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SUMMER TRAINING REPORT
on
J.K. White Cement Works
Understanding Institutional Sales of J.K. Wall Putty and Analyzing the Complete Procedure
Submitted in partial fulfillment of the requirements of
Post Graduate Diploma in Business Management
Company’s Guide Faculty Guide
Mr. Manoj Sharma Prof. Prithvi Yadav (Manager Business Development) Director GHS-IMR
by
Tarun Nigam
Roll No : 0955670042
Undertaking
This is hereby stated that this report is very original in every sense of the term and it carries a sense of creditability and strength and that I have taken no shortcuts and remained both rigorous and scholarly.
I have tried my best to keep this work as watertight and squeaky clean as possible.
It may be further stated here that in the preparation of this report and projects undertaken some aid has been taken from a pool of professionally shared knowledge, a detailed description of which has been mentioned in the bibliography section of this report.
Dated _09.07.2010_________Kanpur.
Signature Tarun Nigam
Acknowledgements
The project as it stands today is the sincere contributions of a few spirited individuals and the help of some of my friends. I take this opportunity to express my sincere gratitude to my mentor Dr. Prithvi Yadav for his outstanding and undeniable considerations, Mr.Suneel Gupta, Head of Summer Internship Programme for providing me the opportunity to work with one of the most prestigious organization.
I am sincerely indebted to Mr. Vikram Handoo, Director of J.K. White Cement Works ,my special thanks to Mr. Manoj Sharma, Manager Business Development (my company guide), Ms. Harshita Agarwal, HR Manager for their valuable suggestion, constant encouragement, silent support & unwavering confidence, without which this project would not have been possible. It was they who motivated for this cause (to do something entirely new) and always was present with their expert guidance and disciplined ideas.
I also thank my team members and all the staff members for giving me a congenial environment to work in.
I would also like to thank all my friends who have bore with me during this project, apart from that, those who have helped up in some way or the other. Last but not the least I would like to extend my heartfelt thanks to my parent, who were with me when I was some expensive about the project. Their help and encouragement also proved to be a handful.
- Tarun Nigam
Executive Summary
The purpose of this report is to literally act as a window to the projects undertaken as a part of the Summer Internship with the Organization J.K. White Cement Works that aims to define the breadth depth and scope of the various thinking processes and mechanics that actually synthesized the projects undertaken.
Wall Putty is a new age Product and a replacement of Plaster of Paris (POP). This study was undertaken to gauge the realistic contribution of Wall putty to the surface preparation work and to enhance the scope of market share of Wall Putty in near future.
The Objective of the project that have been assigned as a part of the internship is:
1- To find out the areas in Delhi where maximum construction is taking place.2- Collecting the database regarding the Architects, Contractors, Project Managers,
and Builders in Delhi NCR Region.3- Finding out the Share of POP and Wall Putty that is being used at Institutional
Sites.4- Finding out the Share of Birla and J.K. Wall Putty at the Sites.5- Total Construction area that is happening all around Delhi and the area of Sites
which are at finishing stage where Wall Putty can be applied so that to target those sites.
The survey was conducted in West and North Delhi. For the first five weeks, I used to go to a different area every day, used to find the construction sites and get my questionnaire filled. For the next three weeks I used to go to those Sites which were already visited and got the permission for the sampling of wall putty at the sites which were in finishing stage.
It can be concluded that the survey was conducted in three parts-
1- To find out the information regarding sites.
The first stage of analysis was done to find out the potentials of putty as a substitute to Plaster Of Paris, the buyer’s perception about the product, the awareness level of the User about the benefits of putty, the opportunity for putty at institutional sites.
2- To get the sampling done at the visited sites.
The second stage of analysis was done to find out the key person who takes the decisions regarding the uses of products and to influence his perception regarding Wall Putty.
3- To negotiate with the decision maker of the site to persuade him to use wall putty.
In this stage the Painters were surveyed to find out their perception as the painters are major influencers in the buyer’s decision making process. A few end consumers were also interviewed to find out their attitude and awareness about the product and the different brand offerings.
