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Strong branding can create customer loyalty

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Meghna Bhimrajka, Independent Marketing Consultant, speaks about branding being essential to the cement industry for differentiation and customer loyalty, despite the challenge of commoditisation.

How critical is branding in the highly competitive cement industry, and what unique challenges does it present?
Branding in the cement industry is crucial because it helps differentiate products in a market where the core product is largely commoditised. Strong branding can create customer loyalty, justify premium pricing and enhance market perception. The unique challenges in the cement industry can include overcoming the perception of cement as a low-involvement product, communicating technical superiority and sustainability efforts and addressing the diverse needs of both B2B and B2C segments.

What specific branding strategies do you recommend for cement manufacturers to differentiate them from competitors?
To stand out, cement manufacturers can focus on the following:

  • Visual identity: A brand’s look and feel make a lasting impression on customers. Associating the brand with colours like yellow or green can reinforce that impression.
  • Appropriate associations: Align with brand with ambassadors that embody the brand’s value to reinform messaging and value proposition
  • Localise the content: Use of local languages rather than Hindi/English can help customers relate to the brand better
  • Customer engagement: Brands can boost customer engagement through CSR activities, on-ground events, and building communities.
  • Emotional Branding: Connect with customers on an emotional level by associating the brand with reliability, strength and trust.

How can cement brands effectively communicate their value proposition to both B2B and B2C segments?
For B2B segments, emphasise the technical benefits, cost-efficiency and reliability of the products. Use case studies, whitepapers and technical datasheets to communicate these points.
For B2C segments, focus on ease of use, aesthetic appeal and the brand’s reputation for quality and safety. Use marketing materials like brochures, social media content and testimonials from satisfied customers to highlight these aspects.

Cite examples of successful cement branding initiatives that have significantly impacted market perception and sales.
One notable example is the ‘Duracem’ campaign by UltraTech Cement. By emphasising the durability and strength of their products through a series of impactful advertisements and on-ground activations, UltraTech successfully repositioned itself as the go-to brand for long-lasting construction projects.

How does sustainability factor into the branding of cement products, and what best practices should companies follow to highlight their green initiatives?
Sustainability is increasingly important in the cement industry due to regulatory pressures and growing environmental awareness among consumers. Companies should:

Certifications obtained and display eco-certifications for their products.
Transparency: Provide clear information about their sustainable practices and achievements.
Engagement: Involve stakeholders in sustainability initiatives and share success stories.
Education: Use marketing campaigns to educate customers on the benefits of using sustainable cement products.
Branding: Use brand touchpoints like stores, packaging, website and social media to further promote all sustainable practices undertaken by the brand

In what ways can digital marketing and social media be leveraged to enhance the visibility and reach of a cement brand?
Digital marketing and social media can amplify a cement brand’s visibility by:

Content marketing: Sharing informative and engaging content about product benefits, industry trends, and company initiatives.
SEO and PPC: Optimising websites for search engines and using pay-per-click advertising to drive traffic.
Social media campaigns: Utilising platforms like LinkedIn for B2B marketing and Facebook or Instagram for B2C engagement.
Video marketing: Creating videos that demonstrate product applications, customer testimonials, and behind-the-scenes looks at manufacturing processes.
Email marketing: Sending targeted email campaigns to nurture leads and maintain customer relationships.

What are the key elements of a consistent branding strategy across various product lines and markets in the cement industry?
Consistency in branding involves:

  • Unified visual identity: Maintain a consistent logo, colour scheme and design across all materials.
  • Core message: Create a central brand message that can be adapted to different products and markets.
  • Brand values: Communicate core values, such as innovation, sustainability and reliability, across all platforms and interactions.

How do you measure the effectiveness of branding efforts for a cement company, and which metrics or key performance indicators (KPIs) are most indicative of success?
Effectiveness can be measured through:

  • Brand awareness: Track metrics like social media mentions, website traffic, and search engine ranking.
  • Customer engagement: Monitor social media interactions, email open rates and website engagement metrics.
  • Sales performance: Analyse sales data to see if there’s a correlation with branding initiatives.
  • Customer loyalty: Measure repeat purchase rates and customer satisfaction scores.
  • Market share: Compare market share before and after branding campaigns.
  • Return on investment: Calculate the ROI of branding efforts by comparing the cost of campaigns to the increase in revenue and market presence.

– Kanika Mathur

Concrete

Jefferies’ Optimism Fuels Cement Stock Rally

The industry is aiming price hikes of Rs 10-15 per bag in December.

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Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.

JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.

“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”

According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.

The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)

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Steel Ministry Proposes 25% Safeguard Duty on Steel Imports

The duty aims to counter the impact of rising low-cost steel imports.

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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.

Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.

The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.

Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.

The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.

(ET)

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India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames

Move boosts domestic aluminium industry, curbs low-cost imports

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The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.

The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.

Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.

India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.

The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.

With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.

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