How good is the strategy?

Branding & Celebrity Endorsements: How good is the strategy?

Cement companies are aligning their selling strategies with branding campaigns
and celebrity endorsements. A review of some of the innovative branding and
marketing exercises of the Indian cement companies and their impact on the
businesses of these companies.
Branding and marketing are the strategies adopted by the companies to
differentiate their products from the rest of the pack. Today most of the
products, be it consumer durables such as TV, refrigerator, computer, mobile
phone, etc. or fast moving consumer goods such as soaps, toothpaste, shaving
cream, deodorant, etc. come with a distinct brand identity. Cement players too
have realized that in order to retain customer loyalty, they need to create their
distinct brand identity.
Cement as a brand concept:
Cement being a commodity, it is challenging for cement companies to
differentiate cement manufactured by one company from cement manufactured
by other companies. This is where an effective branding and marketing exercise
plays an important role. When new players are making a foray into the Indian
market and existing players are trying to stave off the competition and
consolidate their positions.
Proper attention and focus need to be paid to develop an effective branding and
marketing strategy by cement companies. The skill here lies not just in capturing
a market and selling a commodity but creating a distinct brand space for the
commodity. Commenting on the need to build a brand out of a commodity, P.K.
Ghosh, Chairman, Ercom India, stated, Cement is a widely used commodity in
bulk, next to probably consumption of wheat, and proper branding of the
product is a very critical part of the overall marketing strategy. A brand has to be
created around some significant Unique Selling Points (USP), which could either
be the strength, reliability, quality, trust or heritage etc. Leading cement brands
in India like Ultratech and ACC have been in a position to improve their market
across the country through their brand image. The driver of the brand value
includes the brands ability to attract consumers and improve relationship with

them, thereby improving sales.

An effective branding strategy must also result in proper positioning of the
product. Commenting on the role played by a branding strategy in the
positioning of a product, Ghosh stated, The branding strategy should help in
benchmarking of the product and build a positive lasting impression in the
minds of the targeted consumers. For example Ambuja Cements brand is built
around the concept of Strength, Binani Cements brand is based on long
lasting durability whereas Ultratech have positioned their brand as the
Engineers Choice.
Different companies have adopted different branding practices in order to retain
customer loyalty. Commenting on this aspect, Ghosh stated, During earlier
days, the ACC brand was almost synonymous with cement, which has probably
still influenced Holcim to retain the brand name of ACC and Ambuja and not to
use Holcim brand. On the contrary, Lafarge adopted its own brand image over
the previous brands.
Elaborating on the importance of cement as a brand concept, SVS Shetty, CEO,
Anjani Portland Cement, stated, Cement is very much a brand concept.When
most of the brands manufacturing cement maintain standards above BIS
specifications, an awareness of internal brand building through good corporate
culture with focus on employees & external representation will hold great value
with the customers.
A well planned and executed brand strategy also results in increased sales for
the company. This is due to the fact that it helps the cement companies in
developing significant market space for its product, as people normally tend to
go with the brand name, which has a good market reputation. This automatically
translates into increase in sales and a relatively larger market share, with better
realization than unknown brands.
Innovative branding & marketing strategies
Reaching The Consumers Directly
Many cement companies have adopted the practice of reaching the customer
directly alongwith the normal practice of interaction with the regular trade
channel. This is helping companies in understanding the buying process and
preferences of the customer and accordingly allocate their efforts and
resources. Commenting on the need to open a direct communication channel
with the end consumer, BK Singh, ED, GM&C, Dalmia Bharat Group said, We

