Effect of Advertising & Outdoor Media of Birla Cement LTD
Effect of Advertising & Outdoor Media of Birla Cement LTD
Effect of Advertising & Outdoor Media of Birla Cement LTD
ADVERTISING &
OUTDOOR MEDIA OF
BIRLA CEMENT LTD
1
INTRODUCTION OF THE TOPIC
A) 1.Advertising
It means use of paid for space in a publication, for instance, or time on television, radio or
cinema, usually as a means of persuading people to take a certain course of action, or to
reach a point of view. It can be include posters and other outdoor advertising.
It is a team of experts appointed by clients to plan, produce and place advertising campaigns
in the media.
2
1.4 Advertising Appeals
now a day’s advertising has become expensive, time consuming and an important marketing
activity. Firms have a great stake in the success of their advertising campaigns, for their
growth and, at times, even their survival, depend on it. A vast amount of time, money and
energy to into the creative work of developing advertising appeals to influence the buying
behavior of consumers. Through various appeals, advertising influence, rationally or
emotionally, the prospect’s purchase decisions.
For this purpose, they take the help of varying product features or attributes in their ad
appeals, or seek to influence consumer perception of, a and changes in consumer attitude to,
the advertised product or brand, Ad appeals may be product –oriented or consumer-oriented.
Since there are a large number of such ad appeals, it would be difficult to discuss them all. It
would, therefore, be helpful to devise a framework for classifying advertising appeals.
3
1.6 Advertising Research
it provides the knowledge and data about the consumer, the product and the market. These
data are about who the consumers are, what their needs and wants are, what is who the
consumers are, what their buying behavior, what are the product qualities; when and where
these products are bought, who are the competitors, what is the extent of the competition;
and in selecting the type of media to be employed.
Advertising-related research falls into four phases:
(I) Research to facilitate idea generation.
(II) Research involving idea generation leading to extended creativity. Here research
observations are translated into creative copy.
(III) Pre-testing.
(IV) Past-testing of ads.
Though research can give direction to a campaign, it is no guarantee for success. The role of
research in advertising process is more to provide a consumer focus than a copy or treatment
focus.
1. Nature of product and service: - we should consider nature of the product & service
while selecting the medium of advertising. Because the product and service may be many
types.
As that daily use of the product and services and those product and services which fulfill the
needs of luxurious.
4
1.8 Outdoor advertising.
Cost efficient
Competitive advantage
5
Building good image.
Remind: product will yield benefits in future, retain a product in the customer’s mind
during off seasons; remind buyer where to find the product.
6
7
COMPANY PROFILE
History of BIRLA
In 1919, a young man Ghanshyam DAS BIRLA set up
the Indian owned jute mill near Kolkata. He called it BIRLA jute manufacturing
company. Time watched as the small unit prospered. It also embarked a young
man to Bacon the new industrial India.
“Shri Madhav Prasad BIRLA” transformed the humble jute manufacturing
company in to a mighty conglomerate-“BIRLA Corporation Limited”.
Current scenario
After the demise late M.P. BIRLA, his wife PRIYAMVDA JI BIRLA took
over as chairman of BCL and continue to lead company till her death 3rd July
2004. Now under the co-chairmanship of Mr.R.S.Lodha the company has
crossed the 1300 cores plus turn over more and has widen the profit. Its export
in 2006-2007 stood at Rs 70.80 cores. BIRLA Corporation has grown from
strength to strength.
As an enlightened corporate citizen, BIRLA Corporation
is keenly aware of its social responsibility too, and provides education and
health care facilities for employees, their families and the Community at large.
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Board of directors:
9
CORPORATE OVERVIEW
Mr. M.P.BIRLA
BIRLA Corporation Limited is the flagship Company of the M.P. BIRLA Jute
Manufacturing Company Limited in 1919; it was Mr.Madhav Prasad BIRLA
who gave shape to its present form. As Chairman of the Company, Shri Madhav
Prasad BIRLA transformed it from a manufacturer of jute goods to a leading
multiproduct corporation with widespread activities. Under the Chairmanship of
Mrs.Priyamvadaji BIRLA, the Company crossed the Rs. 1300 – corer turnover
mark and the name was changed to BIRLA Corporation Limited in 1998.
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BRANDS OF CEMENTS
UNITS BRANDS
11
8. IS/ISO-1400 BIS New Delhi Sep 1999 Both
Environment
Management.
