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INTERNSHIP REPORTON
ORGANISATIONAL STRUCTURE OF ULTRA TECH CEMENT
SUBMITTED BY:
MOHIT SARAWAGI
CHRIST UNIVERSITY
BANGALORE
1
INTRODUCTION
ULTRA TECH CEMENTUltraTech is the second largest cement manufacturer in India. It is the part of
Aditya Birla group and is subsidiary of Grasim. It has a capacity of 18.2
million tonnes. The company is the largest exporter of cement and clinker
from India. UltraTech has a presence in the west, south, north and east. The
western and southern regions are its major markets. The company exports
both clinker and cement. The company exports are moving towards cement
from clinker owing to the higher realization in the cement. In 2005-06 the
company exported 1.52 million tonnes of cement. With UltraTech Cement,
the Aditya Birla Group has established itself as not only the most respected
domestic player but also among the global leaders in cement. Now a look at
Aditya Birla group’s cement capacity:
Currently, the Aditya Birla Group is the 11th largest cement producer in the
world and the seventh largest in Asia and Ultra Tech and Grasim together,
make it the largest cement producer in India.
2
The group mainly has two cement units – Grasim and Ultra tech.
UltraTech Cement Limited, a Grasim subsidiary has an annual capacity of
18.2 million tonnes. It manufactures and markets Ordinary Portland
Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana
Cement. It has five integrated plants. This also includes the integrated plant
and two grinding units of the erstwhile Narmada Cement Company Limited,
a subsidiary, which has been amalgamated with the company in May 2006.
Grasim, on the other hand, manufactures grey and white cement. In grey
cement, the company has the capacity to manufacture 14.20 mtpa. This
includes Grasim’s capacity of 2.06 mtpa, Vikram Cement 4.2 mtpa, Aditya
Cement 1.5 mtpa, Rajashree Cement 4.2 mtpa, the acquired and merged
Dharni Cement 1.16 mtpa and the acquired Digvijay Cement 1.08 mtpa.
Grasim and Ultra Tech together have a cement capacity of 31.20 mtpa. And
when the B K Birla cement companies also come into the fold, the Aditya
Birla group would have a cement capacity of 37.86 mtpa, making it clearly
the largest cement maker of India.
The Aditya Birla Group bought over the cement business of L&T for
around Rs. 2,200 crore. L&T allowed its name to be used for about a year.
Then from 19th November 2003,the name was changed to ultra tech
cemco.This name also didn’t last for long and finally the ultra tech cemco
3
was changed to Ultra Tech cement. These stages of evolution of ultra tech
cement are listed below:
2001
:: Grasim acquires 10 per cent stake in L&T. Subsequently increases stake
to 15.3 per cent by October 2002
:: Durgapur grinding unit
2002
::
The Grasim Board approves an open offer for purchase of up to 20 per
cent of the equity shares of Larsen & Toubro Ltd (L&T), in accordance
with the provisions and guidelines issued by the Securities & Exchange
Board of India (SEBI) Regulations, 1997.
:: Grasim increases its stake in L&T to 14.15 per cent
:: Arakkonam grinding unit
2003
:: The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (CemCo). Grasim decides to
acquire an 8.5 per cent equity stake from L&T and then make an open
offer for 30 per cent of the equity of CemCo, to acquire management
control of the company.
4
2004
:: Completion of the implementation process to demerge the cement
business of L&T and completion of open offer by Grasim, with the latter
acquiring controlling stake in the newly formed company UltraTech
2006
Narmada Cement Company Limited amalgamated with UltraTech
pursuant to a Scheme of Amalgamation being approved by the Board for
Industrial & Financial Reconstruction (BIFR) in terms of the provision
of Sick Industrial Companies Act (Special Provisions)
TEAM
5
Board of Directors :: Mr. Kumar Mangalam Birla, Chairman
:: Mrs. Rajashree Birla
:: Mr. R. C. Bhargava
:: Mr. G. M. Dave
:: Mr. N. J. Jhaver
:: Mr. S. B. Mathur
:: Mr. V. T. Moorthy
:: Mr. S. Rajgopal
:: Mr. D. D. Rathi
Mr. O. P. Puranmalka, Wholetime Director
Executive President & Chief Financial Officer
:: Mr. K. C. Birla
Chief Manufacturing Officer
:: Mr. R.K. Shah
Chief Marketing Officer
:: Mr. S.N.Jajoo
Chief People Officer
:: Mr. C. B. Tiwari
Company Secretary
:: Mr. S. K. Chatterjee
ULTRA TECH PRODUCTION UNITS:
6
Ultra Tech’s subsidiaries are Dakshin Cement Limited and UltraTech
Ceylinco (P) Ltd.UltraTech has five integrated plants, six grinding units and
three terminals — two in India and one in Sri Lanka. These include an
integrated plant and two grinding units of the erstwhile Narmada Cement
Company Limited, a subsidiary, which has been amalgamated with the
company in May 2006.The details of its different production units is shown
on the next page.
