The Marketing mix of UltraTech Cement analyses the 4Ps of UltraTech Cement, including the Product, Price, Place, and Promotions. UltraTech Cement was started in 1983 and has been able to wade through the stormy waters to emerge as India’s biggest cement manufacturing company. The leading cement producers industry is part of the Aditya Birla Group. It has an annual production capacity of 64 million tonnes, thus making it not only the most significant cement industry in India and a leading cement producer globally.
The company’s dominance and presence are evident in its subsidiaries at 12 composite plants the company is running. These include two plants for wall care putty, white cement, and clinkerization in the United Arab Emirates.
It has 16 grinding units: 12 in India, 1 in Bangladesh & Bahrain, and 2 in UAE. It also has six bulk terminals, 1 in Sri Lanka and 5 in India. The company also brags of at least 101 concrete plants spread throughout several countries.
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About UltraTech Cement
- Type: Public limited company
- Industry: Cement manufacturing
- Founded: 1983
- Founders: Kumar Mangalam Birla
- Headquarters: Mumbai, India
- Area served: India, UAE, Bahrain, Sri Lanka
- Current CEO: Amitabh Chaturvedi
- Number of employees: 23,000
- Major products: Grey cement, ready-mix concrete, white cement
Table of Contents
UltraTech Cement Product Strategy
The UltraTech products are characterized by reliability, strength, and innovation. With a focus on research, technology, and technical innovations, the company has been able to move with time, manufacturing only very competent concrete products in building and construction. UltraTech boasts a comprehensive product portfolio encompassing ordinary Portland cement, ready mix concrete, white cement plant, and specialty concretes catering to diverse construction needs.
- Grey Cement: UltraTech is known for its high-quality grey cement used in general construction. They offer various grades like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Portland Blast Furnace Slag Cement (PBFSC).
- Ready Mix Concrete (RMC): The company provides custom concrete mixtures under its RMC segment. These are premixed in their plants and delivered to construction sites, ensuring consistency and quality.
- White Cement: Under the brand name Birla White, UltraTech manufactures white cement used for aesthetic and decorative purposes in construction. It’s also used to make wall putty.
- Building Products: This includes a range of products like wall care putty, waterproofing solutions, seal and dry products, and others that are used for finishing in construction.
- Specialty Products: UltraTech also offers specialty products like UltraTech XTRALITE (a lightweight autoclaved aerated concrete block) and UltraTech FIXOBLOCK (a mortar for joining AAC blocks, concrete blocks, etc.).
- Other Products: The company continually innovates and has introduced various sustainable and advanced construction materials and solutions.
UltraTech Cement Place Strategy
The company boasts of a very vast and excellent geographical reach. The company doesn’t just target India; it has conquered and crossed borders, establishing a solid presence among leading cement producers globally. It has been able to get to countries such as UAE, Bangladesh, Bahrain, and Sri Lanka.
UltraTech Cement uses the three-level distribution channel that involves manufacturing –distribution-retailer, and ultimately, the end user. Domestically, the cement is transported to the distributors/dealers from the manufacturing unit, where sub-dealers collect the cement. Internationally, roads and railways transport the cement to the nearest port of the importing country.
UltraTech Cement’s place strategy for bulk orders, which focuses on how the company ensures the availability and distribution of its products, can be summarized in the following points:
- Extensive Distribution Network: UltraTech Cement has established a comprehensive and efficient distribution network with many dealers and retailers across India, ensuring their products are readily available in various regions, including remote areas.
- Strategic Location of Manufacturing Units: The company has strategically located its manufacturing units close to raw material sources and critical markets. This reduces transportation costs and ensures timely delivery of products.
- Use of Multiple Transportation Modes: UltraTech utilizes a mix of transportation modes, including road, rail, and sea, to deliver its products. This multi-modal approach enhances their ability to serve diverse markets efficiently.
- Global Presence: Besides its domestic solid presence, UltraTech has expanded its footprint globally, with operations in countries like the UAE, Bahrain, Bangladesh, and Sri Lanka, catering to the international demand for cement and building materials.
- Adoption of Digital and E-commerce Platforms: UltraTech has embraced digital technology and e-commerce to streamline its distribution and make it easier for customers to place orders, track shipments, and access services, enhancing customer experience and reach.
UltraTech Cement Pricing Strategy
Because of its numerous products, UltraTech Cement employs a varied pricing strategy. The most crucial factor to consider when marking a product’s price is the supply surplus demand across the region. Places with surplus supply experience lower pricing, whereas areas with more demand than production experience higher pricing.
The southern regions are lowly-charged whereas the eastern and western sides experience higher rates. Discounts are always given when orders are placed in bulk. Regular customers who directly buy from the company are often given credits. External environmental factors, mainly the transportation cost of raw materials and the overall cost of production, are the other main factors used by UltraTech Cement in determining the price of a product.
UltraTech Cement employs a dynamic and strategic approach to pricing tailored to maintain its market position and address the diverse needs of its customer base. Here are critical aspects of its pricing strategy:
- Value-Based Pricing: UltraTech Cement aligns its prices with the perceived value of its products. By offering premium quality and a wide range of cement products, it justifies a price point that reflects its offerings’ high value and performance.
- Competitive Pricing: In a market crowded with numerous players, UltraTech strategically positions its prices in line with industry standards while ensuring they remain competitive. This strategy is crucial for retaining market share and attracting price-sensitive customers.
- Segmented Pricing Strategy: Recognizing the diverse needs of different market segments, UltraTech employs a segmented pricing strategy. It varies prices for different segments, such as retail consumers, industrial buyers, and bulk purchasers, catering to their unique demands and price sensitivities.
- Geographical Pricing: Given the vast geographical spread of its market, UltraTech adopts a geographical pricing strategy. Prices are tailored based on local market conditions, transportation costs, and the competitive landscape in different regions, ensuring optimal market penetration and profitability.
- Dynamic Pricing: In response to fluctuations in raw material costs, demand trends, and economic conditions, UltraTech employs a dynamic pricing approach. This flexibility allows the company to maintain profitability while adapting to market changes.
- Promotional and Seasonal Pricing: The company also uses promotional and seasonal pricing strategies, offering discounts and incentives during specific periods or for certain projects, aiding in market expansion and customer retention.
UltraTech Cement Promotion Strategy
The product entered the market with the tagline “The Engineer’s Choice.” This depicts how premium quality of the product is as the company suggests that qualified engineers approve the brand. The company is also known to promote its products aggressively, with such an aggressive advertising strategy being an essential aspect of its marketing mix.
Such a marketing strategy has involved association with sports, such as the most popular game in India, hockey, etc, in marketing its brand as a youthful and energetic choice. It is also a youthful brand known to have promoted “Chak De India,” a widely watched film.
UltraTech Cement brand has also associated itself with the Deccan Chargers team and Rajasthan Royals in the IPL. One thing that makes it beloved the most is its quality approval by architects, builders, and engineers to the extent that it was honored with the SUPERBRAND award for two successive years, 2011 and 2012.
Some Recent Video ads and Print ads for UltraTech Cement are:
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