Published by MBA Skool Team, Last Updated: March 06, 2017
Marketing Strategy of Ambuja Cement analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Ambuja Cement marketing mix, help the brand succeed in the market.
Ambuja Cement marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Ambuja Cement Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Ambuja Cement marketing strategy can be explained as follows:
Ambuja Cement is a leader in cement manufacturing in India. The main product for Ambuja Cement is cement which is well suited for Indian environment. In cement products 93% consists of PPC cement i.e. Portland Pozzolana Cement. Ambuja Cements has a special cement designed for the needs of roofs known as Ambuja Plus Roof Special. It also provides construction materials under the product name Alccofine Micro Materials which used in various large infrastructure projects such as bridges, flyovers, dams etc. It also provides other specialised building materials such as RailCem, mineral admixtures, Dirk Pozzocrete, Powercem and cement grout for specific requirements of large projects. This gives an insight in the offering in the Ambuja Cements marketing mix product strategy.
Apart from this Ambuja Cements provides customized services to individuals, masons, contractors, architects and engineers.
The individuals are provided with basic services, products and even expert site services such as mix proportioning, concrete testing etc by Ambuja Cements. The masons and contractors are provided not only with their products but also with services such as skill enhancement workshops, certification, soft skill programmes and updates latest from the industry. The architects and engineers are provided with a variety of products and specialised training, workshops, technical lectures, customised solutions, mix design trials, onsite support team.
Ambuja Cement Price/Pricing Strategy:
Below is the pricing strategy in Ambuja Cement marketing strategy:
Ambuja Cements has a varied pricing strategy based on demand, product type, industry trend and competition.
This sector has a competitive pricing strategy although majority of fluctuations are dependent on the prices of raw materials, taxes imposed by the government, transportation costs, demand and intensity of competition in certain region. Since cement is not a one-time one unit buy product. Sales of Ambuja Cements products is dependent in providing discounts on the purchasing quantity of bulk orders which range from 200 bags to 1000 bags or more and hence the prices vary accordingly from as low as Rs. 245/ bag to Rs. 325/bag. As quality is almost similar among the competitors price differences are hardly ranging from Rs. 5- Rs. 20 per bag and hence quite less to differentiate. Since this industry faces tax fluctuations and demand fluctuations, production is affected hugely and whole industry gets affected as a whole where the smaller players find it difficult to survive. This gives an overview of the pricing strategy in the marketing mix of Ambuja Cements.
Ambuja Cement Place & Distribution Strategy:
Following is the distribution strategy in the Ambuja Cement marketing mix:
Ambuja cement is reaching its customers through its well distributed network of dealers, sales offices and warehouses present across the country. The Ambuja Cements sales offices have dedicated sales team which looks after the customers which can be basic for individuals to specialized service to engineers or contractors. Ambuja Cements has across the country 4 captive ports and 4 bulk cement terminals to supply efficiently to the various needs of the customer present across the country. Ambuja Cements has a network of 48000+ retailers and dealers with whom it has built trust and hence is able to convert sales and stand out in the situation of stiff competition. With all this it has been able to gain market share in major places in west and south such as Mumbai, Cochin and Surat. Ambuja Cements also monitors it presence and growth all across the country through Net Promoter Score which helps it to focus on the problematic sectors more. It also is providing technical help with the help of 300 civil engineers and 27 Ambuja Knowledge Centres which work closely with the contractor, masons and individuals.
Ambuja Cements also was able to reach to 20000 contractors through the mobile apps which also provide training and technical knowledge and in the way build relationship with them.
Ambuja Cement Promotion & Advertising Strategy:
The promotional and advertising strategy in the Ambuja Cement marketing strategy is as follows:
Ambuja Cement has tried to gain customer mindshare with the help of its series of ad campaigns which have been running through years. Ambuja Cements has also associated with the wrestler Khali in its recent advertisement in 2015 and was quite a hit. Ambuja Cement uses all media to create brand awareness in its marketing mix promotion strategy. Ambuja Cements also takes part in variety of event and campaigns to build relations with its customers as well as show case its research and development by providing innovative solutions at various global and national platforms. Some noteworthy events are Ambuja Cements took part in Make in India week-2016, showcase solutions at Green Building Congress 2016, 7th Vibrant Gujrat Summit 2015. It also organised Ambuja Jaipur Marathon 2014. Ambuja also stands out by supporting various CSR initiatives through its Ambuja Cement Foundation. This Foundation has supported various schools and setting up Institutes for skill development such as Skill and Entrepreneurship Development Institutes. Hence, this completes the Ambuja Cements marketing mix.
About Ambuja Cements Ltd:
Ambuja Cements Ltd. is a leading cement manufacturer and supplier on the Indian soil and it is a part of the conglomerate LafargeHolcim. LafargeHolcim is the biggest conglomerate which produces cement and is a merger between Holcim Ltd. and Lafarge SA in July 2015. It was initiated in 1983 as Gujrat Ambuja Cements Ltd. and acquired by Holcim Ltd. In 2006. With the famous philosophy “I CAN” it goes on to provide a sustainable approach in cement manufacturing which is thought to be an industry hampering the environment than building it. Ambuja Cements has got annual capacity of 29+ million tonnes which it achieves with 5 manufacturing units, 8 grinding units, 4 bulk cement terminals spread across the country. It has annual revenues worth Rs. 9638 crores. The headquarters of the company is situated in Mumbai and is headed by CEO Ajay Kapoor.
Ambuja Cements has got five subsidiaries of which four are located in India and one in Nepal. It has a majority stake in ACC cements.
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