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Executive Summary

Primarily the study aims to give the reader an insight into the Indian Cement industry. The project aims to profile and understand the effectiveness of the World Cup campaign of Lafarge Concreto cement. The first phase will be to know the competitors of different brand of PSC cement in eastern India and analysis of their promotion by secondary research.

The second phase will be the analysis of the World Cup promotional activities of different brands with celebrities. And then the analysis of the World Cup campaign of Lafarge Concreto with Dhoni is to be done.

The third phase will be the comparison of the World Cup campaign of different brands/product with Lafarge Concreto's World Cup campaign that will lead to some new findings which will help to formulate new ideas.

The fourth phase is to know the effectiveness of the World Cup campaign of Lafarge with Dhoni with the help of a survey i.e. how customers are associating Dhoni as a brand ambassador of Lafarge Concreto, and their feedback about the product, the survey will include meeting dealers and the customers with questionnaire.

The final phase will be the analysis of the survey, based on the suggestions and feedback from the customers, ideas will be formulated to improve the promotion which will help to create a strategy that will stay for longer time in future.

A Stint at an Advertising Agency- Ogilvy

An advertisement agency is a service provider. It provides services to its clients. The primary service of an ad agency is to create a goal oriented and effective advertisement and promotional campaign which aim at putting across the message of the company positively in the eyes of its target audience. In the face of stiff competition every company wants to have an edge over its competitors. Advertising agencies therefore also do the work of research for their clients. This helps the company to take informed decisions and the advertising agencies to create advertisements which break through the clutter and are attention grabbing, persuasive and unique.

The main functions of an advertising agency are:

About Ogilvy

Ogilvy & Matheris an internationaladvertising,marketingandpublic relationsagency based inManhattanand owned by theWPP Group. The company operates 497 offices in 125 countries. It was founded in the year 1948 by David Ogilvy as “Hewitt, Ogilvy, Benson, & Mather" in Manhattan. Rochelle Lazarus is the chairman andMiles Young is the CEO. Ogilvy opened its first agency in India in the year 1928. It was the first advertising agency in India. Ogilvy has launched many advertisements which have been very successful in all these years. The company in India operates with offices located in all the major cities. Piyush Pandey is the Executive Chairman and the Creative Director at Ogilvy & Mather, South Asia.

OGILVY OFFICES IN INDIA

The focus areas include advertising, direct marketing, public relations and activation. Ogilvy Activation includes services in the non-traditional area of advertising - Ogilvy Landscapes, Ogilvy Outreach, Ogilvy Live and Ogilvy Signscapes which together with the focused services consolidate offerings to clients. O&M India is O&M International's fifth largest operation in terms of profits, with the US ranking first and European nations occupying the other three positions. It is ranked India's number one agency by Brand Equity survey on leadership, creative ability, investment in employees, client servicing, most influential people and great creative directors.

Awards & Recognitions

O&M has bagged several awards for print advertisements, TV ads and case study presentations. O&M was awarded the Grand Effie Gold and Gold for service on Hutch, a campaign that won awards at the Abbies too; Gold Effiefor corporate advertising for the Cadbury Crisis Management. O&M bagged three Bronze Lions at the Cannes Festival 2004 for two Public Health & Safety campaigns for Hutch and one for Concern India Foundation; a Gold & two Silvers at the Emvies, 1st Runner Up for Asia's ‘Office of the Year' 2004 by Media magazine, an award that spans 360 degree communication and HR. From Silver Pencil to Asian Brand Marketing Effectiveness awards for campaigns that include Advertising, PR, CSR, Interactive and Direct Marketing, O&M has received recognition for its stature as India's No. 1 communications agency. O&M Mumbai was ranked 8th hottest shop in Asia by Campaign Brief Asia in 2002. Every business unit in O&M has received recognition in the domestic and overseas markets. Ogilvy won three Gold, five Silver and five Bronze stacking up to 120 Points that won Ogilvy the title of EFFIE Agency of the Year 2009. Vodafone won EFFIE Client of the year in 2009.Ogilvy Kolkata won the Agency of the year in 2010 at Annual Calcutta Advertising Club awards for creative excellence. Ogilvy Kolkata won many award in ABBY awards in the year 2010. The categories in which O&M Kolkata won metals are 5 silvers for the Lafarge and Concreto campaigns (category: Home/ décor/ lifestyle), 4 silvers for the Kolkata TV print campaign (category: Media), 1 Gold for Children's Little Theatre radio spot (category Radio, services).

List of Clients

Organizatonal Structure of Ogilvy

Operational Flow at Ogilvy

At Ogilvy, the client servicing executives prepare and pitch a new product or service to a client. It is very important that the pitch is well structured, client centric and adds value to the company. Once the client appoints the advertising agency then the budgets are negotiated.

For every new campaign the client briefs the client servicing executives about their requirements. The client servicing executives studies the brief in details and figures out the core need behind the requirement. According to the requirement there is negotiation with the client about the estimated amount which the client will be billed for the campaign.

On the basis of the client's requirement and the detailed research by the executive, brief is given to the creative department about the campaign. After understanding the brief the creative department reverts back with the idea for the campaign. If the idea matches with the client's brief, the client servicing executive asks the creative department to proceed forward. The executives interact regularly with the client through emails and phone calls. After a lot of interaction with the client and the executives, the creative department prepares required creative as per the idea which was finalized. The client servicing executives gets an approval for the creative from the clients.

