A

STUDY
ON
DEALERS AND CUSTOMERS SATISFACTION
FROM

ZUARI CEMENT LIMITED

PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT

FOR
The Award of
MASTER’S IN BUSINESS ADMINISTRATION
Submitted by
SHAIK SHABBIR ALI
(H.T.NO.07507116)

NIZAM INSTITUTE OF ENGINEERING &TECHNOLOGY

DEPARTMENT OF BUSINESS MANAGEMENT
DESHMUKHI, NALGONDA DIST.
(AFFLIATED TO OSMANIA UNIVERSITY)

(2007-09)
 DECLARATION

I here by declare that this project report titled “DEALERS AND

CUSTOMERS SATISFACTION’’ From ZUARI CEMENT submitted by me to the
department of Business Management, Nizam Institute of Engineering & Technology,
Osmania University is a bonafide work undertaken by me and it is not submitted to any
other university or institution for the award of any degree, diploma/certificate or
published any time before.

SHAIK SHABBIR ALI

H.NO: D-3, MILK FACTORY QUARTERS,
YERRAGUNTLA ROAD,
PRODDATUR, KADAPA DIST

DATE:

Signature of the candidate

 ABSTRACT

The satisfaction of customers and dealers in cement industry plays very important
role in market to improve the sales and distribution of the product. In this we use
number of techniques and channels to develop the market. In cement industry we
found that competition of other brands is very high. To face this competition we take
the satisfactory decisions for customers and dealers

Here my study is on customers and dealers preference towards the product. In this
by observing of this project report we collect the valuable information from dealers
and customers of the product and then we suggest the right decisions to improve the
market.
 ACKNOWLEDGEMENT

I take this opportunity from Mr. M.Venkateswara reddy

(sales officer) and T.A.Pavan kumar who allowed me to undertake my project at
ZUARI CEMENT Industries and took time out of his busy schedule to guide me and
provide the information required for my study.

I take this opportunity to thank our director Sir,

Prof.R.KONDAL REDDY of NIZAM INSTIUTE OF ENGINEERING &
TECHNOLOGY DEPARTMENT OF BUSINESS MANGEMENT, for his
encouragement doing the project work.

I would like to thank Mr.S.Abdul Aleem faculty of marketing

for his guidance and suggestions and his kind help and motivation in completing the
project.

I take this opportunity to express my deep and sincere gratitude

to the management of ZUARI CEMENT for their gesture of allowing me to undertake
this project and its various employees who lent their hand towards the completion this
study.

(SHAIK SHABBIR ALI)

 CERTIFICATE

This is to certify that the project report titled “DEALERS AND CUSTOMERS
SATISFACTION” FROM ZUARI CEMENT submitted in partial fulfillment for the
award of Master of Business Administration was carried out by SHAIK SHABBIR ALI
under my guidance. This has not been submitted to any other university or institution for
the award of any degree /diploma /certificate.

DATE:
PLACE:

Signature of the supervisor

 CONTENTS

List of tables

List of figures

CHAPTER-1. INTRODUCTION

CHAPTER-2. LITERATURE REVIEW

CHAPTER-3.THE COMPANY PROFILE

CHAPTER-4. DATA ANALYSIS & PRESENTATION

4.1 Presentations and Analysis

4.2 interpretations

CHAPTER-5. SUMMARY AND CONCLUSION

BIBLIOGRAPHY

APPENDICES

APPENDIX A- Organisational structure

APPENDIX B- questionnaires
 LIST OF TABLES

Table Table titles Page no

No

1 Nature of business

2 Monthly turnover in tons

3 Dealing in brands

4 Sales according to the brands

5 Ranking according to the quality

6 Opinion of price compare to other brands

7 Factors influencing the customers

8 Major customers of ZUARI cement

9 Dealers satisfaction about distribution

10 Preference for construction

11 Awareness of ZUARI cement.

12 Factors to buy ZUARI cement

13 Preference of grade

14 Quality of ZUARI cement

15 Service of dealer

LIST OF CHARTS
Chart Chart titles Page no
no

1 Nature of business

2 Monthly turnover in tons

3 Dealing in brands

4 Sales according to the brands

5 Ranking according to the quality

6 Opinion of price compare to other brands

7 Factors influencing the customers

8 Major customers of ZUARI cement

9 Dealers satisfaction about distribution

10 Preference for construction

11 Awareness of ZUARI cement.

12 Factors to buy ZUARI cement

13 Preference of grade

14 Quality of ZUARI cement

15 Service of dealer
 CHAPTER - 1

INTRODUCTION
 INTRODUCTION

Cement industry is one of the major and oldest manufacturing industries in Indian economy. It is
an indigenous industry in which the country is well endowed with all necessary raw materials,
skilled manpower, and machinery, equipment and technical know how. It is one of the key
capital-intensive energy and transport intensive industries in India. It produces a commodity that
enters into a carious construction investment and welfare activities in almost every segment of the
economy. It contributes to development of civilization. It is a vital industry, which assumes a
crucial part. In the economic growth and development of a country.

Cement was produced for the first time in India in 1904 by South India Industries Limited
Madras. That unit which had and installed capacity of 30 tons per day was based on time for sea
shell and defunct very soon by 1930, how ever three units started their operations which a
combined installed capacity of 7500 T.P.A. in 1914 indigenous production fell for short of
domestic demand necessitation in import of 1,65,725 tons shipment difficulties and foreign trade
restrictions during the first world war years. Acted as incentive to the development indigenous
industry and by 1924. The total installed capacity grows to 5,59,800 T.P.A. the capacity
utilization rate however remained unsatisfactory partly due to large scale import cut throat
competition and resultant price decline in the post war.

