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SHREE CEMENT LTD.

SUMMER TRAINING PROJECT

PROJECT ON

“DEVELOPING MARKETING STRATEGY


FOR
BANGUR CEMENT”

Submitted To: - Submitted By :-


ACKNOWLEDGEMENT

First of all I would like to thank my Institute


“...........................”, ............... for giving me opportunity to do
summer project in Shree Cement Ltd.

Many people have influenced the shape & content of this


project & many supported me through it. I express my sincere
gratitude to Mr Anil Jhanwar (Sr. GM Marketing) for his
invaluable guidance & support throughout the project. He has been
an inspiration & role model for this topic. His guidance & active
support has made it possible to complete the project.

Special thanks to Mr Amit Kaushal, Sr. Manager (Pers &


HR) and Mr. B.L Sharma, AGM (logistic) for inspiring me
throughout the project & providing me necessary information.

Discussions with employees of the organization were


fruitful & gave me a great help in my project. I would like to
express my deepest and sincere gratitude towards all those who
have helped me throughout the project.

I would also like to thank my family for their constant


support & encouragement throughout the project.

Lastly, I would like to thank my Almighty God for always helping


CONTENTS

1. EXECUTIVE SUMMARY

2. COMPANY PROFILE

3. PRODUCT PROFILE

4. SWOT ANALYSIS

5. EXTERNAL ANALYSIS (PESTEL)

6. INTERNAL ANALYSIS (VALUE CHAIN)

7. PORTER’S FIVE FORCES MODEL

8. PORTER’S THREE GENERIC STRATEGIES

9. ANSOFF MATRIX

10. SEGMENTATION, TARGETING &POSITIONING

11. 4 P’S (PRODUCT ,PRICE, PLACE& PROMOTION)

12. CONCLUSIONS

13. RECOMENDATIONS

14. BIBLIOGRAPHY

EXECUTIVE SUMMARY
This project consists of developing marketing strategy for
Bangur Cement. This is one of the three brands of Shree cement
company other two are Shree Ultra Red oxide &Tuff Cemento.
These three brands have different marketing &distribution team.
Positioning &marketing strategy of the three brands differ.

For developing strategy first step is to assess ourselves


through SWOT (Strength Weakness Opportunity & Threat)
analysis. A lot of secondary research was done for it. First external
analysis was done through PESTEL (Political Economical Social
Technological Environmental & Legal).

Then internal analysis was done with the help of value chain
which helped us to find out that competitive advantage we have is
the unique freight bidding system followed by the company.

After assessing the situation where we are we developed


vision, mission, goals & objectives for the company just to answer
these questions that what business we are in? Where we want to
go?
We also did structural analysis through porter’s five force
model to find out industry profitability.

Then we applied three generic strategies to find out


competitive advantage
.
We found out that we are following both cost leadership&
differentiation strategy. Then, I applied Ansoff matrix which gave
us option to follow market development strategy in which we will
enter into new geographical markets & expand our distribution
network.
With consultation of my senior colleagues we did
segmentation, targeting & positioning for the company. Then we
also decided marketing mix for this brand.

I also conducted survey with dealers, retailers to find out


their requirements &consumer preferences for brands of cement.

I came to a conclusion that consumer mostly demanded


Ambuja cement because of its brand identity. Customers had to be
pushed or diverted to buy Bangur Cement.

As positioning of Bangur suggest a premium brand , still


local people don’t believe that quality is good .Hence, emphasis
must be laid on quality improvement so that it becomes par with
positioning.
AN INTROUCTION TO SHREE CEMENT LTD

Its’ august privilege to welcome you to the Shree Cement Ltd


an ISO 9001-2000(Quality Management),ISO 14001- 2004(Env
Mgt),OHSAS 18001(Occupational Health & safety management)
certified company endeavoring for SA-8000. The largest cement
manufacturing plant at a single location in Northern India, under
the flagship of Executive Chairman Shri B. G. Bangur &
Managing Director, Shri H. M. Bangur. The company is aiming for
20 Million Ton Annual productions by the year 2015.

