Project on AccLimited

ACC Limited

INMANTEC

A Project Report

On

“STUDY OF DISTRIBUTORS OF CEMENT AND TO ASSESS THE PREFERENCE OF DIFFERENT BRANDS OF CEMENT BY

THE DISTRIBUTORS”

INMANTEC

Submitted To Submitted ByProf. Ambrish sharma Mohit Bansal

BBA-5th Sem Roll No-10

SINDRI CEMENT WORKS 1

ACC Limited

ACKNOWLEDGEMENT

“When a person is help, guide and co-operated his or her heart is bound to pay gratitude”

I am very thankful to ACC Limited for giving me such a golden chance to undergo training in their organization.

I would like to take this opportunity to express my profound and sincere gratitude to Mr. P.P Pal, Manager – Logistics ACC Limited, Sindri unit, for his constant help support and guidance during the course my project.

I would like to thank Mr. Krishna Ranjan, Officer – Marketing Dhanbad unit to have been really co-operative with me through this study.

They guide me at every step and inspired me with the opportunities to tune my learning process and also to those who directly or indirectly helped me, support me and devoted their time during the whole tenure of my training.

Once again I would like to thank ACC Limited for their great co-operation and hospitality.

Thank you


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TABLE OF CONTENTS

Section 1 Executive summarySection 2 Company History

Section 2.1 HeritageSection 2.2 Corporate ProfileSection 2.3 corporate Governance

Section 2.4 Company VisionSection 2.5 Company MissionSection 2.6 Human ResourceSection 2.7 IT InfrastructureSection 2.8 Subsidiaries and associatesSection 2.9 Milestone

Section 3 Research and methodologySection 4 Introduction of Marketing

Section 4.1 Basic ConceptSection 4.2 MarketSection 4.3 CustomerSection 4.4 Marketers or sellerSection 4.5 marketingSection 4.6 Basic ConceptSection 4.7 Marketing ManagementSection 4.8 Marketing and SellingSection 4.9 Functions of MarketingSection 4.10 The marketing mix

Section 5 Marketing at ACC Limited

Section 5.1 Major players and their strategySection 5.2 Nature of marketing Competition Section 5.3 Nature of IndustrySection 5.4 Quality Policy

Section 6 Questionnaire of Market Survey


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Section 7 Analysis and InterpretationSection 8 SuggestionsSection 9 ConclusionSection 10 Limitations of the studySection 11 Market Rating of major PlayersSection 12 Bibliography


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1. EXECUTIVE SUMMARY

In today’s scenario, Human capital is acknowledged as one of the most potent sources in contributing directly and significantly in the growth of any organization.

This project attempts to explore the most effective “Marketing Policies and Practices” for smoothly achieving organizational objective.

It was a research conducted to get the feedback of the Dealers and customers from different aspects about the existing performance system of different units in the organization.

The main research objective was to understand the relevance of wide variety of methods and techniques that can be explored towards performance of the organizational goal. In today’s competitive world every organization is geared towards maximum return with minimum investment. Marketing plays a vital role towards planning & controlling cost effective manpower support.

Canalizing human energies in a predetermined desirable direction are not possible unless harmonious relations are maintained among team members involved in business development. The way adopted by companies to manage grievances and stress and thereby motivating the employees and reducing employee turnover were studied through the project.

2. COMPANY HISTORY


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2.1Heritage

Ours has been an interesting story – one that inspired a book. ACC was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger – the country’s first notable merger at a time when the term mergers and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a country’s nationalist pride that touched all walks of life – including trade, commerce and business.

The first success came in a move towards cooperation in the country’s young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups – Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936. Just months before his dream could be realized.

ACC stands out as the most unique and successful merger in Indian business history, in which the distinct identities of the constituent companies were melded into a new cohesive organization – one that has survived and retained its position of leadership in industry. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACC’s full name, The Associated Cement Companies Limited, itself indicates the company’s origins from a merger. Many years later, some stockbrokers in the country’s leading stock exchanges still refer to this company simply as ‘The Merger’.

A strategic alliance

The house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (GACL), who are now the largest single shareholder in ACC. This has enabled ACC to enter into a strategic alliance with GACL, a company reputed for its brand image and cost leadership in the cement industry.


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Holcim - a new partnership

A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL has filed declarations indicating their shareholding and declaring itself as a Promoter of ACC.

Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries. Considering the formidable global presence of Holcim and its excellent reputation, the Board of ACC has welcomed this new association.

2.2Corporate Profile

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 14 modern cement factories, 19 Ready mix concrete plants, 19 sales offices, and several zonal offices. It has a workforce of about 9000 persons and a countrywide distribution network of over 9,000 dealers. ACC's research and development facility has a unique track record of innovative research, product development and specialized consultancy services. Since its inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. Its commitment to environment-friendliness, its high ethical standards in business dealings and its on-going efforts in community welfare programmes have won it acclaim as a responsible corporate citizen. ACC has made significant contributions to the nation building process by way of quality products, services and sharing its expertise.

In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement and concrete and a trendsetter in many areas of cement and concrete


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technology including improvements in raw material utilisation, process improvement, energy conservation and development of high performance concretes.

ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer SuperBrands of India.

The company's various businesses are supported by a powerful, in-house research and technology backup facility - the only one of its kind in the Indian cement industry. This ensures not just consistency in product quality but also continuous improvements in products, processes, and application areas.