The present production of cement is around 75 million tons per year. The Govt. Of India have
made brave plans for increasing the cement production capacity. For the production of cement,
India is divided into four zones via East, West, South, North. The cement factories are more in
the south region. AP comes under south zone. Among 99 large cement plants, 200 mini cement
plants in India, out of them 18 major cement plants are in AP only.
 NEED FORTHE STUDY

In the present era there is a high competition in cement Industry. There is no substitute for the
cement. Because cement has high Demand in the market. There is heavy competition from other
brands like ultratech, ACC, Ambuja, Priya, Raasi, penna, Coramandal, Maha, Birla A-1 and so
many brands.

Dealers and customers are very important for any industry. If dealers and customers are
satisfied then the sales of the product increased. Because dealers and customers satisfaction is
very important. The dealers and customers are satisfied with the Price, Quality, Transportation
facility, Credit facility, Margins with the product, etc., and then they use more number of bags. If
the dealers sell much quantity then the company gets more profits. Because dealers satisfaction is
also very important. For this reason we make a study on the dealers and customers satisfaction
from ZUARI CEMENT

Customers are the pillars of any business of the organization. Customer awareness and
satisfaction leads to customer loyalty. Which is highly essential. In order to survive in the market,
companies have to take care of customer awareness and satisfaction. So the present study is
carried bout in the wheelers industry regarding the customer awareness and satisfaction, for
further improvement in the aspects of products, sales…etc.
 SCOPE OF THE STUDY

The market survey was conducted in kadapa district. The size of the dealer’s survey was 45 and
customer’s survey was 80.

Limitations of the study:

 The period of the study was very short period.

 Sampling size of dealers is 45.

 Sampling size of customers is 80.

 The research was conducted in kadapa district only.

 Only few statistical tools were used for analysis.

 There were chances of biased answers from the respondents.

 OBJECTIVES

 To study dealers and customers awareness towards zuari cement.

 To study the factors influencing the dealers while purchasing zuari cement.

 To study the factors influencing the customers while purchasing Zuari cement.

 To study the promotional activities of zauri cement.

 To identify the problems and suggestions for further improvement of zuari sales.
 RESEARCH METHODOLOGY

To fulfill any task, it is necessary to follow a systematic method. Research methodology is the
main aspect of research studies. The methodology follow by research is detailed here.
Types of Research:
The research was of descriptive design; aim to procure a clear, complete and accurate description
of the situation.
Data Source:
Data was taken mostly through primary data. However company and product profiles were
referred too. A structured UN-disguised interview schedule was designed to collect the data
source. The schedule method was opted since the method would help to concise amount of
information.
Interview Schedule Design:
A good care was taken by the researcher to design the schedule. All the objectives were taken into
consideration while designing the handout. More of the closed and few ended questions were
asked for the survey.
Types of Questions Used:
The questions constitute of closed – ended and open – ended once. Open – ended questions were
asked to get the ideas and suggestions from the respondents. Moreover other than those
mentioned in the questionnaire were asked to be specified. Closed – ended questions included
dichotomous, multiple choice and ranking question. Rating scale was also included.
Study Area:
The survey was conducted in kadapa district.
Period of Study:
The study was held during the period of Jan – Mar 2009.
Contact Method:
In order to minimize the bias and dislike in data collection, the method of personal interview was
adopted. The dealers were met in their shops and the customers were met in their construction
places.
Sampling Techniques:
The sampling techniques was used for the survey was convenience sampling.
Sampling Size:
The sample size of dealers was 45 and sampling size of customers was 80.
Tools used for Analysis:
Graphical representation was done through:
Column Charts
Doughnut Charts
Pie Charts
Cylinder Charts
Cone Charts
The statistical tools used for the Analysis are:
Percentage Analysis:
The researcher has used percentage analysis to study the relationship between two or more
variables.
Cross Tabulation:
The method of analysis used most often in marketing research is cross tabulation. This involves
planning the collected data into tabular form, so the true meaning can be extracted.

Characteristics of Research

It is a systematic and critical investigation into a situation of phenomenon

It is not a mere compilation, but a purposive investigation it aims at describing interpreting and
explaining the problem,
It is based on observable experience for empirical evidence.
Research is directed towards finding answers to related questions solutions to the problems.
The purpose of research is not to arrive at an answer, which is personally pleasing to the
researcher but rater one, which will stand up the test of criticism.
 Significance of research:

“All progress is born of inquiry. Doubt is often better than over confidence, for needs to inquiry
and inquiry leads to invention”, is a notable quotation in context of which the significance of
research can well been understood. Increased amounts of research make possible progress.
Research inculcates scientific and inductive thinking and it promotes the development of logical
habits of thinking.
 CHAPTER - 2
REVIEW OF LITERATURE
Marketing:

Marketing is typically seen as the task of creating, promoting and delivering goods and services
to consumers and businesses. Marketers are skilled in stimulating, demand for a company’s
products, but this is too limited a view of the tasks marketers performs. This task is performed
with goods, services, experiences, events, persons, places, properties, organizations, information
and ideas.

Marketing is human activity that is directed at satisfying needs and wants through
exchange process.

Marketing has been viewed as an ongoing or dynamic process involving a set of various
activities involved in generation of makers and also satisfying customers through the distribution
of quality products and services. It deals with market information, product development, pricing,
physical distribution, policies and decisions.

“ Marketing is a process by which individuals and groups obtain what they need and
want by creating and exchanging products and values with each other”.

“ Marketing is a tool system of interacting business activities designed to plan promote

and distribute needs satisfying products and services to the existing and potential customers”.

Marketing Research:

It is the systematic and objective search for the analysis of information relevant to the
identification and solution of any problem in the field of Marketing.

