Customer Satisfaction towards a particular company

“A STUDY ON CUSTOMER SATISFACTION TOWARDS CEMENT
PRODUCTS WITH REFERENCE TO AMBUJA CEMENT LTD”
Project submitted to
OSMANIA UNIVERSITY
In partial fulfillment of the requirement of the
Master of Business Administration

Submitted By
MOHAMMED AHEMAD RAZA
(H.T.No. 217012672065 )

Under the guidance of
Prof. K. VENKATA LAKSHMAN
DEPARTMENT OF THE BUSINESS MANAGEMENT

VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT
(Affiliated to Osmania University), Hyderabad
2012-2014
1

DECLARATION
I MOHAMMED AHEMAD RAZA (H.T. NO. 217012672065) studying MBA
final year in VISHWA VISHWANI INSTITUTE OF SYSTEMS AND
MANAGEMENT, hereby declare that this project report by name “A STUDY
ON CUSTOMER SATISFACTION TOWARDS CEMENT PRODUCTS
WITH REFERENCE TO AMBUJA CEMENT “has been prepared with due
diligence maintain full originality, as a part of partial fulfilment for the award of
the Master in Business Administration.

Date:

Mohammed Ahemad Raza

Place: Hyderabad

(H.T. NO. 217012672065)

2

CERTIFICATION

This is to certify that the Project Report titled “A STUDY ON CUSTOMER
SATISFACTION TOWARDS CEMENT PRODUCTS WITH REFERENCE
TO AMBUJA CEMENT” submitted in partial fulfillment for the award of MBA
Programme of Department of Business Management, O.U. Hyderabad, was carried
out by K.VENKATA LAKSHMAN, (H.T. NO. 217012672065) under my
guidance. This has not been submitted to any other University or Institution for the
award of any degree/diploma/certificate.

Internal Guide

External Guide

3

ACKNKOWLEDGEMENT
I would like to express my gratitude for all the people, who extended unending Support at all
stages of the project.
I take this opportunity to thank our Dean, Dr.Sabyasachi Rath and Head of the department Dr.M.
Madana Mohan.
This report is a product of not only my sincere efforts but also the guidance and morale support
given by the management of Vishwa Vishwani Institute of System And Management.
I express my sincere gratitude to my guide Prof. K.Venkata Lakshman for sparing his valuable
time in giving the valuable information and suggestions all through, for the successful
completion of the project.
Last but not least, I express my sincere gratitude to all the employees at Ambuja cement who
have directly or indirectly contributed to the successful completion of the project.

Mohammed Ahemad Raza

4

CONTENTS
CHAPTER-1

INTRODUCTION
1.1 General
1.2 Need of the study
1.3 Scope of the study
1.4 Industry profile
1.5 Company profile

CHAPTER-2

LITERATURE REVIEW

CHAPTER-3

RESEARCH METHODOLOGY AND

PAGE NO.
01
02
03
04 – 16
17 – 21
22 - 26

DESIGN

3.1 Type of Research
3.2 Research Objectives
3.3 Research Instrument
3.4 Questionnaire design
3.5 Data collection
3.6 Sample procedure
3.7 Period of the study
3.8 Sample size
3.9 Pilot survey
2.10 Limitation of the study
CHAPTER-4

27
27
27
28
28
29
29
29
29
30

DATA ANALYSIS AND
INTERPRETATION

4.1 Data analysis
CHAPTER-5

5.1 General Findings
CHAPTER-6

36 – 46

SUMMARY OF FINDINGS

47

SUGGESTIONS AND
RECOMMENDATIONS

CHAPTER-7

6.1 Recommendation
6.2 Conclusion
Bibliography
Annexure

48
49
50
51 - 53

EXECUTIVE SUMMARY
The project was carried out at Ambuja cements Ltd. At Raipur region. As my project topic
suggests, I have tried to find out the customer satisfaction of Ambuja cements. CHANGE IN
PRICE OR IMPROVEMENT IN THE QUALITY OF THE CEMENT ETC. The quality of the
5

cement

and

for

this

purpose

people

from

different

were

chosen

like

general

customers,dealers,,bulk consumers etc. have used questionnaire and other scientific tools like
personal Interviews and telephonic interviews to know about the customer mood and the I have
also tried to find the market potential of AMBUJA Cement in Raipur for this I had conducted
market research in different parts of Raipur For this I met different dealers, retailers and as well
as industrial bulk suppliers In different parts of the Raipur.
This study includes direct interaction with the customers and this helps us to know the
“SATISFACTION LEVEL” to great accuracy. This is of great importance to the company which
will know about the customer preference to buy a particular brand.
The company will gain information about customer’s preference depending on the following
factors:





Price factor
Fineness of the cement
Setting time
Attractive packaging
Brand image-one of the important factor

6

CHAPTER - I

1. INTRODUCTION
1.1 General:
A market survey is a tool used to gather information about existing or customers
satisfaction in a certain market or population. Researchers select a sample of
customers from the population. The information from the survey is then used to assess
attitudes and beliefs, and in turn predict market behavior. Marketing is a social process
by which Dealers, builders, architecture individuals Consumers obtain what they need &
7

want through creating offering, & freely offering product & services of value with other. It
is the art & science of choosing target makers & getting keeping & growing customers
through creating delivering & communicating superior customer value. Consumers have
their own way of making purchase decisions.
Today in the market there is tough competition and the technologies are changing day
by day, to become successful in modern market the business organization have to be
customer orientated organization have to look after for building customers.
The information about the market was gathered by visiting customers in the market.
While doing the project attempt was made to get correct information from the customers
in the market. After collecting the detailed information about the market analysis has to
be done, the finding and result of the project work is given later in research report.

1.2 NEED OF THE STUDY:
Customer is one for whom you satisfy and or need return for some of payment. The
payment may be money may be time or may be goodwill but there is some form of
payment. Satisfaction is the level of person felt state by comparing products perceive in
relation’s expectations.
Satisfaction level is function of the difference between perceived performance and
expectations. If the performance falls short of expectation, the customer is not satisfied.
8

If the performance matches the customers are highly satisfied. If the performance is
beyond his expectations the customer is thrilled.
Customer satisfaction is customer’s positive or negative feeling about the value that was
perceived as a result of using particular organization.


To knowing the perception of the customers.



To finding out the effective and ineffective factors of ambuja cement.