ACC has rich experience in mining, being the largest user of limestone, and it is also one of the principal users of coal. As the largest cement producer in India, it is one of the biggest customers of the Indian Railways, and the foremost user of the road transport network services for inward and outward movement of materials and products.

ACC has also extended its services overseas to the Middle East, Africa, and South America, where it has provided technical and managerial consultancy to a variety of consumers, and also helps in the operation and maintenance of cement plants abroad.

ACC is among the first companies in India to include commitment to environmental protection as one of its corporate objectives, long before pollution control laws came into existence. The company installed pollution control equipment and high efficiency sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far back as 1966. Every factory has state-of-the art pollution control equipment and devices.

ACC demonstrates the practices of being a good corporate citizen undertaking a wide range of activities to improve the living conditions of the under-privileged classes living near its factories.

2.3CORPORATE GOVERNANCE


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The importance of Corporate Governance has always been recognised in ACC. Much before Corporate Governance guidelines became applicable and mandatory for listed companies, ACC had systems in place for effective strategic planning and processes, risk management, human resources development and succession planning. The Audit Committee in ACC was constituted as far back as in 1986. The Shareholders-Investors Grievance Committee was formed way back in 1962 and the Compensation Committee was convened since 1993. The Company’s core values are based on integrity, respect for

the law and strict compliance thereof, emphasis on product quality and a caring spirit. Corporate Governance therefore in ACC is a way of life.

ACC is a professionally managed Company with a majority of its Directors being Independent Directors. The Board of Directors has always consisted of persons who are professionals in their respective fields and with unquestionable integrity and reputation. The role, responsibility and accountability of the Board of Directors is clearly defined. Members of the Board have full freedom to express their views on matters placed before them for deliberation and consideration.

It is the continuous endeavour of the Board of Directors to achieve the highest standards of Corporate Governance through the adoption of a strategic planning process, succession planning for attracting, motivating and energizing human resources, identification of major risks and the way and means to manage such risks, an effective communication policy and integrity of Company’s internal control systems. The Board of Directors are also constantly looking at ways and means to ensure that the most effective use is made of the scarce resources at its disposal and that the management and employees have the freedom to take the Company forward within the framework of effective accountability.

The Annual Reports, press releases and other communication have always made full disclosures on various facets of importance to the stakeholders, particularly with regard to information relating to financial matters, company’s operations/performance, stock movements etc.


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2.4 Company Vision:

Vision is defined as a mental image or foresight. Associated Cement Companies Ltd. say its vision “ACC Pvt. Ltd. enters the next few years with the confidence of a learning knowledge based and happy organization”


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2.5 MISSION

ACC Ltd. drives their mission statements from a particular set of tasks. They are called upon to perform in the light of their individual, national or global priorities.

Indian Cement industry into a Globally strong and competitive industry.

2.6 HUMAN RESOURCES

ACC has a large workforce of about 9,000 people, comprising experts in various disciplines assisted by a dedicated workforce of skilled persons. ACC employees referred to as the ACC Parivar, come from all parts of the country and belonging to a variety of ethnic, cultural and religious backgrounds. ACC employees display a strong sense of loyalty to the Company and their special stellar qualities as ‘value-adding’ human capital are well known in the industry.

ACC has clearly stated guidelines concerning recruitment, termination, career advancement, performance appraisal, professional and employee ethics and code of conduct. The Company’s personnel policies and processes enshrine equal opportunities to all and non-discrimination with regard to gender, caste, creed, ideology or other opinion, whether social, political or religious. Also ensured is a due process for employee consultation and participation in organizational development and policy formulation.

A) Recruitment

Recruitment in ACC is a very fair and transparent process with adequate opportunities to look for suitable candidates internally as well as from outside. Applicants are generally invited on the basis of specific advertisements in newspapers and websites. A Committee of officers called the Central Recruitment Committee handles the entire recruitment process comprising screening of applications, preliminary short-listing, interviews and final selection. Every attempt is made to make the selection process as objective as possible by incorporating tests of competence. In some cases, outside consultants are retained. All decisions of the recruitment committee are recorded in respect of each candidate. Candidates are informed of their short-


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listing and selection immediately after the interview or at the earliest thereafter.

B) Performance management

The Company’s performance management system is in itself a benchmark that provides ample opportunities and motivational incentives to employees so as to reward and retain good talent within the Company. These incentives include Performance Linked Incentives, Good Work Awards, Letters of Appreciation, Special Increments, Promotions, Nomination to external training programmes in India and abroad, public felicitation and appreciation. Some plants have Best Employee and Employee of the Month Awards and recognition. Competent employees and those who display aptitude are invited to become Trainers themselves and receive Train the Trainer facilitation.

C) Training and Development

Our new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. Training is imparted to take care of an individual’s career development as well as functional and skill enhancement. Competency and Development training inputs include Skill and general performance enhancement, communication skills and Career development. Functional training needs are identified and conducted by functional departments while Corporate HR organizes competency and developmental inputs.

E) Employee Welfare and Perquisites

Employee welfare receives prime attention at ACC. We have several schemes for general welfare of employees and their families. These cover education, healthcare, retirement benefits, loans and financial assistance and recreation facilities.


