THE STATES’ INTERVENTION AS BRAND PROMOTION; STRATEGIES AND ISSUES WITH SPECIAL REFERENCE TO SIVAKASI TALUK OF
VIRUTHUNAGAR DISTRICT
VINAYAK.S.P Ph.D-Research Scholar
Department of Commerce, Madurai Kamaraj University, Madurai Dr.S.IRULAPPAN
Principal, Madurai Kamaraj University College, Madurai.
Abstract:-The state policy of the economic democracy and equal distribution of national income and arresting the monopolistic market structure pave the way for the state government to introduce the State branded cement at low price without tax. The state Governments‟ intervention as the branding of AMMA Cement with unexpected price variation causes the facelift of choice of branding process. But the marketing activities of cement products of state government is beyond its‟ scope of administration. The Government of Tamil Nadu is considering the only two factors such as price and availability for determining the brand. The relationship marketing concept, revising or raising the ceiling of sales of state branded cement per square feet of construction, reducing the queue length in distribution are the major points to be considered in redefining the present brand promotion strategy
1. INTRODUCTION
We are living in an era of welfare state of seeks to promote the prosperity and well being of the people. The directive principles of Indian Constitution strengthen and promote this concept by seeking to lay down some socio-economic goals which the various governments in India have to strive to achieve. These principles obligate the state to take the positive action in certain directions in the order to promote the welfare of the people and achieve the economic democracy.
These principles give direction to legislature and the executive in India as regards the manner in which they should exercise their power.
The achieving of economic democracy is only possible through full filling the essential or basic needs such as food cloth and shelter of the economically weaker sections of citizens of India. So the both central and state governments are proving more attention to formulating various welfare measures to satisfy the basic hosing needs of peoples who are living below poverty lines. The housing facilities promotion schemes such as the green House scheme, Indira Ghandhi Memorial housing scheme, Prime Ministers smart cities Housing Scheme , scheme for Slums rehabilitations programmes and Financial subsidies for particular type of housing loans are implemented at present in this regard. In addition to it, the government
of Tamil Nadu are lunching the new brand of Cement as Amman Cement with unexpected low pricing strategy to meet the cement demand of economically weaker section.
2. CEMENT MARKETING AND STATES’
BRAND PROMOTION STRATEGY
The market structure of Cement Product in Tamil Nadu is in Monopolistic competitive nature. So there are possibilities of creation of artificial demand for cement and immediate hike of price of cement from time. The price of per package of cement is increased triple time in last five years. So there are lot of economic pains in continuous purchasing of cement for the period of six months to small house contractions and repair and maintenance works of buildings to economically weaker section. In other words, price controlling and balancing of the demand and supply of cement product is far away from the hands of sate authority. So government of Tamil Nadu are launching and implementing the market intervention welfare programme to the cement products as supply of AMMA cement through its civil supply department.
Chart no -1
Marketing Strategies of Amma Cement Identification of Need of Cement for Construction of New House or Repairing
work of Existing Building by customer
Submission of application for cement along with certificates and demand draft
to the sales authorities of civil supply department
The brand promotion activities consists of quality and quick supply of Cement, creating the awareness of State Marketing intervention, Brand advertisement and other sales promotion activities.
