Advertising & Sales Promotion on Cement Industry

assigning ADVERTISING & SALES PROMOTION CEMENT INDUSTRY PROF. ANAND DESAI SATISHKUMAR BIRADAR Roll no 07 (MMM IV) The cementumumum assiduity has come a long way since 1914 when the commencement exercise cement prove was set up at Porbandar. In the past, the organizations mandate re unforgivinged the growth of the Indian cement patience. The removal of these functions resulted in rapid progress in terms of modernistic subject matter creation and high production. As of March 2012, the country had an installed cement capacity of around 325-330 one thousand thousand tonnes with most of the capacities being attention deficit disordered only during the last decade. Evolution of the cement industry The cement industry is one of Indias core sectors. The countrys first cement plant was set up in Porbandar, Gujarat in 1914. Earlier, the government regulated the industry with licensing, price and distri barelyion controls. A gradual removal of these controls resulted in rapid ca pacity creation. Following this, the country moved from a cement scarcity situation to a surplus position. As of March 2012, the pan India complete installed cement capacity stood at around325-330 million tonnes. Currently, India is the second-largest producer of cement in the world.The evolution of the cement industry in India can be broadly divided into three point in periods the period of total government control (up to 1982), the period of partial(p) liberalize (1982 to 1989) and the period of total decontrol (after 1989). stopover of total government control Events during the period of government control This period marked the beginning of cement industry where government, with an intention to promote the sector, exercised strict control over the industry. It set out production limits, price as easily as the distri preciselyion channels that should be employed to make out cement.This was aimed at ensuring fair prices to producers and consumers across the country, thus reducing regional imbalances. The repair price at which producers would sell cement was based on the a functionrophize of production of cement throughout the country plus a bare(a) profit. This price contained a weight component that was averaged over the country as a whole. If the actual freight component of a manufacturer was set down than that included in the logical price, producers had to pass on the amount to the pussycat sum, representing the difference between the uniform price freight component and the freight costs incurred by them.On the other hand, if the actual freight incidence was high than the freight element billhooked for in the uniform price, producers were reimbursed the difference. This freight pooling administration back up producers to set up manufacturing plants across the country. Before this system, the industry was concentrated in the eastern part of the country where accesses to raw materials were readily available. However, a drawback of this system was the lack of incentive to producers to minimise costs since they would be reimbursed by the uniform pricing system.As a result, the average cost of production as well as demand for scarce railway capacity increased. Period of partial government decontrol Events during the period of partial decontrol On account of inefficiencies of the uniform price system, the government introduced a system of partial decontrol in 1982. A levy quota of 66. 6 per cent for gross revenue to the government was imposed on existing units while for new and sick units the quota was take down to 50 per cent. The balance 33. 4 per cent could be sold in the clear-cut market to general consumers.A ceiling price was set for sales in the open market to protect consumers from unreasonable high pricing. During this period, cement producers were able to earn profits from the levy sale to government at fixed prices. But for the non-levy sales, profits decreased as there was a sudden increase in cement sup ply in the open market which led to greater competition among the manufacturers. During this period, the government gradually lessen the levy quota and increased retention pricesin order toincrease the favorableness on sales in the open market.Period of total decontrol Events post decontrol In 1989, the government removed all price and distribution controls. The system of freight pooling was scrapped and a subsidy scheme, to ensure availability of cement at reasonable prices in remote and hilly regions, was implemented. This opened up opportunities in the industry and was marked by huge investments in the orgasm years. assiduity structure As of March 2012, the total installed cement capacityin India stood at approximately325-330 million tonnes.The industry can be broadly classified into pan-India, regional and standalone players. Pan-India players include large players alike(p) Holcim host companies- ACC and Ambuja and Aditya Birla group company- UltraTech cement (including S amruddhi Cement). Companies of both these groups are adding capacities through either greenfield or brownfield expansions. Players whose presence is restricted to one or both regions, with a secureness in the markets of their respective operations are included in the phratry of regional players.Key examples of players included in this segment are Jaiprakash Associates (North and Central), Lafarge (concentrated in the East), India Cement (South), Shree Cement (North), Binani Cement (North), Kesoram Industries (South),Chettinad Cement (South), Dalmia Cement (South), Madras Cement (South) etc. Players like Panyam Cement, Penna Cement, etc, are concentratedand operationalin few states within a region. Owing to their largely local reach, these players are classified as standalone players. Industry structure as of March 2012Industry status Theres something active walls and advertising. Its ironic, really. On the one hand, you have telecom brand Airtel lecture of breaking down walls ( Deewarein Gir Jaati Hain), while on the other, you have Ambuja Cement public lecture of unbreakable walls (Yeh Deewaar Nahin Tootegi). Obviously, the context is vastly different in the two cases, but one cant help but nonice the strikingly oppo order thoughts, executed along similar lines. The demolition talks in progress Boy, interrupted Bulldozer fails The stumped builder Rejoicing children Ambuja Cement. Yeh Deewaar nahin tootegi A new television commercial (TVC) for Ambuja Cement, created by Grey Worldwide, revolves around the story of a wall that doesnt break, seasoned with an emotional (almost humanitarian) twist. The TVC opens on a chance event of the caretaker of an orphanage introducing the children to a Mr Choksi. She tells them that Choksi is going to build a hotel on the site of the orphanage. At this point, a superficial boy says to Choksi, Sir, par last time but he is shushed by an older boy. The following morning, the heartless Choksi arrives with bulldozer in tow. At his signal, the bulldozer delivers a powerful blow on the building, but is unable to bring it down. The little boy tries to explain again, but is stopped midway again by the elder one. Choksi tries his best, but is not able to demolish the orphanage. As he wonders about the strength of the building, the little boy says, Arre sir, last time bhi yeh deewar nahin tooti thi (Sir, even last time, this wall could not be broken down). As a disappointed Choksi leaves with his men, the children and their caretaker start bounce in joy, and the voiceover concludes, Ambuja Cement. Yeh Deewaar Nahin Tootegi. For the longest time ever, Ambuja has been harping on its giant compressive strength overture the brand even created the visual of a giant and then a broken hammer. Perhaps its most memorable ad was the one involving two estranged brothers essay to break down the wall that runs between their houses (Bhai Bhai, featuring Boman Irani, which was released sextette years ago).Aft er that humorous attempt, came some ads which presented the brand in a drippy vein (the Dadi ad), a move that Vivek Deshpande, Ambuja Cements vice-president for brand and promotions, agrees was quite disastrous, so much so that the Bhai Bhai ad was recalled. Our new ad is a correction of this, he says, adding that the brand will now strike a balance between emotion and humour. The new film clearly explores a situation where a wall should not break for the right reasons.Priti Nair, discipline creative director, Grey Worldwide, says that the strength of the wall was juxtaposed with the strength of reference book of the orphanage caretaker and the children. Cement is a low involving category, says Nair. So, the children element and the often apply Bollywood type plot (victory of good over evil) were added to make the ad more(prenominal) entertaining. Nair and her team wanted to stay away from the stereotypical milavat (adulteration) type ads for cement, or even those involving bi g buildings and pride of ownership. We wanted to show the victory of the underdogs, she explains.The ad has been directed by Abhinay Deo of Ramesh Deo Productions, who says that the film had to strike a perfect pathos-humour balance. Interestingly, the sign idea was to show that the kids are also surprised when the wall doesnt crack. But we ruled that out, Deo says, because the innocence of a small boy trying desperately to make the big, bad builder understand what his predecessors couldnt do, would add to the fun element. Another older child warning him to stay liquid in a rather knowing fashion builds the suspense, he grins.