9. Rajiv Gandhi National Greentech foundation 2003-04 Both
Award for Energy Hyderabad
Conservation
Product
“Cement is the flagship of BIRLA Corporation Limited. Nearly 93% of BCL
turn over comes from the cement division”.
Cement:- A binding material exhibiting hydraulic strength hence known as
Hydraulic cement.
Finally ground material which on addition of requisite quantity water
is capable of Harding both under water and air by the chemical interaction of its
constituents with water and is also capable of blending together.
Raw Material:- Lime stone, clay iron fuel used
Manufacturing Process:- Wet, semi wet, semi dry, semi dry.
Important Properties of cement:-
Compressive strength
Serting time
Specific surface area
Resistance to chemical attack
Heat of duration
Application area of cement:-
Dams and bridges
Concrete roads
All type of general construction
Underwater construction
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Application of product
APPLICATIONS
BIRLA Cement Khajuraho/Chetek – 43 grades Ordinary Portland Cement -
Brick and stone masonry.
Plastering and flooring.
Plain and reinforced cement concrete.
Pre-cast and pre-stressed concrete.
BIRLA cement Khajuraho/chetak-53 grade ordinary Portland cement -
Railway sleepers
Per-stressed girders and electric poles.
M25 &above concrete.
Roads, runways, industrial buildings, RCC bridges& lofty buildings.
Pre-cast concrete elements
BIRLA Samrat- Portland Pozzolana Cement -
Brick and flooring.
Plastering and flooring.
Plain and reinforced cement concrete.
Ordinary Pre-cast concrete work.
BIRLA Cement Khajuraho-sulphate Resisting Portland cement -
Building near sea coast.
Below ground, where concrete or mortar is used in foundation, aqua
ducts, canals & culverts.
Desert conditions.
In swampy areas for footing, plinth beams, piles etc.
Industrial effluent treatment plant, cooling towers,
chimneys, sewerage treatment plant.
Marine structures.
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Product Range
Product Profile
Facts:-
*1300 Crores plus Turnover.
*93%turnover comes from cement
*All six plant capacity 57.80 tons per annum
*40.58 corers export in year 2006-07
Plants
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The origin of BIRLA Jute’s Cement activities at sonata go back to mid fifties
and at this point of time, diversification of BIRLA jute to other areas started to
take shape. Satna Cement Works was the first cement plant in the house of
BIRLA and the plant itself was a capacity, which was the largest single unit in
terms of production capacity existing in our country at that time. This wet
process plant with a cement making capacity of 2.51 lac tons per annum (TAP).
Our cement is sold under the trademarks of “KHAJURAHO”.
A lot of changes in cement making process technology took place between
seventies and eighties and again the company was in for front to establish the
first largest sized plant based on dry process with precalcinutor technology. The
plant of 8 lac TAP capacity started functioning from October 1982 and had all
latest technology, instrumentation and automation. This has the first plant in the
country on one computer control of the process with the aid of array
spectrometer for quick and accurate analysis of the process with the aid of
materials selection of plant process enabled satna cement to produce extremely
good quality of cement efficiently and economically.
With the establishment of this plant, the materials cement making by wet
process becoming uneconomical apart from wastage of valuable fuel and energy
in continuing to run the outdated wet process plant established in 1959.
Therefore, the company decided to convert the wasteful wet process plant with
precalcinatar technology in the year 1987. This plant also incorporates the latest
machinery and equipment for making cement of quality and low cos
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SATNA CEMENT WORKS
SET UP IN 1959
Management Discussions
17
Business Environment
The year 2009-10 witnessed buoyant and sustained growth of the
Indian economy. In the last five years, the GDP of the Indian
economy has grown at an average of 8.5% p.a. notwithstanding the
significant dip in growth in 2008-09 on account of the global
slowdown. This year, despite the setbacks and challenges, the Indian
economy has achieveda GDP growth rate of around 7%.
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Performance at a Glance
12 months ended March
31.2010
Expansions
The Company's second cement plant adjoining the present plant
location at Satna with proposed cement capacity of 3.6 MTPA is
under progress. The Company Endeavour’s to commence commercial
production in the last quarter of 2010.
The Company also has plans to set up a cement plant in the Kurnool
District of Andhra Pradesh with a cement capacity of 4.8 MTPA. The
Company is awaiting certain clearances from the State Government
after which further activity shall take place.
