LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

“MARKET RESEARCH AND OVERALL PERFORMANCE OF J&K

CEMENTS IN SRINAGAR, KASHMIR”

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Master of Commerce

Submitted by:

Deepak Singh

Regd. No. 11001691

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(YEAR 2010-11)

1

CERTIFICATE

This is to certify that Sandeep Singh, student of Lovely Professional University , Punjab

has worked on project “MARKET RESEARCH AND OVERALL PERFORMANCE OF

J&K CEMENT IN SRINAGAR, KASHMIR”. He has successfully completed his project

work in partial fulfillment of Master of Commerce (M.Com) from Lovely Professional

University, Punjab. This project report is the record of the student’s own efforts under the

able supervision and guidance of Mr. Mandeep Singh.

Mr Mandeep Singh

Signature of director Signature of Guide

Date: Date:

Place: Place:

2

ACKNOWLEDGEMENT

First of all I would like to thank Almighty for blessing me to complete this

project. It was an honour and privilege for me to work for J&K CEMENTS

LTD. I am greatly thankful and extend my deepest sense of gratitude to

Mr. Farooq Ahmad Wani (Managing Director – J&K Cements Ltd.), who

most willingly extended his cooperation and gave me an opportunity to

work for his organization.

I owe a deep sense of obligation to the following persons for their

stimulating and enthusiastic support and guidance due to which I could

carry out this project successfully:

Mr. A.R. Wani, DY. General Manager, JKCLplant, Khrew Kashmir Mr. Javaid

Ahmad Hakeem, Manager Engineering JKCL

I would also like to extend my deep regards towards all the faculty

members of Lovely Professional University, Punjab for helping me to

complete my project successfully. I take this opportunity to thank Mr

Mandeep Singh for his role as a philosopher, friend and guide.

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S.NO. Chapters

1. INTRODUCTION OF THE STUDY(Executive summary)

2. THEORETICAL FRAMEWORK

3. BACKGROUND OF THE STUDY

4. OBJECTIVES OF THE STUDY:

5.SCOPE OF THE STUDY:

6. INDUSTRIAL PROFILE

7. J&K Cements Ltd: Overall Performance

8. RESEARCH METHODOLOGY

9. DATA ANALYSIS AND INTERPRETATION

10. SWOT Analysis

11. FINDINGS AFTER THE SURVEY:

12. CONCLUSION/ SUGGESTIONS

13. ANNEXURE

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14. BIBLIOGRAPHY

CONTENTS

INTRODUCTION OF THE STUDY

EXECUTIVE SUMMARY

The American Marketing Association (AMA) states, “Marketing is the process of planning

and executing the conception, pricing, promotion, and distribution of ideas, goods, and

services to create exchanges that satisfy individual and organizational objectives".

Marketing is a wide and heavily interconnected subject with extensive publications. It is also

an area of activity infamous for re-inventing itself and its vocabulary according to the times

and the culture. There are many different definitions of marketing. Consider some of the

following alternative definitions:

“The all-embracing function that links the business with customer needs and wants in order to

get the right product to the right place at the right time”

“The achievement of corporate goals through meeting and exceeding customer needs better

than the competition”

“The management process that identifies, anticipates and supplies customer requirements

efficiently and profitably”

“Marketing may be defined as a set of human activities directed at facilitating and

consummating exchanges”

The project report titled “Market Research and overall performance of J&K Cement in

Srinagar, Kashmir was conducted to find out the market share and overall performance of

J&K cements in Kashmir. During the survey, 150 sellers selling different brands of cement

were interviewed and their opinions and views about the quality, availability, economy in

price of J&K cement in the city were thus drawn. Questionnaire was used as a tool to get the

views and idea from the retailers.

5

J&K Cements Ltd. has been in operation for more than 26 years now, producing high quality

cement – 43 Grade OPC and PPC. The company has been growing at a fast rate i.e. 10-15%

annually and is first of its kind in govt. sector manufacturing high quality cement from past

several years. Company has in its credit various awards of excellence.

The basic objective to conduct the market survey was to find out the Market share and overall

performance of J&K cement in terms of quality, economy in prices and level to which the

company has been successful in fulfilling the social responsibility in Kashmir valley.

J&K cements has acquired a market share of about 35% in Srinagar city. Majority of the

retailers selling J&K cement are very loyal to the brand of cement. J&K Cements is having

an effective distribution channel as compared to other brands of cement. Its supply mainly

goes to the govt. sector. Being the brand of Kashmir and having a very strong goodwill in the

govt. sector as well as in market, J&K cement has restricted other brands of cement to expand

their market (particularly in govt. sector) in Kashmir.

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THEORETICAL FRAMEWORK

Theoretical framework is a structure of concepts which exists in the literature, a readymade

map for the study. The Theoretical framework for research provides guidance for the

researcher as study questions are fine-tuned, methods for measuring variables are selected

and analyses are planned. Once data are collected and analyzed, the framework is used as a

base of comparison. Did the findings coincide with the Theoretical framework? If there were

discrepancies, is there a way to explain them using the framework? The critique of market

research needs to know how to critically appraise a Theoretical framework for research.

Evaluating frameworks for market research requires skill, which can only be acquired

through repeated critique and discussion with others who have critiqued the same manuscript.

The novice critique of market research must be patient as these skills are developed. With

continuing education and a broader knowledge of potential Theoretical frameworks, one

builds a repertoire of knowledge to judge the foundation of a research study….the framework

for research.

