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Promotional Strategies Maihar Cement

This document is a summer training project report on promotional strategies at Maihar Cement. It was submitted by Ajay Kumar Sahu, a student at Vindhya Institute of Management and Research in Satna, Madhya Pradesh, India. The report provides an introduction to promotional strategies used in marketing, including advertising, personal selling, sales promotion, and public relations. It then discusses advertising in more detail, covering objectives of advertising, rules for effective advertising, and commonly used advertising media such as print, radio, and displays.

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0% found this document useful (0 votes)
125 views71 pages

Promotional Strategies Maihar Cement

This document is a summer training project report on promotional strategies at Maihar Cement. It was submitted by Ajay Kumar Sahu, a student at Vindhya Institute of Management and Research in Satna, Madhya Pradesh, India. The report provides an introduction to promotional strategies used in marketing, including advertising, personal selling, sales promotion, and public relations. It then discusses advertising in more detail, covering objectives of advertising, rules for effective advertising, and commonly used advertising media such as print, radio, and displays.

Uploaded by

Abhay Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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SUMMER TRAININNG PROJECT REPORT

ON
PROMOTIONAL STRATEGIES
AT MAIHAR CEMENT
PROJECT UNDERTAKEN AT

MAIHAR CEMENT SATNA

VINDHYA INSTITUTE OF MANAGEMENT AND RESEARCH,


SATNA M.P (VIMR)

SUBMITTED BY: GUIDED BY: SUBMITTED TO :


AJAY KUMAR SAHU MR.K.P.TRIPATHI DEPT. MBA
MBA III SEM ASST. PROF. VIMR SATNA

1
VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH
SATNA (M.P.)

GUIDE’S CERTIFICATE
This is to certify that MR. AJAY KUMAR SAHU has satisfactorily completed

the Summer Training Project work on “Promotional Strategies at Maihar Cement”

under my guidance for the partial fulfillment of MBA (Semester-III) submitted to

Awadhesh Pratap Singh University, Rewa during the academic year 2014-2015.

To best of my knowledge and belief the matter presented by him is original

work and not copied from any source. Also this report has not been submitted

earlier for the award of any Degree of Awadhesh Pratap Singh University, Rewa.

Place: Satna PROF. K. P. TRIPATHI


Date: / 01 / 2015 (Project Guide)

2
DECLARATION

I do hereby declare that the project entitled “ PROMOTIONAL


STRATEGIES AT MAIHAR CEMENT” a bonafide record of
the work done by me at MAIHAR CEMENT diploma in
Management under the guidance of MR. SWATANTRA
KUMAR and this report has not been submitted to any other
university or institute for the award of any degree/diploma etc.

DATE: AJAY KUMAR SAHU


PLACE- M. B. A. III SEM
VIMR COLLEGE SATNA

3
ACKNOWLEDGMENT
I would like to take this opportunity to express my gratitude and
thanks to MR. G.K.AWASTHI (G.M. MAJHAIR CEMENT), for
their great help, guidance and co-operation during the whole training.

The staff of Maihar Cement, Maihar was very


cooperative helpful and gave their full support to me during my
summer training. I would like to take this opportunity to thank them
for their invaluable help and support.

I highly thankful to Mr. K.P.TRIPATHI (Asst. Prof.)


MBA VIMR Satna whose guidance has helped me to understand
and complete my project in a timely and proper manner.

AJAY KUMAR SAHU

4
TABLE OF CONTENTS

S.N. Contents Page No.

1 Introduction of Project 7-23

2 Company Profile 24-39

3 Review of Literature 40-42

4 Objectives 43-43

5 Research Methodology 44-52

6 Data Analysis & Interpretation 53-65

7 Findings & Suggestions 66-66

8 Limitations 67-67

9 Conclusion 68-68

10 References 69-69

Annexure
11 70-70
Questionnaire

5
PREFACE

Cement is recognized as one major the building block for the development of nation
and a key contributor for infrastructure development.

Cement production commenced in India as early as 1914. Right from the beginning,
this industry faced severe competition from importer followed by price and distribution
controls till 1982. The easing of control and the liberalization process put the cement industry
in vibrant growth path.

In this present cut-throat market competition and current recession in Indian economy,
it is quite pertinent to review the existing operating methodology in terms of financial
activities. In last few years Satna cement works & Maihar Vikas Cement kept the flag of
Maihar Corp. Ltd. Quite high & were showing a good performance in terms of sales & profit,
but the large capacity addition to this industry forced the management to rethink about the
work culture & style of functioning, so that the company may face the competition & not only
retain there market share but also show a consistent growth over previous year.

To take a holistic view on inflow of funds, we conducted a study which was based on
actual monitoring of cash management product provided by State Bank of India and
monitoring of deposits at depots located at different places like Allahabad, Kanpur, Patna &
many others. We are happy to present the report of the analysis which highlights the current
status, problem, prosperity & puts forth suggestion to improve the performance of the
company.

6
INTRODUCTION

7
INTRODUCTION

Promotion Strategy
Once you’ve identified your target market, you’ll have a good idea of the best way to reach
them, but most businesses use a mix of advertising, personal selling, referrals, sales promotion
and public relations to promote their products or services.
Advertising
Selling
Sales Promotion
Public Relations

What is advertising?

Advertising is a form of communication designed to persuade potential customers to choose


your product or service over that of a competitor

Successful advertising involves making your products or services positively known by that
section of the public most likely to purchase them.

It should be a planned, consistent activity that keeps the name of your business and the
benefits of your products or services uppermost in the mind of the consumer.

Why advertise?

The objective of advertising is to increase your profit by increasing your sales. Advertising
aims to:

Make your business and product name familiar to the public


Create goodwill and build a favourable image
Educate and inform the public
Offer specific products or services
Attract customers to find out more about your product or service

The rules of advertising

There are four rules to consider when planning any advertising activity – ie: before you
prepare and book any form of advertising.

Aim - What is the primary purpose of the advertisement? Is it to inform, sell, produce listings
or improve the image of your business?

Target - Who is the target? From which sector of the public are you trying to achieve a
response? For example is it male, female, adult, teenager, child, mother, father etc.