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ACC townships have excellent schools that are often the best in the district. Education at these schools is subsidized for employees’ wards. We offer attractive scholarship allowances for children studying at places away from their parents, merit scholarships for outstanding children and financial assistance for employees’ children to pursue higher professional education.

Liberal medical benefits are made available to employees and their family members by way of reimbursements towards normal medical treatment, domiciliary treatments and special sanctions for serious illness. Each of our townships has well-equipped health care centers with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed hospitals for specialized treatment. In addition, there are regular health checkups, camps and programmes.

Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as well as a scheme that provides for supply of cement at subsidized rates to those building their own houses.

At our cement plants and factories, employees are provided furnished and unfurnished accommodation based on their entitlements. At many locations, the employees are given free electricity, free water supply and free bus facility for nearby places and schools. These houses are well maintained and periodically upgraded.

F) Employee satisfaction

In addition to periodic internal Employee Satisfaction Surveys, we participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organizations like Hewitt Associates Grow Talent. And from time to time, ACC has also retained reputed firms like Mercer and Boston Consulting Group to study our internal work environment and employee policies and suggest areas of improvement. We share below salient points of the latest survey of employees:

People are treated fairly regardless of religion and gender ACC is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here Management thinks positively


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The overall findings show significant job satisfaction at all levels as also deep respect for the company, its performance management system and its overall business performance.

2.7 IT Infrastructure

ACC is one of the first Indian companies to realize the potential and importance of information technology and adopt automation and IT. We started computerizing our systems as early as 1968 - a commitment to progress through the harnessing of relevant available technologies, a habit that continues even today.

We have traveled a long way from the days in 1968 when we were using simple keypunching machines. Significant improvements have been made in the application systems and infrastructure. From Batch processing to on-line systems, from IBM1401 to the latest UNIX and Windows 2003 based machines we have made timely transitions determined by available technologies and business requirements.

We are currently in the process of making a quantum jump from our current in-house developed systems using Oracle 9i and Developer 6i to an ERP based solution. This decision was solely based on our strategic objectives and the business benefits that we expect to derive from implementing such a solution. With this move we will also align people, business processes and technologies across the country.

As part of the objective of providing uninterrupted service to the business, we are setting up a primary data centre and a disaster recovery centre to house all the servers related to the ERP solution. These data centers are inter-connected using high speed data links so that the data is always current at both these locations.

2.8 SUBSIDIARIES AND ASSOCIATES

Subsidiary companies of ACC include the country's first bulk cement distribution terminal in Mumbai. Our experience of several decades in manufacturing and engineering has helped us acquire skills that have proved useful in other areas. Through subsidiaries, technical collaborations and associations, ACC offers products and services in fields such as cement machinery, tyre machinery, bulkers.


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A) Bulk Cement Corporation (India) Limited (BCCI)

Situated at Kalamboli, in Navi Mumbai (formerly New Bombay), this company caters to bulk cement requirements of the city of Mumbai and its environs. It has two cement storage silos with a capacity of 5,000 tons each. The plant receives cement in bulk from ACC plants at Wadi. The plant has its own special purpose railway wagons and rakes and its own railway siding. The first of its kind in India, BCCI is equipped with all the facilities required by increasingly sophisticated construction sites in a bustling metropolis, including a laboratory, a fleet of specialized trucks and site silos for the convenience of customers and is capable of offering loose cement in bulk-tanker vehicles as well as packed cement in bags of varying sizes from 1 tonne down to 25 kg bags. BCCI is situated strategically on the outskirts of Mumbai, just off the new Mumbai-Pune Expressway. It is a landmark structure spread over 30 acres of land.

B) ACC Machinery Company Limited (AMCL)

Located in the Butibori Industrial estate near Nagpur, AMCL manufactures machinery and equipment for use in chemicals and cement industries such as bulk transporters, vertical pre-grinding roller mills and blowers and tyre and rubber manufacturing machinery such as presses, mixers and extruders.

C) Saudi Arabia - Yanbu Cement Company

Since 1979 ACC has been operating and managing a large cement plant owned by Yanbu Cement Company (YCC) and located near the port city of Yanbu in the Kingdom of Saudi Arabia. The Yanbu plant incorporates sophisticated process control systems. YCC today has a capacity of over 3.30 million tonnes per annum. Cement production at this plant has continued to exceed the guaranteed quantum stipulated in the contract year after year.

D) Nigeria - Dangote Industries

ACC has been retained by M/s Dangote Industries, a leading diversified industrial group of Nigeria, to provide comprehensive engineering consultancy for setting up their proposed new green field cement plants of capacity 3 x 7000 TPD


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(tonnes per day) and for optimisation and upgradation of their existing plants from 2x2000 TPD to 2x3500 TPD.

2.9 Milestone

1936 Incorporation of The Associated Cement Companies Limited on August 1, 1936.

1936 First Board Meeting of The Associated Cement Companies Limited held at Esplanade House, Mumbai on November 10, 1936.

1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the formation of ACC is complete on October 23, 1937.

1944 ACC’s first community development venture near Bombay

1947 India’s first entirely indigenous cement plant established at Chaibasa in Bihar

1952 Village Welfare Scheme launched

1955 Sindri cement works used the waste product calcium carbonate sludge from fertilizer factory at Sindri.

1956 Bulk Cement Depot established at Okhla, Delhi


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1957 Technical training institute established at Kymore, Madhya Pradesh.

