ISSN: 2319-8753

International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

A Study on Distribution Channels in Cement

Industry
J. Pavithra
Assistant Professor, Department of Management Studies, Bharath University, Chennai -73, India

Abstract: “Marketing is a societal process by which individuals and groups obtain what they need and want through
creating, offering and freely exchanging products and services of value with others.”-Philip Kotler. Marketing is
everywhere. Formally or informally, people and organizations engage in a vast number of activities that could be
called marketing. There are four P’s of marketing mix namely 1. Product 2. Price 3. Promotion 4. Place
(Distribution).A major focus of this article related to channels of distribution in Cement industry. A channel of
distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title
from production to consumption. This research has focused in cement industries confined with retailers and
consumers.

I.INTRODUCTION
India’s infrastructure in economic growth and cement consumption require heavy investments especially for
government projects housing projects in both rural and urban areas . The major challenge faced by Indian cement
industry is engulfed in a pool of very high raw material prices specially the price of coal and gypsum. Contrarily the
capacity utilization for cement in India goes down there by affecting the profitability of firms. Therefore effective
marketing strategies, effective distribution channels should be utilized to boost up the capacity utilization,
increasing the dispatches and realization .Differentiation i n product or service in cement industry gains
importance for both the dealers and the customers .So an eagle eye should be kept on the distribution channels of
cement Industry.

Objectives of the study

 To find out the distribution channels of Cement Industries Limited.
 To compare the distribution system of cement industries.
 To find out the present problems faced by dealers.
 To find out the any new scheme required by the dealers.
 To give valuable suggestions to increase the sales volume.

II.REVIEW OF LITERATURE
A major focus of channels of distribution is delivery. It is only through distribution that public and private
goods and services can be made available for use of consumption. Producer of such goods and services are
individually capable of generating only the form or structural utility for their product and services. They can
organise their production capabilities in such way that the products they have develop can, in fact, be seen analysed
and sold in the market.
“Marketing Channels are set of interdependent organisations involved in the process of making a product or
service available for used on consumption. They are a set of pathways a product or service follows after production,
culmination in purchase and use by the final end user”.
- Philip Kotler
“Channel of distribution is a path traced in the direct or indirect transfer of the title to a product as it moves from a
producer to ultimate consumers or industries users”
-EW Cundif and RS Stil
“The course taken in the transfer of the title to a commodity constitutes its channel of distribution. It is the route by
the title to a product in its passage from its first owner, an agricultural procedure or a manufacture as the case may
be, to the last owner, the ultimate consumer or the business user.” -Beckman
and Others

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 ISSN: 2319-8753

International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

“A channel of distribution or marketing channel is a structure of intra-company organisation, unites and intra-
company agents and dealers and retailers through which a commodity product or service in marketed”
-American Marketing Association.
“The manner in which goods move from the manufacturer to the out let where the consumer purchases them;
in some marketplaces, it’s a very complex channel, including distributors, wholesaler, jobbers and brokers”.
- Small Business Entrepreneur
“A channel of distribution can be defined as the collection of organisation units, institutions, or agencies
within or external to the manufacturer, which perform the functions that support product marketing. The marketing
functions are pervasive: they include buying, selling, transporting, storing, grading, financing, bearing market risk,
and providing marketing information. Any organisation unit, institution, or agency that performs one or more of the
marketing functions is a member of a channel of distribution”.
Industry has been defined “as a process in which changes of a series of strategically production are taking
place and it involves those basic changes that accompany the mechanization of an enterprise. The building of a new
industry and the opening of a new territory”
The achievements in the field of industrial development during the past three decades in India have been
significant and substantial in many respects. There is considerable literature on cement industry befitting, its long
and chequered history and high economic importance. A good deal of analytical literature exists at broad levels
covering problems associated with productivity, financial performance, size and technology, manpower and
location.