Location of Shree Cement

Nestled amidst & astride the baroness of Aravalies in the


close hustles of strings of rural remote hamlets in the proximity of
village Bangur Nagar on Masuda Road, in central
Rajasthan, satelliting the Beawar city at radius of 4.5

10 Kms. Its geographical continuity with holy 42

shrine of Khwaja Moinudeen Chisti at Ajmer 60


Kms, 195 Kms from the Pink City i.e. Jaipur and
4.8

45

approximately 155 Kms from the Sun City,


Jodhpur and around 235 kms from the Venis of
the east i.e. Udaipur.The nearest airport is Jaipur,
however the Beawar subdivision is well
connected through Rail and Road both, situated
on National Highway No. 8.
The powerful deity Sankat Mochan Hanuman Temple, a
unique example Nagar and Basar Styles is one of the emerging
tourist places in Rajasthan near and around, and an enchanting
peace of architecture in the region.

The company is managed by a core group of professionals


under the visionary and adroit leadership of Executive Director
Shri M.K.Singhi.

Shree Cement limited is one of the most energy efficient


plants in India and is a recipient of National Energy Conservation
awards for consecutive five years by Ministry of Industry
Government of India.

It is also awarded by the prestigious bodies like NCCBM, NEEC,


Bureau of Indian Standards, National Safety Awards, Jawahar Lal
Nehru Memorial Awards etc and is endeavoring for many more
such laurels through its professional excellence.

The commercial Production of Unit I started in the Year


1985. The production augmented exponentially from the capacity
of 0.6 MTPA in 1985 to around 4.8 million ton presently through
Modification, capacity enhancement, continuous improvement and
with the cooperation a professionally committed team of its
employees also putting a few more units.

The second Unit was set up with initial capacity of 1.2


MTPA in 1997 with an investment of Rs.300crores.

A completely petcock based 45 (18+18+06+03) MW


Thermal Power Plant was commissioned in the year 2003, and 54
(18*3) MW thermal Power Plant at Bangur City in RAS Distt.-
Pali.
HYPSOGRAPHICAL DEPICTION OF THE PRODUCTION

A Brief Overview Of The Unit Wise Production


Is Follows:

UNIT-1 at Beawar Distt: Ajmer UNIT-2 at Beawar Distt: Ajmer

Incorporated in 1979. Put-up in 1997.


Put up in 1985. Cement Production– 2.10 million tonnes
Cement Production (Expected) – 1.20
million tones

UNIT 3 at RAS Distt: Pali UNIT - 4 at RAS Distt: Pali


Incorporated in 2005
Cement Production – 1.50 million tones Cement Production – 1.70 million tones

UNIT – 5 & 6 at RAS Distt: Pali Khuskheda Grinding Unit Distt:


Alwar
Cement Production – 1.00 million tones
Each Two grinding units at Kushkhera in
Rajasthan,

Shree has achieved a world record by setting UNIT – 7 at Ras


Distt: Pali in just 367 days with a grinding facility at Suratgarh ,
in Rajasthan.

Production with Efficiency: it has a track record of over 100%


capacity utilization in the eighteenth year of its existence. Against
the national
75-80% industry
CaCO3 average of 84%20-25%
it hasSiO
registered the Ohighest
Al2 O3 + Fe2
record
Chalk,production of 3.02 MT with 116% of
Lime Stone, marl capacity
Clay,
2+
utilization.
Sand, Shale
3

Quarrying
Quarrying

Crushing
Crushing

UPCOMING PROJECTS
Mixing

The Company is also expanding the power generation capacity by


setting up 3nos. of Green Power Plant utilizing waste heat of
Raw Grinding
Cement Plant with the capacity of 18 MW, 15 MW & 10 MW each
and 2no. Of Captive Power Plant of 50 MW capacity at Ras with
an approx. investment ofBurning
595 Crores thus taking the total
to Clinker
investment in new projects is over 1000 Crores.

