Retailers Survey on New Product Launch from BIRLA SHAKTI CEMENT

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A Project report on
“Retailer’s Survey on New Product launch from Birla Shakti Cement”
SUBMITTED IN PARTIAL FULLFILMENT FOR THE DEGREE
OF
POST GRADUATE DIPLOMA IN MANAGEMENT
UNDER GUIDANCE OF
Prof. Jitender Govindani
(Director Academics)
BY
MACHIDI KALYAN
(15/110)
(2015-2017)
INSTITUTE OF COMPUTERS AND BUSINESS MANAGEMENT –
SCHOOL OF BUSINESS EXCELLENCE
HYDERABAD-500008

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CERTIFICATION
This is to certify that the project report title RETAILER’S SURVEY ON NEW PRODUCT
FROM BIRLA SHAKTI CEMENT submitted in partial fulfillment for the award of the
PGDM Program of ICBM- SCHOOL OF BUSINESS EXCELLENCE, Hyderabad was
carried out by MACHIDI KALYAN under my guidance. This has not been submitted to any
other university or Institution for the award of any degree/diploma certificate.
Date: 15-06-2015 JITENDER GOVINDANI
Place: Hyderabad Dept. of Marketing,
ICBM – SBE.

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DECLARATION
I MACHIDI KALYAN, student of ICBM-School of Business Excellence, Hyderabad,
hereby declare that this project report entitled “RETAILRE’S SURVEY ON NEW
PRODUCT FROM BIRLA SHAKTI CEMENT” is a bonafide record of work done by me
during the course of summer internship project work of PGDM program and all contents and
facts are prepared and presented by me without any bias.
I also declare that it has not been previously submitted for the award of any degree/diploma,
associate ship, fellowship or other similar title, of any University, Institute or Society.
Date:
Place: Hyderabad MACHIDI KALYAN

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ACKNOWLEDGEMENT
A project report is never successfully completed without the guidance and mentorship of a
few people. So, I take this opportunity to express my sincere gratitude towards all those, who
have helped me in this endeavor.
I take the opportunity to express my sincere gratitude to Chairperson Dr.Ritu zarar and
Prof. Shamshuddin Zarar, Principal of ICBM-SBE for their perseverance and attention
extended to over the course of the PGDM program. I express my humble and deep in
debtness to Prof. Jitender Govindani, Director (Academics) ICBM-SBE whose guidance
and encouragement proved to be a source of inspiration to do my best in this project.
I am extremely grateful to Mr. Baswaraj, Marketing Manager, BIRLA SHAKTI
CEMENT for providing an opportunity to gain valuable practical experience in the
company, by undertaking the current study.
Special thanks goes to my mentor Jitender Govindani, Dept. of Marketing, ICBM-SBE for
providing me much needed information and giving me direction which paved the way for the
completion of the project.
I am also thankful to the entire faculty and staff of ICBM-SBE, Hyderabad for directly or
indirectly supporting my research work.
Last, but not the least, my heartfelt appreciation to my parents who have instilled in me a
strong work ethic and the drive to excel in all my goals and endeavors.
MACHIDI KALYAN

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ABSTRACT
The research titled “Retailer’s Survey on New Product Launch from Birla Shakti
Cement” has been prepared after gaining practical exposure in BIRLA SHAKTI CEMENT
during these days of internship my work to do pre-launching strategy for the company’s
product Birla Fix-Mix through shop senses and mapping of HYDERABAD city.
The method used is survey approach which gives room for primary data-questionnaire while
the sampling technique adopted is convenience sampling techniques in which all members of
the population has equal probability and independent chance of being selected.
Pre-launching survey helps the company to understand current and future market landscapes
as they plan for new product launches. The study undertaken and data collected is useful for
the future planning in terms of strategy formulation for new product launch of the company.
To understand the retailer’s perception and expectations from the company on new product
Birla Fix-Mix. To involve the retailer’s in the product development by considering their
suggestions on packaging and pricing etc.
From the result of this survey, we can conclude that Birla Fix-Mix is going to succeed in the
market, if the company is able to consider the suggestions from the retailers such as reduction
of the price, size of pack into small packs like 500gm and 1kg according to the customer
requirement. As it is a new product need to promote aggressively through all the media into
the market, then only the customer will able to recognise the product.

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INDEX
Title Page No.
Chapter 1
 Introduction
 Objectives
 Scope
 Research methodology
 Limitations
9-13
Chapter 2
 Literature review
15-21
Chapter 3
 Industry profile
 Company profile
23-36
Chapter 4
 Data analysis and data interpretation
38-52
Chapter 5
 Findings
 Suggestions
 Conclusion
 Bibliography
 Conclusion
54-58

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INRODUCTION:
Today’s marketing is highly customer oriented, it is important to satisfy the needs and wants
of customers better than the competitors owing to cut throat competition, technological
changes and advancement, changing customer, tastes and preferences, shrinking product life
cycle and squeezing profit margin. Hence company does not want to lose their market base.
To enhance their market share and widen their customer base, it’s essential to understand the
consumer psychology. By understanding consumer behaviour, the marketing strategies,
which adapt changes according to market dynamics, can be formulated. To verify and check
the effectiveness of marketing strategy, marketer should understand the consumer profile and
their preferences well in advance.
A Company which wants to enter in the market without knowing the current market situation,
is a very risky job because launching a new product in the unknown market is costlier, the
company cannot predict what will be the result of it. There is always a threat of loss in such
decision, if the company is having a complete plan & knowledge of the market, then defiantly
it will be good opportunity & profit oriented segment for the company.
That’s why the research titled “Retailer’s survey on new product launch from Birla
Shakti Cement” fully concentrates on the retailer’s perception towards the new product Birla
Fix-Mix and their suggetions, expectations from the company.
The retailer is a middleman who owns the title of products and resale them to the final
consumers. The retailer is one of the main links between company and consumers and vice
versa. The retailer is the person who communicates with customers about company’s new
products, promotional schemes and whatever the company is going to try in near future.
The retailer also conveys ideas, suggestions and complaints of consumers to the company.
From this very fact we can conclude that how important is a retailer or middleman, both to
the company as well as to consumers. Retailers affect the sales of a company up to a large
extent. Although the ultimate demand is affected by consumers, but, word of mouth of a
retailer about company’s product also matters a lot in affecting the consumer purchase
process.

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The retailer is the main point where a company can follow push and pull strategy in
marketing. Reasonable sales incentives, fair treatment, proper discounts and other required
allowances to the retailers proves to be a tool to boost sales and motivate retailers which
ultimately enhance the building of brand image.
Retailer Perception
A Retailer percept the products from many points. The companies which offer maximum
profits to Retailer, provide better Sales Promotion Schemes, treat fairly etc. are winners.
A Retailer also precepts the products are the same way as consumer does, but with a slight
difference in the use of products. A consumer percept the product from the point of view for
final consumption, but the retailer does percept the product with a view to maximize his
profits. The perceptual process of retailers also consists of the components like retailer
imagery, perceived product quality, perceived service quality, retailer’s attitude and all what
a consumer perception consists.
Perception can be described as “how we see the world around us.” Two individuals may be
subject to the same stimuli under apparently the same conditions, by how they recognize
them, select them, organize them, and interpret them is a highly individual process based on
each person’s own needs, values, and expectations.
Perception is defined as the process by which an individual selects, organizes, and interprets
stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input to
any of the senses. Examples of stimuli (i.e., sensory input) include products, package, brand
names, advertisements, and commercials. Sensory receptors are the human organs (the eyes,
ears, nose, mouth, and skin) that receive sensory inputs. Their sensory functions are to see,
hear, smell, taste and feel. All of these functions are called into play–either singly or in
combination– in the evaluation and use of most consumer products. The study of perception
is largely the study of what we subconsciously add to or subtract from raw sensory inputs to
produce our own private picture of the world.

