Summer Internship Report

On
“Market Research on Brand Perception of Ambuja Cement”
e4r

Prepared By: - Under the guidance of: -

Biswadeep Purkayastha Mr. Sharad Shukla (Area Marketing
11510777, B15 Head)

(Batch: - 2018-2020) Ambuja Cement, Jalandhar region

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA – 144401, PUNJAB

In the partial fulfilment of Summer Internship for the award of degree of Master’s in Business
Administration (MBA) course under LPU.

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 PREFERENCE

Practical knowledge is important suffix to theoretical knowledge; One cannot merely rely upon
the theoretical knowledge. The study which has been completed in the duration of two months
is a first-time opportunity for me to carry out an industrial research project.

I was assigned to do my internship at Ambuja Cement Ltd. Jalandhar, Punjab. The report
contains a comprehensive discussion of “Market Research of Brand Perception of Ambuja
Cement” and its Findings of consumer perception in Jalandhar Region.

In order to make the data and findings easily understable+6 efforts have been made to present
the information in a simplified, lucid and in an organized manner. Wherever possible tables
and figures have been incorporated. Recommendation have been made on the basis of findings.

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 DECLARATION

I, Biswadeep Purkayastha, a 2nd Semester student of Mittal School of Business, Lovely

Professional University, Phagwara, hereby declare that this project report entitled “Market
Research on Brand Perception of Ambuja Cement” and its Findings of consumer perception
in Jalandhar Region is a record of independent research, work carried out by me and submitted
in partial fulfilment for the summer internship for the award of the degree of Master’s in
Business Administration by LPU, Phagwara.

The Study and recommendation drawn are original. The facts stated in the project are correct
to the best of my knowledge and belief.

I hereby apologize for any kind of mistake of misrepresentation of the information found in the
report. It is an original framework and has not been either fully or partially for the award of
any degree/diploma/fellowship to any Institution or University.

Date: - …………………………………………… (Biswadeep Purkayastha)

Place: - ………………………………………. Roll. No- B15, 2nd Semester
Mittal school of Business, LPU

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 CERTIFICATION

Certified that the summer internship project report on “Market Research on Brand
Perception of Ambuja Cement” is a bonafide work of Biswadeep Purkayastha, Regd. No
11510777, student of Master’s in Business Administration of Mittal School of Business,
lovely professional University carried out under my supervision during 27th May 2019 to 10th
July

Signature of the Industry Supervisor

Date: - 27th May 2019 to 10th July
Name of Supervisor: - Mr. Sharad Shukla
Designation: - Area Sales Manager

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 ACKNOWLEDGEMENT

A fruitful work is incomplete without paying a word of thanks to all the people who are directly
or indirectly involved in its completion.

I wish to express my heartfelt gratitude to Mr. Sharad Shukla, Area Sales Head for allowing
me to do a project in Ambuja Cement, Jalandhar.

Special thanks to Mr. Vinay Bhardwaj, Sales Officer, Phagwara or taking the time and effort
to review such extensive and complex material and for providing his reaction and
recommendation for improvement. I would also like to thank all other respected officials for
the supports that they had given me during the course of my project.

I also thank my respected mentor Mr. Harpreet Bedi, Assistant Professor, Lovely Professional
University, For the best possible guidance during the project. Last but not the least, I express
my sincere feelings of gratitude to my parents & my friends who have constantly encouraged
me in carrying out this work.

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TABLE OF CONTENTS
Sl. No Chapters Page No
1 Executive Summary 7
2 Major Findings 8
3 Conclusion 8-9
4 Recommendations 9
5 Problem Definition 9-11
 Company Overview
6 Industry Analysis 12-16
 Types of cement
 Market Players
 Region Wise Player
7 Consumption Pattern & demand Drivers 17
8 Regional Patterns 18-19
9 Cement Manufacturing Technology 19-26
10 Government Policies 26-27
11 Poter’s Five Force Model 28-29
12 Segmentation 30
13 Approach to problem 31
 Research Objective
 Scope of study
14 Research Design 31-34
 Types
 Information
 Data (Primary & Secondary)
 Scaling Techniques
15 Result 36-40
16 Limitation 40-41
17 Questionnaire 41-45
18 Bibliography 46

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 Executive Summary

Name of the organization: - Ambuja Cement Ltd. Jalandhar

Project Title: - A study on Consumer Perception of buying cement for the building
construction in Jalandhar Region.

Organization Guide: - Mr. Sharad Shukla (Area Sales Manager)

Mr. Vinay Bhardwaj (Asst. Sales Manager, Phagwara Area)

Location of the study: - Phagwara & All nearby Area (Punjab)

Duration: - 27th May 2019 to 27th June 2019

Introduction: -
The venture is performed at Ambuja Cement Ltd, Jalandhar. The task centres around examining
the buyer conduct in choosing Cement for development. This will give Ambuja Cements a
knowledge into the market and attempt to recognize the central point expected by the buyers
during bond buy. Bond clients are comprehensively grouped into 3 sections Individual lodging,
Industrial Construction and Government foundation. Individual houses establish almost half of
the aggregate by volume. Government Infrastructure and Industrial Construction represent
25% every one of the aggregates by volume.
The Cement organizations are keen on the individual lodging fragment since it is exceedingly
productive portion by worth contrasted with the other two sections. This fragment is most
gainful because the dealing intensity of individual house proprietors is high while the
administration and businesses make mass buy and request low costs. Thusly, the client section
picked for this undertaking was Individual houses portion which is gainful by volume and
worth.
This promoting task centres around discovering the main considerations that impacted their
basic leadership in picking concrete. Exploratory research was first done to get an
understanding into the bond business and flow patterns. A poll was readied and pretested with
various people. The survey posting different variables influencing their choice procedure was
refined and directed with house proprietors. At that point, the information was examined
utilizing SPSS. Factor examination was done to condense the central point that impacted basic
leadership of concrete purchasers.

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1.1. MAJOR FINDINGS
The research was conducted in Jalandhar & suburban areas of Jalandhar in Kapurthala district
of Punjab.
1. There are 3 major factors that influence the purchase decision of individual house owners,
namely: -
a. The properties of cement like strength, durability, quick setting, and fineness play a major
role in choosing cement.
b. Secondly, the company’s sales and marketing actions like media promotion, service,
competitive pricing comes out to be an important factor.
C. The recommendation of mason influences the customer in making the choice of cement.

2. ACC, Shree & Ambuja are the most preferred cements in this sample of 80.

3. People belonging to A1 and A2 socio-economic classes are the major customers in this
individual housing segment. A1 class prefers Ambuja (PPC) and A2 prefers Ambuja (OPC)
among other cements in this sample of 80.
Factor Analysis for A1 Socio-economic class and A2 socio-economic class were done
separately. The results are similar to the factor analysis done for the entire sample. That is, the
3 major factors, namely, the physical properties of cement, recommendation by influencers like
mason and the sales and marketing efforts of the company play a major role in purchase
decision holds true for both the A1 and A2 Socio-economic class who are the major customers
of cement.
A1- Rich, Businessmen, Upper middle class
A2- Middle Class and Below
4. Brand bought based on contractor’s recommendations is 85% and 15% choose from their
own
5. Income wise Distribution: 42.6% of the sample belongs to 20001-30000 categories, 32.1%
belongs to 30001-50000 and 25.3% are below 1 lakh slabs.
6. Age wise Distribution:37% of the respondents surveyed are within 35-50 years, 33% belongs
to 51-70 years and 30% are within 28-35 years

1.2. CONCLUSION

1.There are mainly 3 factors that contribute to the purchase decision of cement –

a. The properties of cement like strength, durability, quick setting, fineness, no cracks.
b. Recommendation by contractor’s plays a major role.