1962 Manufacture of Accoproof, a waterproofing additive.

1965 ACC’s Central Research Station (CRS) established at Thane

1965 Manufacture of Portland Pozzolana Cement.

1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina Castables and High Alumina Refractory Cement.

1968 Advent of computers in ACC for data processing and designing management information and control systems.

1968 ACC supplied and commissioned one-million-tonne iron ore pelletising plant ordered by TISCO

1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-75

1973 Take-over of The Cement Marketing Company of India (CMI)

1977 ACC receives ASSOCHAM first national award for the year 1976 instituted for outstanding performance in promoting rural and agricultural development activities.

1978 Introduction of the energy efficient precalcinator technology for the first time in India. Full scale commercial production based on MFC technology at Wadi in 1979.


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1979 ACC wins international contract for operation and management of a new one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.

1987 ACC develops a new binder for use at sub-zero temperatures, which is successfully used in the Indian expedition to Antarctica.

1992 Incorporation of Bulk Cement Corporation of India, a joint venture with the Government of India.

1993 ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai.

1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pradesh.

1999 Commissioning of captive power plants at the Jamul and Kymore plants in Madhya Pradesh.

1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)

2000 Tata Group sells their remaining stake in ACC to the GACL group, who with 14.45% now emerge as the single largest shareholder of ACC.

2001 Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka plant, the largest in the country, and among the largest sized kilns in the world.

2002 ACC wins PHDCCI Good Corporate Citizen Award


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2003 IDCOL Cement Ltd becomes a subsidiary of ACC

3. RESEARCH AND METHODOLOGY

Research is an ORGANIZED and SYSTEMATIC way of FINDING ANSWERS to QUESTIONS.

SYSTEMATIC because there is a definite set of procedures and steps which you will follow. There are certain things in the research process which are always done in order to get the most accurate results.

ORGANIZED in that there is a structure or method in going about doing research. It is a planned procedure, not a spontaneous one. It is focused and limited to a specific scope.

FINDING ANSWERS is the end of all research. Whether it is the answer to a hypothesis or even a simple question, research is successful when we find answers. Sometimes the answer is no, but it is still an answer.


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QUESTIONS are central to research. If there is no question, then the answer is of no use. Research is focused on relevant, useful, and important questions. Without a question, research has no focus, drive, or purpose.

A. Sample Size:

Sample size is 50. Data was analyzed by surveying dealers and the competitors of ACC limited.

B. Sample Design:

This part is done through discussing and analyzing with my project guide and referring to the subject regarding this topic. It was a random sampling.

C. Mode of Analysis:

The methods used to analyze the data are as follows:

1) To study the distributors of cement and their involvement in sales of different brands of cement.

2) To find out whether the distributors of cement and to assess the preference of different brands of cement by the distributors.

3) Interpret and analysis of the data and present it in a proper manner.

4) Uses of Microsoft excel for preparation of graph.

D. Title of the Study

The title of the study is “STUDY OF DISTRIBUTORS OF CEMENT AND TO ASSESS THE PERFERANCE OF DIFFERENT BRANDS OF CEMENT BY THE DISTRIBUTOR’S”.


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E. Objective of the study

To know the market share of Cement product. To know the marketing techniques adopted by the cement factory to

increase the sale. To know the distribution method adopted by the organization. To know the per day sale of cement and its competitors. To know about the stock position of cement and its competitors at different

outlets. To know the financial position of cement factory.

G. Sources of Data

Data collection is the collection of necessary detail to gain further Information. This requires both primary and secondary data.

a.) Secondary Data:

Mr. P.P Pal, Manager – Logistics ACC Limited and Mr. Krishana Ranjan-Officer (marketing)

in ACC Limited., helped me in secondary data collection.

H. Field Work:

Fieldwork is done for the purpose of collection of data. The fieldwork Involved here are:


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Regular research together information on the relevant topic and have them compiled according to the project specification.

For getting proper guidance for the project, often discussion with the guide.

4. INTRODUCTION OF MARKETING

4.1 Basic concept:

“Marketing is a basic that, it can’t be consideration a separate function. It is the whole business seen from the point of view”.

The world economy has undergone a radical transformation in the last two decades. Geographical and cultural distance have shrunk significantly with the improvement in the production, transportation and communication. These advances have permitted companies to widen substantially both these markets and their suppliers sources. And thus the role of marketing becomes wide.

Marketing is the specialization subject of BBA Curriculum. When aflood of consumer product are coming into the market, every company needs people specialized in marketing to promote their product.

“ Marketing is to convert social needs into profitable opportunity”


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The 21st century is the era of Advertising, Marketing and sales promotion. Marketing is to convert social needs into profitable opportunities. As it is said “Marketing thinking starts with the needs and wants”.

Apart from basic necessities of air, water, shelter, and clothing, every person has some desire of recreation and entertainment. They have strong preference for parttcular brand of basic services. Marketing serves as the link between the society’s needs and its pattern of industrial response.

4.2 Market:

It is important to note that the how of the term market is not on the place, rather it is on the meeting of buyer and seller. Since, conventionally the buyers used to meet the sellers at a physical location, the term market to buyers used to meet the sellers at the physical location, the term market began to acquire used to refer to a place, however, it is not correct to do so. Buyers & sellers can conduct business without meeting at a place, by telephone, mail, and now Internet.