3.FORMATION OF RESEARCH PROBLEM
The state Governments‟ intervention as the branding of AMMA Cement with unexpected price variation causes the facelift of choice of branding process. But the marketing activities of cement products of state government is beyond its‟ scope of administration. In addition to it, From the perspectives of customers, both product and patronage factors such as durability, suitability, versatility, pride, reputation, attitude and approach of salesmanship, habit, reference, advertisement , budgetary provisions, reliability and availability, channels of distribution and storage facilities are affecting the choice of particular brand of cement. But Government of Tamil Nadu is considering the only two factors such as price and availability for determining the brand. It ignores other above said factors. Another problem is limited supply of cement irrespective of its requirement .The waiting in queue and transportation also collapse the building construction planning and scheduling of the construction activities . Credit is one of the sources of finance for small house construction. But prepayment of amount
for cement plays as a route cause for additional financial burden for economically weaker section. It increases the cost of finance. So the study has been undergone to analysis the prospects and issues of states‟ cement brand promotion activities entitled on “The States’
intervention as Brand Promotion;
Strategies and Issues with special reference to Sivakasi Taluk of Viruthunagar District ”
4. SCOPE AND LIMITATION
The study has confined its scope to analyse the need of interventions of Tamil Government, and its strategic approaches for the launching of new brand of cement, marketing strategies and all other brand promotional activities. The study also evaluated the various issues relating to brand positioning activities such as delay in distributions, lack of proper advertisement and disadvantages of state marketing programmes .The study also evaluated the customer‟s brand choice dimensions. Such as personal attitude, credibility, price, quality etc. The study is also confined with its scope of area of study as Sivakasi taluk of Vruthunagar district of Tamil nadu only. The period of study is from 2015-16 to 2016-17.
5.OBJECTIVES OF THE STUDY
To Know the Demographic factors of the selected respondents in Sivakasi taluk of Vruthunagar district
To analyze nature and pattern of Marketing and Brand Promotion strategies of Amma Cement in Sivakasi taluk of Vruthunagar district
To evaluate the customer attitude towards states‟ Branded cement in Sivakasi taluk of Vruthunagar district.
To find out the problems faced by the respondents while using states „Branded Cement in Sivakasi taluk of Vruthunagar district
6.METHODOLOGY
It is descriptive study. The suitable statistical tools have been used for analyzing the primary data. The primary data were collected from different category of Customers, such as; Individual users and small Contractors in Sivakasi Taluk of Viruthunagar District. The primary data were collected by using the interview schedule. The Simple random sample method will be adopted in this study. 100 respondents including both Individual users and small Contractors from the Receiving the certificate from revenue
authorities regarding the need for cement and income level of customer
Delivery of AMMA Cement waiting in Queue for Distribution of
Cement
Sivaksi Town and selected villages of Sivakasi Taluk by using lottery method.
Collected data has been classified and categorized for Tabulation. The statistical tools such as Percentage analysis, average, mean Standard deviation and Chi-square are used for the analysis of the data.
7. DEMOGRAPHICAL PROFILES OF THE SAMPLE CUSTOMERS OF AMMA BRAND CEMENT
The major features of the Demographical profile of majority of Customer of State Branded cement consists of Low level literacy, Poor Knowledge in Civil engineering works, construction for their own purpose, residing at rural location.(Table no;1) 8. STATE BRAND PROMOTIONAL PRACTICES
It is observed that politicians and members of local bodies create the brand awareness for this product. In addition to it, News from press media and T.V
Channels and state advertisement equally promote this brand. The state Government fixes the ceilings of sales of cement to the customers. Only 40 bags of Cement are delivered for the construction of per 100 square feet. Only 20 bags of cement are to be marketed to repairing and maintenances works per 100 square feet of existing building. The preferences are reserved for economically weaker section. The reserved and restriction strategies of Brand promotion secures and retains the particular types of customers permanently. But it is not possible to capture the market shares from industrial users and big contractors.
Nearly 120 bags of cement are purchased by an average by single customers.
Fixation of ceiling by state authorities encourages the multi-brand preferences.
The price per bag is fixed as Rs.190 without any tax is the best determining factor for this brand rather than other brands of cement.(Table no:2)
Table No: 1 Demographical Profiles of the sample Customers of Amma Brand Cement
(Sources: Complied from primary Data)
Sl.no Profile No’s of the sample Respondents Percentage
Female Male Total
I Age
Below -18 years - 02 02 02.
