Fr. C.

Rodrigues Institute of Management Studies

Sector 9 A, Vashi, Navi Mumbai - 400703.

Project Report on Ultratech Cement

(Marketing Management)

Prepared by:Paresh
Sawant (Roll no.30)

Ultratech Cement- Project Report

Overview:UltraTech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix
Concrete (RMC) and white cement in India. It is also one of the leading cement
producers globally. UltraTech as a brand embodies 'strength', 'reliability' and
'innovation'. Together, these attributes inspire engineers to stretch the limits of
their imagination to create homes, buildings and structures that define the new
India.
The company has an installed capacity of 62 Million Tonnes Per Annum (MTPA) of
grey cement. UltraTech Cement has 12 integrated plants, 1 clinkerisation plant,
16 grinding units and 6 bulk terminals. Its operations span across India, UAE,
Bahrain, Bangladesh and Sri Lanka. UltraTech Cement is also India's largest
exporter of cement reaching out to meet the demand in countries around the
Indian Ocean and the Middle East.
In the white cement segment, UltraTech goes to market under the brand name of
Birla White. It has a white cement plant with a capacity of 0.56 MTPA and 2
WallCare putty plants with a combined capacity of 0.8 MTPA.
With more than 100 Ready Mix Concrete (RMC) plants in 35 cities, UltraTech is
the largest manufacturer of concrete in India. It also has a slew of speciality
concretes that meet specific needs of discerning customers.
Our Building Products business is an innovation hub that offers an array of
scientifically engineered products to cater to new-age constructions. Aerated
Autoclaved Concrete (AAC) blocks are economical, light-weight blocks ideal for
high-rise buildings, while Dry Mix Products include waterproofing, grouting and
plastering solutions designed for faster completion of projects. The retail format
of UltraTech Building Solutions offers a wide range of construction products to the
end customers under one roof.
With its significant presence in grey and white cement, concrete, building
products and building solutions, UltraTech is a one-stop shop for all primary
construction needs. Its meteoric rise as the largest cement brand in India reflects
the organisation's focus on cutting edge technology, research and technical
services.
UltraTech Cement provides a range of products that cater to the needs of various
aspects of construction, starting from foundation to finish. These include:
Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland
Pozzalana Cement under grey cement.
White cement, Wall Care putty and white cement based products under Birla
White.
Ready Mix Concrete and a range of specialty concretes with specific functional
properties under UltraTech Concrete.
AAC blocks, waterproofing solutions, grouting solutions and plastering solutions
under UltraTech Building Products.

UltraTechs subsidiaries are Dakshin Cements Limited, Harish Cement Limited,

Gotan Limestone KhaujUdyog Private Limited, Bhagwati Limestone Company
Private Limited, UltraTech Cement Lanka (Pvt.) (Ltd.), UltraTech Cement Middle
East Investments Limited, PT UltraTech Mining Indonesia and PT UltraTech
Investments Indonesia.
UltraTechs parent company, the Aditya Birla Group, is in the league of Fortune
500 companies. It employs a diverse workforce comprising of 120,000
employees, belonging to 42 different nationalities across 36 countries. The Group
has been ranked number 4 in the global 'Top Companies for Leaders' survey and
ranked number 1 in Asia Pacific for 2011. 'Top Companies for Leaders' is the most
comprehensive study of organisational leadership in the world conducted by Aon
Hewitt, Fortune Magazine and RBL (a strategic HR and Leadership Advisory firm).
The Group has topped the Nielsen's Corporate Image Monitor 2012-13 and
emerged as the number 1 corporate, the 'Best in Class'.