“industrial Marketing is a human activity directed towards satisfying wants and needs of
organization through the exchange process”.
Exchange transaction consists of product exchange, information exchange, financial
exchange and social exchange. Industrial markets are geographically concentrated having
relatively few buyers facing oligopoly competition. Their products are customized & with
technical complexity which is important in terms of service delivery and availability. These
marketing involve buyers functionally maintaining interpersonal relationships predominating
technical expertise. In these types of markets emphasis is laid on personal selling of product
including lint pricing on standard items and negotiation on complex purchase. Channels of
distributions are shorter, more direct and with fewer linkages.

Industrial Customer Consists:

Industrial Distributors (Dealers)

Commercial Original Equipment manufacturers

Enterprises

End Users

Marketing channel composes of outlets through which a manufacturer’s goods. May flow to
market. It involves the way these outlets are related to each other and to the manufacturer as well
as the king of direction and control the manufacturer exerts.

The types of outlets available and the functions they perform represent the structural
elements of channel strategy. They have an important part in actuating the strategic plan and
form the principal constraints within which it must operate some distribution outlets such as
manufacturer’s branch houses are part of the internal organization structure of the firm. Others
such as distribution or wholesales, manufacturers, agents, sales agents, etc. are usually
independently owned and operated enterprises.

Industrial distribution is identified as middleman who buyy and sell products for
industrial used.

A channel of distribution can be structured according to one of three general patterns as

mentioned below.
The indirect channel usually involves substantially lower cost but rectifies the manufacturer
control.
The mixed channel offers a way of trading of control and co it on an area by is basis.

Whatever may the strategic choice the marketer, he must support it with a well-planned set of
channel policies.

Industrial Marketing Channels:

Zero Level:

In this level manufacturer selling directly to the final customer.

Manufacturer Customer

One Level:

A one level channel contains on selling intermediary, such as Dealer. Companies gives some
authorized recognition to the dealers.

Industrial
Manufacturer Distributor Customer
(Dealer)
Two Level:

A two level channel contains two intermediaries, such as Dealers and Sub dealers

Manufactur Industrial Sub

Distributor
er Dealer
(Dealer)

Customer
Three Level:

A three level channel contains three intermediaries. In the cement industry,

Manufacturers Sales Branch, Dealer, Sub dealer contains three level channels.

Industrial
Manufacture Manufacturers
. r Distributor
Sales Branch
(Dealer)

Sub
Customer Dealer

DEALER:

A person who acts as a middleman between the producer and the buyer is called as a dealer.
Dealer simply gets an order out of from the buyer and processes it on to the producers. This
process of getting orders from the buyers and delivering the goods to them by acquiring them
from the producers is called as dealership.

IMPORTANCE OF DEALER:

Dealer occupy a predominate position in the channels of distribution network; particularly in a

wide spread economy where producers cannot offered to sell directly to the retailers or customers.
 CHAPTER - 3
COMPANY PROFILE
 INDUSTRY PROFILE

CEMENT INDUSTRY –AN OVERVIEW

Cement is the preferred building material in India. It is used extensively in household and
industrial construction. Earlier, government sector used to consumer over 50% of the total cement
sold in India, but in the last decade, its share come down to 35% Rural areas consume less than
23% of the total cement. Availability of cheaper building materials for non-permanent structures
affects the rural demand.

Demand for cement is linked to the economy activity in any country. Broadly, it can be
categorized into demand for housing construction (homes, offices etc) and infrastructure creation
(ports, roads, power plants etc). The real driver of cement demand is creation of infrastructure;
hence cement demand in emerging economies is much higher than developed countries where the
demand has reached a plateau. In India too, the demand for cement will be affected by spending
on infrastructure (including housing).

With the boost given by the government to various infrastructure projects, road network and
housing facilities, growth in the cement consumption is anticipated in the coming year. The
favorable housing finance environment is expected to fulfill the vas housing requirements, both in
rural and urban areas. The increase in infrastructure projects by the government couple with the
construction of Global Quadrilateral and the North – South and East- West corridor projects have
led to an increase in consumption of cement. This increase is expected to continue in the future.
The reduction in import duties is not likely to affect the industry as the cement produced is at par
with the international standards and the prices are lower than those prevailing in international
markets.
Cement is a typical industry, characterized by the boom and bust syndrome. A huge potential
market and rapid growth in the early stages lead to a surge in interest and a flurry of research. The
projected growth rates point to a lucrative market. The buoyant markets and huge profits raked in
by players tempt more players into the market. Capacities increase in excess of demand and a glut
in capacity is created. Competition increases, prices fall and margins come under pressure.
Competition addition comes to a halt; weaker players shut ship or sell off to larger ones. Demand
catches up and the cycle is repeated all over again. Perhaps, of all the cyclical industries, the
Indian cement industry exhibits this boom-and bust cycle most visibly.
Consider the following:
Temptation

A huge potential market, easy availability of raw material and cheap labor leads to a flurry of
activity and a surge of interest. The easiest way to estimate the potential that exists is the per
capita consumption of cement, which is abysmally low in India at 82 kgs as against a world
average of 255 kgs and the Asian average of 200 kgs. Although the growth of the industry
depends more on the level of consumer spending rather than on the per capita consumption,
nevertheless, it serves as an easy bench mark to estimate that exists.

Fuel to Fire

The projected growth rates in demand (based on the potential per capita consumption growth or
other drives like the expected GDP growth rate) fuels stock market rallies. Consider the boom in
cement stocks in 1994. Every cement company was attracting valuations it never dreamt about.
Scarcity induced by lower capacities and to a large extends on non-availability of power, drove
cement prices to hilt. The kind of money minted by most cement companies as well as investors
in that period made strategists plan enormous increase in capacity. This explains why capacity
creation starting 1994, was so enormous.

Government controls

The prices that primarily control the price of cement are coal, power tariffs, railway, freight
royalty and cess on limestone. Interestingly, all of these lrices pare controlled by government.