8
Media – Bearing the aim and target in mind, which of the media available to you is the most
suitable – ie: TV, radio, press or Internet?

Competitors – What are your competitors doing? Which media channel do they use? Are they
successful? Can you improve on their approach and beat them in competition?

Developing effective advertising

Good advertising generally elicits the following four responses:

Attention – It catches the eye or ear and stands out amid the clutter of competing
advertisements.

Interest – It arouses interest and delivers sufficient impact in the message or offering.

Desire – It creates a desire to learn more or crave ownership.

Action – It spurs an action which leads to achievement of the ad’s original objective – ie: it
prompts potential customers to purchase or use your product or service.

Making sure your advertisement is legal

Section 52 of the Trade Practices Act (Cth) 1974 prohibits misleading or deceptive conduct.

You must consider the advertisement as a whole and the ordinary meaning of the words used.
You must determine if the people to whom the advertisement is directed are likely to be
misled or deceived by its content.

You can use humour, cartoons and slogans to make your ad stand out, but be sure they’re not
likely to mislead or deceive your audience. The Australian Competition and Consumer
Commission (ACCC) provides advertising guidelines in information circulars that are
available from the local office of the ACCC, or from www.accc.gov.au.

Commonly used media

There are many media options open to advertisers. Which media you use will depend on who
you are trying to reach, what you want to say and your budget. Often a combination of media
(the media mix) can be used to good effect. Remember to keep your branding and message
consistent across all media. This includes use of colours, logos, design elements and fonts.

• Stationery

Stationery, which includes letterheads, envelopes and business cards, is a means by which
your business image or “name identification” is projected. Good quality stationery, used with
care and attention and with a high standard of presentation, is an everyday means of
presenting your business image.

9
• Window display or office front

The external presentation of your business office or shop is one of the principal ways of
establishing your business image. An attractive, well maintained exterior with clear, bold sign
writing is an essential start. Windows should be bright, attractively presented, scrupulously
clean and well lit at night. The display should be arranged neatly and aimed at projecting an
attractive company image and providing a reason to buy your products or services. Above all
it should have sufficient impact to attract attention.

• Press advertising

This is a commonly used form of general advertising and includes advertising in all press such
as newspapers, magazines and journals. Press advertising is suitable for image building,
information dissemination and sales campaigns. It is also a very affordable option for small
businesses.

• Radio

Radio is considered by many advertisers as an ideal medium due to its ability to reach specific
target groups e.g. teenagers, racing followers or grocery buyers. Radio advertising covers spot
adverts (usually 15 or 30 second), promotions or talkback/DJ discussions. Most radio stations
offer packages which include production and extension of your radio campaign through their
websites.

• Television

Television is a powerful advertising medium because it creates impact through sight, sound
and movement however the cost of producing the advertisement and procuring sufficient air
time to allow the campaign to work often makes it prohibitive for small business.

• Direct mail

This is a broad category covering direct communication with the consumer through email,
post or fax. It can include newsletters, catalogues and letters. If you plan to use email, be sure
to comply with national anti-SPAM legislation which makes it illegal to send unsolicited
commercial electronic messages. Visit the Australian Communications and Media Authority
website for more details - www.acma.gov.au.

• Outdoor

This is any type of advertising which is done outdoors, including static advertising such as
billboards, backs of street benches and bus shelters or mobile advertising displayed on buses,
trains, taxis or towed signage.

10
• Ambient

Refers to any form of advertising that occurs in a non-standard medium outside the home, and
usually where your consumers are likely to be. It’s limited only by your imagination and
includes things like advertising on the back of shopping receipts or toilet doors at the cinema,
placing branded coasters at the local pub, projecting onto buildings, advertising inside lifts or
distributing branded cups.

• Cinema

You can purchase cinema advertising by individual cinemas or screens for a set amount of
screenings or “runs”. Most providers offer packages which include production and screening
of your advertisement

• Point of Sale

Advertising at the point where the consumer makes a purchase decision eg: floor stickers, in-
store digital advertising, shopping trolley signage, shelf or counter posters or playing
interviews about your product in store.

• Online

The options for online advertising continue to grow rapidly. They include advertising on your
website, advertising on other websites, creating links to your website from other websites,
publishing blogs, offering online product games, social networks and forums.

• Directory listings

Many consumers use business directories to find a supplier. Directories include the yellow or
white pages, union directories, trade directories or local business directories.

Evaluating the effectiveness of your advertising

Famous American department store merchant John Wanamaker (1838-1922) was attributed as
saying “Half the money I spend on advertising is wasted – the trouble is I don’t know which
half.” This quote is often still true today as many businesses do not evaluate the effectiveness
of their advertising.

Evaluating effectiveness can be as simple as staff asking every new customer “How did you
hear about us?” or asking every customer that responds to an advertised special “where did
you see or hear our advertisement?”

Whatever method you use, it is absolutely critical in getting top value for your advertising
dollar by finding out which media works and which doesn't.

11
2. Selling

What is selling?

Put simply, selling is the exchange of goods or services for an agreed sum of money.

Depending on the circumstances, a sales transaction can include one, some or all of the
following stages.

Prospecting and qualifying – identifying qualified prospects ie: those that are likely to want or
need your product or service and can afford to pay for it.

Pre-approach – undertaking research about prospects to assist in the actual selling process.

Approach – making actual contact with the prospect in person, by phone or in writing.

Presentation and demonstration – presenting and demonstrating the features and benefits of
your product or service in order to convince the prospect that their want or need can be
satisfied.

Handling objections – demonstrating the product or service value to overcome real or


perceived objections or misunderstandings that are impeding the purchase decision.

Closing – bringing the selling process to a successful conclusion by either asking for the order
or responding to a positive decision from the prospect.

Follow-up – proactive or reactive contact with the purchaser to establish their satisfaction
level and to address any problems that may exist.

In planning the selling element of your marketing strategy you will need to consider the
following:

The size and structure of your sales team


Recruiting, training, motivating and evaluating individuals and the team as a whole
The remuneration structure
The location/territory to be serviced
Management and communication systems

Selling is a particularly important element if you are marketing services because the purchaser
of a professional service is in fact buying the capabilities of the seller. So he or she would be
closely evaluating the behaviour and characteristics of your sales person, your business, its
reputation, facilities and appearance.