The Company has been allotted a Coal Block in the Chinaware
District of Madhya Pradesh. The Mining Plan has been approved by
the Central Government and the Company has received clearance
from the Ministry of Environment & Forests. The Company is in the
process of evaluating offers from contractors and machinery
suppliers.
Future Outlook
The key growth drivers like housing and infrastructure are continuing
to be robust which augurs well for the cement industry. Gains will be
fueled by rising Government investments in housing and
infrastructure, driven by economic growth and increasing per capita
income levels. The planned infrastructure projects of road, airports,
ports and power generation should push cement demand further.
Cement continues to be one of the highly taxed products in the
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country despite being a basic essential commodity for growth. Any
move on the part of the Government to hike tax rates further to garner
more revenue may impact the profitability of the industry.
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per-capita consumption is 1.49 m2per annum. This shows a huge
potential for growth of ceramic tiles in India. The key growth drivers
for India's consumption are healthy GDP growth, rising income
levels, increasing urbanization, growing middle-class, a younger
population with exposure to lifestyle trends in developed economies
and growth of sectors like infrastructure unorganized retailing. As a
result, India's ceramic tile industry is expected to continue its growth
rate of approximately 15% per annum.
Bath Products
The size of bath products industry is approximately Rs. 3,700 crores
comprising sanitary ware, faucets, taps and bath fittings. As in case of
tiles, there is a huge potential for growth in India due to growing
demand for modern sanitation. The organized sector of the industry
focuses mainly on middle and upper market segments in urban areas,
whereas the unorganized sector is popular in lower-middle and price
sensitive end of the market as well as rural areas.
The growth of bath products is at a healthy rate of approximately 12%
per annum and this growth rate is likely to continue in future also.
Kitchen
Kitchen is a nascent industry in India. The trend of modular kitchens
is catching up in India. There is no large established player with a
national footprint and a strong brand and distribution network in this
industry. As a result, there are a number of small time players /
carpenters operating in this industry with limited scale of operations.
The industry is growing at a healthy rate of 25-30% per annum.
Performance at a glance
The sales revenue of the Division for the year ended March 31, 2010
was Rs. 1,187.63crores with a PBDIT of Rs. 175.80 crores.
It was a year of uncertainty, starting with the economy in the shadows
of recession but ending on a cheery note of recovery. With the Indian
economy improving in the second-half of the year, there was a revival
in demand for tiles, bath products and kitchens. Many projects which
were put on hold due to liquidity crunch re-started during the third
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and fourth quarters of the year. Thus, there has been a noticeable
improvement on the demand side during the latter part of the year and
it is expected to improve further in the current year.
The Division continued to strengthen its brands and build its
distribution network. The major marketing activities during the year
were merchandising, sales promotions for the trade network and
advertising in various media. On the distribution front, warehouse
operations were started in 4 cities during the year. This takes the total
number of ware houses to 33 across the country which enables to
cater effectively to the market requirements by shortening the lead
time for order servicing. The Division has also appointed 16 Johnson
Kitchen Franchisees with 19 counters across the country and is in the
process of scaling-up the activities further.
Innovation being one of its core values, the Division launched some
trend-setting innovative products. Marbonite Stain Free tiles exhibit
enhanced stain resistance when compared to ordinary vitrified
polished tiles. Most common household stains can be cleaned-off with
water or commercially available acids, provided they are clean
edimmediately. Endure Scratch Free is an ideal product for use in
high-traffic areas and areas susceptible to abrasion like offices, malls,
hotels, etc. When tested as per ISO13006 standards, Endure Scratch
Free tiles exhibit much higher level of scratch and abrasion resistance
as compared to ordinary glazed floor tiles. Johnson Germ Free wall
tiles another innovative offering which protects and prevents the
growth of fungus and bacteria. Johnson Germ Free tiles have been
shown to reduce the bacteria count of common bacteria such as
Escherichia Coli, Staphylococcus Aurous, Pseudomonas Aeruginosa,
etc., when tested against Japanese standards JIS Z 2801-2000 to a
level of greater than 95%.Johnson Germ Free helps promotes better
hygiene and reduces the possibility of infections and diseases.
Ceramic World Review, a reputed magazine published from Italy,
conducted a study in2009 of the world's top ceramic tile
manufacturers. H & R Johnson (India) was listed at number 19 in the
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list of 27 companies being the only Indian company to feature in the
ranking.