To knowing the current position of the ambuja cement in cement industry.

1.3 SCOPE OF THE STUDY
This study includes direct interaction with the customers and this helps to know the
customer satisfaction level to great accuracy. This study is of importance to the
company which will know the following factors:




price factors
fineness of the cement
setting time
attractive packaging
9





brand image
quick delivery time
wide availability
So, scope of this study is to achieve customer satisfaction because
customer satisfaction and quality maintenance is company’s primary
objective.

1.4 INDUSTRY PROFILE

INTRODUCTION
The Indian Cement Industry is the world’s second largest producer of cement in the
world just behind China, but ahead of the United States and Japan. But, per capita
production and consumption are low as compared to the world standards. On the
technological front, Indian cement Industry can be regarded as highly competitive and is
comparable with the best in the world in terms of quality standards, fuel consumption
etc. Indian cement plants, which depended heavily on wet technologies in the sixties
and seventies, have subsequently shifted to modern energy efficient dry technologies.
This trend is more perceptible in the last decade. The latest surge in the demand for
10

cement is driven by the boom in the housing sector and infrastructure sector. It is
consented to be a core sector accounting for approximately 1.3% of GDP and
employing over 0.14 million people. The post deregulation scenario is marked by major
reorganization of many of the capacities in the Indian cement industry. Consolidation
has become the latest buzzword of the industry. Acquisitions, mergers and demergers
have been the order of the day for the industry. Many major Indian players have
acquired small companies and MNCs have also entered the industry through have
acquisitions route.

EXPORT
The export of Indian cement has increased over the years mostly after
decontrol, giving the much-required boost to the industry. The demand for cement
is a derived demand, for it depends on industrial activity, real estate, and
construction activity. Since growth is taking place all over the world in these
sectors, Indian export of cement is also increasing. India has an immense
potential to tap cement markets of countries in the Middle East and South East
Asia due to its strengths of location advantage, large-scale limestone and coal
deposits, adequate cement capacity and production of world-class quality of
cement with the latest technology.
Hence, the firms in the industry are capitalizing on the opportunities, provided by
the government accompanied by favorable economic conditions. This is evident by
the data, which shows negative ACGR of -5.52% in the control period because
of highly protected markets. The average export volume in the period was
around only 1.7 lakh tonnes cement.

As the industry was decontrolled and

economy opened up, cement exports started making rapid strides.
PER CAPITA CONSUMPTION
The per capita consumption of 125 kg in the year 2012-13, compares poorly with
the world average of over 350 kg and more than 660 kg in China. Similarly in
11

Japan it is 631 kg/capita while in France it is 447 kg/capita. The process of
catching up with international averages emphasizes the tremendous scope for
growth in the Indian cement industry in the long term. Also, one of the reasons
for strong interest shown by the foreign players in India is due to its lower per
capita consumption of cement.

PRODUCT DIFFERENTIATION
India

is

producing

different

varieties

of

cement,

based

on

different

compositions according to specific end uses, like Ordinary Portland Cement
(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well C e m e n t , Rapid Hardening Portland cement, Sulphate Resisting
Portland Cement and White Cement etc. The basic difference lies in the
percentage of clinker used. These

different varieties of cement are produced

strictly under BIS (Bureau of International Standards) specifications and the quality
is comparable with the best in the world.
In an environment of growing competition witnessed in the post decontrol era, one
of the major developments has been the introduction of higher grades of cement.
Grade is the 28 days compressive strength of Ordinary Portland cement, when
tested as per Indian Standards under standard conditions.
Depending upon the strength requirement, OPC is thus classified as OPC-33
grade, OPC-43 grade and OPC-53 grade. However, realization is growing fast
amongst the consumers at large, that the properties of durability are of greater
importance than strength.

12

HISTORY OF GRADES OF CEMENT
In the earlier days, we had only one cement, ordinary portland cement. Subsequently,
the availability in abundance of fly ash in thermal power stations and slag in steel plants
led to the production of pozzolana cement and slag cement to conserve energy in the
production of cement and to utilize the available by-products. India was perhaps one of
the few countries which produced as much as 76 per cent of the total cement produced
as blended cement, which is the common name of pozzolanic cement as well as slag
cements as early as in 1982. Then the industry was under the control of controller of
cements. After de-control, the production of ordinary portland cement increased and
consequently the percentage of blended cement came down, currently it is somewhere
around 30 per cent.
13

The introduction of precast / prestressed sleepers for the railways necessitated the
production of a special grade ordinary portland cement because with the then available
cement, it was not possible to obtain the desired strength as well as the rate of gain of
strength for the production of sleepers. Cement industry was permitted to manufacture
the special grade ordinary portland cement and it was commonly known as sleeper
cement.
Subsequently, the Bureau of Indian Standards came forward to grade the ordinary
Portland cement into grade 33 cement, grade 43 cement and grade 53 cement. This
grading closely followed the U.K. grading which was 32.5, 42.5 and 52.5 as well as
62.5, some of Indian companies are also trying to make and persuade the Bureau of
Indian Standards to introduce grade 63.
These higher grades of cements are specifically introduced to cater to the needs of the
industry engaged in the construction of long span bridges, high rise structures and other
structures of gigantic magnitude requiring high grades of concretes. With the cement
then available, it was very difficult to design a mix for obtaining concrete of grade 4.5
and above commonly used in such structures. Hence, Bureau of Indian Standards
classified ordinary portland cement into the above 3 grades that is now available in the
market.
After total de-control of cement industry in 1989 and abolishing of licensing system for
setting up of cement plants in 1992, there has been phenomenal growth in the
production of cement. With the many fold increase in the production of cement, cement
manufacturers adopted an aggressive marketing strategy, each projecting their product
as the best. Manufacturers of 53 grade cement invaded the market and created an
impression amongst the consumers that 53 grade OPC could be used by them as it is
the best cement and grade 33 and grade 43 cements, are inferior.
In fact, all cements are one and the same but for minor changes in the characteristics.


Grade 33 cements would meet the structural requirements of ordinary and small
scale consumers.
14



Grade 43 cements may be utilized for precast concrete production besides the
sleeper manufacturers and other building components producers.



Grade 53 cements may be utilized by builders of heavy infrastructure such as
bridges, Fly overs, large span structures and high rise structures.

