Marketing Proposal

This marketing proposal, designed by Raileanu Carmen is created

exclusively for use by MEDCEM CAMEROUN S.A.

1. EXECUTIVE SUMMARY
The following marketing proposal presents the results of extensive analysis,
study of market
trends, and application of specifics unique to MEDCEM CAMEROUN S.A . We believe
this proposal
provides a complete marketing strategy which will culminate in highly successful
results for your
business.

2. SITUATION ANALYSIS

2.1. MARKET OVERVIEW

Cement is the most vital binding element in any form of construction activity and when used in
combination with other ingredients, it is a major part of two of the main mixtures used in construction:
concrete and mortar.
Overview of the global cement market
The cement industry is largely propelled by the surge in building and construction activities around
the globe. Advancement in technologies, growing demand for housing, higher disposable incomes,
and rise in the number of nuclear families are factors that have translated into increasing demand for
cement from the building and construction sector. It is no wonder then that the Asia-Pacific region
holds the largest share of the global cement market as far as consumption is concerned. Emerging
economies such as India and China have been consistently contributing towards the demand for
cement with the rise in number of residential and commercial buildings.

However, there are some factors that pose to threaten the market during the course of the forecast
period from 2013 to 2019. Rising incidences of lung cancer caused by cement dust and the energyintensive cement manufacturing process are expected to inhibit the expansion of the market.

Middle Africas Cement sector is undergoing the strongest period of sustained

growth in its history, with multiple investments across the region to boost
production capacity.
Despite the local production insured by Cimencam and Cimaf , Cameroon remained
dependent on imports due to the inability of the producers to meet the demand.

2.1.1 Market Demographics

2.1.2. Market Needs

In tandem with the growth in capacity, Cameroon has experienced sustained

growth in cement demand

2.1.3. Market Trends

Consumption of cement is closely linked to the state of economic development and to the
economic cycle as well as to the changes in demographics and customer needs.
Sub-Saharan Africa looks set to continue to offer the highest growth rates for construction
globally over the coming years. As part of this growth story we have identified three key trends which will
support our forecasts over 2016.
The demographic change is expected to drive up cement demand over the coming decades,
Cameroons urban population is forecasted to rise to approximately 28 millions by 2023 which will
cause a massive increase in the housing demand and the countrys infrastructure expansion.
The growing middle class is also driving a boom in the commercial real estate sector , boosting the
construction of shopping malls, hotels and other leisure and hospitality projects.

The continued development of the public-private partnership (PPP) model across the continent,
massive investment into the cement industry to satisfy demand and the increasing presence of other
emerging market players in the development of African infrastructure.
Between population growth, urbanization, housing development, commercial real estate interest
and rising political stability over the coming years , we expect a real growth of the cement consumption in
Cameroon , averaging 8.3% annually to the end of our forecast period 2023.

Given cements bulkiness and weight, it is costly to transport,

particularly across Africa where the road networks are poorly developed. As a
result, the local cement plants sell their output within a 300 km radius and
have an operational capacity between 500.000 and 1.500.000 tones per
year.
2.1.4. Market Growth
Cameroons construction industry is reported to be a strong performer with a
growth forecast for 2016 of 2.7%. Analysts forecasts relatively stable growth rates
for the next 10 years, but ongoing structural problems are expected to limit the
countrys long-term growth pattern.

2.2. SWOT ANALYSIS

2.2.1 Strengths
2.2.2 Weaknesses
2.2.3 Opportunities
In order to attract new investors in the cement sector and encourage the growth of local production
capacity the Government of Cameroon decided to cut their cement imports. This decision will create
an opportunity

2.2.4 Threats
Although many African countries have a large unmet demand for cement, some analysts suggest there
might be too much new capacity.
Read the original article on Theafricareport.com : Infrastructure: Dangote's cement rivals | North Africa
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Prices in sub-Saharan Africa have averaged around $180/tn in recent years, compared with around
$100/tn worldwide. New capacity is likely to push prices down further.

2.3.
2.4.
2.5.
2.6.
2.7.

COMPETITION
SERVICES
KEY TO SUCCESS
CRITICAL ISSUES
MACROENVIRONEMENT

3.MARKETING STRATEGIES AND TACTICS

4. BUDGET BREAKDOWN -FINANCIALS, BUGETS AND FORECASTS
5.CONTROLS
5.1. IMPLEMENTATION MILESTONES
5.2. MARKETING ORGANIZATION
5.3. CONTINGENCY PLANNING