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A PROJECT REPORT ON SALES PROMOTION

IN

KESORAM CEMENT INDUSTRIES LIMITED BASANTHNAGAR, KARIMNAGAR


Project submitted To

KAKATHIYA UNIVERSITY WARANGAL In Partial Fulfillment of the Requirements for the Award of the Degree of MASTER OF BUSINESS ADMINSTRATION
Submitted By J. RAVI KUMAR H.T.NO.: 13087-C-1112

Under the Guidance of G. RAVI KUMAR


Department of Business Management

ALLURI INSTITUTE OF MANAGEMENT SCIENCES


Hunter Road, Warangal 506001, Andhra Pradesh.

DECLARATION
J. RAVI KUMAR here by declare that the project work entitled (SALES PROMOTION

STATERGIES KESORAM CEMENT COMPANY) submitted to Deparmentof Commerce and Business Management, K.U Warangal in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a bonafied work done by me.

I also declare that the project id not submitted any ware else for the award of any Degree/diploma

Introduction: Basic needs like food to live cloth to wear and shelter to hide affect the common life of people. Shelter is also necessary to protect the life from natural calamities. There were number of changes of the process of constructing houses for the purpose of having shelter. Till early twentieth century lime stone has been the main material for the construction of house.

In India monuments like tajmahal, red fort, Qutubmitunar in the north konark and khajuraha temples in central India, meenakshi and Madurai temple in south were constructed with lime.

For the early twentieth century dominated the construction field. The availability of Ingredients in all over the world in uniform quality entitled by centralized production and strict quality control and above all the advent RCC made cement an essential and widely used material for construction and permanent structures.

In this modern age cement industry is ranked as a basic industry because for every development effort i.e. from the construction of single household to the building of big multipurpose dams, cement constitutes a basic ingredient. It is used by the consumers to have a strong and durable construction. They want a material which is capable of strongly uniting masses. Cement, when mixed with sand and water in proper ratio is able to give this benefit to the user.

The cement is of many types. They include ordinary Portland cement, Portland strong cement, Portland pizza land cement, white Portland cement, hydrophobic Portland cement, oil well cement, rapid hardening cement, low heat Portland cement, high strength Portland cement, super supplanted cement and alumina cement.

NEED OF THE STUDY: Introduction of the study The Indian market is very vast, both in terms of physical size of the territories involved and the diversity of consumer the need for arises because the product has to move to the consumer in the right quantity, at a specific time, and at the particular place. The need for intermediaries in the delivery of goods is sometime questioned. Particularly because the profit they earn or viewed as adding to the cost of the item. However, this argument is fallacious, since it should be recognized that the function these intennediaries person or 1ll1dISl.0Od to be more efficient and cheaper then what the manufacture can manage. This is rationale for having a generation of form, possession time and variability, utility. In other words the major objective of distribution management is to ensure delivery at a minimum cost so the consumer interest is served.

Marketing ~ channel decision is among the most critical decision facing management. The company as chosen charnels intimately affect all the other marketing decisions. The company pricing intimately affect all the other marketing decisions. The companys pricing depending on where it uses mass merchandisers or high quality. The as sales force and advertising decisions depends on how much

Training and involved relatively long time commitment to other firms. There fore management as well as today OBJECTIVES OF THE STUDY: l. To know the sales of Kesoram cement. 2. To know which grade cement is having much demand in the market. 3. To identify the problems faced by the retailers in distribution process. 4. To identify the complaints received by retailers from the consumers. 5. To know the position of Kesoram cement in the market. 6. To identify which distribution strategy is best. 7. To know which type of advertisement gives more positive results. 8. To study about the level of satisfaction of retailers regarding quality, quantity, Price and package.

RESEARCH METHODOLOGY

Research refers to a search for knowledge. One can also define research as a search on a specific topic. infect, search is an act of scientific investigation According to Lyford woody research comprises defining and redefining; Problems, formulating hypothesis or suggested solutions, collecting, organizing and 1 evaluating data; making deductions and researching conclusions t determine whether I they t the formulation hypothesis. For the purpose of the study, the primary data and secondary data are collected. The ordinary data is collected by following the observational method and survey research method. While taking personal interviews of the stockiest the Observational method is used. The survey research method is used to gain and insist \ knowledge about the opinion of retailers of Kesoram cement vies-a-vies the other branch the main research instrument used for the survey is a well structured questionnaire for retailers consisting of questions interviews, group discussions and observations have been also used to supplement and support the primary data generated through questionnaire method.

The collected data is classified, tabulated, analyzed and interpreted. From analysis, conclusions are drawn and suggestions are offered.

RESEARCH DESIGN: R The study was conducted in Karimnagar district. The research describes the i s attitudes, opinion and view of the retailers on the Kesoram cement service, quality, price, quantity, distribution, delivery etc., and also reason behind it. The research is * designed to employ the statistical techniques are used in analyzing the data collected. DATA:I A) NATURE OF THE DATA: The study relies to a grant extent on primary data and to some extent secondary data. The primary data consist of data collected from questionnaire. The first hand information was obtained through primary data. Secondary data was R obtained from internal sources of the form l B) SOURCES OFDATA: _The study is based on primary and secondary sources of data. PRIMARY DATA: R Primary data is personally developed data and it gives latest information and _ offers much greater accuracy and reliability. The primary data is obtained from the ~ survey conducted on the authorized Kesoram retailers of Karimnagar. ~

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SECONDERY DATA: It is published data and already available for use and it saves time. The main sources of secondary data are published market surveys, government publications, advertising, research report and intimae sources such as sales, purchase records, sales Records, customer complaints and other business records. The secondary data is obtained from the annual reports of Indian cement review (ICR) Business magazines and news papers like the economic times and Indian express etc. METHODS OF DATA COLLECTIONS: A survey was conducted together data. The method adopted to elicit Information was from two courses i.e. retailers and intimae sources of the mi. The Questionnaire method was chosen to know the retailer satisfaction about the quality, Service, delivery, price, etc. and also due to qualitative nature of the research. SAMPLING SAMPLE DESIGN: Sample design is a definite plan for obtaining a sample from a given population. It refers the techniques or the procedure the researchers would adopt in selecting items for the sample. SAMPLE SIZE: For ascertaining the views of dealers regarding the various operational aspects of Kesoram cement 120 retailers are selected from various towns in Karimnagar District on the basis of convenient random sampling technique.

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The research universe comprises of the existing consumers of Kesoram Cement. The exact size of universe is unknown. The sampling procedure adopted for l the study was convenience sampling. For ascertaining the views of dealers regarding the various operational aspects of Kesoram cement 120 retailers are selected from various towns in Karimnagar district on the basis of convenient random sampling technique. MAJOR TYPES OF INTERMEDIARIES: Retailer: a middleman who sells to ultimate consumers. Wholesaler: a middlemen who sells retailers, commonly found in consumer product marketing. A Dealer: any middleman with legal authority to act on behalf of the manufacturer. 4 Broker: a middleman who performs limited selling functions like seeking Q orders for a principal. Usually, brokers have neither title to, nor possessions of the merchandise. Jobber: normally used in an industrial marketing context as a limited function.

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CHAPTER-II THEORITICAL CONCEPTS

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WHAT IS SALES PROMOTION?

Sales promotion refers to many kinds of incentives and techniques directed towards Consumers and traders with the intention to produce immediate or short-term sales effects.