History Of Ultratech Cement:

1983 -Awarpur Cement Works Plant I
1987 -Awarpur Cement Works Plant II
1993 -Jharsuguda grinding unit
1994 -Hirmi Cement Works
1996 -Gujarat Cement Works Plant I
1998 -Andhra Pradesh Cement Works -Gujarat Cement Works Plant II
1999 -Narmada Cement Company Limited acquired Ratnagiri Cement Works
2000 -Bulk cement terminals at Mangalore, Navi Mumbai and Colombo
2001 -Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to
15.3 per cent by October 2002 -Durgapur grinding unit
2002 -Grasim increases its stake in L&T to 14.15 per cent at Arakkonam grinding
unit.
-The Grasim Board approves an open offer for purchase of up to 20 per cent of
the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions
and guidelines issued by the Securities & Exchange Board of India (SEBI)
Regulations, 1997.
2003 -The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (CemCo). Grasim decides to acquire
an 8.5 per cent equity stake from L&T and then make an open offer for 30 per
cent of the equity of CemCo, to acquire management control of the company.
2004 -Completion of the implementation process to demerge the cement
business of L&T and completion of open offer by Grasim, with the latter acquiring
controlling stake in the newly formed company UltraTech.

2006 -Narmada Cement Company Limited amalgamated with UltraTech pursuant

to a Scheme of Amalgamation being approved by the Board for Industrial &
Financial Reconstruction (BIFR) in terms of the provision of Sick Industrial
Companies Act (Special Provisions) - Formerly known as UltratechCemco Limited.
The Group's principal activities are to manufacture and market clinker and
cement in India.
- Ultratech Cement Ltd has inducted Mr. SaurabhMisra into the Board as an
Additional Director and appointed Managing Director of the Company.
- Ultratech Cement receives order from BIFR.
- Ultratech Cement Ltd has appointed Mr Girish M Dave as a Director on the
Board of the Company.
2009 -UltraTech to absorb Samruddhi to form India's biggest cement firm
-Ultratech to be the lead sponsors of Rajasthan Royals
-UltraTech to consider Grasim merger proposal
2010 -Ultratech Cement Ltd has appointed Mr. O P Puranmalka as Additional
Director with immediate effect.
2011 -UltraTech Cement Ltd has recommended a final dividend of Rs. 6/2012 -UltraTech Cement Ltd has acquired 100 per cent equity shares of Gotan
Limestone KhanijUdyog Pvt Ltd (GKUPL), Rajasthan.

Products:
Ultratech Cement
Ultratech Concrete
Ultratech Building Solutions
Ultratech Building products
Birla White cement

Businesses:
UltraTech Cement Limited is the largest cement company in India and among the
leading producers of cement globally. UltraTech is also the largest manufacturer
of white cement and ready mix concrete in India.
UltraTech Cement provides a range of products that cater to the needs of various
aspects of construction, ranging from foundation to finish. This includes Ordinary
Portland Cement, Portland Blast Furnace Slag Cement, Portland Pozzalana
Cement, White Cement, Ready Mix Concrete, building products and a host of
other building solutions. Cement is sold under the brands UltraTech, UltraTech
Premium and Birla Super. White cement is manufactured under the brand name
of Birla White, ready mix concretes under the name of UltraTech Concrete and
new age building products under the names of Xtralite, Fixoblock, Seal & Dry
and Readiplast. UltraTech Building Solutions is a retail format that caters to the

end consumer providing a variety of primary construction materials under one

roof.
UltraTech Cement has 12 integrated plants, 1 clinkerisation unit, 16 grinding
units, 6 bulk terminals, 1 white cement plant, 2 WallCare putty plants and 101
RMC plants spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech
Cement is also India's largest exporter of cement and clinker reaching out to
meet demand in countries around the Indian Ocean, Africa, Europe and the
Middle East.
The company's subsidiaries are Dakshin Cements Limited, Harish Cements
Limited, UltraTech Cement Lanka (Pvt.) Ltd and UltraTech Cement Middle East
Investments Limited.

