At
the fag end of the 20th century, India's
oldest cement company, The Associated Cement Companies
Ltd. (ACC) found itself facing many challenges. Once
the bell-wether of the Indian stock market, the cement
giant had slipped from its position of market leader
in many prime markets. Falling prices had touched
the bottom line. Beleaguered by these and other problems
like a worsening of the demand-supply situation and
entry of MNCs into the market, it seemed that ACC
would have to struggle to recover its former position
of glory. However, taking advantage of a series of
fortuitous circumstances and placing faith in its
own capabilities, ACC was able to turn the corner.
This article discusses the brand building exercise
that aided recovery of ACC.
In
1997-98, the ACC salesforce and junior management
was taken aback by a question posed to them by the
senior management. Could they sell blended cement,
especially Portland Pozzolana Cement (PP cement),
at a premium of Re. 1 per bag over their 53-grade
cement? Many of them responded with a stunned silence.
The remaining reactions varied from outrage to amusement.
The reason for these extreme responses was that the
sales personnel of all cement companies considered
all blended cement to be inferior in performance to
Ordinary Portland Cement (OP cement). All companies
that manufactured PP cement, priced it at Rs. 2 to
Rs. 3 lower than their 43-grade OP cement product.
No efforts were made to push the product through the
retail trade channel.
Although,
ACC was probably the only company to talk about the
virtues of PP cement as a product, it also followed
the general trend of selling PP cement mainly in the
large projects and niche use segment instead of the
retail segment. This came out in their promotion of
PP cement, which stated that it found a general application
barring cases where early high strength was a requirement
and, was specially to be considered for use in dams,
bridges, and other hydraulic structures, in concretes
made with reactive ingredients, in structures designed
to withstand attack by sea water and in structures
subject to weak acidic and silicate attack. This was
surprising because ACC also manufactured Portland
Slag Cement (PSC), Sulphate Resisting Portland Cement
(SRPC) and Low Alkali and Low Heat of Hydration Portland
Cement which were specifically suitable for all these
applications. These were marketed across India by
a special marketing team. PP cement, though considered
a general product and meant to be sold through normal
channels of trade, was also pushed for special applications. |