12
3. Sales Promotion

What is sales promotion?

Sales promotion relates to short term incentives or activities that encourage the purchase or
sale of a product or service. Sales promotions initiatives are often referred to as “below the
line” activities.

What are the major sales promotion activities?

Sales promotion activities can be targeted toward final buyers (consumer promotions),
business customers (business promotions), retailers and wholesalers (trade promotions) and
members of the sales force (sales force promotions). Here are some typical sales promotion
activities:

Consumer promotions

Point of purchase display material


In-store demonstrations, samplings and celebrity appearances
Competitions, coupons, sweepstakes and games
On-pack offers, multi-packs and bonuses
Loyalty reward programs

Business promotions

Seminars and workshops


Conference presentations
Trade show displays
Telemarketing and direct mail campaigns
Newsletters
Event sponsorship
Capability documents

Trade promotions

Reward incentives linked to purchases or sales


Reseller staff incentives
Competitions
Corporate entertainment
Bonus stock

Sales Force Promotions

Commissions
Sales competitions with prizes or awards

13
Back to top
4. Public Relations

What is public relations?

The Public Relations Institute of Australia (PRIA) defines Public Relations (PR) as: “The
deliberate, planned and sustained effort to establish and maintain mutual understanding
between an organisation (or individual) and its (or their) publics”.

Put more simply, public relations is about building good relations with the stakeholders
(public) of your business by obtaining favourable publicity, building a good corporate image
and handling or heading off unfavourable rumours, stories and events.

By building good relationships with your stakeholders, particularly customers, you can
generate positive word of mouth and referrals from satisfied customers.

Who is a stakeholder?

Stakeholders are the various groups in a society which can influence or pressure your
business’s decision making and have an impact on its marketing performance. These groups
include:

Clients/customers
Staff
Shareholders
Strategic partners
Media
Government
Local community
Financial institutions
Community groups

Operationally, stakeholders really refer to those groups that your business is or should be,
communicating with.

What are the main public relations tools?

Typical PR tools include:


News creation and distribution (media releases)
Special events such as news conferences, grand openings and product launches
Speeches and presentations
Educational programs
Annual reports, brochures, newsletters, magazines and AV presentations
Community activities and sponsorships

14
What are the key steps in implementing public relations?

Implementing effective public relations activities requires careful planning. The three major
steps are outlined below

Setting the objectives – what is it you want to achieve and who do you want to reach? Is it to
create awareness of a new product or service to your existing clients, to overcome community
misconceptions about your business or to create a positive impression with your bank
manager?

Deciding on the message and the vehicle – what is the major thing you want to communicate
and what public relations tools will you use to get the message to its target?

Evaluating the results – did you achieve the desired result and did it lead to a positive
outcome?

Many small businesses do not devote enough attention to public relations in their promotional
mix but done properly, it can be a powerful and cost effective business development and
marketing tool.

INTRODUCTION TO PRODUCT:-

OVERVIEW

Cement is a binder which sets and hardens independently , and can bind other materials
together.

Cement is an essential component of infrastructure development and most important


input of construction industry , particularly in the government’s infrastructure and housing
programs, which are necessary for the country’s socioeconomic growth and development.

Cement ranks second in volume among the industrial products manufactured in the
world, and it is the most widely used man-made product .

Cement is poly-phased inorganic compound of complex nature formed by burning of


calcareous and argillaceous raw materials as a binding material.

Cement is used as binding material in various types of civil constructions. Earlier, clay
or lime was used for binding materials together .

15
Its properties includes-
1) Low cost, high performance.

2) Binder with almost any hard material.

3) Building block.

4) Gain strength progressively with ageing.

5) Substitutes with steel, polyester, epoxy-resin, plasticizers.

With advancement in manufacturing technology, today cement is a completely technical


product. Various types of grades of cement are being manufactured to satisfy different
needs of the construction industry.

However, cement is still considered as a non-technical product


and used in a traditional and often unscientific manner.

Cement is the preferred building material in India. It is used extensively in household


and industrial construction. Earlier, government sector used to consume over 50% of the
total cement sold in India.

But in the last decade, its share has come down to 35%. Rural areas consume less than
23% of the total cement.

There are around 11 different types of cement that are being produced in India .
Some of the various types of cement produced in India are :

1) Clinker Cement

2) Ordinary Portland Cement (OPC)

3) Portland Blast Furnace Slag Cement (PSC)

4) Portland Pozzolana Cement (PPC)

5) Rapid Hardening Portland Cement

6) Oil Well Cement

16
7) White Cement

8) Sulphate Resisting Portland Cement

The production of PPC & PSC is based on Fly Ash & Blast furnace slag, the waste
product of thermal power & steel plant respectively.

To become successful in in such a competitive environment the business organizations


have to be customer oriented. Customer’s need & want must be

taken care of. Customer must be delighted. This information about the market could be
collected by the way of proper market survey .

The project was carried out for knowing prevailing market condition of Birla gold
Cement in Satna Region. The second objective of the project was to study the sales
promotion activities undertaken by Birla gold and its other competitors.

CEMENT COMPOSITION

1) P.P.C. contains:-75% clinker, 20% fly ash & 5% gypsum.


2) O.P.C. contains: - 95% clinker & 5% gypsum.

GRADE OF CEMENT

The grade of cement shows the compressive strengths of the cement. It is measured in
MP (Mega Pascal) or kg/square cm. it is of following types:

1) 33 Grade: it means the compressive strength of the cement is 330 kg/square cm.
2) 43 Grade: it means the compressive strength of the cement is 430 kg/square cm.
3) 53 Grade: it means the compressive strength of the cement is 530 kg/square cm.

17
THEORETICAL BACKGROUND

PROMOTION :-

Promotion is persuasive communication. it is highly visible element in the marketing


mix . It tells the target customer product, price, & place.
It tells also known as marketing communication. Promotion consist of activities that
facility exchanges with target customers through persuasive communication to stimulate
demand.

