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:

 

 


INTRODUCTION:

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?

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?

Companies      

             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 ?

Companies      

          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?

 

 

Companies      

                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?

Companies      

                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?

 

Companies      

              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?

Companies      

                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.

 

REFERENCES:

1.       Aaker, D.A. and Shansby, J. (1982) “Positioning your Product,”Business Horizons,25,(May/June), 56-62

2.       Alden, D. L., Steenkamp, J. B. E. M. and Batra, R. (1999) “Brand Positioning through Advertising in Asia, North America, and Europe: The Role of Global Consumer Culture,” Journal of Marketing,63 (January), 75-87

3.       Bhat, S. and Reddy, S. K. (1998) “Symbolic and Functional Positioning of Brands,”Journal of Consumer Marketing 15, (1), 32-43

4.       Rawford, C. M. (1985) “A New Positioning Typology,” Journal of Product InnovationManagement,4 243-253

5.       Domzal, T. and Unger, L. (1987) “Emerging Positioning Strategies in Global Marketing,” Journal of Consumer Marketing,4 (4), 23-40.

6.       Hooley, G. and Saunders, J. (1993)Competitive Positioning: The Key to Market Success, Hemel Hempstead: Prentice Hall

7.       Hooley, G., Saunders, J. and Piercy, N. F. (1998) Marketing Strategy and Competitive positioning (2ndedn), Hemel Hempstead: Prentice Hall.

8.       Keller, K.L., 2008, Strategic brand management: building, measuring and managing brand equity, 3rd edn., Pearson Prentice Hall, New Jersey.

9.       Huang, R. and Sarigöllü, E., 2012, ‘How brand awareness relates to market outcome, brand equity, and the marketing mix’, Journal of Business Research 65, 92–99. 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