Published by MBA Skool Team, Last Updated: December 09, 2017
Marketing Strategy of ACC 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 ACC marketing mix, help the brand succeed in the market.
ACC marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the ACC Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in ACC marketing strategy can be explained as follows:
ACC Cements is one of the largest manufacturers of cement and a robust company in the construction equipment industry. The products in its marketing mix are categorized according to quality and this are priced accordingly. Some of the products of ACC are:
Portland cement: This is the most commonly used cement in all infrastructure constructions. ACC promises a great strength of this product. The SKUs are 50 kg bags.
Ready mixed concrete: This is a mixture of Portland cement, gravels, and crushed stones, to provide appropriate mixture for providing maximum durability to the buildings.
Bulk cement: The cement is provided in bulk quantity, where it is transferred directly from factory to the site. This helps in cost saving as well as offers no money locked up. These are transferred in specially designed railway wagons, in association with Government.
Premium cement: ACC Gold and Concrete+ are superior quality products which offer value on strength and durability. They are engineered to garner qualities of moisture resistant, enhancing the durability of constructions. ACC tries to innovate products and procurement techniques to give maximum benefit to users, through government and other arty tie ups
ACC Price/Pricing Strategy:
Below is the pricing strategy in ACC marketing strategy:
ACC products are priced on cost plus basis to transfer savings to customers.
As the product is purchased in bulk, hence initial traction of customers is most important.
Segmented price: The product segmentation, allows company to charge varied prices for each category. Pricing also depends on the packaging of the product. Ready mixed products are priced more due to their easiness to use. Similarly, the basic material Portland cement is priced lowest. Other premium category cements are priced accordingly cause of durability they offer.
Value pricing: As cement is ordered in bulk, hence, pricing is done at minimal margins, as the cost can recovered by supplying multiple units. Also a little less price, attracts customers. It helps building relationships with the builders who can offer different projects through word of mouth.
Cost effectiveness: The pricing of ACC Cement products can be minimized because being an old and experienced company, the operational cost plays an advantage for it. They have tried maximizing the manufacturing efficiency as well as distribution efficiency allowing them minimal cost requirements.
ACC Place & Distribution Strategy:
Following is the distribution strategy in the ACC marketing mix:
The headquarter of ACC Cements is in Mumbai with manufacturing locations spread across country in around 20 cities. The headquarter is called ‘cement house’. The cement serves the projects for India as well as neighboring countries, where the cement is exported. These countries include mostly south Asian countries. ACC distributors are available round the country to minimize transportation costs while serving the customers. The outlets reach to customers directly. Most sales are directly to the real state builders and companies. Hence, managing relations with builders is an important part of managing sales.
Along with this, ACC ties up in government projects, providing cost benefits and maintain relationships.ACC cement company has evolved with time, and now offers the facility to order online also.
ACC Promotion & Advertising Strategy:
The promotional and advertising strategy in the ACC marketing strategy is as follows:
ACC Cement uses many media channels to market itself. Due to history and brand status, customers are pulled to the brand rather than sales being pushed. Also relations with builders help gain a lot of promotion for the brand. Cement is something that will determine not just the durability of homes but also a major safety factor. Hence, customers buy it only if they have full trust on the brand. Hence, word of mouth being the most crucial promotional tactic as people will only believe people who have experience rather than buying it cause a celebrity is telling them so. To enhance brand recognition and recall, ACC also takes help of TV ads. The most famous tagline had been ‘Cement se Badhkar’ where it tried o encapsulate the relationship between cement and safety and homeliness. Other below the line ads like print media and wall posters are also used. Hence this completes the marketing mix of ACC Cement.
About ACC Cements:
ACC, Associated Cement Companies Limited, is a cement industry that provides different types of cements for building materials. The parent group is LafargeHolcim which controls the management of company. ACC was formed initially with the merger of 10 cement companies owned by Tatas, Dinshaw group, Nixon, Khataus. Major competitors include Ambuja and Ultra Tech. The infrastructure industry is an evergreen industry and thus the demand for cement.
However, the economic slowdown impacts the industry seriously. The current circumstances of demonetization has slowed the infrastructure business which impacted cement industry as well.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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