Future Outlook
With the healthy growth of the Indian economy and the industries that
the Company operates in, it is well-positioned to continue the growth
in future also.
Moreover, bulk of the products is targeted towards the affordable
housing segment which is likely to continue growing at a healthy rate.
The robust distribution network, strong brand equity, wide-spread
manufacturing locations and a comprehensive product portfolio of
tiles, baths and kitchens enable the Company to enjoy a distinct
competitive advantage over others in the market.
Expansions/Upgrade
In line with the efforts to introduce cutting-edge manufacturing
technology, a state-of-the-art Inkjet Printing System has been installed
at the Pen Plant in the month of May, 2010. It is aimed at producing
high-end, value-added Wall and Floor Tiles. This is the largest Inkjet
Printing System for the tile industry in India.
The Turbine control system at Pen is being upgraded to give better
control and trouble-free performance. Along with this upgrade,
equipments are being added for Inlet Air Chilling which will enhance
the power generation capacity from 3.5MW to 4.5 MW. The upgrade
is likely to be completed by the second quarter of 2010-11.
The Company has signed an agreement with IOC to shift the LNG
facility (supply by road) from Pen to Kunigal. This would reduce the
cost of energy for the Kunigal Plant significantly. This project is
likely to be completed by the second quarter of 2010-11.
RMC Ready-mix (India) (RMC) Division
Overview
The RMC Division is engaged in supplying ready mixed concrete and
aggregates required by the construction industry. As at March 31,
2010, the Division operated 59 concrete plant sand 7 aggregate
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quarries in different locations across the country. The Division has up
an-India presence and is respected as a leading supplier of ready
mixed concrete.
Performance at a Glance
12 months ended March 31.
2010
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construction boom and developments in the residential, commercial
and infrastructure space will offer great opportunities to the Division.
The growth for RMC will come through higher penetration in more
areas of construction. At present, around 8-10% of the total concrete
manufactured in the country is obtained through the RMC route
whereas internationally this figure is in the region of60-70%. It is
expected that this will undergo change and going ahead the
penetration will be more and faster.
Internal Control Systems
The Company has a system of internal control commensurate with the
size of its business comprising authority levels and powers,
supervision, checks and balances, policies and procedures. The
system is reviewed and updated on an on-going basis. The Internal
Auditors examine and evaluate the adequacy, relevance and
effectiveness of the internal control systems, compliance with
policies, plans and statutory / regulatory requirements. Appropriate
recommendations are made from operational and financial
management perspectives. They also provide value-added services to
the management for improvement inefficiencies and prevention of
avoidable losses.
Internal audit findings are regularly reviewed by the Audit
Committee. The statutory auditors independently monitor the internal
controls, compliance with procedures and their adequacy from time to
time and express their opinion on issues of concern at the Audit
Committee Meetings.
Human Resources
The Company has always considered its human resources as an asset
and is committed towards their development for continuous growth.
The Company believes that the employees are central to its
sustainable success and initiatives are taken to ascertain their levels of
satisfaction and to ensure that employees' morale and motivation are
constantly improved. Industrial Relations have remained cordial
throughout the year.
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Focus on training to enhance the skill-sets of employees in line with
the business and market requirements continued during the year. Skill
up-gradation as well as specialized psychological profile support
programmers for enhancing the happiness quotient of employees was
undertaken. Off-site bonding events were organized for employees.
Employee volunteering was encouraged, whereby some of the staff
participated in the Cyclotron (cycling marathon) which was organized
in Mumbai in February 2010 to promote a better environment.
Corporate Social Responsibility
Birla is proud of being a socially committed organization and a
responsible corporate citizen. The Company attaches great importance
to discharging its responsibilities to the community and society
wherever located. CSR includes maintaining top notch ethical and
business practices, health and well being of employees, energy
conservation measures and concern for environment.
The Company has been consistently taking action to integrate the
community around its plants through various community development
programmers related to issues like health, hygiene, safety, education,
environment, water management, sports, social and cultural activities.
The health centers at the manufacturing units are well equipped and
regular medical check-ups are carried out. Health care measures are
offered not just for its employees and their families, but also to those
residing in the immediate vicinity. The Company organizes various
health programmers on vaccinations, immunization camps, free
medical eye and general check-up camps, blood donation camps, etc.