The common man's perception that 53 grade cement is the best cement is not only due
to the aggressive marketing strategies of the cement manufacturers but also on the
presumption that the heat generated during hardening of concrete is an index of its
quality. When 53grade cement is used the heat generated is very high. Hence,
Consumers believe that it is a better cement when actually it is not so. Each cement has
to be chosen for a particular use.
While 53grade cement is actually best only for producing concretes of grade 53 and
above, it is not to be used in ordinary structures where concrete grade 20 is normally
adequate.
The total de-controls and competition amongst manufacturers and the market forces
have actually eliminated 33 grades in the market. It may be necessary to enforce the
partial regulation or self-discipline among the manufacturers of cement to produce at
least 1/3rd of the cement in the OPC category as grade 33 cement and 1/3rd another as
grade 43 cement and balance 1/3rd as grade 53 cement and partially regulate the price
for these 3 grades so that, in the market 33 grade cement will become available to the
common consumer.
Though originally introduced to save energy in the cement plants and to make use of
the available industrial by products, research and experience have shown that blended
cements have more durability characteristics than the OPC of even higher grades.
Cement is primarily used to produce concrete. Concrete is mainly produced in ready
mixed plants the world over. Most of the producers of the concrete use OPC and a
substantial quantity of cementitious materials like pozzolana or granulated blast furnace
slag. In countries like U.S. and U.K. where 90 percent of the concrete produced is in the
15

ready mixed plants and the cementitious materials are blended in the concrete plants
rather than in the cement manufacturing units.
In India ready mixed concrete has just had the beginning. The blending of cementations
materials at site is not advisable now. Hence, blended cement production is very
essential. At present production of blended cement is around 30 percent. This has
naturally to increase to at least 50 per cent.
The blended cement does not gain strength immediately and also do not generate heat
like OPC. Hence, the common belief has been that blended cement is inferior cement.
Actually it is not so. No doubt, the rate of gaining strength is slow in the case of blended
cement. But, ultimately, in the long run it gains as much strength as any OPC. Blended
cements give better workability in fresh concrete and during the hardened stage, give
better durability. The consumer is to be adequately educated on the advantages of
blended cement. The reluctance on the part of builders to opt for blended cement is to
an extent justifiable because many builders were forced to use PPC when the
production of PPC was as high as 76 percent during the control days.
They found to their dismay that they have to retain their shuttering for much longer
duration and sometimes the quality of PPC was of doubtful nature because the fly ash
blended with the PPC was of varying quality. However, of late, the selection of
pozzolanic materials has been more stringent and the quality of blended cement is more
consistent.
The builders can shed their past memories and start using blended cement.
Manufacture of blended cement results in substantial savings in energy and product
cost. Hence, industry must pass on to the consumers the benefits derived to the users
of blended cement.
In short, every cement has its own role to play and there is no reason to believe one
cement is superior to the other cement. For ordinary structure .OPC grade 33cement or
PPC could meet the requirements. For producing concretes of higher grades, mixes

16

have to be designed using OPC as well as cementitious materials concrete chemicals
and sometimes additional fillers and even viscosity agents.
For non-structural uses such as masonry and plastering mortar, cement of much lower
strength than OPC 33 grade classified as masonry cement is the best suitable material.
But, unfortunately, no manufacturer produces this type of cement. More than the choice
of the cement, the control exercised in production of concrete in regard to the selection
and proportioning of materials, use of the minimum required quantity of water, careful
handling of the mix during transportation and placing, compacting well to get a dense
concrete, having an engineered formwork, continuous curing and the like contribute
greatly to the quality and durability of concrete.
VARIETIES OF CEMENTS IN INDIA
There are some varieties in cement that always find good demand in the market. To
know their characteristics and in which area they are most required, it will be better to
take a look at some of the details given below.


Portland Blast Furnace slag cement (PBFSC): The rate of hydration heat is
found lower in this cement type in comparison to PPC. It is most useful in
massive construction projects, for example - dams.



Sulphate Resisting Portland cement: This cement is beneficial in the areas
where concrete has an exposure to seacoast or sea water or soil or ground
water. Under any such instances, the concrete is vulnerable to sulphate attack
in large amounts and can cause damage to the structure. Hence, by using this
cement one can reduce the impact of damage to the structure. This cement
has high demand in India.



Rapid Hardening Portland cement: The texture of this cement type is quite
similar to that of OPC. But, it is bit more fine than OPC and possesses
immense compressible strength, which makes casting work easy.

17



Ordinary Portland cement (OPC): Also referred to as grey cement or OPC, it
is of much use in ordinary concrete construction. In the production of this type
of cement in India, Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina
(AL2O3), and Sulphur trioxide (SO3) components are used.



Portland Pozolona Cement (PPC): As it prevents cracks, it is useful in the
casting work of huge volumes of concrete. The rate of hydration heat is lower
in this cement type. Fly ash, coal waste or burnt clay is used in the production
of this category of cement. It can be availed at low cost in comparison to OPC.



Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well
Cement is used in constructing or fixing oil wells. This is applied on both the
off-shore and on-shore of the wells.



Clinker Cement: Produced at the temperature of about 1400 to1450 degree
Celsius, clinker cement is needed in the construction work of complexes,
houses and bridges. The ingredients for this cement comprise iron, quartz,
clay, limestone and bauxite.



White cement: It is a kind of Ordinary Portland Cement. The ingredients of
this cement are inclusive of clinker, fuel oil and iron oxide. The content of iron
oxide is maintained below 0.4% to secure whiteness. White cement is largely
used to increase the aesthetic value of a construction. It is preferred for tiles
and flooring works. This cement costs more than grey cement.

CEMENT INDUSTRY ANALYSIS
There are five forces driving cement industrial competition. Porter (1979) suggests (figure
shown below) that when the forces are weak collectively, there is a major opportunity for
superior performance. Therefore, we can conclude that the cement industry is unattractive
in mature markets, but attractive in emerging markets
18

CEMENT COMPANIES SUPPLY CHAIN STRATEGY
Supply Chain (SC) operational objectives can be classified in three groups:


Asset utilization,



Customer response and



Efficiency

We believe that the cement industry is concentrated on asset utilization with some level
of efficiency. The main reason for this location is that cement companies are focused in
minimizing cost based on the economies of scale generated by their investment in large
manufacturing plants. This is a given condition for all large cement companies in the
19

industry. Some cement companies are moving towards the other operational objectives
to gain differentiation in the market. One key success factor is the required supply chain
transformation to support this decision.
SUPPLY CHAIN OPERATING MODEL OF CEMENT (PROCESSOR ANALYSIS)
Cement industry planning process is centralized and optimization oriented. There is no
constraint in the availability of cement main raw materials with the exception of some
countries where subsoil ownership regulations applied. Cement manufacturing is capital
and energy intensive where cement truck delivery is restricted due to its low value-to-weight
ratio.