Market Research

Market research is the result of consumer oriented marketing. Now- a- days it has become

necessary to study systematically the different aspects relating to the market process with

regard to fulfilling the expectations and need of the customers by introducing the right

product, at the right time and at the right place. Market Research is concerned with all those

factors, which have a direct impact upon the marketing of products and services. It involves

gathering, analyzing, processing and interpreting the information to help the management to

understand and identify the problems, opportunities, marketing environment etc.

What is retailing?

Retailing is defined as a conclusive set of activities or steps used to sell a product or a service

to consumers for their personal or family use. The word retailing is derived from the French

word retaillier, meaning ‘to cut a piece off’ or ‘to break the bulk’. A retailer is a person,

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agent, agency, company or organization which is instrumental in reaching the goods,

merchandise, or services to the ultimate consumer. Retailers perform specific activities such

as anticipating customer’s wants, developing assortments of the products, acquiring market

information, and financing.

Functions performed by the retailers:-

Retailers under takes business activities and performs functions that increases the value of the

products and services that they sell to the consumers. These functions are:

1. Providing an assortment of products and services.

2. Breaking bulk.

3. Holding inventory.

4. Providing services.

Providing an assortment of products and services:

Supermarkets typically carry 20,000 to 30,000 different items made by over 500 companies.

Offering an assortment enable their customers to choose from a wide selection of brands,

designs, sizes, colors and prices in one location. Manufacturers specialize in producing

specific types of products. For example, Cambell makes soup, Amul makes dairy products,

Kellogg makes breakfast cereals, and McCormick makes spices. If each of these

manufacturers had its own stores that only sold its own products, consumer would have to go

to many different stores to buy groceries to prepare a single meal. Hence all retailers offer

assortments of products, for the convenience of the customers.

Breaking Bulk:

To reduce transportation costs, manufacturers and wholesalers typically ship large cartons of

the product, which are then tailored by the retailers into small quantities to meet individual

consumption needs.

Holding Inventory:

A major function of retailers is to keep inventory that is already broken into user friendly

sizes so that the product will be available when consumers want them. Thus, consumers can

keep a small inventory of products at home because they know the retailers will have the

8

products available when they need more. Hence this is an important function done by the

retailers.

Providing Services:

Retailers provide services that make it easier for customers to buy and use products. They

offer credit so customer can have a product now and pay for it later. They display products so

consumers can see and test them before buying. Some retailers have salespeople on hand to

answer question and provide additional information about product. These are the different

services provided by the retailers to the customers.

Retail Industry in India:

In India, the retail sector is the second largest employer after agriculture. The retailing sector

in India is highly fragmented and consists predominantly of small, independent and, owner-

managed shops. There are some 12 million retail outlets in India. Besides, the country is also

dotted with low-cost kiosks and pushcarts. In 2001, retail trade in India worth Rs 11228.7

billion.

There has been a boom in the retail trade in India owing to a gradual increase in the

disposable of the middle-class households. More and more players are venturing into the

retail business in India to introduce new attractive retail formats like malls, supermarkets,

discount stores, department stores, and even changing the traditional look of the bookstores,

chemist shops, and furnishing stores. Food sales constitute a high proportion of the total retail

sales. The share was 62.7% in 2001, worth approximately Rs 7039.2 billion, while non-food

sales worth Rs 4189.5 billion however the non-food retailing sector registered faster year on

year growth then food sales.

BACKGROUND OF THE STUDY

Project report titled “MARKET RESEARCH AND OVERALL PERFORMANCE OF J&K

CEMENT IN SRINAGAR, KASHMIR” was undertaken as a part of two months summer

training program for the partial fulfillment of 2 year M.Com degree, as per the norms of

Lovely Professional University, GT road Phagwara, Punjab.

9

The main objective of the study was to understand the actual position of J&K cement in

Srinagar city by interacting and communicating with the retailers selling different types of

cement and thus finding the market share, overall performance of J&K in terms of quality,

economy in prices, and the level up to which the company has been successful in fulfilling

the corporate social responsibility. Descriptive research design was selected, random

sampling was done and questionnaire was used to collect the primary data.

Results of the survey conducted reveal that J&K Cements acquires a major market share for

govt. works in Srinagar, Kashmir. It has created an effective brand image in the market, by

providing quality cement and has an effective distribution system too which has helped the

company to expand its market throughout the Kashmir valley. Company has been much

successful in fulfilling the corporate social responsibility as compared to its competitors.

Company also has a golden opportunity to expand its market outside J&K state.

OBJECTIVES OF THE STUDY:

1. To find out the market share of J&K cements in Srinagar city.

2. To measure the overall performance of J&K cements in terms of quality and economy in

prices.

3. To find out the level to which J&K have been successful in fulfilling various social

responsibilities in Kashmir.

4. To find out the Positive and Negative aspects about J&K cements in the market.

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SCOPE OF THE STUDY:

Cement Industry in India is on a roll at the moment. Driven by a booming real estate sector,

global demand and increased activity in infrastructure development such as state and national

highways, the cement industry has witnessed tremendous growth. Production capacity has

gone up and top cement companies of the world are vying to enter the Indian market, thereby

sparking off a spate of mergers and acquisitions. Indian cement industry is currently ranked

second in the world. A large number of new players have entered the market and are vying to

gain market share in this rapidly improving market.

Scope of the Market Research was limited to Srinagar city. Retailers selling different brands

of cement were studied during the research meant to find out the market share and overall

performance of J&K cements in Srinagar city.