Logistics:
Over the years, UltraTech has achieved market leadership by providing
benchmark services to customers by adopting customer oriented processes at
every stage, right from planning to delivery.
Through a robust logistics network of 30 plants, 500 plus warehouses and 150
plus railheads, UltraTech serves 14000 orders per day by using a mix of various
logistics modes including rail, road and sea. These orders originate from 50000
plus dealers, retailers and institutional customers with lot size varying from of 1
MT to 40 MT. The key to managing such scale and complexity is the use of robust
processes for planning, distribution, network design, order execution, visibility
and optimal resource utilization.
UltraTech has been one of the leaders in the Indian Cement Industry in using
technology to provide real time visibility across all stake holders. From our
channel partners (dealers, institutional customers), service partners (handling
and transporting agents, railways) and even internal functional teams, this
visibility enables optimal business decisions on a daily basis.
With an eye on the future, UltraTech has implemented an RFID based Vehicle
Movement System at one of its plants to monitor real-time, in-plant movement of
vehicles, improve overall safety inside the plant and reduce the overall time
taken within the plant for road loading.

Some of the Best-in-class SCM processes adopted

by Ultratech include:

Network optimization

Web and mobile based order management system with real time visibility
of order status

Customer service level measurement on real time basis

GPS based vehicle tracking system for dedicated fleet

Automation at secondary service points like railheads and godowns

RFID based vehicle movement system to reduce in-plant time of vehicles

Sea Logistics:
Sea transport is the most economic mode of transport, especially where plants
are situated near ports. UltraTech is focused on sea mode as it is safe,
environment friendly & pollution free.
UltraTech has its operation on the Indian west coast with the loading terminals
situated at Pipavav and Jafarabad, Gujarat. The supplies goes to Magdalla, JNPTMumbai, Ratnagiri, New Mangalore, Cochin and export to Sri Lanka, Persian Gulf,
African continent and Far Eastern regions.
The state of the art system includes the cargo conveying and handling system as
a part of the cement plant. This captive jetty handles about 5 million tonnes of
captive cargoes of cement and clinker, with more than 80% berth occupancy
rate.

Brand Achievements:
UltraTech Cement has been honoured with the title of the consumer validated
award - 'SUPERBRAND' for the years 2011, 2012, 2013 and 2014 by the
Superbrands Council. It has also been bestowed with the title of the customer
selected 'POWERBRAND' for the year 2012 and 2014 by Powerbrands India.
Superbrands is a global organisation that recognizes, showcases and pays tribute
to the best brands in each country. It is a prestigious award and recognizes the
brand custodian's persevering efforts to build a brand that is strong on consumer
perceptions, thereby making it resilient to fluctuating economic conditions.
For the fourth edition of Consumer Superbrands, UltraTech was a part of an
exclusive group of winners selected first by the consumer and then by an
independent Superbrands Council comprising of the most eminent professionals

from India's corporate sector. This is an important recognition of our efforts and
serves our objective of getting closer to the consumer. In a market comprising of
several highly regarded competitors, this is certainly an outstanding
achievement.
Birla White, the white cement brand of UltraTech, too has earned the distinction
of 'SUPERBRAND' for the fourth consecutive time and is also a 'POWERBRAND'.
We have been recognised as the largest cement company in 2011 and 2012 by
Construction World and the Business World has ranked us as one of the fastest
growing companies in 2014.

Business Environment:

UltraTech strives to adopt an eco-friendly approach across all areas of its

business operations. We are one of the earliest proponents of alternative fuel
usage, waste heat recovery and other environment friendly practices in the
country.

Focus areas:
UltraTech's social projects are designed with the long-term goal of creating
sustainability and self-reliance. Hence, the projects focus on factors that will lead
to empowerment and capacity building. Though UltraTech operates in five focus
areas, its major emphasis has been on providing quality education and
healthcare facilities. Importance is also given to building infrastructure, as
ultimately it is the tool that fuels growth. The results of these projects will not
only benefit their respective communities but also the nation at large.
The company's CSR activities are concentrated in 407 villages, in proximity to its
22 plants, across the country.