After the executive finalizes the requirement all the creative which are finalized for the campaign are given to the studio operators. The studio operators do the adaptation of the creative in terms of different size requirement, change in the copy etc. They also make sure that all the mandatory guidelines given by the brands are incorporated in the promotional material. The studio operators do a lot of adaptations according to the region in which the campaign is to be released. This may require using the copy of the advertisement in various languages this is done by the translators. The translator translates the copy according to the local language. The final layouts are shared with the client for their approval, in form of JPEGs. The client reverts back and changes if any are made by the studio operators. Then the final advertisement is released for printing.

Apart from the print ad client may require radio advertisements, television commercial, audio visual or any other innovative material for promotions. The client servicing interacts with the respective vendors and gets the work done.

Introduction

Indian Cement Industry

An Overview

  1. Indian cement industry dates back to 1914 - first unit was set-up at Porbandar, with a capacity of 1000 tones. [2]
  2. India manufactures 251.2 Million Tones of cement per year.
  3. India's per capita cement consumption is only 156 kilograms against China's 600 kilograms. [4]
  4. Cement sales primarily through a distribution channel.
  5. Ready mix concrete a relatively nascent market in India.

Installed Capacity

Indian Cement industry is comprised of 148 large cement plants with around 46 member companies. The installed capacity of these large cement plants is estimated to be 219.17 million tones during 2009-10 (as on March 2009).There are 95 large cement plants with capacity of million tones and above and around 1, 40,000 manpower is employed under these plants (one MnT cement generates downstream employment to 50,000 persons). Also, there are 365 mini and white cement plants with an installed capacity of 11.10 million tones (P). [3]

Statistics

Cement Production & Despatches (P)

Description

Jan-11

Dec-10

Jan-10

2010-11

2009-10

(Apr-Jan)

Cement Production

14.52

13.59

14.65

136.51

130.85

Cement Despatches

14.47

13.60

14.59

135.56

130.09

Source: Cement Manufacturers' Association

Cement production during April to January 2010-11 was 136.51 million tones as compared to 130.85 million tones during the same period for the year 2009-10. Despatches were estimated at 135.56 million tones during April to January 2010-11 whereas during the same period for the year 2009-10, it stood at 130.09 million tones. [3]

Cement sector is characterized by the following

  1. Units concentrated near raw material sources or markets
  2. Power intensive
  3. High freight costs
  4. Small value chain
  5. Regional variation and volatility in prices and margins
  6. High debt levels
  7. Regional distribution of demand
  8. Seasonality of demand and cyclicality of the industry
  9. High entry barriers

Consumer Demographics & Buying Patterns of Indian Consumers

The per capita consumption of cement in India is very low, as compared with the developed economies and the overall world average per capita cement consumption. The per capita consumption of cement in India is even less than that in Africa, a relatively underdeveloped continent. Over the past decade, the per capita cement consumption of cement has increased in most states, except Chandigarh, where it has declined by 7 %.

Mechanics of Distribution Channels of Sector

Companies invariably hire carrying & forwarding agents or transport cements to own or government warehouses either via roadway or railways. Incase of exports, cement reaches the nearest port via roadways or railways and is then transferred to the importing country.

Domestically, from warehouses the cement is transported to the dealers/distributors and in turn to sub dealers who finally sell it to the end users. There may or may not be physical ownership of goods.

In the second case, dealers and sub dealers take order from buyers and place it to the companies, co ordinate and monitor the timely dispatch of said orders, transportation of goods and final delivery.

Distributor network in cement industry is highly dominating and companies are compelled to hire as they do not really have that rapport and touch with the end consumer of their product. Apart, from this, the distributors have storage facilities as well which help control well in the entire supply chain as they are the ones who bring orders and therefore are directly responsible for the business that a manufacturer would do.

Demand drivers

Infrastructure & construction sector the major demand drivers. Some demand determinants

Factors and causes behind the successful flourishing of the cement industries in India

  1. Technological change: The government and the industries are upgrading the quality and the technology that are used in the process of production.
  2. New investment are in process that are sure to make a change in whole processing and the output of cement
  3. There are host of companies are merging together to make their capacity and the produce big and this would lead to a greater development in the cement production.
  4. The real estate market is much optimistic and hence this helps in the growth and the enhancement in the field of cement production and investments.
  5. Companies and the investors are spending more on the infrastructure of this sector.
  6. Various national programs are taken in like National Rural Employment Guarantee, Urban Renewal Mission (JNNURM) and Indira Aawas Yojana.

Different Types of Cement

There are different varieties of cement based on different compositions according to specific end uses, namely Ordinary Portland Cement, Portland Pozolona Cement, Portland Blast Furnace Slag Cement, White Cement and Specialized Cement. The basic difference lies in the percentage of clinker used. [5]

1. Ordinary Portland cement (OPC):

OPC, popularly known as grey cement

Clinker - 95%

Gypsum - 5%

Other materials

White cement is a variation of OPC and is used for decorative purposes like rendering of walls, flooring etc.