5-6 % Gypsum Additives


PROJECT NAME EXPECTED
COMPLETION
1.50 MTPA Suratgarh Mar 10
grinding unit
Cement
1.0 MTPA Roorkee Grinding Mar 10
grinding
unit
Roller Press at RAS Jan 10
Roller Press at Beawar FEB 10
Roller Press at Khushkhera JULY 09
Cement

Packing & Transportation


CEMENT

Cement manufacturing

Cement when mixed with water and allowed to set and harden can
joint different components or members together to give a
mechanically strong structure. First of all Joseph Aspdin patented
his product as “PORTLAND CEMENT”.

Cement is basically a mixture of grinded form


of limestone, gypsum and metals such as iron etc . cement is
basically prepared by the following two processes

1. Dry process (pyro- processing)


2. Wet process (hydro processing)

Dry process
In dry process the main raw material limestone first of
all crushed , then it is grounded to fine dust like material then it is
blended with finely grinded iron and coal now this mixture is fed
to kiln inside it the material is burnt at a temperature upto 1600deg
C . At this much high temperature the material turns into molten
forms which on cooling turns to solid lumps known as clinkers
.These clinkers are now grinded with gypsum to prepare cement. In
dry process kilns requires less fuel.
Wet process
In wet process the raw material is same but in this process
we also add water to the raw material to form the slurry of raw
material. It is used less in comparision of dry process as the fuel
requirements in wet process is more than dry process. Wet process
is easiest to control and is better for moist raw materials.

Types of cement

Types of cement Application


Ordinary General construction
Portland cement
(OPC)
Portland slag General construction and marine works
cement
Portland General construction, hydraulic construction &
pozollona marine
cement(PPC)
White Portland Architectural purposes, decorative work and in
cement manufacturing of tiles
Oil well cement Connecting the steel casing to the walls of gas oil
wells at high temp and to seal porous formations in
petroleum industry
Low heat Where low heat of hydration is required as in mass
Portland cement concrete for dams
Super sulphated In a variety of aggressive conditions like marine
cement works. Concrete sewers carrying industrial
effluents
High alumina Mainly as refractory cement and as structural
cement material giving high early strength developments
in cold regions

Raw material for cement


Limestone (calcerous) and clay (argillaceous) are the convectional
raw material basically used in the cement industry.
Sometimes sandstone (siliceous), bauxite (aluminious) and iron
ore(ferruginious) are used as corrective material to maintain
desired composition for potential property of clinker.

Types of raw material


It is known that raw meal feed for cement manufacture
basically

Consists of two components –

1). Calcium carbonate

2). Alumino silicates

Due to depletion of cement grade limestone, it is


necessary to go in, more and more, for byproducts and waste
materials of chemical, metallurgical, coal and other industries as
raw material for cement manufacture.
75-80% CaCO3 20-25% SiO2+ Al2 O3 + Fe2 O3
Chalk, Lime Stone, marl Clay, Sand, Shale

Quarrying
Quarrying
Flow Diagram of Cement Manufacturing Process

Crushing
Crushing

Mixing

Raw Grinding

Burning to Clinker

5-6 % Gypsum Additives

Cement Grinding

Cement

Packing & Transportation


QUALITY CHARACTERSTICS OF CEMENT
The broad quality parameters of cement relate to chemical and
physical properties as per IS codes are as mentioned below:

Chemical Properties
• loss of ignition [LOI]
• insoluble residue [IR]
• sulphur trioxide [SO3]
• magnesium oxide [MgO]
• total chloride [Cl]
• lime saturation factor [LSF]
• alumina modulus [AM]

Physical properties
• Fineness
• Consistency
• Setting time – initial and final
• Soundness
• Compressive strengths (3 days, 7 days, 28 days )
• Heat of hydration
Gradation of cement
The grade of cement is decided on the basis of the pressure
required to break the settled cement :

OPC

a. 33 grade : 330 M Pa
b. 43 grade : 430 Mpa
c. 53 grade : 530 Mpa

In Shree both OPC & PPC cement is manufactured. OPC is now


less in demand its production has gone down from 80% to 40% .
PPC is even encouraged by the government as it consists of 15 –
35 % fly ash by weight which is a waste product of thermal
power plant.