• Descriptive research was undertaken to fathom the customer’s expectations from
this product and the ability of this product to satisfy the consumer’s stated and
latent needs. In this segment the builders as well the end consumers were
surveyed. The construction sites were surveyed primarily to find out the
requirements of wall putty in different projects.
Data collection was done by personally visiting the respondents at project
sites. Some of the consumer and builder survey was done through telephone as well.
The findings were intriguing. The total market share of plaster of Paris (POP) is
enormous. But this also certifies the opportunity for Putty if it can replace POP from
the market. If putty can penetrate into this market it can make substantial gain from
this in the long run. At present Putty is being primarily used for repairs and patch
works, it is also used on damp prone surfaces to get better strength and durability
because of its excellent water repelling qualities. At the big construction sites the
main reason of not using the putty in place of POP is the undulations and these
undulations can only be covered by POP. The undulations cannot easily be removed
from the surfaces because there are time constraints at big projects. The major chunk
of the total market share is with still PoP but Putty is gaining foothold slowly.
The overall perception about putty is extremely favourable. All respondents felt that
Putty is a far superior product compared to plaster of Paris and they also
acknowledged the benefits derived from it. However, the respondents think that putty
is a costlier product than POP because they only see the product price. They felt that
the price range is a bit too high for ordinary consumers to afford it. But if we combine
all the costs then it is a cheaper and a better product.
Contents
S.No Topics Page No.
1 Cement Industry 1
2 Company Profile 4
3 Financial Profile 7
4 Product & Services 9
5 Competitors 10
6 Project –Introduction 11
7 Objective of Study 12
8 Scope of the study 13
9 Problem Defination 14
10 Research Methodology 15
11 Findings 18
12 Conclusions 24
13 Recommendations 26
14 Limitations 27
15 Bibliography 28
16 Annexure 29
Cement Industry
Fast rising Government Expenditure on Infrastructure sector in India has resulted a higher demand of cement in the country. In the same direction, participation of larger companies in the sector has increased.
For raising efficiency in the sector, the Planning Commission of India in the 10th plan has formed a 'Working Group on Cement Industry'.
With an installed capacity of around 173 million tonnes per annum (mtpa), The Indian cement industry is comprised of 129 large cement plants and 300 mini-cement plants, with installed capacities of 160 mtpa and 13 mtpa respectively. Large cement plants accounted for 93% of the total installed capacity in India. The installed capacity is distributed over across approximately 129 large cement plants owned by around 54 companies.
India is the second largest producer of cement in the world. In 2005, India produced 142 mt of cement, accounting for 6.4% of global production of 2.22 billion tonnes. India is the second largest producer-behind China (1,000 mt), but ahead of the US (99 mt) and Japan (66 mt). India's cement industry-both installed capacity and actual production-has grown significantly over the past three decades, with production increasing at an average rate of 8.1% per year between 1981 and 2004-05.
In India, about 44% of the cement produced is Ordinary Portland Cement (OPC), 47% is Pozzolana Cement (PPC), 8% is Portland Blast Furnace Slag Cement (PBFS), and the remaining 1% are special cements.
The cement industry has witnessed substantial reorganisation of capacities during the last couple of years. Some examples of the consolidation witnessed during the recent past include: Gujarat Ambuja taking a stake of 14% in ACC; Gujarat Ambuja taking over DLF Cements and Modi Cement; India Cement taking over Raasi Cement and Sri Vishnu
Cement; Grasim's acquisition of the cement business of L&T; Indian Rayon's cement division merging with Grasim; Grasim taking over Sri Digvijay Cements; L&T taking over Narmada Cements; ACC taking over IDCOL.