Coal

The consumption of coal in typically dry process system ranges from 20-25% of clinker
production. This means for per ton linker produced 0.20-0.24 ton of coal is consumed. This
contributes 35-40% of the production cost the cement industry consumes about 10mm tons of
coal annually. Since coalfields like BCCL supply a poor quality of a coal. NCL and CCL the
industry has to blend high grade coal with it the Indian coal has a low calorific value (3,500-4,000
kcal / kg) with as content as high as 25-30% compared to imported coal of high calorific value
(7,000-8,000 kcal /kg) with low ash content 6-7% lignite is also as a fuel blending it with coal
however this process is not very common.

Electricity

Cement industry consumes about 5.5bn units of electricity annually while one ton of cement
approximately requires 120-130 units of electricity power tariffs vary according to the location of
the plant and on the production process. The state government supplies this input and hence
plants in different state shall have different power tariffs. Another major hindrance to the industry
is service power cuts most of the cement producing states like AP, MP, experience power cuts to
the tune of 25-30% every causing substantial production loss.

Infrastructure

To reduce uncertainty relating to power, most of the leading companies like ACC, Indian Royan,
and Grasim rely on captive power plants a few companies are also considering power –generating
windmills.

Limestone

This constitutes the largest bulk in terms of input to cement for producing one ton of cement,
approximately 1.6 ton of limestone is required therefore the cement plant location is determined
by the location of limestone mines. The major cash outflow takes place in way royalty payment to
the central government and cess on royalties levied by the state government the total limestone
deposit in the country is estimated to be 90 billion tons. AP has the largest share 34%, Karnataka
13%, Gujarat 13% ,M.P.8% and Rajasthan 6.5% the plants near the limestone deposit pay less
transportation cost than others.
Transportation

Cement is mostly packed bags now. It is then transported either by rail or road. Road
transportation beyond 200 kms is not economical therefore about 55% cement is being moved by
railways. Therefore is also the problem of inadequate availability, under this scenario,
manufactures are looking for sea routes, this being not only cheap but also reducing the losses in
transit. Today 70% of he cement movement worldwide is by sea compared to 1% in India.
However, the scenario is changing with most of the big players like ULTRA TECH, ACC and
Grasim have set up their bulk terminals.

Infrastructure for Future

The consumption of cement is determined by factors influencing the level of housing and
industrial construction, irrigation projects, roads and laying of water supply and drainage pipes
etc, the level and growth of GDP and its sect oral composition, capital formation, development
expenditure, growth in population, level of urbanization, etc, in turn, determine these factors. But
the domestic demand for cement is mainly from the housing activities and infrastructure
development. The government paved the way for the entry of the private sector in road projects. It
has amended the National Highway Act to allow private toll collection and identified projects,
bridges, expressways big passes for private construction the budged gave substantial incentives to
private sector construction companies ongoing liberalization will lead to an increase in industrial
infrastructure development. So it is hoped that Indian cement industry shall boom in near feature.
 NATURE OF INDUSTRY

Installed Capacity
India is not the world’s second largest cement producing company after china. The industry is
characterized by a high degree of fragmentation that has created intense competitive pressure on
price realization. Spread across the length and breadth of the country, there are 120 large plants
belonging to 56 companies with an installed capacity of around 135mm tons as on March 2002.

State wise Capacity

As cement is a low value commodity, freight costs assume a significant proportion of the final
cost. Transporting costs render the prices of cement in distant destinations uncompetitive. For
instance, it is financially infeasible to transport cement by road over 250 kms. Railways are
mostly used to transport cement over longer distances. However, its bulky nature and
infrastructure bottlenecks render even rail transport unviable over very long distances (that is why
Madras Cements or Indian Cements, located in the south, can hardly make a difference to the
fortunes of west-based companies like Gujarat Ambuja) Therefore, manufactures tend to sell
cement at the nearest market first and sell in distant markets only if additional realizations is
greater than freight costs incurred this highlights the region nature of the cement.
CEMENT INDUSTRY IN INDIA

The Indian cement industry is at fourth in the world and by 2010 it expects to be next to China.
With a total of 54 million tons during 1993, from the both large and mini plants, cement
consumption in India is equal to that of wheat. This marked cement the largest consumed
commodity in the country after rice and wheat innumerable technological development has been
taken place in cement production the wet kilns of the 70’s will replace by dry kilns, reducing fuel
cost of 30%. Further improvement in thermal efficiency was obtained by installation of preheats
and further by addition of precalcinators. Finally computerization and quality control or raw
material in optimal usage of fuel and power.

Position of Cement Industry in India:

The eighth-plant document gave the targeted capacity and production as 900 million tons and 76
million tons respectively. This includes export target of 5 million tons placing the domestic
demand at 71 million tons. The industry is well on the way to achieving this target in 1996 – 97.

Forecast of Cement Demand:

The Indian Institute of Management has forecasted a minimum demand of 84.81% million tons
and a maximum demand of 107.5% by 2001 – 02. The corresponding forecast by the National
Council of Applied Economic Research is 93.89 million respectively. The demand estimates 90
tons of 1997 – 98, 86 million tons for 1998 – 99, 94 million tons for 1999 – 02, 100 million tons
if economic growth shows further acceleration. The demand for the cement could be even higher
than the projected levels.

Consumption of Different Varieties:

The quality of Indian cement is matches the best in the world, with increased production and
usage to go global, quality assumes paramount importance. The physical and chemical
characteristics of ISO standards are equivalent to most of the international specifications.
Perception is the process by which an individual selects, organizes and interprets information
inputs to create a meaningful picture of the world.
Perception is the one of the most important psychological factors affecting human behavior. It
affects the out come of behavior; this is so because people act on the basis of what they see.
Hence, in understanding human behavior and in order to bring integrated behavior from the
employees, it becomes imperative for the management to recognize the managerial implications
of the perception.

What is Cement?