It contains a very low proportion of iron oxide. The applications are cover dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.

2. Portland Pozolona Cement (PPC):

Portland pozzolana cement is Ordinary Portland Cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or Siliceous earths), either together or separately. Portland clinker is ground with Gypsum and Pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete.

Clinker - 80%

Pozzolana - 15%

Gypsum - 5%

It is cheaply manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient.

It has a lower heat of hydration, which helps in preventing cracks.

3. Portland Blast Furnace Slag Cement (PBFSC):

Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated blast-furnace slag, a nonmetallic product consisting essentially of Silicates and Aluminum-silicates of Calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter color, better concrete workability, easier finish ability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.

It has a heat of hydration even lower than PPC and is generally used in construction of dams and similar massive constructions.

Clinker - 45%

Blast furnace slag - 50%

Gypsum - 5%

4. White Cement:

White Portland cement has essentially the same properties as gray cement, except for color, which is a very important quality control issue in the industry. It is manufactured using fuel oil (instead of coal) and with iron oxide content below 0.4% to ensure whiteness. Special cooling technique is used. It is used to enhance aesthetic value, in tiles and for flooring. White cement is much more expensive than grey cement.

5. Specialized Cement:

Oil Well Cement: is made from clinker with special additives to prevent any porosity.
Rapid Hardening Portland cement: It is similar to OPC, except that it is ground much finer, so that on casting, the compressible strength increases rapidly.

5 Source. www.acclimited.com

Major players in cement industry

1) Associated Cement Companies Ltd (ACC)

ACC Limited is India's foremost cement manufacturer with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology.[5]

ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement and Ready Mix Concrete.

Ordinary Portland Cements: 43 Grade Cement (OPC 43 Grade), 53 Grade Cement

Blended Cements: Fly-ash based Portland Pozzolana Cement, Portland Slag Cement

Cement plant

State

Capacity (MTPA)

Bargarh Cement Works

Orissa

1.20

Chaibasa Cement Works

Jharkhand

0.87

Chanda Cement Works

Maharashtra

1.00

Damodar Cement Works

West Bengal

0.53

Gagal Cement Works

Himachal Pradesh

4.40

Jamul Cement Works

Chhattisgarh

1.58

Kymore Cement Works

Madhya Pradesh

2.20

Kudithini Cement Works

Karnataka

1.10

Lakheri Cement Works

Rajasthan

1.50

Madukkarai Cement Works

Tamil Nadu

1.18

Sindri Cement Works

Jharkhand

0.91

Wadi Cement Works

Karnataka

2.59

Tikaria Cement Grinding and Packing Plant

Uttar Pradesh

2.31

Table No.1- ACC plants

2) Birla Corp

The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) - Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) - Birla Cement Works & Chanderia Cement Works, Durgapur (W.B.) - Durgapur Cement Works & Durga Hitech Cement - and one at Raebareli (U.P.)-Raebareli Cement Works. They manufacture varieties of cement:

Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC), Fly Ash - based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement. [8]

Cement Plants

State

Capacity (Mills.Ts)

Satna Cement Works / Birla Vikas Cement

Madhya Pradesh

1.73

Birla Cement Works / Chanderia Cement Works

Rajasthan

2.50

Durgapur Cement Works / Durga Hitech Cement

West Bengal

1.60

Raebareli Cement Works

Uttar Pradesh

0.63

Table No.2- Birla cement plants

3) UltraTech

UltraTech Cement Limited has an annual capacity of 52 million tones. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC). The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units - 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals — four in India and one in Sri Lanka.

UltraTech Cement is the country's largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East.

UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East Investments Limited. [11]

Cement Plants

State

Awarpur Cement Works

Maharashtra

Hirmi Cement Works

Chhatisgarh

Gujarat Cement Works

Gujarat

A.P.Cement Works

Andhra Pradesh

Jafrabad Works (NCCL)

Gujarat

West Bengal Cement Works

West Bengal

Magdalla Works (NCCL)

Gujarat

Ratnagiri Works (NCCL)

Maharashtra

Arakkonam Cement Works

Tamil Nadu

Jharsuguda Cement Works

Orissa

Table No.3- Ultratech cement plants

The company has an annual capacity of 48.8 million tonnes, and manufactures and markets ordinary portland cement, portland blast furnace slag cement and portland pozzalana cement.

4) Ambuja Cements Ltd

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat Ambuja Cements Ltd., was founded in 1983. The Company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements Ltd. ACL has grown dynamically over the past decade. Its current cement capacity is about 25 million tones.

The Company has five integrated cement manufacturing plants and eight cement grinding units across the country. ACL enjoys a reputation of being one of the most efficient cement manufacturers in the world. Its environment protection measures are on par with the finest in the country. It is one of the most profitable and innovative cement companies in India. [9]

Cement Plants

State

Bhatinda

Punjab

Ambuja Cement (Junagadh)

Gujarat

Bhatapara

Chhatisgarh

Farakka

West Bengal

Table No.4- Ambuja cement plants

5) Jaiprakash Associates Limited

Jaypee group is the 3rd largest cement producer in the country. The groups cement facilities are located in the Satna Cluster (U.P), which has one of the highest cement production growth rates in India.

