Assignment

The IUP Journal of Brand Management, Vol. XIV, No. 2, 201764

A Comparative Study of Branding Strategies Harnessed by Indian Cement Manufacturers

Arijit Maity*

The Indian cement industry is the second-largest in the world, and a significant source of revenue and employment for the country. Post the deregulation of this sector in 1982, it has experienced a rapid surge in investments and has attracted several domestic and foreign players. This has created an urgent need for the manufacturers to distinguish their products from those of their competitors through innovative branding techniques. However, with cement traditionally being viewed as a bulk commodity and a low- value product, manufacturers must work against the grain to build brand awareness and recall, to be able to reach out to individual consumers, while also targeting larger, institutional users. Through this study, we examine the branding strategies adopted by leading cement manufacturers in India in order to differentiate themselves and, in turn, enhance sales.

* Associate Professor, Management Department, Budge Budge Institute of Technology, Nischintapur, West Bengal, India. E-mail: [email protected]

© 2017 IUP. All Rights Reserved.

Introduction The sudden proliferation of cement manufacturers and the inherently ubiquitous use of cement in construction activities have necessitated strong branding efforts by cement manufacturers, in order to change the prevailing view of cement as a ‘bulk commodity’, among consumers. Although cement purchases in India have been restricted to contractors and developers, individual home-owners now contribute up to 50% of cement purchases. Today, approximately 67% of consumption can be attributed to the housing sector, 13% to the infrastructure sector, 11% to commercial construction, and the remainder to the industrial construction segment. Efforts are now being made by the cement manufacturers to reach out to individual users to encourage them to make conscious purchase decisions. Effective branding has a direct impact on companies’ bottom lines, as customers are far more inclined to buy from brands that they know and trust.

The Role of Branding in the Indian Cement Industry A cement brand is built on the products’ Unique Selling Proposition (USP), with messaging that ‘speaks’ to buyers and resonates with their priorities. For instance, while Ambuja Cement is synonymous with ‘strength’, Binani Cement’s focus is on ‘durability’ and UltraTech—a premium brand—has defined itself as the ‘Engineer’s Choice’. These USPs, when substantiated with strong marketing initiatives, have helped to ‘cement’ the

65A Comparative Study of Branding Strategies Harnessed by Indian Cement Manufacturers

brand in the minds of consumers, facilitating better brand recall and hence increased sales.

The First Mover: Ambuja Cement Ambuja cement is one of the oldest cement manufacturers in India, and was established in 1983. The company and its product are named after the location of the first manufacturing plant—Ambuja Nagar in Gujarat. The company was also among the first cement manufacturers in the country to realize the potential of developing a strong brand in the cement industry.

Ambuja cement’s logo and brand positioning are focused on the brand’s USP of ‘strength’. The memorable logo (a strong man securing a building) and the tagline—Is cement mein jaan hai (This cement has life in it)—earned it much popularity and recognition at a time when the marketing of cement based on brand positioning was virtually unheard of in India. Ambuja cement is also the first cement brand to begin advertising on television. The Television Commercials (TVCs) attempt to humanize the concept of strength by correlating it to emotional bonds. For instance, one of the most popular TVCs depicts an orphanage which is soon going to be demolished to build a hotel. At the time of demolition, however, the bulldozer is unable to break the orphanage down owing to the use of Ambuja cement in constructing the building.

Ambuja cement has also demonstrated the immense adaptability of modern communication channels and trends, as demonstrated by the much-acclaimed TVC featuring the Great Khali. Further, building on the company’s ethos of humanizing the concept of strength by comparing it with the might of the wrestler, the TVC was a ‘viral hit’ on social media channels, where it was extensively promoted and was also praised by international publications.

The company makes extensive use of outdoor advertising during major festivals and has also developed merchandise such as caps, key chains and tee shirts, which are gifted to masons and contractors—who are major consumers of cement in India—thus further enhancing brand visibility and recall.

Reaching for the Top: Binani Cement Binani cement, the flagship subsidiary of the Binani group, is one of India’s most reputed cement manufacturers. While the company’s predominant sales are from the B2B sector, with Binani cement targeting real estate developers and construction firms, it has undertaken focused branding efforts so as to also enhance its market share in the consumer segment. Binani cement’s USP is durability, as endorsed by its television, radio and print campaigns.