SUPPLY CHAIN OPERATING MODEL OF CEMENT (PRODUCT ANALYSIS)

Cement can be characterized as bulk and bagged as shown below. Bulk cement is
dominant in developed countries and its demand is generated by large construction
companies and government. Bagged cement is dominant in emerging markets and is
generated by Do-It-Yourself (DIY) customers and small contractors. Relatively speaking,
bulk cement is functional while bagged cement is innovative. Functional products should

20

have an efficient supply chain while innovative products should have a responsive
supply chain.

LOGISTICS ISSUE
Besides strong demand, eastern and northern region also witnessed price hike due to
wagon unavailability and logistics issues, while demand in southern and the western
region remained tepid ,declining off-take from the government infrastructure spending.
The capacity utilization continued to remain higher as the new capacities that came on
stream where not fully stabilized and as it happens we may expect falling capacity
21

utilization levels and consequent impact on pricing and margins. Cement manufacturing
is capital and energy intensive where cement truck delivery is restricted due to its low
value-to-weight ratio. Functional products should have an efficient supply chain while
innovative products should have a responsive supply chain.

CEMENT SUPPLY CHAIN (BUILD TO STOCK)

Two alternatives were proposed to migrate from BTS (Build to Stock) to CTO (Configure
to order), moving the push-pull boundary back in the cement supply chain. First, Grindto-Order where cement is kept in clicker (intermediate product of the cement
22

manufacturing process) and then grinded as orders appear. Second, Pack-to-Order,
where cement is kept in bulk and then packed as orders appear .Further research
should be made to confirm the feasibility of these alternatives.

1.5 COMPANY PROFILE
AMBUJA CEMENT
Ambuja Cements Limited was set up in the late 80s. The cement industry presented
an opportunity of steady growth and ethical competition to the promoters. However, a
decade later, it became one of world’s most efficient cement companies producing the
finest cement in the world at the lowest cost while adhering to the most stringent
international pollution-control norms. Today, Ambuja is the 3rd largest cement company
in India, with an annual plant capacity of 18.5 million tonnes including Ambuja Cement
Eastern Ltd. and revenue in excess of Rs.3298crores. More importantly, its plants are
some of the most efficient in the world. With environment protection measures that are
on par with the finest in the developed world. But the company’s most distinctive
attribute is its approach to the business. Ambuja believes its most valuable assets aren’t
cement plants. They are the people who run the plants.
This unique vision is encapsulated in the company’s homegrown philosophy of giving
people the authority to set their own targets, and the freedom to achieve their goals.
It’s called ‘I can’’
This simple vision has created an environment where there are no limits to excellence,
no limits to efficiency. And has proved to be a powerful engine of growth for the
company. As a result, Ambuja has consistently raised the bar in all aspects of the
23

cement industry. Be it transportation, plant efficiency, brand building or human resource
development.

First plant set up in record time
When Ambuja set up its first plant in 1986, the accepted time period for installing a plant
was 3 years. Ambuja did it in less than 2 years and with a significantly lower capital
expenditure. In 1993 the company went a step further and bettered its own record.
Ambuja's second plant was installed in a mere 13 months - the quickest time for setting
up a one million tonnes cement plant.
A whole new way of transporting cement
in the early 90s, almost all cement in India travelled by rail or road and in bags .A mode
that involves deterioration of both, the quality and volume of cement. In 1993, Ambuja
Cement set up a complete system of transporting bulk cement via the sea route making
it the first company in India to introduce bulk cement movement by sea. Others followed
and today, about 10% cement travels by this new route.
The facility comprises: A dedicated port at the Gujarat plants, capable of berthing
40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka, and
seven special bulk cement vessels. This capability has enabled us to supply fresh
cement to many coastal markets – domestic and international.
Branding a commodity

24

Cement is a commodity, sold largely on price. Ambuja Cement was the first company to
create a brand out of cement and command a premium.
It was also the first to introduce a special cell, providing technical services to consumers
and masons. Today, this has become the norm in cement marketing.
The trick of course was to provide a consistently high quality of cement, backed
by excellent service. This was reinforced by a strong dealer network. The result is
that customers are ready to pay 2-3% premium for Ambuja Cement for the value they
receive. Ambuja Cement is the top brand in Western, Northern, Central and Eastern
India.
Exports
Ambuja Cement exports almost 17% of its production in a very competitive international
environment. For the last ten years, Ambuja Cement remains India’s highest exporter
of cement.
This has been possible for two reasons –
1 The quality of cement matches the best in the world.
2 The dedicated bulk cements transportation capability at our Gujarat plant.
The Environment
From the outset, Ambuja has believed that a cement plant cannot flourish at the cost of
the environment. That’s why it adheres to the most rigorous international environmental
norms. The pollution levels at all its cement plants are even lower than the rigorous
Swiss standards of 100 mg/NM3 .At the Gujarat plants, surface miners have been
employed to scrape the surface of the mines.
Thus ensuring that all the mining is totally blast free.There is no noise or air pollution.
Similarly at the Himachal Pradesh plant, Ambuja has employed techniques that have
made mining absolutely safe and pollution free. Not surprisingly then, the company has
25

consistently won awards for its pollution free plants. Awards as prestigious as the
National Award for Outstanding Pollution Control and The Eco-Gold Star of Tata Energy
Research Institute (TERI).

Corporate Social Responsibility
In 1991, the company set up Ambuja Cement Foundation to trigger all-round
development of the people around its cement plants. The Foundation decided to
traverse the difficult but more productive path of helping the people to help themselves.
With great dedication and commitment, the foundation energized the local people to
participate and own their development process. It became a facilitator and catalyst,
rather than a one-time fund provider. It developed easily replicable and sustainable
modules for water management, sustainable agriculture and healthcare. All this effort in
discharging its social responsibility has earned the company recognition across Asia.
Milestones


Building of a cement plant in record 13 months.