The group produces special blend of Portland Pozzolana Cement under the brand name ‘Jaypee Cement' (PPC). Its Cement Division currently operates modern, computerized process control cement plants with an aggregate capacity of 21.30 MnTPA. The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be 37.55 MnTPA by FY12 (expected) with Captive Thermal Power Plants totaling 702MW.[7]

Cement Plants

State

Rewa Plant and Bela Plant

Madhya Pradesh

Ayodhya Grinding Operational unit and Cement Blending unit

Uttar Pradesh

Cement Grinding Unit

Haryana

Dalla cement factory and Chunar cement factory

Uttar Pradesh

Gujarat Cement Plant

Gujarat

Table No.5- Jaypee cement plants

6) Binani Cement

Binani Cement Limited is the flagship subsidiary of Binani Industries Limited (BIL), representing the Braj Binani Group. The cement business started operations in 1997, in Sirohi District, Rajasthan.

The Company's product portfolio includes Ordinary Portland Cement, Pozzolona Portland Cement and Ground Granulated Blast furnace Slag (GGBFS). [10]

Binani Cement Ltd. produces cement of two grades:

The Binani Cement Plant is in Pindwara, District - Sirohi, Rajasthan

2Source. http://www.ibef.org/industry/cement.aspx

3Source.http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/Cement.htm

4Source. http://www.reportlinker.com/p0243979/Industry-Analysis-Cement.html

About Lafarge Cement

Lafarge is the leader in building materials; with a turnover of $15.88 billion in 2009. It has been in operation since way back in history in 1833; when it started as a limestone mining company. But as far as the Indian market goes, Lafarge actually began operations in 1999. And then began a slew of expansion plans in the Indian market; combined with a number of insightful, and at times, path breaking marketing initiatives.
Lafarge currently has three cement plants in India: two integrated plants in the state of Chhattisgarh and a grinding station in Jharkhand. Total cement production capacity of Lafarge in the Indian market currently stands at around 5.5 million tons. Lafarge India produces different types of cements like Portland Slag Cement, Portland Pozzolana Cement. The company is a leading cement player in Eastern India. Its brands Lafarge Cement and Lafarge Concreto Cement enjoy high brand equity here and are amongst the highest priced brands. Lafarge is committed to the Indian market and has firm plans to expand its capacity in India.

Lafarge enjoys high brand equity through its different brands; Lafarge Concreto, Lafarge Duragard and Lafarge Cement

Lafarge Concreto

Lafarge Concreto has been launched by Lafarge to meet the need of homebuilders in India for truly premium all-purpose cement. Concreto was developed in Lafarge's state-of-the art laboratories, which are extensively networked with its Central Research Institute in France. The company has leveraged its combined know-how of more than 170 years and its experience across 75 countries to develop this unique product. Concreto is a specially engineered, premium quality ‘all purpose cement'. It can be used for varied applications like roofing, foundations, beams, columns, plastering and brickwork. It is specially formulated to provide a denser concrete mix than normal cements.

Concreto is characterized by:

Cement Plants

Lafarge currently hasfour cement plants in India: two integrated plants in the state of Chhattisgarh,onegrinding station each in Jharkhand & West Bengal. Total cement production capacity of Lafarge in the Indian market currently stands at around 6.5 million tons.

Cement Plants

State

Sonadih

Chhattisgarh

Jojobera

Jharkhand

Arasmeta

Chhattisgarh

Mejia

West Bengal

Table No.6- Lafarge cement plants

Segmentation

Cement is a bulk commodity so the industry is mainly product based. Segmentation is based on its various products i.e. Portland pozzolona cement, quick hardening cement and ready mix cement.

Business to business (B2B)

Cement industry deals with real estate, construction companies and other institution.

For example - Real estate sector

Business to consumer (B2C)

Cement industry deals with individual customers.

For example - Individual home builders

Industry 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.

Marketing Mix

The 4 P's of marketing mix comprises of:

  1. Product
  2. Place
  3. Price
  4. Promotion

Figure No.2 Marketing Mix

1) Product

Cement industry has various ranges of products.

For example:

2) Price

Figure No.3 Product Mix

2) Place

Distribution has three stages:

Figure No.4 Distribution Channel

3) Price

The price of cement totally depends on its demand and supply. Where consistent demand for cement persists, the prices are high. The rates gradually increase in that particular region where infrastructure development is taking place. The total demand for cement rises by 8 per cent/annum.[12]

Every year price realisations of cement, from October to May, are at higher side and during the monsoon season, from June to September, they are low. This is a seasonal phenomenon of demand and supply, and it differs from region to region. There are also regional variations in cement prices.

4) Promotion

Indian cement market is different from the rest of the world because the largest segment of buyers of cement in India is the individual home owners rather than the institutions. Although this scenario is witnessing a change due to the boom in the organized realty sector, individual home owners form a significant segment that no cement marketers can ignore.
Although these individuals shell out the money to purchase cement, they are not the decision makers in the buying process.

The intermediaries like the contractors; masons etc take up the role of the influencer/decision makers in the purchase of this product. Since the consumers view this product as a commodity, the involvement of ordinary home owners in the purchase. Indian cement marketers have long been trying to brand this commodity. Due to rising competition, many companies are also looking for a unique product positioning through strong brands and are creating separate marketing teams for their different categories of products.