In line with its brand ethos, Binani cement has signed on Bollywood celebrity Amitabh Bachchan as its brand ambassador and developed the tagline Sadiyon ke liye (for centuries). The company’s slogan has been praised by advertisers for its stark departure from the

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traditional USP of strength—which is extensively used by Binani’s competitors. By correlating the emotional significance of family values and bonds with the durability of cement, Binani has attempted to further humanize cement as a consumer product.

Growing from Strength to Strength: UltraTech Cement India’s largest cement manufacturer, UltraTech was formed in 2006, with the acquisition of L&T’s cement business by the Aditya Birla group. The company has relied heavily on its branding efforts to reinstate its presence as a prominent industry player. At the time of acquisition, the company had to choose between merging the L&T brand with its existing Birla Plus and Birla Super brands, and creating a new brand for the acquired company. At that time, the L&T brand already enjoyed a firm following in the premium cement market segment on account of its engineering prowess and superior technology and quality. Building on these strengths, the company chose to launch the all-new UltraTech Cement brand, which was positioned as an industry expert—the brand’s choice of color reflects the yellow of engineers’ hard hats. This is a direct allusion to the brand’s promise of being the ‘Engineer’s Choice’. Extensive promotional campaigns were undertaken to reinforce the fact that UltraTech was the all-new avatar of L&T. Company officials met with over 5,500 stockists and dealers to acquaint them with the new brand.

To further expand its footprint, UltraTech has also invested heavily in ATL promotional activities, such as film branding—UltraTech Cement sponsored the Bollywood blockbuster Chak De India, and the brand was featured prominently within the film and during promotions. Owing to the overwhelming popularity and viewership of the Indian Premier League (cricket) in India, UltraTech Cement has been a principal sponsor for the Rajasthan Royals and Sunrisers Hyderabad teams. Through these associations, the brand hopes to position itself as a nation-building company and thus venture beyond the conventional purview of cement marketing.

Similarly, the Birla White YuvaRatna awards were initiated to associate the concept of ‘Building beautifully and sustainably’ with the UltraTech brand. Through these awards, architecture students are invited to present their sustainable designs that make use of the company’s Birla White products. By reaching out to the next generation of architects and engineers—key decision drivers in the purchase of cement products—the company is aiming to create a lasting impact in the cement manufacturing domain.

For its innovative and unconventional branding initiatives, the UltraTech Cement brand has been the recipient of the Superbrand Award for the years 2011-15, while the Birla White brand has also been designated a Superbrand for the fourth consecutive year.

Future-Proof: Branding Initiatives Undertaken by Other Players

The Role of Brand Ambassadors The tremendous boost in sales for Binani Cement following the introduction of Amitabh Bachchan as its brand ambassador has encouraged several other cement companies to

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follow suit. For instance, Jaypee Cement’s promise of Andar se solid (Strong from the Inside) is represented by Sachin Tendulkar—a sports superstar known for his ethics and integrity. Similarly, M S Dhoni is the face representing Lafarge Cement’s products, which banks on his rock-solid reputation to emphasize the cement’s reliability. The manufacturers’ choice of brand ambassadors is heavily influenced by the overwhelming popularity that the sport of cricket enjoys in India. It comes as little surprise then that in addition to UltraTech Cement, India cements is also affiliated with the IPL as the official sponsor for the Chennai Super Kings team. On the other hand, Dalmia Cement has been challenging stereotypes by roping in Mary Kom—a female boxer—to represent a conventionally male-oriented product, in a male-dominated industry.

Market leader Ambuja Cement, however, has consciously refrained from roping in a celebrity endorser, despite investing heavily in marketing and promotional activities. The company has preferred to focus on its consumers as its brand spokesmen. Similarly, UltraTech Cement has been cautious about using known celebrity faces to promote its brand for fear of diluting the brand’s image. Instead, UltraTech Cement has focused on asserting its expertise and reliability by using imagery and messaging that resonate with engineers.