According to Professor Philip Kotler:-


“Promotion includes all the activities the company undertakes to communicate & promote
its products to the target market.”
FUNCTIONS OF PROMOTION:-

18
Promotion is a tool to influence target customer & to face competition. It performs four
functions:-
1) Information
2) Persuasion
3) Reminding
4) Reinforcing

PROMOTION MIX :-

The promotion mix is the combination of advertising, public relations; sales promotion,
personal selling & direct marketing tools that help achieve marketing objectives.

1) ADVERTISING :-

Advertising is any paid form of non-personal communication by an identified sponsor


to promote product.

2) PUBLIC RELATION :-

It refers to programs designed to promote or protect a company image & products.


Publicity is any unpaid form of communication through media about an organization,
its policies & products.

3) PERSONAL SELLING:-

Personal selling is personal communication with customers to persuade them to buy


products. It permits interaction & relationship building .sales person provide feedback
about the market, competitors & customers.

4) DIRECT MARKETING:-

It is persuasion by manufacturer to specific customers. The tools of direct marketing are;-


a) Face to face selling.
b) Mail.
c) Catalogue marketing.
d) Telephone.

19
e) E-mail.

5) SALES PROMOTION :-

Sales promotion has been increasing in popularity as tool. Sales promotion refers to
short term incentives to stimulate demand. It consists of diverse set of incentive tools
used for promotion of products & services aimed at customers, trade & sales force.

According to Professor William J.Stanton;-


“Sales promotion refers to demand –stimulating devices designed to supplement
advertising & facilitate personal selling.”

NATURE OF SALES PROMOTION:-

1) It is short term.
2) It provides incentives.
3) It aims at quicker response.
4) It is directed at target audience.

OBJECTIVES OF SALES PROMOTION:-

1) Objective for consumer promotion :-


a) Encourage greater purchase volume.
b) Attract new customer.
c) Introduce new products.

2) Objective for trade promotion :-


a) Carry & push new item.
b)Increase reseller’s inventories.
c) Attract new channel members.
d)Better store display
3) Objective for sales force promotion :-
a) Motivate sales force.
b) Support new product.

METHOD OF SALES PROMOTION:-

Sales promotion methods differ according to target audience. They can be directed at
consumer promotion, trade promotion & sale force promotion.

20
Consumer promotion method :-

 Free sample
 Coupons
 Push strategy
 Pull strategy
 Free trail
 Rebates
 Premium
 Price off
 Contests
 Display/demonstration

a) Trade promotion method :-

 Free goods
 Allowance
 Price-off
 Sales contest
 Gift items
 Credit facilities
 Trade show

b) Sales contests

 Trade shows & conventions


 Gift items
 Promotional kits
 Bonus & commissions

FUNCTIONS OF SALES PROMOTION:-

Sales promotion is a set of diverse activities.

It is a collection of short term incentive tools.

It helps in providing an incentive to buy.

It helps in increasing sales in a certain period of time.

It helps in inducing trail & engaging consumers in the adaptation period.

21
It helps in reducing buyer’s risk.

Sales promotion programs help in developing consumer’s loyalty.

It also helps in reducing dissonance for product & services.

IMPORTANCE OF SALES PROMOTION:-

Sales promotion programs play an important role in the life of a product & company.

The broader usage of sales promotion programs is:-

 To generate additional sale for the product.

 To counter the competitive moves.

 To generate sales during off seasons.

By the above points I have analyzed that there are many techniques of sales promotion such
as:
c) Consumer promotion method :-
 Free sample
 Coupons
 Push strategy
 Pull strategy
 Free trail
 Rebates
 Premium
 Price off
 Contests
 Display/demonstration

d) Trade promotion method :-


 Free goods
 Allowance
 Price-off
 Sales contest
 Gift items
 Credit facilities
 Trade show

e) Sales contests
 Trade shows & conventions
 Gift items
 Promotional kits

22
 Bonus & commissions etc.

I have analyzed that the BIRLA GOLD GOLD CEMENT COMPANY are using different
types of promotional strategies for increase in sales such as:

 Dealer contests
 Price-off
 Display
 Rebate etc.

For dealers contest-


I have observed that marketing managers make a proper plan
and give target to the dealers.

For price-off-

I have observed that marketing managers have organized meeting inside


the company and decides price-off strategy is suitable or not according to market conditions.

For POP-
POP is stands for Point of Purchase. The BIRLA GOLD GOLD
Company has used POP in different places for increase in sales.

23
24
COMPANY PROFILE

Overview

Maihar Cement (Maihar gold gold Gold) is well-established brand in Bihar region, besides it

has market in Madhya Pradesh, Uttar Pradesh, Orissa and other parts of the Country. One of

the major section, which requires or purchases cement in bulk quantity are engineers,

architect, builders and contractors. This section or segment is known as the non-trader

segment. And the retailers, stockists, whole-sellers are known as trader segment.

The project was carried out in the organization of Maihar cement. There are five major market

players in cement industry of these areas. They are Jaypee, Maihar gold gold Gold, Ultratech,

ACC, and Maihar gold. Apart from these there are few local brands such as Maihar gold gold

Gold (M.P. Maihar gold gold group) in Madhya Pradesh which is selling in the market. The

information about the market was gathered by visiting retailers in the market. Interview of

retailers was taken depending upon there accessibility. Also opinion of engineers, contractors,

architects and builders (who posses knowledge regarding different brands available in the

market) has been taken. Survey was done for both trade and non-trade segment to get the right

picture about the market scenario. While doing the project attempt was made to collect

maximum information about the market. To get actual and correct information, it was not told

retailers that the survey is conducted by Maihar Cement for confidentiality reasons. Large

numbers of retailers were visited to get the actual picture of the market. Again, the retailers of

25
each grade (according to the performance) were visited, to get each and every detail about the

market.

Century Textiles and Industries Ltd. was incorporated in 1897 as a Public Limited

Company with its Registered Office at Mumbai. Till 1951, the Company operated only one

Cotton Textile Mill in Mumbai. Thereafter, the Company has made rapid progress in

expanding and diversifying its activities and today it is a well diversified conglomerate. The

details of activities presently being carried on by the Company are as under:-

26
(I) Business Segment – Textiles

(a) Cotton Textiles, Yarn and Denim

The Company's Yarn Division situated at Satrati, near Indore, (Madhya Pradesh) is equipped

with 24960 spindles for manufacture of Yarn and produced about 4,541 tones of yarn during

2008-2009. The Denim Division of the Company situated at the same location i.e. Satrati,

near Indore, (Madhya Pradesh) can produce 21 million meters of denim fabrics per annum.