Promotion a key element ingredient in marketing campaigns consists of diverse collection of intensive tools. Sales promotion and incentive schemes are mostly short term and designed to stimulate quicker or greater purchase of particular product or services by consumer on the trade.

The various sales promotion methods adopted by the company are:-

  1. Advertisement through television, newspaper, hording, wall painting, calendar etc
  2. Dealers and retailers meet and training program.
  3. Architect and engineer meet.
  4. Incentives schemes to dealers like cash discount, quantity discount, annual discount, target setting, loyalty discount, annual visits to tourist places, annual gifts.
  5. Dealer's relationship program like best seller award and other award programs.
  6. Company visits to dealer's shop.

Many cement companies have developed their own unique communication tools like logos, taglines, propositions and brand ambassadors. Some of them are as here under:

Cement Brand

Brand ambassador

Baseline/Slogan

Proposition

ACC cement

No

“Build with Confidence”

ACC cement builds with care and responsibility.

Ultratech cement

No

“The Engineer's choice”

The cement is the expert's choice. Thus certifying its credibility.

Jaypee cement

Sachin Tendulkar

“Andar Se Solid”

The cement has superior strength, protection and can withstand the test of time like its brand ambassador.

Ambuja Cement

Boman Irani

“Giant Compessive Strength”/ “Ye Deewar Nahi totegi”

Thoughts can change, people can change but the strength of the cement will remain for life time.

Binani Cement

Amitabh Bachchan

“Sadiyon ke liye”

The tagline stresses on durability as does the image of its brand ambassador.

Lafarege Concreto cement

M.S.Dhoni

“Because homes are not built everyday”

The cement is about strength, versatility as its brand ambassador and building “Dream home”

Birla cement

No

“Mazboot har Pal”

The cement has strength and durability

Table No.7 - Promotion of various cement brands

World Cup campaign of Lafarge

Lafarge India, the Indian subsidiary of the French building materials major, have recently launched its new advertising campaign for the ICC World Cup. The company has roped in one of India's most popular cricketers and the captain of the Indian cricket team, Mahender Singh Dhoni as its brand ambassador. The ad campaign, for which Lafarge has commissioned Ogilvy & Mather, has been allocated a budget of INR 5 crore by the company.

With this campaign Lafarge brand is banking on the mass popularity of cricketers in India to help establish its brand image.

The campaign had been launched in states like West Bengal, Bihar, Jharkhand and Orissa. The campaign has adopted a 360-degree marketing approach around it,

The theme of the campaign is that as a captain leads a team of experts on the field to victory, so does a builder lead a team of experts (architects, planners, masons, painters) for the completion of a dream home.

Quite like a team and its captain, a homebuilder also needs to have a clear strategy or plan in mind while building his home. Like a team has to have the right mix of batting, bowling and fielding talents, a homebuilder needs to make the right choice of materials for finish and durability.

Press ads

The strategy for the press ads is that before every Indian Match during the world cup there was strip ads in various newspaper in West Bengal, Jharkhand, Bihar and Orissa in four languages i.e. English, Hindi, Bengali and Orria

Launch ad

During the match

On loosing day After winning the World Cup

Hoardings

The hoardings have been put up at various important juncture in West Bengal, Jharkhand, Bihar and Orissa.

Other brands/products have also launched their campaigns with celebrities for the World Cup. We will now go through their promotional strategies, to have a look at their of Lafarge cement.

Overview of promotion for ICC World Cup

India has always been an enormous market for consumer products and considering its huge population size, it's not an easy task to reach out to the targeted audience. However with an event like the World Cup, which brings cricket fans together, it becomes an easier and a bigger platform for marketers to communicate with their consumers. Cricket in India is known as another religion all together. And players like Sachin, Dhoni and Sehwag are worshiped as no small deities. The brands endorse them with their products and the reach they obtain is wider than anyone's expectation because the common man connects and admires these players. Today with abut seventy - five percent of India's population still living in the rural areas, an event like the World Cup in a country like India is a massive vehicle to reach the masses. Also due to higher media consumption from all sectors, the reach will be phenomenal.

Sponsors of ICC world cup

In terms of sponsorships, eight brands have come on board as partnering or associate sponsors with brands such as Castrol spending up to 30 per cent of their annual marketing budgets reserved for the cricket season, as per media reports. List of sponsors that have come on board include:

  1. LG
  2. Hero Honda
  3. Moneygram international
  4. Hyundai
  5. Reliance Communication
  6. Yahoo
  7. Fly Emirates
  8. ESPN STAR SPORTS
  9. Pepsi
  10. Castrol
  11. LAYS
  12. Sony Bravia
  13. Reebok
  14. AIRTEL DIGITAL TV

Promotion of brands in World Cup season with celebrity:

Brands/Products

Brand Ambassador

Baseline/ Slogan

Proposition

Pepsi

MS Dhoni, Harbhajan Singh, Sehwag, Suresh Raina and Kevin Peitersen

“Change the game”

Pepsi has always been brand that embodies the most prevalent youth sentiment.

Castrol

Sachin Tendulkar

“Castrol World Cup ka Hero”

Castrol as the champion of lubricants suggested by Sachin who is the champion in cricket.