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 c. The company’s sales and marketing efforts like price, brand building, media, service also
influence the customer.

2. People belonging to A1 and A2 socio-economic classes are the major builders of individual
houses. Which consumes tons of cement

1.3. RECOMMENDATIONS

1. As all the bond organizations pursue the Bureau of Indian Standards in concrete creation,
the properties of the bond offered by various organizations remain practically comparable.
There won't be a lot of item separation. Subsequently, the organizations can concentrate on
their deals and advertising endeavours and attempt to stand out just with the assistance of
advancement, administration, conveyance, and so on. The proposals of artisans additionally
assume a noteworthy job. As the bricklayer's proposal assumes a noteworthy job in choice of
concrete by the purchaser, the organization can try to achieve the artisans by sorting out a meet-
giving away introduction on highlights of brand, supper, blessings, and so forth to advance the
brand.

2. Brand building activity should be done reliably to make mindfulness among the buyer.

3. Sensible costs are normal by most of the shoppers. Conversely, Ambuja and ACC which are
evaluated higher, appreciate higher piece of the overall industry in spite of lower estimated
brands. This demonstrates the brand quality discernment in purchaser's brains is identified with
cost. Individuals are happy to pay a more expensive rate for premium brands.

2.PROBLEM DEFINITION

2.1. BACKGROUND TO THE PROBLEM

2.1.1. COMPANY OVERVIEW

Ambuja Cements Ltd a subsidiary of the worldwide aggregate LafargeHolcim is among the
main bond organizations in India. The organization sells concrete under the Ambuja brand.
Ambuja Cements Ltd (ACL) was consolidated in the year 1981 as Ambuja Cements Pvt Ltd.
The organization was built up as a joint endeavour between the open segment Gujarat Industrial
Investment Corporation (GIIC) and Narottam Sekhsaria and Associates. In May 19 1983 the
organization was restored into an open restricted organization. In this manner the organization
name was changed to Gujarat Ambuja Cements Ltd. Further the name was changed to Ambuja

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Cements Ltd. Ambuja Cements is a noteworthy concrete creating organization in India. The
chief action of the organization is to fabricate and market concrete and clinker for both local
and fare markets. The organization has five coordinated bond assembling plants and eight
concrete pounding units. It is the main Indian concrete maker having a hostage port with three
terminals along the nation's western coastline to encourage opportune practical and earth
cleaner shipments of mass bond to its client. The organization has its very own armada of boats.
The organization auxiliaries incorporate Dang Cement Industries Private Ltd, M.G.T Cements
Private Ltd, Chemical Limes Mundwa Private Ltd and Dirk India Pvt Ltd. In the year 1985 the
organization set up a bond plant in specialized coordinated effort with Krupp Polysius Germany
Bakau Wolf and Fuller KCP. During the year 1988-89 the organization appointed the 12.6 MW
diesel-creating sets. In the year 1991 the organization got essential endorsements for setting up
another bond plant with 1-million-ton limit for each annum at Himachal Pradesh. The
organization attempted mass bond transportation via ocean to the real markets of Mumbai Surat
and other deficiency zones on the West Coast. In the year 1997 the organization began business
creation in Kodinar plant with an upgraded limit. In the year 1998 they set up a $20 million
clinker Grinding unit in Sri Lanka. In the year 2000 mammoths Larsen and Tubro (L&T) and
Gujarat Ambuja Cements entered a special consent to diminish transportation costs in
dispatching mass concrete in Gujarat. Additionally, they went into a yearly contract with a
Sinhalese firm Mahaweli Marine Cement to supply around 2.5 lakh huge amounts of cement.
In the year 2002 the organization began business creation at Maratha Cement Works plant. In
June 2002 they began business creation in the new 2-million-ton Greenfield concrete plant at
Chandrapur Maharashtra. In the year 2004 Ambuja Cement Rajasthan was amalgamated with
the company. In February 2005 the organization set up a bond factory with a limit of 80 TPH
at Darlaghat and initiated business generation. They charged a hostage warm power plant with
two 12 MW Steam Turbo Generators (STG) with two boilers of 45 TPH limit each at an
expense of Rs.94 crore. The first STG was charged in February 2005 and the second in May
2005. In July 2005 Indo-Nippon Special Cements Ltd an auxiliary organization was
amalgamated with the organization. The organization set up new clinker limit at Bhatpara in
Chhattisgarh and Ruari in Himachal Pradesh each having a limit of 2.2 million tons for every
annum at an expense of Rs. 1600 crore. In 2006 Global Cement Major Holcim obtained the
executives control of the company. The organization-initiated business creation at two new
2.2-million-ton clinker generation lines at Bhatpara (Chhattisgarh) and Ruari (HP) in
December 2009 and January 2010 separately. In February 24, 2010 the organization introduced
their concrete plant (granulating unit) at Dadri Uttar Pradesh with the limit of 1.5 million tons.
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In March 27, 2010, they initiated their concrete plant (pounding unit) at Nalagarh Himachal
Pradesh with the limit of 1.5 million tons. During the year the organization dispatched an extra
30 MW hostage control unit at Ambujanagar (Gujarat). In October 2010 the organization
consented to an arrangement with the Rajasthan State Industrial Development and Investment
Corporation to set up a 2.2 million-ton clinkerisation unit in Nagpur region. In December 2010
the Dadri Grinding Unit in its absolute first year of activity got the Integrated Management
System (IMS) Certification including ISO 9001:2008 ISO 14001:2004 and OHSAS
18001:2007 by BSI (U.K.). In the year 2011 the organization began business generation in
another concrete plant at an expense of approx. Rs. 185 crores at Bhatpara plant. Likewise,
they appointed another concrete plant of 0.9-million-ton bond crushing limit at Maratha
Cement Works plant at an expense of approx. Rs 61 crore. The organization appointed a 7.5
MW Windmill venture in Kutch Gujarat at an expense of Rs 46 crore. The organization
expanded the introduced limit in Bhatinda granulating unit in Punjab by 0.1 million tons to
reach at 0.6 million tons. Likewise, they expanded the introduced limit in Farraka pounding
unit in West Bengal by 0.25 million tons to reach at 1.25 million tons. In June 2011 the
organization made key interests in Dang Cement Industries Pvt. Ltd Nepal and gained 85%
shareholding for Rs 19.13 crore to help further development of limit in the northern locale of
India and Nepal. In September 2011 they obtained 60% shareholding in Dirk India Pvt Ltd
Maharashtra Rs. 16.51 crore. The organization went into a joint endeavour for claim to fame
bond fabricating office in Goa with Counto Microfine Products Pvt Ltd. On 24 July 2013 the
Board of Directors of Ambuja Cements endorsed a proposition to gain 50.01% stake in ACC.
It was chosen that Ambuja will initially obtain from Holderind Investments Ltd. Mauritius
(Holcim) a 24% stake in Holcim India for a money thought of Rs. 3500 crores pursued by a
merger of Holcim India into Ambuja. On 24 May 2016 Ambuja Cement declared the fulfilment
of its Rs 338-crore development venture at its Sankrail pounding unit close Kolkata along these
lines raising the limit of the unit to 2.4 million ton for each annum from 1.5 million ton for
every annum. On 15 November 2016 Ambuja Cement's abroad parent organization
LafargeHolcim declared that its auxiliary Holderind Investments Ltd. has expanded its
shareholding in Ambuja Cement Ltd. to 63.11% post the obtaining of extra 3.91 crore shares.
On 29 April 2017 Ambuja Cement declared the dispatch of a predominant composite concrete
item for better maintainability under the brand Ambuja.