Apart from undertaking a series of energy saving activities at the plant
and manufacturing processes, the Company has initiated stringent
measures to economies fuel consumption. The Company's HRJ
Division has utilized the cogeneration facility at the Pen Plant and
commissioned a biomass gasifies for spray drying application at the
Karakuls facility during the year. Thermal energy generation using
renewable biomass has been implemented at the tile manufacturing
facilities at Dew as, Kunigal and Karaikal. The purpose of the project
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was to replace fossil fuels for generating thermal energy by using
renewable biomass residues like Soya bean/ Ground Nut/Rice Husk
which were earlier treated as waste and thus serve as an additional
source of revenue for farmers.
The cement factory of the Company at Satna has one of the lowest
power consumption in the industry.
Safety, Health & Environment
The Company manages its operations with a high concern for safety
and environment. The efforts undertaken by the Company in
managing and nurturing the environment fulfill all safety norms. The
Company also provides suitable training to the Company's employees
about the importance of safety in day-to-day life in general and work
in particular.
During the year, the Company's cement plant was awarded the runner-
up position for NATIONAL SAFETY AWARD - 2007 for the
Lowest Average (Accident) Frequency Rate and the Accident Free
year. The Cement Packing Plant at Allahabad received the Winner
position in the same categories.
The Company has been accredited with ISO 9001, ISO 14001 and the
OHSAS 18001 for its cement plant at Satna and the tile
manufacturing facilities of HRJ Division at Pen, Dewas, Kunigal and
Karaikal.
During the year, the Company has received 13,692 CERs (Carbon
credits).
Cautionary Statement
Statements in the Management Discussion and Analysis describing the
Company’s objectives, projections, estimates, expectations or
predictions may be forward-looking statements within the meaning of
applicable laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that could
influence the Company's operations include input availability and
prices, demand and pricing of finished goods in the Company's
principal markets, changes in government regulations, tax laws,
economic developments within the country and other incidental
actors.
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2.6 Peer Comparison
P/BV
P/E EV/ ROE ROCE
Market Cap (TTM) D/E
Company (TT) EBIDTA
(Rs. in Cr.) (x)
(x) (x) (%) (%)
(x)
UltraTech Cem. 28,454.94 20.26 2.67 7.60 26.6 28.5 0.46
Ambuja Cem. 21,159.74 17.50 2.89 9.63 18.3 24.4 0.02
ACC 18,955.17 17.79 2.93 10.28 17.9 22.4 0.09
Shree Cement 6,184.10 24.51 3.11 6.13 44.4 30.0 1.18
Birla Corpn. 2,866.31 9.44 1.40 5.87 16.7 17.6 0.45
Birla Cement 2,433.75 25.41 2.01 7.16 27.4 31.2 0.44
Binani Cement 1,838.06 21.41 3.10 9.87 14.4 10.5 1.82
Heidelberg Cem. 948.40 18.47 1.24 5.80 8.6 13.5 0.00
J K Cements 769.23 12.01 0.68 4.70 22.6 21.0 0.82
OCL India 598.87 5.23 0.68 2.71 22.5 20.4 1.06
JK Lakshmi
566.53 9.58 0.55 3.40 27.2 22.7 0.92
Cem.
Sanghi Inds. 413.56 0.00 0.59 7.88 12.8 5.9 1.23
Mangalam
322.20 8.42 0.82 2.00 35.4 53.4 0.04
Cement
Guj. Sidhee Cem. 148.96 0.00 1.49 2.29 26.4 32.7 0.60
Sh. Digvijay Cem 145.61 15.30 0.84 14.15 7.0 6.9 0.00
12.7
Saurashtra Cem. 92.14 0.00 -3.77 2.82 12.4 15.5
1
Vinay Cements 83.92 121.62 1.14 0.00 0.9 1.9 0.13
Kalyanpur
54.40 0.00 1.30 0.00 0.0 0.0 0.00
Cement
Barak Valley 40.00 166.66 0.44 4.12 15.7 13.7 0.40
Burnpur Cement 33.88 69.13 0.61 29.11 1.2 2.5 0.59
RCC Cements 11.38 0.00 1.65 0.00 0.5 0.4 0.22
Balaram Cements 11.08 0.00 -0.46 0.00 10.8 8.9 0.00
Sainik Finance 9.16 0.00 0.38 3.99 0.8 3.3 0.07
Udaipur Cement 8.36 0.00 -0.06 0.00 0.0 0.0 0.00
Nirman Cements 5.70 24.78 1.39 0.00 0.0 0.0 0.77
Vishwakarma
3.95 0.00 0.50 0.00 0.0 0.0 0.01
Cem
Pittie Cement 3.79 0.54 0.03 19.93 24.3 13.2 1.60
Nihon Nirmaan 2.71 0.00 -0.09 0.00 0.0 0.0 0.00
Sahas Cements 2.65 0.00 0.33 0.00 0.0 0.0 0.00
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Somani Cement 2.59 0.00 -0.06 0.00 0.0 0.0 0.00
BIRLA 8 8 5 13
ACC 15 7 0 7
BIRLA CORP 9 2 5 17
MAIHAR 12 4 3 2
DIAMOND 7 7 1 0
JAYPEE 25 14 8 36
SATNA
CLUSTER 69 38 22 76
OTHERS 31 62 78 23
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2.7 Purchasing Guidelines for Cement
Specification of Cement
The cement required for construction should be factory-manufactured from a reputed
manufacturer. It must not be from the local plant manufacturer. Care should be taken
that the cement is properly packed from the factory, not be hand packed locally. While
taking supply of cement manufacturing date, grade and type should be checked. The
cement should not be more than six weeks old from the date of manufacturing.
