Roadways Distantly located plants
High sales tax on importfrom other states
High transportation cost
MAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMS
ChannelConflict/Conflict
betweendistributers
TransportationProblems
Cost/Availability OfRaw Materials
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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..
Cement industrymainly applies a push strategyas cement is essentially viewed as commoditybytheend user. So companymainlytargets the
dealers,engineers who ultimately influencepurchase ofthe product,throughmeeting,seminars, camps anddistributinggifts. itspends max of its promotional funds in pushstrategy, and on the dealers,engineers, as theyinfluencethe individual home builders.
Is CementMe Jaan Hai
Jaan Wahi, Pehchan Nai- ULTRATECH
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MARKETING MIXMARKETING MIX CONTINUED..CONTINUED..
But with increase in large number ofBut with increase in large number offragmented customers pullfragmented customers pull strategy
has
now been adopted bytop
leading companies throughadvertisement inT.V., newsT.V., news
papers, hoardings, sponsoring showspapers, hoardings, sponsoring shows,,etcetc
Eg- ultratech- Engineers choice
Cement sector(specially ACC Cement) is now adopting
sustainable development practices & they are trying to
make cement which reduces the impact of green house
gases.
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BRANDING & ADVERTISEMENTBRANDING & ADVERTISEMENT
Though being a commodity product, branding is important forThough being a commodity product, branding is important for
a cement company.a cement company.
ACC CEMENTSACC CEMENTS
PPC
PBFSC
AMBUJAAMBUJA
CEMENTSCEMENTS
PPC
PBFSC
ULTRATECHULTRATECH
CEMENTSCEMENTS
PPC
PBFSC
REVENUE:REVENUE:--As ACC is the most trusted brand in cement it enjoys the
excess revenue and profit than others.
Revenue for the year 2009, acc-Rs.8749 cr
konark cement-Rs.780 cr
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Branding & AdvertisementBranding & Advertisement continued..continued..
The cement industry uses less amount for
advertising as theT.V. and hoardings, and print
media count very less as compared to the abovetwo.
The film Chak De India, promoting
women's hockey in India, became an all-time hit. In the movie UltraTech was the
sponsor of the Indian women's hockeyteam
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SALES MANAGEMENTSALES MANAGEMENT
Cement industry has scope lies mainly inB2B rather than B2C. The reason being:
1. Number of housing companies, realestate business is continuously rising.Demand for cement has increased in thehousing sector ~53%
2. most importantly, govt. has allocated
Rs.1000 cr. To the cement industry forirrigation purpose.
Relationship with the distributers/dealers isa key factor for the success and growthbecause the success of cement industry lieson long term relationship. E.g, IndiaCements with Gammon in Kolkata Metroconstruction.
Relationship also indicates how it can attachits product with the individual homebuilders, which is also another key factor.
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SALES MANAGEMENTSALES MANAGEMENTCONTINUEDuCONTINUEDu
. Formaintaininggood relationshipcompanies followvarious strategy;they providegiftsonevery annual
meeting, freetourprograms ,etc..
STRUCTURE OFSTRUCTURE OFSALES FORCESALES FORCE
The structure ofthesales team consistsof sales director,
manager, assistantsales manager,team leader andsales person.
Number of salesperson depend
uponthe potentialofthe area,
customer base.acc has 20 sales
office,10,000sales force
SALESSALESCOMPENSATIONCOMPENSATION
Sales forcegets basic
salary, incentives onachievement of prefixedtarget, D.A. bonuses ETC
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