Consolidating Value With cement consumers—especially individual home-owners—becoming increasingly brand-conscious, several cement companies have revisited their branding so as to retain their brand presence and memorability. A good example of this is ACC Cement’s decision to switch from multiple product sub-brands, including Super, Samrat and Suraksha, to the mother brand, when market research revealed that consumers were much better acquainted with the ACC Cement brand.

Product Differentiation To better tackle the twin challenges of ever-growing brand awareness and prolific competition, some cement manufacturers have undertaken targeted branding initiatives for different categories of products, each of which is headed by different marketing teams, who are invested in addressing the distinct needs of individual market segments.

Focus on Sustainability Although the Indian cement industry is one of the most energy-efficient around the world, sustainability and environmental conservation are yet to find due recognition in the cement manufacturers’ branding initiatives. Some manufacturers are now coming forward to emphasize the importance of choosing the right cement in ensuring healthy living conditions. This, combined with green declarations and certifications, makes the brand more popular with health and environmentally-conscious consumers. Lafarge India is among the first cement manufacturers in India to tap into this space. The company’s tagline of ‘Building better cities’ reaffirms its position as an innovation and sustainability

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leader in the cement manufacturing space. Similarly, UltraTech Cement has been leveraging its use of blended cements—which have a lower carbon footprint—to appeal to eco-conscious consumers.

Conclusion Going forward, branding will play an increasingly important role in determining a company’s market share. With most consumers still relatively unaware about the technicalities involved in selecting a cement product, their decisions are largely guided by the trust they place in a particular brand. And with the consumer market for cement expanding in leaps and bounds, cement manufacturers must invest more heavily and intelligently in undertaking branding initiatives that appeal to the mindset and priorities of the target consumers, while continuing to enhance brand recall.

Further, to bridge the stark urban and rural divide in India, cement manufacturers’ branding initiatives must connect with their consumers’ emotional sensibilities, so as to ‘speak to’ larger sections of society. With industry experts foreseeing a spurt in construction activities in rural areas, strong branding will serve as a key differentiator for cement companies. These initiatives must be suitably reinforced with on-the-ground outreach initiatives that are, at once, both innovative and distinctive.

Anjani Portland Cement, for example, has developed the concept of Mobile Concrete Solutions, which combines the company’s products with complimentary facilities such as Vaastu suggestions, structural design and drawing services, and construction cost estimates and supervision. The company also offers customers access to trained structural engineers, who advise them about the best techniques and uses of cement products through various stages of construction.

A company’s branding strategy must be inspired by its organizational goals to prevent discord and dissonance among consumers. With the exception of certain brands like UltraTech Cement, pricing for the majority of cement products is nearly the same. This makes it ever more vital for manufacturers to focus on other aspects of their product to continue to attract customers and build a distinctive market presence. Branding for cement manufacturers must tie in with the company’s ethos, product specifications, and the demands and expectations of the target audience. This must also be represented by the company’s choice of logo, tagline and messaging. Going forward, branding initiatives will continue to account for a substantial portion of a company’s budget, as domestic players vie for market space with international competitors. Better branding, and higher product recall will invariably result in repeat buyers, which will have a significant impact on a company’s bottom line.

References 1. Business Strategies for the Indian Cement Industry (2010), International Conference on

Economics, Business and Management.

69A Comparative Study of Branding Strategies Harnessed by Indian Cement Manufacturers

2. Business Today (2014), Shree Cement.

3. Cipla (2012), Ambuja Cements Marketing Strategy, Harshad Lunavat.

4. Disha News Insight (2015), Jindal Panther Cement – ‘Lohe Se Bana, Loha Sa Bana’.

5. Indian Cement Review (2012), “How Good is the Strategy?”

6. Lafarge Signs M S Dhoni as its Brand Ambassador – Aggregate Research (2009).

7. Lafarge Signs MS Dhoni as its Brand Ambassador, Lafarge Press Release (2008).

8. Live Mint (2016), Emami Double Bull Brand.

9. Master Sun Consulting (2010), Understanding Brand Identity and Brand Positioning in Cement Industry – A Case Study.

10. Mridanish Jha (2014), “Effective Marketing Strategy for Branding a Commodity with Special Reference to Consumer Goods”, Cambridge Institute of Management, Ranchi.

Reference # 25J-2017-06-05-01

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