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8. One cement bag should have 50 Kg. weight.
9. The cement bags should not be older than six weeks from the date of manufacturing.
10. Do not purchase cement bags which are partially set due to moisture. Do not
purchase if there are small lumps in the bags.
11. Do not purchase cement bags which are pressed or have lumps due to high
pressure of stack having more than 10 to 12 bags.
12. Do not take cement bags which are torn by side and stitched in later.
1. Care should be taken to carry the bags in a clean vehicle which is not dustier or on
earth etc. It will reduce the strength of the cement.
2. During monsoon season the cement should be carried under covered Polythene or
‘Tarpaulin’.
3. Care should be taken that the labor should not tear the bags while loading and
unloading the cement bags.
Caution:
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1. When construction work is given to a contractor, make sure he takes proper care of
the cement. A lot of time contractors do not care for proper storage of the cement at
site as it costs them labor time (money). This results in reduction of strength of
cement as the table below shows.
2. In some cases it has been seen that after laying the RCC slab on some part of the
building, the contractor dismantles his temporary store at the site and places cement on
ground floor of the building which is under construction. This is not good as the
cement bags may draw moisture from the floor and walls, as the new building is wet
due to construction work in progress, which results in reduction of strength in cement.
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purposes.
3. Different types of cements should not be mixed while using them for constructional
purposes.
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2.9MAIN COMPOUNDS OF CEMENT
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A) TRICALCIUM SILICATE (C3S)
i) Later strength
OXIDES COMPOUNDS:
LIME CaO
SILICA SiO2
ALUMINA Al2O3
IRON OXIDE Fe2O3
MAGNESIA MgO
SULPHATE SO3
ALKALIES (Na2O + K2O)
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CEMENT + WATER
IN BLENDED CEMENT:
CEMENT + WATER
Hydration
After 15 Days
SILICATE REACTION STARTS
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STRENGTH:-
WEAKNESS:-
Lack of adequate number of advertisements.
Sales promotional schemes are less in numbers.
Absence of proper
distribution channels
High price of product but
customers are observed to be
price sensitive.
OPPORTUNITIES:-
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Growth in infrastructural development will result in the consumption of cement.
Government policies of rural development will enhance the demand of cement in rural
areas.
Substantial potential for growth.
THREATS:-
Competitive pressure on sales and realization.
Present distribution if followed can lead in decreasing market share.
Any hike in price can effect the position of birla adversely.
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OBJECTIVE
39
OBJECETIVES OF RESEARCH
Objective has an important role in any research. No research exists without any
objective. Birla Cement Ltd. gave me two months project of — “EFFECT OF
ADVERTISING & OUTDOOR MEDIA OF BIRLA CEMENT LTD."
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RESEARCH
METHODOLOGY
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3.2 LITERATURE REFERRED
3.5DATA COLLECTION
For this research we obtained the data through the questionnaires. In this we include several
questions in order to birla cement sales promotion activity for increase the demand of
cement
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DATA
ANALYSIS
43
PERCENTAGE ANALYSIS:-
40
27%
30 y
18%
20
10
5% 5%
0
jaypee ce prism ce acc ce birla ce mahir
mahir ce
FIGURE NO: 1
Interpretation:
Most of the business in Satna deals in construction and building. Most of the dealers sell
Birla cement, some dealer’s sell JP cement but a few dealers sell other brand in Satna and
Rewa market.