Infrastructure,
Environment:

Watershed

Management

&

To conserve water for agriculture and domestic uses, 12 ponds and 19 check
dams were repaired/built at Jafrabad, Awarpur, Hirmi, Malkhed, Kovaya, Rawan,
Khor and KhariaKhangar.
Approach roads were built in three villages at Tadipatri and repaired in 12
villages at other locations. At Malkhed,Tadipatri, Khor, Sambhupura,
Reddipalyam, Hirmi and Awarpur 12 School buildings were repaired and
boundary walls constructed. A community hall was instituted in Awarpur.
A plantation drive for enlarging the green belt cover has been taken up at
Reddipalyam, Sambhupura, Kovaya, Jaffrabad, Awarpur, Khor, Hirmi, Rawan,
Jharsuguda, Ratnagiri, Kotputli, Tadipatri and KhariaKhangar.

Marketing Mix (i.e. Price, Place, Product &

Promotion):
1. Price
Price of Cement includes the transportation cost also so there is a little
difference in the prices
of cement.
In Gujarat, for the bag of 25 kg of cement the price of cement is around
Rs.320 which cost to Rs.12 -13 per kg.
Discounts are given on the bulk orders or as per the contract.
Allowances are given to the customers for their purchases direct from the
manufacturing units.
Credit Facilities are given to the customers.

2. Product
Ordinary Portland Cement
Ordinary Portland cement is the most commonly used cement for a wide
range
of applications.

Portland blast-furnace slag Cement

UltraTech Premium is a concrete special cement, produced in UltraTech's stateof-the-art

manufacturing facilities.

Portland Pozzolana Cement

Portland Pozzolana cement is ordinary Portland cement intimately blended or

interground with pozzolanic materials such as fly ash, calcined clay, rice husk
ash etc.
Portland cement clinker is either interground or intimately blended with specified
quantities of gypsum and pozzolanic materials to produce Portland Pozzolana
cement. Pozzolanas by themselves do not have cementitious properties but
reacts with calcium hydroxide in the presence of moisture at normal temperature
to form compounds having cementitious properties. The concrete produced by
using Portland Pozzolana cement has high ultimate strength, is more durable,
resists wet cracking, thermal cracking and has a high degree of cohesion and
workability in concrete and mortar.

Cement complying with European and Sri Lankan standard

specifications
UltraTech's bulk cement terminal is located at Colombo in Sri Lanka.

3. Place
Focus more on rural areas as an emerging sector
No need to have a vast distribution network to increase outreach
23 cement plants located all over India (4 New under construction)

4. Promotion
Cashing in on the brand name of L&T Cement
Establishing Franchisee network
Through IPL team sponsorship of Rajasthan Royals
Banners and hoardings on public transport vehicles and bus stops

Competitors For UltraTech Cement Ltd.

Company

Current
Price

Book
Value

P/E
Ratio

Market Cap
(Rs. Cr.)

OCL India Ltd.

307.75

195.06

17.89

1,751.10

Prism Cement Ltd.

75.70

20.03

0.00

3,810.41

Sagar Cements Ltd.

310.50

138.52

0.00

539.90

ACC Ltd.

1,463.05

416.33

25.09

27,498.03

Ambuja Cements Ltd.

222.15

61.24

26.58

34,411.05

J K Lakshmi Cement
Ltd.

382.05

110.75

48.34

4,495.58

J K Cement Ltd.

651.20

251.47

46.93

4,553.66

Heidelberg
Cement
India Ltd.

88.65

36.77

0.00

2,008.93

Gujarat
Sidhee
Cement
Ltd.

30.70

34.25

0.00

130.19

28.63

2,891.72

Orient
Cement
Ltd.