Multinational cement companies have also initiated the acquisition process in the Indian cement market. Swiss cement major Holcim has picked up 14.8% of the promoters stake in Gujarat Ambuja Cements (GACL). In January 2006, Holderind Investments (Holcim Mauritius), an indirect, wholly-owned subsidiary of Holcim, acquired 200 million equity shares of GACL at a price of Rs.105 per share from the promoters. Post-sale, the share of promoters in the company is 9%. Holcim also made an open offer to acquire an additional 20% stake in GACL at Rs. 90.64 per share. Earlier, Holcim had entered into a strategic alliance with GACL, and acquired a 67% controlling stake in Ambuja Cement India. Through this holding company, Holcim acquired a majority in Ambuja Cement Eastern and a substantial stake in ACC. Ambuja Cement India holds a 34% share in ACC and a 97% share in Ambuja Cement Eastern. Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine (capacity of 33.5 mt) and the Aditya Birla group through Grasim Industries and Ultratech Cement (combined capacity of 31.1 mt). Lafarge, the French cement major, had acquired the cement plants of Raymond and Tisco in the recent past, and has an installed capacity of 5 mtpa. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in AP, with a capacity of 3.4 mtpa. Recently, Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement. Heidelberg Cement is expected to take a 50% controlling stake in Indo-Rama's grinding plant of 0.75 mtpa at Raigad in Maharashtra.
Over the years, the share of the public sector in cement production has declined. While the private sector (large companies) accounts for around 95% of the total installed capacity, the share of public sector companies has declined from a level of 11% in FY1996 to around 4.4% in FY2006. The share in production of the public sector companies is even lower at 1.2% in FY2006 as compared to 6.5% in FY1996.
Major Players
As discussed, ACC is the largest player with a capacity of 18.64 mtpa at end-March 2006. UltraTech CemCo Ltd. now occupies the second slot with a capacity of 17 mtpa (which includes 1.5 mtpa of subsidiary Narmada Cement). The Gujarat Ambuja group has emerged as the third largest player with a capacity of 14.86 mtpa. Grasim ranks fourth with a capacity of 14.12 mtpa. Other leading players include India Cements, Jaypee group, Century Textiles, Madras Cements, Lafarge, and Birla Corp.
Major Cement Producing States
Capacity
Types of Cement in India
All Figures are in Percentages
The types of cement in India have increased over the years with the advancement in research, development, and technology. The Indian cement industry is witnessing a boom as a result of which the production of different kinds of cement in India has also increased.
By a fair estimate, there are around 11 different types of cement that are being produced in India. The production of all these cement varieties is according to the specifications of the BIS.
Some of the various types of cement produced in India are:
Clinker Cement Ordinary Portland Cement
Portland Blast Furnace Slag Cement
Portland Pozzolana Cement
Rapid Hardening Portland Cement
Oil Well Cement
White Cement
Sulphate Resisting Portland Cement
Company Profile - J.K. Cement Ltd.
Chairman- Dr. Gaur Hari Singhania
MD & CEO- Mr. Yadupati Singhania
J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala Kamlapat Singhania. The J.K. Organization is an association of industrial and commercial companies and has operations in a broad number of industries.
Its cement operations commenced commercial production in May 1975 at our first plant at Nimbahera in the state of Rajasthan. The aggregate capacity at Nimbahera is 2.8 million tons as of September 30, 2005. It commissioned a second grey cement plant at our Mangrol plant in 2001. As of September 30, 2005, it had an aggregate production capacity of 3.55 million tons per annum of grey cement. Its white cement plant was completed in 1984 with a capacity of 50,000 tons. Our continuing modifications to the plant have increased its production capacity to 300,000 tons as of September 30, 2005.
J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. We are also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys
demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, UAE and Nepal.
Management Phylosophy
Customer Satisfaction Always invest in Latest Technology
Huge Distribution Network Creation
Expansion through Balancing Equipment
Constant focus on Cost Control & Quality
Invest in Managers & Develop People Skills
Stability of Executive Management & Low Employee turnover Social Welfare - A Priority
Strengths Leading position in attractive Northern India grey cement market
One of the Leading white cement producer in India
Proximity and access to large reserves of high quality limestone
Quality of products and strong brand name
Extensive marketing and distribution network
Experience and technical know-how
PlantsIt manufacture grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India. White cement is produced at our facility at Gotan in the state of Rajasthan.
