Cement Brand Sales Analysis in Chennai
Cement Brand Sales Analysis in Chennai
Sri. S. Suriya
2 Year MBA, Department of Management Studies, SRM Valliammai Engineering College, Kattankulathur.
nd
The study “A Comparison of Different Cement brand performance among the shop sellers were been analyzed by marketing
with special reference to “A” (Dalmia, Ramco, Coromandel, UltraTech) Brands in Chennai and Thiruvallur District” is been
focused on the sales marketing activities which enhance the marketing activity in day to day changes in cement industry and it
will help me in the focus of marketing activities and the promotion activities which is been carried out to reach to the consumers
and making an intension to purchase the product of the “A” Brand cements which is been analyzed in Chennai and Thiruvallur
District and it help to reach the knowledge of marketing area and key areas activities in Cement Industry.
Keywords: Cement Industry, A Brands Cements, Sales Performance.
INTRODUCTION
The Cement Market is day by day grooming and flexible running market. In Chennai and Thiruvallur District, there are nearly 4000
Cement shops, and the market of cement will be differing from one region to another region in means of A, B, Andhra Pradesh
(AP) Brand Cements. The cement brand performance is been evaluated by the monthly movement of cement in Individual Shops
in area wise region, shop sellers are been selling the cements according to the requirement of the consumers and Assorted cement
brands sales performance among the shop sellers– a group level analysis in the context with chennai and tiruvallur districts are
been involving in sales of Different Cement Brand in according to the Market Condition and the requirement
Cement where been classified in means of
●● OPC (Ordinary Portland Cement)
●● PPC (Portland Pozzolana Cement)
●● SLAG (Hydraulic)
●● Composite Cement
Marketing in Cement Industry is been playing a major role in promoting of cement brands to reach the end consumers by
means of shop sellers to sell their cement in market. The brand preference is been selected in the form of Quality Based & Cost
based of brand performance
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Sales Promotion Activities sales promotion is any undertaking by an organization designed to increase sales or encourage the
use or trial of a product or service. Sales promotions take many different forms, but they all focus on persuading a target audience
to make a purchase or become a client of a business.
●● A
ssorted cement brands sales performance among the shop sellers– a group level analysis in the context with chennai
and tiruvallur districts.
●● To analyse the market and Study about the marketing techniques to be carried out while involving in Sales Marketing.
●● To earth out the reasons for choosing the assorted brand
●● To find out which factors contribute to choose particular brand
●● To analyse the seller preferential behaviour
●● To find out the sales of cement in which category is more whereas A Brand.
●● To identify the Shop Sellers perception on selecting the Dalmia brand to sale on their shop
●● Facing difficulties in taking the product to retailers by delivering the product features
●● To get survey in market from the shop owners on their busy schedule
●● To get the details in collecting through questionnaire method by giving questionnaire form to collect it
Prasad Sangameshwaran (2009) has studied the importance of branding the cement. Industry analysis felt that branding
efforts have been initiated due to the cluster. The large media spends has influenced the increased visibility for the brand. Cement
has always been loyal to the door media, walls and hoardings. He spelled out measures as to why branding becomes important
for cement players today. In nature cement manufactures sell their products close to the area of manufacturing. Finally he pointed
out that to stand out I the cluster, branding would naturally help.
Rajamohan S. and Vijayaragavan T. (2008) have conducted a study on the marketing performance of Madras Cements
limited. In order to analyse the comparative production performance of Madras cements limited and all cements units in India,
Mann –Whitney U test was applied. The results of analysis indicated that the production performance of selected unit was equal
to production performance of all other cement units in India.
T. Siddharth Mahajan and [Link] Sarkar (2007) in their study has made as attempt to compare the marketing position
of three Indian companies , Ramco, Sankar, Chettinand .The study indicated that the MNC’s are more efficient in utilizing their
assets to generate profits. However the marketing facility of the Indian companies was about Ten times than that of the MNC’s.
This was because the Indian companies used much less marketing than that of the MNC’s.
Pradosh Nath and P.R. Bose (2002) have attempted to study about Indian Cement industry in the context of globalization and
liberalization and have argued that there is a limit to leveraging liberalization. In their article ‘Leveraging liberalization - The case
study of Indian cement industry’, have argued that both the developed, developing alike globalization/liberalization continued
to be the most debated economic and political issue of the past couple of decades. Both theoretical and empirical articulations
of globalization in recent decades have dampened the enthusiasts a bit and strengthen the voice of dissent. They argued that
both capacity and production in cement industry in India were doubled by 1990’s. This achievement can be attributed to the
technology up gradation drive taken up from 1984. They also prove that Indian cement industry could not capitalize on its early
advantage over late entrance like Thailand, Indonesia and China
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UGC Care Listed Journal Vol-40-Issue 59-(2020)
Susmita Das Gupta (2002) in his discussion paper, ‘Globalization and cement industry’, argue that threat of MNC’s is not a
sufficient cause to assign to the decline f cement industry. But it is because of weakening of rupee vis-a-vis the dollar. According
to the author the fact that Indian companies are unable to sell across to the developed countries is because they lack the right
networking and trading arrangements. Globalization is more a matter of adequate networking as it is a matter of technology and
pricing. Thus, the role of globalization is highlighted in achieving a good performance in cement industry in India. Finally the
author suggested to keep liberalization alive without globalization.