(b) Century Rayon - VFY, CSY & Rayon Tyre Yarn

In 1956, Company began its Rayon Division at Kalyan, near Mumbai to manufacture Viscose

Filament Rayon Yarn and today it is one of the largest producer of Viscose Filament Yarn

(VFY) in India. In 1963, it also commenced production of Viscose Tyre Yarn / Industrial

Yarn followed by production of Caustic Soda in 1964 and other chemicals.

(II) Business Segment – Century Pulp and Paper

Rayon and/or paper Grade Pulp and Writing & Printing Paper Unit with an installed capacity

of 20,000 tones each per annum was established in the year 1984 at Lalkua near Nainital

27
(Uttarakhand). The Company presently is producing over 39,000 tones of Writing & Printing

Century Pulp & Paper– Paper (Wood based) and about 37,000 tones of Rayon and/or paper

Grade Pulp per annum.

(III) Business Segment - Cement

In 1974, the Company diversified into production of Cement by establishing its first cement

plant at Baikunth, near Raipur (Chhattisgarh) to produce 0.60 million Tones Per Annum

(TPA) of Portland cement. The present capacity is 2.10 million TPA.

In 1980, the Company established its second Portland cement plant at Maihar (Madhya

Pradesh) with a capacity of 0.80 million TPA. The present capacity is 1.80 million TPA. In

1985, the Company established its third Portland cement plant at Gadchandur, Dist.

Chandrapur (Maharashtra) with a capacity of 1 million TPA. The present capacity is 1.90

million TPA.

In 1995-96, the Company's fourth Portland Cement Plant with a capacity of 1 million TPA

adjacent to the existing plant at Maihar started commercial production. The present capacity is

2.00 million TPA. Thus, the total present cement manufacturing capacity is 7.80 million TPA

(of all 4 plants).

Century Cement - Maihar Cement - Manikgarh Cement -

INDIAN CEMENT INDUSTRY

28
Cement is the preferred building material in India. It is used extensively in household and

industrial construction. Earlier, government sector used to consume over 50% of the total

cement sold in India, but in the last decade, its share has come down to 35%. Rural areas

consume less than 23% of the total cement. Availability of cheaper building materials for

nonpermanent structures affects the rural demand. The Indian Cement industry is the second

largest cement producer in the world. The industry has undergone rapid technological

upgradation 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. 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. There are around 11 different types of cement that are being produced

in India. The production of all these cement varieties is according to the specifications of the

BIS (Bureau of Indian Standards). Some of the various types of cement produced in India are:

Clinker Cement, Ordinary Portland Cement

Portland Blast Furnace Slag CementPortland Pozzolana Cement

Rapid Hardening Portland Cement,Oil Well Cement

Prop. Century Textiles and Industries limited

29
B.K. Maihar gold gold

Chairman

Century Textiles & Ind. Ltd.

Chairman’s Message

“I believe that the Fortunes of Century Textiles & Industries Limited rest solely on its

continuing ability to evolve and successfully implement new techniques and systems to

anticipate future trends and zero in on to them, to be in short, a company that is plugged into

tomorrow..”

“Complete Customer Satisfaction and fulfilling the expectations of society is the key to

success of any business enterprise in Global Economy”.

The City of the Goddess and Music

30
Maihar’s fame emanates from the Sharda Devi Temple, located at a distance of about 6 km.

from the town. Thousands of pilgrims from all over the country , coverage at this temple,

climb hundreds of its steps and pass through the narrow passage leading to Devi’s idol for her

audience and blessings, admit and chanting of the mantras and changing of the bells.Maihar

has also been the auction centre of one of greatest

musicians of modern, “Late Ustad Allauddin khan” fondly remembered as Baba. “

Sarlanagar – the Cementing Community

Maihar Cement, A division of century Textiles & Industries ltd. Located at Sarlanagar

Maihar-dhanwahi road in Satna district of Madhya Pradesh on north—eastern slope of Rewa

— Kymore Range.

Its towering silos, silent chimneys, serpentine conveyor belts multistoried preheaters, concrete

roadways, provide avisual extra vaganza. A modern industrial temple carved out of what was

previously a sprawling, barren and bare rock – information.

31
Tradition

Maihar Cement is a division of Century Textiles & Industries Ltd., belonging to the BK

Maihar gold gold Group of Companies, a leading Business House with its presence in Core

Industries like Textiles, Rayons, Chemicals, Paper & Pulp and Cement, which has been at the

vanguard in generating wealth for the Nation.  Our heritage of being a part of this group

carries with it a commitment to quality. All our Products meet the most stringent and exacting

standards of our growing list of loyal customers who are engaged in building Modern India.

Technology

Our Group’s Core Value of Quality has built for us an invincible reputation and for this, the

finest technology was sourced from world renowned manufacturers and state-of-the art

equipment installed for energy efficient and pollution free large scale cement production. The

32
presence of superior technology is also evinced in our various quality initiatives which have

fetched for us the coveted ISO-9001, an International Certification for “Quality Management

System”. We have also got the ISO-140001 Certification for “Environmental Management

System” which amply reflects our commitment to the environment.

Trust

Our Customer is the focal point for all our endeavors and what we value most is their trust in

us, whether that be in the aspect of reliability of supply or in the aspect of quality assurance. 

An extensive distribution network and a retail chain of thousands of outlets stretching across

the length and breadth of regions, play a vital role in taking our cement units closer to the

customer’s doorsteps.  Further, our efficient and responsive technical staff excel in providing

quick and expert care so as to enable thousands of users to keep smiling and ever wanting our

products.

Plants of Century Textiles & Industries Limited:

MAIHAR CEMENT

CENTURY CEMENT

33
MANIKGARH CEMENT

Figures in Million

Units TPA

2009-10

Century Cement 2.1

Maihar Cement 4.2

Manikgarh Cement 1.9

Total 8.2

Maihar Cement is pioneer in producing Blended Cement i.e. Portland

Pozzolana Cement .  The motivation for the production of blended

cement has been primarily with the aim of preserving limestone reserves

and environment.