Kilometer conveyor belt running through three hills was constructed in just 9
months.



Introduced a completely new system of transporting cement in India – the bulk
cement transportation by sea.



Introduced complete blast free limestone mining by using the surface miner in
limestone mining for the first time in India.

26



Created water reservoirs in used up mines and raised the water table in arid
areas.



Our plants have achieved the lowest pollution levels –comparable with the
strongest Swiss standards.

Recognition


National Award for commitment to quality by the Prime Minister of India.



National Award for outstanding pollution control by the Prime Minister of India.



Eco-Gold Star by TERI



Best Export Award by CAPEXIL.



Award for Corporate Social Responsibility by Business World – FICCI



International Award For Rural Development by Asian Management Institute
(AIM)



ISO 9002 Quality Certification.



ISO 14000 Certification for environmental systems.

27

Technical Details


Established – 1986.



Total Capacity – 18.5 million tonnes.



Infrastructure – Dedicated port at Gujarat. Capable of berthing 40,000 DWT
vessels with carrying capacity of 20,000 tonnes.



Packing terminals at Mumbai, Surat and Sri Lanka.



Seven dedicated bulk cement ships.

28

CHAPTER - II

REVIEW OF LITERATURE
Marketing is “The management process which identifies anticipates and supplies
customer requirements efficiently and profitably”.
“Marketing is a total system of interesting business activities defined to Plan, piece,
promote and distribution want satisfying products & services to present and potential
consumers”
“Marketing is the performance of business activities that direct the follow of goods and
services from the producer to the consumer or user”
A social and managerial process, by which individuals and groups obtain what they
need and want, through creating and exchanging product and value with others.

29

Customer satisfaction begins with a difficult faith; it starts with a commitment to deliver
the result for each customer which is also a concern of the dealers. Hence for a
manufacturing company, in order to satisfy its customers, it is highly important to satisfy
its dealers, as they are the direct customers to them. Establishing satisfaction as the
ultimate goal is like the other ultimate goals of business pursuit of higher profits or
shareholders wealth. Perfect dealer service or satisfaction is one that meets the
combined need satisfaction is a systemized service that involves the entire organization.
But many organizations have yet to develop this kind of awareness of dealer
satisfaction strategy.
Dealer Satisfaction begins with the following specific assumptions about company’s
relationship with the customers.
1. The dealer service activities focus mainly on existing dealers.
2. Some dealers are more important than others
3. They are the assets.
4. The dealer is always specific.
The dealer needs and value should influence every aspect of the organization strategy,
employee safety and performance, product and organization strategy, employee safety
and performance, product and service development, sales and marketing programs,
operational procedures and information and measurement system.
Understanding the dealer is critical to the success of any customer focus initiative, the
first step in understanding the dealers is to listen to them.
A company needs to hear what its dealers are saying about its people, product service
and vision. Their information helps to develop meaningful product and service.

Organizations need to listen to their dealer satisfied, dissatisfied neutral and
prospective. As one company executive said, “talking to a satisfied customer is talking
30

to me”. In the past, dealer satisfaction and service was the responsibility of a separate
organization that supported the dealer primarily after the sale.
Today, service is also likely to be interested with the every product accompany offers.
High dealer satisfaction comes from providing effective services. But giving that service
is a continuous activity. It means being efficient, reliable, courteous, curing and
professional every time.

Marketing is a communication process that has the purpose of individuals or
groups - that are directly or indirectly able to purchase - aware of products and services
that may satisfy their existing or newly-identified needs and wants.
The Chartered Institute of Marketing, which is the world's largest marketing body,
defines marketing as "The management process responsible for identifying, anticipating
and satisfying customer requirements profitably."
Marsha Peter (2OO2) examines temporal changes in post-purchase product
satisfaction for durable goods purchase. Involvement and satisfaction variables were
measured in a cross-sectional and a longitudinal study of car owners. Overall,
consumers with high product involvement showed slightly greater satisfaction with their
cars than low-involvement consumers over the term of ownership. However, in the 2month period after purchase, consumers with high product involvement showed a
decline in satisfaction, whereas low-involvement consumers' satisfaction increased. The
role of disconfirmation in these changes was investigated. Benefits and problems
disconfirmation were found to make independent contributions to satisfaction
judgments, and the strength and form of contribution varied with product involvement.
These findings suggest that benefits and problems disconfirmation need to be
measured separately in satisfaction research.
Yooshik Yoon(2004) studied the effects of motivation and satisfaction on destination
loyalty: a structural model and investigates the relevant relationships among the
31

constructs by using a structural equation modeling approach. Consequently, destination
managers should establish a higher satisfaction level to create positive post-purchase
behavior, in order to improve and sustain destination competitiveness.
Diane Halstead (1993) studied the Focuses on a group of unsatisfied car owners.
Examines the roles of the car warranty and the post-purchase service received during
the complaint process in terms of their effects on customers' satisfaction with complaint
resolution. Presents some suggestions for customer service policies, complaint handling
procedures, and warranty fulfillment service.
James Y.L. Thong (2006) studied the effects of post-adoption beliefs on the
expectation-confirmation

model

for

information

technology

continuance

.The

expectation-confirmation model (ECM) of IT continuance is a model for investigating
continued information technology (IT) usage behavior. This paper reports on a study
that attempts to expand the set of post-adoption beliefs in the ECM, in order to extend
the application of the ECM beyond an instrumental focus. The expanded ECM,
incorporating the post-adoption beliefs of perceived usefulness, perceived enjoyment
and perceived ease of use, was empirically validated with data collected from an on-line
survey of 811 existing users of mobile Internet services. The data analysis showed that
the expanded CM has good explanatory power (R2=57.6% of continued IT usage
intention and R2=67.8% of satisfaction), with all paths supported. Hence, the expanded
ECM can provide supplementary information that is relevant for understanding
continued IT usage.
The significant effects of post-adoption perceived ease of use and perceived enjoyment
signify that the nature of the IT can be an important boundary condition in
understanding the continued IT usage behavior. At a practical level, the expanded ECM
presents IT product/service providers with deeper insights into how to address IT users’
satisfaction and continued patronage.
Marsha L. Richins (2002) Post-purchase product satisfaction: Incorporating the effects
of involvement and time describes changes in post-purchase product satisfaction for a
32