PRODUCTION (IN METRIC TONS)
Fiscal 2003
Fiscal 2004
Fiscal 2005
Six months ended
September 30, 2005
Nimbahera 2,323,283 2,272,760 2,414,196 1,256,942
Mangrol 570,464 718,572 912,419 493,211
Gotan 200,149 215,538 224,481 99,343
Production Process
Achievements
1944: First in India to produce Aluminum virgin metal from Indian Bauxite. The company was nationalized in 1973.
1949 : First in India to manuL1cture Steel Engineering Files.
1969 : First to manufacture Acrylic Fibers in India.
1977 : First to produce steel belted radial treys for passenger car, trucks and buses in India.
1980 : First in the world to make steel belted radial tyres for 3 wheeler
1984 : First to produce white cement in India using dry processed technology.
GROWTH CHART OF JK CEMENT LIMITED-
Financial Profile of Company
The Financial highlights of the Company are as under;
PARTICULARS 2006-07 2005-06
Gross Turnover 152966.52 110867.84
Profit before depreciation and tax
30513.99 8322.76
Less: Depreciation 3315.77 3101.83
Profi t Before Tax 27198.20 5220.93
Provision for Tax
Fringe Benefit Tax 200.00 150.00
Current Tax 7045.85 434.00
Deferred Tax 2152.14 1380.00
Profi t After Tax 17800.21 3256.93
Add: Balance brought forward from the previous year
694.30 633.39
Less: Transfer to General Reserve
10000.00 2000.00
Less: Proposed Dividend on Equity Shares (including tax thereon)
2863.52 1196.02
Balance to be carried forward
5630.99 694.30
Overall performance
The Company during the year 2006-07 recorded growth on all the fronts. Its gross turnover increased by 38%. The operating profi t rose to Rs.339.9 crores from Rs.136.9 crores in 2005-06. Earnings per share increased by 301 % to Rs.25.57 (Previous year Rs.6.37).
During the year the Company has aquired the entire shareholding of Jaykaycem Ltd.
It recommended the dividend @ Rs.3.50 per share on Equity Shares for the financial year ended 31.3.2007(previous year Rs. 1.50 per share).
The production of Grey cement at Nimbahera and Mangrol plants was higher at 3.64 million tons compared to 3.51 million tons in the previous year.
The production of white cement at 248880 M.T. during the year against 226729 M.T. in 2005-06 recorded growth. This was mainly on account of robust growth of around 65% recorded in export volumes (37294 tons vs. 22472 tons). The growth in domestic market(including Nepal) was 3.59%. Increased market of value added products mainly wall putty also contributed to additional profits. of 9.77%.
Finance
a) During the year 2006-07 Company raised Term Loan of Rs.37.5 crores from Allahabad Bank, to part fi nance the acquisition of assets of Nihon Nirmaan Ltd., Gotan.
b) During the year Company has been sanctioned enhancement in Working Capital Facility (both funded and non-funded) to Rs. 105 crores from Rs.65 crores.
Products and Services
Grey Cement
1- Ordinary Portland Cement (“OPC”)
OPC has three principal grades that are differentiated by their compressive strengths, and consist of 53-grade, 43-grade and 33-grade OPC
2- Portland Pozzolana Cement (“PPC”)
White Cement
1- Terrazzo Flooring
2- Mosaic Tiles3- Cement Paint4- Sand Face Spray Plaster5- Exposed Aggregate Plaster6- White Wash with White Cement7- Coloured Pavement Block8- Precast Cladding Panels 9- Ornamental Articles10- GRC Components
J.K. Wall Putty
White cement based putty for luxurious and silky interior/exterior finish
Water Proof
It’s a water repellent material.
Competitors
Putty was first introduced by Birla as a cement based solution for curing the wall. The
introduction in the market stimulated good response and triggered competitors to foray in
the same market.
Two types of wall puttees are available in the market—White Cement Based and Acrylic
Based. Since both are substitutable the market competition gets stiffer.
The competition is stiff with players not only from the White Cement Industry, Birla, but
also from the Paint industry like, Asian acrylic, Nerolac, Berger, ICI, Sika etc. Some
local players like Seacem etc are also in the fray.
