Article on Brand Positioning of
Cement industry in India and the Dealer’s preference-A case Study in the District
of Ganjam (Odisha, India)
Anup Kumar Panda
Assistant Professor, VITAM, Berhampur
*Corresponding Author E-mail: panda.nupa@gmail.com
ABSTRACT:
Cement
is no longer just a commodity. Prices have remained unaffected even during
monsoons. The Indian cement industry has nearly doubled its production capacity
in the last 10 years to 212 million tonnes and newer
players are becoming bigger with manufacturing units across the country. The
India-versus-China story – the competition for the next economic superpower
status – has China leading the race in all sectors except Telecom and IT. What
could skew this equation a little, however, is the success story of Indian cement.
During the last decade this segment has chalked up an astonishing compound
annual growth rate (CAGR) of 8% compared to the world cement industry average
of 3.5% and China’s 7.2% (Source: Indian Brand Equity Foundation).Even though
the Indian cement business is more than 100 years old, it was sluggish and inefficient,
languishing under government controls until the early 1980s. Post-liberalisation, however, the industry has matured and is flourishing
under the open regime. It has grown to a production capacity of 154 million tons
per annum (MTPA). This record not only beats that of developed countries like
the US and Japan, but also firmly establishes India as these cond largest global player after China. T he Indian
government’s better-late-than never awakening to the importance of infrastructure
and concomitant support for its development, gave cement its rightful place in the
economy. As the housing sector boomed and projects such as state and national
highways took wing, the Indian cement industry’s production capacity
leap-fogged. The world’s largest cement companies –Lafarge and Holcim – have now entered India. A spate of mergers and acquisitions
– designed to exploit the growth in demand – have since occurred. Two large groups
– the Ambuja/ACC combine and Grasim contribute almost
35 MTPA each to the country’s total annual capacity. By no means has demand for
cement peaked. As development picks up greater momentum, cement companies will
continue to surge ahead. The one strong pointer to the opportunities is a simple
fact: the world’s average per capita consumption is 260kilograms. In India it
is still trailing at 136 kilos.
KEY WORDS:
Brand refers to Brand is the
"name, term, design, symbol, or any other feature that identifies one
seller's product distinct from those of other sellers Initially, Branding was
adopted to differentiate one person's cattle from another's by means of a
distinctive symbol. In marketing, positioning
is the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand or organization.
Brand
positioning, probably the most common is: identifying
and attempting to occupy a market niche for a brand, product or service utilizing traditional marketing
placement strategies (i.e. price, promotion, distribution, packaging, and
competition).
The cement industry in India:
Cement Industry originated in India when the first plant commenced
production in 1914 at Porbandar, Gujarat. The industry
has since been growing at a steady pace, but in the initial stage, particularly
during the period before Independence, the growth had been very slow. Since indigenous
production was not sufficient to meet the entire domestic demand, the Government
had to control its price and distribution statutorily. Large quantities of cement
had to be imported for meeting the deficit. The industry was partially decontrolled
in 1982 and this gave impetus to its pace of growth. Installed capacity increased
to more than double from 27 million tons in 1980-81 to 62million tons in 1989-90.
The cement industry responded positively to liberalization policy and the Government
decontrolled the industry fully on 1st March 1989. From 1991 onwards cement industry
got the status of a priority industry in schedule III of the industry policy statement,
which made it eligible for automatic approval for foreign investment up to51% and
also for technical collaboration on normal terms of payment of royalty. After the
globalization and liberalization of Indian economy, the cement industry has been
growing rapidly at an average rate of 9 percent. The country is now the second largest
producer of cement in the world next only to China with a total capacity of 217.80
million tones. Additionally, in the last two decades, the industry has undergone
rapid technological up gradation and growth, and now, some of the cement plants
in India are comparable to the world’s best operating plants in all respects. Till
a few years ago India was importing cement from other countries, as the production
could not meet the demand for the whole country. Now the tables have turned as India
has started exporting large quantities of cement and clinker to Bangladesh, Nepal,
Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE, and Singapore etc.
LITERATURE
REVIEW:
·
(Derrick Daye.) The brand position or brand positioning is how the
brand is perceived in the context of competitive alternatives. As brand consultants,
when we develop brand positioning statements for clients, we include a target customer
definition, brand essence, brand promise, brand archetype and brand personality,
giving the intended brand position/positioning (as opposed to the actual brand position
in the mind of the customer) greater depth.
·
(Kotler, 2001) Positioning is a revolutionary
idea precisely because it cuts across the other four Ps. It informs each of the
Ps and adds consistency to them”.