have started working with the end consumers directly in addition to our regular
processes of engagement with the trade partners and influencers.
For Anjani Portland Cement, a leading cement player in South India, the simplest
mantra of brand practice is to draw direct communication lines with the
customers and meet all their service requirements. The company has initiated
several pathbreaking marketing concepts like Anjani Studios, NirmaanSanjeevani
(Mobile Concrete Solutions) to take the companys products and services to the
customers doorsteps through vaastu suggestions, assistance for structural
design and drawing, cost estimation for construction and rendering construction
supervision to end users. Commenting on this unique branding practice by the
company, Shetty stated, A visit to Anjani Cement Studios at the corporate office
and towns of Bhimavaram and Kakinada will enlighten the customer about all
aspects, stages and facets of cement. NirmaanSanjeevani has proved to be a
panacea for all construction activities in its areas of operation. Apart from these
services, the company also provides immediate accessibility of trained structural
engineers for giving structural advice and demonstrating the best uses of
cement at all stages of construction, their procedures and raw materials. This
practice has proved to be of great value. The company promotes its brand as
cement experience rather than cement sale.
Film Branding
Films have always been the most popular form of entertainment for the majority
of the Indian population. Hence, this proves to be the most convenient and all
encompassing medium to reach people. This in-film branding opportunity was
used by UltraTech cement for the first time in the cement industry. In the 2008
Hindi movie, Chak De India, UltraTech Cement was the sponsor of the Indian
hockey team. The brand was visible throughout the movie.
Celebrity endorsements
Cement companies have also jumped on the bandwagon of roping in celebrities
in order to promote their brands. Binani Cement is one of the mid-sized cement
brands of the BrajBinanigroup. Bollywood superstar Amitabh Bachchan is the
brand ambassador for the brand. The tagline for the commercials is
SadiyonKeLiye.Commenting on the practice of having celebrities endorsing
cement products, Ghosh noted, Due to increased competition, cement
producers are more and more realizing the need to engage celebrities to act as
their brand ambassadors. For a common consumer, use of celebrities promoting
the cement brand always has a unified appeal due to the familiar personalities,
just like the case of other FMCG products. However, cement companies need to

be prudent and clearly define the significant USP of the cement being marketed.
This will enable the consumer to be able to relate to the personality of the
celebrity to those features and qualities around which the brand is built. It
makes sense for a celebrity to endorse a cement brand when it is new in a
particular market and needs a credible vehicle to build confidence in the minds
of consumers and channel partners. Explaining the influence exerted by
celebrities on consumers, Shetty stated, Many companies have taken the
support of celebrities to reach out to customers. The popularity of these
personalities is meant to boost the customer confidence in the brand. But
whether there is a boost in sales is best answered by those who have assigned
Bollywood heroes and cricketers as brand ambassadors.
Future of Branding for cement companies
Due to increased competition with passage of time, the significance of branding
in cement products is likely to increase further. The brand war will intensify and
become more aggressive with the induction of not only celebrities to promote
them on the television, newspapers and roadside hoardings, but to also involve
them on a more continuous basis, as brand ambassadors.
However, sounding a note of caution on the aspect of branding, Ghosh said,
The future of branding may have its own problems and turbulences particularly
due to the likely consolidations, takeovers and mergers, which may happen in
the cement industry in near future. The most pertinent example in this case is
of Grasim Cement which had its own brand like Birla Plus& Birla Super and L&T
which was holding premium segment of cement market. Grasim faced a tough
task of making the choice between merging L&T brand with the existing brands
of Grasim or to launch a new brand for the consolidated company. The company
decided on the latter and went ahead with the Ultratech brand and positioned
itself in the premium segment of the market, which L&T earlier enjoyed. The
Ultratech brand has been positioned as Engineers Choice. This branding
exercise has met with great success. However, it could be a risky affair for some
other company to carry out such branding exercise which might end up as a
failure as well.
Commenting on the branding role of cement in the future, Shetty commented,
Brand value will be strongly driven by future growth projections and the hurdles
posed to the present growth curve. With so many competing brands in the
country, branding and product promotion activities will play a much bigger role
in coming years.
Presently, brand strategies are presently centralized, but going forward, brands