SIGNIFICANCE TO THE INDUSTRY:

The Project Report has a limited significance as the findings and observations during the

survey are based on the responses of 150 retailers which can be explored to take in the new

trends across the cement industry. The significance for the industry lies in studying these

trends that emerge from the study. Cement manufacturing sector is now a huge and the most

energy consuming industry changing rapidly with the changing market scenario and

developments in the construction sector. I have tried my level best to come up with some

ideas which can help the company to innovate its business tactics.

LIMITATIONS OF SURVEY:

There was a sincere and honest attempt to conduct the survey in the most efficient and

scientific manner possible. But the survey does have some limitations, which are as under: -

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As the survey was done in District Srinagar therefore the results reveal the performance

of J&K cements in Srinagar only, so the opinion of retailers in other districts of the valley

may be different.

Most of the retailers selling cement are illiterate and that is the reason they either

hesitated or refused to share their views.

Biased opinion of the retailers.

Due to the political disturbance and strikes in Kashmir valley, the study could not be

conducted in other parts of Kashmir.

Many respondents thought that it was not necessary to provide authentic information.

Limited time was available for conducting the survey.

INDUSTRIAL PROFILE

Bricklayer Joseph Aspdin of Leeds, England

first made Cement early in the 19th century

by burning powdered limestone and clay in

his kitchen stove. By this crude method he laid

the foundation for an industry which annually processes literally mountains of limestone,

clay, cement rock, and other materials into a powder so fine it will pass through a sieve

capable of holding water. Cement is so fine that one pound of cement contains 150 billion

grains.

Cement, the basic ingredient of concrete, is a closely controlled chemical combination of

calcium, silicon, aluminum, iron and small amounts of other ingredients to which gypsum is

added in the final grinding process to regulate the setting time of the concrete. Lime and

silica make up about 85% of the mass. Common among the materials used in its manufacture

are limestone, shells, and chalk or marl combined with shale, clay, slate or blast furnace slag,

silica sand, and iron ore.

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Each step in manufacture of Cement is checked by frequent chemical and physical tests in

plant laboratories. The finished product is also analyzed and tested to ensure that it complies

with all specifications.

Cement Industry in India is on a roll at the moment. Driven by a

booming real estate sector, global demand and increased activity in

infrastructure development such as state and national highways, the

cement industry has witnessed tremendous growth. Production

capacity has gone up and top cement companies of the world are vying to enter the Indian

market, thereby sparking off a spate of mergers and acquisitions. Indian cement industry is

currently ranked second in the world.

INTRODUCTION TO INDIAN CEMENT INDUSTRY

The origins of Indian cement industry can be traced back to 1914

when the first unit was set-up at Porbandar with a capacity of 1000

tonnes. Today cement industry comprises of 125 large cement plants

and more than 300 mini cement plants. The Cement Corporation of

India, which is a Central Public Sector Undertaking, has 10 units.

There are 10 large cement plants owned by various State

Governments. Cement industry in India has also made tremendous

strides in technological up gradation and assimilation of latest

technology. Presently, 93 per cent of the total capacity in the industry is based on modern and

environment-friendly dry process technology. The induction of advanced technology has

helped the industry immensely to conserve energy and fuel and to save materials

substantially. Indian cement industry has also acquired technical capability to produce

different types of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement

(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening

Portland Cement, Sulphate Resisting Portland Cement, White Cement etc.

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THE INDIAN CEMENT INDUSTRY NOW!

Cement industry in India is currently going through a

consolidation phase. Some examples of consolidation in the

Indian cement industry are: Gujarat Ambuja taking a stake

of 14 per cent in ACC, and taking over DLF Cements and

Modi Cement; ACC taking over IDCOL; India Cement

taking over Raasi Cement and Sri Vishnu Cement; and

Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri

Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian

cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the promoters'

stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of

two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements

combine and the Aditya Birla group through Grasim Industries and Ultratech Cement.

Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco.

Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries'

cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has

entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama

Cement.

Issues concerning Cement Industry

High Transportation Cost is affecting the competitiveness of the cement industry.

Freight accounts for 17% of the production cost. Road is the preferred mode for

transportation for distances less than 250km. However, industry is heavily dependant

on roads for longer distances too as the railway infrastructure is not adequate.

Cement industry is highly capital intensive industry and nearly 55-60% of the inputs

are controlled by the government.

There is regional im.comlance in the distribution of cement industry. Limestone

availability in pockets has led to uneven capacity additions.

Coal availability and quality is also affecting the production.

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J&K Cements Ltd:

The place is a remote area of district Srinagar, KHREW, where J&K cements came into

existence in 1980’s and started its production in 1981. The story of J&K cements thus began

and it has completed 28years of its glorious existence. Over the last few years, J&K cements

has spent its time to build, build and build………

“There is only one difference between dream and aim … dreams require effortless sleep and

aim requires sleepless efforts…………”

J&K Cements did a pioneering role in laying the foundation of cements as early as 1982 and

making a humble beginning. The group has to its credit thunderous achievements of universal

acclaim in terms of quality of the products and the latest technology employed, coupled with

able guidance and skilled work force.

J&K Cements is undisputedly the most diversified, spread out cement of the valley.

Currently the total employee strength of the J&K Cements is over 900 and is expected to rise

in future.

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The company has been in operation for more than 28 years now, producing high quality

cement – 43 Grade cement OPC and PPC at its cement plant situated at Khrew, Srinagar. It

started with the cement production of 600 tones per day, which is now going to increase to

1200 tones per day as J&K cements have recently started a new Rotary Plant unit of 600TPD

capacity.

