Tata Cement
Tata Cement
Tata Cement
Date:
Signature
Place:
PREFACE
ACKNOWLEDGEMENT
Signature
INDEX
No.
Particulars
1.
Introduction
2.
3.
General Information
4.
5.
Marketing Mix
6.
Research Methodology
(a)
(b)
(c)
(d)
(e)
Problem Identification
Objective of the Study
Scope of the study
Data collection Method
Analysis & Interpretation
7.
SWOT Analysis
8.
9.
Bibliography
INTRODUCTION
companies in the world. TCL has cracked the code. It was negotiating
to a German firm to raise its capacity from 200 to 800 tones of soda
Ash per day. At that time a chemical engineer named Mr. Darbari Seth
had came back from America to visit German Firm. He was not
impressed by what he saw; he told that they could aim not at 800 but at
400 tones, which was optimum capacity. Out of the 16 of management
board only JRD. Tata agreed. Then Darbari Seth was asked to take
over the design Fabrication and installation and to make new
equipments and machinery to renovate the chemical complex of
Mithapur.
Mr. Darbari Seth and his team had to design and fabricate some
plants to make Soda Ash, expect each one and ensure that all of them
worked right together. After the plant was ready the team was asked to
take on the operations and demonstrate whether they could produce 400
tones per day. They worked with the missionary zeal and at the end of
the first fortnight the plant touched a production capacity of 545 tones
per day.
In 1962, the rain failed where the average rainfall was 18 inches
only. At that time Mithapur was fed up by two lakes, company did not
wait till the end of October. It arranged for the suitable treatment,
seawater to replace fresh water in plant operation and revised the
necessary method including recycling. For 3 successive years the
condition remained same but the production continued to rise and
Mithapur expanded to produce 1000 tones of soda Ash per day and now
its production is 1500 tones per day.
General
Information
Index
No.
Particulars
1.
Project at Glance
2.
Main Products
3.
Managing Body
4.
5.
6.
Corporate Values
7.
8.
10
Project at Glance
Registered office
Bombay House,
24, Homi Mody Street,
Mumbai 400 001.
India.
Year of establishment
1939
Form of organization
Auditors
Works
Web Site
www.tatachemicals.com
Email Address
Fax no.
91 (22) 56658144.
11
Bankers
Total Staff
12
Main Products
1) Soda Ash
2) Sodium Bicarbonate
3) Fertilizers
Phosphate Fertilizers
Value added Fertilizers
Nitrogenous Fertilizers
Potosi Fertilizers
Complex fertilizers.
4) Salt
5) Bromine
6) Cement
7) Caustic Soda
14
Managing Body
Promoter
Chairman
Vice Chairman
Mr. R. Gopalkrishnan
Managing Director
Executive Director
Mr. P. K. Ghose
Mr. R. Mukundan
Directors
Company Secretary
Mr. B. Renganathan
15
16
Awards &
Achievements
Corporate Values
Integrity:
We must conduct our business fairly, with honesty and
transparency. Everything we do must stand the test of people
scrutiny.
Understanding:
We must be caring, respectful, compassionate and
humanitarian towards our colleagues and customers round the
world and always work for the benefit of India.
Excellence:
We must constantly strive to achieve the highest possible
standard in our day-to-day work and in the quality of goods and
services we provide.
18
Unity:
We must work cohesively with our colleague across the
group and with our customers and partners around the world to
build strong relationship based on tolerance, understanding and
mutual co-operation.
Responsibility:
We must continue to be responsible and sensitive to the
countries, communities and environments in which we work
always ensuring that what comes from the people goes back to the
people many times over.
19
Mission
We shall be the most respected company the business and
in geographies we operate in and our success will be achieved
by a consistent focus on.
Achieving globally competitive cost levels. Enhancing
the value proposition to customers. Improving shareholders
value, commitment to corporate social responsibility.
Strengthening stakeholder relationship.
20
Tata group of
companies
1) Agricultural Inputs:
Rallis
Tata Chemicals
2)
TACO
components
TATA technologies
Services
TATA Motors
Vehicles
For Automotive
For Automotive
For Commercial
Chemicals:
TCL, Rallis
Jamipol
4)
For Agrochemicals
For Fertilizers
Automotive:
3)
Chemicals
De-sulphurising compounds
Communication:
Tata Indicom
21
Tele Communication.