Table No: 1- CEMENT DEALERSHIP TAKEN BY DEALERS

Brand No. of respondents Percentage (%)

Birla 18 18

Ramco 26 26

Dalmia 18 18

Zuari 16 16

Coromandel 22 22

Total 100 100

Sources: Primary Data
Inference: From the above table, it is inferred that 18% of the respondents are having the Birla cement
dealership, 26% of the respondents are having Ramco cement dealership, 18% of the respondents are having the
Dalmia cement dealership, 16% of the respondents are having the Zuari cement dealership and 22% of the
respondents are having the Coromandel cement dealership.

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 ISSN: 2319-8753

International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

Chart No: 1 CEMENT DEALERSHIP TAKEN BY DEALERS

30

25

20
percenta

15

10

0
Birla Ramco Dalmia Zuari Coromandel
CEMENT DEALERSHIP TAKEN BY DEALERS

Table No: 2 HIGH SALES VOLUME IN CEMENT INDUSTRY

Brand No. of respondents Percentage (%)

Birla 14 14

Ramco 26 26

Dalmia 22 22

Zuari 12 12

Coromandel 26 26

Total 100 100

Sources: Primary Data

Inference:
From the above table, it is inferred that 14% of the respondents feel that Birla cement is getting high sales
volume, 26% of the respondents feel that Ramco cement is getting high sales volume, 22% of the respondents feel
that Dalmia cement is getting high sales volume, 12% of the respondents feel that Zuari cement is getting high sales
volume and 26% of the respondents feel that Coromandel cement is getting high sales volume.

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 ISSN: 2319-8753

International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

Chart No: 2 HIGH SALES VOLUME IN CEMENT INDUSTRY

30

25

20
percent

15

10

0
Birla Ramco Dalmia Zuari Coromandel
HIGH SALES VOLUME IN CEMENT INDUSTRY

Table No: 3 MOST VALUABLE SUPPLIERS

Brand No. of respondents Percentage (%)

Birla 18 18

Ramco 26 26

Dalmia 18 18

Zuari 16 16

Coromandel 22 22

Total 100 100

Sources: Primary Data

Inference: From the above table, it is inferred that 18% of the respondents feel that the Birla cement is most
valuable supplier, 26% of the respondents feel that the Ramco cement is most valuable supplier, 18% of the
respondents feel that the Dalmia cement is most valuable supplier, 16% of the respondents feel that the Zuari cement
is most valuable supplier and 22% of the respondents feel that the Coromandel cement is most valuable supplier.

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 ISSN: 2319-8753

International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

Chart No: 3 MOST VALUABLE SUPPLIERS

30

25
20
percen

15
10
5
0
Birla Ramco Dalmia Zuari Coromandel
MOST VALUABLE SUPPLIERS

Table No: 4 FAST MOVING BRAND IN CEMENT INDUSTRY

Brand No. of respondents Percentage (%)

Birla 14 14

Ramco 26 26

Dalmia 22 22

Zuari 12 12

Coromandel 26 26
Total 100 100

Sources: Primary Data

Inference: From the above table, it is inferred that 14% of the respondents feel that Birla cement is fast moving in
cement industry, 26% of the respondents feel that Ramco cement is fast moving in cement industry, 22% of the
respondents feel that Dalmia cement is fast moving in cement industry, 12% of the respondents feel that Zuari
cement is fast moving in cement industry and 26% of the respondents feel that Coromandel cement is fast moving in
cement industry.

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 ISSN: 2319-8753

International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

Chart No: 4 FAST MOVING BRAND IN CEMENT INDUSTRY

30
25
20
perce

15
10
5
0
Birla Ramco Dalmia Zuari Coromandel
FAST MOVING BRAND IN CEMENT

Table No: 5 LIFE TIME OF THE OVERALL CEMENT

Brand No. of respondents Percentage (%)

Birla 12 12

Ramco 14 14

Dalmia 16 16

Zuari 28 28

Coromandel 30 30

Total 100 100

Sources: Primary Data

Inference: From the above table, it is inferred that 12% of the respondents feel that Birla cement is having more
life time, 14% of the respondents feel that Ramco cement is having more life time, 16% of the respondents feel that
Dalmia cement is having more life time, 28% of the respondents feel that Zuari cement is having more life time and
30% of the respondents feel that Coromandel cement is having more life time.