141.15 40.45

Marketing of Ultratech Cement:

Marketing is the process of communicating the value of a product or
service to customers. Marketing might sometimes be interpreted as the
art of selling products, but sales is only one part of marketing. As the term
"Marketing" may replace "Advertising" it is the overall strategy and
function of promoting a product or service to the customer. From a societal
point of view, marketing is the link between a societys material
requirements and its economic patterns of response. Marketing satisfies
these needs and wants through exchange processes and building long
term relationships. The process of communicating the value of a product
or service through positioning to customers. Marketing can be looked at as
an organizational function and a set of processes for creating, delivering
and communicating value to customers, and managing customer
relationships in ways that benefit the organization and its shareholders.
Marketing is the science of choosing target markets through market
analysis and market segmentation, as well as understanding consumer
buying behavior and providing superior customer value. Products related
to marketing
Ultratech Cement

 Ultratech Concrete
Ultratech Building Products
Ultratech Building Solutions
Birla White
Star Cement

Marketing Orientation Production Concept :

The Production Concept is one of the oldest concepts in business.
Production Concepts say that, consumer will prefer that product which is
economical in nature and which is easily available in the market.
According to this concept company should concentrate on achieving high
production efficiency, low cost and mass distribution. Product Concept
Product concept says that a product which is having unique and
distinguishes features than its competitors is preferred by the customers.
It means that product concept holds that consumer will favour those
products that offer the most quality performance or innovative features.
Selling Concept Selling concept says that a market should aggressively
promote its product or market or should put an effort to promote its
product. Otherwise it will not be purchased by the customers. In other
words if your product is good in quality and features than also aggressive
marketing should be done. The purpose of such companies is to sell more
for earning more profits. Advertising with celebrities and various schemes
can be helpful. Marketing Concept The Marketing concept emerged in the
mod of 1950s. The marketing concept says that marketer should
undertake aggressive marketing strategy to understand the needs of the
customers. The marketing concept says that the key to achieving
organizational goals consists of the company being more effective than
competitors in creating, delivering and communicating superior value to
its customers.

Societal Marketing
This concept suggests that every marketer should provide the qualitative
goods at a reasonable price to fulfil his service towards the society. Holistic
Marketing This concept is based on the development, design and
implementation of marketing programs, processes and activities that
recognize their breadth and interdependence. Holistic marketing recognize
that everything matters with marketing. It integrates all the aspect of the
business like internal marketing, relationship marketing, integrated
marketing and social responsibility.

About Company: In the Company there is a use of Product concept

as it gives the different types of cement to the customers and consumers.

There is a frequent use of Marketing concept and Holistic concept as in

todays world customer or consumer satisfaction is mainly seen to retain
the customer and to make them a hardcore loyal towards the company.
Branding Efforts towards Branding Brand UltraTech enjoys a niche space
in the minds of its customers. It represents expertise, strength and
modernity, all interwoven with the help of a strong emotional connect.
The company doesnt just sell a product or a service, it sells solutions.
These solutions help people build their lives and sustain them for
generations. UltraTech is often known as the expert who cares. The title,
while reinforcing the values that UltraTech stands for, also signifies the
strong bond that exists between the brand and its customers, which has
been forged over the years. The UltraTech brand not only helps build cities
and homes, it helps build trust and ultimately, builds lives. The name
inspires trust among all the stakeholders engineers, builders, contractors,
individual house owners, governments, investors, shareholders and the
society at large. The brand has consistently justified this trust. The brands
positioning of being the expert translates into advertising imagery that
depicts progress, cutting-edge technology and modernity. UltraTechs
famous tagline The Engineers Choice reflects its brand promise of being
the expert. Excellent product quality and customer care are the
hallmarks of UltraTech cement.The name UltraTech with the signature
line, The Engineers Choice, admirably captures the premium nature of the
brand and its salience."Mr. O.P. Puranmalka, Business Director, UltraTech
Cement Limited, and Director, Aditya Birla Management Corporation
Private Limited.

