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  • Indian Cement Industry

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    Tahsin Akhtar
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    The cement industry focuses on relationship marketing to build trust with customers. Segmentation in the cement industry is based on product types like Portland pozzolana cement. Marketing mix (4Ps) and distribution channels are important factors. While cement is a commodity, branding is still important to achieve premium pricing and revenue. Relationship with distributors and dealers is also key to success given the reliance on the construction industry. Advertising spends are relatively low compared to other industries.

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    Brief research on Indian Cement Industry in Marketing perspective

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    The cement industry focuses on relationship marketing to build trust with customers. Segmentation in the cement industry is based on product types like Portland pozzolana cement. Marketing mix (4Ps) and distribution channels are important factors. While cement is a commodity, branding is still important to achieve premium pricing and revenue. Relationship with distributors and dealers is also key to success given the reliance on the construction industry. Advertising spends are relatively low compared to other industries.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    1K views15 pages

    Indian Cement Industry

    Uploaded by

    Tahsin Akhtar
    The cement industry focuses on relationship marketing to build trust with customers. Segmentation in the cement industry is based on product types like Portland pozzolana cement. Marketing mix (4Ps) and distribution channels are important factors. While cement is a commodity, branding is still important to achieve premium pricing and revenue. Relationship with distributors and dealers is also key to success given the reliance on the construction industry. Advertising spends are relatively low compared to other industries.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 15

    PRESENTED BY “THE QUALITY

    ALL” GROUP
    INDUSTRY OVER VIEW:-
    Segmentation
    • cement is a bulk
    commodity, so the
    industry is mainly
    product based.
    • Segmentation in
    cement industry is
    based on its various
    products .eg- Portland
    pozzalana cement,
    quick hardening
    cement, ready mix
    cement.
    Segmentation
    Industry focuses on relationship approach, so as to build and
    maintain trust centered relationship.

    The cement Industry is mostly done through mass marketing, as it


    doesn’t have any customized product for any specific group of
    customers.
    Demand drivers
    Marketing mix
    Marketing mix is the combination of elements that you will use to
    market your product. (4 P’s)
    Marketing mix continued..

    The key factors affecting price sensitivity:


    i) stock price movements (IPO) of cement companies.
    ii)Seasonal changes .
    iii)Natural calamity
    Marketing mix continued..

    Distribution channel of cement has 3 level


    distribution channel.
    Marketing mix continued..
    main shortcomings in the distribution are:-
    Lack of good communication channel
    High
    Roadways transportation
    Distantly located plants
    cost

    High sales tax on


    import from other
    states
    Marketing mix continued..

    “Jaan Wahi, Pehchan Nai”-


    ULTRATECH
    Marketing mix continued..

    Cement sector(specially ACC Cement) is


    now adopting sustainable development
    practices & they are trying to make
    cement which reduces the impact of
    green house gases.
    Branding &
    Advertisement
    Though being a commodity product, branding
    is important for a cement company.

    REVENUE:-
    As ACC is the most trusted brand in cement
    it enjoys the excess revenue and profit than
    others.
    Revenue for the year 2009, acc-Rs.8749 cr
    konark cement-Rs.780 cr
    Branding &
    Advertisement continued..

    The cement industry uses less amount The film Chak De India, promoting
    women's hockey in India, became an
    for advertising as the T.V. and all-time hit. In the movie UltraTech
    hoardings, and print media count very was the sponsor of the Indian
    less as compared to the above two. women's hockey team
    Sales management
     Cement industry has scope lies
    mainly in B2B rather than B2C. The
    reason being:
    1. Number of housing companies, real
    estate business is continuously
    rising. Demand for cement has
    increased in the housing sector
    ~53%
    2. most importantly, govt. has
    allocated Rs.1000 cr. To the cement
    industry for irrigation purpose.

     Relationship with the


    distributers/dealers is a key factor
    for the success and growth because
    the success of cement industry lies
    on long term relationship. E.g,
    India Cements with Gammon in
    Kolkata Metro construction.
     Relationship also indicates how it
    can attach its product with the
    individual home builders, which is
    also another key factor.
    Sales management
    continued…

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