Lays

Saif Ali Khan and M.S Dhoni

“Be a little Dillogical”

The brand make a strong connect with the youth - talking about what one wishes to do versus what one has to do.

Sony Bravia

M.S Dhoni

“Colour like no other”

Watching cricket in high definition TV with crystal clear picture and colour.

Adidas

Sachin tendulkar, Virender Sehwag, Kieron Pollard, Lasith Mallinga, and Dwayne Bravo.

“Bring it on”

The tagline reflects the adaptability and toughness which is brought up by Adidas.

Reebok

M.S Dhoni and Yuvraj

“I am what I am”

It is for today's youth who are proud to be unique

Airtel digital TV

Kareena kapoor and Saif Ali Khan

“Come home to the stars”

Watching the nation's favourite sport in high definition as watched by stars.

Nike

Sachin Tendulkar, MS Dhoni, Yuvraj Singh, Zaheer Khan, Harbhajan Singh, Gautam Gambhir and Virat Kohli.

“Bleed Blue”

Very strong empathy towards cricket in India

Idea

Kapil Dev,Arjuna Ranatunga, Irfan Khan, Clive Lloyd, Allan Border, Steve Waugh

“Let's Keep Cricket Clean”

While espousing clean cricket, the legends also urged to change to Idea, which delivers better mobile signals in the toughest of locations.

Big Bazaar

M.S Dhoni and Asin

“Isse sasta aur acha kuch nahi”

Fuelling the passion in their fans through exclusive merchandize as recommended by the brand ambassadors.

Table No. - 8 Promotion of different Brands and Product

11Source:www.ultratechcement.com

6Source: www.lafarge-india.com

7Source: www.jalindia.com

8Source: www.birlacorporation.com

9Source:www.ambujacement.com

10Source:www.binaniindustries.com/group.../binani-cement/cement-landing.asp

12 Source: http://www.projectsmonitor.com/detailnews.asp?newsid=9693

Introduction to Research

Statement of the Problem

“How effective is the World Cup campaign of Lafarge cement with Dhoni”

Data Collection

The descriptive nature of research necessitates collection of primary data from dealers, individual home builders and promoters through market survey, personal interview technique was used and interview was conducted through structured questionnaire the questions were asked in prearranged manner.

Research Instruments

The research instrument chosen for conducting the survey was structured questionnaire was prepared as show as in the annexure. The questionnaire includes open ended as well as close ended question, few open ended question were included to obtain the perception of the dealers.

Sample Plan

A sampling technique was chosen for the study was Random Sampling Technique. This is the most common method of selecting the sample. This is because the dealers, home builders and promoters are localized in different parts. It gives all dealers and home builders in a group and equal chance of being selected for the purpose of the survey.

Sample Size

Sampling Design

Contact Method

Personal interview were used for conducting the market survey. Personal interview had the benefit one to one communication between the researcher and the respondent. If the respondent is having any doubt or queries in their mind, they can get heir doubts clarified from the researcher on the spot and so superior of data was collected from the survey was collected from the survey.

From my survey I have found that the market for cement industry is not uniform, the market share of cement are different in different market.

Statistical Analysis

1. How many brand they keep in store.

Cement brands

Number of Dealers

Multi - brand

12

Single brand

8

Dealers store about 1 to 3 brands and sub dealers store 3 to 4 brands. They generally do not push any brand but if the customer does not have any brand preference the dealers suggest the brand for which they have dealership.

2. Do your customers have any brand preferences? (As per dealers)

Response

No. of Dealers

Yes

12

No

8

3. Brand preference

Brand

Percentage of preference

Promoters

IHB's

ACC

15%

5%

Jaypee

3%

2%

Lafarge Duraguard and Concreto

8%

6%

Birla

4%

4%

Ambuja

14%

4%

Ultratech

20%

5%

Binani

2%

0%

The preference of customer also depends on the availability, price and quality as stated by the customer it also depends on the word of mouth.

Ultratech cement have10 cement plants in India so it is easily available and Binani cement has low preference as the plants are located in Rajasthan so it is not easily available in West Bengal.

The preference of the brands depends upon the following factors:

  1. Price
  2. Quality
  3. Availability

The promoter's preference generally depends upon the price and availability. And the individual home builder's preference depends on quality and price.

When there is no preference then the dealers suggest the customer about the cement brand.

4. When customer does not have any brand preference:

Brand

Dealers preference

ACC

22%

Jaypee

3%

Lafarge Duraguard

10%

Lafarge Concreto

7%

Birla

8%

Ambuja

18%

Ultratech

30%

Binani

2%

Ultratech is the most preferred brand among the dealers because the company is more dealer friendly and provides more incentives. As stated by the dealers the company provides these following facilities which depend upon their performance:

  1. Mediclaim policy
  2. Complementary tour packages
  3. Gold coins
  4. Discounts
  5. T shirts
  6. Calendars, Notepads, Diary.
  7. Small gifts
  8. Most preferred promotional activities of cement brands

Activities

No. of home builders

Promoters

Individual home builders

TV commercial

10

15

Hoardings

10

12

Others (Wall paintings etc)

3

0

6. Rank sales promotion activities according to their effectiveness (as per dealers)

Activities

Preference

Dealer meet

70%

Gifts

5%

Hoardings

10%

Incentives

5%

Others

10%

Dealer meet is preferred because it helps to gain knowledge about the company and also about its schemes.