with broadband consumer appeal will have values. There is a gap between
perceptions of advertisement requirement in rural and urban market. Focus on
branding in rural market will also be needed in future, as consumption will be
increasing in these segments.
A credible brand gains more likeability- OP Puranmalka, Wholetime
Director, Ultratech Cement
How do you perceive cement as a brand concept?
Cement is no longer just a commodity. Today we have a glut of cement flowing
in from several parts of the country. More and more players are getting into the
national stream. Hence branding makes sense as it is a major differentiating
factor. Today there is a visible competition amongst cement brands to gain
space in the consumers minds. The common consumer is generally not well
versed with the physical and chemical characteristics of cement. His decision is
based on the trust he lays in a brand. For him the name matters. Similarly
corporate and instituitions would also like to be associated with a dependable
brand. Hence a credible brand gains more likeability amongst consumers.
What are your present marketing strategies for promoting your products?
The brand is positioned as An Experts Choice. The strategy is to showcase
UltraTech as a young, dynamic, premium and credible brand which caters to all
needs of the modern engineer and contemporary construction needs. Here is a
brand that he can lean back on to translate his dreams into reality. We have also
used cricket extensively for brand exposure. We ensure that the brand recall is
high across markets.
How has branding helped cement companies in increasing their sales?
Branding helps differentiate the products. Brands have become value drivers. In
the case of individual home builders generally the purchase is done by a petty
contractor or mason. Branding helps in better recall and recognition of the
specific product. It also helps in increasing the trust level of consumers. Repeat
purchases are also facilitated by proper branding. In the case of institutional
buyers, branding helps in official specification of the product especially in
tenders.
Do you feel brand promotion by celebrities is an effective strategy to reach
the targeted customer?
Many companies have being using celebrities for their brands. Some claim to
have benefitted from this. When a celebrity is used one needs to ensure that
there is a Brand Fit. Secondly the celebrity should be properly placed in the
script. When it comes to cement, the consumer looks forward to building a

strong and durable structure and endorsement by a celebrity may not be a

catalyst in the decision process. In some cases the celebrity will be remembered
and the brand connect may be low rendering the branding process redundant.
How do you see the future of branding for cement?
Branding will gain more importance in future, because strength is hygiene in
cement. With the advent of new players and increase in capacity by current
players, branding is imperative.
The first step is to create differentiation - BK Singh, Executive Director,
GM&C, Dalmia Bharat Group
What is your view on cement as brand concept?
To get a perspective it will be insightful to do a quick check on some of the
adjacent industries such as paints, sanitary ware, tiles and electrical switches etc.
These industries are at various stages of evolution. Paint and sanitarware are
ahead by more than a decade compared to cement nearer to the consumer
and engage directly with them at the point of purchase. Cement has still a long
way to move nearer to the consumer and establish as a brand.
How does one differentiate one brand from another?
The shift from a commodity to a brand in plain terms is a process of connecting
the core product with the end consumer. The first step is to create
differentiation in terms of quality, price, support and reliability followed by
creating expectations of trust, affection, loyalty and reputation. Cement, as
commodity needs to move towards an augmented offering by creating
differentiations.
What are your present marketing and branding strategies for cement?
We have started working with the end consumers directly in addition to our
regular processes of engagement with the trade partners and influencers.
Dalmia Bharat group is present in south, east and north east markets with very
strong brands. The challenge for us is to craft a strong brand strategy for the
overall organization.
Has branding helped your company increase sales?
We have strong belief in investing in our brand and experienced that there is a
direct correlation between the investment and its positive impact on sales.
Additionally it creates higher loyalty of the consumers towards the brand and
can command a better price which can be again ploughed back into the brand
building process. It is a positive circle.

Do you feel brand promotion by celebrities is an effective strategy?

It is highly subjective and it is a matter of options one exercises. But personally it
makes sense where the brand is new in a particular market and needs a credible
vehicle to build confidence in the minds of consumer, influencers and channel
partners.
What are the pitfalls in branding strategy?
Brand building is a well thought-out strategy which is linked to the overall
organizational goals. Any lack of synergy will weaken the whole exercise and can
create dissonances and discontinuity in the minds of the consumer and public at
large. Hence in my view, crafting the organizational goals is must before brand
strategy is developed.
How do you see the future of branding in cement?
I think, we will see many initiatives in creating differentiations, focus on special
application cements and enhancing of the consumer engagement process.