5)
Consultancy:
6)
7)
Energy:
Tata Power
Tata Projects
Power
Tata BP solar
Solar energy
Engineering:
Voltas
Air-contioning products
Tata steel
Telcon
Construction Equipments
Engineering consultancy.
NELCO
Industrial electronics
TAL manufacturing
Engineering works
Precision equipments
Tata Holset
Turbochargers
22
8)
Financial Services:
9)
Tata AIG
Food Products:
Tata Tea
Tata coffee
10) Hospitality:
Indian Hotels
12) Infrastructure:
Tata projects
23
Insurance Sector
For investment
THDC
13) Materials:
14) Publishing:
Tata interactive
Tata Mc Graw-Hill
15) Others:
Tata ceramics
Tata ELXSI
Tata Petrodyne
Tata Tetley
Titan Industries
TANISQ.
24
For E Learning
Publishing
Changing
Role of
Marketing
25
Introduction
26
What is Marketing?
According to Peter Drunker The modern marketing concept is
a customer oriented backed integrated marketing wined at
generating customer satisfaction as the key to satisfying
organizational goals, moreover, changing environment has provided
many opportunities and threats to the marketers who are how
required to be more conscious and cautions about the marketing of
their products.
28
29
30
Marketing
Mix
31
Index
No.
Particulars
1.
Introduction
2.
Product Mix
3.
Price Mix
4.
Promotion Mix
5.
Place Mix
32
Introduction
Product Mix
BRAND:
A brand is a name, symbol or design or a combination of
them, which is intended to identify the goods. The brand
identifies the product for a buyer and it gives a chance to seller
to earn goodwill and good image in the market. In this industry
TATA cement itself is given a brand name to its cement
products range.
34
2)
FEATURES:
Features are the characteristics of the product. It shows
that the product is featured in many forms. TATA cement also
has many features in it. There are different featured cement are
introduced in the market for example Ordinary Portland Cement
(grade 43), Ordinary Portland cement (grade 53), Pozzolana
Portland Cement.
3)
PACKAGING:
Packaging has many characteristics in it. Some of them can
be described as; Packing is the means of advertising for the
producer. It prevents the product from damages. It helps in
easy handling to customers. Tata cement is packed in the big
plastic bags for its proper supply to the dealers and consumers.
35
Price Mix
1)
Pricing policy:
It provides general framework within which managerial
decisions are made on pricing. It must adopt changes with
changing environment and changing marketing objectives. Over
here in the products like cement, fluctuations in the prices are
very often as compared to FMCG goods or others, there occurs
a price change only after some stipulated period of time due to
any market changes or technological changes and thus over here
the pricing policy remains stable for a fixed period of time.
2)
Pricing Strategy:
Strategy is a plan or action to adjust with changing
conditions of the market place. Pricing should be done through
proper planning and considering the external environment.
36
3)
37
PROMOTION MIX
Advertising:
An identified sponsor can define advertising as paid
communication of goods, services or ideas. It is a paid form of
communication because advertiser has to pay for the space or
time in which his advertisement appears for this purpose,
different advertising media can be used like newspapers,
magazines, radio, television, etc.
Tata chemical advertises Tata cement through various
means and methods like newspaper, magazines, Hoardings,
Wall paintings and gift items.
2)
Personal Selling:
Personal selling is also known as salesmanship. It is the
best means of oral and face-to-face communication and
presentation with the prospects for the purpose of making sale.
There may be one prospect or number of prospects in personal
communication.
38
Sales Promotion:
It is a short-term incentive given to the customer to
encourage trial or purchase of a product or service. It stimulates
consumer to purchase a product. According to American
Marketing Association These marketing activities other than
personal selling, advertising and publicity that stimulates
consumer purchasing and dealer effectiveness such as display
shows and exhibition, demonstrations and various non-recurrent
selling efforts not in the ordinary routine. As a part of sales
promotion Tata chemicals provides the customers with the free
vouchers in which all types of details are mentioned of Tata
cement and also draw system at dealers level of promotion.