The fight for market share in this segment is fuelled by unparalleled competition from not
only major brand offerings but from cross segment commodities like POP.
The main competitor of J.K. Wall Putty is Birla Wall Putty, because it is the only White
Cement based Putty available in the market.
Birla wall putty was the first white cement based wall putty to be launched in the market and till now it is clearly enjoying the first mover advantage by grabbing the highest chunk of the putty market. However, Birla has failed to grow itself as a substitute of the Plaster Of Paris and create a niche for itself.
Birla White Cement is the premier flagship brand of Grasim Industries Limited( White Cement Division), established in 1988, in technological association with Onoda Engineering and consulting Japan, Its initial capacity was 80000 tons per annum, In response to increasing demand, a second unit was added with technology. Today the company has an established capacity of 400 thousand tonnes per annum. Without doubt making, Its India’s largest white Cement Company.
Products Birla White Cement Birla Wall Care Putty Birla White textura Birla White Kool and seal Birla White GRC
Birla has the first mover advantage followed by JK in the White cement based putty
segment and Asian and Berger are at loggerheads in the acrylic based segment.
The Project- Introduction
The cement Industry consumers are segmented on the basis of the uses of cement in to three parts-
1- Retail Consumers2- Institutional Consumers3- B2B (Industrial) Consumers
Retail Consumers are those who buy the Products from the Exclusive or Non-exclusive Retail Stores. Retail consumers are basically residential users. The sale per consumer is less in case of retail consumers but the no. Of these consumers is very high.
Institutional consumers are those who use the products for commercial purposes, like- Shopping Malls, Residential Societies, Hotels, Colleges & Institutes, and Govt. Buildings etc.
Industrial consumers are those who use the Products as the inventory to make the final product. Like Tiles manufacturers, Paint companies.
My work was related to the sale of the White Cement based Wall Putty which a replacement of POP. Company is trying to find out how to remove the POP from the market and that is the main motive behind this project.
Title of the study “Understanding Institutional Sales of J.K. Wall Putty and Analyzing the Complete Procedure”
Objectives of study
The objective of the project is almost clear by the name. Understanding Institutional Sales was what that leaded to the database which will help to increase the Institutional sales of the product. The study is taking care of all sort of information regarding Institutional sites and also notifying about the current scenario of the product.
1- To find out the areas in Delhi where maximum construction is taking place.2- Collecting the database regarding the Architects, Contractors, Project Managers,
and Builders in Delhi NCR Region.3- Finding out the Share of POP and Wall Putty that is being used at Institutional
Sites.4- Finding out the Share of Birla and J.K. Wall Putty at the Sites.5- Total Construction area that is happening all around Delhi and the area of Sites
which are at finishing stage where Wall Putty can be applied so that to target those sites.
Since putty is a relatively new offering in the market and is not much hyped by the
market forces, the general awareness level of consumers about Putty had to be gauged as
well.
One of the most important objectives was to find out the competitiveness of J.K. Wall
Putty. Therefore one of the main aims was to measure the unique advantages that J.K.
Wall Putty has over its competitor Birla white and Plaster of Paris.
The consumer decision making process is indeed a very complex process involving many
factors. In the cement sector this decision making process becomes even more complex
due to the involvement of middlemen like,
Architects
Paint contractors
Builders
Owners
Consultants
Project managers
Hence, finding out the major influencers in the consumer decision making process was
very important.
SCOPE OF THE STUDY
The project has great scope because any company in this sector need to understand the perception of the customers regarding its product and need to know how to influence their buying behaviour. To do that company require all the information regarding its customers. Such projects can really help while Segmenting, Targeting, and positioning the marketing strategies. After the project findings the company can decide which consumers to target- Institutional, Retail, or Industrial.
J.K. White cement is trying to grab the opportunity by replacing the POP from the market. For this reason it was imperative to gather maximum data and information from live projects that are taking place in Delhi region to get the real situation of the market in the Institutional segment.
The first step was to prepare the database of west and north Delhi. The focus was to cover Institutional sites in the appropriate time frame, which should include every big project.