DEFINITION Sales promotion includes incentive-offering and interest-creating activities which are generally short-term marketing events other than advertising, . Personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and incidence the \ purchase and other desired behavioral responses of the miffs customers. a MORE ON IT... Sales promotion offers a direct inducement to act by providing extra worth over and above what is built into the product at its normal price. These temporary inducements are offered usually at a time and place where the buying decision is range. Not only are sales promotions very common in the current competitive market conditions, they are increasing at a fast apace. These promotions are direct inducements. In spite of the t directness, sales promotions are fairly complicated and a rich tool of marketing with innumerable creative possibilities limited only by the imagination of promotion ;planners. Sales promotion is often referred to by the names of extra purchase value and below-the-line selling.

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'Used to achieve short-term sales Sales promotion IS a separate and distinct element H1 the promotion mix and IS an important and poweril tool of marketing. The aim of sales promotion is goaloriented to achieve sales/marketing objectives which are short-term and immediate. Generally, sales promotion is not used to generate long-term results or sales in the future, but rather to generate sales results now. i Example: promotions mostly say lasts till which is aimed at increased sales till that date. This would induce trials, and even the existing users would increase consumption. Becoming too common Sales promotion has been traditionally viewed as a non-recurrent selling activity. However, this does not portray the present market conditions where frequent and repeated sales promotion programmers have become necessary to maintain business in many product categories. The reality is that sales promotion has become an all too recurrent activity. Today we and companies in almost all sectors offering some sort of a promotion scheme. These sectors range from automobiles to beverages, from financial services to foods, from household durables to services, from household products to business products, from personal care to textiles and apparel. Here are examples of each. Automobiles: Marla Suzuki tiered a 22-carat, 10gm T apish gold coincide and lots of other exciting prizes, Other prizes include 50 Rs. 50,000 T apish gift vouchers, 10 Rs. 1 la/ch Tarnish gift vouchers and a grand bumper prize of I kg gold with every new Marti 800 or Omni. Financial services." T are finance tiered Free Tata Finance credit cards with

every car/financed j

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Foods: Nestle offered Free 50g Johnson 's baby soap with every 400g Cerelac pack. Household durables: Samsung offered a free book on Indian recipes and free cookery classes. Up I o Rs. 2000 off & Boorish dishes worth Rs. 510, on buying Samsung Microwave Ovens. Q Services: CMC Computer Education tiered a set of 3 CDs of Britannica Encyclopedia worth Rs. 1995free on enrolling for DST & cDAST. 1 Household products: Kodak Express offered a Dill Chula hay T -shirt free with any Kodak camera. v Business products: Godrej jeered prizes like a Ford Icon car, Godrej air conditioners, Godrej auto clean washing machines and more on purchase of Photocopiers and Digital Mulii-function products. Pearsall erne: Fem had an offer of save Rs. 79 on buying a 1-litre pack of Fem soft gentle soapi Many types of sales promotion require participation of customers who are encouraged to take some action and invest their time and effort. But sales promotions are not always short term. It would be reasonable to say that promotions are reasonably short term because in many product categories, extra discounts continue on a regular basis. Likewise, some product brands always contain in-pack premium. For example, each pack of 'Barossa agarbalti ' contains either a stainless steel glass or a small bowl.

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Writing about sales promotion tools, Prof. Philip Kilter observes they have 3 distinctive characteristics. 1. Communication: they gain attention and usually provide information that may lead the customer to the product. 2. Incentive: they incorporate some concession, inducement, or contribution that gives value to the consumer. 3. Invitation: they include a distinct invitation to engage in the transaction now (offer valid till ...0r lill stocks last) Major users of sales promotions are marketers of soaps, detergents, toiletries, soft drinks, toothpastes, tea, coffee, footwear, textiles, readymade garments, consumer durable goods, music systems, autos, televisions, washing machines, microwave ovens, refrigerators, magazines and many other household items. In fact the list of product categories using sales promotion is ever-increasing, no matter what the product category, it could be staples, impulse goods, emergency goods shopping goods, specialty goods, unsought goods, industrial products, or different types of services. Sales promotion is now established as an important and increasingly respectable element of the marketing communication tools. Sales promotion expenditures are increasing dramatically, and economic recession is most likely to fuel this trend further.

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DIFFERENCE BETWEEN ADVERTISING AND SALES PROMOTION By using variety of persuasive appeals, it offers reasons to buy a product or service. Besides giving reasons in the form of different appeals, they offer incentive to the consumers to buy the product or service now. Appeals are rational Time-frame is short term To get sales quickly or to induce trial. Direct in approach to induce consumers to buy a product or service immediately by temporarily changing the existing pricevalue relationship of the product or service.

Appeals are emotional or functional in Time-frame is long term The primary objective is to create an Indirect and subtle approach towards persuading customers to buy a product or service

But both advertising advertising and sales promotions go hand .Both are very essential to achieved success. Both are complementary to each other.

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THE ADVANTAGE OF ADVERTISI9NG FOLLOWED BY PROMOTION OVER ONLY PROMOTION

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RELATIVE COMMUNCATION STRENGTHS OF ADVERTISING AND PROMOTION

REASONS FOR RAPID GROWYH OF SALES PROMOTION There are a number of reasons that are favorable to the growth of sales promotion; The ai4r of change is gaining momentum after the introduction of economic liberalization Due to increase in competition companies are finding it increasingly difficult to compete on quality .They are there fore resorting to more and innovative methods of sales promotion

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To break away from the clutter. Samsung introduced the phod ke dekho ' and phir se phod ke dekho ' offers, which helped increase sales. Customers Have Become More Price Sensitive This increased price sensitivity is a direct result of rampant inflation. Economic recession is likely to fuel this trend further, as consumers and dealers become more sensitive towards prices. The case of Akai TV presents an interesting example. This television star/ed introducing quite attractive deals, one after the other and gained a substantial share of the C TV market. Continuous promotions have abetted the price perceptions of consumers across the product category, and today the situation is such that customers in general look or waitjbr promotional deals on their preferred brands of CTV. They are not much moved by the advertising that might extol about the highly advanced features and quality of most brands. They usually consider buying CTVs on price cuts. 0 Sales Promotions Maximize Profits A nmnbcr of economic theories conclude that a company can maximize profits by using sales promotion. Such promotions can permit price discrimination by allowing the brand to compete in 2 or more different market segments. Sales promotion may allow a premium brand to compete with a lower tier brand among price sensitive consumers. For example, a premium band of toilet soap may be on promotion in some price sensitive markets, while in the remaining markets it is sold at its normal price. 9 Sales Promotion Specialists Are Available As a result of economic liberalization. the number of management institutions has increased. This has lead to the availability of specialists, who are not only well paid but can handle this specialized work more efficiently in the current market conditions, where sales promotion has become more important

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ADVANTAGES OF SALES PROMOTION Sales promotions have a signee cant effect on the behavior of consumers and trades people. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. DISADVANTAGES OF SALES PROMOTIONS ' While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed up the killing of a bad product. A consumer may be motivated to try to new products because of the incentive but after this the product itself must take over. Pepsi Aha launched at sales promotion campaign for its launch, though the promotion was effective, ineffective advertising and publicity led to the downfall of the brand. Q Increased price sensitivity Frequently promoted brands in the product category, especially on the basis of price, make consumers and traders more price sensitive not only for the promoted brands but for other brands as well in the same product category. Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Quality image may become tarnished U If the promotions in a product category have been rare, or the product happens to be of high involvement category, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is