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Customers prefers to buy such brand
cement, which is very much advertised
9%
18%
yes
somewhat
can't say
no
73%
FIGURE NO: 2
Interpretation:
In the survey it is found that 73% customers give importance to advertisement, 18%
customers finding it irrelevant , 9% customers did not gave any opinion about giving
importance to advertisement while buying cement.
This shows that a majority of customers in the market give importance to advertisement
given by the company while buying cement which shows that it also plays an important role
in increasing the sales of cement in the market.
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customers consider brand image as a
preference to buy cement?
4%
4%
25% yes
somewhat
can't say
no
67%
FIGURE NO: 3
Interpretation:
In the survey it is found that 67% customers give importance to brand image, 25%
customers give somewhat importance to brand image, 4% customers can’t say anything
about giving importance to brand image, and 4% customers don’t give importance to brand
image while buying cement.
This shows that a majority of customers in the market give importance to the brand image of
the company while buying cement which shows that brand image plays an important role in
increasing the sales of cement in the market
46
While buying cement customers give
more preference .
brand
18%
quality
36%
price
45%
FIGURE NO: 4
Interpretation:
Out of the total respondents covered in the survey 36% customers buy a particular brand of
cement due to its quality, 46% customers buy a particular brand of cement due to its price,
and 18% customers buy a particular brand of cement due to its brand name.
This shows that while buying cement the customers give most preference to the price,
second preference to quality of the cement, and 18 % people admitted of brand value and
advertisisng which has helped to make their decision.
It shows that if we produce quality and advertise it propoerly we can capture any market by
securing more than 50 % share of its volume.
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the following advertisement method
is the most effective
news paper
27% hoardings &
banners
27%
wallpaintings
36%
t.v.advert -
iesment
9%
FIGURE NO: 5
Interpretation:
In survey it is found that customer as well dealers said that Wall painting, Hoardings and
Banners, News paper advertisement are the most effective method for advertisement while
they give less importance to T.V. advertisement.
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The company who provide the most
pop & giveaways to dealer /retailer .
mahir cement
9%
jp cement-buland
27%
birla samrat
27%
prism-cement
27%
acc cement
9%
FIGURE NO: 6
Interpretation:
In this figure we find that JP cement provide 28% pop& giveaways item to dealer and
retailer
Birla provide 27%, acc 9%, Birla cement 27% and in the last maihar cement provide 9%.
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Are you satisfied with pop &
giveaways items.
yes
82%
FIGURE NO: 7
Interpretation:
50
What you find most attractive in our
outdoor communication and why
18%
36%
size
18% design
colour
visibility
27%
FIGURE NO: 8
Interpretation:
In the view of the dealer, retailer and customers point of view 37 % of people give a
preference to size.
27% of people give a preference to design.
18% of people give a preference to color.
Also 18% of people give a preference to visibility.
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Preference of brand among target group
5% 9%
5%
prism cement
jp cement
acc cement
mahir
birla samrat
27% 55%
FIGURE NO: 9
Interpretation:
In the survey it is found that 55% customers are satisfied with Birla cement, 27% customers
are satisfied with jp cement, 4% customers are satisfied with ACC, 5% customers are
satisfied with Maihar Cement, and 9% customers are satisfied with Birla.This shows that
the costomers are more satisfied with the Birla cement in the market.
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Most effective brand promotion strategy
4% 8%
50%
4%
jp cement
prism cement
acc cement
mahir cement
birla cement
33%
FIGURE NO: 10
Interpretation:
In survey it is found that jp cement brand has 50% the most effective sales promotion
scheme, Birla cement has 34%, ACC cement has 4%, Maihar cement has 4% and Birla
cement has 8 %.
This shows that Birla cement brand has the less effective sales promotion scheme in
comparison to JP cement.
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Best preffered outdoor advertising mode
9%
9%
price
18% gift
coupon
free sample
other
64%
FIGURE NO: 11
Interpretation:
In the survey it is found that most of the customers as well as dealers think that Discount
Schemes , Prizes, Gifts and Coupons, are the most useful methods for sales promotion while
they give less importance to the free samples and others sales promotion activity such as
Demonstration,
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FIGURE NO: 12
27%
dealer meet
gift item
foreign journey
64%
Interpretation:
In the dealer and retailer point of view toward the attractive schemes are promoted by Birla
Cement for dealers for enhancement of sales in comparison to other companies.