4.3 Customer:

Market is not possible without customers or buyers. Customers refer to the people or organization that seek satisfaction of their needs and wants.

4.4 Marketers or Seller:

If the customer is the seeker at satisfaction, the marketer is the deliverer or provider of satisfaction. In the normal usage, the provider of goods or services, called seller.

4.5 Marketing:

The important elements for a marketing exchange to take place are:

Presence of an at least two parties: Buyer and seller or customer and marketer or offeror and taker.

Both parties must have something viewed valuable by each other.


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Both parties are free to accept or reject the offer. Each party is capable to communication and delivery.

4.6 Business Concept:

Marketing efforts may be guided by different philosophies like:

A) Production Concept

Some firms believe that potential exchange would be realized when the products are in expensive and are widely available.

B) Product Concept

The product concept propose that the way to realizing business goals lies in making products that are of high quality.

C) Selling Concept

Some firms organize their efforts according to selling concept. It holds that customers if left alone would not buy or not buy enough of a firm’s products.

D) Marketing Concept

The pillars of the marketing concept are: Identification of market or customers who chosen as the target of the

marketing efforts.

Understanding needs and wants of customer in the target market.

Development of product and services for satisfying needs of the target market.

Doing all this at profit.

D) Societal marketing concept


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The marketing concept is extended to include the social goals in the need satisfaction process. That is , the firm must perform marketing in a fashion that well being is enhanced.

4.7 MARKETING MANAGEMENT

Marketing management seeks to make marketing a corporate way of life and philosophy of business organization and operation. It is done to help customers solve their diverse consumption problems in ways compatible with the objectives of the firm.

4.8 MARKETING AND SELLING

In common, parlance people often take marketing and selling to be the same. Selling and marketing differ in terms of their goals and the means to be employed in achieving them. If some one wants to find out whether a player in the market is a seller or marketer then his goal and how he tries to achieve the same need to be ascertained.

4.9 FUNCTIONS OF MARKETING

Marketing helps the firm to realize its profit goal by actualizing potential exchange with the customers. More especially the following are function involved in marketing.

1) Marketing research 2) Product planning 3) Buying and assembling4) Packaging5) Storage and warehousing6) Transportation7) Promotion and selling.

4.10 THE MARKETING MIX

The marketing mix refers to the ingredients or the tools or the variables, which the marketer mixes in order to interact with a particular market.

a) Product mix


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When a firm introduces a number of product over time gradually its offerings become many. that is the firm becomes a multi product company. The total number of product and items that a particular marketer offers to the market is called product mix.

Branding Brand Name Strategies Trade Mark Packaging Labelling

b) PRICE MIX

In a marketing exchange, price is the value, which a buyer passes on to the seller in lieu of the product or service provided. The factors that must be taken into consideration are:

Organizational Objectives Cost Competition Customer Demand Pricing Strategies

c) PLACE MIX

Place in the context of marketing mix refers to a set of decisions that need to be taken in order to make the product available to the customers for purchase and consumption. If the products are not made available to the customets at the right place, in right quantity and in right time, the customers would not be able to buy them.

Channel of Distribution Channel Levels Factors determining choice of channels

1. Market related factor2. Product relater factors3. Company related factors.

Physical distribution Decisions in physical distribution

1. Transportation2. Inventory3. Warehousing


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4. Order Processing

d) PROMATION

Once the product has been manufactured, priced rightly and is distributed, the next task of the marketers is to inform potential customers about the product and persuade them to buy the same. It concern with the activities that are undertaken to communicate with the both customers and the participants.

Media Selection

1. Newspapers2. Magazines3. Television4. Radio5. Out door Display6. Internet

Sales Promotion

1. Rebates2. Discounts3. Refunds4. Premiums5. Quantity Deals6. Sampling7. Contests8. Free in Mail Premium9. Packaged Premium10.Container Premium


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5.Marketing at Acc Limited

5.1 MAJOR PLAYERS AND THEIR STRATEGY

The key players in the country include ACCL limited, Larsen& Turbo, Grasim Industries, Gujarate Ambuja Cement and India cement Limited. The major players in the cement industry have posted encouraging numbers for Q’3 FY’06 riding on the buoyant demand for cement consumption due to resurgence of the construction activities across the country post mansoon period. Robust volume growth as well as appreciation of the cement prices in almost all parts of the country helped the industry to record a strong performance.


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Fig no. 1 Group-wise installed capacity in (Million tons) of Companies

5.2 NATURE OF MARKET COPETITION AND STRATEGIES

A cement industry was profitable one time many businessmen changed their product line to cement industry looking at the profit of the cement company. At that stage many cement companies came into existence to meet the requirement. As this was a long-term investment in the industry so many companies are facing close competition in the particular scenario. To sustain in the market many companies are reducing their price and giving value added products to keep intact with their costumers. Continuous technological upgrading and assimilation of latest technology has been going on in the cement industry. Presently 93% of the total capacity in the industry is based on modern and environment – friendly dry process technology and only 7% of the capacity is based on cold wet and semi – dry process technology to reduce down their manufacturing cost. Maintaining this lead calls for harnessing the resources and expertise of the company – from applied research and production to marketing.