·
According to Kotler, positioning is “the
way the product is defined by consumers on important attributes - the place the
product occupies in consumers’ minds relative to competing products” (Kotler (2002), p. 269).
·
By Jack trout and Al Ries Positioning is
a marketing method for creating the perception of a product, brand or company identification.
·
By Trout and Ries Positioning is not what
u does to a product. Positioning is what you do to the mind of the prospect. This
is, you position the product in the mind of the prospect.
·
Kapferer, 1986 “A brand is, both tangible
and intangible, practical and symbolic, visible and invisible under conditions that
are economically viable for the company”.
·
According to Manohar David of Philips (Director
and Senior Vice President, Philips India Limited, 1996), a challenge loving, risk
taking Brand Manager, who retired after a 31 year marketing career with Philips,
and responsible for its brand success has to say;
“In the 1970’s, products were made from
the manufacturing, rather than the customer point of view. But with the focus shifting
to the consumer, marketing has assumed a much larger role”.
OBJECTIVE
OF THE PROJECT:
1. To determine the brand positioning of cement industries.
2. To know dealers view about it.
3. To determine the ranking of it as compare to other cement brands.
4. To know their liking and disliking about its different sections.
RESEARCH
METHODOLOGY:
Method used in the study is Sampling
Method.
- Area covered during data collection:
Sampling frame:
The sampling frame represents the group cement delears
were contacted during the survey.
Sampling size:
The total sample size for the data collection for the research purpose
was 30 respondents.
RESEARCH
METHODOLOGY:
The research methodology adopted is basically based on primary data
via which the most recent and accurate piece of first-hand information could be
collected. Secondary data has been used to support primary data wherever needed.
Data collection methods:
The sources of data collection were:
Primary method:
In Primary data collection all the data are being collected by the
questionnaire from the dealers. There has been 30 sample taken and question has
been asked.
Secondary method:
In secondary method the data has been collected from different books,
websites.
Procedure of research methodology:
1. Target geographic area was the Berhampur, Aska, Seragada, Ksnagar, Balipadar, Suruda, Polasara, Buguda of Ganjam
2. To this geographic area questionnaire
was given.
3. Finally the collected data and information was
analyzed and compiled to arrive at conclusion.
Area covered during data
collection:
During the data collection period I have covered the customers Berhampur, aska, seragada, ksnagar, balipadar, suruda, polasara, buguda of the district Ganjam of Odisha of India and these
areas the Ambuja, Ultratech,
Mahashakti and ACC dealers are seen.
Hypothesis of the research:
Null hypothesis (H0):
Providing of qualitative cements is a significant factor for creation
of second brand positioning in the market of Ganjam district.
Alternative hypothesis (Ha):
Qualitative cements may not only the significant factor for creation
of second brand positioning in the Ganjam district.
Data analysis and interpretation
Total respondent=30 dealers& they are
being questioned and feedback are collected from the following questionnaires.
1. According to your Preference
rank the cement companies?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
10 |
7 |
7 |
6 |
|
ultratech |
13 |
14 |
3 |
0 |
|
Mahashakti |
1 |
2 |
8 |
19 |
|
ACC |
6 |
7 |
12 |
5 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(10), rank2-(7), rank-3(7), rank-4(6). Ultratech cement in rank-1(13), rank-2(14), rank-3(3),
rank-4(0). Mahashakti
cement in rank-1(1), rank-2(2), rank-3(8), rank-4(19). ACC cement in rank-1(6), rank-2(7), ank-3(12), rank-4(5). so Ultratech comes in No-1 position.
2. Rank the cement companies according to their Quality?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
9 |
9 |
9 |
3 |
|
Ultratech |
15 |
9 |
6 |
0 |
|
Mahashakti |
1 |
5 |
5 |
20 |
|
ACC |
5 |
7 |
10 |
7 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(9), rank2-(9), rank-3(9), rank-4(3). Ultratech cement in rank-1(15),
rank-2(9), rank-3(6), rank-4(0). Mahashakti cement in rank-1(1), rank-2(5), rank-3(5), rank-4(20).
ACC cement in rank-1(5), rank-2(7),
ank-3(10), rank-4(7). so ultratech comes
in No-1 position.
3.Which cement company has good Packing Quality ?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
4 |
1 |
5 |
20 |
|
ultratech |
6 |
10 |
12 |
2 |
|
Mahashakti |
8 |
14 |
5 |
3 |
|
ACC |
12 |
5 |
8 |
5 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(4), rank2-(1), rank-3(5), rank-4(20). ultratech cement in rank-1(6), rank-2(10),
rank-3(12), rank-4(2). Mahashakti cement in rank-1(8), rank-2(14), rank-3(5), rank-4(3).