durable goods purchase. Involvement and satisfaction variables were measured in a
cross-sectional and a longitudinal study of car owners. Overall, consumers with high
product involvement showed slightly greater satisfaction with their cars than lowinvolvement consumers over the term of ownership. However, in the 2-month period
after purchase, consumers with high product involvement showed a decline in
satisfaction, whereas low-involvement consumers' satisfaction
Increased. The role of disconfirmation in these changes was investigated. Benefits and
problems disconfirmation were found to make independent contributions to satisfaction
judgments, and the strength and form of contribution varied with product involvement.
These findings suggest that benefits and problems disconfirmation need to be
measured separately in satisfaction research
Claes Fornell(1992) examines that many individual companies and some industries
monitor customer satisfaction on a continual basis, but Sweden is the first country to do
so on a national level. The annual Customer Satisfaction Barometer (CSB) measures
customer satisfaction in more than 30 industries and for more than 100 corporations.
The new index is intended to be complementary to productivity measures. Whereas
productivity basically reflects quantity of output, CSB measures quality of output (as
experienced by the buyer). The author reports the results of a large-scale Swedish effort
to measure quality of the total consumption process as customer satisfaction. The
significance of customer satisfaction and its place within the overall strategy of the firm
are discussed. An implication from examining the relationship between market share
and customer satisfaction by a location model is that satisfaction should be lower in
industries where supply is homogeneous and demand heterogeneous. Satisfaction
should be
Higher when the heterogeneity/homogeneity of demand is matched by the supply.
Empirical support is found for that proposition in monopolies as well as in competitive
market structures. Likewise, industries in general are found to have a high level of
customer satisfaction if they are highly dependent on satisfaction for repeat business.
The opposite is found for industries in which companies have more captive markets. For

33

Sweden, the 1991 results show a slight increase in CSB, which should have a positive
effect on the general economic climate.
Richard Oliver (2000) Response determinants in satisfaction judgment, examines that
the effects of five determinants of satisfaction are tested as well as individual differences
in satisfaction formation. Manipulations of attribution, expectancy, performance,
disconfirmation, and equity are written into stock market trading scenarios in a full
factorial design. Results show that all main effects and four ordinal two-way interactions
are significant. Then, an individual level analysis is performed on the repeated
measures data. Three clusters of subjects sharing
Similar response tendencies (disconfirmation, performance, and equity) are identified
and related to investment attitudes, outcome attitudes, and demographics. No
consistent relationships are discovered, suggesting that the response differences reflect
deeper behavioral tendencies. Implications of this approach for satisfaction paradigms,
satisfaction theory, and individual satisfaction response orientations are presented.

34

CHAPTER - III

RESEARCH METHODOLOGY & DESIGN

3.1 Type of research
Market Research
Definition of marketing research is approved by the board of American marketing
association (AMA) “Marketing Research is a function which links the customer and
public to marketer thought information used to identity and defines market opportunity
and problems; generate define and evaluate ,marketing action monitor marketing
performance and improve understanding of marketing as a process.

35

Simply marketing research is a systematic design collection analysis and reporting of
data feeding relevant to a specific marketing situation facing the company, careful
planning thought all stage of the research is a necessary. Objectivity in research in all
important the heart of the scientific method is the object gathering and analysis of the
information. The function of marketing g research within a company is to provide the
information and analytical input necessary for effective planning of future marketing
activity control of marketing operation in the present.
3.2 Objective of study


To find out the customer satisfaction level through scientific tools like interviews



and questionnaire.
To finding the customer satisfaction level through direct interaction with the
knowing their preference. This will include all the processes like asking
questions from the customer through questionnaire which will be included in the
primary survey once the primary survey is done.

3.3 RESEARCH INSTRUMENT
The research instrument used in this study is a structured questionnaire’
structured questionnaire are those questionnaire in which there are definite, concrete
and predetermined questions relating to the aspect, favor which the researcher collects
data. The questions are presented with exactly the same order to all the respondents.
3.4 QUESTIONNAIRE DESIGN
The structured questionnaires that were framed and designed consist of close
ended, open ended, multiple choice, and Dichotonomos, rating and raking questions.
3.5 Date collection




Selected around 100 persons for the interview.
To help of the questionnaire, personal and telephonic interview.
Collected the data through focus interviews. Concentrated on taking interview




mainly from the following group of people.
Architects/engineers----25%
Retailer stockiest-------15%
36





Wholesale -------10%
Industrial bulk consumer-----20%
General consumer------30%

The survey was descriptive and sample chosen was mainly on the judgments of the
researcher with the help and proper consultation of project guide.
In this kind of sampling method, the population elements are based on the judgments of
the researcher. The researchers’ exercises judgment or expertise chooses the elements
to be included in the sample, because he or she believes appropriate.
In this survey, visited the dealers of the cement also to know the strategy of the
companies, especially Ambuja cement to satisfy the customer as they buy the cement of
any particular company…The main purpose of the descriptive research is description of
the state of affairs as they exist at present.

3.6 SAMPLING PROCEDURE
Random sampling has been used in this study. Random sampling is used for selection
of homogeneous sample for the study. It refers to selecting a sample of study objects on
randomly. Thus research study may include study objects, which are randomly located.
Research findings based on random sampling however, cannot be generalized.

3.7. PERIOD OF THE STUDY
The duration of Study is 45 days and during the period, the following steps were taken.





Objectives were set and questionnaire was finalized
Data were collected and recorded
Data were analyzed and interpreted
Reports were generated

37

3.8. SAMPLE SIZE
Pertaining to the limitations of the study, and in consultation with the company
guide and the project guide, the sample size is taken as 100. Due to time and resource
constrains the sample size is taken as 100 People in consultation with the industry
Project guide.
3.9 PILOT SURVEY
A pilot survey with 30 samples was conducted for testing the validity of the
questions. It was found that there was no need for changed in the questionnaire and
hence the same questionnaire was used for final survey also.

3.10 LIMITATION OF THE STUDY



Some customers were not able to understand some of the questions.



The sample size was not enough and it failed to give the picture or the result of
the survey (sample size=100)



Some customers or dealers did not co-operate well.



The questionnaire did not cover the whole aspect of the market potential of
Ambuja cement.