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2.1.2. INDUSTRY ANALYSIS

•The Indian Cement industry is the second biggest market after China. It had an all out bond
generation limit of around 455 million tons (MT) as of November 2018. Concrete is a patterned
ware with a high relationship with GDP.

•The lodging and land segment is the greatest interest driver of concrete, representing about
65% of the absolute utilization in India. The other significant shoppers of bond incorporate
open foundation at 20% and mechanical improvement at 15%.

•Cement request is required to achieve 550-600 Million Tons Per Annum (MTPA) by 2025
upheld by get in the lodging portion and higher foundation spending. The business is right now
creating 280 MT for gatherings its residential interest and 5 MT for fares necessity.

•Moreover, the per capita utilization of concrete in India still remains considerably low at under
200 kg when contrasted and the world normal which stands at around 500 kg. If there should
be an occurrence of China, it is more than 1,000 kg for each head. This underlines the enormous
degree for development in the Indian bond industry in the long haul.

•Cement, being a mass ware, is a cargo concentrated industry and moving it over long
separations can demonstrate to be uneconomical. This has brought about concrete being to a
great extent a local play with the business isolated into five primary areas viz. north, south,
west, east and the focal locale. The Southern locale of India has the most elevated introduced
limit, representing around 33% of the nation's complete introduced bond limit.

2.1.3. TYPES OF CEMENT

There are a few assortments in concrete that dependably discover great interest in the market.
Among the various assortments of concrete, India produces Ordinary Portland Cement (OPC),
Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well
Cement, Rapid Hardening Portland Cement and Sulphate Resisting Portland Cement. The
portion of mixed concrete in all out-bond generation has expanded from 29 percent in 1997-98
to 54.5 percent in 2003-04.

Ordinary Portland Cement (OPC): Additionally, alluded to as dim bond or OPC, it is very
useful in common solid development. In the generation of this sort of concrete in India, Iron
(Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulphur trioxide (SO3)
12 | P a g e
segments are utilized. There are 2 evaluations of concrete – OPC43 and OPC53.It represents
70% of the utilization comes in 3 unique evaluations Ordinary Portland Cement 33, 43, 53
grade (OPC), 53-S (Sleeper Cement). 33, 43 and 53 grades in OPC demonstrates the
compressive quality of concrete following 28 days when tried according to Seems to be: 4031-
1988, e.g., 33 Grade implies that 28 days of compressive quality isn't under 33 N/mm2 (MPa).
Also, for 43 evaluation and 53 grade the 28 days compressive quality ought not be under 43
and 53 MPa individually. 43 and 53 evaluations are likewise being presented in PPC and PSC
in a matter of seconds by the Bureau of Indian Standards

Portland Pozzolana Cement (PPC): As it prevents cracks, it is useful in the casting work of
huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly ash, coal
waste or burnt clay is used in the production of this category of cement. It can be availed at low
cost in comparison to OPC. PPC produces less heat of hydration and offers greater resistance
to attack of aggressive environment, gives long-term strength and enhances the durability of
structures. PPC is manufactured by inter grinding OPC clinker with 15-35% of pozzolanic
material. Pozzolanas are essentially siliceous or aluminous material, which in itself possesses
no cementitious properties, which will be in finely divided form and in the presence of moisture
react with calcium hydroxide, liberated in the hydration process, at ordinary temperature, to
form compounds possessing cementitious properties. The pozzolanic materials generally used
are fly ash or calcined clay. PPC is used in heavy load infrastructure and constructions such as
marine structures, hydraulic structures, mass concreting works, plastering, masonry mortars,
and all applications of ordinary Portland cement.

White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement are
inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained below 0.4%
to secure whiteness. White cement is largely used to increase the aesthetic value of a
construction. It is preferred for tiles and flooring works. This cement costs more than grey
cement.

Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45 per cent clinker, 50
per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent of the total
cement consumed. It has a heat of hydration even lower than PPC and is generally used in the
construction of dams and similar massive constructions. PSC is obtained by mixing blast
furnace slag, cement clinker and gypsum and grinding them together to get intimately mixed
cement. The quantity of slag varies from 30-70%. The gain of strength of PSC is somewhat

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slower than OPC. Both PPC and PSC will give more strength than that of OPC at the end of
12 months. PPC and PSC can be used in all situations where OPC is used, but are preferred in
mass construction where lower heat of hydration is advantageous or in marine situations and
structures near seacoast or in general for any structure where extra durability is desired.For eg,
Marine structure, structures near the sea, sewage disposal treatment works, water treatment
plants, etc

Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well Cement is used in
constructing or fixing oil wells. This is applied on both the off-shore and on-shore of the wells.

Sulphate Resistant Cement: Sulphate Resistant Cement is used in projects such as dams that
are exposed to high amounts of sulfates. It is also used wherever there are constructions that
are in direct contact with clay soil, which contains a large amount of sulfate salt, such as
foundations and pillars.

Sulphate Resistant is a pre-blended, ready-to-use cement base grout containing non-ferrous

fluidities and anti-shrinkage compounds blended with siliceous aggregate and Portland cement.
A highly sulphate resistant cement, with an extremely low C3A content, is utilized in the
manufacture of Sulphate Resistant Grout. This special cement is very resistant to attack from
sodium and magnesium sulphates found in ground water. SRC can be used for Foundation,
Piles, Basements, Underground structures, sewage and water treatment plants and coastal
works, where Sulphate attack due to water or soil is anticipated

2.1.4. MARKET PLAYERS

The larger Players in the industry control nearly 53% of the capacity and revenues for the sector
in India. The key players in the country include Associated Cement Companies (ACC),
Ultratech
Cements, Grasim Industries, Gujarat Ambuja Cement and India Cements Limited. The market
share of the major cement players, in terms of revenue and production.

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 CHART-1
Major Market Players

S.no Name of the cement Share% (Approx.)

1 ACC 17
2 Ambuja 15
3 Jk Lakshmi 12
4 Shree Ultra 11
5 Ultratech 9
6 Bunger 7
7 Others 29

SALES SHARE

Acc Ambuja JK Lakshmi Shree Ultra Ultratech Bunger Others

REGIONWISE PLAYERS

NORTHERN REGION
1.Ultratech Industries Ltd
2.Ambuja Cements Ltd.
3. A C C Ltd
4. Bunger Cement Ltd.
5.Bajaj Cement ltd
6.Shree Cement Ltd.
7.J K Cement Ltd.