Vision
7
To be a premium global conglomerate
with a clear focus on each business.
Mission
To deliver superior value to our customers,
shareholders, employees and
society at large.
Values
Integrity
Commitment
Passion
Seamlessness
Speed
PROFILE OF THE PRODUCTS
8
UltraTech is India's largest exporter of cement clinker. The company's
production facilities are spread across five integrated plants, five grinding
units, and three terminals — two in India and one in Sri Lanka. All the
plants have ISO 9001 certification, and all but one have ISO 14001
certification. While two of the plants have already received OHSAS 18001
certification, the process is underway for the remaining three. The company
exports over 2.5 million tonnes per annum, which is about 30 per cent of the
country's total exports. The export market comprises of countries around the
Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in
the company's strategy for growth.
UltraTech's products include
Ordinary Portland cement
Portland blast furnace slag cement
Portland Pozzolana cement
Cement to European and Sri Lankan norms
Ordinary Portland cement
Ordinary portland cement is the most commonly used cement for a wide
range of applications. These applications cover dry-lean mixes, general-
purpose ready-mixes, and even high strength pre-cast and pre-stressed
concrete.
Portland blast furnace slag cement
9
Portland blast-furnace slag cement contains up to 70 per cent of finely
ground, granulated blast-furnace slag, a nonmetallic product consisting
essentially of silicates and alumino-silicates of calcium. Slag brings with it
the advantage of the energy invested in the slag making. Grinding slag for
cement replacement takes only 25 per cent of the energy needed to
manufacture portland cement. Using slag cement to replace a portion of
portland cement in a concrete mixture is a useful method to make concrete
better and more consistent. Portland blast-furnace slag cement has a lighter
colour, better concrete workability, easier finishability, higher compressive
and flexural strength, lower permeability, improved resistance to aggressive
chemicals and more consistent plastic and hardened consistency.
Portland Pozzolana cement
Portland pozzolana cement is ordinary portland cement blended with
pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant
material or silicious earths), either together or separately. Portland clinker is
ground with gypsum and pozzolanic materials which, though they do not
have cementing properties in themselves, combine chemically with portland
cement in the presence of water to form extra strong cementing material
which resists wet cracking, thermal cracking and has a high degree of
cohesion and workability in concrete and mortar.
GOVERNMENT POLICIES
10
Government policies have affected the growth of cement plants in India in
various stages. The control on cement for a long time and then partial
decontrol and then total decontrol has contributed to the gradual opening up
of the market for cement producers. The stages of growth of the cement
industry can be best described in the following stages:
Price and Distribution Controls (1940-1981):
During the Second World War, cement was declared as an essential
commodity under the Defense of India Rules and was brought under price
and distribution controls which resulted in sluggish growth. The installed
capacity reached only 27.9 MT by the year 1980-81.
Partial Decontrol (1982-1988):
In February 1982, partial decontrol was announced. Under this scheme, levy
cement quota was fixed for the units and the balance could be sold in the
open market. This resulted in extensive modernization and expansion drive,
which can be seen from the increase in the installed capacity to 59MT in
1988-89 in comparison with the figure of a mere 27.9MT in 1980-81, an
increase of almost 111%.
Total Decontrol (1989):
In the year 1989, total decontrol of the cement industry was announced. By
decontrolling the cement industry, the government relaxed the forces of
demand and supply. In the next two years, the industry enjoyed a boom in
sales and profits. By 1992, the pace of overall economic liberalization had
peaked; ironically, however, the economy slipped into recession taking the
11
cement industry down with it. For 1992-93, the industry remained stagnant
with no addition to existing capacity
The things that primarily control the price of cement are coal, power tariffs,
railway, freight, royalty and cess on limestone. Interestingly, all of these
prices are controlled by government.
