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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

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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