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8.Binani Cement Ltd.

EASTERN REGION
1.Ambuja Cements
2.Grasim Industries Ltd.
3.A C C Ltd.
4.Ultratech Cement Ltd.
5.Birla Corporation Ltd.
6.Century Textiles & Inds. Ltd.
7.O C L India Ltd.

SOUTHERN REGION
1.Grasim Industries Ltd.
2.A C C Ltd.
3.Ultratech Cement Ltd.
4.India Cements Ltd.
5.Madras Cements Ltd.
6.Dalmia Cement (Bharat) Ltd.
7.Chettinad Cement Corpn. Ltd.

WESTERN REGION
Ambuja Cements Ltd.
Grasim Industries Ltd.
A C C Ltd.
Ultratech Cement Ltd.
Century Textiles & Inds. Ltd.
Sanghi Industries Ltd.

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2.1.5. CONSUMPTION PATTERN & DEMAND DRIVERS
In the current monetary concrete utilization has shot up, revealing, on a normal, 12.5%
development in utilization during the initial eight months with the development being helped
by solid foundation spending, particularly from the govt segment. The general viewpoint for
the business is sure and indicates critical development on the back of strong interest from
lodging development, National Highway Development Project and other framework
improvement ventures.
Cement is primarily utilized in Independent houses, lodging edifices, business buildings and
foundation. The interest drivers for the bond part keep on being lodging, framework and
business development, and so forth. Lodging area goes about as the chief development driver
for cement. Be that as it may, as of late, modern and framework division have likewise
developed as interest drivers for concrete. Individual lodging area is the significant shopper of
concrete (half of bond request) trailed by the administration foundation part. The clients are
ordered as retail clients and modern clients

Retail-customers:
People who build their own houses or contractors who opt to buy cement through distribution
channel are the retail customers. A retail customer can buy cement from a retail outlet
(Hardware shop) from his area

Industrial customers: A customer who has a registered company and buys large quantities
of cement can buy cement directly from sales points. Government is an industrial customer.

CHART2

Consumption Pattern in India

25%
Housing
50%
Infrastructure
Corporate
25%

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Over the next five years, the numbers of households are expected to increase at a CAGR of
Approx. 10-11 per cent, against a population growth rate of over 1.1 per cent. The growth in
urban households will be higher than rural households, shifting the rural-urban household ratio
from 70:30 to 67:33. As the growth in households is higher than the population growth, it will
accelerate the demand for new houses. Higher demand and greater affordability due to lower
interest rates and tax breaks is expected to trigger an unprecedented housing boom. The housing
finance industry has estimated a latent demand of 33 million houses and forecasts a growth of
50 per cent per annum till 2007. With the housing sector accounting for 50 per cent of the
current cement demand, this boom is expected to propel even higher cement demand.

2.1.6. REGIONAL PATTERN

Transporting cement, a bulk commodity, it over long distances is uneconomical. This has
resulted in cement being largely a regional play with the industry divided into five main
regions. north, south, west, east and the central region. The southern region accounts for the
largest share in overall production (29 per cent) due to the vast availability of limestone. This
is followed by the northern (21 per cent) and the western regions (19 per cent)

CHART3
Cement Production

19 North
21%
% South
East & West

29%

Source: Indian Brand Equity Foundation Sectoral Report

Cement consumption varies across regions due to the differences in the demand-supply
balance, per capita income and the level of industrial development in each state. In 2008-2009,
northern India accounted for the highest proportion of cement consumption (32 per cent),
followed by the southern (28 per cent), western (25 per cent) and eastern regions (15 per cent).
Over the years it has been observed that demand in the east has been driven by the housing
sector, whereas infrastructure, investments in industrial projects and the housing sector (in
18 | P a g e
varying proportions) have propelled demand in the western, northern and southern regions. The
western and northern regions are the most lucrative markets due to their higher price
realisations.

CHART4
Cement Consumption Pattern
35
30
25
20
Cement Consumption
15
Pattern
10
5
0
North South East West

Among the Indian States, Maharashtra is leading in consumption (12.18%) followed by Uttar
Pradesh. In production terms, Andhra Pradesh is leading with 14.72% of total production.
Northern and Southern regions consume around 20-30% while the central and western region
consume only around 16-18%.

Therefore, the competition in the cement industry in India is increasing at a rapid rate. There
are several players in the cement industry. Many foreign players are also entering Indian
Markets by acquiring substantial stakes in Indian Companies. The Indian Cement Market is
flourishing with multiple brands.

The Cement industry is currently dominated by 20 Companies which account for 70% of the
market. Although consolidation has taken place in the Indian cement industry with the top five
players controlling almost 60% of the capacity, the balance capacity remains fragmented.

2.1.7. CEMENT MANUFACTURING TECHNOLOGY

The assembling procedure of cement comprises of the blending, drying and pounding of
limestone, earth and silica into a composite mass. The blend is then warmed and consumed in
a pre-radiator and furnace to be cooled in an air-cooling framework to shape clinker, which is
the semi-completed structure. This clinker is cooled via air and in this manner ground with

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gypsum to frame bond. Portland concretes are made by pounding a blend of limestone, dirt and
other restorative materials, viz. Laterite, Bauxite, and so forth. Fundamental constituents for
the most part are Lime, Silica, Alumina and Iron Oxide. The way toward assembling comprises
of crushing of crude materials into fine powder, blending them and consuming in an oven at
around 1400 deg. C. The resultant item is called Clinker. Clinker is cooled, ground to fine
powder with gypsum. The item is concrete. There are three kinds of procedures to shape
concrete - the wet, semi-dry and dry procedures. In the wet/semi-dry procedure, crude material
is created by blending limestone and water (called slurry) and mixing it with delicate earth. In
the dry procedure innovation, squashed limestone and crude materials are ground and
combined without the expansion of water. The dry and semi-dry procedures are eco-friendlier.
The wet procedure requires 0.28 huge amounts of coal and 110 kWh of capacity to fabricate
one ton of bond, while the dry procedure requires just 0.18 huge amounts of coal and 100 kWh
of intensity. Coal and power costs represent 35 percent of the absolute bond creation costs.
With 95 percent of the absolute limit dependent on the cutting-edge dry procedure innovation,
the Indian concrete industry has turned out to be more cost productive. Top organizations in
the bond business coordinate very well with world guidelines as far as vitality (warm vitality
Kcal/kg of clinker - India 665 against 690 of Japan) and contamination standards (SPM of 40
in India against 20 in Japan).

CHART 5
Cement process
5
%

Dry
Wet & Semi-dry

95%

Source: Indian Brand Equity Foundation Sectoral Report

The main raw materials used in the cement manufacturing process are limestone, sand, shale,
clay, and iron ore. The main material, limestone, is usually mined on site while the other minor
materials may be mined either on site or in nearby quarries. Another source of raw materials is

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industrial by-products. The use of by product materials to replace natural raw materials is a key
element in achieving sustainable development.

