Page 1
An Overview on the Ready Mix Concrete (RMC) Market-
Research Process and Methodology
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Satge 1 Satge 2 Satge 3 Satge 4 Satge 5 Satge 6 Satge 7
Research Process
Preliminary Research
Scope & Objectives
Establishing key Metrices
Defining overall sample size
Resource allocations
Secondary research Activities
Validation of stage 1,2,3 and primary research activities
Review activities
Brief Presentation
Final conclusions/Recommendations
Execution Methodology
Understand the subject and define the scope & objectives
To find out market potential present in RMC segment and the competitive analysis of
major players of this segment
Objectives
1. Understand the market
2. Understand the different grades of product and its usage
3. Customer Segmentation and purchasing behavior
4. Analyzing the consumers market in specified region in terms of product awareness,
proposed development in vicinity areas etc.
5. Ball park estimation of market potential in given product category for next decade
6. Map the prevailing players profile with respect to plant location, sales, distribution
method, market share etc.
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Stage 1
Ready Mix Concrete (RMC)
Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of cement, sand,
aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or
as per specifications of the customer, at a centrally located batching plant.
Types of RMC
There are three types of RMC depending upon the mixing of the various ingredients as given below :
a) Transit mixed concrete
b) Shrink mixed concrete
c) Central mixed concrete
a) Transit Mixed Concrete
It is also called dry batched concrete because all the basic ingredients including water are charged directly
into the truck mixer. The mixer drum is revolved fast at charging speed during the loading of the material
and after that it continues rotating at a normal agitating speed
b) Shrink Mixed Concrete
The concrete is partially mixed in the plant mixer and then balance mixing is done in the truck mounted
drum mixer during transit time. The amount of mixing in transit
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Stage 1
Overview and Definition
96mixer depends upon the extent of mixing done in the central mixing plant. Tests should be conducted
to establish the requirement of mixing in the drum mixer.
c) Central Mixed Concrete
It is also called ‘central batching plant’ where the concrete is thoroughly mixed before loading into the
truck mixer. Sometimes the plant is also referred as ‘wet-batch or ‘pre-mix plants’.
RMC Benefits
Easier, faster and better quality construction.
Time saving and reduced wastage of raw material
Elimination of storage space for basic materials like aggregates , sand etc at site
Elimination of procurement /hiring of plant and machinery
Labour associated with production of concrete is eliminated.
Organisation at site is more streamlined.
RMC INDUSTR : INDIA : HIGHLIGHTS
• Estimated Annual Concrete Consumption in the country: 165 million cubic metre ( Hindu , June 4 2005)
• India spends 9% of its GDP on infrastructure compared to China which spends close to 30%
• Per capita consumption of cement in India in 2010: 148 kg
• Global Average per capita consumption of cement: 260 kg
• Country is dotted with 140 to 150 commercial RMC units
• Employment to 30000-35000 people directly and around 50000-60000 people indirectly
• RMC industry pegged at 2000-2500 crore growing at around 25-35% over the last 5 years.
• RMC segment churns out an average 28000-30000 cubic metres of concrete every day.
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• L& T, Grasim , ACC , RMC India are major players with pan India presence and market share of 75-80% .
• Schwing Stettar India (SSI) is a 100% subsidiary of Schwing Group of Companies
manufacturing equipment for concrete preparation , transportation , placement and for recycling
concrete.
• Cement consumed by RMC units is currently around 8-10% of the total cement produced in India while
the same is around 60-65% in developed countries( Source : Economy & Business , March 26 , 2006).
Define the research problemSpecify the information required to help react the management problem
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Stage 2
Setting the Research Process
Research design process Categories of research
is concerned with discovering the general nature of the problem & the variables relate to it. It is characterised by a high degree of flexibility and it tends to rely on secondary data, convenience or judgement samples
Exploratory Research
is focused on the accurate description of the variables in the problem model. Consumer profile, market potential studies, sales analysis are examples of this.
Descriptive Research
attempts to specify the nature of the functional relationship two or more variables in the problem model
Casual Research
Estimate the value of the information to be provided by the research
Using either judgement or the expected value approach estimate the value of information with varying levels of accuracy
Determine the data collection methodDetermine whether secondary data, a survey or experimentation will produce
the required data and choose the form of the selected method(s) to use
Select the measurement techniquesDetermine whether and how to use questionnaire attitudes scales,
observation etc.
Select the sampleDetermine who and how many respondents or objects to measure
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This is Exploratory and descriptive type of research
Stage 2
Setting the Research Process-Sampling Techniques & Considerations
Select the analytical approach
Determine the appropriate means of analyzing the data to provide the required information
Evaluate the ethics of the research
Review all the aspect of the research
Specify the time and financial costFor each research approach, estimate time & financial cost and compare to
actual value of information & time
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Stage 3
Secondary Research
In depth secondary research using appropriate database and other secondary sources
•Online journals
•Industrial magazines, texts
•Internal database
•Previous TBT findings
Primary interviews with industry experts, existing players , government officials, Architect , consultant and end users.
•Contact list development
•Discussion guide /Questionnaire
•Discussion data collations & analysis
•Management review of findings & draft report
Also Note: The Methodology will also include several follow-up calls, profiles exchanges, emails, and the
documentation as when required at various stages
Sample Contact List:
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Stage 3
Secondary Research-Preview of contact list and sample questionnaire
Company Name
Location/Address
Contact no.
Contact Person
Designation
Contact no.
Email id
Web address
ACC concrete Ltd
Mumbai
XXXX XXXX XXXX XXXX XXXX XXXX
Sample Questionnaire
Questionnaire will vary different group of respondents
Analysis, Findings
Y 07-08 Y 08-09 Y 09-10 Y 11-12
Demand of cement NaN 100 200 300 400
Demand of RMC NaN 17 45 68 112
Potential Of RMC NaN 24 65 93 174
25
75
125
175
225
275
325
375
425
Demand estimation Actual vs PotentialVo
lum
e
Parameter Details Y 07-08 Y 08-09 Y 09-10 Y 11-12
Demand of cement XXX XXX XXX XXX
Output of Cement XXX XXX XXX XXX
Demand of RMC XXX XXX XXX XXX
Output of Concrete XXX XXX XXX XXX
Net Requirement XXX XXX XXX XXX
Volume Potential XXX XXX XXX XXX
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The parameters and models will be finalized after a mutual discussion
Stage 4, 5, 6
Primary Research
Mid level marketing manager, project manager, production manager on the
topic of Cement Industry & RMC Industry will be interviewed by TBT.
•Participate in their company’s view on the overall construction industry-growth,
Analysis the customer requirements
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Mid level marketing manager, project manager, production manager on the
topic of Cement Industry & RMC Industry will be interviewed by TBT.
•Participate in their company’s view on the overall construction industry-growth,
Analysis the customer requirements
Stage 7
•Define/ re-define product /service based on the concepts ideas on the voice of customer analysis
•Form an Internal & External Cross Functional Team (CFT)
•Product Matrix-Pricing Matrix-Network/Service Mapping-Distribution
•Existing players profile mapping
Cities profiling in terms of demand
.
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•Define/ re-define product /service based on the concepts ideas on the voice of customer analysis
•Form an Internal & External Cross Functional Team (CFT)
•Product Matrix-Pricing Matrix-Network/Service Mapping-Distribution
•Existing players profile mapping
Cities profiling in terms of demand
Each stage of the project will be executed in detail based on specified requirements from the Client after a mutual discussion.
THANK YOU
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