Cement is a binding material, which is obtained by binding calcareous silicon argillaceous raw
material mixed in definite proposition n and crushing the resultant clinkers to a fine powder.
Bricklayer named “Joseph Asp Din” in 1824 first introduced cement into use. It is the most costly
ingredient in available in a variety of forms. The properties of cement are dependent upon
chemical composition and the process adopted to manufacture and the degree of fineness.
Limestone is the most important for the cement products. It is also known as white gold.

Composition of Cement:

The chemical analysis of the cement is as follows:

Limestone 75% Limestone

Coke Benzene 12% to 13% Iron ore Rawmill
Additive 2% Bauxite
Gypsum 5%
Kiln Granules called clinker

Cement mill
(Clinker + Gypsum)
Finished
 ROLE OF CEMENT INDUSTRY IN ANDHRA PRADESH

In Andhra Pradesh there are many cement plants due to abundant availability of raw materials
i.e., limestone. There are 18 major cement plants (whose installed capacity is more than 1500 tons
per day) and more than 20 mini cement plants (whose installed capacity is up to 600 tons per
day).

Andhra Pradesh has a total installed capacity of 11.70 million tons from large or major cement
plants and 1.55 million tons from mini cement opulence as against the countries total installed
capacity of 70.00 million tons (approx.). Some of the major cement plants in Andhra Pradesh.

ACC Cement
Orient Cement
Kakatiya Cement
Zuari Cement
Andhara Cement (2 plants)
India Cements Ltd. (3 plants – coromandal)
Raasi Cement
Priyadarshani Cement
Sri Vishnu Cement
Penna Cement
 COMPANY PROFILE

Inception:

ZUARI CEMENT is a joint venture company with K.K. Birla Group. Zuari industries limited and
ltal cement group at RS. 4000 Crore conglomerate, ZUARI CEMENT has with in a short time –
span made its, presence felt in the cement industry. It has done so by making top quality cement
consistently and won the confidence and trust of millions in the country.
ZUARI CEMENT LTD. is running under the flagship of Zuari industries Ltd. The unit is situated
at Yerraguntla,kadapa district in Andhra Pradesh. The production of the plant is 6500 T.P.D.,
which is based upon dry process pre-heated technology.

Previously the present Zuari cement was known as Texmaco cement. Later in the year 1994,
Zuari Agro chemicals LTD took the so-called Texmaco cement. After taken over by the Zuari
industries Ltd., it was restructured with several modifications in various units like processing
units, production units and the other vital areas and achieved the normal production capacity of
6500 T.P.D. The initial investment of the production was RS. 32 Crores and the year of the
commencement of the production was 1985.

Sources of Raw Material:

The core raw materials required for the manufacture of Zuari cement plant are limestone, iron
core, bauxite and gypsum. The limestone is been excavated from the plant in the leased area.
Another vital called coal is supplied by Singareni Collieries Co. Ltd., and Western Coal Fields by
surface transport plant, the required water for the process is being met from bore well located in
the plant site. Zuari cement manufactures both 43 & 53 grade and super fine and offers superior
quality products monitoring at each stage of production process with the help of computerized
controlled system.
Advantages of Zuari Cement:

With a superior and wide range of cement catering to every conceivable building need, Zuari
cement is today a formidable player in the cement market. Here are just a few reasons why Zuari
cement is the choice of millions of India.
 Very low free lime content and high proportion of silicates, providing silicate gels of high
impermeability, makes Zuari cement extremely resistent to acids, alkalis, chlorine and
sulphur. Lowest magnesia content ensures reduced tensile cracks.
 Owing to greater fineness of Zuari cement, the concrete obtained is dense and highly
impermeable. Hence, it is free from segregation, honey combing. This prevents the
passage of air and water through the harden concrete.
 The water requirement for the Zuari cement is less because of very low lime content. This
leads to low heat of hydration and drying shrinkage. As a result, cracks do not appear in
the concrete.
 Slow initial and fast final setting of Zuari cement gives work ability. More 53 grade gives
higher early strengths enabling faster deshuttering of framework, there by saving time
and construction cost.
 Captive power plant with diesel genesis takes care of 80% of the total power requirement.

Five Strong Benefits That Make Zuari 53 & 43 Grade The Ideal Cement:

 Higher compressive strength

 Lower heat of hydration
 Lesser consumption of cement for M – 20 concrete grade and above
 Faster deshuttering of framework.
 Reduced construction time
Zuari Super Fine - The Finest Blended Cement:

Zuari super fine is manufactured by using Pozzolonic material of uniform particle size
distribution, which is collected from electrostatic precipitators of efficient powerhouses.

Zuari Superfine Provides:

 Concrete of better strength and work ability, since voids for air and water are reduced.
 Protection against alkali aggregate reaction due to the presence of very glassy state of
silica.
 Resistance towards chemical attacks and lowers permeability.
 Long-term durable concrete, because of low frees lime.

The tradition of offering to the market “reliable and consistent quality” has led to wide spread
growing preference by customers for Zuari cement.
Conventional markets catered by Zuari are AndhraPradesh, Tamilnadu, Karnataka, Kerala and
Goa etc. In these markets Zuari over the period has maintained and rural markets, supported by
company run warehouses and marketing offices at strategic locations afford Zuari a competitive
advantage in the market.
Zuari has developed distribution-added delivery systems entailing optimum mix rail and road
dispatch at minimizing the freight costs and ensuring prompt deliveries.
With total commitment towards consumer satisfaction, company is confident offered the best
available services.
 ZUARI CEMENT
PRODUCT PROFILE
QUALITY CEMENT FOR QUALITY LIFE

Today Portland Pozzalana cement is an essential commodity on which our modern

standard of living is greatly dependent. Buildings, water supplies projects, dams, bridges, gydro
electric power projects, and seaports, especially for plastering and slab purpose.