The company uses latest sophisticated German technology. The company has distinction of

being the first plant of its kind in the valley. The company commands good market reputation

in the valley for super quality cement J&K Brand 43 Grade OPC, with super strength, super

finish and super fineness manufactured in latest sophisticated Rotary plant with computerized

raw material feeding.

The company provides employment to more than 900 persons directly and about 2000

families indirectly. Company provides a lot of benefits and allowances like Bonus, food

allowances, conveyance allowances etc to its employees. It believes that the reason behind

the fast growth of the company is its competent and skilled workforce.

NAME OF THE PROPRIETOR DESIGNATION

Managing Director Farooq Ahmad Bhat

(J&K Cements Ltd.)

Dy Gen. Manager(Plant) Mr. A.R. Wani

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CORPORATE MISSION

The management of J&K Cements aims at expanding its market by

providing better quality products with added services to meet the

market demand. Company also aspires for maintaining its

profitability and creates job opportunities in the state as well as

outside. Among the first companies in India to include commitment

to environmental protection is also included in its corporate

mission.

GENERAL FEATURES

The company was started with the initial capital of 38 crore rupees, Of

which 15crore was invested by the govt. and the rest by Banks and various

financial institutions. The company has been making profits right from its

inception.

J&K started with a staff of 315 employees falling under different cadres

including 25 managers/ engineers, 40 supervisors/ technicians, 200 permanent workers and

50 casual workers. At present, the company has staff strength of more than 900 employees of

which 30 are managers/ engineers, 70 supervisors, 550 permanent and 257 casual workers.

Further the company has an annual turnover of 50crore with an annual growth of 15-20%.

The company is having a very good conducive working atmosphere and is free from union

interventions. However, company has never witnessed any strike throughout its

establishment.

Being a fair market practitioner and providing quality products, the company is putting its

regular effort in research and development for making innovations in its market strategies and

locates new potential markets. The company is having dedicated well qualified and efficient

human resources.

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The capital investments, regular purchases, financial matters including preparation of

budgets, cash inflows and outflows etc are directly controlled and managed by the director of

the company who is very hopeful and positive about the mission of the company applying his

expertise in fulfilling the goals of the organization.

TRAINING AND DEVELOPMENT

The company does not have any annualized budget spared for training

purpose as the training is provided within the premises of the

organization by the experts from higher positions in the company.

Company only provides short term practical training to its employees

working at shop level. Employees found deficient while performing their

routine job are recommended for training purpose by the head of the department. Whenever

there is need for training the employees, the company shows its most interest in imparting

training to its employees.

Employees also show strong inclination and interest towards these training programs.

Jammu & Kashmir, located in the northern-most part of India has been described by many as

a 'Paradise on Earth' and holds huge potential in the tourism sector. Jammu & Kashmir's

economy is mostly dependent on farming and animal husbandry. Although small, the

manufacturing and services sectors are growing rapidly with several consumer goods

companies opening manufacturing units in the region during recent years.

According to estimates by the Centre for Monitoring Indian Economy (CMIE), outstanding

investments in Jammu & Kashmir as of the quarter ended March 2007, totalled US$ 8.1

billion, which is 18.7 per cent higher compared to the same quarter a year ago. This rise in

investments has been on account of increased investments in the manufacturing sector, which

grew by 78.6 per cent, and investments in power projects that rose by 24 per cent.

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ORGANIZATIONAL HIERARCHY

AWARDS OF EXCELLENCE WON BY J&K CEMENTS PVT. LTD.

LOYALTY AWARD 2007

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GENERAL MANAGER

DEPUTY GENERAL MANAGER

EXECUTIVE DIRECTOR

MANAGING DIRECTOR

CHIEF ACCOUNTS OFFICER

PERSONNELMANAGER

PURCHASE MANAGER

SALESMANAGER

BEST CONSULTING AWARD IN CEMENT SECTOR(IN J& K)

MOST RESPECTABLE COMPANY AWARD (J&K),

PRESENTED BY CHIEF MINISTER OF J&K

RESEARCH METHODOLOGY

METHODOLOGY:

Marketing research is a systematic gathering, recording and analysis of data collected by

various techniques to assess the response to different parameters related to a given project

and accordingly prepare a report based on which the company can have a view of the market

and the problem areas. These help the company to formulate various alternatives for the

solutions and take correct decisions. These decisions are highly crucial in determining the

marketing strategy to be adopted.

The main objective of the research was to find out the market share and overall performance

of J&K Cements in Srinagar city. Based on the findings, suitable suggestions were to be

given to the company to increase its sales and tackle competition.

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RESEARCH PLAN:

The research plan was executed with the help of following parameters in order to get the

required information:

1. Data sources.

2. Research approaches.

3. Sampling instruments.

4. Sampling plan

5. Contact method.

RESEARCH DESIGN

Type of Research : The type of research done was Descriptive.

Nature of Research : The research was Quantitative in nature.

Type of Questionnaire : The type of questionnaire used during the survey was the

Structured and formalized Questionnaire.

Type of Questions : The types of questions asked during the survey were Formalized

and Limited Probing.

Type of Analysis : The type of analysis carried out during the study was Statistical

Analysis.

DATA COLLECTION: It includes the source from where the data was collected during the

survey.

PRIMARY DATA:

Primary data consist of original information gathered for a specific purpose. The primary data

was collected through the questionnaire. It is the most common instrument in collecting

primary data.