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Promotion. So after a paint af time a good number of consumers started suspecting its quality and almost no one is prepared to call il u high qualify brand. Because of competitive pressures, now almost all brands of color television period market are available on one or the other promotional deal and consumer perceptions are that almost all the brands have same quality and performance in a price range. Even a top-of-the-line brand like Sony having technological edge, has occasionally announced promotional deals because of competitive pressures as promotions have become common in the category. Q Dealers forward by and divert stocks ln case of deals for the trade, many dealers forward by, in excess of their inventory requirements. This is particularly happens if a product is low bulk, much in demand and the inventory holding costs are favorably low. This is true both for wholesalers as Well as retailers. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non-deal areas, Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non- deal areas. Wholesalers and retailers do not hesitate in selling these excess stocks in non- decal areas on prices that are less than the list price, but keeping some reasonable margin for themselves. This is likely to have a negative effect on price discrimination efforts of the company as dealers and those areas would not be buying even the normal requirements from the company. 6 Merchandising support from dealers is doubtful One of the trade promotions tool is to offer promotional allowances to trade people to motivate them to provide merchandising support and to pass on some benefit to consumers. This generally is the condition attached with such promotional allowances. In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the

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Product does not sell much in lolls shop, or may be he thinks the effort required rs more W than the commission/benefit derived. l 0 Short-term orientation 3 Sales promotions are generally for a short duration. This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term fixture of the organization. Promotions mostly build short-term sales volume that is not maintained. Heavy use of sales promotion, in certain product categories, ma be res omissible for causing brand alit imam dilution. A dealer in second-hand cars had to close shop because he was able to attract ' customers only during heavy promotions. The investment made on attracting customers was not showing any continua] returns.

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TECHNIQUES OF SALES PROMOTION PRICE DISCOUNTS Price pack deals Rebates/refunds Continuity programs Coupons Samples Contests and sweepstakes Premiums and advertising specialties Free trials Brand placement Event sponsorship Product warranties Exchange offers Internet promotions Low interest financing Free service camps OFF INVOICE allowance Buying allowance Display and adverisiting allowance Buy back allowance Bill back allowance Count and allowance Slotting allowance Merchandise allowance Pop displays Cash rebate Free goods Trade coupons Dealer listing Dealer loaders Sales contests SPIFFS(PUSH MONY) INCENTIVES Sales training programs Trade shows Sales conests Incentives Awards and prizes Premiums(gifts) Sales meetings Sales manuals etc Salles manuals etc

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CONSUMER SALES PROMOTIONS

Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are called consumer sales promotions. Manufacturer announced promotions to consumers are based on pula strategy of the manufacturer and retailer announced promotions to consumers constitute usher strategy of the retailer. Objectives of consumer market sales promotions The following basic objectives can be pursued with sales promotions in the consumer Market. Stimulate trial purchase When a rim wants to attract new users sales promotions tools can reduce the consumers risk of trying something new. A reduced price or offer of a rebate may stimulate trail purchase. I When Dove was launched in the market, people had u certain reservation against the product. Why? There were two reasons: a. Price actor Most housewives found Dove to be pretty steep and thus consumption was restrained. b. Secondly, the rumors of one if its ingredients being animal fat. HLL began a sales promotion campaign: Get Dove soap free with a kilo of Surf Excel. With this promotion tactic, HLL got the opportunity of converting nonUsers of Dove to users. At the same time changing attitudes of other detergent users by converting them to Surf users. I Pentene when it was launched did u lot of sampling, to stimulate trail purchase. Their efforts have surely shown results, with Fastened being one of the top selling brands in India today.

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Stimulate repeat purchases In-package coupons good for the next purchase, or the accumulation of points with repeat purchases, can keep consumers loyal to a particular brand. The most prominent frequency programs are found in the airline industry where competitors try to retain their most lucrative costumers by enrolling them for various perks such as frequent dyers can exam free travel, hotel stays, gifts etc. I McDonaI1ls India has targeted a lot at the kids. To keep them coming in again and again they introduced the happy meal concept where they used to give away diesel toys every week. And they advertised about it saying collect your entire set of toys. This concept really worked and has shown u tremendous increase in the sales and is presently an integral part of their marketing strategy. I Jet Privilege Jet privilege is a rewarding and customer friendly frequent /Iyer programmed in the country as ajet privilege member one can earn JP miles not only on jet airways but also from many other programmed partners of the program me.

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SALES FORCE PROMOTION Sales promotion directed towards the sales people is referred to as sales force promotions. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or seasonal products, sell more deals to resellers, book more orders, develop prospects lists and build up morale and enthusiasm. Some of these activities are meant to prepare the sales people to do their jobs well and include sales meetings and manuals, training programmers, sales presentations, lm and slide shows etc. Prize distribution to winners is the more tangible aspect of any such programme. Objectives of sales force promotion schemes are: Increase sales volume Introduce a new product Reducing selling costs O Offset competitive promotions Improve working habits 6 Develop new prospect lists etc. Tools used in sales force promotions T 0 Sales meetings T Sales meetings are generally organized for sales people fond one area, region or district more frequently, usually once a month, once in two months, or quarterly. These meetings bring together sales people from different territories of the nation and are considered a popular way of educating sales people. There is a varying mixture of business and pleasure. Educational material of sales meetings generally focuses on product knowledge , 1 selling skills and motivation of the sales force. The programme often includes formal lectures, quiz shows, etc. The purpose is to generate interest and enthusiasm and the winners are awarded prizes and certificates.

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max Healthcare Objective: to celebrate the annual day of Max-India and instill a sense of pride amongst the employees being exclusive Max-team members. Strategy: presentations, reviews and their vision for the future marked the evening. An address by the chairman, Mr.Analjit Singh and the award ceremony were the highlights. The vent itself was held in park royal, Delhi. Linefeed often evening was transmitted on audio-visual screens. This exclusive live relay added to excitement among the invitees. 6 Sales Manuals Training materials such as manuals, visual aids, ip charts, programmers, learning books are most useful to sales people. Sales manual may be long or short depending upon the type of the products manufactured and sold by the company. The sales t manuals usually contain product details, applications, manufacturing processes, prices, sales techniques etc. Some companies also have house journals that reports about the company programmers, new products, research activities, new polices, awards, promotions, etc. In any rm where personal selling is critical for the sale of the product incentives to the sales people become very important. Incentive programmers most often used by the company include paid vacations within or outside the company, cash rewards, prizes, honor awards, merit certificates for excellent performance etc. Training Sales contests incentives Awards and prizes Premiums (gifts

C0nsumer-cum-Dealer-cum-Sales force sales promotions:

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How does a sales promotion influence sales : There are 4 basic mechanisms involved: t : 1) Brand switching : 2) Repeat buying ; 3) Purchasing more or accelerating timing 4) Increasing category expansion and consumption

; 1) Brand switching ; The objective of some sales promotions is to induce brand switching, i.e. ; encouraging the consumers to purchase the promoted brand instead of the regular ; brand that would have been purchased had there been no sales promotion. This _ type of brand switching is often called aggressive switching '. The second type of : promotion effect on brand switching is considered as defensive switching. : this case, the objective is to retain the customer by encouraging him to buy the same brand as was bought on earlier occasions. ; Gore Q/ed free gas plus discounts on its washing machines to make T consumers shift from newly arrived competition (Samsung). That was an aggressive strategy.

-a prevent its customers from shifting to Godrej, Samsung had to launch a Q similar scheme of free gifts and price discounts. This was a defensive strategy. ; Thc manufacturer concern is to compete with other similar brands, While the :1 conked of the reseller is to encourage customers to buy from his store. When a V ._ retailer promotes, consumers respond by switching stores, i.e. they purchase from : the store that is promoting instead of the regular store.