7. The preference of brand ambassador for cement

Response

No of Dealers

No. of home builders

Promoters

IHB's

Yes

6

3

12

No

8

5

6

Does not matter

6

2

2

No (as per the dealers) - They think that brand ambassador does not add any value to the brand. Cement is more about common man building his home; brand ambassador does not have any knowledge about the brand which they are promoting.

Yes (as per the dealers) - Brand ambassadors help in better product awareness.

No (as per the home builders) - Brand ambassadors know as much about cement as does the consumer. Therefore their endorsement does not change any perception of the brand

Yes (as per the home builders) - Brand ambassadors help to connect with the consumer and make them believe in it.

8. Please rate the following celebrity (as per the individual home builders)

Celebrity

Rank

Percentage of Dealers

Percentage of home builders

Promoters

IHB's

Sachin Tendulkar

3

10%

12%

15%

Amitabh Bachchan

2

35%

30%

37%

M.S.Dhoni

1

48%

50%

38%

Sourav Ganguly

4

7%

8%

10%

The most preferred brand ambassador is M.S. Dhoni followed by Amitabh Bachchan, Sachin tendulkar and Sourav Ganguly. As stated by the dealers, promoters and Individual home builders, Dhoni is known for his leadership skills and excellence. Amitabh Bachchan has the image of durability.

9. Does promotion help in better product awareness?

Response

No of Dealers

No. of Home Builders

Promoters

IHB's

Very much

0

1

3

Somewhat

0

3

10

Little

7

0

0

No

13

10

3

For the dealers and promoters promotion does not play much important role in product awareness but for individual home builders promotion helps in better product awareness.

10. Type of promotional activity attracts you more

Promotional activity

No of dealers

No. of home builders

Promoters

IHB's

Advertisement(paper, TV)

2

2

3

Gifts/lucky draws

3

5

10

Information leaflet

15

8

2

Most preferred promotional activities for dealers and promoters are informational leaflet followed by advertisement (paper and TV). And for Individual home builders are Gifts/lucky draw followed by advertisement (paper and TV).

11. Ranking of the TVC of different cement brands

Name of cement

Rank

Percentage of dealers and home builders

1. ACC

2

18%

2. Jaypee cement

6

8%

3. Lafarge Concreto cement

4

14%

4. Birla cement

7

5%

5. Ambuja cement

1

30%

6. Ultratech cement

3

15%

7. Binnani Cement

5

10%

The most preferred TV advertisement is of Ambuja cement followed by ACC and Ultratech.

12. Have you seen the advertisement of Lafarge cement with Dhoni?

Response

No of dealers

No. of Home Builders

Promoters

IHB's

Yes

18

10

10

No

2

5

5

13. Where?

Source

No. of dealers

No. of Home Builders

Promoters

IHB's

TV

0

0

2

Newspaper

10

7

8

Hoardings

18

2

1

From the above graph and data in point number 12 and 13 it is observed that the advertisement of Lafarge Concreto with Dhoni is media effective as almost all of the dealers and home builders have seen the advertisement.

14. Message from the advertisement of Lafarge Concreto with Dhoni.

Dealers

  1. The message is for the home builders from the captain that “before building a house you must plan and move ahead”
  2. The captain is giving his assurance for Lafarge cement for building your dream house

Home builders

  1. Lafarge is getting serious about the campaign
  2. The right cement is an important part in house building

Some of the dealers and home builders just stated that it's a good advertisement and the Dhoni's message is appealing.

Analysis of the survey

The analysis is done in SPSS I have taken few variables to analyze that how the preference of brands depends on the promotional activities and also on the brand ambassadors of the cement industries.

1. Dealers

Correlation is to designate a simple correlation between two variables.

a) The correlation is between the preferences of cement brands by the dealers and the effective sales promotion activities of the cement companies

Correlations

Brand preference

Effective sales promotional activity

Brand preference

Pearson Correlation

1

.087

Sig. (2-tailed)

.716

N

20

20

Effective sales promotional activity

Pearson Correlation

.087

1

Sig. (2-tailed)

.716

N

20

20

Form the above result it is observed that the preference of cement brands has a positive correlation with the effective sales promotional activity. So the cement industries should do effective sales promotional activities to improve their sales. The significance level is .716 which is more than .05 so there is more than 5% chance that this relationship occurred.

b) The two variables are the most preferred TV advertisement of the cement brands and the preference of the cement brands by the dealers

Correlations

Most Preferred TV commercial of cement brands

Brand preference

Most Preferred TV commercial of cement brands

Pearson Correlation

1

-.260

Sig. (2-tailed)

.269

N

20

20

Brand preference

Pearson Correlation

-.260

1

Sig. (2-tailed)

.269

N

20

20

The correlation between the most preferred TV advertisement and the preference of cement brands for dealers is negative. So it can be concluded that the preference of cement brands does not depend on the TV advertisement. The significance level is .269 which is less than .05 so there is less than 5% chance that this relationship occurred

c) The two variables are preference of cement brands and the preference of brand ambassadors.