Sharma, P.V, Y.V Apparao (1990) in their article titled ‘Indian Cement industry - Regional Analysis’, explained about the
determents of location of cement factories, growth of cement industry and efficiency of cement industry in India with reference to
different regions. According to them location of cement factories depends on factors such as, a) proximity to limestone deposits,
b) nearness of steel plants, thermal power plants etc, procuring of supplementary raw materials like granulated blast furnace,
slag and fly ash, c) proximity to sources of coal and gypsum, d)availability of uninterrupted power at lower costs, e) connection
to the railway transport and f) nearness to the cement consuming centres. In this empirical analysis it is found that the growth of
cement industry in all India and in the selected state reveals that the industry has achieved considerable progress in all India and
in the state of Madhya Pradesh, Andhra Pradesh and Tamil Nadu. Further increasing capital use reflects the process of substitution
of capital for labour in Indian cement industry.. It is further found that the overall efficiency has been found to be increased
in Andhra Pradesh, Gujarat, Madhya Pradesh, Tamil Nadu indicating better productivity performance and decreased in Bihar
indicating poor productivity performance. However, it is found to be stable in the cement industry in all India.
Seref Saygili and Erol Taymaz(2002), have examined on assumption that privatization is pressed as a necessary condition
for the creation of ‘free market economy’ in which private firms, free from arbitrary political intervention, supply producers
and services efficiently. The study reveals that: 1 Private plants are most necessary, more efficient than state governed plants.
Some owned plants as efficient as private plants. Efficiency differences among state owned plants, efficiency differences among
state owned plants explained by their /Geographical location by the size of the regional markets they aim to serve. 2 There is no
evidence to support the hypothesis that privatization improves technical efficiency
RESEARCH METHODOLOGY
The Research Methodology in the topic of “Assorted cement brands sales performance among the shop sellers– a group level
analysis in the context with Chennai and Tiruvallur Districts., where as the marketing is been the major source of promoting
the products to the shop sellers. Research Methodology is a set of various methods to be followed for gathering information
regarding the marketing strategic situation on comparing with assorted brands and other questionnaire. Research methodology is
been used to acquire the data’s of cement moving in retail shops in Chennai and Thiruvallur District.
AREA OF STUDY
The Study is purely carried out in the area of Sales, it is process required with communicating with different shop sellers from the
region of Gummudipondi taluk Madarpakkam to Periyapalayam area which has been area wise marketing and collection of data.
RESEARCH TYPE
The Nature of Research design is purely carried out by Descriptive Method where the data’s are been collected by questionnaire,
where as the process which is been carried out by marketing as well as the data collection is been collected from the retail shop
owners by word of mouth with the prescribed formed questionnaire
SAMPLE DESIGN
The sample size of the topic “Assorted cement brands sales performance among the shop sellers– a group level analysis in the
context with chennai and tiruvallur districts. The data is been collected from 120 respondents in different parts of centre in
Chennai and Thiruvallur District.
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UGC Care Listed Journal Vol-40-Issue 59-(2020)
INSTRUMENTS USED
The Researcher used the SPSS (Statistical Package for Social Science) tool where data’s are been computed and it is been
analysed in Mann-whitney U test, Kruskal wallis test, Correlation analysis and regression analysis.
QUESTIONNAIRE DESIGN
The Questionnaires method for collecting the data where as the set of different questions were been framed on comfortable on
collecting the data’s with the shop sellers. It results in standardized results which can be tabulated and calculated.
It is preferred an open ended questions in the questionnaire without any options were been provided to the questionnaire.
This method is been chosen because of the data analysis will be carried out by questionnaire for the marketing department,
as well as to make a survey on the respondents answers. As the data is been collected in questionnaire but the respondents are
giving the answers or views in the form of word of mouth because of different limitations were been analysed and checked in
SPSS Software
TARGET RESPONDENTS
The researcher found that the census method, where as the research focused on 120 peoples as there respondents to collect the
survey, thus the 120 respondents were of cement shop owners which is been located in different parts of places in Chennai &
Thiruvallur District.
Sampling
Cluster sampling is a sampling plan used when mutually homogeneous yet internally heterogeneous groupings are evident
in a statistical population. It is often used in marketing research. In this sampling plan, the total population is divided into these
groups and a simple random sample of the groups is selected.