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I Promotions offering price deals incidence the attitude of consumers towards buying the brand. Much would depend on the size of the discotmt and the consumers sensitivity towards price and how much importance consumers place on price as compared to quality. If the attitude toward the brand has been quite 5low compared to some other brands, then a price promotion is likely to encourage 5 a switch to the promoted brand. Such price promotions may also encourage consumers to buy an otherwise expensive brand which they could not afford on the normal list price Displays at the points of purchase may induce brand switching because they serve as conditioned stimuli associated with price promotions. Over a period of time, consumers get trained to associate displays with price reductions and respond even when the price reduction is not there. If most of the consumers are inclined towards low prices because of economic conditions, the majority of them are assumed to be buying low priced brands. However, if the price of an expensive item is reduced because of a promotion, some consumers from low quality category will switch to the promoted brand. But when the low quality product is promoted, there is no switching because the : consumers have been buying the brand without promotion. The consumers from high-income group are unlikely to switch to low-price brand because of ii promotion and the sales gains would not be there 2) Repeat buying When a consumer buys a product on promotion, this may lead to developing a habit towards purchasing that brand and some evaluation about the performance of that brand. It may also happen that since the brand is purchased on promotion, the consumers attitude towards the brand weakens, and the probability of purchase in declines. Repeat purchase may result because of habit formation that may develop because the brand is bought more than once due to sales promotion. Much depends on the satisfaction of the consumer with the brand purchased on promotion. 28

For example, if customer purchased a Godrej refrigerator on promotion and was stained, il is very like/ that next time when the need arises, lye customer would purchase the same brand again on promotion, or other products of the same manufacturer when available on promotion. Repeat purchasing is often the result of habit formation and learning. Sales promotions stimulate the customers to by a product and this becomes the first step towards establishing a habit. Another route is not to allow the brand user to shift to some other brand by rewarding and reinforcing the already established behavior. In case of low-involvement products, the role of habit is more important. The consumer does not want to devote much time to thinking and pre-purchase evolution in making a purchase decision. Habit helps the customer avoid any cognitive effort and helps as a simple and convenient way to decide which brand to purchase. Once a consumer gets used to the long-lasting ejects of Duracell batteries, it becomes a habit and he would not think much beware going in its the same brand again. In case of high-involvement products, it is assumed that learning takes place when the consumer experiences the actual performance of the product and makes an evaluation. A favorable evaluation is likely to help sustain the habit. ln some cases, even consumers with low involvement oen make evaluations that may have repercussions with regard to developing the habit. This holds true to a great extent in case of industrial products, where the actual experience after initial usage is very important.

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3) Purchasing more or accelerating timing Purchasing more and accelerating timing refers to those situations when cons tuners buy more than their immediate requirement, or shim their purchase timing as a result of promotions. When resellers buy more than their normal requirements, it is called forward buying Building excessive inventories in this manner often leads to stock diversion in non-deal areas. Another important repercussion of this purchase behavior is that it merely shifts the purchases which would have occurred anyway. For example, if a consumer buys more than the immediate requirements, then in the next purchase period, this consumer either would not buy, or buy less. In another situation, due to promotion, the consumer buys the refrigerator now, though the intention was to buy 2months. This is purchase acceleration. Another effect of promotion can be that consumers who have bought in excess of their requirements would be out of the market. Similar would be the retailers shelves are full. This can help in preempting the competition. Such acceleration in purchase quantity would also help in preventing brand switching, and in some cases, more consumption of the product. The reverse may also be true in certain situations, i.e., negative acceleration when the consumers buy less or decide to purchase later rather than now. This may happen when the sales promotion stimulates brand switching. The consumer wants to try the product and buys a smaller quantity to reduce the risk associated with using something new. The consumer may also postpone the purchase of a product because he/she learns from some source about the forthcoming salespromotion or anticipates it.

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4) Increasing category expansion and consumption Sales promotions are likely to stimulate demand by creating new occasions for purchase or by increasing the consumption rate of consumers. In certain situation, the purchase of a product category gets accelerated. Sales promotions such as displays can create new purchase occasions by the reminding the customer that the displayed product is good for growing children (protein biscuits). Other products, for example noodles or potato chips purchased on promotion in multiple units, can increase the consumption rate, which is often the objective of many promotions. One example can be of condensed milk, (Milkmaid)i An attractive display of /his brand is arranged and agree recipe book is given on purchase af2 packs. This is quite likely to increase the rate of consumption of this product and consumers will he tempted to try different recipes. In case of many high-involvement products, promotions can help consumers to realize that a certain product would serve as a good item (a silk sari, camera, a Cadbury pack Ray-Ban sunglasses, etc). In some cases, there is a certain price limit beyond which the consumers will not buy a product. However, a price promotion offer lowers the price of the product below the customer price limit, and thus a purchase occasion is created. Many customers buy cars when available on promotion such as interest-free installments, which otherwise they are not in a position to buy on down payment. Of late, this is happening in case of almost all brands of computers. . Observations in the market place point to the likelihood that brand switching, repeat purchasing, purchase acceleration and consumption, all occur simultaneously. The net result, however, is that sales promotions work.

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SALES PROMOTION BUDGET The allocation of monetary resources to sales promotion is determined by the promotional strategy of the mi. Ln most cases, first the total amount of money for promotion is detennined then it is budgeted for different activities. Before deciding the money allocated to sales promotion, the management should evaluate relevant factors such as type of product, its stage in PLC, the market situation, level of competitive activity, etc. All these factors, alone or in combination, can significantly affect the promotional budget. There are live important techniques that are commonly used to allocate funds to sales promotion. Q Percentage nestles method The percentage of sales method to allocate the funds is probably most popular among companies. ln this approach, the budget is determined by taking a fixed percentage of sales. The sales figure taken could pertain to the previous year, or the average of several past years. This percentage could also be based on the forecasted sales of the year under consideration. 9 Unit of sales method This method is commonly used by companies dealing in high-priced products, generally consumer durable goods such as four and two wheeler auto-manufacturers, refrigerators, washing machines, microwave ovens, entertainment electronics and many other items. Instead of rupee value of sales, as in the previous method, the base is the physical volume of either the past or anticipated sales. This figure of units is then multiplied by a fixed amount of money to reach the budget amount. For example, the manufacturer might allocate Rs. 2000/- per unit for sales promotion.

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Competitive parity method Many marketers match or base their sales promotion budget to that of the major competitors. The logic attributed to this method is that the collective minds of the companies in the industry probably generate promotion budget that are close to i optimal and any departure from the industry norms may lead to promotion war. All you can afford method In using this approach to budget allocation, the amount that is leftover after all other relevant allocations have been made, is earmarked for sales promotion. This approach is used, generally, by companies with small budget, or by some other companies, large as well as small, when they are introducing a new product. It is merely an availability oriented budget and quite unsophisticated. Apparently, there is no realization that in a competitive market situation, sales promotion mainframe sales in many ways. Objective end task method As mentioned earlier, the promotion budget is determined by the overall promotional strategy. Objective end task method approach is the one which is driven by strategy. This is also the most popular technique to decide the sales promotion budget. The promotion manager starts by making a thorough study of the market, the product, competition and consumer behavior in order to set up appropriate promotion objectives. These objectives may relate to increasing short-term sales, introducing a new product. stimulate trial, increasing distribution, etc., within a specifiess period of timer Next step is to determine how much money would be necessary to accomplish each task involved in achieving the objectives. If the costs happen to be more than the money available, then either the promotion objectives adjusted or more funds are made available from the contingency reserve or by reducing the budgets of the other promotional activities.