Advantages

 low Heat of hydration resulting in resistance to cracking.

34
 Resistance to corrosive water and chemical attacks and thereby longer life to

steel/iron structure underneath.

 High degree of impermeability and workability for the concrete mix.

 Higher ultimate strength at longer duration

 Higher degree of fineness, resulting in - Complete chemical reaction

 Easy workability

 Increased plasticity

 Reduced Alkali aggregate reaction  as also free lime expansion and thereby

resistance to cracking.

 Lower drying shrinkage and low leaching value.

Maihar Cement has been bestowed upon several awards both at the National as well as

Regional Levels. Some of the Important Awards won till date:

NATIONAL AWARD FOR ENERGY EFFICIENCY FROM   NCCBM

 Best Improvement in Energy Performance 1991-92

35
 Best Improvement in Thermal Energy Performance 1991-92

 Best Improvement in Electrical Energy Performance 2000-01 & 2003-04

 Best Improvement in Energy Performance in manufacture of Blended Cement 2003-04

  OTHER NATIONAL AWARD

 Abheraj Baldota Environment Award for 1995-1996 from FIMI

 National Safety Award for outstanding performance in Industrial Safety

 Lowest average frequency rate as runner up for the award year 1998

 Longest accident free period as runner up for the award year 2001

 Longest accident free period as runner up for the award year 2003

 Accident free year as runner up for the award year 2005

 Accident free year - Best for the performance year 2005

 National Energy Conservation Award for 2001 from Govt of India

 Social Awareness Award for 2002-03 from FIMI

FL SMIDTH AWARDS

 First Prize for lowest electrical energy consumption per tonne of cement & clinker

produced amongst modern plants using VRM Technology situated in Chhattisgarh &

Madhya Pradesh for the year from 1998-99 to 2005-06.

 First prize for the lowest electrical energy consumption per tonne of cement

production for the year 2006-2007 amongst modern cement plants using VRM

technology situated in the State of Madhya Pradesh and Chhatisgarh.

 First Prize for Minium Auxiliary Power Consumption with respect to Captive Thermal

Power Generation for the year 2005-06.

36
ISO CERTIFICATIONS

 IS/ISO 9002:1994

 IS/ISO 9001: 2000

MANAGEMENT

Maihar Cement is managed by board of directors comprising of: -

1. Shri B.K.Maihar gold gold

2. Shri Kumar Managalam Maihar gold gold

3. Shri P.K.Daga

4. Shri E.B.Desai.

5. Shri Arvindp C. Dalal

6. Shri Amal Ganguli.

7. Shri B.L. Jain (whole time director)

STRUCTURE

Unit 1

Shri Kamal Kishore President (co-ordination)

Shri R.S.Doshi Executive President (Finance)

Shri R.K. Vaishnavi Executive President (plant)

Shri P.M. Intodia Joint President (Marketing)

Shri Vijay Kumar Sr. Vice President (Process and Quality Control)

Shri Ajay Kumar Jain Vice President (Production)

Shri M.P. Joshi Vice President (Electrical)

Shri. O.P. Moondra Vice President (Instrumental)

37
Shri A.S. Thakkur Vice President (Store)

Shri P.K. Agrawal Vice President (Purchase)

Unit 2

Shri B.P.Jain President (Technical)

Shri V.K.Bhandari Executive President (Commercial)

Shri Rakesh Sharma Joint President (Personnel and Administration)

Shri S.K.Tiwari Sr Vice President (Mines)

Shri Arvind Kumar Jain Vice President (Mechanical)

KEY ACTIVITIES OF PERSONNEL DEPARTMENT

Recruitment and selection

Induction

Training and Development

Performance appraisal

Promotion

Administration of contract labour

Industrial relations

Event management

Canteen upkeep

Grievance handling

Transportation upkeep

Estate Management

Hospital administration

School/College management

38
Thrift / Co-operative society management

Yoga & Naturopathy centre administration

Guest house/ recreation centre management

Handling legal cases

Safety & security

Structural Chart of Personnel & Administration Department

Rakesh Sharma
Joint President (P&A)

H.P.Tiwari
(VP P&A Admin.)

G.K.Awasthi
Sr.Mgr.
(Finance).)

B.K.Dwivedi
Paras C. Jain
Dy Mgr.(Adm.)
Mgr. (Adm.)

B.L .Agrawal
Mgr.(Welf)
R.P.Tiwari
Mgr(Admn.)
O.P.Gautam
39 Mgr (Admn)
REVIEW

OF

40
LITERATURE

Industry has been defined “as a process in which changes of a series of


strategically production are taking place and it involves those basic changes that
accompany the mechanization of an enterprise. The building of a new industry and the
opening of a new territory”

The achievements in the field of industrial development during the past three
decades in India have been significant and substantial in many respects

There is considerable literature on cement industry befitting, its long and


chequerred history and high economic importance. A good deal of analytical literature
exists at broad levels covering problems associated with productivity, financial
performance, size and technology, manpower and location.

Gupta.M.C.(2000)discussed the study revealed that profitability of the units has


been consistently good things largely to the partial decontrol of cement.

HarshDwivedi (2001)discussed to its wider ramification, analyzing among other


things, stages of control, marketing practices, trends and innovation, consumer
preference and importance of management. He found that existing capacity were

41
inadequate to meet the growing demand for cement and marketing practices lacked
depth and realism.

R.Ramanujam (2005) discussed its wider ramification, analyzing among


covering all aspects of cement unit, cost of production, productivity, marketing and
finance. He found that in the liberalized economy, the industry has a favorable market
factories affect capacity utilization viz., power cut, inadequate supply of coal and its
poor quality and shortage of forenighe wagone, with all these areas under government
control, the gult must take necessary steps to remove the hurdles

M.selvaraj(2007)discussed to the limited aspects of cement unit like finance,


administration, human resource and marketing aspect etc. he found that as cement
market has turned out to be a buyers market in recent years, effort should be made by
the government and cement manufacturers association to popularize cement by
exhibiting various uses of cement and thus creating an increase in the demand of
cement.