Branding Scope
The UltraTech brand bears a strong association with popular Indian sports
namely cricket and hockey. The in-film branding with Chak De India and
the IPL connect with the Rajasthan Royals (Season 2, 3 & 5) and Deccan
Chargers (Season4) has made UltraTech a youthful brand to reckon with.
Birla Whites homegrown Yuvaratna Awards recognise architectural and
engineering excellence. UltraTech is also associated with the Business
India exhibition - A Celebration of Architecture. All these affiliations have
strengthened Brand UltraTechs association with the fraternity of students,
engineers, architects, builders and the construction community at large.
Related to Price, the regional variation in the Indian market has resulted
in the cement prices across regions witnessing movement within a band,
with no appreciable increase in any region. Differences in regional demand
supply situation have translated into price differences across regions.
Prices are lower in Southern regions where there is normally a supply
surplus. However, prices are higher in Eastern and Western regions where
shortages exist. The surplus position had resulted in significant pressure
on price realizations in recent years. In the field of marketing management
process, it basically consists of four steps: 1. Analyzing marketing
opportunities. 2. Selecting target markets. 3. Developing the marketing
mix. 4. Managing the marketing effort

About Company: Price of Cement differs as per the Geographical

Area. Price of Cement includes the transportation cost also so there is a
little difference in the prices of cement In Gujarat, for the bag of 25kg of
cement the price of cement is around 320 Rs which cost to 12-13Rs per
kg. Discounts are given on the bulk orders or as per the contract.
Allowances are given to the customers for their purchases direct from the
manufacturing units. Credit Facilities are given to the customers.

Related to Place: Distribution Channel Companies invariably hire

agents or transport cements to own or government warehouses either via
roadway or railways. In case of exports, cement reaches the nearest port
via roadways or railways and is then transferred to the importing country.
Domestically, from agents or warehouses the cement is transported to the
dealers/distributors and in turn to sub dealers who finally sell it to the end
users. There may or may not be physical ownership of goods. In the
second case, dealers and sub dealers take order from buyers and place it
to the companies, coordinate and monitor the timely dispatch of said
orders. There is a use of 3 levels of channeling. Manufacturer to Agents to
Wholesaler to Retailer to End User.

Supply Chain:

The team orders and maintains the inventory of stock

keeping units so that unit does not run out of critical supplies at any point.
The team also ensures that all stock keeping units of items used in the
unit are received at stores from vendors and distributed to the different
outlets on time. Other functions include: Distribution Function
Configuration Number, location and network missions of suppliers,
production facilities, distribution centers, warehouses, cross-docks and
customers. Distribution Strategy Includes functions of operating control
(centralized, decentralized or shared), delivery scheme (e.g., direct
shipment, pool point shipping, Cross Docking, DSD(direct store delivery).
Information Integration of and other processes through the supply chain to
share valuable information, including demand signals, forecasts,
inventory, transportation, and potential collaboration etc. Inventory
Management: Quantity and location of inventory including raw materials,
work-in-process and finished goods.

Related to Promotion:

Promotion is one of the four elements of

marketing mix (product, price, promotion, distribution). It is the
communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyers purchasing
decision. There are seven main aspects of a promotional mix these are Advertising - Any paid presentation and promotion of ideas, goods, or
services by an identified sponsor. Examples: Print ads, radio, television,
billboard, direct mail, brochures and catalogue, signs, in-store displays,
posters, motion pictures, Web pages, banner ads, and emails.

Personal Selling:

A process of helping and persuading one or more

prospects to purchase a good or service or to act on any idea through the
use of an oral presentation. Examples: Sales presentations, sales
meetings, sales training and incentive programs for intermediary
salespeople, samples, and telemarketing. Can be face-to-face or via
telephone. Sales promotion - Media and non-media marketing
communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product
availability. Examples: Coupons, sweepstakes, contests, product samples,
rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions. Public relations - Paid intimate stimulation of supply for a
product, service, or business unit by planting significant news about it or a
favourable presentation of it in the media. Examples: Newspaper and
magazine articles/reports, TVs and radio presentations, charitable
contributions, speeches, issue advertising and seminars.