38

SWOT analysis of AMBUJA CEMENT
Strengths:


Leading position in attractive Raipur cement market:



Based on CMA data, Raipur cement manufacturing have consistently operated at
the highest levels of capacity among Raipur regions.
We believe this reflects the strong demand in the Raipur region. For cement
products relative to supply .further, based on capacity expansions announced by
cement manufacturers. We expect cement plants in Raipur to continue to operate
at high utilization levels and anticipate continued strong demand for our cement
product in the near and medium-term. We believe that we well positioned to take
advantages of this demand as the fourth cement manufacturer in Raipur region.
Quality of products and strong brand name:
We believe that brand name and reputation are important to retail purchases of
cement in India.

39

We have built a strong reputation among cement purchases by consistently
providing high quality products. We believe that there is strong customer
awareness of our brand Ambuja cement.
We believe that our brand name and our reputation for consistently supplying
high quality products provide us with a competitive in ensuring that cement
dealers carry our products.

Extensive marketing and distribution network:
We have a wide distribution network in Raipur. We also have a strong all India
distribution network.
Our distribution network consists 44 depots serviced by seven regional sales
offices in Delhi, Haryana, UttarPradesh, Punjab, Rajsathan, Madhya Pradesh
Gujrat, Chatishgad, and Maharashtra.
Experience and technical knowhow:
We have 30 years of experience in the India cement industry, which we provide
us with the skills to maximize production deficiency, expand production capacity
quickly and reduce costs. Over the years we believe that we have developed
long-term customer relationship and a strong reputation for quality in addition.
We have a proven track record of upgrading and modernizing our production
capacities efficiently, having increased our production capacity at nimbahera by
more than 80% from 1.54 million tons in 1998 to 2.8 million tons as of September
2005.
Weakness:


It is at relatively low position in other parts of country.




Low attention on customer relationship management in some parts of the India.
Due to the presence of other cement producers in Raipur and its adjoining areas
the market share of the ambuja cement remains low.

40



It has its own mines reserves but it has to consistently renew the lease failing
which it will have no source of production at its major production site.

Opportunities:


Rural project of state and central governments like dams and bridges can be a



major opportunity for the company.
Company is a part of reputed and huge Ambuja group. So it can expand its
market in foreign areas also utilizing its brand leverage.



Prestigious project can be major opportunities.



It has major opportunities in real estate due to boom the related projects.



Indian infrastructure is seeing a two fold.so there is also a lot of opportunity in the



concemed sector.
Major foreign project of governments can also be a major opportunity.

Threats:


Cost of production is high. So, company needs to reduce the cost of production
and should concentrate on promotional schemes too.




Presence of other big players in Raipur region threat for the company.
Rising cost of new material is also a threat for the company.
MARKETING STRATEGY AMBUJA CEMENT LIMITED:



Segmentation:
The company has segmented the market geographically.it sells its products all
over in India with major presence in Raipur region.



PRICING STRATEGY:
Before deciding the price of the cement company has
Considered the following points:41

COST FACTOR:









Manufacturing cost
Transporting cost
Storing and material handling
Other cost
Officer expenses
Other expenses
Tax and interest
Competitors price and offering

MARKETING STRATEGY:
Company conduct market survey to identify market and customers response,
company position in the market etc. there is R and D department which
continuously trying to improve the quality of the product at the minimum cost and
trying to meet the demand of the customer.
MARKETING STRATEGY FOR COMPETITORS:
Company always keeps an eye over its competitor’s activities and its offerings
like different promotional schemes; product price etc. It also takes proper action
according to competitor’s strategy.

DISTRIBUTION STRATEGY:
The company is distributing cement by following ways:


Direct to customer
Depot
1. Whole seller
2. Retailer
42

Director General of sales and disposal
1. Tender sales
2. Government department
Non trading sales
1. Wegon load
2. Institutional sales
Method for developing dealers:
Company conducts the survey also to motivate the sub dealer and advertise the
programmer. The company takes profile of the dealers and gives dealership only
to those in a particular area where the company is not having already existing
dealer.





Marketing strategy:
To increase sales in high realization.
To develop stockiest consisting of retailer or final outlet which directly sells to
customer.
Increasing sales of the branded cement, ambuja cement.
Marketing distribution network more efficient and cost effective.
The company has a dedicated team of highly skilled professionals and
experienced application engineering. They are functioning in an advisory
capacity. Besides handling their constructional problem the cell offering all kind of
assistance in the selection of the right cement for different application to insure
coat effective, durable and date construction

43

CHAPTER – IV

DATA ANALYSIS AND INTERPRETATION
Data Analysis
The data after collection has to be processed and analyzed in accordance with
the outline laid down for the purpose at the time of developing the research plan. This is
essential for a scientific study and for ensuring that we have all the relevant data.
Processing implies editing, coding, classification and tabulation of collected data so that
they acquiescent to analysis.
The term analysis refers to the computation of certain measures along with
searching for patterns of relationship that exists among data – groups. Thus “in the
process of analysis, relationships or difference supporting or conflicting with original of
44

new hypothesis should be subjected to statistical tests to significance to determine with
what validity data can be said to indicate any conclusions”.
Analysis of data in a general way involved a number of closely related operations
that are performed with the purpose of summarizing the collected data and organizing
them in such a manner that they answer the research questions.

1. Have you purchased Ambuja Cement ever?

Parameters
No. of
respondents
%

YES
70
70

NO
30

10

30

0
10
0

45

NO; 30%

YES; 70%

INTERPRETATION
As given in the pie chart 70% of the customers respondents they are purchased Ambuja
cement and 30% of the customers respondents they are not purchased Ambuja cement
ever.

2. IF YES, how did you come to know about AMBUJA CEMENT?

parameters

No. of

%

1.TV COMMERCIAL
2.DEALER/WHOLE SELLER
3.ARCHITECTURE/Eng.
4.builder

respondents
40
20
25
15

40
20
25
15

46

45%
40%
35%
30%
25%
20% TV COMMERCIAL; 40%
15%
ARCHITERCURE; 25%
10%

DEALER; 20%
BUILDER; 15%

5%
0%
TV COMMERCIAL

DEALER

ARCHITERCURE

BUILDER

INTERPRETATION
As given in the Bar graph 40% of the customers respondents they got information
about Ambuja cement from T.V. COMMERCIAL and 20% of the customers got
information about Ambuja cement from DEALER,25% of the customer got information
about Ambuja cement from ARCHITERCURE/ENG/

and 15% of the customer got

information about Ambuja cement from BUILDER.