Cement is manufactured either by wet process or dry process or semi-dry process

remains popular for many years. With the modern development of technique of dry mixing of
powdered materials using compressed air, the dry process gained momentum. Now days in most
of the plants, cement is being manufactured by dry process.

The raw materials consisting of lime stone, iron ore and bauxite, in the correct
propositions are fed into a grinding mill where they are reduced to a very fine powder, it i8s
further blended and corrected for the right composition and mixed by means of compressed air.
The powder from the storage soils is fed into rotary kiln through preheated cyclones. In the rotary
kiln, the material is subjected to temperature of about 1500 chemical reactions takes place
between the various materials resulting the formation of cement compounds.
 MAJOR TYPES OF CEMENT

1. ORDINARY PORTLAND CEMENT (OPC)

33 GRADE - IS 269 (1976)
43 GRADE - IS 8112 (1989)
53 GRADE - IS 12269 (1987)
2. PORTLAND POZZOLONA CEMENT (PPC) - IS 1489 (1989)
3. PORTLAND SLAG CEMENT (PSC) - IS 455 (1989)
4. SULPHATE RESISTING CEMENT (SRC) - IS 12330
5. LOW HEAT Portland CEMENT (LHC) - IS 269
6. HYDROPHOBIC CEMENT - IS 8043
7. WHITE CEMENT (WC) - IS 8042
8. OIL WELL CEMENT (OWC) - IS 8229
9. AILWAY SLEEPER CEMENT - IRST 40 (1985).
 MANUFACTURING PROCESS

Process:

There are two types of making cement namely the wet process and the dry process.
In the dry process lime stone and clay are fed into a grinding mill. Where it is heated dry and
reduced to a fine powder called low meal. In the modern dry process plants, the raw meal is
mixed with water to form modules. These modules are then fed into a moving crate. Though hot
gases from the rotary kiln are passed here they are partially calumniated. The calculated modules
then passes into a short rotary kiln where they are burnt to form clinker, in another method it
known is suspension preheated system.
The clinker obtained by this process is allowed to cool, then fed into grinding mill here along
with a small quantity of gypsum. It is reduced to a very fine powder. Gypsum is added to the
cement in order to control the setting time of current during the placing of concrete and water, the
cement produced will be stocked and conveyed for packing.

Types of Cement:

Ordinary Portland Cement

Portland Slag Cement
Portland Pozzolana Cement
Rapid – Harden Portland Cement
High – Alumina Cement
Oil Well Cement
White Cement
Acid Resistant Cement
 CHAPTER – 4

DATA ANALYSIS
&
INTERPRETATION
1. NATURE OF THE BUSINESS

S.NO. CATEGORY NO. OF PERCENTAGE

DEALERS
1. WHOLESELLER 2 4.5%
2. RETAILER 0 0%
3. DEALER 43 95.5%
4. SUB-DEALER 0 0%

INFERENCE: From the above table it is inferred that dealers plays important role
in the distribution – 95.5% and followed by whole seller – 4.5%.
 NATURE OF THE BUSINESS

120.00%
100.00%
PERCENTAGE

80.00%
60.00% Series1
40.00%
20.00%
0.00%
Whole Retailer Dealer Sub-
Saler dealer
CATEGORY
 2. MONTHLY TURNOVER IN TONS.

S.NO. PARTICULARS NO. OF PERCENTA

RESPONDENTS GE
1. 10 - 30 TONS 3 6.6%
2. 31 – 70 TONS 7 15.5%
3. 71 – 150 TONS 10 22.2%
4. 151-200 TONS 12 26.6%
5. ABOVE 200 TONS 13 28.8%

INFERENCE: From the above table it is found that the above 200 tons is dealer
by 28.8% and followed by 151 - 200 tons -- 26.6%, 71 – 150 tons –
22.2%.
MONTHLY TURNOVER IN TONS

Percentage

7%
28% 16% 1
2
3
4
22% 5
27%
3. DEALING IN BRANDS (DEALERS)

S.NO. BRAND NAME NO. OF PERCENTAGE

RESPONDENTS
1. ZUARI 45 100%
2. PENNA 15 33.3%
3. COROMANDAL 7 15.5%

INFERENCE: From the above table it is found that 100% of the dealers dealing
with zuari and followed by Penna – 33.3%Coromandal – 15.5%
 DEALING IN BRANDS

120.00%
RESPONDENTS

100.00%
80.00%
NO. OF

60.00% Series1
40.00%
20.00%
0.00%
Zuari Penna Coromandal
BRAND NAME
4. SALES ACCORDING TO THE BRANDS

S.NO. BRAND NAME NO. OF PERCENTAGE

RESPONDENTS
1. ZUARI 28 62.2%
2. PENNA 12 26.7%
3. COROMANDAL 5 11.1%

INFERENCE: From the above table it is found that 62.2% of the Sales
is zuari and followed by Penna – 26.7%Coromandal – 11.1%
 SALES ACCORDING TO THE BRANDS

80.00%
PERCENTAGE

60.00%
40.00% Series1
20.00%
0.00%
Zuari Penna Coromandal
BRAND NAME
5. RANKING ACCORDING TO THE QUALITY

S.NO. BRAND NAME NO. OF PERCENTAGE

DEALERS
1. ZUARI 32 71.1%
2. PENNA 9 20%
3. COROMANDAL 4 8.9%

INFERENCE: From the above table we found that the rank of the quality brand is
71.1%.
 RANKING ACCORDING TO THE QUALITY

70.00%
60.00%
PERCENTAGE

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Zuari Penna Coromandal
BRAND NAMES
6. DEALERS OPINION IN ZUARI CEMENT PRICE COMPARABLE
TO OTHER CEMENT PRICES

