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Marketability of Local Vs. National Brand of Cement  9/4/2010 1
About the Organization The Satyam Group is a well diversified industrial conglomerate, Patriarch Sri Ratan Sharma, Humble beginning in the year of 1994, Operated in Assam, Meghalaya, Arunachal Pradesh and Manipur * Indian cement industry is currently ranked second in the world after China.
About the Project Stage 1-Interect with the Shopkeeper of the Cement, Stage 2-Interect with End User of Cement  Objective of Stage 1- Study the Cement market of Arunachal Pradesh. Objective of Stage2-Study the customer view towards available cement brands of Arunachal Pradesh.
Stage- 1Interaction with Shopkeeper  9/4/2010 4 * The Indian cement industry with the total installed capacity of 219 million tons (MT)
1.Available Brands- Local -Vinay, Pendant Druk, Lakhitop, Prithvi, Zambu shakti, J.k.Cement, Buland, Shaktiman, Topcem, Best. National- Ambuja, Birla gold, Zuari, Lafarge,Ultratech Coremandal king, India Cement, Star. 2. Distribution channel. 3. Dull period of the year, 4. Price of Cement- Retailer- 5.65%, Wholesaler- 8.13%. 5. Term & condition of sales of the company.6. Top brands in the market-star cement,  Birla gold, Topcem.7. Average profit margin- wholesaler (max-8/-, min-6/-) retailer(max-13/-, min-8/-).8. Irregularity of cement- transportation, payment   system,  high demand low production capacity,  manufacturing  unit out of north east, wholesaler weakness  etc. 9. Promotional strategy of the brands .
Stage-2 Interaction with End User 9/4/2010 6 *Cement  growth in India - 11.2% and 12.1% in November and December 2008
1/ Factors consider before buying- 9/4/2010 7 * The per capita consumption of Cement in India  around 150kgs
2/Most preferable brand- * World average per capita consumption  of Cement is 260kgs
3/ Customer informed about the brand of the Cement- 9/4/2010 9
4/ Interested to use a new brand of Cement- 9/4/2010 * Growth rate of Cement in Arunachal Pradesh is 13.2% 10
5/ Satisfaction with the price of the cement- 9/4/2010 11
6/Satisfaction with the regularity- 9/4/2010 12 * Indian Cement Production to Grow at 10.5% CAGR by 2013-14
7/ Quantity use per year (Only for Institutional customer) 9/4/2010 13
Findings: 1)  60% local brands, 40% national brands .2) Dissatisfied with the price of the cement.3) Distribution channel of cement is deteriorated due to regulation imposed by the India.4) Demand  low- June to august , demand high- February to March.5) Most of the customer preferred local brand. 6) Almost all brands of the cement irregular in the market. 7) Quality is the main factor consider by the end user . 8) Dealer recommendation plays a vital role to promote a brand of cement. 9/4/2010 14
8) Workers skin problem due to use of more chemical in cement ,9) There is very big scope for a new brand of Cement to capture the market. 9) After having more than thirty Local and National brand still Cement market unable to fulfill the demand of the Arunachal Pradesh. 10) Duplicate brand  and Weight  less than orginal.  11) Star, Birla Gold and Topcem are the brands prescribed  by the Government .  9/4/2010 15 * Bihar becomes India’s fastest growing market for Cement  (36% in 2009-10)
Suggestions:- 1) Monitor the market and awareness camp by the company against duplicate brand.2) Wholesale distributer for each and every district.3) To maintain regularity- own transport, Credit facility to the seller, enhance production capacity as per requirement of the market etc.4)There should be a regulatory body to maintain the price and quality of the cement.5)Invest in R & D.6) Promotion-Newspaper, Regional T.V. Channel                      -Coupon pack, Pack in premium, Self liquidator etc. 9/4/2010 16 * The cement industry was the only benefited sector due to low rainfall
9/4/2010 17 Presented By-Nandeep Singh    	MBA/09/022

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Marketability Of Local Vs National Brand of Cement

  • 1. Marketability of Local Vs. National Brand of Cement 9/4/2010 1
  • 2. About the Organization The Satyam Group is a well diversified industrial conglomerate, Patriarch Sri Ratan Sharma, Humble beginning in the year of 1994, Operated in Assam, Meghalaya, Arunachal Pradesh and Manipur * Indian cement industry is currently ranked second in the world after China.