Correlations

Brand preference

Brand Ambassador

preference

Brand preference

Pearson Correlation

1

.017

Sig. (2-tailed)

.944

N

20

20

Brand Ambassador preference

Pearson Correlation

.017

1

Sig. (2-tailed)

.944

N

20

20

From the above table it is observed that the preference of cement brands have a positive correlation but the value is very low which is .017 which means the brand preference for dealers is not very much dependent on the brand ambassador of the cement brands. The significance level is .944 which is more than .05 so there is more than 5% chance that this relationship occurred.

Individual home builders

a) The correlation between the brand preference of IHB's and the most preferred TV advertisement of the cement brands.

Correlations

Brand Preference

Most preferred TVC of cement brands

Brand Preference

Pearson Correlation

1

.089

Sig. (2-tailed)

.710

N

20

20

Most preferred TVC of cement brands

Pearson Correlation

.089

1

Sig. (2-tailed)

.710

N

20

20

The above table shows positive correlation between the most preferred TV advertisement and the brand preference. It can be concluded that the individual home builders get somewhat influenced by the TV advertisement in case of preference of cement brands.

b) The correlation is between the brand preference of IHB's and the brand ambassador for cement industries.

Correlations

Brand Preference

Brand Ambassador

Brand Preference

Pearson Correlation

1

.585**

Sig. (2-tailed)

.007

N

20

20

Brand Ambassador

Pearson Correlation

.585**

1

Sig. (2-tailed)

.007

N

20

20

*. Correlation is significant at the 0.01 level (2-tailed).

The result shows that there is a positive correlation which is 0.585 between the two variables, which means the IHB's prefer brand ambassadors for cement. If the cement companies use brand ambassadors for their promotion it will help to increase the brand preference for the IHB's. The significance level is .007 which is less than .05 so there is less than 5% chance that this relationship occurred.

Promoters

a) The correlation between the brand preference of promoters and the brand ambassador for cement industries

Correlations

Brand preference

Preference for brand ambassador

Brand preference

Pearson Correlation

1

.571

Sig. (2-tailed)

.084

N

10

10

Preference for brand ambassador

Pearson Correlation

.571

1

Sig. (2-tailed)

.084

N

10

10

The table shows that there is a positive correlation i.e. 0.571 between the two variables, so the brand preference is dependent on the preference of brand ambassador for the cement brands.

b) The correlation between the brand preference and the most preferred TVC of the cement brands.

Correlations

Brand preference

Most preferred TVC of cement brands

Brand preference

Pearson Correlation

1

.260

Sig. (2-tailed)

.468

N

10

10

Most preferred TVC of cement brands

Pearson Correlation

.260

1

Sig. (2-tailed)

.468

N

10

10

The above table shows that the correlation between the two variables is 0.260 which is not very high, but the preference for brand ambassador has some effect on the brand preference for cement.

c) The correlation between the brand preference and the most preferred promotional activity by the cement industry

Correlations

Brand preference

Promotional activity which is more attractive

Brand preference

Pearson Correlation

1

.671*

Sig. (2-tailed)

.034

N

10

10

Promotional activity which is more attractive

Pearson Correlation

.671*

1

Sig. (2-tailed)

.034

N

10

10

Correlation is significant at the 0.05 level (2-tailed).

The brand preference is strongly correlated to the brand preference by the promoters. So the cement companies should do effective promotional activity to increase their preference. The significance level is .034 which is less than .05 so there is less than 5% chance that this relationship occurred.

Conclusion

From the above analysis it has been found that for dealers the brand preference is somewhat depends on the sales promotional activities like dealer meet, they does not prefer any brand just because of advertisement, it all depend on the company and the relationship between the dealer and the company.

For the promoters the promotion plays an important role as from the analysis it is observed that they also prefer brand ambassadors. As stated by the promoters the price and availability is also important.

The Individual home builders' gives lots of importance to the promotions, because the promotion help in better product awareness, but other factors which are important are price, quality and word of mouth.

The findings and the data states that for cement industry the role of brand ambassadors is becoming vital day by day for the customers as it help them to recall the brand name of the cement. The World Cup promotion of Lafarge Concreto with Dhoni is media effective and the customer received the desired message from the advertisement.

Recommendations

The effectiveness of an advertisement may be gauged by the life it enjoys in the memory of the prospective customer, which is proven when people recall a particular advertisement instantaneously. The World Cup campaign of Lafarge Cement with Dhoni is effective as proved by the data and findings from the survey.

Based upon the time spent in the market, useful suggestions of the dealers & customers and the findings from the survey, following recommendations can be suggested for increasing the effectiveness of Lafarge cement.

Limitations

  1. The World Cup campaign of Lafarge Concreto was launched in West Bengal, Jharkhand, Bihar and Orissa. Due to location constraints I have only surveyed West Bengal.
  2. The major problem of the survey was that most of the respondents being very loyal to their brands didn't give exact answers. Like they didn't talk much about what problems they are facing, what are the different marketing schemes of the brand in which they deal etc?
  3. Many of the dealers/customers refused to answer any question at all. So the actual figures can be somewhat different from the one that I have found out.
  4. Being a very big region, it is quite possible that I was unable to explore some of the dealers/customers.

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