BRANDS OF SHREE CEMENT


AWARDS (07-08)

2007-08 Best Employer Award for Rajasthan for the year 2007
-
2007-08 Golden Peacock Award for Excellence in Corporate Governance in
- manufacturing sector.

2007-08 Second prize for National Energy Conservation by Bureau of


- Energy Efficiency in cement sector for the year 2007.

2007-08 National awards for Excellence in Water Management as “Water


- efficient Unit” by CII, 2007.

2007-08 NCCBM award for Best Improvement Electrical Energy


- Performance during year 2005-06.

2007-08 NCCBM award for Best Improvement in Thermal Energy


- Performance during year 2006-07.

2007-08 NCCBM award for Best environmental excellence in plant


- operation during 2006-07.

2007-08 NCCBM award for 2nd Best Quality excellence during year 2006-
- 07.

2007-08 India Manufacturing Excellence award by Frost and Sullivan for


- the year 2007.

2007-08 9th Golden Peacock Award for Environment Management Award


- 2007.

2007-08 Greentech Environmental Excellence Award 2007.


-
2007-08
Golden Peacock Award for excellence in Corporate Governance.
-

WHAT BUSINESS ARE WE IN AND WHY?


This question focuses on company’s purpose (mission), its
aspiration for future results (vision), and the internal compass that
will guide its actions (values),specific time bound mission (goals) ,
Measurable goals (objectives).

MISSION
To sustain its reputation as most efficient cement manufacturer in
the world, drive down costs through innovative plant practices &
increase awareness of superior product quality through realistic
communication process with the customers.

VISION
To register a strong consumer surplus through superior cement
quality and affordable price.

VALUES
We believe in good corporate governance practices, encourage
integrity of conduct and clarity in communication. We remain
accountable to all stakeholders and encourage socially responsible
Behavior.

GOAL
To increase annual production up to 20 million tons by the year
2015.

OBJECTIVE
Our objective is to achieve 1800 crore profit this year along with
customer satisfaction & society development.

SWOT analysis

Identification of threats and Opportunities in the environment


(External) and strengths and Weaknesses of the firm (Internal) is
the cornerstone of business policy formulation; it is these factors
which determine the course of action to ensure the survival and
growth of the firm.

INTERNAL

STRENGTHS - Things that company does well.

WEAKNESSES - Things that company doesn’t do well.

EXTERNAL

OPPURTUNITIES – External conditions in the environment that


favors strengths.

THREATS – External conditions in the environment that favors


weaknesses.
ETOP analysis
(External threats & opportunities analysis)

GOVERNMENT POLICIES / POLITICAL


1. Removal of import duty on import of raw material for
cement.
2. Govt. lifted ban on exports.
3. Reduction in excise duty.
4. Control on raw material (coal, diesel) price & availability.

ECONOMIC
Demand for cement is closely related to overall economic
development.
1. Cement demand is growing at the rate of 9%.
2. Economy is recovering, with the change of government huge
impetus is given on infrastructural development like roads,
bridges etc.
3. Economic development is leading to increase in public private
partnership & increase in domestic consumption.

SOCIAL
How company contributes to the society / area around which it
operates?
Employment to people of nearby areas & increase their standard
of living.
1. Promotion of local suppliers &contractors.
2. Promoting education, health awareness & hygiene in nearby
areas.
3. Community development & performing corporate social
responsibility.