3. What are the influencing factors for your preference?

Parameters
1.price
2.quality
3. convenience
4.all of above

No of respondents
20
60
15
05

47

%
20
60
15
05

All of the above; 5%
Price; 20%
Convenience; 15%

Quality; 60%

INTERPRETATION
As given in the pie chart 60 % of the customers preferring Ambuja cement for its better
quality, 15% of the customers preferring Ambuja cement for its convenience, 5% of the
customers preferring ambuja cement for

purchased Ambuja cement for its all quality

and 20% of the customers preferring Ambuja cement for its price.

4. Are you satisfied with AMBUJA CEMENT?

Parameters
Yes
No

No. of respondents
90
10

48

%
90
10

NO; 10%

YES; 90%

INTERPRETATION
As given in the pie chart 90% of the customers are satisfied with the Ambuja cement
and 10% of the customers are not satisfied with the Ambuja cement.

5. Do you think convenience is matter?

Parameters
Yes
No

No of respondents
80
20

49

%
80
20

NO; 20%

Yes; 80%

INTERPRETATION
As given in the pie chart 80% of the customer’s respondent’s convenience is important
and 20% of customer’s respondent’s convenience is not matter.

6. If AMBUJA CEMENT is not convenience to you than will you shift to any other
brand?

Parameters
Yes
No

No. of respondents
95
05

50

NO; 5%

YES; 95%

INTERPRETATION
As given in the pie chart 95% of the customer respondents they want to change their
brand as per their convenience and 05% of the customer’s respondents they don’t want
to change their brand.

7. Are you satisfied with the price as per the quality?
Parameters
YES
NO

No. of respondents
90
10

51

%
90
10

NO; 10%

YES; 90%

INTERPRETATION

As given in the pie chart 90% of the customer’s respondents they are satisfied with the
price as per quality of Ambuja cement and 10% of the customers respondents they are
not satisfied as with the price as per quality of Ambuja cement.

8. If Yes, Do you think the quality is better as compare to the competitors?

Parameters
YES
NO

No. of respondents
70
30

52

%
70
30

NO; 30%

YES; 70%

INTERPRETATION
As given in the pie chart 70% of the customer’s respondents the quality is better than as
compared to other cement company and 30% of the customers are respondents the
quality of Ambuja cement is not better as compared to the competitors.

9. It is reliable as compare to the competitors?

Parameters
YES
NO

No. of respondents
96
04

53

%
96
04

NO; 4%

Yes; 96%

INTERPRETATION
As given in the pie chart 96% of the customers respondents the Ambuja cement is
reliable as compared to the competitors and

40% of the customer’s respondents the

Ambuja cement is reliable as compared to the competitors.

10. Out of 5 which rank you want to give to AMBUJA CEMENT?
Parameters

No. of respondents

%

Good

40

40

Better

15

15

Avg.

30

30

Bad

05

05

54

No reply

10

10

45
40
35
30
25
20
15
10
5
0
GOOD

BETTER

AVG.

BAD

NO REPLY

INTERPRETATION
As given in the Bar graph 40 of the customers respondents the Ambuja cement is
GOOD, 15 customers respondents its BETTER,30 customers are respondents its
AVERAGE,5 customers are respondents its BAD and 10 customers are not responds.

55

CHAPTER – V

SUMMARY OF FINDINGS


Customer satisfaction with respect to the AMBUJA CEMENT is satisfactory.



Despite the increasing cost of the raw material the company is able to bring down
the cost of the manufacturing through procurement of raw materials by the mines
which are located nearby.



Customers come to know about AMBUJA CEMENT mainly from hoardings many
people are illiterate.



Customers want more prizes and dealers want more incentives, gift and tours.
56



Dealers also want more meeting with officials of the cement companies.



Bulk consumers want more and more cash discount.

57

CHAPTER – VI

RECOMMENDATIONS



The company should concentrate on more aggressive advertisement to
promote their products.



The company should launch more and more promotional schemes like two
for the price of one “or more discount coupons.



Company should do more to promote their brand as customers prefer
good brand while buying any cement.



Customer prefer price as an important factor while buying any cement so
the company should fix the price accordingly.
58

CONCLUSIONS



Company should concentrate on direct meeting with the customer as they
are the most vital element in deciding the growth or decline of any
company.



Company should decrease the response time to the complaint received.



The company should fix certain amount of cement especially for the
dealers and give them free of cost as incentives.



The company should appoint more and more persons for the promotions
of the brands.



Company should decrease delivery time of the cement.

59

CHAPTER – VI1

60

BIBLIOGRAPHY
Books referred:




Marketing research-----Naresh kumar malhotra, Pearson edition.
Marketing management --------Philip kotler, Pearson edition.
Customer satisfaction research management------Derek allen,Pearson edition

Journals/newspapers:




Annual journal of ambuja cement
Labour and industrial chronicle
Indian cement review

Web sites:




www.ambujacement.com
www.google.com
www.wikipedia.com

61

Annexure

S.No:

Date:
QUESTIONNAIRE

Name of……………………………………………………………………………………..
customer..........................................................................Center..............................
Postal address...........................................................................................................
Contact no……………………………………………………………………………………

1Q. Have you purchased AMBUJA CEMENT ever?
YES [

]

NO [ ]

Q2. IF YES, How did you come to know about AMBUJA CEMENT?
a.TV commercial

b.Dealer/wholesaler

c.Archi/Eng

d.Builder

Q3. What are the influencing factors for your preferences?
a.Price

b.Quality

c.Convenience

d.All of above
62

Q4. Are you satisfied with AMBUJA CEMENT?
Yes [ ]

No [

]

Q5. Do you think convenience is matter?
YES [

]

NO [

]

Q6. IF the AMBUJA CEMENT is not convenience to you than will you shift to other
brands?
YES [

]

NO [

]

Q7. Are you satisfied with the price as per the quality?
YES [

]

NO [

]

Q8. IT is reliable as compare to the competitors?
YES [

]

NO [

]

Q9. IF YES, Do you think the quality is better as compare to the competitors?
YES [

]

NO [

]

63

Q10. Out of 5 which rank you want to give to the AMBUJA CEMENT?
a.GOOD

b.BETTER

c.AVERAGE

d.BAD

e.NO REPLY

64