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RESEARCH APPROACH & RESEARCH INSTRUMENTS:

The primary data was collected through a survey. Information was collected by personally

interviewing the retailers selling different brands of cement. The survey was conducted in

most efficient manner possible in different areas of Srinagar city.

QUESTIONNAIRE:

The questionnaire was carefully prepared, tested and debugged before it was put to actual

use. Each question contributed to the research objective. The questionnaire was framed in

such a manner so that it could serve the purpose of the survey.

SAMPLING DESIGN:

A sample design is a definite plan for obtaining information (sample) form a given

population. The steps involved in sampling design are as follows:

SAMPLING UNIT: WHO IS TO BE SURVEYED?

The market researcher must define the target population to be sampled. The sampling units

chosen for this survey were the retailers selling cement.

SAMPLE SIZE:

The sample size should be optimal. An optimal sample is one that fulfils the requirement of

efficiency, representative ness, reliability and flexibility. Sample size was 150 respondents

from the different parts of Srinagar who helped to get the relevant answers to the questions

mentioned in the questionnaire.

SAMPLING METHOD:

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The sampling method used for this survey was convenience-sampling method or random

sampling.

Introduction and briefing

Planning of the study

Research Proposal

Research Proposal was Prepared

Exploratory Research and Secondary Data Collection

Check internal and external sources of data, to help in the preparation of questionnaire

Survey and Primary Data Collection

Data Collection from consumers

Data analysis and interpretation

The following Research Plan was adopted during the Survey:-

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Data source

Secondary

Research Approach

Observation Methods Focus

Group

Contact Method

Mail Telephone

Research Instrument

Mechanical

Instrument

Sampling Plan

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Primary

Survey

Personal

Questionnaire

Sample Sample Sampling Sample Sample Sample

Unit Size Procedure Extent Duration Element

DATA ANALYSIS AND INTERPRETATION

REGARDING DATA ANALYSIS AND INTERPRETATION

The Data Analysis and Interpretation topic may be read keeping in view the following note:-

Most of the retailers simultaneously sell more than one Brand of cement such as J&K, Saifco,

TCI etc. Out of 150 retailers interacted during the survey, it has been ascertained that:-

51 retailers sell only J&K cement,

39 retailers sell J&K cement and also other Brands as well such as Khyber, TCI etc.

32 out of 150 retailers sell Saifco cement as well as other Brands like Khyber, TCI etc.

Minor numbers of retailers i.e.; only 28 out of 150 retailers, sell Cemtac along with other

Brands of cement as well.

The Market Share of each Brand is defined on page no. 47. Similarly Average monthly sales

of different Brands of cement sold by the retailers surveyed (150 retailers) is indicated

further.

25

138

59

30

130 0 0 0 0 0

0

20

40

60

80

100

120

140

Market share of different brands of cement

JKCL

Khyber

TCISaifcoHaroonAmbujaACCJhelumArcoICC

4) Different brands of cement sold by the retailers?

Brands Market share Out of %age

JKCL 51 150 34%

Khyber 35 150 23%

TCI 30 150 20%

Saifco 13 150 8.67%

ACC 0 150 0%

Haroon 0 150 0%

Ambuja 0 150 0%

ICC Jhelum 0 150 0%

Cemtac 15 150 10%

Arco 0 150 0%

Interpretation:

KHYBER cement has the major market share (92%) followed by Saifco (39.33%), TCI

(20%), Cemtac (8.67%) while as no retailer sells other brands of cement.

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Each response out of 150 retailers

5) Reasons why retailers prefer to sell J&K cement?

131120

42

117

101

35

127

11

0

20

40

60

80

100

120

140

Better Quality

More demand

Good profit margin

Regular availability

Durable/ preventsrusting of iron

More credit periodallowed by the supplier

brand image

It sets quickly

Reasons why retailers sell J&K cement Response Out of Share

Better Quality 131 138 94.92 %

More demand 120 138 86.95 %

Good profit margin 42 138 30.43 %

Regular availability 117 138 84.78 %

Durable/ Prevents rusting of iron 101 138 73.18 %

More credit period allowed by the supplier 35 138 25.36 %

Brand image 127 138 92.02 %

It sets quickly 11 138 7.97 %

Interpretation:

All the above responses are out of 138 each,

131 told that they sell J&K cement because of its Better Quality,

120 (because of more demand), 42 (because of Good Profit Margin),

117 (because of regular availability), 101 (because of its durability),

35 (because of more credit period allowed by the suppliers), 127 (because of the brand

Image) and only 11 (because of its quick setting)

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Each out of 138 Retailers selling J&K

Cements TSTScement

Saifco2010 bags,

2%

TCI8230 bags,

7%

Khyber25490 bags,

23%

JKCL74005 bags,

68%

JKCL

Khyber

TCI

Saifco

6) Quantity of different brands of cement sold by the retailers on an average monthly basis

Different brands Quantity of cement sold on an avg. monthly basis in

Srinagar city

J&K 74,005 bags (412 trucks approx.)

Khyber 25,490 bags (142 trucks approx.)

TCI 8,230 bags (46 trucks approx.)

Saifco 2,010 bags (12 trucks approx.)

Interpretation:

74,005 bags of J&K are sold on an average monthly basis in Srinagar city, followed by

Khyber (25,490 bags), TCI (8,230 bags) and Khyber (2010

\ bags)

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7) In which months, the demand for the cement is maximum?