4)
Publicity:
It is a special form of public relation program. It is nonpersonal stimulation of demand for a product or service by
placing commercially significant news about it in a publication
or attaining favorable presentation of it upon Radio, T.V. or
stage. Sponsor does not pay it. Tata cement is not doing any
type of publicity as compare to the other companies.
39
Place Mix
It stands for the various activities the company undertakes to
make the product accessible and available to customers. In todays
economy vast distances separate the producer and customer. So it is
necessary to fill this place gap and for that purpose some middlemen
are there, place mix is nothing but marketing activity in which
movement or flow of goods or services are there from primary
producers to ultimate consumers.
1)
Physical Distribution:
Physical distribution is looks after physical handling of
goods and it tries to provide maximum customer service.
Physical distribution is the ingredient in the marketing mix that
describes how products are moved and stored. Physical
distribution can decrease costs and increase customers
satisfaction. It consists of all business activities concerned with
stocking and transporting materials part or a finishing inventory.
40
Study of
Satisfaction level
41
Introduction of the
topic
Customer satisfaction
The whole purpose of the marketing process is customer
satisfaction. Infect today customer satisfaction is the only justification
for the existence of the organization. A simplified model of customer
satisfaction is as follows:
Customer Expectations
Perceived Delivery of product and services
Match
Yes
No
Satisfied -----------Dissatisfied
42
Dealers Satisfaction
For every organization distribution is very much important
without distribution a firm cannot even exit. In two days ever
increasing competition every firm. Must have effective distribution to
compete well.
In cement product dealers all the major part of the distribution
channels. A satisfied dealer can obviously perform well for his/her
firm. Moreover being nearer to consumers they can also give some
very good suggestions for the improvement of their companies.
Having this point in my mind, I conducted a survey in
comparison of few major competing companies i.e. Ultra tech, Tata,
Hathi, Sanghi, Sidhee and Ambuja. However, I have tried to check the
performance of Tata cement companies as far as dealers satisfaction is
concerned.
43
Research Methodology
A. Problem Identification
The problems, which prompt me to conduct such survey, were to
know to what extent the consumers of Tata cement are satisfied as
compared to consumers of other cement brands. Another problem was
to know why Tata cement is not as much sold as Ultratech cement in
the market.
44
To find out whether they are satisfied with the cement or not.
To know potential demand of the consumer.
For dealers satisfaction survey:
Income Level:
a)
b)
c)
d)
Below 10,000
10,000 20,000
20,000 25,000
25,000 & above.
2)
Whenever you purchase the cement which brand you preferred the
most?
_________________
3)
4)
Price
Brand name
Availability
Quality
Have you purchased TATA cement?
Yes
5)
No
From where did you first come to know about TATA cement?
46
a)
b)
c)
d)
e)
6)
News papers
Hoardings
Wall Paintings
Shops displays
others
According to you TATA cement differs from the other brands?
___________________
7)
Does your preferred brand give you full satisfaction? If no, then
what is lacking in it?
Yes
If no then lacking in,
No
Price
Availability
Strength
Quality
Others (please specify)
8)
____________
Would you switch over to other brand? If yes, then which brand
would you prefer? Why?
___________________
10)
Very good
Good
Average
Poor
11)
________________
2)
Since how long have you been the dealer of this company?
_________________
3)
Are you satisfied with the level of support you get from TATA
cement?
Yes
4)
Yes
5)
No
No
6)
7)
Ultra tech
TATA
Hathi
Sidhee
Sanghi
Ambuja
9) According to you, what a company should do to be no.1 in your
city?
______________
10) Suggestions.
49
60%
50%
No.
Of
consumer
in %
52%
40%
34%
30%
20%
10%
10%
4%
0%
Below 10,000
10,000 20,000
20,000 25,000
Income level
50
25,000 Above
From the above graph we can say that consumers having monthly
income below 10,000 purchased the cement frequently. And a firm
should concentrate on them more to sale their product and should
design the marketing programs and schemes keeping in mind their
ideology.