K.shanmuga Vadivu (2011) discussed the research study has brought sufficient
market opportunity for the cement industry in different areas in Karur district, it has
been brought out in the report that. The various problems faced by the dealer, the trend
in cement industry. Almost all the companies understood customers insipid for quality.
The need of the hours is to have an effective distribution network so that supplies reach
and in time to customers. This will also help to ensure increased sales and promotion
activities.

1. M.C. Gupta, profitability analysis of cement industry with special reference to


Rajasthan 1988.

2. Harsh Dwivedi, cement industry in India Marketing perspectives, New Delhi:


Classier Publishing House, 1994.

42
3. R. Ramanujam, study on cement industry in Tamilnadu, 1996.

4. M.selvaraj, financial administration and human management in Indian cement


industriy,1996.

5. K. Shanmuga Vadivu, A study on marketing of cement in chettinad cement


corporation Ltd., puliyar at karur district in tamilnadu, 2002.

OBJECTIVE

OBJECTIVES
::: To know the customers preference for the brand of cement.

::: To know the preference of retailer for sorting different brand of cement.

::: To understand the effectiveness of various sales promotion activities of


cement.

::: To analyze the sales promotion activities of various brands

::: To analyze the transportation facilities for Birla gold & other cement
companies.

43
Thus it attempt to find ways to increase market share, to increase
customer satisfaction & thus increase the business prospects .

44
Research Topic

Research Objectives

Research Methodology

Introduction of Topic

Data Collection

Data Analysis & Interpretation

45
Conclusion of Minor Project Report

Suggestion of Minor Project Report

Limitation of Minor Project Report

Primary Objectives-
To study the effectiveness of sales
promotion in Satna Region for birla gold Cement Ltd.

Secondary Objectives-
 To analyze the satisfaction level of the dealers.

 To carry out market survey for knowing prevailing market conditions of


Maihar Cement in Satna (M.P)

46
 To study the sales & promotion techniques undertaken by birla gold
Cement & other player in the market.

 Research Design

 Sampling

 Sample Size

 RESEARCH PROCESS

47
Marketing research-
Marketing Research is the systematic & scientific search for collecting the
desired information from representative sample of the relevant population.
Research in common parlance refers to SEARCH FOR KNOWLEDGE.
Research may be define as the objective and systematic method of finding solution to a
problem i.e. systematic collection, recording, analysis, interpretation & reporting of
information about various facts of a phenomenon order study.
In other words research refers to the systematic method consisting of enunciating
the problem collecting facts or data. Analyzing the facts cortically and reaching conclusion
based on them.

Research Methodology-
“Research methodology is a way which is knows to me what to be done or how
to be done in systematically & scientifically.”
Research methodology refers to the various sequential steps to be adopted by
research in studying a problem with certain object/objects in view. It would be appropriate to
maintain that research projects are not susceptible to any one complete and inflexible
sequence of steps and the type of problems to be studied will determine the particulars steps to
be taken and their order too. However, the following steps provide a useful procedural
guideline so for as research methodology is concerned.
 Tentative selection of the topic of research.
 Initial survey of literatures.

48
 Defining or selecting the research problem.

 Extensive literature survey.


 Specification of the information required: Formulating the hypothesis
 Design of the research project.
 Sample Design
 Collection of data.
 Execution of the project.
 Analysis of Data
 Testing the hypotheses.
 Reviewing at generalizations.
 Preparation of the report.

Sampling-
Sampling studies are becoming more and more popular in all types of mass study. The
result of sampling has attained a sufficiently high standard of accuracy.
A sample of 50 respondents was chosen – the selection was made through the combined
approach of Random sampling & Convenient Sampling.

Sample Size-
The sample size for the survey of dealers was about 50, which were covered Satna district.

Research design-
Research design is purely and simply the frame work or plan for a study that guides the
collection and analysis of the data.
I have chosen Descriptive Research Design.

49
Research process

Problem formulation

Review the literature

Hypothesis analysis

Data Collection

Data Analysis

Report Writing

50
Overview-

Since the cement is a core product & being used


by all types of consumers, so our focus for collection data was each & every man who are
directly or indirectly involved with the sale or use of cement .

To know the position of birla gold Cement in the trade & non-trade segment regarding
sale in comparison with the other brands on the basis of attributes of cement has been done.
For this purpose, opinion of dealers has been taken. This might be helpful to draw the right
pictures about the market scenario.

This was convenient in nature because I would have to account only those people who
actually require or purchase cement in bulk quantity. The survey is conducted with the help of
questionnaire method & survey is conducted in the Satna region.

Methods of data collection-


Every type of research requires two types of data to be
collected to reach up to any conclusion. As the topic was concerned with “effectiveness of
sales promotion”, the primary and secondary data is very much important.

1) Primary data-
Primary data are those data, which are directly obtained
from people by approaching them individually, primary data are generated when the
researchers employing mail questionnaire, telephone surveys, personal interviews,
observations & investigates a particular problem at hand.

For this project primary data was collected from dealers by


using survey method. Data collection from respondents was carried out with the help of
Questionnaire schedule.

In this method data was collected from respondents through questionnaires.

51
2) Secondary data-

Secondary data, on the other hand, includes those data, which are
collected in the past for other research work & are being used in current project work.
For this project secondary data was collected from the organization, internet, magazines
and some books.

Sample design-
The sample of the research has been taken from Satna Region in M.P.

52
 Overview

 Methods of data collection

53
Data analysis & Interpretation-
Data analysis is 5th most important
step of research process. When we have collected the data after then we have
analyze the data. Data analysis is a process for analyzing the data.

There are many statistical tools are used for data analysis, such as:-

 Pie chart
 Bar graphs
 Cluster average

54
 Percentage method
 Tabulation chart

In this project we have used Pie chart for data analysis and interpretation.

Que.1) Which brands of cement do you sell?


a) Jaypee b) birla gold c) Prism d) other.

55
jaypee
birla gold
Prism
other

Interpretation:-
The above chart is showing that most of the dealers of Satna
Region are selling birla gold Cement.

Que.2) Which company runs sales promotion schemes regularly?


a) Jaypee b) BIRLA GOLD GOLD c) Birla gold d) Acc.