ACC Limited has high efficiency state-of –art pollution control equipments and devices. Each of its manufacturing units has a separate environment section managed by a qualified environmental engineer and supporting staff. Our plants, mines and townships demonstrate the company’s successful endeavors in greening activities as aforestation, tree planting, horticulture, vegetable and cultivation apart from basic landscaping designed to enrich and beautify the environment. Cleaner mining techniques have helped safeguard and conserve mineral resources. In addition, we have taken other positive measures such as


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topsoil conservation, efficient water management system and the treatment of wastes, sewage and effluents. Some of our plants have become near self reliant in their water requirements. ACC has achieved spectacular results in the utilization of two hazardous and pollutant industrial waste – namely slag from steel plants and fly – ash from thermal power stations – to make blended cements that have conserved lime stones resources. Over the years, ACC has won several prizes and certificates of merits for environmental measures undertaken at its various plants and mines. In particular for programs involving greening, forestation, rehabilitation of mines, noise abatement and other visible measures such as tree plantation and water management.

5.3 NATURE OF THE INDUSTRY

India is the world’s second largest cement producing country after China. The industry is characterized by high degree of fragmentation that has created intense comparative pressure on price realizations. Spread across the length and breath of the country, there are 120 large plants belonging to 56 companies with an installed 135 million tons as on march 2002.

Group-wise Installed Capacity (approx.)Companies Mn tonsL&T 16.00ACC 18.00Grasim Industries 13.00Gujarat Ambuja 12.5Indian Cement 8.06J.K. Group 5.87Lafarge India Ltd. 44.49Madras Cement 4.82Century Textiles 4.70Jaypee Cement 4.20Birla Corp. Ltd. 4.11CCI Ltd. 3.85Zuari Agro 3.15U.P. State Cement 2.59Mehta Cement 2.36Kesorma industries 2.10Mysore Cement 2.10Orient Paper Ind. 2.00Andhra Cement 1.24Mangalam Cement 1.00


ACC Limited

5.4 Quality Policy

Satisfy Customer fully & continuously by supplying products as per their requirement.

Comply all relevant requirements of quality management system. Provide framework for establishing quality performance. Continual improvement in quality performance by periodic evaluation and

review of quality policy and objectives for continuing suitability. Comply with all relevant rules and regulations pertaining to product.

Given by: JC Tiwari(Vice-President)

Sindri Cement Works

6 Questionnaire of Market Survey

HELP US TO SERVE YOU BETTER

Name of the firm:

Ownership Type & Name:

Contact Details:

Mobile No:


ACC Limited

1.Type of Outlet: Cement / Non-cement

2.Dealer’s Classification:

A) ACC (Exclu)B) Non-ACC (Excl)C) ACC (MB)D) Non-ACC (MB)E) Sub Dealer (Excl)F) Sub Dealer (MB)

3. How many years you have spent in this cement business?

MICRO MARKET POTENTIAL

A) Rate the location of the Shop?

1.) POOR2.) AVERAGE3.) GOOD

B) Rate cluster Growth Rate:

1.) LOW2.) AVERAGE 3.) HIG

INFRASTRUCTURE DETAILS

Manpower Details:

A.) How many people do you have/as for?1. Collection2. Shop Management3. Laborers

B.) Other Recourses (Plz give nos.):1. Trucks2. 2Whlrs3. VAN


ACC Limited

4. THELA5. AUTO6. Other

4. Do you have a home delivery system from yours counter/ Godown or your customer picks up himself (in %)?

1. Pickup2. Delivery

5.What are the other construction products you are dealing with?

1. Bricks2. Aggregates3. Sand4. Tiles5. Paint6. Hardware7. Other

6. Please Rank the top three profit giving products you deal with:

A. ____________________B. ____________________C. ____________________

7. How much does cement contributes to your total sales (in %)? _________________________________________________

8. Customer type you are dealing with and their lifting (Tns/Month):

1. IHB2. Projects3. Sub-Project4. Others

9.You are the Authorized Dealer for:

1. ACC2. AMBUJA3. UTCL4. BIRLA PLUS5. LARAGE6. Others


ACC Limited

10. Please give a brief on present and past sales performance Brand wise:

Avg.tns/mt 2004W/S RE

2005W/S RE

2006W/S RE

2007W/S RE

ACCAMBUJALARAGEBIRLA+UTCLOthersTotal

11. How many Sub Dealers you are supplying to at this time?__________________________________________________

12.What factor is more important to you? (give 1 as most important & 5 as Least Important in the scale of 1to5)

1. Brand Pull2. Sales Force Support3. Cash Incentives4. Non-Cash Incentives5. Services6. Logistic Support7. Marketing Initiatives8. Credit Support

13. Out of 10 Customers coming to your counter demand of:

1. ACC2. AMBUJA3. LAFARGE4. UTCL5. BIRLA+6. OTHER

14. What are the problems you visualize with ACC?

AREA PRODUCT CREDIT TERMS

PRICING NON CASH

LOGISTIC SUPPORT

MKTG INITIATIVES


ACC Limited

BENEFITSRANK

COMMENTS

15.What are the competitors doing differently?( Give the ranking on a scale of 1 to 6 taking 1 to be highest focus and 6 is to be lowest )

AREAS PRODUCT CREDIT TERMS

PRICING NON CASH

BENEFITS

LOGISTIC SUPPORT

MKTG INITIATIVES

RANK

16. How can ACC improve its sales?

RANK FOCUSED AREAPRODUCTCREDIT TERMSPRICINGNON CASH INCENTIVESLOGISTIC SUPPORTMKTG. INITIATIVES

7. ANALYSIS AND INTERPRETATION

Q 1. Type of Outlet: Cement / Non-cement


ACC Limited

1.1 Graph shows outlet of Cement

Analysis and interpretation

It shows 60% of the dealers of the company are deals with cement outlet and 40% of the dealers using Non-cement outlet.