Purchase of materials:
A system is followed in order to purchase the materials. First the
requirements are taken from the respective customers or proper valuation is
done of the project. Then the various dealers are invited to submit the
quotations and finally the one with the lowest quotation and delivering the
best quality in the stipulated time.
DEPARTMENTS AND FUNCTIONS:
The various departments at ultratech Kolkata are
12
Accounts
Marketing
Logistics
Technical
Accounts
Secretary Head Regional head SH-MIS
Accountant Accountant
Accountant depot accountant accountant mis
LACF
MARKETING
13
Zonal head
Regional head
Territory sales manager
Territory sales executive
Long arm sales force
LOGISTICS
Zonal head
Regional head logistics
14
TECHNICAL (TASC)
Zonal Technical Head
Regional Technical Head
Territory Technical Sales Manager
Long Arm Technical Force
SWOT ANALYSIS
Strengths: Double digit growth rate
15
Cement demand has grown in tandem with strong economic growth;
derived from:
-Growth in housing sector (over 30%) key demand driver;
-Infrastructure projects like ports, airports, power projects, dam & irrigation
projects
-National Highway Development Programme
-Bharat Nirman Yojana for rural infrastructure
-Rise in industrial projects
-Export potential also demand driver
Capacity utilization over 90%
Weakness: Low value commodity
Cement Industry is highly fragmented
Industry is also highly regionalized
Low – value commodity makes transportation over long distances un-
economical
Opportunities: Demand–supply gap
Substantially lower per capita cement consumption as compared to
developing countries (1/3 rd of world average) Per capita cement
consumption in India is 82 kgs against a global average of 255 kgs
and Asian average of 200 kgs.
16
Additional capacity of 20 million tons per annum will be required to
match the demand
Limited green field capacity addition in pipeline for next two years,
leading to favorable demand – supply scenario
Threats: Rising input costs
Government intervention to adjust cement prices
Possibility of over bunching of capacities in the long term as some of
the players have already announced new capacities
Transportation cost is scaling high; bottleneck due to loading
restrictions
17
Coal prices climbing up; industry players say current shortage of coal
in the country is estimated to be over 10 million tonnes
PRICES
The regional variation in the Indian market has resulted in the cement prices
across regions witnessing movement within a band, with no appreciable
increase in any region. Differences in regional demand supply situation have
translated into price differences across regions. Prices are lower in Southern
regions where there is normally a supply surplus. However, prices are higher
in Eastern and Western regions where shortages exist. The surplus position
had resulted in significant pressure on price realizations in recent years.
.The cyclical trough in the late-1990s had a severe impact on the industry
financials. However, cement prices have firmed up during the last few years
due to improvement in demand-supply position and increasing consolidation
in the industry. The Wholesale Price Index (WPI) for cement increased 3.9%
during FY2005, as compared with a growth of 1.2% during FY2004. The
WPI for March 2006 was 11% higher than the WPI for March 2005.
18
Margins
Cement prices have firmed up during the last few years due to improvement
in demand-supply position and increasing consolidation in the industry. The
trend in gross sales realization is similar for the cement companies in our
sample (comprising pure cement companies accounting for around two-
thirds of industry production and sales).
The operating profits and margins for cement companies are most sensitive
to cement sales realizations. During FY2004-05, riding on high average
sales realizations, the cement companies posted increased operating profits
and margins. This reversed the decline in operating profits and margins
during FY2002-03. This was mainly because of excess capacity and the
consequent low price realizations. While sales volume of the sample
companies improved 7%, operating income (OI) increased 24.2% to Rs.
183.45 billion
19
RETURNS:
The key driver of profitability is cement prices, which fluctuate depending
on outlook on demand-supply gaps. The fluctuating fortunes of the Indian
cement industry are very typical of a commodity industry. The companies
make bumper returns during the boom years (FY1994-96, and FY2003-06)
while the performance goes down drastically during the lean years (FY1997-
2001). The returns have improved significantly since FY2003 because of
higher capacity utilizations, operational efficiency and cost control measures
supplemented with higher sales realizations.
the Indian cement industry has undergone vital changes through
technological changes in the pursuit of cost efficiency and drive for
consolidations. Most of the companies are making profits.
20
Key Result Areas:
Sales and Marketing are the chief activities at Ultratech cement Kolkata
division. Here the proper distribution of the products is being done and a
proper channel/system of accounting is followed
THE ULTRA TECH ADVANTAGE AND FACTORS FOR
SUCCESS
UltraTech Cement Ltd is one of the largest premium quality cement
producer in India. Advanced instrumentation systems, computerized process
control and online quality control through X-ray ensure consistently high
quality product at UltraTech Cement plant. The quality of UltraTech Cement
has been globally accepted and is India's largest exporter of clinker and
cement.