64 %give a preference to dealer meet, 27% give a preference to sub dealer meet, 95% give a
preference to gift items, and 0 % give a preference to foreign journey.
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The most useful sales promotion
strategy for selling of prism cement
brand
combition
36% push stratigies
36%
pull startigies
27%
Figure no.13
Interpretation:
56
FINDINGS
57
Findings
Most of the customers purchase cement from the market for purpose of building
House, Road and construction etc. Most of the customers use BIRLA & jay pee
cement in Satna region. However, in some areas viz., NAGUD, BIRSINGHPUR,
MAIHAR, UCCHARAHA, BIRALA ROAD and RAMPUR of the same region, they
mostly use BIRLA cement for CONSTRUCTION purpose.
In the survey I found that most of the customers give importance to Advertisement
and the buy that cement brand which is adequately advertised.
In the survey I found that 51% customers give importance to brand image for buying
any cement brand.
while buying cement the customers give most preference to the price, second
preference to brand of the cement, and least preference to quality of the cement
because they think that all the brands have equally good name in the market and all of
them have more or less the same qualityt.
In survey I found that Birla cement is the no. 1 cement manufacturing company for
launching attractive schemes.
In survey I found that Birla cement manufacturing adopts most effective sales
promotion scheme for its brands.
Birla cement’s products enjoy the highest demand in the market because of awareness
of its features by larger public.
Because of sales promotion methods such as free samples, prizes, gifts, coupons etc
which are being used by Birla cement, enhances its sells as well as awareness about
their products.
58
CONCLUSION
AND
RECOMMENDATIONS
59
CONCLUSION
The company should also focus on giving more incentives to the customers as well as
dealers.
60
RECOMMENDATION
After my project study, going through the market conditions of cement and the marketing
strategies of the company , I would like to make following suggestions to the company :-
be increased.
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QUESTIONNAIRE
62
QUESTIONNAIRE
Name of wholesaler/retailer/agency……………………………..………………………...…
Address:-…………………………………………………….…………………………………
Q.4 While buying cement, what does customers give more preference to?
a) Quality
b) Price
c) Brand
d) Others
Q.5 In your opinion which of the following advertisement method is the most effective?
a) Hoarding and Banners
b) Wall painting
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c) T.V. advertisement
d) Advertising in Newspaper
Q.6 which the company who provide the most pop & giveaways to dealer /retailer .
a) Jay pee cement-buland
b) birla-champion
c) Acc
d) Birla-samrat (Satna)
e) Maihar
Q.7 are you satisfied our pop & giveaways items.
a) Yes
b) No
c) Can’t say
d) Some what
Q.8 what is most attractive to you in our hoardings.
a) Size
b) Design
c) Colors
d) Visibility
Q.9 with which brand of cement customer are satisfied?
a) Birla cement
b) Birla
c) ACC
d) Masher
e) Birla
Q.10 which of the following brands has the most effective sales promotion scheme?
a) Jay pee cement
b) Birla
c) Acc
d) Maihar
e) Birla
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Q.11 under the following, which the method is the most useful method for sales
promotion?
a) Prizes
b) Gift
c) Coupons
d) Free samples
e) Others
Q.12 what are the attractive schemes promoted by Birla Cement for dealers for
enhancement of sales in comparison to other companies?
a) Dealer Meet
b) Sub- Dealer
c) Gift Item
d) Foreign journey
Q.13 which is the most useful sales promotion strategy for selling of Birla cement
brand?
a) Push strategy
b) Pull strategy
c) Combination of both
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SUGGESSION
66
SUGGESSION
The following suggestions are followed to cement companies based on the conclusion drawn
from the research study:-
Companies have to increase the awareness level in the buyers through print media and
other advertisement channels.
Company should maintain their regular supply according to the demand.
Proper survey and guideline should be given by the company.
Quality and brand name are to important factor hence companies have tried to build
and maintain name and their goodwill in the market.
Company should have reasonable price of the product to reach everyone.
Word of mouth can be generated by keeping the existing customers.
67
BIBLIOGRAPHY
68
BIBLIOGRAPHY
“BUSINESSRESEARCH METHODS ZIKMUND”
WILLIAM G
MARKETING MANAGEMENT
PHILIP KOTLER
MARKETING MANAGEMENT
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