Q 2. Dealer’s Classification:

A) ACC (Exclu.)B) Non-ACC (Excl)C) ACC (MB)D) Non-ACC (MB)E) Sub Dealer (Excl)F) Sub Dealer (MB)


ACC Limited

1.2 Graph Shows Classification of dealers


This Graph Shows the Classification of Dealers, 30% Dealers are comes under category of ACC (Exclusive) these dealers deals with only ACC cement and 20% Dealers comes under the category of Non-ACC (Exclusive) they deals with other brands except Acc Cement.

20% Dealers comes under Non-ACC (MB) and 15% dealers comes under Non-ACC (MB), these dealers deals with Mixed brand of Acc Cement and they also deals with other brands.

Another classification of dealers are Sub-Dealer (Exclusive), after analyzing it is 10% and the Sub-Dealers Mixed Brand is 5%.

3. How many years you have spent in this cement business?

1.3 Graph Shows number of years spent in cement business


ACC Limited


This graph shows classification of duration of Dealers in Cement Business, 25% Businessmen doing their cement business between 0-3 years and where 33% Businessmen doing their Cement business between 4-7years.

On the other hand 22% Businessmen continuing their business under 8-10 years and 20% businessmen doing their business Above 10 years.

MICRO MARKET POTENTIAL

A) Rate the location of the Shop?

1. POOR2. AVERAGE3. GOOD

1.4 Graph Shows location of shop


ACC Limited


This Pie Chart clearly shows the location of shop in percentage that deals with cement product. In this 43% dealers shop are located in Average Location, 37% dealers shops are located in good location and 20% dealers shop are located in poor place.

B) Rate cluster Growth Rate:

1. LOW2. AVERAGE 3. HIGH

1.5 Graph Shows growth rate of cement sales


This Pie Chart clearly shows the GROWTH RATE of shop in percentage that deals with cement product. In this chart 45% dealers shop have high growth rate, 30% dealers shops have average growth rate and 25% dealers shop are located in poor place have low growth rate.


ACC Limited

INFRASTRUCTURE DETAILS

Manpower Details:

A.) How many people do you have/as for?

1. Collection2. Shop Management3. Laborers


Number of people engaged in shop is depends on the capacity of godown and market for different brands of cements, on the basis of their requirement they employee persons for collection, shop management and laborers. There is no specific number is mentioned collection, shop management and laborers.

B.) Other Recourses (Plz give nos.):

1. Trucks2. 2Whlrs3. VAN4. THELA5. AUTO6. Other

1.6 Graph shows resources of communication through transportation takes place


ACC Limited


This tally bars clearly shows other sources of Godowns in which for transportation of cement and delivery they uses 30% through Trucks, 20% through Thela and Auto, on the other hand 2Wheelers and other sources is 15% and finally Van is 10%.

4. Do you have a home delivery system from yours counter/ Godown or your customer picks up himself (in %)?

1. Pickup2. Delivery

1.7 Graph Shows Pickup & Delivery system of cement


This Outdoor Bars shows delivery system of Godowns form counter to customer, After analyzing the data of delivery and pickup from counter , recorded 60% of total sales of cement is delivered by dealers to customers destination on the other hand 40% of total sales is pickup by customers him self.


ACC Limited

5. What are the other construction products you are dealing with? 1. Bricks2. Aggregates3. Sand4. Tiles5. Paint6. Hardware7. Other

1.8 Graph shows other construction product in which dealers are dealing


This Pie Chart shows that other Construction Products in which dealers are dealing 30% Dealers are deals with hardware, 20% with Bikes with cement, 15% Dealers deals with Aggregates with cements and on the other hand 8% are deals with paints, 10% deals with Tiles and 12% dealers are dealing with other product also along with cement.


ACC Limited

6. Please Rank the top three profit giving products you deal with:

A. ____________________B. ____________________C. ____________________


Top three profit making products are as follows:

1st Cement 2nd Bricks 3rd Hardware

7. How much does cement contributes to your total sales (in %)? _________________________________________________


Cement contributes 60% in our total sales.

8.You are the Authorized Dealer for:

1 ACC2 AMBUJA3 UTCL4 BIRLA PLUS


I am authorized dealer of ACC Limited, but I am also dealing with Ambuja cement, Birla plus and some mini plant cements.