Brand Name
No. Of Consumers
Percentage (%)
TATA
11
22%
Ultra tech
19
38%
Ambuja
15
30%
Other
05
10%
Total
50
100%
From the above table, it is clear that Tata cement is given the
third priority as per the brand name is concerned with the rating of 38%
pioneered by Ultra tech and 30% by Ambuja and followed by 10% by
other cement Brands.
2) Which factor do you consider while purchasing the cement?
- Criteria for purchasing the cement are as under:
51
Chart:
50%
40%
30%
20%
10%
0%
42%
34%
14%
4%
Others
6%
Quality
Price
From the above graph, it is clear that brand name (42%) is the top
most criteria in purchasing the cement followed by availability (34%),
price (14%), quality (6%), and others as (04%) at the fifth position
clearly shows that consumer gives the first preference to the quality
then price as price range in the product like cement is also same of all
brands.
3)
52
4)
From where did you first come to know about Tata cement?
Chart:
60
50%
50
40
30
24%
20
10
10%
6%
0
News Paper
Hoardings
Wall Paintings
Shop Display
Medium
From the above graph we can say that the advertisement plays on
important role in purchasing the cement. It shows that 50% consumers
decisions are affected by the wall painting and thus for the sales of the
cement they should use wall painting medium most which is also the
cheapest one, and newspaper advertisement method should be used in a
least manner as 6% of the buyers are only affected and attracted with
newspapers advertisements.
5)
According to you, how Tata cement differs from the other brands?
6)
Brand Name
Tata
Yes
14
No
2
Yes
28%
No
4%
Sidhee
10
20%
4%
Ultra tech
12
24%
2%
Sanghi
06
12%
6%
Total
42
84%
16%
From the above table it can be said that the total unsatisfied
consumers of TATA cement is more as compared to Ultratech cement
i.e. in the ratio of 2:1. Total 4% of the consumers are unsatisfied due to
the high price of the Tata cement from the 50 consumers surveyed.
And thus as compared to Ultra tech cement Tata cement has more
unsatisfied customers but with compared to other brands like Sidhee
and Sanghi cement they have less unsatisfied customers.
7)
Would you switch over to other brand? If you will then, which
brand would you prefer? Why?
Brand
Name
Tata
No. Of Consumer
No
Yes
15
1
54
Percentage (%)
No
Yes
30%
2%
Ultra tech
12
24%
2%
Sidhee
09
18%
4%
Sanghi
07
14%
6%
From the above data obtained, it can be said that Tata And
Ultratech cement only has the more number of the brand loyal
but over here Tata cement is one step ahead in case of brand
loyalty as compared to Ultratech, it can been seen that out of 15
consumers only one is ready to switch over to the another brand
in case of Tata cement and in case of Ultratech out of 12 only 1 is
ready to shift towards another brand thus as compared to other
brands Tata cement enjoys the first position over here.
8) How do you rate the performance of Tata cement?
Chart:
60%
48%
50%
40%
32%
30%
20%
20%
10%
0%
0%
Very Good
Good
Average
Poor
Ratings
From the above graph, it can be said that there are 20% of
average markings and 48% of Markings at good level. In order to
55
convert these markings at very good level Tata cement has to travel a
long journey and has to beat the competitors. And it seems very good
for Tata cement that no one out of 50 customers has ranked Tata cement
at poor level.
9) According to you which factor are most responsible for the
success of Tata cement?
From the survey, we can say that 56% of consumers say that
because of quality Tata has success in cement market and 44% of
consumers say that because of brand name Tata has success in cement
market and Tata cement has good brand name and image in the market.
No other factors are given importance for the success of the Tata
Cement by customers.
10)
Brand Name
No. of Dealers
Percentage (%)
Tata
12
24%
56
Sidhee
08
16%
Ultra tech
12
24%
Ambuja
10
20%
Others
08
16%
Total
50
100%
From the above table, it can be said that Tata Company has
wide spread distributional channel as compared to others in the case of
cement. Out of total 20 dealers surveyed 24% of them sales Tata
cement and apart from Tata cement they also sale other brands with it.
As seen from table out of 20 dealers Sidhee, Ambuja and Other local
brands are kept by very few dealers i.e. 16%, 20% and 16%
respectively which seems to have less dealership as compared to Tata
and Ultratech.
