Abhishek singh 1201 Punit patel 1220 Hitesh gamit 1209 Chirag parikh 1259 Rutvij RAJPUT 1261

Established in 1983 Director- Mr. Aditya Kaul. Business – production of cement Product – Portland and clinker variety Number of players in the industry - 90 Market share – 3.4% Current production capacity – 2.5 million tones

per year in M.P. in early 90s

1. POLITICAL-LEGAL: 1992 onwards – free from all price, distribution

and licensing controls Demand affected by cut down of government

expenditure on developmental activities (20%) and inflationary trend in economy.

Government encouragement of setting up of mini cement plants

Duties and taxes – 27.3% of total cost

2. Technological: Wet process technology which will consume large

fuel Modern dry process technology – save coal

consumption by 40 to 45% compared to wet process.

Precalcinator technology – optimum power utilization

3. ECONOMIC Inflation rate was rising Demand for cement is rising at the rate of 7 to

8.5% till year 2000. Income is seasonal in rural area so consumer

buys a cement on the basis of income which is uncertain

4. NATURAL:

90% of India’s limestone reserves were in Madhya

Pradesh, Tamil Nadu, Andhra Pradesh, Rajasthan,

Gujarat, Bihar, and Karnataka.

Excess of production in south and west (77%)

compared to their consumption level (57%)

Less production in North and East(20%) compared to

their consumption level (43%)

5. DEMOGRAPHIC: Literacy rate is less in rural areas of

Bihar, U.P. Mostly people are farmers . Constructional activity of a village

depend on financial situation of house owner which is seasonal.

High

MarketGrowth

Low High Low

Relative Market Share

FACTORS ACC CICC

MARKET SHARE 15% 3.4%

MARKET GROWTH 0.05% 110.31%

DEBT EQUITY RATIO 1.07 2.96

CURRENT RATIO 1.69 3.03

RECEIVABLES RATIO 25 292

80% people believed that darker the color of the cement more durable it was.

Masons taste the cement to determine its quality.

People was influenced by a mason who was the ultimate user of cement.

Villagers come with an empty bag to buy that brand.

Villagers perceived cement as “consumable durable” product

VM was a decision maker

STRENGTHS:•High growth rate

•Number of dealers are more in Bihar(1150) and U.P.(2500)

WEAKNESS:•No product differentiation

•Financial performance is not good compared to accounting standard

OPPORTUNITY:•Demand for cement was growing more in rural areas

•Reaching at rural areas were difficult, so first mover advantage lies there

THREATS:•Large numbers of competitorLow market share

• Market share is low

Distribution Channel: Use cost effective distribution channel which

would not led to damage & pilferage Availability of stock: keep a stock so that

customer would not shift to other brand Provide training to marketing staff about rural

marketing i.e. Mr.Nitya ,V.P Marketing has little understanding of rural market

Packaging: use local language in bag of cement so that customer can understand a brand

Advertisement: radio, TV, Haat, hoardings, wall

paintings, in popular event of village

Contact with influencer i.e. mason, Sarpanch or village mukhia

Provide darker & salty cement according to customer needs

Provide packaging in different quantities

The company has a large production capacity but is lacking in marketing.

Marketing strategy is not proper. Understand the rural buying behavior and

significance should be given to brand loyalty. The focus of the company should be on good

marketing so as to increase its market share.

THANK YOU