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SALES PROMOTION EVALUATION Measurement of results in any area of business activities related to the objectives that are set. To accomplish this, set of evaluation criteria is laid down before the implementation of the sales promotion programme. A number of these objectives are directly related to sales. In all such cases, the measurement does not pose any complexity and the sales based techniques can be used with relative ease. For I instance, it is quite easy to measure the sales effect before, during and air the sales promotion. In case of objectives not related to sales, such as trial purchase, or changing consumer awareness and attitude as resultant increase and perceived value of the product, measurement is more difficult. In certain types of promotion, the reseller support is important and can have significant effect on marketers promotion performance. Pretesting l-low sales promotion is to be communicated and what would be communicated to the target groups is important and can be pretested. For example the pre-tested may n out what is likely to be the perceived value and the risk. A customer considers whether it would be wise to buy an LL\1kn0Wl'l brand of sport shoes at a 45% discount. In this offer was there a risk of buying an unfamiliar brand? The pre-test can be conducted to assess these factors by using focus groups and consumer panels. Another approach, ballot method, consists of kneeling a ballot paper to a list of Consumers. They are requested to evaluate different illustrated promotion is and vote for the most light and rectum the ballot to the rm. A relatively expensive but more Accurate method is a portfolio test. A portfolio of sales promotion is prepared and Shown to consumers in person and the responses are noted.

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Strategy Strategy is the direction and scope of an organization over the lung-term: which l achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to stakeholder l expectations" Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is conceded with how different engagements are linked. How a battle is fought is a matter of tactics: the tens and conditions that it is fought on and whether it should be fought at all is a matter of strategy, which is part of the four levels of warfare: political goals or grand strategy, strategy, operations, and tactics. Building on the work of many thinkers on the subject, one can define strategy as "a comprehensive way to try to pursue political ends, including the threat or actual use of force, in a dialectic of wills ~ there have to be at least two sides to a conch. These sides interact, and thus a Strategy will rarely i be successful if it shows no adaptability." Strategy has been extended beyond its traditional ends, military and grand strategy, to business, economics, game theory and other lids. Strategy at Different Levels of a Business Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it. a Corporate Strategy - is concoct with the overall purpose and scope of the business J to meet stakeholder expectations. This is a crucial level since it is heavily inuenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement Business Unit Strategy - is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities ctc. 35

Operational Strategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. How Strategy is Managed - Strategic Management ln its broadest sense, strategic management is about taking "strategic decisions" decisions that answer the questions above. In practice, a thorough strategic management process has three main components, shown in the figure below:

Strategic Analysis This is all about the analyzing the strength of businesses position and understanding the important extremely factors that may inuenced that position. The process of Strategic Analysis can be assisted by a number of tools, including: Strategic planning is an organization's process of defining its strategy or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic Planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats ), GE/Mc(inset portfolio analysis, COPE analysis PEST analysis (Political, Economic, Social, and Technological), STEER analysis (Socio-cultural,

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Technological, Economic, Ecological, and Regulatory factors), and EPISTEL (Environment, Political, informatics, Social, Technological, Economic and Legal). Strategic planning is the formal consideration of an organization's future course. All strategic planning deals with at least one of three key questions: l. "What do we do?" 2. "For whom do we do it?" 3. "How do we excel?" Strategic planning tools and approaches Among most useful tools for strategic planning is SWOT analysis. The main objective of this tool is to analyze internal strategic factors, strengths and weaknesses attributed to the organization, and extremely factors beyond control of the organization such as opportunities and threats. Besides SWOT analysis, portfolio analyses such as the GE/McKinscy matrix or COPE analysis. Can be pardoned to determine the strategic focus. Other tools include Balanced Scorecards, which creates a systematic framework for strategic planning, and scenario planning, which was originally used in the military and recently used by large corporations to analyze future scenarios. Business Strategy Mapping Business Strategy Mapping is the discipline of mapping business opportunities from potential to portability and the points in between. This method is different from other methods in that it visually shows how marketing, Nance and operational strategies relate to each other and need to together in order to optimize the results of all the strategies. Business Strategy Mapping assists managers in better understanding how to generate and deliver value to both the customers a.nd thc companies.

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Strategy map A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. It is an element of the documentation associated with the Balanced Scorecard, and in particular is characteristic of the second generation of Balanced Scorecard designs that first appeared during the mid 1990s. The first diagrams of this type appeared in the early 1990s, and the idea of using this type of diagram to help document Balanced S Scorecard was discussed in a paper by Kaplan & Norton in 1996 [

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CHAPTER-III COMPANY PROFILE

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CEMENT INDUSTRY PROFILE History Cement is an essential commodity on which our standard of living is greatly dependent. It is a ne ground powder, which when mixed with water sets to a hard mass. Cement was invented by JOSEPH ASPIDIN a leading builder and brick Lauer. Cement was patented in the year 1824 in England. German standard comities: DEF Binding agents consisting essentially of compounds of oxide, with silica, alumina and iron oxides, this can harden in air and under Water and are stable in water after they harden and which further more satisfy the conditions to strength. The basic raw material for production of cement is limestone which is available plenty in India in the form of limestone is excavated by mechanical means and processed through primary and secondary crushers to the required sizes. All basic raw materials consisting of: Lime (CAO) 60-67% Silica (SIO2) 17-25% Alumina (al2o3) 3~8% Iron oxide (fe203) 0.5-6% Magnesium l-4% Are nely grounded on the raw mills and heated to a temperature of about 1500c in the Rotary kiln resulting in the formation of CLINKER The clinker is ground to a ne powder. The clinker is containing the following components. C3sC2s C3s tribalism silicate (About 45%) declaim silicate (About 25%) tricalcium aluminates (About l0-12%)

Required quantity of gypsum (about 2-3%) is added to control the setting time to facilitate easy working. This is done in a cement mill or ball mill of several

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compartments charged with progressively smaller hardened balls. The mixture is ground to the required newness and transferred to storage soils. From here, the cement is bagged and packed where from it is transposed either by road to the desired Destinations. Continuous monitoring of the quality of cement is exercised, both at the raw material stage and also at the finishing stages with the help of X-ray analyzer etc; no replacement exists for the cement in the foreseeable future and it is bound to retain its prominent position as a construction material. Indian cement industry is the fourth largest in the world producing 70 millions off with 106 major plants China ~ 380 million tones Japan ~ 110 million tones USA 90 million tones The total world cement production is around 1400 tones. TYPES OF CEMENT GRADES Earlier depending upon the requirement, different varieties of cements were manufactured. The following are the major varieties of cements: 1. Ordinary Portland cement (ope) 2. Portland pozzoland cement (ppc) 3. Portland slag cement (psc) 4. Rapid hardening cement (src) S. Low heat Portland cement (lhc) 6. Oil well cement (owc) 7. White cement (wc)

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PERCENTAGE OF EACH TYPE OF CEMENT TO TOTAL CEMENT. COMPANY PROFILE Kesoram cement is branch unit of Birla house. The house reliability. Kesoram is mainly known as in the form of Shri.B.K.Birla group Kesoram cement industry is located at Basantnagar in Karimnagar district of Andhra Pradesh. Basantnagar is 8km away from Ramagundam Railway station linking to Chennai to New Delhi. History: One among the industrial giants in the country today serving the nation on the industrial front Kesoram industries limited has a chequered and eventful history dating back to 20"s when the industrial house of Birlas acquired it with only a textile mill under its banner in 1924 it grew from strength to strength and spread it activities to never ends like rayon, pulp, transparent paper pun, pipes, refectories, types and other products. Looking to the wide gap between the demand and supply of a vital commodity, cement which place and important role in national building, the Govt. of India censed the cement industry in the year 1966 with a view to attract entrepreneurs to augment the cement production. Kesoram rose to occasion and decided to setup few cement plans in the country.

