Marketing Strategy of Ambuja Cements - Ambuja Cement Marketing

Founded by Narotam Sekhsaria and Suresh Neotia in the year 1983, the company had become part of the global Conglomerate Holcim with its operations in more than 90 countries.

It has 30 unique platforms called Ambuja Knowledge Centres (AKCs) across India which serves as a knowledge sharing platform for construction professionals that includes practical workshops on mix design and quality supervision.

Table of Contents

Segmentation, targeting, positioning in the Marketing strategy of Ambuja Cements –

Ambuja Cements uses segmentation variables such as income group, number of members in the family, region, and others. It uses a mix of geographic and psychographic segmentation variables to understand the changing needs of the industry & end customers.

Since offerings of Ambuja cement are meant for varied uses in the meta-market, therefore, it uses differentiating targeting.

Customer benefit based positioning strategies is used by the company to highlight the features and value of money to the customers.

Marketing mix – Here is the Marketing mix of Ambuja Cements.

SWOT analysis – Here is the SWOT analysis of Ambuja cements.

Mission – “To create value for all……customers, Enlightened Partners, inspired employees, Energised Society, Loyal Shareholders, and Healthy environment”

Vision – “To be the most sustainable and competitive company in our industry”

Tagline –“Giant Comprehensive Strength”.

Competitive advantage in the Marketing strategy of Ambuja Cements –

Cost Leadership: With wide scale of operations, company has achieved cost leadership in activities such as Manufacturing, Logistic, procurement, Supply chain management etc. which is helping the company in being competitively ahead of its competitors.

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Use of Low Cost-Pet Coke: In the manufacturing facilities fuel mix plays a critical role in overall operational cost, a well-balanced fuel mix with 65-70% Petcoke & domestic/imported coal is helping the company in the same.

Strong Group: The Ambuja Cements is the part of the reputed Holcim group of Switzerland, the company which later on merged in equal proportion with Lafarge SA to form LafargeHolcim- the world leader in building materials. The company has been transformed from having a single plant with a capacity of 700,000 tonnes per annum in 1986 to cement giant with five integrated cement manufacturing plants and eight cement grinding units.

BCG Matrix in the Marketing strategy of Ambuja Cements –

Ambuja Cement operates in business segments such as base product, Premium product segment for the specialized industry and other related solution & services.

Since the company is the leader in most of the product segments it operates into & has bagged many public & private company’s big-ticket tenders based on the products, therefore all its segments are Stars in the BCG matrix.

Distribution strategy in the Marketing strategy of Ambuja Cements –

It has coverage of more than 48000 distributors, retailers, wholesalers, resellers across the kith & kin of the country.

It covers key locations across the different regions with its physical infrastructure such as 5 integrated plants, 9 Kilns, 17.7 Clinkerisation Capacity (MTPA), 8 Grinding Units, 3 Bulk Cement Terminals, 1 Loading Port, 1 Cement Grinding Capacity (MTPA) 29.7 Ships 10

Brand equity in the Marketing strategy of Ambuja Cements –

Ambuja Cements has won various prestigious awards for its operational efficiency and social initiatives such as National Mineral Development Corporation (NMDC) Social awareness award 2016-17 by Federation of Indian Mineral Industries (FMI), YES Bank natural capital award -2017, CII National Award for excellence in water management 2017.

Its innovative and simple advertisements have helped the company in increasing in TOMA (top of mind awareness) thereby increasing the share of wallet and share of heart.

Also Read 3 objectives of competitive analysis and how it helps in strategy

Competitive analysis in the Marketing strategy of Ambuja Cements –

Capacity utilization plays a major role in the industry in which Ambuja Cements operates. With Pan India Footprint of 63 million tonnes and capacity utilization of more than 70%, the company is giving head-on competition to other players in the market.

The companies operating in the industry compete based on the factors such as reach in the market, production capacity, brand image, price range and product portfolio.

Some of the competitors of Ambuja Cement are Prism Cements Limited, Shree Cement, The Indian Cement and Ultratech Cement.

Market analysis in the Marketing strategy of Ambuja Cements –

Rapid urbanisation, Infrastructure development, affordable housing, RERA (Real Estate Regulatory Authority) for protecting rights of homebuyers, GST (Goods & services tax), Re-monetization are some of the demand drivers for the Cement industry while the factors such as labour cost, unsold inventory, seasonal demand pattern, Government regulations are some of the factors affecting the companies operating in the industry.

Customer analysis in the Marketing strategy of Ambuja Cements –

Customers of Ambuja Cements consist of Retail as well as B2B customers such as Resellers, distributors, architects, government bodies, and wholesalers.

Although there are channels through which customer can purchase the cement but the selection of the right cement mostly depends on the suggestions of builders or the Masons.