Scope of further Research
In future when such researches are needed to be carried out, care should be taken to
ensure that the sample size is big enough to produce some viable results. The people who
are to be interviewed have a prior knowledge about the product and are in position to
comment on the issue. The people being interviewed have ample time to devote towards
the questionnaire so as to give constructive suggestions on the matter being discussed.
After the implementation of the project findings another detailed research can be
carried out to find out the response of the market to JK Wall putty and based on the
consumer’s perception and expectations new policies can be formulated.
The Problem definition
The putty market is still a nascent one. It is in the growth stage of its product life cycle.
The product was first brought into market by Birla followed by JK and others. Berger was
a late entrant into this segment.
Product Life Cycle Curve of Wall Putty
It is a much more superior product than the Plaster of Paris but has been by and large
unable to instigate the customers to shift from Plaster of Paris to putty.
There is a limitation of Wall Putty, i.e. it can’t be applied to more than 1.5-2 mm. And POP can be applied up to 12 mm. Company is investing a lot of money on R&D to overcome this limitation so that to remove POP completely from the market.
Research Methodology
Type of Research-
We have conducted descriptive research through surveys and collected data through Personal Interviews and Formal Questionnaire.
Sampling
For any research to be effective, useful and relevant the sample population to be surveyed
needs to be determined very carefully keeping in mind the capacity of the sample to be
able to represent the population in effect. The two most important things to keep in mind
are:
The sample size becomes very important in this case.
Also the demographic distribution of the population should be covered by the
sample distribution.
The sample population was carefully distributed across the Delhi area
keeping in mind the local demographics. The survey was conducted in west and north
Delhi. All the areas within the sample population were surveyed.
The 3 stages of survey:
1- The first stage of analysis was done to find out the potentials of putty as a substitute to Plaster Of Paris, the buyer’s perception about the product, the awareness level of the User about the benefits of putty, the opportunity for putty at institutional sites.
2- The second stage of analysis was done to find out the key person who takes the decisions regarding the uses of products and to influence his perception regarding Wall Putty.
3- In the third stage the Painters were surveyed to find out their perception as the
painters are major influencers in the buyer’s decision making process. A few end consumers were also interviewed to find out their attitude and awareness about the product and the different brand offerings.
A sizeable number of end customers and builders have formed a part of the research
sample population as well.
Test Unit
The total number of sites that were visited is 178 but the size of the sample population
is 51 sites where all the information was collected. The no. Of respondents were 91
at these 51 sites. Respondents were project managers, painters and builders,
Consultants. A few end customers have also been interviewed however; although
their responses have been analyzed they have not been included in the sample
population count to prevent the analysis to get skewed in favour of the larger sample
group.
Questionnaire
The questions have been formed with a view to prepare a database and to measure:
1) Attitude,
2) Price sensitivity,
3) Perception about competitors,
4) Awareness about the benefits of putty in general and J.K. Putty in particular.
5) The means end needs chain analysis,
6) The usual sales pattern of POP and Putty
Collection of Data
PRIMARY DATA
Collecting primary data was really a difficult task as taking the precious time of the people in this fast moving world is very difficult. People generally do want to hear something that is different to their work and convincing people is the most difficult task. It took me around 5 weeks to collect the primary data.
The main sources were:
Questionnaire
Interview
Telephonic calls
SECONDARY DATA
Collecting the secondary data was a hectic job. Going through various magazines and web sites for gathering information was a tough job. It took around a more than a week to collect and compile all the secondary data.
The main sources were:
Magazines
Journals
Research articles
Websites
Data Analysis
To identify the reasons while choosing a product or a brand, detailed analysis was
performed. Certain detailed questions were descriptively analyzed for capturing concepts
like their past experience with the product, level of satisfaction, acceptance of the brand
and the share of wall putty against alternative product (POP) and brand (Birla wall
putty) .
Tools for Data Analysis
For interpretation of results concepts covered in Market Research by Naresh K
Malhotra was used as a reference.
Various pictorial presentations are made to make the interpretation more
analytical and clear.
Findings
The total Land area on which the construction is going (in west and north Delhi) = 297766 sqm.