Chart No: 5 LIFE TIME OF THE OVERALL CEMENT

35
30
25
20
percen

15
10
5
0
Birla Ramco Dalmia Zuari Coromandel
LIFE TIME OF THE OVERALL

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International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

Table No: 6 MARKET RESEARCH IN CEMENT INDUSTRY

Brand No. of respondents Percentage (%)

Birla 12 12
Ramco 18 18
Dalmia 14 14
Zuari 34 34
Coromandel 22 22
Total 100 100

Source: Primary Data

Inference: From the above table, it is inferred that 12% of the respondents feel that Birla cement is doing market
research in cement industry, 18% of the respondents feel that Ramco cement is doing market research in cement
industry, 14% of the respondents feel that Dalmia cement is doing market research in cement industry, 34% of the
respondents feel that Zuari cement is doing market research in cement industry and 22% of the respondents feel that
Coromandel cement is doing market research in cement industry.

Chart No: 6 MARKET RESEARCH IN CEMENT INDUSTRY

40
35
30
25
20
perce

15
10
5
0
Birla Ramco Dalmia Zuari Coromandel
MARKET RESEARCH IN CEMENT INDUSTRY

FIndings of the study

1. (26%) of the respondents are having Ramco cement dealership,(22%) of Coromandel, (18%) of Dalmia
and Birla. And (16%) of respondents are having Zuari cement dealership.
2. (26%) of the respondents feel that Coromandel cement and Ramco cement are having high sales
volume. At the same time Zuari cement is having less sales volume of (12%).
3. (26%) Ramco cement most valuable suppliers from dealer’s point of view, (22%) of Coromandel,
(18%) of Dalmia and Birla. And Coromandel cement (16%) of respondents are considering most
valuable suppliers.
4. (26%) Coromandel cement and (26%) Ramco cement they are moving fast in cement industry. And
(12%) zuari cement is moving slowly.
5. (30%) Coromandel cement, (28%) Zuari cement they are having more life time. And (12%) Birla
cement has less life time from others.
6. (12%) of the respondents feel that Birla cement is doing market research in cement industry, (18%) of
Ramco cement, (14%) of Dalmia cement, (34%) of Zuari cement and (22%) of the respondents feel that
Coromandel cement is doing market research in cement industry.

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International Journal of Innovative Research in Science, Engineering and Technology

Vol. 1, Issue 2, December 2012

III.CONCLUSION
After analysing the data, that the sales volume of Coromandel cement and Ramco cement are
comparatively higher than others. In dealers point of view Ramco cement has the most valuable suppliers.
Coromandel and Ramco cement have reliable and fast moving brand. Coromandel cement and Zuari cement have
more life time. Zuari cement only improve its sales promotional efforts as well as follow some strategies in
effective marketing research and also get feedback from the retailer and customers.. Overall, Coromandel cement is
the leading performer in Chennai.

Suggestions
The cement industriy has to check our product to reach the dealer in timely and regularly. Because it can b e
increase the sales volume and brand Image. The Industry has to fix the price very standard and make aware of their
product to the Public. The cement Industry has to involve the market research and technology research to provide
quality and assured cement products to the customers. They have to directly involve to collect the feedback from
various customers.T hey can create trust among the dealer by taking immediate corrective actions for the problems
like shortage and breakage and also concentrate in credit facility of the dealers to extend their service for dealers
required.

REFERENCES

1. Marketing Management “Philip Kotler”

2. Marketing Management “S.A. Sherleker”
3. Marketing “Dr. N. Ranjan and Sanjith R. Nair”
4. Research Methodlogy “C.R. Kothari”

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