Figure 1

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 Figure 2

Cement Manufacturing Process

Raw Material Preparation-Blasting and Crushing of Limestone

Mining of limestone requires the use of drilling and blasting techniques. The blasting
techniques use the latest technology to ensure vibration, dust, and noise emissions are kept at
a minimum. Blasting produces materials in a wide range of sizes from approximately 1.5
meters in diameter to small particles less than a few millimetres in diameter. Material is loaded
into trucks for transportation to the crushing plant. Through a series of crushers and screens,
the limestone is reduced to a size less than 100 mm and stored until required. Depending on
size, the minor materials (sand, shale, clay, and iron ore) may or may not be crushed before
being stored in separate areas until required.

Grinding

The raw materials are next ground together in a raw mill. Passing into the raw mill, the mixture
is ground to raw mix. It is important that the raw mix contains no large particles in order to
complete the chemical reactions in the kiln, and to ensure the mix is chemically homogenous.

22 | P a g e
In the wet process, each raw material is proportioned to meet a desired chemical composition
and fed to a rotating ball mill with water. The raw materials are ground to a size where most of
the materials are less than 75 microns. Materials exiting the mill are called "slurry" and have
flowability characteristics.

Blending and Homogenization

This slurry is siphoned to mixing tanks and homogenized to guarantee the synthetic structure
of the slurry is right. This slurry is passed on to the mixing framework by traditional fluid
siphons. Following the homogenization procedure, the slurry is put away in tanks until
required. On account of wet procedure, water is added to the crude factory feed, and the plant
item is a slurry with dampness content often in the scope of 25-45% by mass. On account of a
dry procedure, the crude plant additionally dries the crude materials, often by-passing hot
fumes gases from the oven through a lot, with the goal that the crude blend rises as a fine
powder. This is passed on to the mixing framework by transport line or by a powder siphon.
Homogenization: Calcium and silicon are available to frame the quality creating calcium
silicates. Aluminium and iron are utilized to deliver fluid ("motion") in the oven consuming
zone. The fluid goes about as a dissolvable for the silicate-shaping responses and permits these
to happen at a monetarily low temperature. Inadequate aluminium and iron lead to troublesome
consuming of the clinker, while over the top sums lead to low quality because of weakening of
the silicates by aluminates and ferrites. Exceptionally little changes in calcium substance lead
to huge changes in the proportion of alite to belite in the clinker, and to comparing changes in
the concrete's quality development attributes. The overall measures of every oxide are in this
way maintained consistent in control to keep up enduring conditions in the oven, and to keep
up steady item properties.
In the dry procedure, every crude material is proportioned to meet an ideal compound piece
and sustained to either a turning ball factory or vertical roller plant. The crude materials are
dried with waste procedure gases and ground to a size where most of the materials are under
75 microns. The dry materials leaving either kind of plant are classified "oven feed". The
furnace feed is pneumatically mixed to guarantee the substance arrangement of the oven feed
is very much homogenized and after that put away in storehouses until required.

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Pyro processing-Formation of clinker

Rotating kiln

Clinker

Regardless of whether the procedure is wet or dry, a similar concoction response occurs.
Essential substance responses are dissipating all dampness, calcining the limestone to deliver
free calcium oxide, and responding the calcium oxide with the minor materials (sand, shale,
mud, and iron). This outcomes in a last dark, measured item known as "clinker" which has the
ideal pressure driven properties. In the wet procedure, the slurry is encouraged to a revolving
oven, which can be from 3.0 m to 5.0 m in distance across and from 120.0 m to 165.0 m long.
The rotational oven is made of steel and fixed with exceptional unmanageable materials to
shield it from the high procedure temperatures. Procedure temperatures can reach as high as
1450oC during the clinker making process. In the dry procedure, oven feed is encouraged to a
preheater tower, which can be as high as 150.0 meters. Material from the preheater tower is
released to a turning oven with can have a similar distance across as a wet procedure furnace
yet the length is a lot shorter at roughly 45.0 m. The preheater tower and turning oven are made
of steel and fixed with uncommon headstrong materials to shield it from the high procedure
temperatures.
Notwithstanding the procedure, the revolving furnace is terminated with an extraordinary fire,
created by consuming coal, coke, oil, gas or waste energizes. Preheater towers can be outfitted
with terminating too. The rotational oven releases the super-hot clinker under the extreme fire
into a clinker cooler. The clinker cooler recoups heat from the clinker and returns the warmth
to the pyro processing framework along these lines diminishing fuel utilization and improving
vitality productivity. Clinker leaving the clinker cooler is at a temperature helpful for being
taken care of on standard passing on gear.

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Finish Grinding and Distribution

The black, nodular clinker is stored on site in silos or clinker domes until needed for cement
production. Clinker, gypsum, and other process additions are ground together in ball mills to
form the final cement products. Fineness of the final products, amount of gypsum added, and
the amount of process additions added are all varied to develop a desired performance in each
of the final cement products. Each cement product is stored in an individual bulk silo until
needed by the customer. Bulk cement can be distributed in bulk by truck, rail, or water
depending on the customer's needs. Cement can also be packaged with or without colour
addition and distributed by truck or rail.

2.1.8. COST

Over the past seven years, cost of cement production has grown at a CAGR of 8.4%. Also, the
producers have been able to pass on the hike in cost to consumers on the back of increased
demand. Average realizations have increased from Rs. 1,880 per tonne in FY 03 to Rs. 3,133
per tons in FY 09, at a CAGR of 13.6%, which has been reflected in higher profit margins of
the industry. To reduce the cost of production, the industry has focused on captive power
generation. Proportion of cement production through captive power route has increased over
the years. Also, cement movement by rail has increased over the years. Freight and energy
costs are also increasing; however, in the current market scenario, manufacturers have the
flexibility to pass on the increase in costs to end consumers.

Let us have a look at the cost factors affecting the cement industry

Capacity Utilization: Since the industry operates on fixed cost, higher the capacity sold, the
wider the cost distributed on the same base. But one should also keep in mind, that there have
been instances wherein despite a healthy capacity utilization, margins have fallen due to lower
realizations.

Power: The cement industry is energy intensive in nature and thus power costs form the most
critical cost component in cement manufacturing (about 30% to total expenses). Most of the
companies resort to captive power plants in order to reduce power costs, as this source is
cheaper and results in uninterrupted supply of power.

Therefore, higher the captive power consumption of the company, the better it is for the
company.

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Freight: Since cement is a bulk commodity, transporting is a costly affair (over 15%).
Companies, which have plants located closer to the markets as well as to the source of raw
materials have an advantage over their peers, as this leads to lower freight costs. Also, plants
located in coastal belts find it much cheaper to transport cement by the sea route in order to
cater to the coastal markets such as Mumbai and the states of Gujarat and Tamil Nadu. On
account of enough reserves of raw materials such as limestone and gypsum, the raw material
costs are generally lower than freight and power costs in the cement industry. Excise duties
imposed by the government and labor wages are among the other important cost components
involved in the manufacturing of cement.

Operating margins: The company should have a consistent record of outperforming its peers
on the operational performance front i.e. it should have higher operating margins than its
competitors in the industry. Factors such as captive power plants, effective capacity utilization
results in higher operating margins and therefore these factors should be looked into. Since
cement is a regional play on account of its high freight costs, the company should not have all
its plants concentrated in one region. It should have a geographical spread so that adverse
market conditions in one region can be mitigated by high growth in the other region.