The total Land area where all the information is collected = 207615 sqm. , which is the 69.72% of the total Land area.
1- Share of Putty, POP and Both at the Visited Institutional sites(54 sites)POP 33Putty 16Both (POP+Putty) 5
2- Share of J.K. Wall Putty(54 sites)
Birla Wall Putty 67%J.K.Wall Putty 14%Other (Acrylic and Self made) 19%
61% of the sites of Sample taken are using POP Punning, 30% are using Putty Punning and there are few Sites where first of all POP Punning is done then they apply Putty over it
3- Putty vis a vis Pop in terms of Quality
Putty V/S PoP
NO. OF RESPONDENTS RESPONSES
86 Putty Better
4 Both are same
Above is the Share of Birla and J.K. Wall Putty at Construction Sites that I have Visited.
J.K. Wall Putty is 14%, Birla Wall Putty is 67% and there are other Wall Putty also in the market having 19% of share.
1 Pop is better
4- The usual market trend -- POP or Putty
Usual Market Trend
NO. OF RESPONDENTS RESPONSES
89 POP is in customers demand
2 Both POP and putty is in demand
Out of the 91 respondents surveyed:
86 opined that Putty is better in terms of Quality. It is better value for money because
Of the unique benefits it offers.
4 of them felt both are same as per quality because POP serves the basic purpose and it is
cheaper also.
1 store said that PoP is better because it gives the same finishing at a lesser price.
0 Only Putty is in demand
5- Market share of acrylic putty v/s cement based putty
Market Share
NO. OF RESPONDENTS RESPONSES
41 Acrylic Putty
All 98% respondents said POP is the usual trend. Only 2% respondents said Putty is
catching up.
Here, by “POP is the market trend” we mean to say that no respondents in the sample
reported all customers ask to use only putty at the sites and no POP at all.
50 Cement Putty
6- Necessity of POP in the construction process of Institutional sites
Necessity
NO. OF RESPONDENTS RESPONSES
89 POP is essential
2 Depends on customer choice
The market share of acrylic and cement based putty was almost the same. Out of
91 respondents, 41 said acrylic putty had a bigger market share and 50 said that
cement based putty sold more.
CONCLUSIONS
Sites Survey
Major construction areas in north and west Delhi are – Pitampura, Netaji Subhash Place,
Rohini, Rithala, Dwarka, Bawana, Janakpuri, paschim Vihar.
There is no doubt about the fact that POP has evolved into a commodity of necessity for builders/owners. A whopping 98% opined that POP is necessary for smooth walls and better finishing. 2 of the total 91 respondents surveyed were unaware of Putty altogether.
Almost 94% respondents feel putty is better. They all felt putty was far superior than POP
in terms of quality / benefits offered to the customers. The damp proofing, finishing,
longevity was better than POP. Only 2% said Pop is better because it served the same
purpose ie, the basic need of the consumer for surface preparation at a lower cost. 4%
were indecisive because they were not sure about the effectiveness of putty compared to
POP when the two are pitted against each other keeping in mind the huge price
difference.
POP is widely used product and comprises 61% of the share. But this can be a big
opportunity for Putty if it can replace POP from the market.
The Brand preference is clearly skewed in favour of Birla cement based putty. Birla is
getting the Pioneer advantage and enjoying 67% of the share. In fact Putty and Birla are
synonyms to each other. Birla putty has great brand recognition value and a powerful
brand.
POP is the usual trend. But Putty is catching up but slowly, the main reason is the lack of
awareness among the consumers. All the users of POP feels that POP is a cheaper affair
but if we add the Material, Paint, and the Labour cost than the Putty is cheaper smoother
and durable. If we use the paint on putty punning wall the less material is required.
At the institutional sites POP is the necessity and 98% respondents agree to it. Pop is
treated as brick and mortar for the construction process which is absolutely indispensable.
This was the more or less the opinion of all the respondents in the painter group . There
are reasons behind it. The big sites have many constraints like- Completion of the site on
time due to which undulations are there and these undulations can not be removed with
Putty.