ACC cement in rank-1(12), rank-2(5),
ank-3(8), rank-4(5). so ultratech comes in No-1
position.
4. The Color of which
cement companies customer like the most?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
3 |
9 |
12 |
6 |
|
ultratech |
16 |
8 |
4 |
2 |
|
Mahashakti |
7 |
11 |
7 |
5 |
|
ACC |
4 |
3 |
7 |
18 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(3), rank2-(9), rank-3(12), rank-4(6). ultratech cement in rank-1(16),
rank-2(8), rank-3(4), rank-4(2). Mahashakti cement in rank-1(7), rank-2(11), rank-3(7), rank-4(5).
ACC cement in rank-1(4), rank-2(3),
ank-3(7), rank-4(18). so ultratech comes
in No-1 position.
5.Cement of which company is always available in the market?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
2 |
7 |
12 |
9 |
|
Ultratech |
19 |
7 |
1 |
3 |
|
Mahashakti |
4 |
8 |
12 |
6 |
|
ACC |
5 |
8 |
5 |
12 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(2), rank2-(7), rank-3(12), rank-4(9). Ultratech cement in rank-1(19),
rank-2(7), rank-3(1), rank-4(3). Mahashakti cement in rank-1(4), rank-2(8), rank-3(12), rank-4(6).
ACC cement in rank-1(5), rank-2(7),
ank-3(10), rank-4(7). So ultratech comes in No-1
position.
6. According to Quality and Market Image the Price of which cement company do
you agree with?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
6 |
9 |
9 |
6 |
|
ultratech |
5 |
11 |
6 |
8 |
|
Mahashakti |
14 |
6 |
6 |
4 |
|
ACC |
5 |
4 |
9 |
12 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(6), rank2-(9), rank-3(9), rank-4(6). Ultratech cement in rank-1(5), rank-2(11),
rank-3(6), rank-4(8). Mahashakti cement in rank-1(14), rank-2(6), rank-3(6), rank-4(4).
ACC cement in rank-1(5), rank-2(4),
ank-3(9), rank-4(12). So Mahashakti comes in
No-1 position.
7.Which cement company provides Technical Services regularly?
|
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
3 |
6 |
16 |
5 |
|
ultratech |
22 |
7 |
0 |
1 |
|
Mahashakti |
0 |
1 |
11 |
18 |
|
ACC |
5 |
16 |
3 |
6 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(3), rank2-(6), rank-3(16), rank-4(5). ultratech cement in rank-1(22),
rank-2(7), rank-3(0), rank-4(1). Mahashakti cement in rank-1(0), rank-2(1), rank-3(11), rank-4(18).
ACC cement in rank-1(5), rank-2(16),
ank-3(3), rank-4(6). so ultratech comes in No-1
position.
8. The activities of which cement company companies attract you for
increasing their Sales?
|
Companies rank |
1 |
2 |
3 |
4 |
|
Ambuja |
3 |
10 |
9 |
8 |
|
ultratech |
21 |
8 |
0 |
1 |
|
Mahashakti |
1 |
2 |
16 |
11 |
|
ACC |
5 |
10 |
5 |
10 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(3), rank2-(10), rank-3(9), rank-4(8). Ultratech cement in rank-1(21),
rank-2(8), rank-3(0), rank-4(1). Mahashakti cement in rank-1(1), rank-2(2), rank-3(16), rank-4(11).
ACC cement in rank-1(5), rank-2(10),
ank-3(5), rank-4(10). So Ultratech comes in No-1
position.
9. Rank the cement companies on the basis of Brand Image?
|
Companies rank |
1 |
2 |
3 |
4 |
|
Ambuja |
4 |
8 |
8 |
10 |
|
ultratech |
17 |
6 |
6 |
1 |
|
Mahashakti |
1 |
4 |
10 |
15 |
|
ACC |
8 |
12 |
6 |
4 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja cement in rank-1(4), rank2-(8),
rank-3(8), rank-4(10). Ultratech cement in rank-1(17), rank-2(6), rank-3(6), rank-4(1).
Mahashakti
cement in rank-1(1), rank-2(4), rank-3(10), rank-4(15). ACC cement in rank-1(8), rank-2(12), ank-3(6), rank-4(4). so ultratechcomes in No-1 position.