18 years to 30 years 10 15 25 25
31 years to 45 years 24 18 42 42
46 years to 60 years 12 12 24 24
Above 60 years 04 03 07 07
Total 50 50 100 100
II Educational Qualification
Uneducated 05 07 12 12
Primary level 12 13 25 25
Secondary level 17 17 34 34
Higher Secondary 15 5 20 20
Graduation and Above 01 -- 01 01
Diploma/ others - 08 08 08
Total 50 50 100 100
III Knowledge in Civil Engineering Technology
Obtained 08 09 17 17
Not Obtained 42 41 83 83
Total 50 50 100 100
IV Marital Status
Married 38 32 70 70
Unmarried 12 13 25 25
Divorced /widow - 05 05 05
Total 50 50 100 100
V Residential Area
Urban 15 15 30 30
Semi-urban 10 19 29 29
Rural 25 16 41 41
Total 50 50 100 100
VI Family Status
Joint family 05 17 22 22
Nuclear family 42 29 71 71
Single 03 04 07 07
Total 63 72 135 100
Table No: 2 Marketing and Brand Promotion Practices in Sivakasi Taluk of
Viruthunagar District.
(Sources: Complied from primary Data)
9. EVALUATION OF STATES’ BRAND PREFERENCE OF CUSTOMERS
Table: 3 Perceptions of Sample Respondents on States’ Brand Preference
Sl
no Problems and issues Individual Users N=63 Small Contractors N=72 “t”
Value Level of Significanc Mean
x
Std eDeviation‟s‟ Mean
x
StdDeviation‟s‟
1 Waiting in Queue 4.2299 1.938 4.6667 1.887 2.25* 0.027
2 Limited quantity of Supply 3.1349 1.016 2.8904 1.200 1.36 0.198
3 Pre- payment 3.0810 1.468 2.7596 1.374 1.32 0.189
4 Storage and Transportation 2.9770 1.540 2.7407 1.417 0.93 0.355
5 Quality 3.7931 1.132 3.6481 1.200 0.72 0.479
6 Formalities and relationship
with Government officials 3.4138 1.007 3.5186 0.948 -0.61 0.534
(Sources: Complied from primary Data)
Sl.no Profile No’s of the sample
Respondents Percentag e Female Male Tot
al
I Brand Awareness
Officials of Government and local bodies 05 07 12 12
Politicians & Elected Members of Local bodies 12 13 25 25
News and Advertisement 17 07 24 24
Contractor and Masons 15 05 20 20
Friends and Relatives 01 18 19 19
Total 50 50 10
0 100
II Quantity of Purchases of Amma Cement
Below 40 Bags - 05 05 05
41 bags to 80 Bags 10 12 22 22
81 bags to 120 Bags 24 12 36 36
121 bags to160 Bags 12 18 30 30
161 bags to 200 Bags 04 03 07 07
201 bags to 240 Bags 50 50 10
0 100
Above 241
Total 50 50 10
0 100
III Usage of Brands
Single Brand (Amma Cement) 15 13 28 28
Multiple Brands 35 37 72 72
Total 50 50 10
0 100
IV Duration of Waiting Period
One Week 39 33 72 72
2 week to 4 weeks 11 12 23 23
Above one moth - 05 05 05
Total 50 50 10
0 100
V Brand Determination factors
Price 25 29 64 64
Tax Concession 10 15 25 25
Availability ,Reliability and suitability 05 06 11 11
50 50 10
0 100
VI Brand promotion Strategies
Compulsory purchases to Green house and other
Housing Scheme 27 37 64 64
Possibilities of purchases of government & small
contractors 23 13 36 36
Low budgeted houses , work shed and toilet 03 04 07 07
Total 50 50 10
0
100
both the two types of customers to Amma cement has been perceived nearby similarly. The Mean scores of the problem of waiting in Queue for the period of range from one week to one month are the important issues. The Sample respondents has also been perceived negatively the quality of this branded cement when compares it other brands.
Another challenge to the customers of this brand is prepayment of total amount of purchases before one or two weeks from the date of delivery. It indicates the shadows of state monopoly. The officials from revenue department and civil supply department should be adopting the social and relationship marketing approaches.
9. SUGGESTIONS AND CONCLUSION The state policy of the economic democracy and equal distribution of national income and arresting the monopolistic market structure pave the way for the state government to introduce the State branded cement at low price without tax. The relationship marketing
concept, revising or raising the ceiling of sales of state branded cement per square feet of construction reducing the queue length in distribution are the major points to be considered in redefining the present brand promotion strategy
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