  • 3. About the Project Stage 1-Interect with the Shopkeeper of the Cement, Stage 2-Interect with End User of Cement Objective of Stage 1- Study the Cement market of Arunachal Pradesh. Objective of Stage2-Study the customer view towards available cement brands of Arunachal Pradesh.
  • 4. Stage- 1Interaction with Shopkeeper 9/4/2010 4 * The Indian cement industry with the total installed capacity of 219 million tons (MT)
  • 5. 1.Available Brands- Local -Vinay, Pendant Druk, Lakhitop, Prithvi, Zambu shakti, J.k.Cement, Buland, Shaktiman, Topcem, Best. National- Ambuja, Birla gold, Zuari, Lafarge,Ultratech Coremandal king, India Cement, Star. 2. Distribution channel. 3. Dull period of the year, 4. Price of Cement- Retailer- 5.65%, Wholesaler- 8.13%. 5. Term & condition of sales of the company.6. Top brands in the market-star cement, Birla gold, Topcem.7. Average profit margin- wholesaler (max-8/-, min-6/-) retailer(max-13/-, min-8/-).8. Irregularity of cement- transportation, payment system, high demand low production capacity, manufacturing unit out of north east, wholesaler weakness etc. 9. Promotional strategy of the brands .
  • 6. Stage-2 Interaction with End User 9/4/2010 6 *Cement growth in India - 11.2% and 12.1% in November and December 2008
  • 7. 1/ Factors consider before buying- 9/4/2010 7 * The per capita consumption of Cement in India around 150kgs
  • 8. 2/Most preferable brand- * World average per capita consumption of Cement is 260kgs
  • 9. 3/ Customer informed about the brand of the Cement- 9/4/2010 9
  • 10. 4/ Interested to use a new brand of Cement- 9/4/2010 * Growth rate of Cement in Arunachal Pradesh is 13.2% 10
  • 11. 5/ Satisfaction with the price of the cement- 9/4/2010 11
  • 12. 6/Satisfaction with the regularity- 9/4/2010 12 * Indian Cement Production to Grow at 10.5% CAGR by 2013-14
  • 13. 7/ Quantity use per year (Only for Institutional customer) 9/4/2010 13
  • 14. Findings: 1) 60% local brands, 40% national brands .2) Dissatisfied with the price of the cement.3) Distribution channel of cement is deteriorated due to regulation imposed by the India.4) Demand low- June to august , demand high- February to March.5) Most of the customer preferred local brand. 6) Almost all brands of the cement irregular in the market. 7) Quality is the main factor consider by the end user . 8) Dealer recommendation plays a vital role to promote a brand of cement. 9/4/2010 14
  • 15. 8) Workers skin problem due to use of more chemical in cement ,9) There is very big scope for a new brand of Cement to capture the market. 9) After having more than thirty Local and National brand still Cement market unable to fulfill the demand of the Arunachal Pradesh. 10) Duplicate brand and Weight less than orginal.  11) Star, Birla Gold and Topcem are the brands prescribed by the Government .  9/4/2010 15 * Bihar becomes India’s fastest growing market for Cement (36% in 2009-10)
  • 16. Suggestions:- 1) Monitor the market and awareness camp by the company against duplicate brand.2) Wholesale distributer for each and every district.3) To maintain regularity- own transport, Credit facility to the seller, enhance production capacity as per requirement of the market etc.4)There should be a regulatory body to maintain the price and quality of the cement.5)Invest in R & D.6) Promotion-Newspaper, Regional T.V. Channel -Coupon pack, Pack in premium, Self liquidator etc. 9/4/2010 16 * The cement industry was the only benefited sector due to low rainfall
  • 17. 9/4/2010 17 Presented By-Nandeep Singh MBA/09/022