STATISTICAL ANALYSIS
●● Mann-Whitney U Test
●● Kruskal Wallis Test
●● Correlations analysis
●● Regression Analysis
MANN-WHITNEY U TEST: H1
H0: There is no identical difference between counter type of shops and the Ranking For Various “A” Brand Cements
H1: There is a identical difference between identical difference between counter type of shops and Ranking For Various “A”
Brand Cements
Ranks
N Mean Rank Sum of Ranks
Dealer 13 75.42 980.50
Ranking For Various “A”
Sub dealer 107 58.69 6279.50
Brand Cements
Total 120
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Interpretation: The tabulated value of P- Value (0.079) is greater than the Significance value (0.05), So we accept H0. Hence
there is a significance relationship between counter type (Dealer & Sub Dealer) and the respondents who ranked the Various “A”
Brand Cements and the factor influences sales department.
And the Mann Whitney U test says that in the Dealer are having the mean rank of 75.42 and it is lesser than the Sub Dealers
in counter type as the mean value of Sub Dealers is 55.69. Hence the top management should have more concentration on the
Dealers to purchase the Various “A” Brand Cements
MANN-WHITNEY TEST: H2
H2: There is an identical difference between the brands which has higher market and segment of the shops.
Ranks
Segment of your N Mean Sum of Ranks
shop Rank
Which Brands Does Wholesaler 4 79.50 318.00
Have A Higher Retailer 116 59.84 6942.00
Market Total 120
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Interpretation: The tabulated value of P- Value (0.171) is greater than the Significance value (0.05), so we accept the
Hypothesis H1. Hence there is a significance relationship between segment and the brands which have higher market in Chennai
and Thiruvallur District
And the Mann Whitney U test says that in the segment of the shop are having the mean rank of 79.50 and the segment of the
shop are having then lesser mean rank of 59.84.
H3: There is statistically significant difference between the where the product is been purchases from and the period of days
that the need for the credit.
Ranks
Where The Product Is N Mean Rank
Been Purchased
Direct from company 5 63.70
How Much Days Do You Wholesaler & retailer 114 60.83
Have Need Credit C&F agent 1 7.00
Total 120
Test Statisticsa,b
How Much Days Do You Have Need
Credit
Chi-Square 2.822
Df 2
Asymp. Sig. .244
a. Kruskal Wallis Test
b. Grouping Variable: Where The Product Is Been Purchased
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Interpretation: The mean Rank of the where the product is been purchases from the company or wholesaler or C&F Agents
and the period of days that the need for the credit.
A Kruskal-Wallis H Test showed that there was a statistically significant difference in Satisfaction level for the conflict
resolving procedure adopted by the firm between the different educational groups.χ2=2.822, p=0.244 with a mean rank Satisfaction
level of 63.70 for Direct from the company, 60.83 for wholesaler and the retailer.
CORRELATION ANALYSIS-H4
H4: To determine that there is a significance relationships between what are the “A” brands that do you have for sale and what is
the total volume in sales per month in your shop.
Bootstrap Specifications
Sampling Method Simple
Number of Samples 120
Confidence Interval Level 95.0%
Confidence Interval Type Percentile
Descriptive Statistics
Statistic Bootstrapa
Bias Std. 95% Confidence
Error Interval
Lower Upper
Mean 7.59 .03 .37 6.88 8.37
What are the “A” brands S t d .
4.129 -.039 .236 3.560 4.546
do you have for sale Deviation
N 120 0 0 120 120
Mean 2.90 .02 .25 2.47 3.51
What is the total volume in S t d .
2.952 -.234 1.337 .951 5.536
sales per month Deviation
N 120 0 0 120 120
a. Unless otherwise noted, bootstrap results are based on 120 bootstrap samples
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Correlations
What are the What is the
“A” brands do total volume
you have for in sales per
sale month
Pearson Correlation 1 .025
Sig. (2-tailed) .787
N 120 120
What are the “A” brands
Bias 0 -.026
do you have for sale
Std. Error 0 .076
Bootstrapc
95% Confidence Lower 1 -.179
Interval Upper 1 .102
Pearson Correlation .025 1
Sig. (2-tailed) .787
N 120 120
What is the total volume
Bias -.026 0
in sales per month
Std. Error .076 0
Bootstrapc
95% Confidence Lower -.179 1
Interval Upper .102 1
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
c. Unless otherwise noted, bootstrap results are based on 120 bootstrap samples
Interpretation: A Pearson Product moment correlation was run to determine the relationship between the effectiveness in
(r=0.787., n=120, p=0.000) There is Positive Relationship maintaining among the variables.