2) Since how long have you been the dealer of this company?
Table:
57
Brand
Name/
Years
Tata
Sidhee
05
5 10
10 15
Above 15
Total
12
11
From the above table it is clear that, Tata Cement dealers are
the most experienced dealers in the cement dealings, at least 8 out of
the 12 dealers have experience of 5 to 10 years in this field, which can
be regarded as a valuable experience. No other brands have these
much-experienced dealers. Thus helps Tata cement to be sold more in
the market as they have more selling experience and knows better
techniques.
58
3)
Are you satisfied with the level of support you get from your
Company?
Table:
Brand
Name
No. Of dealers
Percentage
Yes
No
Total
Yes
No
Tata
11
01
12
92%
08%
Sidhee
03
01
04
75%
05%
Ultra tech
11
00
11
100%
Ambuja
05
02
07
71%
29%
Others
03
02
05
60%
40%
Chart showing the opinion of dealers regarding their satisfaction with
various brands in the percentage form:
120%
100%
100%
92%
75%
80%
71%
60%
60%
40%
40%
20%
29%
8%
5%
TATA
Sidhee
0%
0%
Ultratech
59
Ambuja
Others
From the above graphs and table it is clear that out of 100%
dealers of Tata who also keeping other brands with them like Ambuja,
Ultra tech, Sidhee and various others, only 8% of the dealers are not
satisfied with the Tata cement as in the sales of the Tata cement their
profit margin is less as compared to other brands. But the persons
dealing in Ultra tech is 100% satisfied as they get better amount of
profit margin over here and also benefit of various dealerships level
schemes. But as compared to other brands like Sidhee and Ambuja
cement over here the dealers are more satisfied.
4)
Would you like to change the dealership within next five to six?
Years?
Table:
Brand
Name
No. of dealers
Yes
No
Tata
12
Sidhee
03
Ambuja
07
Ultra tech
11
Others
02
03
5)
Table:
Factors
Rank
Price
Quality
Availability
Brand
Dealers
Vote
Percent
(%)
Dealers
Vote
Percent
(%)
1st
11
55%
25%
10%
10%
2nd
25%
10
50%
15%
10%
3rd
10%
15%
30%
45%
4th
10%
10%
45%
35%
Total
20
100
20
100
20
100
20
100
From the above table, it can be said that the 1 st priority while
purchasing cement is given to price by customers (according to
dealers), as 55% of the dealers vote for price in priority level followed
by quality, Brand and then by Availability. This says that while
manufacturing cement the first aspect that should be kept in mind is
price and quality of cement, which should be within the boundaries of
customers expectations as first and second preference, is given to them
61
How much is your total yearly sales? How much is your yearly
sales of Tata cement (excluding other brands)?
Chart showing sales of different brands:
50
40%
43%
Sales
40
30
17%
20
10
0
TATA
Ultratech
Others
Brands
62
8)
Rank
criteria
Tata
Ultra
tech
Ambuja
Sidhee
Others
1st
2nd
3rd
4th
5th
6
9
4
1
-
10
5
4
1
-
3
4
9
3
1
1
1
2
10
6
1
1
5
13
Others
14
No. of Votes
12
10
Ultratech
Tata
Ambuja
2nd
3rd
Sidhee
8
6
4
2
0
1st
4th
5th
Ranks
63
9)
10)
Your Suggestions,
64
SWOT
Analysis
65
SWOT Analysis
1)
2)
Strength:
Weakness:
66
3)
Opportunities:
Tata chemicals Ltd. has a wider market to cover as a
part of international market in the field of cement. Though
these products are exported to many countries, still there is a
wider area to cover. And there are many opportunities like
this way to receive many awards for excellence in their work.
4)
Threats:
Tata Company doesnt have much threat in the market
as competitors as less right now in such market. But it does
have treats from the giant like Ultratech who is its main
competitor in cement market. And also with the changing rules
of government and its policies. As looked over from
international market point of view, every company has threats
from foreign industries, rules followed in that particular
company and thereby customers acceptance of their product in
that particular country.
67
Suggestions
68
Conclusion
69
Bibliography
70