Marketability of Local Vs. National Brand of Cement

About the Organization

I. The Satyam Group is a well diversified industrial conglomerate,

II. Patriarch Sri Ratan Sharma,

III. Humble beginning in the year of 1994,

IV. Operated in Assam, Meghalaya, Arunachal Pradesh and Manipur

* Indian cement industry is currently ranked second in the world after China.

About the Project

Stage 1-Interect with the Shopkeeper of the Cement,

Stage 2-Interect with End User of Cement

Objective of Stage 1- Study the Cement market of Arunachal Pradesh.

Objective of Stage2-Study the customer view towards available cement brands of Arunachal Pradesh.

Stage- 1Interaction with Shopkeeper

* The Indian cement industry with the total installed capacity of 219 million tons (MT)

1.Available Brands-

Local -Vinay, Pendant Druk, Lakhitop, Prithvi, Zambu shakti, J.k.Cement, Buland, Shaktiman, Topcem, Best.

National- Ambuja, Birla gold, Zuari, Lafarge,Ultratech

Coremandal king, India Cement, Star.

2. Distribution channel.

3. Dull period of the year,

4. Price of Cement- Retailer- 5.65%, Wholesaler- 8.13%.

5. Term & condition of sales of the company.

6. Top brands in the market-star cement, Birla gold, Topcem.

7. Average profit margin- wholesaler (max-8/-, min-6/-) retailer(max-13/-, min-8/-).

8. Irregularity of cement- transportation, payment system, high demand low production capacity, manufacturing unit out of north east, wholesaler weakness etc.

9. Promotional strategy of the brands .

Stage-2Interaction with End User

*Cement growth in India - 11.2% and 12.1% in November and December 2008

1/ Factors consider before buying-

Brand name23%

Price14%

Quality46%

Others17%

* The per capita consumption of Cement in India around 150kgs

2/Most preferable brand-

Star Cement Birla Gold Topcem Vinay Cement Prithvi Cement

Any other0%

5%

10%

15%

20%

25%

30%

35%31%

23%

17%

11% 9%9%

PREFERED BRAND

* World average per capita consumption of Cement is 260kgs

3/ Customer informed about the brand of the Cement-

4/ Interested to use a new brand of Cement-

10

* Growth rate of Cement in Arunachal Pradesh is 13.2%

5/ Satisfaction with the price of the cement-

Extre

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tisfie

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Sat

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nor

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0%8%

23%

46%

23%

PRICE

6/Satisfaction with the regularity-

Extre

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Sat

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Dis-sa

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Extre

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0%

26%34%

29%

11%

REGULARITY

* Indian Cement Production to Grow at 10.5% CAGR by 2013-14

7/ Quantity use per year (Only for Institutional customer)

Small Medium Large Very Large0%

5%

10%

15%

20%

25%

30%

35%

40%

22% 22% 22%

34%

1) 60% local brands, 40% national brands .

2) Dissatisfied with the price of the cement.

3) Distribution channel of cement is deteriorated due to regulation

imposed by the India.

4) Demand low- June to august , demand high- February to March.

5) Most of the customer preferred local brand.

 6) Almost all brands of the cement irregular in the market.

 7) Quality is the main factor consider by the end user .

 8) Dealer recommendation plays a vital role to promote a brand of

cement.

Findings:

8) Workers skin problem due to use of more chemical in cement ,

9) There is very big scope for a new brand of Cement to capture the market. 9) After having more than thirty Local and National brand still Cement market unable to fulfill the demand of the Arunachal Pradesh. 10) Duplicate brand and Weight less than orginal.  11) Star, Birla Gold and Topcem are the brands prescribed by the Government . 

* Bihar becomes India’s fastest growing market for Cement (36% in 2009-10)

1) Monitor the market and awareness camp by the company against duplicate brand.

2) Wholesale distributer for each and every district.

3) To maintain regularity- own transport, Credit facility to the seller, enhance

production capacity as per requirement of the market etc.

4) There should be a regulatory body to maintain the price and quality of the cement.

5)Invest in R & D.

6) Promotion- Newspaper, Regional T.V. Channel

- Coupon pack, Pack in premium, Self liquidator etc.

Suggestions:-

* The cement industry was the only benefited sector due to low rainfall

04/10/2023 17

Presented By-Nandeep Singh MBA/09/022