10. The Advertisement
of which cement companies attract you?
|
Companies rank |
1 |
2 |
3 |
4 |
|
Ambuja |
11 |
8 |
7 |
4 |
|
ultratech |
13 |
10 |
4 |
3 |
|
Mahashakti |
2 |
2 |
11 |
15 |
|
ACC |
4 |
10 |
8 |
8 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(11), rank2-(8), rank-3(7), rank-4(4). Ultratech cement in rank-1(13),
rank-2(10), rank-3(4), rank-4(3). Mahashakti cement in rank-1(2), rank-2(2), rank-3(11), rank-4(15).
ACC cement in rank-1(4), rank-2(10),
ank-3(8), rank-4(8). So Ultratech comes in No-1
position.
11. The cement of which company is quickly available?
|
Companies
rank |
1 |
2 |
3 |
4 |
|
Ambuja |
6 |
6 |
6 |
12 |
|
ultratech |
20 |
4 |
3 |
3 |
|
Mahashakti |
3 |
12 |
11 |
4 |
|
ACC |
1 |
8 |
10 |
11 |
Analysis:
From the above table and graph it has been clearly shown that according
to preference Ambuja
cement in rank-1(6), rank2-(6), rank-3(6), rank-4(12). Ultratech cement in rank-1(20),
rank-2(4), rank-3(3), rank-4(3). Mahashakti cement in rank-1(3), rank-2(12), rank-3(11), rank-4(4).
ACC cement in rank-1(5), rank-2(7),
ank-3(10), rank-4(7). so ultratechcomes in No-1
position.
Data analysis by using statistical tools
Hypothesis and Testing-:
ANOVA analysis:
In the study the anova method has been used
.The hypotheses taken is as follows.
Null Hypothesis:
There is a significant relationship between quality and color For creation
of no-1 brand positioning of Ultratech
|
|
Ambuja |
Ultratech |
Mahashakti |
ACC |
|
quality |
9 |
15 |
1 |
5 |
|
color |
3 |
16 |
7 |
4 |
|
Source |
SS |
dF |
MS |
F-Ratio |
5% of
ratio |
|
Between |
175 |
3(V1) |
58.33 |
6.30 |
6.59 |
|
With in |
37 |
4 (V2) |
9.25 |
INTERPRETATION:
From above analysis it is cleared that my null hypothesis is accepted,
Hence there is a significant relationship between quality and color For creation
of no-1 brand positioning of ultratech.
CONCLUSIONS AND FINDINGS:
·
It can be concluded from the study through model Ultratech Cement has a good brand image in the dealers mind
in Ganjam.
·
Dealers are of the opinion that among all the media television is the
most powerful media followed by the hoarding and wall painting which every common
man can see. So company should have to utilize then as much as possible.
·
I found company is poor in providing services such as timely small
deliveries regular visits and gift items etc.
·
The company should focus more on sales promotion, advertisement and
public relation.
·
Network spread of Birla Cement is very high in Ganjam
can be this as its strength.
·
If check out the satisfaction level of dealers with respect to quality
of Ultratech Cement then we find that 85% dealers are
told that it has excellent quality. So company can also see this as its strength
compare to other brand in market.
·
Dealers opinion regarding price is Favoring Ultratech
cement & It’s Get 1St rank in all four-brand. Its price is reasonable according
to quality it’s also satisfy the dealer.
·
It was found company has very good Brand Image in dealers mind. Dealers
are satisfied with the price.
·
It was found that company is lacking in Supply. As far as Brand-Name
is concern in Ganjam, Company is on 1st Rank
despite of Very popular brand like Ambuja Cement, ACC
Cement
SUGGESTIONS:
·
At the end, I would humbly suggest the company that if company has
good quality, more advertisement, regular contact, marketing experts dealing with
dealers in all rural and urban areas. The company can improve their market shares,
brand loyalty and promote their sales easily.
·
Company should develop its R & D department as per the market requirement.
·
Company should increase availability of stocks by which it can increase
the sale and brand image.
·
For customer care Services Company should starts its concrete
Mobile van facilities
·
As we all know infrastructure sector is growing rapidly so company
improve supply to capture maximum market share.
·
Company should start its internal call centre for its valuable customers
by which they can directly interact with company experts.
·
Company conducts society welfare programs in rural area. So that company
creates good brand image among people
·
By giving some gifts and best wishes cards to the customer that your
buying decision is very good. Company can improve sales and brand positioning.
·
Company should organize seminars, conferences, Manson meetings and
dealers meet to promote sales quarterly.
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http://dx.doi.org/10.1016/j.jbusres.2011.02.003
Received on 09.12.2014 Modified on 27.01.2015
Accepted on 13.02.2015 © A&V Publication all right reserved
Asian J. Management 6(1):
January–March, 2015 page 61-66
DOI: 10.5958/2321-5763.2015.00010.4