013

56

114

144145

139

113

51

23

00

020406080

100120140160

1

Jan

ua

ry

Fe

bru

ary

Ma

rch

Ap

ril

Ma

y

Jun

e

July

Au

gu

st

Se

pte

mb

er

Oct

ob

er

No

vem

be

r

De

cem

be

r

January

February

March

April

May

June

July

August

September

October

November

December

Months Responses by the retailers Out of

January 0 150 retailers

February 0 150 retailers

March 23 150 retailers

April 51 150 retailers

May 113 150 retailers

June 139 150 retailers

July 145 150 retailers

August 144 150 retailers

September 114 150 retailers

October 56 150 retailers

November 13 150 retailers

December 0 150 retailers

Interpretation:

The demand for the cement is maximum in the month of June, July and August. It is the time

when the Cement is sold maximum in the market. while as in other months, the demand for

the cement is minimum.

29

8) Type of cement mostly bought by the Consumers

1 OrdinaryPortlandCement

PolarizedPortlandCement

0

150

0

50

100

150

Ordinary PortlandCement

Polarized PortlandCement

Types of cement Response Out of

OPC 150 150

PPC 0 150

Interpretation:

All the consumers prefer to buy OPC and no one buys PPC

30

9) Reasons why consumers mostly prefer to buy OPC and no

one buys PPC?

Costlier than OPC,

1,(1%)

It is low in quality & has less strength,

0,(0%)

less awareness

among consumers about PPC,

69,(46%)

Less availability of PPC in the

valley,80,

(53%)

Less availability of PPCin the valley

less awareness amongconsumers about PPC

It is low in quality & hasless strength

Costlier than OPC

Reasons why consumers buy OPC and not

PPC

Response by retailers Share

Less availability of PPC in the valley 80 53%

Less awareness among consumers about PPC 69 46%

Low quality & less strength 0 0%

Costlier than OPC 1 1%

Interpretation:

53 % of the retailers told that PPC has less availability in the valley,

46 % told that it is because of the unawareness of customers about PPC. More or less PPC is

unavailable in the state.

31

10) Rankings given by the retailers selling J&K in terms of

Quality, Economy in prices and overall performance?

1

Exc

elle

nt

Go

od

Ave

rag

e Po

or

0

1020

3040

50

60

70

80

90 Excellent

Good

Average

Poor

Ranking Excellent Good Average Poor

J&K 42 85 11 0

Interpretation:

42 retailers ranked J&K cement as Excellent in terms of quality, economy in prices and

overall performance, 85 retailers ranked J&K as Good and 11 retailers ranked it as Average.

32

11) Keeping in view the current competition and several new brands cement coming in

market, Will J&K cement be able to attain its market share in coming future period of time

and Why?

129122

23

105

0

50

100

150

1

Positives (YES)Quality cement

Goodwill in themarket

Low pricing

Effectivedistributionsystem

4

1

6 6

0

2

4

6

1

Negatives (NO) Delays in supply

Low quality

Deficiency inmarketing channel

High pricing

YES, it can attain its market share

because of these reasons….

NO, it cannot attain its market share

because of these reasons….

Reasons

Why

Qualit

y

cemen

t

Goodwil

l in the

market

Low

pricin

g

Effective

distributio

n channel

Delay

s in

suppl

y

Low

qualit

y

Deficienc

y in

marketing

channel

High

pricin

g

Respons

e

129 122 23 105 4 1 6 6

Out of 138 138 138 138 138 138 138 138

Interpretation:

From the above table, it can be interpreted that Majority of the retailers selling J&K

cement are of the opinion that J&K has the ability to attain its market share in future

period because of the quality cement, Goodwill in the market, Low pricing strategy and

Effective distribution channel.

33

12) How much has J&K been able to fulfill various social

responsibilities?

82

35

110

57

5

0

20

40

60

80

100

120

Created employmentopportunities

Increased standard ofliving of the society

Established charitabletrusts for the society

Provided Qualityproducts at economicalprices

Taken care ofenvironment/surroundings

Social Responsibilities Response Out of Share

Created employment opportunities 82 138 59.42 %

Increased standard of living of the

society

35 138 25.36 %

Established charitable trusts for the

society

110 138 79.71 %

Provided quality products at economical

prices

57 138 41.30 %

Taken care of environment/

surroundings

5 138 3.62 %

Interpretation:

82 of the 138 retailers told that J&K has created employment opportunities in the valley, 35

were of the opinion that J&K has increased standard of living of the society from the past

several years, 110 retailers told that J&K has established charitable trusts for the society, 57

retailers told that J&K has provided quality products at economical prices and 5 retailers told

that J&K has taken care of environment/ surroundings.

34

13) Does J&K needs Advertising and various other promotional

activities to be followed to locate potential markets and increase

sales?

87

51

0

10

20

30

40

50

60

70

80

90

YES

NO

Whether J&K need Advertising….. Response Share

Yes, it needs 51 37 %

No, it does not need 87 63 %

Total 138 100 %

Interpretation:

37 % of the retailers selling J&K cement told that J&K needs advertising and various other

promotional activities to be followed to identify potential markets and increase sales while as

only 63 % told that J&K does not need any advertising and various other promotional

activities.

35

14) Credit period allowed to the retailers selling J&K

Cement by their suppliers?

1914

60

99

0

10

20

30

40

50

60

70

80

90

100 0 - 7 days

7 - 15 days

15 - 30 days

Above 30 days

No credit allowed

Credit period allowed Response…. Share

0 – 7 days 19 14 %

7 – 15 days 14 10 %

15 – 30 days 6 4 %

Above 30 days 0 0 %

No credit allowed 99 72 %

TOTAL 138

Interpretation:

14 % of the retailers selling J&K Cement told that they get credit period up to 7 days from

the supplier, 10 % of retailers get credit period up to 15 days, 4% get credit period up to 30

days while as majority of the retailers i.e. 72 % don’t get any credit period from their

respective suppliers.