Corporate image:

The Image of an organization is a crucial point in

marketing. If the reputation of a company is bad, consumers are less
willing to buy a product from this company as they would have been, if the
company had a good image. Direct Marketing - is often listed as the fifth
part of the marketing mix Exhibitions - are try-outs. You make your
product, and let potential buyers try the product, these way, you know
directly what people see in your product. The downside, your competitor
can see exactly what you are doing. How to Establish a Promotional Mix
You drive sales by promoting the benefits of your companys goods or
services to pools of potential buyers. The ways you promote your
organization will largely determine whether you successfully plant the
right messages in the minds of your target audience. This module explains
how you can establish a promotional mix best suited to your companys
needs and resources. Determine Your Target Market Determine Your
Objectives Design Your Message Select Your Promotional Channels
Determine Your Budget Determine Your Promotional Mix Measure the
Results and Adjust.

Promotion through the Product life cycle

As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the
healthy success and life of the product.

Stages and promotion strategies employed:a) Introduction:-When a product is new the organizations objective
will be to inform the target audience of its entry. Television, radio,
magazine, coupons etc. may be used to push the product through the
introduction stage of the lifecycle. Push and Pull Strategies will be used at
this crucial stage. Growth As the product becomes accepted by the target

market the organization at this stage of the lifecycle the organization

works on the strategy of further increasing brand awareness to encourage
loyalty. Maturity At this stage with increased competition the organization
take persuasive tactics to encourage the consumers to purchase their
product over their rivals. Any differential advantage will be clearly
communicated to the target audience to inform of their benefit over their
competitors. Decline as the product reaches the decline stage the
organization will use the strategy of reminding people of the product to
slow the inevitable.

b) Segmentation: Market segmentation consists of a group of

customers who share a similar set of needs and wants. Segmentation
refers to divide the customers into groups on the basis of some common
needs or characteristic. Basis of Segmentation Geographical Segmentation
It refers dividing the customers on the basis of the place where they are
living various geographic areas consists of region, city, rural and semirural area. The purpose of the company for such segmentation is to
understand the needs of people living in different geography. Geographic
segmentation is very useful because needs of the customers are
influenced by the geography. Demographic Segmentation In
Demographic segmentation the market is divided into the groups on the
basis of variables such as age, family size, family life cycle, gender,
income, occupation, education, religion, etc. There are two reasons for
using the demographic segmentation one is that it is easier to measure
them while second reason is that customers need and wants are different
as per the demographic variable. Psychographic segmentation
Psychographic segmentation refers to be the division of the customers on
the basis of their life style, status, personality and values.

c) Behavioral Segmentation:
In behavioral segmentation buyers are divided into the groups on the
basis of their knowledge and attitude toward the product. Occasion,
benefits, usage rate, buyer readiness stage, loyalty status and attitude are
various behavioral segmentation elements. About Company: Ultratech is
doing market segmentation on the basis of Geographical Segmentation
where the segment is done on basis of rural areas, city areas, semi-rural
areas and region.

d) Targeting:
Once the firm has decided its market segmentation opportunities it has to
decide how many and which once to target. Marketers are increasingly
combining several variables in efforts to identify smaller, better defined
target groups. Steps of Targeting Evaluation of Target Market Selection of
Target Market 1. Evaluation of Target Market In evaluation of target market
segments a firm must look at the following 3 factors: Segment Size and
Growth Segment Structural attractiveness Company Objective

Selection of Target Market After evaluating different segments the

company must decide which and how many segments to serve in target
market. Target market is a set of buyers sharing common needs or
characteristic that the company decides to serve. Undifferentiated Target
Market (Mass Market) Differentiated Target Market (Strategic Market)
Concentrated Target Market (Niche Market) Individual Market (Micro
Market)About Company Ultratech cement is targeting on the basis of
Differentiated Market so that the new varieties of cement can be given to
the customers. This step can get success only if segmentation is done
properly.

e) Positioning:
Positioning can be defined as the way by which a product has occupied a
place in the minds of customers related to the competitors. Positioning is
the act of designing the companys offering and image to occupy a
distinctive place in the minds of the target market. To make the buying
decisions easy customers are categorizing the products as per their
position in the minds. A products positioning is a complex set of
perceptions, impressions and feelings that consumer holds for the product.
Basis of Positioning 1. Product Differentiation 2. Service Differentiation 3.
People Differentiation 4. Image Differentiation About Company Ultratech
uses Product Differentiation and Image Differentiation as its Brand name
Aditya Birla Group itself has a great reputation in the minds of the people.