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Many a site in different parts of the country was considered but the final choice fell on Andhra Pradesh a site in the Godavari river valley at Thakkalapally reserves has been selected for putting up the first cement plans. It has got natural advantages like power station, coal mines and rill head are located with in a radius of 15km from the site. Having located a site Kesoram lost no time in drawing up a blueprint for a modern cement plant with an ultimate aim to resources men and material at its command, it did not take much time to execute the project. Kesoram cement factory is surrounded by a wide range of limestone deposits. Kesoram serving railway station is Ragavapuram in Kazipet Ballarshaw section of south central railway. It is bounded by singareni collieries, NTPC, FCI and APSEB power house which makes area industrial. Kesoram cement is one of the prestigious renowned Kesoram group of industries which is one of the Indias leading industrial conglomerates under the stewardship of SYT.B.K.Birla, the doyen of Indian industries. It is one of the leading manufacturers of cement in India. It is a dry process cement plant with capacity of 9 lakes per annum. The cement plant of Kesoram with a capacity of 2.5 Lakh tons per annum was established in 1969 at Basantnagar a backward area in Karimnagar district of AP, the second unit followed suit which added a capacity of2 Lakh tones in August 1978, 1.13 Lakh tones in 1981 and 0.87 Lakh tones in September 1981. Kesoram set up a l5M.W captive power plant to facilitate of an uninterrupted power supply for manufacturing of cement in 1997. the plant incorporates the technology in cement making; it is professionally managed and well established cement manufacturing company enjoying the confidence of the consumers.

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Kesoram produces: 1 Ordinary Portland cement (opc) I 43 grade-known as Birla supreme 0 53 grade-known as Birla supreme gold 2 Portland pozzoland cement (ppc) SUPREME PERFORMANCE: Birla supreme, the 43-grade cement is widely accepted popular brand in the market commanding a premium However need the specific demands of the consumers Kesoram brand out the 53-grade-known as Birla supreme gold which is special quality like higher fineness, quick setting, durability etc Ppc is known as Birla Shakhty which attracted by people its qualities and rate margin compared to open. All quality system of Kesoram have been certified under INTERNATIONAL STANDARD ORGANISATION which proves the world wide acceptance. SUPREME STRENGTH: Kesoram cement has huge captive limestone deposits which make it possible to possible to feed high grade limestone consistently. Its natural gray color is in-born ingredient and gives good shade. Both the products offered by Kesoram i.e. Birla supreme-43 Grade and Birla supreme-53 grade cement are outstanding with much higher compressive strength and durability. The following characteristics show there distinctive qualities.

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PROCESS AND QUALITY CONTROL: It has been the endeavor of Kesoram to incorporate the worlds latest technology in the plant and today the plant has the most sophisticated, state of the art technology in its process. X-RAY ANALYSIS: Fully computerized XRF, XF D and X-RAY analyzers keep a constant round the clock vigil on quality. DCS SYSTEMS: DCS ( Distributed controlled system) is installed in clinker making process of Kesoram cements since it is key step in the overall cement making process is totally computer controlled. The DCS is constantly monitors the process and ensures operating efficiency. This eliminates variations and ensures consistency in the quality of clinker.

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DEPOT SALES: Kesoram cement is maintaining marketing depots as head quarters in different places in Andhra Pradesh, Maharashtra, TamilNadu, Kama taka and Orissa states. 1ANDHRA PRADESH: Hyderabad Warangal Karimnagar Nizamabad Vijay Wada Nell ore 2. MAHARASHTRA: Amoretti Akolo Jalgoan Nagpur Nanded Chandrapur Wardha 3. TAMIL NADU: 1 Madras 4, KARNATAKA: I Bangalore 5. ORISSA Berhampur Sales will take place from depot to: Retailers/ stockiest Builders/ contractors Pipe factories-Industries Direct consumers 46

Government and semi government Bodies

FEATHERS IN KESORAMS CAP: Kesoram has put standing track record, achieving over 100% capacity utilization in productivity and energy conservation. It has provided its designation by bagging several national and state awards, noteworthy being. NATIONAL & STATE AWARDS National productivity award for 1985 &1986 National award for mines safety 1985-86 &1986-87 NCBM ( national council for cement and building materials)s national award for 1989-90 Prestigious state award, Yajamsnya Ratna and Best management award for 1989. 9 FAOCC1 (Federation of AP chamber of commerce and industry) award for best family planning effort in the state for the year 1991. 9 May day award of the government of AP for best management and Jawaharlal Nehru Silver Rolling Trophy for best industrial productivity effort in the state, sponsored by FAPCCI for the year 1993. F FAPCCI award for best efforts of industrial in the state to develop rural economy twice in the year 1994 as well as in 1998. 9 National award (Sheri. S R Ragtag) for social awareness for the year 199596 The best rural development efforts made by the company got FAPCCI Award for Best workers welfare Kcsoram got the first prize for Mine Environment and pollution control the year 1999 too, for the third year in succession in July 2001. F Kesoram annexed the Vana Mitra" Award from the Govt. of A.P. l

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KESORAM CEMENT ADVANTAGES: 1. Helps in designing sleeker and more elegant structures giving greater edibility in design concept. 2. Due to its ne quality super ne construction can be achieved. 3. it gives maximum strength at minimum use of cement with water in the water cement ratio, especially the 53 grade Birla supreme gold. 4. Improved durability is achieved, the permeability reduces and the volumetric changes are also reduced. 5. Better water proofing is achieved due to low heat of hydration as the shrinkage will be less which means fewer crackers. 6. Better finish is achieved due to fitness and hence better workability. Thus plastering becomes easier with batter finish. 7. Faster construction possible at both Birla Supreme Gold achieves their high early strength in just 24 hours, and hence the form work can easily be removed. Thus improving the efficiency and saving in cost and time. MIX C;FA;CA WATER W/C RATIO

PCC M10 M15 M20 M25

1;4:8 1;3:6 1;2:4 l.5:3 1;1:2

30 Lts 28 Lts 27 Lts Z6 Lts 24 Lts

0160 0.56 0.54 _ 0.52 0.48

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CHAPTER-IV DATA ANALYSIS AND INTERPRETATION

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01)THE RESPONDENTS WERE ASKED WHETHER THEIR DEALERASHIP BELONGS TO ONLY KESORAM CEMENT OR ANY OTHER AND THE RESPONSES ARE DEPICTED BLOW Options Yes No Total No of respondents 75 45 120 Precentage of respondents 62.05 37.05 100

INTERPRITATION As per a above table 4.01 the study was conducted with 1200 dealers with in Karimnagar district 62.05% of dealers are sealing the only Kesoram brand and the remaining 37.05% were dealing with others brands

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02)CUSTOMER REFERENCE WITH REGARD TO DIFFERENT BRANDS OF CEMENT A)Mcc cement b)orient gold cement c)1&t cement d)Coramandal cement H)Kesoram cement Option Mcc cement Orient cement 1&t cement Coramandal cement Rassi golg cement Maha cement Ambuja cement Kesoram cement Total No of respondents 15 25 10 05 05 20 25 15 120 Percentage of responents 12.50 20.83 8.33 4.17 4.17 16.67 20.83 12.50 100 e)rassi gold cement f)maha cement g)ambuja cement

INTERPRITATION As per a bove table 4.02 the study was conducted with 120 dealers with in Karimnagar Daistrict.20.83% of customers were attracted to wards ambuja and orient gold cement and 16.67 %$ were attracted to weards maha cement 12.520 %were attracted to wards Kesoram and remaining were attracted to wards others brands of cement company.