Future strategy.
NEW DELHI: The world's second largest cement manufacturer, Holcim, which controls
India's largest cement maker ACC and Ambuja Cement, is firming up an elaborate plan to tap
India's rural markets and hopes to achieve a "substantial shift" in revenues from this market
in the next 3-5 years.
The Swiss major has mandated the National Council for Applied Economic Research
(NCAER), a Delhi-based poilcy research organisation, to conduct a comprehensive study on
rural housing in India. The report will also review the existing policies and programmes of
the government and identify opportunities for public-private partnerships. It's findings will
form the basis for Holcim to devise its strategy for rural housing and infrastructure.

Broadly, Holcim will seek participation in government programmes as well as private

housing by engaging local government, local builders and skilled manpower. "We have done
it successfully in Indonesia, Mexico, Sri Lanka and Ecuador and we think we can replicate it
in India on a much larger scale," says Holcim Asia Pacific management team member Amit
Kothari.
Mr Kothari said the initiative was started in post-Tsunami Indonesia as a CSR project but
soon turned into an attractive business model. "We can't make much headway in India if we
just keep supplying cement.

By institutionalising training and development programmes, we can create a large class of

skilled manpower such as masons, who can then aspire for a better living. These masons
could in a way act as our brand ambassadors," he says, adding, "We recognise masons as
having a major influence on the choice of building material in rural housing projects."
ACC has already signed an MoU with an NGO 'Development Alternatives' to set up a Center
of Excellence for Sustainable Construction and Rural Housing, which will train masons and
other skilled workers needed for construction industry. Besides targeting masons, Holcim is
also looking at partnering local contractors and local government agencies for a share in
public projects.
The company won't take up construction projects but would act as a building material and
technology supplier to local contractors. "Any stand-alone enterprise will not be of much
help. Engaging local government will be the key to success," says Mr Kothari. The company
plans to pilot its project in a year from now and leverage the distribution strength of both
ACC and Ambuja to make it a success.

MARKETING STRATEGY OF ACC CEMENTSLIMITED

1 . S E G M E N T A T I O N : - The company has segmented the market
geographically . it sells its products all over India with major presence in northern
region2. PRICING STRATEGYBefore deciding the price of the cement company
has considered the following points:-Cost factor:-Manufacturing costTransporting costStoring and material handlingOther costOfficer
expensesOther expensesTax and interestCompetitors price and offeringMARKETING STARTEGY
Company conducts market surveys to identify market trends and customers
response,company position in the market etc. There is R and D department which
continuously trying toimprove the quality of the product at the minimum cost and
trying to meet the demand of thecustomer.
MARKETRING STRATEGY FOR COMPETITORS
Company always keeps an eye over its competitors activities and its offerings
liked i f f e r e n t p r o m o t i o n a l s c h e m e s , p r o d u c t p r i c e e t c . I t a l s o t a k e s p r o p e
r a c t i o n a c c o r d i n g t o competitors strategy

DISTRIBUTION STRATEGY
The company is distributing cement by following ways:-Direct to consumer Depot1.whole
seller 2.retailer
Director General of sales and disposal1. Tender sales2. Government departmentNon trading sales1.
wagon load2 . I n s t i t u t i o n a l s a l e s Method of developing dealers:Company conducts the market survey also to motivate the sub dealer and
advertisethe programmer. The company takes profile of the dealers and gives dealership
only to thosein a particular area where the company is not having already existing dealer.

OBJECTIVES OF MARKETING STRATEGIES

1. To increase sales in high realization 2. To develop stockiest network consisting of retailer
or final outlet which directly sells3. Increasing sales of branded cement ie Acc white cements
4. Marketing distribution network more efficient and cost effective.The company has a
dedicated team of highly skilled professionals and Experiencedapplication engineering.
They are functioning in an advisory capacity. Besides handlingtheir
constructional problem the cell offering all kind of assistance in the selection of
theright cement for different application to ensure cost effective , durable and safe
construction