ACC Limited

9. Please give a brief on present and past sales performance Brand wise:

Avg.tns/mt 2004W/S RE

2005W/S RE

2006W/S RE

2007W/S RE

ACC 800 500 950 600 900 400 1000 600AMBUJA 400 300 800 400 700 500 800 550LARAGE 700 400 900 350 950 600 950 600BIRLA+ 500 200 750 400 800 550 875 450UTCL 450 250 800 300 850 400 850 500Others 600 300 700 500 700 300 900 700Total 3400 1950 4900 2550 4900 2750 5375 3300

1.9 Table shows present and past sales performance brand wise of individual dealers


Table shows four years performance of different brands e.g. 2004, 2005, 2006 and 2007, in which sales are classified in two different heads: Wholesale and Retail (Sales of all brands are in Avg.tns/mt). Comparison of all four years shows there is stiff competition in market after analyses of sales record of individual dealers, we find that there is competition between ACC Limited, Ambuja, Lafarge and Birla+.

In spite of all these ACC Limited maintains their sales record from 2004 to 2007, there is hues increment in sales of Acc cement in 2007, all these are possible only due to proper distribution of cement product, adaptation of flexible policies, analysis of market demand and quality of product.


ACC Limited

8. SUGGESTIONS

ACC should come out with such an advertisement, which can block the customers mind and can change the customer’s perception about the product.In the new market scenario price is considered as the main attribute of a product, which can stimulate maximum number of customers.

More improvement is required in the distribution network in the out skit and in the remote areas, because in the peak season the small dealers are taking goods twice or thrice and in between if the distributors could not supply them, the competitors will get the opportunities to supply the goods.

Salesmen should have good interaction with dealers, which result company in increases sales.

Company executives should visit the counter on weekly basis.

Executive should take the feedback from the dealers about the services of the salesman and distributors.

The entire ACC product should be displayed at one place so that the customer can be aware about the different types of cement.

The company has to take serious step for changing its packaging style as many local companies are imitating the same and confusing the customers.

Regular visit of sales force is required to solve the problem of dealers in the market at the right time.


ACC Limited

9.CONCLUSION

The conclusion of this project report is that ACC Limited company 7 its product are the profitable not only in India but also in the whole world. Its main competitor is Lafarge. In Duopoly market cement product has 65% market share. As far as ACC Sindri Cement works has got a brand name which is very popular among the consumers due to its good quality service chain. Keeping pace with changing times and an ever-growing need for specialized services, ACC has begun offering its marketing expertise and distributaries facilities to other producers in cement and related areas. However a precondition of all such agreement is quality control supervision to be carried out by an ACC expert located at the franchisee’s plant. Each of the regional Marketing offices has a customer services cell that is manned by qualified civil engineers. These, in addition to handling after-sales servicing, function as advisory bodies that can help customers, make the right choice of cement for a specific area of application. ACC can provide expert advice on getting the best value from cement and offer assistance on related issues in civil construction projects.

Besides this, technical books/booklets on cement, concrete and building construction and maintenance are regularly must be available for the benefit of the customers. In addition to this, ACC also publish free booklet, which profiles the latest information on concrete research, design, construction and maintenance.

Most outlet owners are experienced and old hand in this business. The scope for increasing the presence (Channel Members) exists for all companies through ACC and JP are in a relatively comfortable position here. No. of dealers of ACC is more in comparison to other cement brand. Even if JP is at per with ACC. Generally companies are using one level of channel of distribution. But sometime zero level is used also.e.g.

Manufacturer – Dealer – End-user

Manufacturer – End-user

Zero level is any possible when marketing department gives order to end-user to take their cement from manufacturing unit. The co. ( A.C.C or about cement brand ) produce facilities to his channel members such as provision for settlement of claims regarding quality, less wt. Of packages and lumps formation of the product for a particular period of time. ACC is preferred because it is the market leader amongst the cement while JP is preferred due to market demand. JP does the maximum sales promotion (i.e advertisement) in the opinion of dealers. But ACC does not give more advertisement to promote sales. Mode of


ACC Limited

transportation of cement by road is better one in the dealers whose shop are near to railway godown.

Minimum order acceptance by every company is 9 tonnes i.e. one truck company of any cement don’t accept less then 9 tonnes.

From selling point of view ACC brand is no 1, JP has got 2nd rank and TATA has got 3rd rank. It means that selling ACC brand cement is easier to other.

10. LIMITATIONS OF THE STUDY

In order to have a clear-cut idea of the market activities in ACC limited, sindri unit, I surveyed dealers and customers during my course of study. I prepared a questionnaire, which has been included in the Annexure at the end of this report. While preraring this questionnaire, I tried my level best to cover all the aspects of the marketing activities.

11.MARKET RATING OF MAJOR PLAYERS

As survey was conducted among the major players regarding the sales, market coverage, quality strength, and brand loyalty. The outcome of the survey was that out of score of 30 ACC was leading with 25 points, Lafarge with21 points and followed by Ambuja securing 19 points and lastly Durgapur Cement with a low score of 15 points.


ACC Limited

12. BIBLIOGRAPHY

Books:

Kotler, Philip.” Marketing Management” Prentice hall of India. Edition-IX

Drucker, Peter. “ Management Function & Behaviour”, BPB, Edition-III

Journal:

Singh, S.K.” A view across global marketing”. India Journal of commerce. Vol-54Indian management ( All India management Association ), Jan 2006 issues.

Web-Sites:

www.Acclimited.com.in

www.askACC.com

www.channelmgt.com


http://www.channelmgt.com/

http://www.askACC.com/

http://www.Acclimited.com.in/

Documents

Project on AccLimited