CORRELATION ANALYSIS-H5
H5: To determine that there is a significance difference between different shops were been located in different district and the
present market conditions for the cement industry.
Bootstrap Specifications
Sampling Method Simple
Number of Samples 120
Confidence Interval Level 95.0%
Confidence Interval Type Percentile
Descriptive Statistics
Statistic Bootstrapa
Bias Std. Error 95% Confidence Interval
Lower Upper
Mean 1.43 .00 .05 1.33 1.52
S t d .
District .496 -.002 .008 .473 .502
Deviation
N 120 0 0 120 120
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REGRESSION ANALYSIS: H6
H6: To determine that there is a linear relationship between the Brands Does Have A Higher Market and Present Market Conditions
For The Cement Industry.
Model Summary
Model R R Adjusted Std. Error of Change Statistics
Square R Square the Estimate R Square F Change df1 df2 Sig. F Change
Change
1 .245a .060 .052 .987 .060 7.530 1 118 .007
a. Predictors: (Constant), Present Market Conditions For The Cement Industry
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ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
Regression 7.338 1 7.338 7.530 .007b
1 Residual 114.987 118 .974
Total 122.325 119
a. Dependent Variable: Which Brands Does Have A Higher Market
b. Predictors: (Constant), Present Market Conditions For The Cement Industry
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients T Sig.
B Std. Error Beta
(Constant) 2.974 .501 5.940 .000
Present Market
1
Conditions For The .513 .187 .245 2.744 .007
Cement Industry
a. Dependent Variable: WHCH BRANDS DOES HAVE A HIGHER MARKET
Bootstrap for Coefficients
Model B Bootstrapa
Bias Std. Sig. 95% Confidence Interval
Error (2-tailed) Lower Upper
(Constant) 2.974 -.011 .578 .008 1.631 4.051
1 Present Market
Conditions For The .513 .001 .209 .025 .129 .919
Cement Industry
a. Unless otherwise noted, bootstrap results are based on 120 bootstrap samples
Interpretation: Table B provides the R & R2 Values. The Value R represents the Simple correlation and is 0.513(the “R”
column), which indicates a low degree of correlation. The R2 Value (the “R square column) indicates how much of the total
variation in the dependent variable. In this case, 1% can be explained, which is very low.
Table C indicates that the regression model predicts the variable significantly well. Here, p<0.05, sig=0.000, and indicates
that, overall, the regression model is statistically significantly predicts the outcome variable. To present the regression equation as:
Decision ended up in satisfaction (y) =(2.974+.513)(the opportunity given to the higher officials when the decision is satisfactory)
●● Decrease the price rate for 2 to 3 months for capturing the market.
●● Increases the advertisement activities which the advertisement reaches the consumers soon.
●● T
he Branded Companies has to focus on the cement brands and its rates which is comparisons to all the rate of the
product.
●● To reach the higher market, A Brands want to increase the main dealers and to provide the product rate in constantly.
●● C
ement Companies want to give the product to all the sub dealers’ shops who are ready to purchase from us and to
involve in sales.
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●● B
y increasing of main dealers the A Brands cements, the retailers can purchase the product as soon as possible and
comparative rate which will enhance the business to the marketing.
●● T
he marketing officer want to be ready to deliver the product of A Brands cements for the customers(wholesalers or
retailers) for credit where it is in the case of new shop or old shop which will increase the sales.
●● T
he marketing officers want to enhance customers by creating an new customers for the A Brands cements through
attending all the new or old shops which is been newly started in the markets
●● T
he marketing officers want to go to new shops for visit which will creates an relationship with the customers and
business activities.
CONCLUSION
As the study is concludes with the topic as that the respondents where feels that the “A Brand” is the companies which is for so
many years and it has a high reach of name. Thus the Branded companies were involving in sales promotion activities but it does
not reach an high market or high volume of sales in Chennai and Thiruvallur District and while looking on sales the “A Brand
cements” is comparing to B,C Brands look little much down in the market area due to enhance of new key players in the market
thus the problem where been enhance due to the other “A” Brands were been selling the price as less as comparing to the assorted
brands.
Thus the Marketing team has to concentrate on the area wise peoples wealth and to provide a setup price on the cement
bags till capturing the market were as been feedback of the shop sellers were we are ready to sell any cements but the customers
are focusing on some brands where as C Brands which the price of the bag rate is less comparing to other brands and the India
Cement (coromandel Cement) due to it has reach to the end users and to customers were been registered by their advertisement
activities.
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[3] Sathay Sundram S. Management of Cement Market Survey. In the Journal of Management 2007; l.7:18.
[4] Siddharth Mahajan T, Mainkar Sarkar V. Comparison of Branded Cement Industry in India, the ‘Management
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enkatraman S. The Marketing of Cements, Journal of Marketing Intelligence & Planning 2004; 21(6):370-
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