36

15) Does J&K need innovations in packing of cement to make

it more attractive and avoid loss of cement due to hooking,

careless handling etc or should it be kept as it is now?

88

50

0

10

20

30

40

50

60

70

80

90

Yes

No

Whether innovation is needed Response….. Share

YES, innovation is needed 88 64 %

NO, keep it as it is now 50 36 %

Total 138

Interpretation:

64 % of the retailers told that innovations should be made in packing to make it more

attractive and prevent loss of cement, While as 36 % of the retailers told that the packing is

good and should not be changed. It should be kept as it is.

37

S-W-O-T Analysis

STRENGTHS:

Major seller to govt. in Srinagar city as compared

to other Brands of cement sold in the market.

Strong Brand Image (Jehlum Brand) of J&K cement in the market.

Effective Distribution channel which enables regular availability of J&K cement in

the valley.

J&K cement is more durable and sets slowly.

The belief that "to succeed requires the highest standards of corporate behavior

towards the employees, consumers, societies and the world in which we live". J&K

has been creating employment opportunities from the past several years and

established various charitable trusts for the society.

WEAKNESS:

Company or the distributor does not inform the retailers about the price reductions to

be made in future period hence loss is suffered by the retailer. It also spoils the brand

image of the company.

Company has not provided any package or scheme to the retailers who are selling

J&K cement from the past several years. It could hamper the sale of J&K cement in

Srinagar city as the retailers would shift to other brands.

Cement coming from the new rotary plant established by J&K has complaints about

the colour of cement which is brownish and thus results in difference in colour of

plaster done on the walls.

38

Many registered retailers selling J&K cement from the past several years have never

been provided bill boards, flex banners, diaries, calendars etc which act as a

motivational tools and promotional steps to increase sales and retain the market share

in today’s competitive environment.

J&K cement is sold at different prices in the market by the retailer. It creates a bad

impression on the mind of the customer as he thinks that why all the retailers selling

the same brand but at different prices? He doubts about the quality of the cement.

OPPORUNITIES:

As India is a developing nation and construction sector is at boom, J&K with its

quality cement and strong goodwill can look forward to expand its market outside

J&K state.

J&K cements have a golden opportunity to fill the demands for cement in such areas

e.g. Shopian, Kangan, Islamabad, Kulgam Pahalgham, Yusmarg, Sonmarg etc where

other brands of cement are scarce or less available.

J&K could give a tough competition to other brands available within and outside J

&K state if they advertise their brand.

With the rise in production level, J&K has an opportunity to expand its distributorship

making the network of retailers vast and strong throughout India.

THREATS

Low profit margin given to the retailers can hamper the growth of J&K in future as

the retailers selling J&K cement would probably shift to other brands who give much

better margins to the retailer.

With the coming of several new brands like Sumo Cement, Arco, Haroon, Asian

Cement and Cemtac in the Valley having superb advertising, economical pricing

strategies, effective promotional activities, have posed threats to J&K.

Saifco, a tough competitor to J&K is planning to establish one more rotary plant with

the two times more capacity as compared to J&K Cement.

39

FINDINGS AFTER THE SURVEY:

J&K cements has earned a lot of trust in the valley as compared to other cements

available in the valley.

Customers mostly prefer to buy J&K cement because of its good quality, regular

availability in the market and durability.

Most of the retailers sell J&K cement due to its Good quality, Goodwill and more

demand.

J&K cement is the cement mostly sold to the registered retailers in Srinagar city.

Demand for the cement is maximum in the month of June, July and August.

Ordinary Portland cement is mostly bought by the consumers and no retailer sells

Polarized Portland cement.

40

Most of the retailers ranked J&K cement as good in terms of quality, economy in

prices and overall performance.

Majority of the retailers are of the opinion that J&K could attain its market share in

coming future keeping in view the current competition and several new brands

coming in the market.

J&K has always been able to fulfill its corporate social responsibility throughout the

valley.

CONCLUSION

Every ship that starts for a voyage needs a harbor to end its journey and so does our journey,

an exhausted survey conducted to know the Market Share and Overall Performance of J&K

cements in Kashmir valley, threw up some knowledgeable aspects which are clear from data

analysis.

A general impression that I gathered during data collection was the immense

awareness and knowledge among retailers about various brands of cement available in

the market.

As the company is growing fast and by the side it has also been successful in fulfilling

the various corporate- social responsibilities in Kashmir by providing quality cement

and establishing various charitable trusts (including Khalil Charitable Trust and J&K

Medical hospital) in the valley.

J&K cement has become a popular Brand name, Jehlum, in cement industry and

ensures quality and values for the investments in construction. It is the first cement

company in J&K State which has been successful in touching heights and won many

national awards.

Customer usually buys J&K cement because of the brand name and Better quality.

J&K cement is sold more in J&K state and regularly available without any delays.

41

SUGGESTIONS

Company should itself fix the prices of the cement and rate list should be provided to the

retailers so as to avoid the differences in the prices at which the cement is sold in the

market. It will result in uniformity of prices in the market.

Company should provide some schemes and packages to the retailers who have been

selling J&K cement from the past several years. Providing schemes or packages to the

retailers helps in motivating them and thus they become more loyal to the brand.

Company should inform the retailers in advance about the price cut downs to be made by

the company in future period so that the retailers are able to sell/ finish their previous

stock and avoid losses.