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03)EFFECTIVE BRAND ADVERTISEMENT IN ENHANCING THE SALES A)Mcc cement c)L&t cement e)Rassi gold cement g)Ambuja cement Options Mcc cement Orient gold cement 1&t cement Coramandal cement Rassi golg cement Maha cement Ambuja cement Kesoram cement Total b)Orient gold cement d)Coramandal cement d)Maha cement h)kesorasm cement No of respondents 05 13 17 05 10 15 20 35 120 Percentage of respondents 4.17 10.83 14.17 4.17 8.33 12.50 16.67 29.17 100

INTERPRITATION As per above table 4.02 the study was conducted with 120 dealers with Karimnagar District,29.17% of customers said that Kesoram advertisement is enhancing the sales 16.67% customer said ambuja ce3ment advertisement is enhancing the sales and remaining were respondent to wards other cement brand advertisement

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04)FACTORS IN SELECTING A BRAND Price Quality Quantity Brand image Packing Credit facility Dealer presentation Options Price Quality Quantity Brand image Packing Credit facility Dealer presentation Total

No of respondents 15 13 17 15 10 25 25 120

Percentage of respondents 12.50 10.83 14.17 12.50 8.33 20.83 20.83 100

INTERPRITATION As per a above table 4.04 the study was conducted with 120 dealers with in Karimnagar District 20.83% customers were effected towards credit facility 14.17% were effected towards quantity and remaining customers affected towards price ,packing and brand image

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05)OPINION ON PRICE COMPARED WIT5H OTHER BRANDS OF THE COMPANY A)Mcc cement b)orient gold cement c)1&t cement d)Coramandal cement H)Kesoram cement Options Mcc cement Orient gold cement 1&t cement Coramandal cement Rassi golg cement Maha cement Ambuja cement Kesoram cement Total No of respondents 05 13 17 15 10 15 25 20 120 Percentage of respondents 4.17 10.83 14.17 12.50 8.33 12.50 20.83 16.67 100 e)rassi gold cement f)maha cement g)ambuja cement

INTERPRITATION As per a above table 4.04 the study was conducted with 120 dealers with in Karimnagar District 20.83% customers were effected towards credit facility 14.17% were effected towards quantity and remaining customers affected towards price ,packing and brand image

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06)SATISFACTION ON THE PACKING MADE BY KESORAM a)Highly satisfied b)satisfied c)Highly dissatisfied d)dissatisfied Option No of respondents Highly satisfied 45 satisfied 35 Highly dissatisfied 15 dissatisfied 55 Total 120

Perce3ntage of respondents 37.50 29.17 12.50 45.83 100

INTERPRITATION As per a above table 4. 05 the study was conducted with 120 dealers with Karimnagar District 45.83% of customer were dissatisfied with packing maid by Kesoram Cement Company 37.50% customers highly satisfied with packing maid by Kesoram

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07)OPINION ON REPLACEMENT OF CEMENT BAGS OF KESORAM A)Yes b)No Options No of respondents Yes 75 No 45 Total 120

Percentage of respondents 62.50 37.50 100

INTERPRITATION As per above table 4.05 the study was conducted with 120 dealers in Karimnagar District 16.50% of dealers respondent to works cement of cement bags remaining 37.50% of dealers was not respondent replacement of Kesoram cement bags

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08)STITABLE ADVERTISEMENT MEDIA FOR CEMENT INDUSTRIES A)Television b)Radio c)Wall painting d)paper e)Bill boards f)Others Others No of respondents Television 25 Radio 13 Wall painting 27 paper 20 Bill boards 10 Others 25 total 120

Percentage of respondents 20.83 10.83 22.50 16.67 8.33 20.83 100

INTERPRITATION as per table 4.0 the study was conducted with 120 dealers with in Karimnagar District 20.83% were respondent other resources and television are suitable advertising media for a cement media for a remaining preference other media

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09)OPINION ON FGAST MOVING BRAND IN YOUR STATE A)Mcc cement b)orient gold cement c)1&t cement d)Coramandal cement H)Kesoram cement Options Mcc cement Orient gold cement 1&t cement Coramandal cement Rassi golg cement Maha cement Ambuja cement Kesoram cement Total No of respondents 05 13 17 15 10 15 25 20 120 Percentage of respondents 4.17 10.83 14.17 12.50 8.33 12.50 20.83 16.67 100 e)rassi gold cement f)maha cement g)ambuja cement

INTERPRITATION As per a above table 4.05 the study was conducted with 120 dealers with in Karimnagar District 29.17% despondence said Kesoram cement brined fast moving in there state and rooming 20.83% resonance Abuja cement is fads moving brand in there state and remaining options is other brands.

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A)Mcc cement c)1&t cement e)rassi gold cement g)ambuja cement Options Mcc cement Orient gold cement 1&t cement Coramandal cement Rassi golg cement Maha cement Ambuja cement Kesoram cement Total

b)orient gold cement d)Coramandal cement f)maha cement H)Kesoram cement No of respondents 12 10 0.5 20 03 25 10 35 120 Percentage of respondents 10.00 8.33 4.17 16.67 2.50 20.83 8.33 29.17 100

INTERPRITATION As per a above table 4.05 the study was conducted within Karimnagar District 29.17% of respondents Kesoram cement brand having more number of sales in market and remaining 20.83%maha cement having more number of sales in the market and rooming despondence other brands

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11)VIEW ON THE MAJOR COMPETITOR FOR OTHER CEMENT COMPANIES a)Highly agree b)agree c)highly disagree d)disagree Options No of respondents Percentage of respondents Highly agree 60 50.00 Agree 25 20.00 highly disagree 20 16.67 disagree 15 12.50 Total 120 100

INTERPRITATION As per above table 4.05 the study was conducted with 120 dealers with Karimnagar District 50.00% respondents were highly that Kesoram cement brand is a major that Kesoram cement brand is not a major competitor for other cemen5 companies

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12)CREDIT PERIOD ALLOWED TO THE DEALERS OF KESORAM a)Tenbdays b)one week c)three days Options No of respondents Ten days 55 one week 25 three days 20 none of the above 20 Total 120

d)none of the above Percentage of respondents 45.83 20.83 16.67 16.67 100

INTERPRITATION As per above table 4.05 the study was conducted with 120 dealers with in Karimnagar dfistridct.45.83% of dealers said that Kesoram allows a credit period of ten days 20.83% dealers said Kesoram allows one week of credit period and remaining says Kesoram is not allowed proper credit period.

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13)TIME TAKEN FOR DELIVERING AFTER ORDERING (a)Very fast (b)fast (c)slow (d)veryslow Options No of respondents Very fast 10 fast 55 slow 35 veryslow 20 Total 120

Percentageof respondents 8.33 45.836 29.17 16.14 100

INTERPRITATION As per a above table 4.05 the study was conducted within Karimnagar District 29.17% of respondents Kesoram cement brand having more number of sales in market and remaining 20.83%maha cement having more number of sales in the market and rooming despondence other brands

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14)BETTER SCHEMES AND REWARDS ON ACHIVEING THE TARGETS a)Kesoram cement b)orient gold c)Mcc cement Options No of respondents Kesoram cement 60 orient gold 40 Mcc cement 20 total 120

Percentage of respondents 50.00 33.33 16.67 100

INTERPRETATION As per a bove table 4.14 the study conducted with 120 dealers with in Karimnagar district 50% respondents Kesoram cement company provides better schemes and rewards achieving the target and remaining 33.33% of respond nets orient and remaining 16.67% of respondents mcc cement company provides better schemes and rewards achieving the target

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15)FACILTES PROVIDED IN ATTRACTING THE DEALERS a)offers b)discount c)commission Options No of respondents offers 35 discount 55 commission 30 total 120

Percentage of respondents 29.17 45.83 25.00 100

INTERPRETATION As per the above table 4.15 the stayed conducted with 120 dealers with in Karimnagar district 45.83% of respondents discounts attaching for dealers and riming 29.17% of respondents offers attracting for dealers and 25% of respondents commission attracting for dealers