UltraTech Cement due to its consistently superior quality has become the
first choice amongst discerning users and construction professionals.
Raw Material :
Careful selection and scientific proportioning of raw material with the use of
latest technology enables manufacturing of high quality cement. Rigorous
21
hourly tests are conducted on raw material. Laboratories at all plants are
equipped with sophisticated facilities.
World Class process Technology ensures Quality and Consistency :
Quality Assurance is an integral part of Ultra Tech’s manufacturing
philosophy. The quality attributes are consistently ensured through rigorous
application of advanced technology. Key features include:
Use of good quality limestone and careful selection of other raw
material
Computerized mining operation and homogenization of crushed
limestone
Perfect proportioning of raw materials by QCX ( Quality Control
through X-ray )
Online process control through CCR ( Computerized Control Room )
High-quality clinkerisation and close-circuit grinding for optimum
particle size distribution
UltraTech Cement plants have been accredited with ISO 9001, 14001,
18001 Certifications by DNV of Netherlands
Distinct Features:
Higher Compressive strength
Optimal fineness
Balanced physical and chemical properties
Optimal setting time
Consistency in quality
Low-level of Chloride
High-soundness
22
Advantages:
Higher workability
Lower consumption
Enhanced durability
Quicker construction
Overall economy
Customer Care and Guidance:
UltraTech Cement offers customers a range of "product plus" services. A
full- fledged Technical Services Network has been set up exclusively for
technical advice and guidance in usage of cement
UltraTech Cement is marketed nationwide through large network of
stockist's, sales officers and representatives. Cement dumps have also been
established at strategic locations to facilitate faster delivery of cement.
Value Added Services :
Mobile concrete lab services ( Concrete cube testing facilities )
Training Programmes for masons, site supervisors on good
construction practices
Field visits by qualified civil engineers
Educating individual house builders on various aspects of building
material and construction
Non-destructive testing of concrete
Any other customer specific services
23
Applications :
1. All Kinds of constructions including precast and prestressed concrete,
masonry works
2. Slip form constructions
3. Rehabilitation and retrofitting works
4. Cement based products such as pipes, tiles, blocks, poles ,etc.
5. Roads, runways, bridges and flyovers
6. Water retaining structures
Product promotional measures:
Various product promotion techniques are applied at Ultratech for better
customer service and to maintain the proper quality..At regular intervals
Mason meets and Engineer meets are organized so that they can be trained
according to the requirement of the companies. Even the Technical team at
Ultratech visits the site on request over phone. Proper care is taken to
maintain the quality of the product and various technical methods are
applied in the lab to judge the quality of the products. Even advertisements
are used as a medium to promote any new product.
24
Career Planning and Promotional policy:
Proper career planning is done for each and every level of employees within
a certain time period depending on the performance. Generally a person
starts at the junior level and moves next to the mid level , than senior level
and finally to executive level. Certain experienced candidates are directly
appointed to a senior level depending on the kind of experience they are
having in a particular area.
Performance appraisal system:
Proper care is taken for the benefit o each and every employee and to
maintain the interest of the employees in their respective work.In order to
motivate them certain performance appraisal policy is maintained at
Ultratech. There are two types of appraisal given in a financial year .
Mid- term, appraisal and Full year appraisal. These are generally given in
the months of October and April.
25
Training Measures:
At Ultratech, Employee training is given regularly both to the existing
employees and new interns. A very professional environment is maintained
keeping in mind all the work ethics and services to be given to the customers
of the company. Before joining the company, every employee has to
undergo specific amount of training to get accustomed with the work culture
of the company. Every year certain number of interns join the company and
get themselves acquainted with the corporate world.
26
AWARDS AND CERTIFICATIONS FOR ULTRA TECH
All the plants of UltraTech are ISO 14001 Environment Management
Systems certified and adhere to OHSAS 18001 standards. Clean
technologies and processes that combine economic progress and sustainable
environment have been adopted at UltraTech's plants at Awarpur and
Ratnagiri in Maharashtra; Kovaya, Jafrabad and Magdalla in Gujarat; Hirmi
in Chhattisgarh; Arakkonam in Tamil Nadu; Tadipatri in Andhra Pradesh;
Jharsuguda in Orissa and Durgapur in West Bengal.