S.NO. OPINIONS NO. OF PERCENTAGE

DEALERS
1. HIGH 41 91.1%
2. MEDIUM 4 8.9%
3. LOW 0 0%

INFERENCE: From the above table it is found that the 91.1% of the dealers fell high.
 DEALERS OPINION IN ZUARI CEMENT
PRICE COMPARABLE TO OTHER
CEMENT PRICES

100.00%
PERCENTA
50.00%
GE
0.00%
High Medium Low
OPINION
7. FACTORS INFLUENCING THE CUSTOMERS

S.NO. PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
1. PRICE 0 0%
2. QUALITY 36 80%
3. BRAND IMAGE 8 17.7%
4. ADVERTISEMENT 1 2.22%

INFERENCE: From the above table it is found that the 80% of the customers fell that
quality of Zuari cement is good.
 FACTORS INFLUENCING THE
CUSTOMERS

80.00%
60.00%
PERCENTA
40.00%
GE
20.00%
0.00%
Price Brand Image
PARTICULARS
8. MAJOR CUSTOMERS OF ZUARI CEMENT

S.NO. CUSTOMERS NO. OF PERCENTAGE

RESPONDENTS
1. INDIVIDUAL HOUSE OWNERS 39 86.6%
2. BUILDERS AND CONTRACTORS 6 13.3%
3. GOVERNMENT PURPOSES 0 0%
4. OTHERS 0 0%

INFERENCE: From the above table it is found that the 86.6% of the customers are
individual house owners
 MAJOR CUSTOMERS OF ZUARI CEMENT
Individual
house
owners
100.00% builders and
contractors
PERCENTAGE 50.00% Govt.
purposes
0.00% others
1
CUSTOMERS
9.DEALERS SATISFACTION ABOUT DISTRIBUTION

S.NO PERTICULARS NO.OF RESPONDENTS PERSANTAGE

1 YES 39 86.66
2 NO 6 13.44

INFERENCE : From the above table it is found that 86.66% of the dealers are satisfied
with present distribution.
 DEALERS SATISFACTION ABOUT DISTRIBUTION

100
90
80
PERCENTAGE

70
NO.OF
60
RESPONDENTS
50
PERCENTAGE
40
30
20
10
0
YES NO
PARTICULARS
1. PREFERENCE FOR CONSTRUCTION (CEMENT BRANDS)

S.NO. BRANDS NO. OF RESPONDENTS PERCENTAGE

1. ZUARI 53 66.25%
2. OTHERS 27 33.75%

INFERENCE: From the above table it is found that the 66.25% of the customers
feel that Zuari cement is good.
PREFERENCE FOR CONSTRUCTION

Zuari
others
2. AWARENESS OF ZUARI CEMENT

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. ELECTRONIC MEDIA 31 38.75%
2. PRINT MEDIA 33 41.25%
3. OTHERS 16 20%

INFERENCE: From the above table it is found that the 41.25% of the customers
told that Zuari cement is known by them through print media.
 AWARENESS OF ZUARI CEMENT

50.00%
40.00%
PERCENTA 30.00%
GE 20.00%
10.00%
0.00%
Electronic Print Media Others
Media
PARTICULARS
3. FACTORS TO BUY ZUARI CEMENT

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. PRICE 2 2.5%
2. QUALITY 57 71.25%
3. BRAND IMAGE 21 26.25%

INFERENCE: From the above table it is found that the 71.25% of the customers
fell that to buy zuari cement quality is good.
 FACTORS TO BUY ZUARI CEMENT

80.00%
60.00%
PERCENTA
40.00%
GE
20.00%
0.00%
Price Quality Brand Image
PARTICULARS
4. PREFERENCE OF ZUARI CEMENT GRADE

S.NO. GRADES NO. OF RESPONDENTS PERCENTAGE

1. 43 GRADE 7 8.75%
2. 53 GRADE 25 31.25%
3. PPC 48 60%

INFERENCE: From the above table it is found that the 60% of the customers
fell that to buy zuari cement PPC grade is good.
 PREFERENCE OF ZUARI CEMENT
GRADE
PERCENTAGE

80.00%
60.00%
40.00%
20.00%
0.00%
43 Grade 53 Grade PPC
GRADE
5. QUALITY OF ZUARI CEMENT

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. EXCELLENT 17 21.25%
2. GOOD 47 58.75%
3. AVERAGE 9 11.25%
4. OK 7 8.75%
5. POOR 0 0%

INFERENCE: From the above table it is found that the 58.75% of the customers
fell that Quality of zuari cement good.
 QUALITY OF ZUARI CEMENT

60.00%
50.00%
40.00%
PERCENTAGE 30.00%
20.00%
10.00%
0.00%
Excellent Good Average Ok Poor
PARTICULARS
6. SERVICE OF THE DEALER

S.NO. PARTICULARS NO. OF CUSTOMERS PERCENTAGE

1. GOOD 56 70.0 %
2. SATISFY 18 22.5 %
3. NOT SATISFY 06 7.5 %

INFERENCE: From the above table it is found that 70% of the customers fell that
service is good and 22.5% fell satisfy.
 SERVIVE OF THE DEALER

8%

23%
GOOD
SATISFY
NOT SATISFY

69%
CHAPTER – 5

SUMMARY
&
CONCLUSIONS
 FINDINGS

1. Demand for ZUARI CEMENT is higher.

2. Quality is the major influencing factor for the customer in purchasing cement.

3. Most of the dealers are stocking ZUARI CEMENT.

4. Maximum no. of dealers (84%) expressed that the quality of the ZUARI CEMENT Is good.

5.The dealer’s opinion is that T.V; Radio and billboard are suitable media for giving Cement
advertisements.

6. Most of the dealers feel that advertising play a useful role for improving the cement Sales.

7. After my survey I observed that most of the dealers dealing with ZUARI CEMENT because
quality is good comparable to other brands.