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OBJECTIVES OF THE STUDY:
 To find out the scope & potential for launching of new product Birla Fix-Mix.
 To analyse the level of awareness among the retailers about the new product Birla.
Fix- Mix from Birla Shakti Cement.
 To understand the attitude of retailers towards Birla Fix-Mix.
 To find out the expectations of dealers and retailers from the company.
SCOPE OF THE STUDY:
 The study undertaken and data collected is usefull for the future planning in terms of
strategy formulation for new product launch of the company
 The study is further important to the organization in tuning the company strategies as
per market expectations.
 The study is helpful to the organization for understanding current market situations,
i.e strategies and policies adopted by competitor.
RESEARCHMETHODOLOGY
Research methodology describes how the research study was undertaken. This includes the
specifications of a source of data, research design, and method of data collection, the
sampling method and the tools used.
SAMPLE DESIGN:
Geographical area:
The study was conducted in West Hyderabad.
Duration of project:
The duration of project work was about 45 days
Population:
Population for this research is set of Retailers who are dealing with Hardware, Painting,
Plywood, Sanitary & Tiles in West Hyderabad.

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Sample units:
The sampling units used for this research, are those who are dealing with hardware and
painting, sanitary etc.
Sample size:
A total of 50 Retailers were interviewed for this study.
Sampling procedure / Sampling method:
The sampling method used for this study is Convenience sampling, which is selected
according to the ease and convenience.
SOURCE OF DATA
Primary and secondary method of data collection was used to carry out the research work.
Primary data:
The data collected in both ways during the study through structured questionnaire and face-
to-face interview with retailers.
Secondary data:
Here the secondary data is collected from the Company profile, Industry profile and official
web sites, news reports and other sources.
RESEARCH INSTRUMENT:
A research instrument used for data collecting is a Questionnaire and Interview schedule.
Questionnaire
The questionnaire is prepared in a well-structured and non-disguised form so that it is easily
understandable and answerable by everyone. The type of questions include in the
questionnaire are open-ended questions, multiple choice questions and dichotomous
questions.

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Interview Schedule
The interview method of collecting data involves presentation of oral-verbal stimuli and reply
in terms of oral-verbal responses. Then the responses are filled up in the questionnaire, for
further analysis.
FRAME WORK OF ANALYSIS:
STASTICAL TOOLS USED FOR ANALYSIS:
The data analysis is done through various statistical tools. The statistical analysis is useful for
drawing inference from the collected information.
 Simple percentage analysis
 Bar diagrams
 Pie charts
LIMITATIONS OF THE STUDY:
 Since the survey was done only in Hyderabad city the result obtained may not be
taken as universal suggestion.
 Quality of the information highly dependent on the knowledge of the respondents.
 The attitude, perception of the retailers and the market situations in Hyderabad differs
from other market so same approach may not be beneficial.

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REVIEW OF LITRATURE
Retailing includes all the activities involved in selling goods or services directly to final
consumers for personal, non-business use. A retailer or retail store is any business enterprise
whose sales volume comes primarily from retailing.
-Philip Kotler
Retail is the sale of goods to end user, not for resale, but for use and consumption by the
purchaser. Retail involves the sale of merchandise from a single point of purchase, directly to
a customer who intends to use that product. The single point of purchase could be a brick-
and-mortar retail store, an Internet shopping website, a catalogue, or even a mobile phone.
The retail transaction is at the end of the. Manufacturers sell large quantities of products to
retailers, and retailers attempt to sell those same quantities of products to consumers.
-By Barbara Farfan
Retail marketing is the range of activities undertaken by a retailer to promote awareness and
sales of the company’s products. This is different from other types of marketing because of
the components of the retail trade, such as selling finished goods in small quantities to the
consumer or end user, usually from a fixed location. Retail marketing makes use of the
common principles of the marketing mix, such as product, price, place and promotion. A
study of retail marketing at university level includes effective merchandising strategies,
shopping and consumer behaviour, branding and advertising. Retail marketing is especially
important to small retailers trying to compete against large chain stores.
- Tracey Sandilands, Demand Media.
In the research titled “Retailing in India – A historical Perspective” Dr. Mandeep Singh
mentioned that retailing is the largest private industry in India and second largest employer
after agriculture. The sector contributes to around 10 per cent of GDP and 6-7 per cent of
employment. With over 15 million retail outlets, India has the highest retail outlet density in

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the world. The retailing sector in India has undergone significant transformation in the past
10 years. Traditionally, Indian retail sector has been characterized by the presence of a large
number of small-unorganized retailers. However, in the past decade, there has been the
development of organized retailing, which has encouraged large private sector players to
invest in this sector.
The research concludes by stating that the retail landscape of the country is changing at a
rapid pace with malls and multiplexes mushrooming in all major cities. In fact, having
reached a substantial capacity at Tier-1 locations, the organized retail revolution is now
percolating to Tier II and III cities. Retail has clearly been witnessing a transformation from
the neighbourhood-shopping to the concept of malls and family entertainment centres.
Entertainment and experience are becoming integral parts of shopping.
In the research titled “How tobacco companies ensure prime placement of their
advertising and products in stores: interviews with retailers about tobacco company
incentive programs” E C Feighery, K M Ribisl, P I Clark, H H Haladjian describing the
experiences of tobacco retailers with tobacco company incentive programs, how these
programs impact their store environments, and possible visual indicators of retailer
participation in incentive programs. The interviews with retailers provided insights into how
tobacco companies convey promotional allowances and special offers to retailers and how
these incentives shape the retail environment.
The method of data collection is primary method and the sample size is 29 tobacco retailers.
The main outcomes are the types and requirements of retailer incentive programs provided by
tobacco companies, and how participation in a program alters their stores.
In the interview retailers provided insights into how tobacco companies convey promotional
allowances and special offers to them and how these incentives shape the retail environment.
Retailers noted that tobacco companies exert substantial control over their stores by requiring
placement of products in the most visible locations, and of the specific amounts and types of
advertising in prime locations in the store. Retailers also described how tobacco companies
reduce prices by offering them volume based discounts, “buy two, get one free” specials, and
“buying down” the price of existing product.
The research concludes that tobacco companies are concentrating their marketing dollars at
the point-of-sale to the extent that the store is their primary communication channel with

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customers. As a result, all shoppers regardless of age or smoking status are exposed to pro-
smoking messages. Given the financial resources spent by tobacco companies in stores.
Varsha Bansal in his research titled “RETAIL BUSINESS IN INDIA-PROBLEMS AND
PROSPECTS” stated that retailers are referred as middlemen or intermediaries. It is taken as
a direct interface with the customer. It is not limited to that. Now, it has somewhat wider
meaning and comprised of buying and selling of goods and services and the timely delivery
of goods and services required by consumers at competitive and affordable prices. The Indian
retail sector is categorized into two segments are Organized retail sector and Unorganized
retail sector.
The objective is to study how the organized retail sector will affect the future of the
unorganized retail sector and the traditional retail sector. Unorganized retailers are traditional
retail shops/stores popularly known as Kirana. It is dominated by a large number of owner
managed local Kirana shops, general stores, chemists, footwear, shops, apparel shops, pan &
body shops, pavement vendors etc. Organized retailers are shopping malls, KFC, reliance
store, Walmart etc..
The research concludes that because of this big players and their competitive strength and
offer of attractive products may throw out the small traders from the market as they may not
be able to compete with them. Despite the protests by small retailers, big players like
Reliance Fresh, Vishal mega mart, Walmart, etc. are here and some other international big
players like Carrefour, Tesco, etc. are in queue and waiting for favourable signals from the
government and the general public. It will be in the interest of the industry, the general public
and all.
In the research titled “Consumers Attitude on Television Advertisement” T. Vijaya
Chithra, Dr. S. Kothai mentioned that Advertising is a worldwide business activity today and
its importance increases as more corporations go international. Vast expenditures are spent
each year by corporations on advertising to achieve their corporate objectives.
“Attention, Memory, Attitude and Conation: a test of the advertising hierarchy” analysed that
there is a clear relationship between memory, attitudes and conation. In spite of the age of the
viewers, the memory of an advertisement depends on the viewer’s attitude and behaviour.
Abhilasha Mehta (2000), in his research topic “Advertising attitudes and advertising
effectiveness” had analysed that buying interest of the consumers are based on how much the

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consumers are liking to look an advertisement, the value of the advertisement for the brands
advertised and how informative or truthful an advertisement is.
The study analysed the various factors relating to the consumer attitude towards television
advertisement and the research concludes that the consumers had a greater belief that
television advertisement inform their viewers about the brands they need, updates with the
products available in the market and keeps them in knowing about the changing fashions.
Though there is some leading negative attitude among the viewers like TV ads if excessive,
confuse them, repetition of the ads frequently, irritate the viewers into watching those TV
commercials and which in turn may have a negative impact about those products. It has also
been found that consumers consider television advertising as a medium that helps them in
their effective purchase decisions
Sushilkumar in his research titled “A Study of Brand Loyalty for Cosmetic Products
among Youth” explained that branding means naming a new born baby. It simplifies
customers purchase decisions and makes them confident about their purchases. The brand is
building a brand loyalty for a product which requires careful planning, distinct skills and
investment. Objectives of Study are the brand loyalty and consumer behaviour among youth
for cosmetic products and customer's perception towards factors responsible for building
brand loyalty, the portion of male and female in the cosmetic market.
Research concludes that it is a dream of any marketer to create a strong connection with
consumers and to have a long term relationship. This dream can only come true if his efforts
are completely diverted towards those factors which are responsible for building a brand
loyalty. This research has reported that excellent quality factor plays a key role over other
factors viz. Brand name, price, celebrity marketing, brand loyalty programme. Besides this,
cosmetic manufacturers are required to understand thoroughly the buying behaviour before
implementing any marketing strategy.
In the research paper titled “Factors Affecting Consumer Behaviour” author mentioned
that Consumer behaviour refers to the selection, purchase and consumption of goods and
services for the satisfaction of their wants. There are different processes involved in the
consumer behaviour. Initially the consumer tries to find what commodities he could like to
consume, then he selects only those commodities that promise greater utility. After selecting
the commodities, the consumer makes an estimate of the available money which he can
spend. Lastly, the consumer analyses the prevailing prices of commodities and takes the

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decision about the commodities he should consume. Meanwhile, there are various other
factors influencing the purchases of consumer, such as social, cultural, personal and
psychological.
Research concludes that the study of Consumer Behaviour is quite complex, because many
variables involved and their tendency to interact with & influence each other. The factors
which are have control over the mind of a customer. Culture, and subculture, Social Class,
and Social Group, Family, and Interpersonal Influences, Other Influences (which are not
categorised by any of the above six, like geographical, political, economical, religious
environment, etc.)
In the research paper titled “Customer Experience Management in Retailing” Kamaladevi
B stressed that Survival of fittest & fastest is the mantra of today’s business game. To
compete successfully in the retail business era, the retailer must focus on the customer’s
buying experience. To manage a customer’s experience, retailers should understand what
“customer experience” actually means. Customer Experience Management is a strategy that
focuses the operations and processes of a business around the needs of the individual
customer. It represents a strategy that results in a win–win value exchange between the
retailer and its customers.
The goal of customer experience management is to move customers from satisfied to loyal
and then from loyal to advocate. This research focuses on the role of macro factors in the
retail environment and how they can shape customer experiences and behaviours. Several
ways (e.g., Brand, Price, Promotion, Supply Chain Management, Location, Advertising,
Packaging & labelling, Service Mix, and Atmosphere) to deliver a superior customer
experience are identified which should result in higher customer satisfaction, more frequent
shopping visits, larger wallet shares, and higher profit
The research provides 10 best ways to make the successful “customer experience
management” are,
1. Successful deployment requires the active and continuing involvement of leadership
2. Ensuring cross-functional ownership is vital
3. Focusing on the most strategically important customers
4. Finding out what these customers truly value
5. Being clear about what we stand for

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6. Delivering the promise at every touch point
7. Providing branded training to ensure that employees understand the brand story
8. Designing CEM before installing CRM systems
9. Measuring the customer experience
10.Aligning the organization with the customer experience
The research concludes by saying that keeping customers in the next few years will be even
more important than making a sale. Shoppers are getting used to those 50–75 percent off sale
signs, and that is bad news for merchants who worry they will also have to quickly slash
prices on merchandise to attract customers. Retailers will have to engage their customers
every day to create the long-term loyal advocates necessary to compete in these challenging
times. The most important thing is to be able to identify ways to hold on to profitable
customers.
In the research titled “Consumer Attitude Towards Cosmetic Products” Mrs. J. Vidhya
Jawahar mentioned that The worldwide annual expenditures for cosmetics is estimated at
U.S. $18 billion, and many players in the field are competing aggressively to capture more
and more market. Hence, companies are interested to know about the consumer’s attitude
towards cosmetics so as to devise strategies to win over competition. The main objective of
the research is to investigate the influence of attitude on cosmetics buying behaviour.
Attitudes are formed through experience and learning and that attitudes influence buying
behaviour. Consumer attitudes toward a firm and its products greatly influence the success or
failure of the firm. Cosmetics buying behaviour literature in developing countries in general
is inadequate and ambiguous. As it is known from the Theory of Reasoned Action and
Theory of Planned Behaviour, attitudes have considerable impact on behaviour. When
examining the influence of attitude on the behavioural intention; the results indicate that
attitude positively affects behavioural intention. There is a direct causal relationship between
attitudes and behaviour.
Research concludes by suggesting that Now, Consumers have lots of interest regarding the
cosmetic products and also they have an awareness about cosmetic product attributes. Here,
the cosmetic companies need to understand the consumer attitude on cosmetics buying
behaviour which brings success of the company.

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In the research titled “Consumer Attitude towards Online Shopping in Selected Regions
of Gujarat” Prof. Ashish Bhatt analysed that the growing use of Internet in India provides a
developing prospect for online shopping. If E-marketers know the factors affecting online
Indian behaviour, and the relationships between these factors and the type of online buyers,
then they can further develop their marketing strategies to convert potential customers into
active ones, while retaining existing online customers. Consumer behaviour is said to be an
applied discipline as some decisions are significantly affected by their behaviour or expected
actions.
Online shopping can be a smart consumer's best friend with the ability to easily comparison
shop, search for discounts and make purchases with a few mouse clicks. You could always
visit shopping comparison sites, such as MySimon.com, or search for coupon codes at one of
many code-aggregators. But now a slew of Web browser add-ons makes smart online
shopping easier.
The research concludes that consumer online purchasing level of satisfaction and their loyalty
toward it. Consumers of Gujarat state are more prone to traditional buying since long back.
But after the internet technology, they become more prone toward technologies to buy their
consumables. The research said that consumers are remaining satisfied with online buying
but loyalty enhancement might be developing gradually with internet based buying.

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INDUSTRY PROFILE
Introduction:
India is the second largest producer of cement in the world. No wonder, India's cement
industry is a vital part of its economy, providing employment to more than a million people,
directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has
attracted huge investments, both from Indian as well as foreign investors.
India has a lot of potential for development in the infrastructure and construction sector and
the cement sector is expected to largely benefit from it. Some of the recent major government
initiatives such as development of 98 smart cities are expected to provide a major boost to the
sector.
Expecting such developments in the country and aided by suitable government foreign
policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have
invested in the country in the recent past. A significant factor which aids the growth of this
sector is the ready availability of the raw materials for making cement, such as limestone and
coal.
Market Size:
Cement demand in India is expected to increase due to government’s push for large
infrastructure projects, leading to 45 million tonnes of cement needed in the next three to four
years1.
India's cement demand is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by
2025. The housing sector is the biggest demand driver of cement, accounting for about 67 per
cent of the total consumption in India. The other major consumers of cement include
infrastructure at 13 per cent, commercial construction at 11 per cent and industrial
construction at nine per cent.
To meet the rise in demand, cement companies are expected to add 56 million tonnes (MT)
capacity over the next three years. The cement capacity in India may register a growth of
eight per cent by next year end to 395 MT from the current level of 366 MT. It may increase
further to 421 MT by the end of 2017. The country's per capita consumption stands at around
190 kg.
The Indian cement industry is dominated by a few companies. The top 20 cement companies
account for almost 70 per cent of the total cement production of the country. A total of 188
large cement plants together account for 97 per cent of the total installed capacity in the

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country, with 365 small plants account for the rest. Of these large cement plants, 77 are
located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Technological change:
Continuous technological upgrading and assimilation of latest technology has been going on
in the cement industry. Presently, 93 per cent of the total capacity in the industry is based on
modern and environment-friendly dry process technology and only 7 per cent of the capacity
is based on old wet and semi-dry process technology. There is tremendous scope for waste
heat recovery in cement plants and thereby reduction in emission level.
Investments:
On the back of growing demand, due to increased construction and infrastructural activities,
the cement sector in India has seen many investments and developments in recent times.
According to data released by the Department of Industrial Policy and Promotion (DIPP),
cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 3.101
billion between April 2000 and December2015.
Some of the major investments in Indian cement industry are as follows:
 India's largest cement maker UltraTech Cement is looking forward to acquire
Jaiprakash Associates six cement factories for a total value of Rs 16,500 crore (US$
2.42 billion)
 Birla Corporation Ltd, a part of the MP Birla Group, has agreed to acquire two
cement assets of Lafarge India for an enterprise value of Rs 5,000 crore (US$ 733.6
million).
 Dalmia Cement (Bharat) Ltd has invested around Rs 2,000 crore (US$ 293 million) in
expanding its business in North East over the past two years. The company currently
has three manufacturing plants in the region — one in Meghalaya and two in Assam.
 JSW Group plans to expand its cement production capacity to 30 MTPA from 5
MTPA by setting up grinding units closer to its steel plants.
 UltraTech Cement Ltd has charted out its next phase of Greenfield expansion after a
period of aggressive acquisitions over the last two years. UltraTech has plans to set up
two Greenfield grinding units in Bihar and West Bengal.
 UltraTech Cement Ltd bought two cement plants and related power assets of
Jaiprakash Associates Ltd in Madhya Pradesh for Rs 5,400 crore (US$ 792.3 million).
 JSW Cement Ltd has planned to set up a 3 MTPA clinkerisation plant at Chittapur in
Karnataka at an estimated cost of Rs 2,500 crore (US$ 366.8 million).

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 Andhra Cements Ltd has commenced the commercial production in the company's
cement plants – Durga Cement Works at Dachepalli, Guntur and Visakha Cement
Works at Visakhapatnam.
Mergers and Acquisitions (M&As):
The cement industry in the country has seen a number of acquisitions and mergers over the
past decade as foreign players like Lafarge, Holcim, Heidelberg and others began to enter the
Indian market opting for the brownfield route. Homegrown companies, too, have been active
in this area.
Some of the major deals over the last decade:
 2005: Holci acquires stake in ACC at an enterprise value of $111 per tonne. Later
acquires stake in Ambuja Cement in 2006 at an enterprise value of $193 per tonne.
 2006: Heidelberg Cement Group enters India via a 50:50 joint venture in Indorama
Cement and acquires majority stake in Mysore Cement.
 2008: Heidelberg Cement Group acquires balance stake in Indorama Cement and
merges operations of the same with Mysore Cement forming Heidelberg Cement
India. Capacity of the company increases to 3.07 mtpa.
 November 2011: Jaypee Group purchases controlling stake in GP Goenka Group's
Andhra Cements for an estimated Rs.280 crore.
 September 2013: UltraTech bought the 4.8-million tonne Gujarat unit of Jaiprakash
Associates for an enterprise value of Rs.3,800 crore in its biggest acquisition in more
than two years.
 March 2014: Ambuja Cement first acquires 24 percent stake in Holcim India for
Rs.3,500 crore, followed by a merger of Holcim India into Ambuja Cements. This
resulted in Ambuja Cements holding 50 percent stake in ACC, which is a 50 percent
subsidiary of Holcim India.
 December 2014: Ultratech acquires two plants from Jaiprakash Associates in Bela in
Madhya Pradesh for an enterprise value of Rs.5,400 crore.
 February 2015: Dalmia Cement raised its stake holding in OCL India from 48 percent
to 74.6 percent through an inter-share transfer with a deal value of Rs.1,023 crore.

25 | P a g e
 April 2015: Competition Commission of India gives nod for Holcim-Lafarge merger
deal estimated at $40 billion that would create the world's largest cement group. It
directed Lafarge to sell its two plants in India to address anti-competition concerns.
 April 2015: Shree Cement completes acquisition of a cement-grinding unit of
Jaiprakash Associates at Panipat in Haryana for Rs.358 crore.
Government Initiatives:
In the 12th Five Year Plan, the Government of India plans to increase investment in
infrastructure to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT.
The Cement Corporation of India (CCI) was incorporated by the Government of India in
1965 to achieve self-sufficiency in cement production in the country. Currently, CCI has 10
units spread over eight states in India.
In order to help the private sector companies thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent
past are as follows:
 Budget 2016-17 has proposed a slew of measures to boost infrastructure and
investment, which will be positive for the cement sector, as increased spending on
infrastructure increases the demand for cement. 100 per cent deduction for profits to
an undertaking in housing project for flats upto 30 square metres in four metro cities
and 60 square metres in other cities approved during June 2016 to March 2019 and
completed in three years
 Incremental spend on smart city development, the government has allocated Rs 7,296
crore (can give USD figures) towards Urban Rejuvenation Mission (AMRUT and
Mission for Development of 100 Smart Cities
 Rise in allocation under Pradhan Mantri Gram Sadak Yojana (PMGSY) to Rs 19,000
crore (US$ 2.79 billion) for FY17.
 The Government of India plans to enact a law that will allow the companies which
have received mining licenses without having gone through the auction process, to
transfer these leases, in a move that is expected to make mergers and acquisitions
(M&As) easier in the steel, cement, and metals sectors.
 The Government of Tamil Nadu has launched low priced cement branded 'Amma'
Cement. The sale of the cement started in Tiruchi at Rs 190 crore (US$ 27.9) a bag
through the Tamil Nadu Civil Supplies Corporation (TNCSC). Sales commenced in

26 | P a g e
five godowns of the TNCSC and will be rolled out in stages with the low priced
cement available across the state from 470 outlets.
 The Government of Kerala has accorded sanction to Malabar Cements Ltd to set up a
bulk cement handling unit at Kochi Port at an investment of Rs 160 crore (US$ 23.5
million).
 The Andhra Pradesh State Investment Promotion Board (SIPB) has approved
proposals worth Rs 9,200 crore (US$ 1.35 billion) including three cement plants and
concessions to Hero MotoCorp project. The total capacity of these three cement plants
is likely to be about 12 MTPA and the plants are expected to generate employment for
nearly 4,000 people directly and a few thousands more indirectly.
 India has joined hands with Switzerland to reduce energy consumption and develop
newer methods in the country for more efficient cement production, which will help
India meet its rising demand for cement in the infrastructure sector.
 The Government of India has decided to adopt cement instead of bitumen for the
construction of all new road projects on the grounds that cement is more durable and
cheaper to maintain than bitumen in the long run.
Current scenario:
The cement industry comprises 130 large cement plant sand more than 300 mini cement
plants. The industry's capacity at the end of the year reached 188.97 million tons which was
166.73 million tons at the end of the year 2006-07. Cement production during April to March
2007-08 was 168.31 million tons as compared to 155.66 million tons during the same period
for the year 2006-07.Despatches were 167.67 million tons during April to March 2007- 08
whereas155.26 during the same period. During April-March 2007-08, cement export was3.65
million tons as compared to 5.89 during the same period. Cement industry in India is
currently going through a consolidation phase. Some examples of consolidation in the Indian
cement industry are: Gujarat Ambuja takinga stake of 14 per cent in ACC, and taking over
DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi
Cement and Sri Vishnu Cement and Grasim's acquisition of the cement business of L&T,
Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are
also picking up stakes in large Indian cement companies. Swiss cement major Holcim has
picked up14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL).
Holcim's acquisition has led to the emergence of two major groups in the Indian cement
industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birlagroup

27 | P a g e
through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has
acquired the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a
stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and
German cement company Heidelberg Cement has entered into an equal joint-venture
agreement with S P Lohia Group controlled Indo-Rama Cement.
Road Ahead:
The eastern states of India are likely to be the newer and virgin markets for cement
companies and could contribute to their bottom line in future. In the next 10 years, India
could become the main exporter of clinker and grey cement to the Middle East, Africa, and
other developing nations of the world. Cement plants near the ports, for instance the plants in
Gujarat and Visakhapatnam, will have an added advantage for exports and will logistically be
well armed to face stiff competition from cement plants in the interior of the country.
A large number of foreign players are also expected to enter the cement sector, owing to the
profit margins and steady demand. In future, domestic cement companies could go for global
listings either through the FCCB route or the GDR route.
With help from the government in terms of friendlier laws, lower taxation, and increased
infrastructure spending, the sector will grow and take India’s economy forward along with it.

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MAJOR PLAYERS IN INDIAN CEMENT INDUSTRY:
COMPANY PRODUCTION INSTALED CAPACITY
ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp 5,150 5,113

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COMPANY PROFILE
INTRODUCTION:
Kesoram Industries Limited is one of the pioneer companies in India. It is under the
flagship 'B K Birla Group Of Companies, a conglomerate encompassing diverse businesses in
varied industries such as textiles, cement, chemicals, rayon, tyres, ply boards, plantations,
education, horticulture, shipping, air-taxi, electricals, spun pipes, and refractories. According
to Economic Times, it’s all India ranking was 121 for the year 2010 with a net income of Rs.
5020.63 Crore and a net profit of Rs. 648.29 Crore.
The company is listed on three major stock exchanges in India (Bombay Stock Exchange
Ltd., Mumbai; Calcutta Stock Exchange Association Ltd., Kolkata; and National Stock
Exchange of India Ltd., Mumbai) and at the Societe de la Bourse de Luxembourg,
Luxembourg.
HISTORY
 1919 -Kesoram Industries Limited started its business with Kesoram Cotton Mills
Ltd.
 December, 1959 – The First Plant for manufacturing of rayon yarn was established at
Tribeni, District Hooghly, West Bengal.
 June, 1961 – The plant for manufacturing of transparent paper was also set up at
Tribeni, District Hooghly, West Bengal.
 1962 – The Second Plant for manufacturing of rayon yarn was established
December, 1964 – The Company diversified into manufacturing of cast iron spun
pipes & pipe fittings at Bansberia, District Hooghly, West Bengal.
 1969 – The Company subsequently diversified into the manufacturing of Cement
named ‘Kesoram Cement’ at Basantnagar, Dist. Karimnagar (TELANGANA).
 1986 – another cement plant, known as ‘Vasavadatta Cement’, was commissioned by
it at Sedam, Dist. Gulbarga (Karnataka).
 March 1992 – commissioned a plant at Balasore known as Birla Tyres in Orissa, for
manufacturing of 10,00,000 mtpa automotive tyres and tubes in the first phase in
collaboration with Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli

30 | P a g e
Group of Italy – a pioneer in production and development of automotive tyres in the
world.
BUSINESS SUMMARY
Currently, Kesoram Industries Limited has three major divisions:
1) BIRLA TYRES - Birla Tyres was first established in 1991, as part of Kesoram Industries
Limited. It then collaborated with tyre manufacturer Pirelli, in the production and
development of its tires.
2) KESORAM RAYON - It was established in 1959. Situated in the banks of the Ganges,
Kesoram Rayon is a viscose rayon filament yarn and cellophane paper manufacturing unit
with over 2700 employees. The factory currently has 52 spinning machines with an installed
capacity of 6500 MT per annum. It is the only company in Eastern India to manufacture
Viscose Filament Rayon Yarn and Cellophane paper.
KIL Cement Division is an award-winning cement manufacturer and is one of the nation's
largest producers to provide high quality products and reliable services to our clients and
communities throughout India. Discover our manufacturing footprint, products, innovation
methods, portfolio and our philosophies along the way.
3) BIRLA SHAKTI CEMENT
Founded in 1969, Birla Shakti is one of the global leaders in cement technology. Besides
being a leading supplier of cement and aggregates, it also offers consulting, research, trading,
engineering and other services to complement its customers’ business needs. Company
headquarters is in India and production sites in several parts of the country.
PROFILE
Under the cement division of Kesoram Industries Limited, Birla Shakti manufactures and
sells cement. The company widely recognized for its quality, strength and technology, which
has enabled them to build strong working relationships and gain the trust of their customers
and builders. As a mark of their quality management best practices, they have been certified
an ISO 9001 company.
Birla Shakti has two cement manufacturing plants located at Sedam, Karnataka (the
"Vasavadatta Cement Plant") and Basantnagar, Telangana (the "Kesoram Cement Plant").
Birla Shakti is operating cement business from 40 years, catering to the regional demands
predominantly in Karnataka, Andhra Pradesh and Maharashtra. Its plants are strategically

31 | P a g e
located near its leased limestone deposits in the states of Karnataka and Andhra Pradesh.
Presently, it combined total installed capacity of 7.25 million MT.
MISSION
To inspire and touch lives through our services and products.
VISION
We endeavour to shape tomorrow’s urban landscape and provide a better quality of living for
all mankind.
AWARDS
 1990National Award for Second Best Improvement in Energy Performance from
NCCBM & Ministry of Power.
 1991National Award for Best Improvement in Energy Performance from NCCBM &
Ministry of Power
 1991National Award for Best Improvement in Electrical Performance from NCCBM
& Ministry of Power
 1993Award for Outstanding Contribution towards Growth of Industries from
Hyderabad Karnataka Chamber of Commerce
 1994National Productivity Award from Hon’ble Prime Minister
 1994National Award for Third Best Improvement in Energy Performance from
NCCBM & Ministry of Power
 1994National Award for Best Improvement in Energy Performance from NCCBM &
Ministry of Power
 1994Best Problem Solver in Technical Support, Award from Central Institute of
Professional Management
 1994Best Case Study Presentation in Production, Award from Central Institute of
Professional Management
 1996Environmental Award from Dept. of Ecology & Environment, Govt. of
Karnataka

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PRODUCTS
Cement is a binder that’s used to produce concrete. There are various types of cement for use
in different applications. The properties of cement can also be varied through additives. Find
out more about how we make our cement.
CEMENT PRODUCTION PROCES
Birla Shakti cement is manufactured through three stages
1. MINING, STACKING AND GRINDING. In this stage limestone is excavated from
open cast mines after drilling and blasting.
2. CLINKERISATION. In this stage The raw meal is fed to a pre-heater-kiln.
3. CLINKER GRINDING AND CEMENT PACKING. In this stage Roller press with
ball mill is used to grind the clinker. 3.5 to 4% Gypsum is added to make Ordinary
Portland Cement (OPC).
To make Portland Pozzolana Cement (PPC), up to 31% of fly ash is added to the
clinker in addition to Gypsum.
TYPES OF CEMENT
These are Birla Shakti’s most popular and comprehensive range of top-quality building
materials for the various applications needed.
ORDINARY PORTLAND CEMENT [OPC] is Most commonly used cement for a wide
range of applications like dry-lean mixes, general-purpose ready-mixes, high strength pre-
cast and pre-stressed concrete. Other OPC grade types available: 43
PORTLAND POZZOLANA CEMENT [PPC] is Blended with pozzolanic materials like
power-station fly ash, burnt clays, ash from burnt plant material or siliceous earths. High
degree of cohesion and workability in concrete and mortar.
PORTLAND SLAG CEMENT [PSC] is Slag-based blended cement that imparts strength and
durability to all structures. Manufactured by blending and inter-grinding OPC clinker, and
granulated slag in suitable proportions for consistent quality.
In this year (2016) Birla Shakti is launching a new product called BIRLA FIXMIX

33 | P a g e
ABOUT BIRLA FIXMIX
Birla Fix-Mix is ready to use dry mortar, suitable for plaster and repair. It is made from a
unique combination of cement, graded sand and special additives. It provides complete repair
solution for high quality repair with added features of,
 No curing
 Quick setting
 Water repellent
 Fast/quick setting
 Brand assurance
Benefits of product:
 User friendly, just add water and mix and apply
 Saves time
 Better reliability and consistence in quality through controlled process
 Superior finish compare to job-site mortar
 Better bonding strength and compression strength
 Available in various pack size for better economic and less wastage (2/5/50kg)
Areas of application:
Any mortar based work such as
 Voids/Cracks filling of walls
 Repairing of holes and edges in the wall
 Patches on wall plaster
 Small repair on floor and roof
 After repair of sanitary ware, plumbing &electrical work
 Plastering on wall
 Other masonry work

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PORTFOLIO:
Built on Essentials:
Infrastructure, growth, discipline and integrity – Birla Shakti business is built on these very
essentials. as an ISO 9001, 14001, 18001 and 50001 company, they take care of the land and
the community through the entire cycle of cement manufacturing use from mining to
clinkerisation.
with these essentials in mind, Birla Shakti always give top priority to their clients after all,
they wouldn’t be an industry leader without their clientele.
Network of Clients:
One of the main reasons for Birla Shakti tremendous success in the Indian market has been
they reach across the nine highly industrialised states of Andhra Pradesh, Maharashtra,
Karnataka, goa, Kerala, Madhya Pradesh, Orissa, Chhattisgarh and Tamil Nadu.
Birla Shakti dealer network in the trade segment comprises 1,581 strong and loyal dealers
across the territories. Most of these dealers have been associated with company for the last 35
years. This strong bond empowers them with the confidence and ability to grow further in
this segment.
Birla Shakti clientele in the non-trade segment includes the following prestigious and
renowned businesses:
 Adarsh Developers
 Amanora Future Towers Private Limited
 Bippl-Sublime Jv
 Cyber City Builders & Developers Private Limited
 Apshcl
 Emami Constructions Private Limited
 Firm Foundation Realtors
 Godrej & Boyce Manufacturing Company Limited
 Gvr Infra Projects Limited
 Il&Fs Engineering And Construction Company Limited
 Itc Limited
 Ivrcl Limited
 J.M.Mhatre Infra Private Limited
 Kolte Patil I-Ven Townships (Pune) Private Limited

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 Lafarge Aggregates And Concrete India Private Limited
 Lanco Infratech Limited
 Lavasa Corporation Limited.
 Lloyds Steel Industries Limited
 Marvel Landmark Private Limited
 Marvel Realtor Development Limited
 Ntpc Limited, Phoenix Infocity Private Limited, Powergen Infrastructure (L.L.C),
Tata Consultancy Services Limited, Tata Housing Development Company Limited
etc.
SUSTAINABILITY:
The key to sustaining economic growth lies in Birla Shakti belief, where company value its
employees and their families, the environment they do business in, their esteemed customers,
as well as the local communities they are surrounded by. Birla convinced that social progress
should be shared and enjoyed by all that KIL cement division is connected to. Learn more
about how they making this a reality.
CORPORATESOCIALRESPONSIBILTY:
Underpinning life at company is the division vision – Birla Shakti statement of the company
culture, which both informs and describes the company behaviour. Development activities
revolve around the under-privileged community that lives in the immediate vicinity of its
cement plants.
The range of Birla Shakti activities begins with extending educational and medical facilities
and goes on to cover vocational guidance and supporting employment-oriented and income-
generation projects like agriculture, animal husbandry, cottage industries by developing local
skills, using local raw materials and helping create marketing outlets. These are the key areas
that the company endeavour to make a difference in.

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DATA INTERPRETATION
1. NATURE OF BUSINESS.
Table:
NATURE OF SHOP RESPONDENTS
HARDWARE AND PAINTS 27
HARDWARE AND SANITARY 13
SANITARY AND TILES 2
OTHERS 8
Graph:
Data Interpretation:
In this survey I mainly concentrated on hardware, paintings and building material retailers
only.
Pure cement sellers will not show the interest in this product because if they sell Birla Fix-
Mix it will show a negative impact on sales of cement Because the product consist of cement
in addition sand, polymers so the customers who come to purchase the cement show interest
in this new product rather than cement.
 In the survey most of the respondents are the hardware &painting 54%,
 Hardware and sanitary are 26%,
 Sanitary and tile are 4%,
 Others in the sense electrical stores, etc. are 16%, in the sample 50
54%
26%
4%
16%
NATURE OF BUSINESS
HARDWARE AND PAINTS
HARDWARE AND SANITARY
SANITARY AND TILES
OTHERS

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2. EXPERIENCE IN BUSINESS.
Table:
NO. OF YEARS
RESPONDENT
S
0-5 Y 16
6-10 Y 23
>10 Y 11
Graph:
 In the present scenario growth of real estate industry is high, so that no. of new
players entering into the hardware business, from the above graph we can understand
that 32% of new players entered into this business within the span of 5years.
 We can interpret from the above graph most of the respondents are experienced in the
business between 6 to 10years which says that the margin in these businesses is
profitable.
 There are less number of retailers are experienced in the business and they do well
from long back. They have great market share and good relationship with builders and
contractors.
0
5
10
15
20
25
0-5 Y
6-10 Y
>10 Y
AxisTitle
0-5 Y 6-10 Y >10 Y
COUNT 16 23 11
EXPERIENCE IN BUSINESS

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3. PERCEPTION TOWARDS BIRLA SHAKTI.
Table:
PERCEPTION TOWARDS BIRLA SHAKTI
RESPONDENT
S
EXCELLENT 9
GOOD 21
AVERAGE 17
POOR 3
Graph:
 The response for this question clearly indicates that most of the retailers have a good
opinion on the brand Birla Shakti
 The Graph shows that 21 retailers have a good opinion on the brand Birla Shakti that
is 42% of the sample and 18% of are expressed that is excellent. That means almost
60% of respondents have a positive opinion of the brand.
 34% of retailer expressed that the brand Birla Shakti is average.
 Only 6% of retailers expressed that the brand Birla Shakti is poor.
 The perceptions of the brand will effects on the position of its products in the market.
If the brand has a good name in the market, then that name carry’s its products also.
EXCELLENT GOOD AVERAGE POOR
9
21
17
3
PERCEPTION TOWARDS BIRLA SHAKTI
EXCELLENT GOOD AVERAGE POOR

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4. RELATIONSHIP WITH BIRLA SHAKTI CEMANT.
Table:
DEALING WITH BIRLA SHAKTI CEMENT RESPONDENTS
YES 6
NO 44
Graph:
 In this survey most of the respondents are not pure cement retailers, 6 of them are
dealing with Birla Shakti so they have a relationship with it.
 Only 12% of respondents have an existing relationship with Birla Shakti and
remaining 88% of respondents don’t have any relationship with Birla Shakti.
12%
88%
DEALING WITH BIRLA SHAKTI CEMENT
YES NO

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5. AWARENES OF NEW PRODUCT “BIRLA FIX MIX” FROM BIRLA SHAKTI
Table:
AWERNES OF BIRLA FIX MIX
RESPONDENT
S
YES 41
NO 9
Graph:
 Most of the respondents are aware of new product Birla Fix-Mix because
company using sales team to promote this new product aggressively around
the city.
 Creating awareness is very important, and its impact on the future of the
product on the market.
 82% of the respondents have an idea of Birla Fix Mix, remaining 18% is
knowing the product name but they don’t have the clear idea on the product
specifications and features.
82%
18%
AWARENESSOF BIRLA FIX MIX
YES
NO

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6. HEARD THIS KIND OF PRODUCT BEFORE.
Table:
HEARD ABOUT THIS KIND OF PRODUCT RESPONDENTS
YES 14
NO 36
Graph:
 As this product based on the sum of the features like crack filling, water leakage,
plastering etc. so few of the retailers thought that it is only a water leakage product
like Dr. Fixit, MYK Schombarg that is 24%.
 72% of the retailers not aware of this kind of product.
 The response to this question is sending a message to the sales team of the company
that concentrates on unique features of new products, like its setting time, bonding, no
curing, no water repellent etc. than the regular features of other products to avoid the
confusion in retailer mind.
 The company should follow the unique selling proposition (USP) method to motivate
the retailer to order this new product.
28%
72%
Are you aware of any other competitor offering similar products
YES
NO

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7. INFLUENCING FACTORS ON NEW PRODUCT PURCHASE DECISION.
Table:
INFLUENCING FACTOR FOR USING NEW PRODUCT RESPONDENTS
LOW PRICE 6
GOOD QUALITY 23
BRAND NAME 18
OTHERS 3
Graph:
 Analysis of this question reveals that the retailers consider two important
factors that are the quality of the product and brand name. After that price and
other factors influence on new product purchase decision.
 46% of the respondents are check the qulity of the product and 36% of the
respondents are they purchase a new products from brands only, so we can
understand from this response Brand can asure the quality of the product.
 12% of respondents expressed that low price is influancining factor and 6% are
state that others in the sence availability is important factor.
 The most influencing factors from high to low are
Brand Name > Good Quality > Low Price > Others means availabilty
0
5
10
15
20
25
LOW PRICE
GOOD
QUALITY
BRAND
NAME OTHERS
LOW PRICE GOOD QUALITY BRAND NAME OTHERS
COUNT 6 23 18 3
INFLUENCING FACTOR ON NEW PRODUCT PURCHASE
DECISION

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8. SATISFACTION ON PRICING OF NEW PRODUCT FROM BIRLA SHAKTI
Table:
PRICE SATISFACTION LEVELS
RESPONDENT
S
YES 19
NO 31
Graph:
 The response of the retailers indicates that the price of the new product should be as
low, so most of the retailers are expressed that the pricing of Birla Fix-Mix (2kg=80/-,
5kg=150/-) is high, those are 62% of the sample.
 Only 34% of them are satisfied with this pricing.
38%
62%
PRICE SATISFACTION LEVELS
YES
NO

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9. EXPECTED TO PAY FOR THE NEW PRODUCT BIRLA FIX-MIX FOR
DIFFERENT QUANTITYS ARE 2KG = 80/-, 5KG = 150.
A) Table for 2KG pack:
RETAILERS EXPECTED TO PAY FOR 2KG RESPONDENTS
PRICE RANGE B/W 60-65 9
Graph:
B) Table for 5kg pack:
RETAILERS EXPECTED PAY FOR 5KG RESPONDENTS
0
5
10
15
20
PRICE RANGE
B/W 60-65 PRICE RANGE
B/W 70-75
9 16
6
PRICE RANGE B/W 60-65 PRICE RANGE B/W 65-70 PRICE RANGE B/W 70-75
COUNT 9 16 6
RETAILERS EXPECTED TO PAY FOR 2KG PACK

46 | P a g e
Graph:
 From the above interpretation most of the retailers show less interest for the high price
on that are 2kgs and 5kgs, they are asked to reduce the price as it is a new product in
the market.
 Retailer’s wants to make very small size packages like 500grams and 1kg to satisfy
the customer requirements.
 Low price strategy – used to encourage trial of your product or service. As well as
repurchase on a regular basis.
0
5
10
15
PRICE RANGE
B/W 135-145
11 13
7
PRICE RANGE B/W 115-125 PRICE RANGE B/W 125-135 PRICE RANGE B/W 135-145
COUNT 11 13 7
RETAILERS EXPECTED TO PAY FOR 5KG PACK

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10. THE BEST WAY TO PROMOTE A NEW PRODUCT.
Table:
PROMOTIONAL ACTIVITIES RESPONDENTS
PRINT & BROADCASTING MEDIA 27
INDOOR DISPLAY STAND 7
BILLBOARDS 4
SHUTTEHR & WALL PAINTINGS 12
Graph:
 From the above graph almost 55% of the retailers suggested the company to do
promotion in print &broadcasting media is the best way to communicate the
new product with customers directly. So it will impact on the immediate sales
of the product.
 Next follows 24% of the retailers suggested to do promotion through shatter
painting &wall painting with a brand name is also impacting on customers
buying decision because the customers who are coming to the hardware retailer
store to buy building materials or paints they will inquire about that product.
 14% of retailer said that indoor display stand is helping to attract the customers
by placing the product in that then the customer pic the product directly from
the stand and see what the product is.
 Most of the hardware material does not do billboard promotions as it is more
costly. It shows the very less percentage is 8%.
 We can understand from the response of the retailers every new product need
aggressive promotion to push it into the market and sustain in it for long
periods.
PRINT &
BROADCASTING
MEDIA
INDOOR
DISPLAY STAND
BILLBOARDS
SHUTTEHR &
WALL
PAINTINGS
COUNT 27 7 4 12
0
5
10
15
20
25
30
PROMOTIONAL ACTIVITIES

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11. RETAILERS INTREST TOWARDS BIRLA FIX-MIX.
Table:
INTREST LEVELS RESPONDENTS
EXTREMELY INTRESTED 11
SOMEWHAT INTRESTED 26
NOT SURE 7
NOT AT ALL INTRESTED 6
Graph:
 74% of the retailers are somewhat or above interested in the Birla fix mix product
because it is the new product in the market for the Birla Shakti brand. They are It
proves that the product from well-known brand always has some expectation and trust
in the customer's mind.
 14% of the retailers are not sure and 12% of the retailers not at all intrested because
they are direct cement sellers.
 Even it is a new product in market, Birla Shakti should convince the retailers to buy
the product and sell it to the end users.
11 26 7 6
0
5
10
15
20
25
30
EXTREMELY
INTRESTED
SOMEWHAT
INTRESTED
NOT SURE NOT AT ALL
INTRESTED
INTREST LEVELS
EXTREMELY INTRESTED
SOMEWHAT INTRESTED
NOT SURE
NOT AT ALL INTRESTED

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12. REQUIREMENT OF INCENTIVE SCHEME FOR NEW PRODUCT
Table:
INCENTIVES REQUIREMENT FOR FIX MIX RESPONDENTS
YES 37
NO 13
Graph:
 In every business the people seek for incentives, this happen same towards new
product Birla Fix-Mix.
 Almost 74% respondent for an incentive system as they need profits from that
product.
 This also shows the risk level of retailers because they want to take risks to sell new
product to the market so they want some incentive.
 Incentives are key factor which influences the retailer behaviour towards new product
and it motivates the retailers sell this product in the market.
 Incentive scheme is help full to the company to compete with the competitors as well
as to maintain the good long relationship with retailers.
 26% of respondent doesn’t ask any incentive scheme because they are not sure or not
interesting in the product.
74%
26%
INCENTIVES REQUIREMENT FOR PRODUCT
YES
NO

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13. CREDIT PERIOD FROM WHOLE SELLER.
Table:
MAXIMUM CREDIT PERIOD RESPONDENTS
ONE WEEK 13
15 DAYS 26
ONE MONTH 11
Graph:
 This complete sector is based on the credit system because it is high marginal cost and
the retailer pays some amount and some as credit.
 Because of credit system company can maintain long-term relationship with the
retailers.
 50% retailers are having credit facility from existing paint and other hardware
companies are 15days.
 14% of the retailers have one month credit period that shoes the bonding between
company and the retailers. That seems that the retailers who have one month credit
facility, stocks a huge amount of quantity. They are well experienced in the business.
 34% of the retailers have only one week credit facility indicate that they are the new
entries to this hardware sector. So none of the companies will not dare to offer credit
period more than one week.
 Offering credit facility is also a technique to encourage the retailers to stock more in
the store.
ONE WEEK 15 DAYS ONE MONTH
COUNT 17 26 7
0
5
10
15
20
25
30
CREDIT PERIOD

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14. RECOMMENDATION OF BIRLA SHAKTI BRAND AND ITS PRODUCTS TO
OTHER BUSINESS CATEGORIES.
Table:
RATINGS RESPONDENTS
1 0
2 0
3 0
4 1
5 12
6 8
7 9
8 4
9 10
10 6
Graph:
 The rating shows pretty good because it indicates that the brand Birla Shakti
have a positive opinion in the retailer's mind.
 The average rating is 7.5 that mean most of the respondents have a trust on the
brand that trust leads to increase the sale of this new product Birla Fix Mix.
 By this analysis we can state that the retailers strongly recommend this product
to the end customers as well as other business categories.
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10
Series1

53 | P a g e
FINDINGS
 The competition in hardware and painting retail sector is more.
 Most of the new players are entering into the hardware sector within the span of
5years because of real estate industry developing in the city.
 Most of the respondents expressed that Birla Shakti is a good brand in the market.
 Only a few of the hardware retailers are dealing with cement also, so they are only
having relationship with Birla Shakti.
 Most of the retailers are aware of the Birla Fix - Mix because the company sales team
is promoting the product aggressively around the city.
 Most of the respondents expressed that they didn’t heard about Birla Fix-Mix kind of
product.
 Few of the retailers thought that it is only a water leakage product like Dr. Fixit, MYK
Schombarg.
 We can understand from the response, the product with good quality from branded
company will always succeed in the market.
 Incentives are key factor which influences the retailer behaviour towards new product
and it motivates the retailers sell this product in the market.
 A credit facility of the company is based on the relationship with the company and as
well as experience in their respective sector.
 Most of the retailers are ready to sell this product.
 Brand awareness is 100% for Birla Shakti.
SUGGESTIONS
 Birla Shakti should promote the new product Birla Fix-Mix through all media’s
aggressively to sustain in the market for long periods.
 Most of the retailers are asking to reduce the price of the product then only customers
show the interest to use the product at the initial stage.
 Retailer’s wants to make very small size packages like 500grams and 1kg to satisfy
the customer requirements. So the company should also reduce the from 2kg pack to
small packs.
 As it is a new product, the company need to offer incentive schemes and credit
facilities to the retailers then only the retailers could show the interest to recommend
the product to the customers.
 Birla Fix-Mix as it is a new product, so AIDA model is better to promote it.
AIDA means
 Awareness: creating brand awareness or affiliation with your product or
service.
 Interest: generating interest in the benefits of your product or service, and
sufficient interest to encourage the buyer to start to research further.
 Desire: for your product or service through an 'emotional connection',
showing your brand personality. Move the consumer from 'liking' it to
'wanting it'.

54 | P a g e
 Action: Move the buyer to interacting with your company and taking the
next step, i.e. Downloading a brochure, making the phone call, joining your
newsletter, or engaging in live chat etc.
CONCLUSION
In early days the companies used to manufacture the goods according to the market needs,
but the today business model as changed to customers’ needs. Today’s market is much more
consumer driven and the goods have to be manufactured according to the needs of the
consumer if the producers want to make profit. The consumer has become the king and his
needs bear the greatest importance. Today, companies have realized the importance of
segmenting, targeting and position the goods as the essence of success to their long lasting
existence.
As per retailers perception Birla Shakti has a good brand image in the market. As the
company is going to launch the new product in the market, we conclude from the survey
taken place in West Hyderabad. This present scenario of cut throat competition evidenced by
the advent of globalisation, the corporate world has learned very quickly that differentiating
their products from that of their competitors is of prime importance. From this strategy Birla
Shakti came with a combo pack for the construction like in the mixture of cement, sand etc..,
From the result of this survey, we can conclude that Birla Fix-Mix is going to succeed in the
market, if the company is able to consider the suggestions from the retailers such as reduction
of the price, size of pack into small packs like 500gm and 1kg according to the customer
requirement. As it is a new product need to promote aggressively through all the media into
the market, then only the customer will able to recognise the product.

55 | P a g e
BIBILOGRAPHY
http://birlashakti.com/
https://www.kesocorp.com/DOCS/home.php
http://www.ibef.org/industry/cement-india.aspx
https://scholar.google.co.in/
http://www.indianjournals.com/ijor.aspx
http://www.slideshare.net/
REFERANCE:
http://prj.co.in/setup/socialscience/paper26.pdf
http://tobaccocontrol.bmj.com/content/12/2/184.full.pdf+html
http://www.iracst.org/ijcbm/papers/vol3no62014/10vol3no6.pdf
http://raijmr.com/wp-content/uploads/2014/09/2_9-21-Shushilkumar-M.-Parmar.pdf
http://raijmr.com/wp-content/uploads/2014/09/2_9-21-Shushilkumar-M.-Parmar.pdf
http://raijmr.com/wp-content/uploads/2013/03/2_10-15-Dr.-Nilesh-B.-Gajjar.pdf
http://www.saycocorporativo.com/saycouk/bij/journal/Vol3No1/Article_3.pdf
http://s3.amazonaws.com/academia.edu.documents/33944682/1.3.pdf?AWSAccessKeyId=AKIAJ56T
QJRTWSMTNPEA&Expires=1468859674&Signature=WXuwuv%2F9Qy0rdPt3aWN6ipyYnTA%3D&resp
onse-content-
disposition=inline%3B%20filename%3DA_Research_Study_to_Measure_Consumer_Sat.pdf

56 | P a g e
Annexure
1. Nature of shop?
 Hardware & painting
 Hardware& sanitary
 Sanitary&tiles
 others
2. No. of years in business?
 0-5 years
 6-10 years
 More than 10 years
3. How you feel when you hear the brand name Birla Shakti?
 Excellent
 Good
 Average
 Poor
4. Are you dealing with Birla Shakti cement?
 Yes
 No
5. Are you aware of new product Birla fix mix from Birla Shakti?
 Yes
 No
6. Have you ever heard this kind of product before?
 Yes
 No
 If yes, specify ____________
7. Which of the following attributes enticed you to initially try new product?
 Low price
 Good quality
 Brand name
 Others____________

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8. Are you satisfied with pricing model of this product (2k-80,5k-150)?
 Yes
 No
 If YES please answer question No.10
9. How much would you expect to pay for a new product?
 2kg________
 5kg________
 50kg_______
10. In your opinion, what would be the best way to advertise the product?
 Print media & Broadcasting media
 Indoor display standee
 Billboards
 Shutter paints& wall paintings
11. How interested would you be in buying this new product?
 Extremely interested
 Somewhat interested
 Not sure
 Not at all interested
12. Do you require any Incentive Scheme for this new product?
 Yes
 No
 If yes then mention the scheme ________________
13. What is the credit facility you get in a wholesale business?
 1 Week
 15 days
 30days
14. How likely will you recommend this brand name and its products to other
business categories?
Not at all likely extremely likely
1 2 3 4 5 6 7 8 9 10

Retailers Survey on New Product Launch from BIRLA SHAKTI CEMENT

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