TECHNOLOGICAL
Use of latest technology to compete with others & become cost
effective.

1. Employees provided with P.C & connected with intranet.


2. ERP / SAP
3. RFID (Radio Frequency Identification Card) based on access
control & remote surveillance.
4. High level mining (limestone) with screening system which
replaced reject ratio from 83:20 to 83:17.

ENVIRONMENTAL
Reduction of green house gases (CO2) etc, emission within limits
& commitment to sustainable development.
1. Use of energy saving device to reduce carbon footprint.
2.
3. CDM (Clean Development Mechanism) project for reduction
of green house gases.
4. Use of alternate fuels & raw materials to help reduce
emissions.
5. Use of special designed vehicles to reduce air pollution &
also conserve water.
6. Emphasis on green belt development in the vicinity.

LEGAL
Legal requirements to be fulfilled by the companies.
1. ISO 14001 , ISO 9000:2000, ISO 8000(OH&S)
2. Various reports to be submitted at the end of financial year
like environmental statement.
3. Legislation should include permits, licenses,
directives,treaties. Protocols & order issued by regulatory
agencies.

OPPORTUNITIES THREATS

1. Cement demand is 1. Acquisitions eg. Holcim


growing at the rate of 9%. (which acquired Ambuja
2. L1 buyer is government in &ACC) which are
which Shree excel. producing quality cement.
3. Per capita consumption in 2. Govt. has lifted duties like
India is only 110 kgs basic custom duty etc on
against world average 255 imported cement which has
kgs. decreased price of
imported cement.(Pakistan
which has excess
capacity.)
3. Risks - slowdown in the
implementation of govt.
policies.
Checklist for Strengths/ Weaknesses:

Competency Performance Importance


Major Minor Neutral Minor Major Hi Med Low
Strength Strength Weaknes Weaknes
A.Marketing
Factors
1) Company Y Y
Reputation
2) Market Y Y
Share
3) Product Y Y
Quality
4) Service Y Y
Quality
5) Pricing Y Y
Efficiency
6)Distributn Y Y
Efficiency
7)Promotionl Y Y
Efficiency
8) SalesForce Y
Efficiency
9) Innovation Y
Efficiency
10)Geogrphic Y
Efficiency
(B) Finance
Factors
1) Cost/ Y Y
Availability
Of Capital
2) Cash Flow Y Y
3) Finance Y Y
Stability

Competency Performance Importance


Major Minor Neutral Major Major Hi Med Low
Strength Strength Weaknes Weaknes
(C)
Manufacturing
Factors
1) Facilities Y
2) Economies Y Y
Of Scales.
3) Work Force Y Y
4) Technical Y Y
Skills
5) Timely Prod. Y Y
(D)
Organizational
Factors
1) Leadership Y Y
Capability.
2) Dedication of Y Y
Employees
3) Y Y
Entrepreneurial
Orientation
4) Flexibility/ Y Y
Responsiveness
To be successful, companies need to develop:
- Core competencies.
- Superior “In-Company” capabilities to evaluate strength &
weakness

“In Company” capabilities achieved through frequent strength/


weakness analysis & action thereon leading to “capabilities based
competitiveness”.

STRENGTHS WEAKNESSES

1. Strong financial muscles 1. Low Brand awareness &


i.e financial back up. Brand identity.
2. Freight Bidding system 2. Competition between in-
which is practiced only in house brands.
this company.(Not only 3. Demand for Bangur
this is a gain to the cement is high but supply
company but is a is not consistent.
transparent system giving 4. Bangur cement still has not
total freight to reached the interior part of
transporters.) the villages.
3. Dedicated employees with
good leadership skills who
constantly give innovative
ideas.
4. Company has won many
international awards &has
high reputation.
INTERNAL ANALYSIS – Identifying core
competencies
 Core competencies must be distinctive.
◦ Capabilities that are done better than competitors
 Identifying core competencies is a key to development of
sound strategy.
 We use the value chain to help identify core competencies.