Marketing Research at Ultratech Cement: Marketing

research is a systematic gathering recording and analysis of data about
the problems relating to the marketers of goods and services. Thus it
includes investigation of market, segments, and products. The market
research answers the questions in respect of different markets. The areas
of market research are: Determining the size of both current and also
potential market. Assessing the market brands. Ascertaining the strength
and weakness of competitors. The current contemplated legislations of the
government towards the particular product, including taxation policy
Demand and sales forecast

Research & Development Department

Research & Development Department is the back-bone of an organization.
It helps the organizations in developing new products and means to meet
the need of customers in an effective way. It also shows how open is an
organization towards the change. In Ultratech following functions are done
by the R & D department: Able to meet customers enhanced requirements
above R & D Able to meet shorter turnaround times demanded by
customer Automated tools helped to meet extra volume of production and
new customer requirements Maintaining leadership as a technologically
advanced supplier Customized Production & Project Management tools
development for customers Able to acquire new projects which involves

project management Providing value added services to the customers and

bringing-in additional projects. Introducing new workflow and systems as
per customers requirements.

Strategies Adopted by UltraTech Promise

Excellent product quality and customer care are the hallmark of UltraTech.
Capitalizing the opportunity of the geometric growth in the housing sector
and the governments thrust on infrastructure. Right decision at right time
Having excellent Product in hand constantly striving to improve and
capture more number of market share Training to Staff Promotion through
movies Sponsorship Opinion towards Marketing Increase frequency of
advertisements on T.V., radio, internet and print media. Increase Strategic
Alliance increase visibility by campaign and other modes. Increase number
of distributors and agents increase number of warehouse having microplanning in place.

Performance:
UltraTech Cement Limited is engaged in the business of cement and cement
related products. The Company provides a range of products that cater to all the
needs from laying the foundation to delivering the final touches. The Company
manufactures and provides ordinary Portland and Portland Pozzolana Cement,
Ready-Mix Concrete, and White Cement. White cement is manufactured under
Birla White brand, ready mix concretes under UltraTech Concrete brand and new
age building products under UltraTech Building Products Division. The retail
outlets of the Company operate under UltraTech Building Solutions.
The Company is also an exporter of cement clinker spanning export markets in
countries across the Indian Ocean, Africa, Europe and the Middle East. The
Company conducts business activity in United Arab Emirates, Sri Lanka, Bahrain,
and Bangladesh.
Prices of most of the input materials increased substantially due to increase in
basic prices and transportation cost. The price of raw material & packaging
material increased by around 14 & 15% respectively and prices of other additives
increased by 20-50%.
Despite increase in input cost, the EBITDA margin remained equal to the previous
year by using price efficient fuel pet coke (34% of total) and passing some of the
cost to the customers.
Gross interest and finance charges were higher on account of increased
borrowings for on-going capex for capacity expansion. However, the net finance
cost fell due to higher capitalization and thereby, increased the profit margins.
The consolidated sales of the company during FY13 rose by 11% to
Rs.21319crore, while the operating profit rose by nearly 13% to 5143crore. The
consolidated net profit for FY13 was Rs.2677.73, 11% higher as compared to the
previous year.
The increase in overall domestic revenue was mainly due to improved demand in
the first half of the year in the market. The sales volume remained as previous

year but increase in price in the early quarters of the year resulted in the
increase in revenue by 11%.
The overall export volume fell by 28% but depreciation of the rupee helped in
improving realization by 5%.