2.1.9. GOVERNMENT POLICIES

Government policies have affected the growth of cement plants in India in various stages. The
control on cement for a long time and then partial decontrol and then total decontrol has
contributed to the gradual opening of the market for cement producers. The stages of growth
of the cement industry can be best described in the following stages:

Price and Distribution Controls (1940-1981)

During the Second World War, cement was declared as an essential commodity under the
Defence of India Rules and was brought under price and distribution controls which resulted
in sluggish growth. The installed capacity reached only 27.9 MT by the year 1980-81.

Partial Decontrol (1982-1988)

In February 1982, partial decontrol was announced. Under this scheme, levy cement quota was
fixed for the units and the balance could be sold in the open market. This resulted in extensive
modernization and expansion drive, which can be seen from the increase in the installed
capacity to 59MT in 1988-89 in comparison with the figure of a mere 27.9MT in 1980-81, an
increase of almost 111%.

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Total Decontrol (1989)
In the year 1989, total decontrol of the cement industry was announced. By decontrolling the
cement industry, the government relaxed the forces of demand and supply. In the next two
years, the industry enjoyed a boom in sales and profits.
By 1992, the pace of overall economic liberalization had peaked; ironically, however, the
economy slipped into recession taking the cement industry down with it. For 1992-93, the
industry remained stagnant with no addition to existing capacity.

Government Controls
The prices that primarily control the price of cement are coal, power tariffs, railway, freight,
royalty and cess on limestone. Interestingly, all of these prices are controlled by government

Opening the FDI channel

The impact of government policies on cement demand has been steadily decreasing with the
sector being gradually deregulated. At present, 100 per cent foreign direct investment (FDI) is
permitted
in the cement industry. Lafarge was the first foreign company to enter the Indian market in
1999.

State policies and export norms to encourage investment

Both the state and export policies promote cement production. Exporters can claim duty
drawbacks on imports of coal and furnace oil up to 20 per cent of the total value of imports.
Most state governments offer fiscal incentives in the form of sales tax exemptions/deferrals in
order to attract investment. In some states, this applies only to intra-state sales, like Madhya
Pradesh and Rajasthan. States like Haryana offer a freeze on the power tariff for 5 years, while
Gujarat offers exemption from duty on electricity.

Urban Land Ceiling Act repeal could be a driver

The Urban Land Ceiling Regulation Act (ULCRA) enacted to control and prevent the
concentration of urban land, has been repealed in many states. This could facilitate the
development of such land for housing and other construction.

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2.1.9. COMPETITOR ANALYSIS-PORTER’S 5 FORCES MODEL

Supply The demand-supply situation is tightly balanced with the latter being marginally higher than
the former.

Demand Housing sector acts as the principal growth driver for cement. However, in recent times,
industrial and infrastructure sector have also emerged as demand drivers for cement.

Barriers to High capital costs and long gestation periods,high capacity.Access to limestone reserves
entry (principal raw material for the manufacture of cement) also acts as a significant entry barrier.

Bargaining Licensing of coal and limestone reserves, supply of power from the state grid and availability of
power of railways for transport are all controlled by a single entity, which is the government. However,
suppliers nowadays producers are relying more on captive power, but the shortage of coal and volatile
fuel prices remain a concern.

Bargaining Cement is a commodity business .The industries and government make bulk purchases.So,they
power of bargain and the value of the segment is less compared to individual customers whose
customers bargaining power is less.

Competition Due to large number of players in the industry and very little brand differentiation to speak of,
the competition is intense with players resorting to expanding reach and achieving pan India
presence

28 | P a g e
 PORTER’S 5 FORCES MODEL

Threat of Substitutes –
Limited Only bitumen in
road, and engineering
plastics in building offer
some element of
competition,
otherwise no close

Inter Firm Rivalry-Intense

Bargaining Power of Bargaining Power of
Suppliers-Very High Large number of players, Buyers-Limited
Monopolistic control of intermittent overcapacity;
external cost element marginal product The individual house
(coal, power, differentiation; high storage owners do not make bulk
transportation and taxes) costs; and, high exit barrier in purchase. So, have less
results in high form of significant capital bargaining power.
bargaining power with the investment has led to stiff
government competition in the industry.

Threat of New Entrants-

Limited
High capital investment,
broad distribution network
and oversupplied market
deter new entrants.
However, technology and
manpower is easily
available.

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2.1.10. SEGMENTATION

Differences between 2 Segments

TABLE 1

Parameter Housing Govt.

Share/Size by volume 50% 25%
Consistency of Demand Steady Sporadic/economy related
Buying System Non-Tender Tenders-Lowest Bid
Number Multiple Client Lesser
Tech Expertise Low High

Since the legislature bulks buy of concrete, it can deal over the cost. Therefore, the cement
deals to government will lessen benefits. Whereas, the retail buyer's capacity is low, and they
add to half of volume which is higher than the government. Therefore, the key purchaser is
retail customer.

Target Customer Definition for Ambuja Cements

Private Housing Segment (Individual Houses)

1.Geographic segmentation-

Region- North India

State- Punjab
 Cities (Amritsar, Jalandhar, Ludhiana, Patiala, etc.)
 Rural Areas (Khajurla, Apra, Banga, Noor Mahal, etc.)

2.2.10 STATEMENT OF THE PROBLEM

To identify key factors leading to the purchase of a brand of cement

30 | P a g e
3. APPROACH TO THE PROBLEM

3.1. RESEARCH OBJECTIVE

To study the consumer behaviour in cement, esp. decision making, brand choice;
and to recommend a marketing strategy to Ambuja Cement

3.2. SCOPE OF STUDY

This study focuses on consumers who bought cement in Chennai & suburbs recently.

4.RESEARCH DESIGN

4.1. TYPE OF RESEARCH DESIGNS USED

1.Exploratory Research Design-The primary objective of Exploratory Research is to provide

insights into, and an understanding of the problem from a small sample.

2.Descriptive Research Design- It is used to describe the characteristics of relevant consumer

groups. It is a structured design marked by a clear hypothesis of the problem.

4.2. INFORMATION NEEDS

The information that is needed is profile of the customer and customer’s choice of cement.

4.3.DATA COLLECTION FROM SECONDARY SOURCES

The secondary data was collected from the company and the company’s website.
The web has been a major source of collection of secondary data where from data regarding
the Indian Cement Industry was collected with regards to a brief history, government
regulations. The data collected gives us a view of the major players in the industry and their
current competitive position in the market.
The data was also collected from hardware stores and masons to get an insight into the cement
industry and current trends in the industry.

4.4.DATA COLLECTION FROM PRIMARY SOURCES

The basic research paradigm is followed:

1) Define the target population.

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 2)Select a sampling technique.
3)Determine the sample size.
4) Do the research on the sample.
5) Infer results from the sample back to the population.

Target Population
The populace comprises of individual house proprietors in Jalandhar Region. The example was
picked dependent on judgemental examining. That is, the example components were picked in
Jalandhar Region of Punjab.
The bartering intensity of individual house proprietors is less to the extent buy of concretes is
concerned. The legislature and the modern clients go for mass buy. Along these lines, their
bartering force is high. Thusly, the estimation of that fragment is less contrasted with the
estimation of the individual lodging section.

4.5. SCALING TECHNIQUE

Interval Scale is used in this project. In interval scale, numerically equal distances on the scale
represent equal values in the characteristic being measured.
The Scaling Technique used is Likert Scale. It is a non-comparative scaling technique. A non-
comparative scaling technique evaluates one object at a time.7-point Likert Scale is used.1-Not
important and 7 represents Important. High score represents favourable attitude and low score
represents an unfavourable response.
Likert scale is easy to construct and administer. Respondents easily understand the scale.

TABLE 2

Likert Scale

Not important Very Important

a. Reasonable Price of Cement 1 2 3 4 5 6 7

b. Strength of cement 1 2 3 4 5 6 7

c. Quick setting 1 2 3 4 5 6 7

d. Durability of cement 1 2 3 4 5 6 7

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e. Colour of Cement 1 2 3 4 5 6 7

f. Trusted Brand Name 1 2 3 4 5 6 7

g. Unadulterated 1 2 3 4 5 6 7

h. Direct Delivery from factory 1 2 3 4 5 6 7

i. Ideal Customer Service 1 2 3 4 5 6 7

j. Reduction in Cracks 1 2 3 4 5 6 7

k. Fineness of Cement 1 2 3 4 5 6 7

l. Available in nearby shops 1 2 3 4 5 6 7

m. Recommended by contactor 1 2 3 4 5 6 7

n. Recommended by shopkeeper 1 2 3 4 5 6 7

o. Recommended by engineer 1 2 3 4 5 6 7

p. Used widely 1 2 3 4 5 6 7

q. Extensive Media coverage 1 2 3 4 5 6 7

4.6. QUESTIONNAIRE DEVELOPMENT AND PRETESTING

In order to perform the survey, a questionnaire is designed keeping in mind of the cement
market in the Jalandhar Area
Questionnaire for Study of Cement Preference
The questionnaire prepared must aid in gathering primary data from the customers, i.e. from
the market. The questionnaire was designed based on the following paradigm:

 The individual question content was designed

 Question structure and wording was decided
 The questions were arranged in proper order.
 The form and layout were designed.
 The questionnaire was pretested with 6 respondents and then refined before actual
research.

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4.7. SAMPLING TECHNIQUE

Test was chosen dependent on subjective components like number of factors, nature of
research. The inspecting technique embraced is Judgment Sampling, a Non Probability testing
strategy .Judgment examining is a type of accommodation inspecting in which the populace
components are chosen dependent on the judgment in light of the fact that the scientist accepts
that the example is illustrative of the number of inhabitants in intrigue. It is old and hence
trustworthy.

The principle explanation behind inclining toward Ambuja Cements is that it is solid.
They can blend additional packs of sand with Ambuja Cement though that can't be the situation
with different cements.
A Contactor said that he might want to go for ACC and another favored UltraTech
Setting time with ACC is Fast.
Setting time with Ultratech is extremely quick.
They find that Ultratech/ACC is unadulterated.

5. DATA ANALYSIS

5.1. METHODOLOGY

1. Research was done initially with 4-6 masons to get an insight into the problem.
2. Questionnaire was prepared, and the research was carried out with a sample of 6-10.
3. The questionnaire was modified and was administered with a sample of 75.
4. Simple analysis was carried out.

5.2. PLAN OF DATA ANALYSIS

5.2.1. EXPLORATORY RESEARCH

Survey on cement usage in Individual houses and Flats:

Mason/Contactor is found to be the decision maker in both individual houses and flats. But, in
case of individual houses, the customer has a say in selecting cements. However, in most cases,
mason decides the cement because he is believed to possess technical expertise. And the house
holder believes him to be the best of all

34 | P a g e
Location: A Construction site in Banga: A mason and a worker at a construction site in Banga
said that they prefer Ambuja Cements because of the following reasons:

 It is old and hence trustworthy.

 The main reason for preferring Ambuja Cements is that it is strong.
 They can blend additional packs of sand with Ambuja Cement though that can't be the
situation with different cements.
 They feel that Ambuja cements is unadulterated whereas other cements are mixed with
ash/rock powder.
 A mason said that he would like to go for ACC and another preferred UltraTech
 Setting time with ACC is Fast.
 Setting time with Ultratech is very fast.
 They find that Ultratech/ACC is unadulterated.

5.2.2. DESCRIPTIVE RESEARCH

There are 3 measurements to be specific, Cement properties, organization's deals and

promoting activities and proposal by brick layers which impact the basic leadership of the
concrete clients.
Unmistakable Research was finished with an example of 75 to discover the purchaser conduct
in picking concrete.
Analysis is done to distinguish the main considerations in charge of the buy choice.

5.2.3. SAMPLE INPUT

There are 17 Questions in questionnaire and sample size was 75. Each question was given a
response on a 1-7 Likert Scale representing

1-Not important

7-Very important

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6. RESULT
Therefore, finally there are 3 underlying factors, mainly
1. Properties of cement like strength, durability, quick setting, no cracks, fineness etc.
2. Recommendation by mason is a major influencing factor.
3. Company’s sales and marketing actions like promotion, service, pricing etc.
Some observations made during the field work are:
a. Mostly, the owners go by the engineer and mason’s recommendations.
b. The cement is selected based on the quality, strength, durability, no cracks, fineness, etc.
c. The company’s efforts also play a major role in boosting cement sales like pricing, media,
service, etc.
4. The cement that was most preferred in sample of 75 was ACC and JK Lakshmi. The
cements that followed were Bunger & Shree Ultra.

CHART 6

SURVEY OUTCOME

ACC Ambuja Bunger JK Lakshmi Shree Ultra Ultratech Bajaj Duraton

36 | P a g e
Retail Price Metrics of Cement in Jalandhar
Duraton - Rs. 340
Ultratech - Rs. 350
ACC - Rs. 360
Shree Ultra - Rs. 350
Jk Lakshmi - Rs. 350
Ambuja - Rs. 370
Bunger - Rs. 355
Bajaj - Rs. 330
Reasonable prices are expected by most of the consumers. But, Ambuja & ACC which are
priced higher enjoys higher market share. This shows that the brand quality perception in
consumer’s minds is related to price. People are willing to pay higher price for premium quality
brands. People belonging to A1 and A2 socio-economic class are the major individual home
buyers, i.e., the main customers of cement.

CHART 7
Socio-Economic Class

C
B22.6%3%
B1 10.6%
11%
4%
4%
45.3% A1
45%
37.3%

A2
37%

A1- Businessmen, middle and senior Executives

A2- Businessmen, middle and senior executives with college education, supervisors, graduate
shipowners
B1- Businessmen with school-level education, graduate salesmen and supervisors, junior
executive and supervisor with college education

37 | P a g e
B2- Shop owners, self-employed professional with elementary education, salesmen and
supervisors without graduation and graduate petty trader
C- Petty trader with school-level education and salesmen, supervisor with elementary
education.
The chart below shows that 24 % of A1 class prefers Ambuja and 17.3% of A2 prefers Ambuja
among other cements in this sample of 75. So, A1 and A2 are potential customers for Ambuja
as the pricing of the product is little bit higher compared to other brands.

CHART 8
Ambuja Preference

AMBUJA PREFERENCE

A1 A2 B1 B2 C

CHART9
Decision Maker

8% 7%

Mason
Self
85%
Friend

This chart represents the percentage of respondents in each locality covered by the survey.

38 | P a g e
 CHART 10
Location-wise distribution of respondents

Area Based Respondent

25

20
20 18
16
15
12
10
10
7
5
5 4
3 3
2

Area Based Respondent

CHART 11
Income-wise distribution of respondents

Income Factor

10000-15000 15001-25000 25001-30000 30001-45000 40000 & Above

39 | P a g e
 CHART 12
Age-wise distribution of respondents

AGE

30-40 yrs 41-51yrs 52-62yrs 63 & Above

7. LIMITATIONS AND CAVEATS

1. This sample is restricted to Jalandhar Region of Punjab.
2. As per the company’s source, the cement preference varies from one city to another. So;
there is ample opportunity for cement companies to promote their brand.

8. CONCLUSIONS
1. There are mainly 3 factors that contribute to the purchase decision of cement –
a. The properties of cement like strength, durability, quick setting.
b. Recommendation by mason plays a major role.
c. The company’s efforts like price, brand building, media, and service also influence the
customer.
2. People belonging to A1 and A2 socio-economic classes are the major builders of
individual houses. Therefore, the advertisements can focus on this segment in order to
motivate them.

8.1. RECOMMENDATIONS
1. As all the cement companies follow the Bureau of Indian Standards in cement production,
the properties of the cement offered by different companies remain almost similar. There will
not be much of product differentiation. Therefore, the companies can focus on their sales and
marketing efforts and try to stand out only with the help of promotion, service, delivery, etc.
The recommendations of masons also play a major role.
40 | P a g e
As the mason’s recommendation plays a major role in selection of cement by the consumer,
the company can make special promotional effort to reach the mason by organizing a meet-
giving away presentation on features of brand, dinner, gifts, etc. to promote the brand.

2. Brand building exercise needs to be done consistently to create awareness among the
consumer.
3. Reasonable prices are expected by most of the consumers. In contrast, Ambuja and ACC
which are priced higher, enjoy higher market share inspite of lower priced brands. This shows
that the brand quality perception in consumer’s minds is related to price. People are willing to
pay a higher price for premium brands.

9. EXHIBITS
9.1. Questionnaires and forms
SUMMER PROJECT-CEMENT SURVEY

Questionnaire Serial No

Name of the Respondent: ___________________________________________________________

Address: _______________________________________________________________

_______________________________________________________________

_______________________________________________________________

1a Could you tell me up to what level you have

studied? EDUCATION:

___________________________________________________

1b Could you also tell me what is your occupation?

OCCUPATION: ___________________________________________________

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 2. Could you please tell me your age in completed years?
Age: _____________ Years

3. Could you please tell us when the construction of your house started?

__________________________________________________________________________
4a. Have you purchased cement in the last 6 months for this present construction?

SINGLE CODING
Yes 1
No 2

4b Could you tell me at what stage of construction you are presently in?

Digging for foundation not started 1

Foundation laid 2
Pillars and beams in place 3
Walling completed 4
Roofing completed 5
Finishing work going on 6
Pillars and beams in place 7
Walling completed 8
Roofing completed 9
Finishing work going on 10
Housewarming over 11

AWARENESS & USAGE

5a. When you think of cement used for constructing houses, which brand or company
name comes to your mind first? Which others can you think of?

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 OTHER MENTIONS

5b. Listed here are various brands of cements used for constructing houses. Which of these
brands have you heard of? Any others? MULTIPLE CODING POSSIBLE. NOTE: BRANDS

CODED IN 5a, ALSO TO BE CODED HERE.

Brands

Ambuja 1

Acc Cements 2

Jk Lakshmi Cements 3
Shree Cement 4

Bajaj Cements 5

Bunger Cements 6

Ultratech 7

NEEDS & PERCEPTIONS

6.Listed here are aspects that various people look for while buying cement. I would like
to know your opinion on these aspects.

Not important Very Important

a. Reasonable Price of Cement 1 2 3 4 5 6 7

b. Strength of cement 1 2 3 4 5 6 7

c. Quick setting 1 2 3 4 5 6 7

d. Durability of cement 1 2 3 4 5 6 7

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e. Colour of Cement 1 2 3 4 5 6 7

f. Trusted Brand Name 1 2 3 4 5 6 7

g. Unadulterated 1 2 3 4 5 6 7

h. Direct Delivery from factory 1 2 3 4 5 6 7

i. Ideal Customer Service 1 2 3 4 5 6 7

j. Reduction in Cracks 1 2 3 4 5 6 7

k. Fineness of Cement 1 2 3 4 5 6 7

l. Available shops 1 2 3 4 5 6 7

m. Recommended 1 2 3 4 5 6 7

n. Suggested 1 2 3 4 5 6 7

o. Used widely 1 2 3 4 5 6 7

p. Extensive Media coverage 1 2 3 4 5 6 7

DECISION MAKING & PURCHASE BEHAVIOR

7a. You are aware of Various Cement, but did consider this brand for purchase? What
are the reasons for considering this brand?
It is not a good quality cement 1
The retailer does not give any discount 2
It is not easily available 3
It is priced higher than other brands of cement 4
It was not recommended by friends/ relatives 5
My mason/ building contractor/ engineer did not recommend the brand 6
Have used it before and was not satisfied with it 7
The shopkeeper recommended a different brand when I asked for this brand
Others (Specify)__________________________________________________________ 8

8a. From which types of store have you bought cement most often, for the
present construction?

Hardware store 1
A store selling only cement 2

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 A store selling cement & brick/sand/coir/bamboo/blue metal 3

8b. Did your mason/ building contractor recommend any brand for this
present construction?

Yes 1
No 2

9. Please tell me your family’s monthly household income, i.e. the income of all
earning members in your family put together after excluding taxes. This is required
purely for research purpose and confidentiality will be maintained.

Less than Rs 5000 1

Rs. 5001- 6000 2
Rs. 6001-10000 3
Rs. 10001-15000 4
Rs. 15001-20000 5
Rs. 20001-30000 6
Rs. 30001-50000 7
Rs. 50001- 75000 8
75000+ 9

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BIBLIOGRAPHY

1.Cement Manufacturer’s Association

2.Marketing Research, An Applied Orientation by Naresh Malhotra

3.www.faculty.chass.ncsu.edu/garson/PA765/factor.htm

4.http://www.nursing.ucdenver.edu/pdf/FactorAnalysisHowTo.pdf

5. www.Ambujacement.com/

6. www.lafarge.com

7. www.cement.org/tech/cct_cement_types.asp

8.www. siadipp.nic.in/publicat/cement.htm

9. www.cement.org/market/mkt_apparent_use.asp

10. www.business-standard.com/india/news/acc...cement.../391041/

11. economictimes.indiatimes.com/.../Cement-prices-set-to.../5620800.cms

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