A framework for identifying core competencies


◦ Inside the firm
◦ In the supply chain
 Can be used to
◦ Identify strengths and weaknesses
◦ Identify sources of competitive advantage
◦ Identify market opportunities

PRIMARY ACTIVITIES IN VALUE CHAIN

 Inbound Logistics
◦ Materials handling, warehousing, inventory control
used to receive, store and disseminate inputs to a
product
◦ Fertilizer and chemical storage, delivery of inputs,
application of inputs
 Operations
◦ Take inputs from inbound logistics and convert to final
products
◦ Plowing, planting, spraying, harvesting, feeding,
medicating, weighing,etc.
 Outbound Logistics
◦ Collecting, Storing, and physical distribution of the
final product.
◦ Crop storage, finished hog handling, Processing and
determining delivery dates, delivery to the packer or
elevator etc.

 Marketing and Sales


◦ Provide means through which customers can purchase
products and to induce them to do so
◦ Advertising, communicating with buyers, developing
customer relationships, pricing products (futures,
hedging, forward contracting, etc.), delivery scheduling
 Service
◦ Activities designed to enhance or maintain a product’s
value
◦ Timely delivery, identity preservation, ISO9000,
certifying as organic, etc.

SUPPORTING ACTIVITIES IN VALUE CHAIN -

 Procurement
◦ Activities to purchase the inputs needed to produce
products
◦ Negotiating with suppliers, standard timing of
replenishing parts and tools, setting up buying groups,
etc.
 Technological Development
◦ Activities that improve the firm’s products and/or
processes
◦ Volunteering for test plots, being a part of feeding
trials, attending technology seminars/field days,
designing equipment to make specific production tasks
more efficient, etc.
 Human Resources
◦ Recruiting, hiring, training, developing, and
compensating all personnel

MARGIN

◦ Capture the value from performing value-creating


activities as cheaply as possible
◦ The basic idea is that the consumer is willing to pay a
certain amount for the value you create. This is depicted
as the size of the overall pentagon.
◦ The size of the individual activity boxes represents the
cost of performing those particular activities.
◦ Thus, the smaller the size of the individual activity
boxes relative to the value the consumer is willing to
pay, the greater the MARGIN will be for the firm.

 A firm’s value chain must be compared to competitors’ value


chains to determine where competitive advantages exist.
 To be a source of competitive advantage a resource or
capability may allow a firm to:
◦ Perform an activity in a manner that is superior to
competitor’s performances
◦ Perform a value-creating activity that competitors
cannot complete
The Value Chain
Activities-planning, finance,
Firm Infrastructure
MA
accounting, legal ,govt. affairs,
Supporting

quality management .MIS


Human Resource
RG
Management cost of selecting &
Activities

GI
recruiting, training &
IN
development

N R
MA
Technological Development office automation, (erp,)
intranet ,GPS ,RFID
Raw material (refractory), machinery,
Procurement lodging ,meal, bidding system

Inbound Outbound Marketng SERVICE


Operations Logistics & sales
Logistics Meeting
(mason)
Machinery, Manufactrng order (dealer)
Activities

refractory, process, processing Advertisg (retailer)


Primary

coke, packaging, Scheduling


warehousg, testing Dispatching
storage, Pricing
Finished
vehicle goods
scheduling warehousing promotn
Relationship with Suppliers Relationship with Buyers

Elapsed Time - Value added time cost


PORTER’S FIVE FORCES MODEL
According to Michael Porter, competitiveness is a composite
of following five forces:
1. Rivalry among competing firms
2. Potential entry of new competitors
3. Potential development of substitute products
4. Bargaining power of suppliers
5. Bargaining power of consumers.

These five forces pin-point those factors that are critical to


competition, for strategic innovation, capacity utilization &
profitability.