56
Interpretation:-
The above chart is showing that the Birla gold Cement Ltd. runs
sales promotion schemes regularly.

Que.3) which type of sales promotion schemes companies runs most?


a) Free sample b) rebate c) price off d) credit facilities
e) bonus/commission.

57
free sample
rebate
price off
credit facilities
bonus/commission

Interpretation:-
In this chart we have analyzed that mostly company’s runs price –
off sales promotion scheme rather than other sales promotion schemes.

Que.4) which type of sales promotion schemes affects your


sales/profit greatly?
a) Price off b) gift items c) credit facilities d) free trail.

58
price off
gift items
credit facilities
free trail

Interpretation:-
In the above chart we have interpreted that price-off sales promotion
scheme also affects the company’s sales/profit.

Que.5) How much sales increase during the sales promotion scheme?
a) Less then 10% b) 10%-20% c) 20%-40% d) more then 40%.

59
less then 10%
10%-20%
20%-40%
more then 40%

Interpretation:-
The above chart is showing that more then 40% sales increase
during the sales promotion schemes.

Que.6) which sales promotion schemes are more effective for increase
in sales?
a) Gift items b) credit facilities c) price off d) commission.

60
gift items
credit facilities
price off
commission

Interpretation:-
In the above chart we have analyzed that price-off and gift-items
sales promotion schemes are more effective for increase in sales.

Que.7) In which company provide proper guidance & assistance while


running this sales promotion scheme?
A)BIRLA GOLD b) Jaypee c) birla gold d) Acc.

61
Interpretation:-
The above chart is showing that Birla gold cement industry &
Jaypee cement industry are providing proper guidance & assistance for
running sales promotion schemes regularly.

Que.8) which company runs more sales promotion schemes?


a) Birla gold b) Prism c) Jaypee d) Acc.

62
Interpretation:-
In the above chart we have interpreted that Birla gold & Jaypee
both companies runs more sales promotion schemes.

Que.9) which type of promotion mix is more suitable for increase in


sales in short term?

63
a) personal selling b) direct marketing c) advertising d) sales
promotion
e) Public relation

personal selling
direct marketing
advertising
sales promotion
public relation

Interpretation:-
The above chart is showing that mainly sales-promotion schemes &
advertising are more suitable for increase in sales in short run.

64
Que.10) which types of sales promotion schemes do you expect from
the company?
a) Gift items b) price off c) rebate d) credit facilities e) free-trail.

gift items
price off
rebate
credit facilities
free-trail

Interpretation:-
In the above chart we have interpreted that most of dealers are
expect price-off and gift-items (sales promotion) schemes from the
company.

65
SUGGESTIONS OF MINOR RESEARCH
PROJECT
On interviewing dealers/retailers the most important thing they
said was about the price flexibility, they want that the company should give
them the price flexibility to play in the market.

 The company should provide some sales promotional tools like gifts,
discounts to the dealers who can give discount to the consumers and
increase the sales.

 Most of persons are motivated by advertisement over product quality. So


the company should be provided extensive advertisement campaign to the
dealers and customers.

 The company should publish and provide booklets to the users of Birla
gold gold cement.

 Birla gold gold cement should provide considerable margin to the dealers
to encourage them for selling of product.

 Birla gold gold cement holds good position owning to its price. It should
be try to hold this position with continuous efforts by increasing
promotional activities.

 Availability of cement should be something fast. Irregular and poor


lifting dealers should be terminated.

 The visits of company engineers at the consumer site should be increased.

66
LIMITATION

 Lack of cooperation from the retailers in regard to giving interview.

 It was experienced during the survey that it was difficult to convince or


make the retailers & dealers understand the important of the project.

 As the retailers & dealers thought that it was unwise for to give their
details of business as they feared competitors would take advantage.

67
CONCLUSION OF MINOR RESEARCH
PROJECT

To attain the objective of the project detailed information was


collected from the market of Satna. The final picture that emerged from the
analysis of data obtained from various sources as mentioned earlier is mentioned
as conclusions of the study.

 Sales-Promotion is the most important factor which


influences purchasing.
 Birla gold covers 75% in carrying out promotional
activity and holds first position in doing so.
 JP provides the maximum discount schemes to the dealers
so to increase their sales margin.
 According to my study I found that BIRLA GOLD
CEMENT is having a high demand in the market by the
dealer because they are very much influenced by the
promotional.

68
BIBLIOGRAPHY
BOOKS:-

 Research Methodology :- C. K. Kothari


o Wishwa prakashan darayaganj
o New Delhi
o 2nd Edition – 1995

 Marketing Management :- Philip Kotler


 Prentice – hall of India Pvt. Ltd.
 New Delhi – 110001
 8th Edition -1995

 Marketing Management :- Tapan K Panda


 Professor (IIM-Indore)
 2nd Edition

 www.google.com

69
QUESTIONNAIRE
NAME OF DEALER:-

CONTRACT NO -

Que. 1) which brands of cement you sells?


a) Jaypee b) Birla gold c) Prism d) Acc.

Que.2) which company runs sales promotion schemes regularly?


a) Jaypee b) Birla gold c)Prism d)Acc

Que.3) which type of sales promotion schemes ‘companies’ runs most?


a) Free sample b)Rebate c)Coupons d) Sales contest e)Bonus/commission
f)Price-off

Que.4) which type of sales promotion schemes affects your sales / profit greatly?
a) Price –off b) Gift items c) Credit facilities d) Sales contest, etc.

Que.5) How much sales increase during the sales promotion schemes?
a) Less than 10% b)10%-20% c) 20%-40% d)more then 40%

Que.6) which sales promotion schemes more effective for increase in sales?
a) Gift items b) credit facilities c) price-off d) commission.

Que.7) in which company provide proper guidance & assistance while running these
sales promotion scheme?
a) Birla gold b) Jaypee c) Birla gold gold d) Acc

Que.8) which company runs more sales promotion schemes


a) Birla gold gold b) Birla gold c) Jaypee d) Acc.

Que.9) which type of promotion mix schemes is more suitable for increase in short term
sales?
a) personal selling b) advertising c) direct marketing d) sales promotion e)public
relation.

Que.10) which type of sales promotion schemes do you expect from company?
a) Price-off b) gift items c) bonus/commission d) rebate e) free-trail.

70
71

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