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01) As a dealer which brand of cement you deal with? A) MCc cement b) orient gold cement c) l&t cement D) coramandal cement E)arsis gold cement mama cement g)Abuja cement h)others O2) According to you which brand of Cement Company did most customers prefer? A) Mcc cement b) orient gold cement c) l&t cement D) coramandal cement E)arsis gold cement Omaha cement g)ambuja cement h)others 03) Which brand advertisement more effective in enhancing the sales? A) Mcc cement b) orient gold cement c) l&t cement D) coramandal cement E)rassi gold cement f)maha cement g)ambuja cement h)others 04) Which factor did customer consider in selecting a brand? Price Quality Quantity Brand image Packing Credit facility Dealer presentation 05) State your opinion with regard to piece comprised with other brands of Cement Company? a) Very high B) high C) slow D) low O6) What is the time taken for delivery after ordering? A very slow b) fast C) slow D) very delay 07)Are you satisfied with the packing made by Kesoram? a) Highly satisfied b) satisfied C) Highly dissatisfied D) dissatisfied

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08) ls Kesoram cement replaces the damage bags? A) YES B) NO 09) According to you which is the suitable advertising media for cement industries? a) Television b) Radio c) Wall painting d) Paper e) Bill boards F) Others |0)Rank the fast moving brand in your state? A) Mcc cement b) Orient gold cement c) L&t cement D) Coramandal cement E) Rassi gold cement f) Maha cemcnt g) Ambuja cement h) Others ll) Which brand have more number of sales in he market? A) Mcc cement b) Orient gold cement c) L&t cement D) Coramandal cement E) Rassi gold cement t) Maha cement g) Ambuja cement h) Others l2) What is the credit period given by Kesoram to their dealers? a) ten days b) one weak c) three days d) none of the above

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I3) Do you agree that Kesoram cement is major competitor to other cement companies? a) Highly agree b) agree c) highly disagree d)disagree l4) According to you which brand of cement price is high? A) Mcc cement b) Orient gold cement c) L&t cement D) Coramandal cement E) Rassi gold cement l) Maha cement g) Ambuja cement h) Others l4) Which facilities did both orient and Kesoram cement companies attract you for dealer ship? a) Offers b) discount c) commission l5) Which company provides better schemes and rewards on achieving the target? a) Kesoram cement b) orient gold c) others

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CHAPTER-V CONCLUSION AND SUGGESTIONS

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CONCLUSSION During the course of my study information is obtained mainly through interaction with the dealers personally The study was safe the survey conducted using questions are MAJOR COMPITETRS: - major competitor of Kesoram cement is MCC, CORAMANDAL KING, and L&T ORIENT AND RASSI MOST POPULAR: - the most popular among these brands are Karimnagar and adlibbed dist Kesoram cement and mcc cement FAST IN WORK:-it was found that MCC dealer consigrunent faster than Kesoramcement DEALER I-IARRASMENT: - it is shocking that even if there is a change of rupees l0/- the order broacher (as rate change) Kesoram cement adjust the consignment GIFT OFFERICREDIT PERIOD:- the credit period of Kesoram cement is only 10 days where as other brands gives about 15 to 45 days DISCOUNT:- very less discount is given to dealers on blank purchase than others brands quality among quantity Kesoram nods its first place than second by Birla ambuja PACKING: - the packing ofkesoram cement is best than compare to other brands Pricing:- even in pricing Kesoram and MCC are best and more preferred by customers NO INFORMATION: - the dealers are unaware of discount and offers and there is no proper response from factory manager MEETINGS AND SEMINARS:- Kesoram has no interest on their dealers are either on there customers where as MCC and L&T cement companies conduct half yearly meetings with their dealers to solve the problems facing by the dealers GIFT AND OFFERS:-there will not be any gift is offer to the dealers from kesoram cement company for that the dealers prefer other brands _ AVERAGE MARGIN: - it was found that average of MCC and coramandal cement companies are satisfactory where as kesoram cement goes less 69

SUGGESTIONS \The company should maintain healthy relationship with the dealers by making frequent visits and helping them in solving the problems faced by them letter of application must be given The company has to welcome new ideas and various schemas from the dealers for the improvement of Kesoram cement since they know the requirement of customers The company should conduct meetings with the dealers and should give some gifts and offers to boost the sales . Credit period should be increased and discount should be introduced in bluck purchase Proper own of information should be there Now not only the urban but also remote people are watching television so the company should give more advertisement in local channel which will give more awareness to the people There pricing strategy and margin should be competitive with other brands Regular market survey is required to analyses the present market conditions and the actions of competitors

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Questionnaire on Sales promotion


Kesoram cement factory Name of the shop: date: Name of the proprietor: ph no: District: signature: 1. l-low long have you been dealing with Kesoram cement? a)<1yr b)<3yrs c)3 to 6 years d)>6yrs 2. How do you feel the companies image? A)highly stained b)satisfied c)neutral d)dissatised e)0thers 3. According to you what makes customer more satisfaction in this field? a)brand name b)price c)quality d]usages e)others 4. How customers come to your shop ? a)by your inuenced b)by friends c)by advertising d)by brand name e)others 5. Do you face any difficulty in dealing with the customers? a)yes b)n0 if yes please specify 6.Are you satisfied with the supply from the company? a)highly satisfied b]moderately satisfied c)satisfied d)dies stained e)highly dissatisfied 7. How much door space you have provide form? a) goods storing purpose_ b)office purpose 8. How do you feel the service and delivery ofkesoram cement? a)highly satisfied b)moderately satisfied c)satisfied d]dies satisfied e)highly dissatisfied

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9. According to you most of the customers are aware of Kesoram cement through a) advertisement b)campaign c)dealer d)others 10. D0 you satisfy with the sales of Kesoram cement? a)highly satisfied b]moderately satisfied c)satisfied d)dies satisfied e)highly dissatisfied 11. How do estimate the demand for various products? a]past sales b)seasonal c)orders d)others 1Z.Do you face any difficult in dealing with the company? a)yes b)no ifyes please specify 13.What percentage of fright if incurs you to received goods from company to your store point? a)Z% b)3% c]4% d]5% 14. Do you feel like to suggest any thing which improves distribution effectiveness? a) yes b) no 15) In your view, what is one quality that Kesoram can retain its customers? Ans 16) What are the factors that Kesoram should look out to attract new customers? Ans 17) What are the factors that Kesoram is loosing on to retain its customers? Ans 18) What is the ratio of Kesoram cements sales out offal the products you deal in? Ans 19] Does Kesoram have its distributions outlets at you convenient points or how comfortable is it for you to get the stock from the Kesoram? Ans

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20) What is the average time Kesoram takes to deliver the stock upon order? Ans 21) How often you see the advertisement of Kesoram? Ans 22). Have you heard about the brand Kesoram? Yes El N0 El 23). Where did you sec the Advertisement On T.V. U ln Magazine El Hoarding El Others El 24). What type of advertisement do you like the most media or any other 7 Ans. 25). Which other cement advertisement can you recall? Ans. 26). Which company advertisement is most consistent? Ans. 27). Have you satisfied with the Kesoram product ?

Fully Satisfied Partially Satisfied III Dissatisfied

Seal & signature

Thanking you

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BIBLIOGRHAPHY

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BIBLO GRAPHY l) COMPANY brochures 2) Staff of Kesoram cement Reference books l) Marketing research Tull and hawkinstal 2) Principals of marketing Philip kotler 3) Marketing channels Stern 4) Advertising management Batra Deccan chronicle Economic times Business line lntemet/Web sites WWw.cementindia.com Www.cementindustry.com WWW.google.com WWw.kesoramindustry.com

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