The market share of acrylic and cement based putty was almost the same.
I also tried to introspect the consumer decision making process to find out the major
influencers / motivators. End consumers were also asked this question informally. They
felt that painters influence the consumers the most. Actual purchases in most case are
made by the painters and many a times consumers do not even take a note of the brand
that is getting used on the walls. Therefore the painters play a major role in popularizing
any product. A very important factor was thus brought to light:
THE PAINT CONTRACTORS ARE THE REAL CUSTOMERS
Recommendations
Putty is a very promising product and is destined to capture the markets in the
future.
Paint Contractors are a very important intermediary between the consumers and
the company. Therefore, company needs to work on Company and Paint
contractors relationship. Regular Painters meet can be organised for this purpose.
If possible than all the related key decision makers should be called for the meet
as Birla does.
J.K. can launch its Putty in three different variants. The existing putty and another
variant of lesser quality can be introduced at a lower price to challenge the POP
monopoly. This will help J.K. putty to counter the influx of POP and will also
give an edge to the J.K. brand over its competitor Birla and third variant can be an
Acrylic Putty to compete with the Paint companies. Because diversification is the
only way to become big brand.
Company should promote the combination of J.K. Wall Putty, ICI dulux Paint,
and the labour cost while comparing with POP. They can start construction work
also and can offer its product at lower cost.
Builders and architects can be appraised about the product as a part of a PR
building exercise.
There is no differentiating factor in J.K. Wall Putty than its competitor Birla.
Differentiating factor is necessary to get noticed. After this research I strongly
believe that J.K. Wall Putty can achieve better results if it can position itself in the
market with unique offerings. I tried to device a positioning for J.K. wall Putty to
the best of my abilities.
We can also try a new packaging which looks modern to differentiate it.
Word of Mouth is very important company should promote its product for WOM
Publicity.
Limitations of Research
Though a successful survey was conducted there were still certain limitations to the
study. Below are some of the limitations of the research conducted:
As far as limitation is concerned it may mentioned here that time frame was a major constraint particularly for the market survey as because studying and
diagnosing the market needs a lot of time but the time constraint made the survey suffered a bit. It may be also mentioned here that as the survey includes a lot of traveling problems were faced regarding the travel conveyance.
it was a great problem and it made the work suffer a lot.
The sample size was small; interview with more number of specifiers could have given a better picture on the overall acceptability of “Putty” among them.
Research like this which concern with the information that is not revealed easily; generally require a patient hearing and understanding. Since the people interviewed were all busy professional an honest hearing and understanding of the subject from them were very rare.
Some of the people interviewed were not that clear about their opinion.
In some cases views were not communicated properly.
Although efforts have been taken to meet and overcome these limitations yet perhaps if they had not been there more life colud be brought in the project.
Bibliography
Reports
1. Annual Reports of J.K. Cement Ltd.
2. Report of ICRA on Cement Industry.
Books
3. Market Research-N.K.Malhotra
4. Marketing Management –Phillip Kotler
Websites
5. www. wikipedia .com
6. www.jkcement.com
ANNEXURE: Questionnaire
FORMAT-SITE/PROJECT VISIT
1. Name of Site/Project :
2. Location of Site/Project :
3. Type of Building : Commercial or Residential
4. Area of Building :
5. Height and No. Of Floor :
6. Cost of Project :
7. i) Is it a Group Housing Society – Co-Op. Society – Any other.
ii) Key persons to be contacted Mobile Nos.
8. Comment on stages of work :
i) Foundation work :
ii) Progress on construction done :
iii) Estimated month of completion
9. Architects :
i) Name of Address / Tele No.ii) Key person to contact / Tele No.
10. Contractors : Other Site Addresses
i) Name & Address / Tele No.
ii) Key person to contact / Tele No.
Putty Demonstrations
i) Nos. Done
ii) Nos. Planned
Technical Presentations
i) No. Done
ii) Nos. Planned
Name of Stockist/Retailer Supplying White Cement/Putty
1
2
3
4
Details of Purchases:
Period White Cement Putty
f.y. 2006-07
f.y. 2007-08