Export awards
Worldwide, clients have consistently endorsed Ultra Tech’s highest quality
standards. The list of export awards it has won is testimony to Ultra Tech’s
uncompromising standards on product quality. Ultra Tech has been on the
roll call of top exporters of the Chemicals & Allied Products Export
Promotion Council (Capexil), year after year.
Ultratech won the Capexil Certificate of Export Recognition - Top Exporter - Cement,
Clinker, Asbestos and Cement Products for the years 2000, 2002 and 2003.
Other awards that have come its way have included:
Year Award
27
2001 and 1999Capexil Certificate of Export Recognition - Highest Export in Non-mineral Sector
1999Capexil Certificate of Outstanding Export Performance - Chemicals & Allied Products (for Portland cement)
1998Capexil Certificate of Export Recognition - Top Exporter- Cement, Asbestos, Cement Products
1998 Certificate of Outstanding Export Performance, Gujarat state
1997Capexil Certificate of Export Recognition - Certificate of Merit for Export Achievement in Cement and Clinker
SOCIAL PROJECTS
28
"To actively contribute to the social and economic development of the
communities in which we operate. In so doing, build a better, sustainable
way of life for the weaker sections of society and raise the country's human
development index."
— Mrs. Rajashree Birla, Chairperson,
The Aditya Birla Centre for Community Initiatives and Rural Development
Our focus areas
Our rural development activities span five key areas and our single-minded
goal here is to help build model villages that can stand on their own feet.
Our focus areas are healthcare, education, sustainable livelihood,
infrastructure and espousing social causes.Education
Balwadis (pre-school)
Adult education
Non-formal education
Continuing education
Scholarships for girls, merit and technical education
Health and family welfare
Mobile clinics - doctors visit once a week
29
Medical camps - general and issue-based
Health training and awareness
Sanitation - toilets, training, smokeless chullahs, biogas
Safe drinking water
Mother and child health
Reproductive health
Awareness building
Sustainable development and livelihood and agriculture and watershed
development
Self-help groups
SGSY - dairy, readymade garments, jute project, basket making,
aggarbati making, bee keeping, durrie making.
Check dam
Irrigation
Land development
Soil and water conservation
Pasture development
Social forestry/ plantation activities/ nursery
Horticulture
Farmer training
Infrastructure development
Roads
30
Dams
Community centres
Houses
Culverts
Electricity
Health centres
Water channels
Schools
Social causes
Widow / dowry-less mass marriages
Women empowerment
Awareness drives on knowledge, attitude and practices
FINANCIAL HIGHLIGHT:
31
Balance sheet as on 31 March 2009
32
LIMITATIONS OF THE STUDY
33
1. The major problem of the survey was that most of the respondents
being very loyal to their brands didn’t give exact answers .like they
didn’t talk much about what problems they are facing, what are the
different marketing schemes of the brand in which they deal etc.
2. Once we got the questionnaire filled, we need to restart the
conversation in a very generalized way and talk about the local market
conditions. Like who is the main dealer, which cement is mostly sold
in that area etc.so this survey demands a good piece of time while
talking to the respondent. Also Sonepat & Kurukshetra are both big
Distts. With a number of small towns and villages. So to complete the
survey within 2 months time seems to be a bit difficult.
3. Some of the respondents may have told their average monthly sale
more than the actual. Because all of them think that the monthly sale
attached with the market image of their shop.
4. Many of the dealers/retailers refused to answer any question atall.So
the actual figures can be somewhat different from the one that we
have found out
.
5. Being new to the Distts of Sonepat & Kurukshetra, it is quite possible
that I was unable to explore some of the dealers/retailers.
34
RECOMMENDATIONS
Based upon the time spent by me in the market, usefull suggestions of the
dealers & retailers and the findings from the survey, following
recommendations can be suggested for increasing sales and effectiveness of
Ultra Tech Cement:
What matters for most of the cement buyers is the price of the cement
and then the quality. While visiting market for cement purchase, they
don’t care about which brand they are going to buy. They simply
know that X is ongoing price of the cement, if any brand costs higher
than X, they will not buy that brand. Ultra Tech Cement usually costs
4-5 Rs. Higher than the other counterparts. So the buyers, to much
extant not interested in buying Ultra Tech cement. This extra price is
the main reason behind lower sales.therefore, Ultra Tech need to take
some serious steps to reduce the selling price somehow.