Flex banners, sign boards, diaries, calendars, bill boards etc should be provided to the

retailer to motivate them to become loyal to the brand. It costs less but pays much.

J&K should make innovations in packing of the cement bags. Usually due to hooking, the

bags are damaged resulting in loss of cement. It can be avoided by stitching a flap to the

bag so that the workers could lift the cement bag with the hands and hooking can be

avoided.

Company should keep a check on the Truck Union who increase the freight

(Transportation charges) @ 10 to 12% annually without any reason or giving any notice

to the retailer due to which the prices of the cement rise. Immediate attention of the

company is needed.

Due to the enormous rise in production capacity of J&K cement, company should look

forward to expand its market and sell the surplus cement in potential markets.

Trucks carrying cement from the plant to the retailer usually have very rough flooring

which damages/ cuts the packing of cement bags resulting in loss of cement as well as

loss to the retailer also as customer refuses to buy that bag. Flooring of the trucks should

be made better and water proof.

42

Company should also update its website which plays a very vital role in promoting sales

and creating awareness among the masses. Business transactions can also be made online.

Company should appoint a team who would appear the retailers, take feedback from them

and if there are some grievances, suggestions or complaints from the retailer, these should

be immediately corrected so that the company could point out its weaknesses in the

market and can work on it to eradicate these weaknesses. Who knows? May be the

suggestions from the retailers could help the company to grow and become the market

leader in future.

Company should always keep in mind that the ultimate sellers of the cement are the

retailers so proper care should be taken to preserve their rights as most of the retailers are

selling cement on credit basis to the customer, company should instruct its distributors to

provide credit facility to the retailers so they get some relief in selling the cement. It will

also help the company to motivate the retailer and becomes much loyal to the Brand.

Company should also mention the price i.e. MRP (Maximum Retail Price) of the cement

bag on the packing. It would make customers aware of the price which they are paying

and restrict the retailers to sell the cement more than the price mentioned/ printed on the

bag.

43

QUESTIONNAIRE

1. Name of the respondent: ____________________________________

2. Name of the Shop/ Address: _________________________________

____________________________________________________________

3. Telephone/ Mobile no: ______________________________________

4. Which brand/ brands of cement do you sell?

a) Ambuja b) Saifco

c) ACC d) J&K

e) Jhelum f) Cemtac

g) ICC h) TCI

i) Haroon j) ARCO

5. Why do you sell the above brand/ brands of cement?

Reasons

why?

Better

Quality

More

deman

d

Good

profit

margin

Regular

availabilit

y

Durable/

prevents

rusting

of iron

More

credit

period

is

allowed

by the

supplier

s

Brand

image

It sets

quickly

Ambuja

Saifco

ACC

J&K

Jhelum

Cemtac

ICC

TCI

Haroon

ARCO

44

6. In which months, the demand for the cement is maximum?

a) January e) May i) September

b) February f) June j) October

c) March g) July k) November

d) April h) August l) December

7. Rank the different brands of cement in terms of quality, economy in prices and overall

performance?

Ranking Scale

Excellent Good Average Poor

Ambuja

Saifco

ACC

J&K

Jhelum

Cemtac

ICC

TCI

Haroon

ARCO

8. Every day, different Brands of cement are advertised in newspapers, on radios and TV’s,

do you think that the cement you are selling needs advertising and various promotional

activities to be followed to create new markets to increase sales?

YES NO YES NO

a) Ambuja b) Saifco

c) ACC d) J&K

e) Jhelum f) Cemtac

g) ICC h) TCI

i) Haroon j) ARCO

9. Which Cement manufacturing company has been successful in fulfilling the following

social responsibility in Kashmir?

45

Responsibilities

Companies

Created

Employment

opportunitie

s

Increased

standard of

living of

the society

Established

charitable

trusts for

the society

Provided

Quality

products at

economical

prices

Taken care

of

environment

/

surrounding

s

Ambuja

Saifco

ACC

J&K Cements

Cemtac

ICC

TCI

Haroon

ARCO

10. Do you feel that innovations should be made in packing of the cements you sell to

make it more attractive and avoid loss of cement (due to hooking), handling, loading and

unloading or should it be kept as it is now?

YES NO YES NO

a) Ambuja b) Saifco

c) ACC d) J&K

e) Jhelum f) Cemtac

g) ICC h) TCI

i) Haroon j) ARCO

11. How much credit period is allowed to you by the supplier/

distributor of the cement you sell or no credit is allowed?

46

Credit

period

allowed

0 – 7 days 7 – 15 days 15 – 30 days Above 30

days

No credit

allowed

Ambuja

Saifco

ACC

J&K

Jhelum

Cemtac

ICC

TCI

Haroon

ARCO

BIBLIOGRAPHY

47

1. BOOKS/MAGAZINES REFFERED:

MARKETING MANAGEMENT by PHILIP KOTLER

Concepts & practices of Research Methodology by HARPREET SINGH.

MAGAZINES:

Company pamphlets Company Reports

2. WEBSITES REFFERED:

WWW.J&K.IN

www.jammu&kashmircements.net

WWW.GOOGLE.COM

WWW.PCA.COM

www.cementcorporationofindia.com

3. REPORTS/ARTICLES REFFERED:

ANNUAL REPORT OF BERKELEY NATIONAL LABORATORY

BRIEF PROFILE OF INDIAN CEMENT INDUSTRY from Bureau of Energy

Efficiency Board of India. By Katja Schumacher and Jayant Sathaye

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49