8. After my survey I found that most of the customers feel that Zuari cement price is higher
comparable to other brands.
 SUGGESTIONS

1. The company should try to encourage dealers by offering credit facilities and proper sales calls
to motivate the dealers.

2. The company must go for some more promotional activities rather than T.V advertisement,
wall points like hoardings, Bill boards, News papers etc.

3. The company has to conduct the periodical meetings with the dealers and take their valuable
suggestions.

4. Though all the dealers are satisfied with terms and conditions of dealership. The authorities of
the company should go for assessment of satisfaction level of dealers periodically to return the
same image.

5. The company may adopt policy of appraising the dealers with highest turnover by providing
incentives such as quantity, discounts, gifts etc.

6. By reducing the price of Zuari cement to some extent i.e. reasonable to other cement prices
then there is definite increase of ZUARI sales what now we have the sales.
DEALERS SUGESTIONS TO IMPROVE THE PRESENT
SITUATION OF ZUARI CEMENT:

1. To increase the dealers margin

2. To provide Auto Vehicles for giving door-delivery to the customers.

3. The company may provide T-shirts, Caps etc for dealers to increase promotion.

4. A company should give adds in T.V, Radio and News Papers etc continuously.
 Conclusion

ZUARI CEMENT is now one of the famous cement companies in AndhraPradesh .It is well
famous with joint venture of K.K.Birla group one of the fast moving cement in the market is
ZUARI CEMENT with good quality and reasonable price.

My study is on “DEALERS AND CUSTOMERS SATISFACTION” FROM ZUARI

CEMENT which suggests the company about their dealer’s preference towards the company’s
policies, product quality, profit margin and other attributes of the product and customers
satisfaction about dealer service, quality of the product.

Finally my conclusion is dealers and customers are well loyal towards the ZUARI brand,
And they are satisfied with quality of product. But they feel price is high, but they prefer this
brand only because of the quality. Transportation facility is quite very good comparing to other
companies.
BIBLIOGRAPHY
 BIBLIOGRAPHY

TEXT BOOKS:

1. PHILIP KOTLER, Marketing Management, Prentice hall of INDIA

private Ltd, 11th edition, New Delhi, 2001

2. G.C.BERI, Research Methodology, Tata Mcgraw hill publishing Ltd,

3rd edition, New Delhi, 2001.

3. C.R.KOTHARI, Research Methodology, Tata Mcgraw hill publishing

Ltd, 2nd edition, New Delhi, 2002.

4. S.C. GUPTHA, V.K.KAPOOR, Fundamentals of Mathematical

Statistics, Sulthan chand& son’s educational publishers, 9th edition,
New Delhi.

5. DONALD S.TULL, DEL.I.HAWKINS, Prentice hall of India private

Ltd, 11th edition, New Delhi, 2001.

WEBSITES:

1. WWW.GOOGLE.COM
2. WWW.ZUARI CEMENT.COM
APPENDICES
 Line Sales Department Organization

Marketing Manager

Sales Manager

Assistant
Assistant Assistant Assistant
Sales Manager Sales Manager
Sales Manager Sales Manager
Division 1 Division 2 Division 3 Division 4

Salespeople Salespeople Salespeople Salespeople

 DEALER SATISFACTION IN CEMENT INDUSTRY WITH SPECIAL
REFERENCE TO ZUARI CEMENTS
Questionnaire addressed to the Cement Dealers in kadapa district.

Name of the Student : SHAIK SHABBIR ALI

Course & Semester MBA-IV semester
Institution : NIZAM INSTITUTE OF ENGINEERING AND
TECHNOLOGY (DBM)

Name of the Dealer:

Address:

Town:

District:

1. State your position in the distribution network?

a) Whole seller b) Retailer c) Dealer d) Sub-Dealer

2. State the monthly turnover in tons?

a) 10-30 tons b) 31-70 tons c) 71-150 tons d) 151-200 tons

d) Above 200 tonns

3. What are the brands you deal with?

a)__________________________ b)___________________________

c) __________________________ d) __________________________

4. Rank the brands according to their sales performance in your outlet?

a)__________________________ b)___________________________

c) __________________________ d) __________________________

5. Rank the brands according to your quality perception?

a)__________________________ b)___________________________

c) __________________________ d) __________________________

6. Is Zuari Cement priced high or low when compare to other brands?

 a) High b) Low c) Medium

7. In your opinion what factors influenced the customers to buy Zuari Cement?

a) Price b) Quality c) Brand image d) Advertisement

8. Who are your major customers?

a) Individual house owners b) Builders & Contractors

c) Govt. purposes d) others

9. Are you satisfied with the present distribution system?

Yes / No

If no, State the reasons

10. Are you satisfied with the present margin of profit?

Yes / No

If no, what is your suggestion?

11. Dealers opinion about

a) Price b) Quality c) Additional support d) Margin

12. Please give me your valuable suggestions regarding improvement of Zuari cement
Business.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

(Signature)

Date: _________

QUESTIONNAIRE
1. Personal details
Name -
Address -
2. Which cement do you prefer for your construction?
a) _________________________ b) _______________________
c) _________________________ d) _______________________
3. Are you aware of ZUARI Cement?
Yes / No
4. How do you know ZUARI Cement?
a) by electronic media b) by print media c) by others
5. If you prefer ZUARI cement then what factors made you buy Zuari
cement? Please specify if any.
a) price b) quality c) brand
6. Which grade do you prefer?
a) 43 grade b) 53 grade c) PPC
7. Are you satisfied with the price package?
Yes / No
8. How is the service of the dealer?
a) good b) Satisfy c) Not satisfy
9. How do you rate Zuari Cement Quality?
a) Excellent b) Good c) Average d) ok e) poor
10. Do you have any suggestions for Zuari Cement?

_______________________________________________________________________
_______________________________________________________________________
______________________________________

Signature:
Date: