indian cement industry

PRESENTED BY “THE QUALITY ALL” GROUPPRESENTED BY “THE QUALITY ALL” GROUP

INDUSTRY OVER VIEW:-INDUSTRY OVER VIEW:-

SegmentationSegmentation

• 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.

SegmentationSegmentationIndustry 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 driversDemand drivers

Marketing mixMarketing mixMarketing mix is the combination of elements that you will use to market your product. (4 P’s)

Marketing mix Marketing mix continued..continued..

The key factors affecting price sensitivity:The key factors affecting price sensitivity: i) stock price movements (IPO) of cement companies.i) stock price movements (IPO) of cement companies. ii)Seasonal changes .ii)Seasonal changes . iii)Natural calamityiii)Natural calamity

Marketing mix Marketing mix continued..continued..

Distribution channel of cement has 3 level distribution channel.Distribution channel of cement has 3 level distribution channel.

Marketing mix Marketing mix continued..continued..main shortcomings in the distribution are:- main shortcomings in the distribution are:-

Lack of good communication channel

Roadways Distantly located plants

High sales tax on import from other states

High transportation cost

Marketing mix Marketing mix continued..continued..

“Jaan Wahi, Pehchan Nai”- ULTRATECH

Marketing mix Marketing mix continued..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 & Branding & AdvertisementAdvertisement

Though being a commodity product, branding is important for Though being a commodity product, branding is important for a cement company. a cement company.

REVENUE:-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 & Branding & AdvertisementAdvertisement continued.. continued..

The cement industry uses less amount for advertising as the T.V. and hoardings, and print media count very less as compared to the above two.

The film Chak De India, promoting women's hockey in India, became an all-time hit. In the movie UltraTech was the sponsor of the Indian women's hockey team

Sales managementSales 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 Sales management continued…continued…