The second thing is that a good percentage of buyers is still unaware
of the fact that Ultra Tech cement is the changed name of Birla
cement.Birla cement had a very good image and it is still very popular
among the customers. But people are not so much sure about Ultra
Tech cement. so Ultra Tech need to take some steps to make people
familiar with the’ Birla cement and Ultra Tech’ relation. Because this
will bring the old Birla loyal customers to Ultra Tech cement.
35
The number of retailers and sub dealers for Ultra Tech cement is very
less as compared to the main competitors ACC, J.K. etc.So Ultra Tech
need to be oriented in this direction. They need to increase the no. of
retailers as much as possible. Although Ultra Tech has taken a right
step with the ‘retailer registration scheme’ to increase the no. of
retailers. but this scheme needs some improvements. For ex-margin
for the retailers can be increased, we can assure them some gifts also.
While working, I saw that the main condition for this new scheme was
that the retailer will not sell any other brand of cement. Most of the
retailers refused the scheme due to this particular reason. So Ultra
Tech needs to give them some relaxation in this case.
Many of the Ultra Tech dealers used to shop other type of building
materials along with cement, in the same shop. This should not be
permitted by Ultra Tech.Because selling of these building materials is
more profitable than cement, so the cement selling becomes less
important for these dealers. They don’t give proper attention to the
company officials and also to the various schemes of increasing sales.
This in turn brings reduced sales to the company
Ultra Tech Cement has market image of a modern cement with very
good quality. It should try to encash this image. Its mainly the
younger section of people who care about quality first and then the
price. So Ultra Tech needs to give proper attention to the youngsters.
May be, they are not the cement buyers at present but future
possibility lies with them.
36
Ultra Tech also should have a check on the upcoming threat of
imported cement from Pakistan. The import of cement from Pakistan
has just started and very quickly it has become successful in the
southern markets. The main reason behind this success is the lower
price. The Pak cement brands like Lucky, Mapple Leaf and Elephant
costs 10-15 Rs. Lesser than the local Indian brands. Ultra Tech which
is already facing charges of higher price needs to be prepared for this.
Some of the Ultra Tech dealers complained that they are losing the
customers loyal to their shops, due to the high price of the cement
provided by them. So at some point, the dealers are not satisfied with
the company. This need to be taken seriously by Ultra Tech.Some
more incentive schemes should be introduced for the dealers and also
the frequency of visits from company officials need to be increased.
37
POSSIBLE ADVERTISEMENT METHODS
All of the cement brands use the similar methods of advertising like-
painting walls, use banners, giving free gifts to the dealers and masons
etc.There are still many possible methods of advertisement and creating
brand awareness, which are untouched. Some of these methods are as below:
Local cable T.V. can be used for advertising as well as to give details
about the major dealer/dealers in the city. Details like address, contact
no. of the dealer, different schemes, current market price etc can be
shown.
Local F.M. stations of sonepat and Karnal are also reaching a good
part of listeners. So these can also be used for the same purpose.
Banners, paintings are used mainly on the tractor trolleys, dealer’s
shop and on walls only. We can think about using banners on
rickshaws and autos also.
Different type of incentive schemes, free gifts are mainly for dealers
and sometimes for the masons. As a change, we can also try to attract
the customers directly. For ex-discount coupons, small free gifts,
scratch cards etc can be made available for the customers.
38
A number of meetings are organized by all the cement companies
with the local masons. Most of the masons are very less educated.
They attend many meetings. So it may become difficult for them to
recognize a particular cement brand. What we can do in this case is to
take help of Handvertising i.e. we need to put the Ultra Tech logo on
the hands of these masons. So that next time they saw this logo, they
found themselves a bit familiar with the company.
The ‘masons meet’ are organized by the company regularly. This
needs some improvements. We need to decrease the frequency of
these meets. What we can do is that organize a big meet with a no. of
people, higher company officials, entertainment, and snacks for all.
The presence of company officials in the meeting is not alone
sufficient. We need to call some big personalities from that city only.
The people like these masons are more impressed by the presence of
Govt.officials.
39
Ultra Tech has two major competitors- J.K. CEMENT and ACC
CEMENT.
Ultra Tech is well established in the markets as far as quality is
concerned.
Introduction of new attractive incentive schemes can bring new
dealers & retailers for Ultra Tech cement.
Price is the major factor that matters for a customer while purchasing
cement
Market share increases with the increase in no. of dealers.
40
41