DALMIA CEMENT (BHARAT) LIMITED

Marketing Induction

Index
Cement Industry Dalmia Foot Print South India Industry Construct Marketing
Price Product Place Promotion

CEMENT INDUSTRY

World Cement Production Ranking

China India USA

1 2 3

China, India and USA, held their ranks in the last 6 years

Indian Cement Scenario

Cement performance is far superior than eight core industries
14 12 10 8.1 8 6 4.5 4 2 0 Coal -0.2 -2 2010-11 2011-12 Steel Cement Electricity Over All 1.2 7 6.7 5.6 6.6 13.2

4.4

The trend continues in the current year for South

Indian Cement Industry High Growth Potential

India -2nd largest producer in the world Per capita consumption of cement is 136 kg against the global average of 356 kg
Therefore India has tremendous growth opportunity given its low per capita consumption

Housing sector is the major consumer of cement, accounting for more than 50% of the total cement demand Indias population - 1.25 bn by 2013 75 lakh housing units - demand by 2013* Govt.s thrust on infrastructure 56,000 Crs

Break-up of Demand for Cement

DALMIA CEMENT

Growing &Diversified organization

Business Key achievements Future plans

Development of specialty cement for airstrips, oil

well and railway sleepers Cement

Widening horizon across the

country

Retained customer trust for 7 decades Scale-up capacities and be amongst top 5 players Revenue - 2200 crore

Sugar

Ranked among the top 10 players within a short

span of operations in terms of income

22,500 TCD Sugar plants with

Power and energy

Higher recovery rate Increasing realization Aim to increase our power

generation from non-conventional methods and supply to grid

Power through thermal and renewable energy

Number 1 in high Alumina bricks in Cement

industry Refractory

Capacity expansion from 77,000 to

105,000

Overall 50% market share in all India in Cement

industry

To be a complete refractory
solution provider

US$ 1 billion club: 124 companies in India Diversified business drives to growth opportunities & reduces risk

Dalmia Cement Business Foot Prints : All India

Existing Future Plants Corp Office

Meghalaya OCL Cement 5 MT

Calcom Cement 1.7MT Gulbarga & Belgaum Cuddapah DPM Ariyalur DCBL 2.5 MT 4.0 MT 2.5 MT 9.0 MT

Group cement production capacity : 15.7MT with 6 Plants Current ranking 10th position; with expansion 6th Position

Dalmia Foot Prints : South & East Zones

Existing Future Plants Corp Office

Sugar 3 units, UP

Meghalaya OCL Cement 5 MT

Refractory

Calcom Cement 1.7MT Gulbarga & Belgaum Cuddapah DPM Ariyalur DCBL 2.5 MT 4.0 MT 2.5 MT 9.0 MT

Wind Farm: 16.5MW

Soon All India..

INDUSTRY CONSTRUCT

Market PotentialSouth India

State FY 09 LMT 164 79 117 180 FY09-10 Fy10-11 LMT LMT 182 83 121 177 191 87 137 151 Fy11-12 LMT 200 89 140 142 577 Mkt growth 08-09 in % 9% 11% -1% 22% Mkt growth 09-10 in % 10% 4% 9% -2% Mkt Mkt growth growth 1110-11 in 12 in % % 6% 6% 8% -14% 4% 3% 2% -6% 2%

TN Kerala Karnataka AP

South India

540

563

566

11%

5%

0.02%

* LMT = lakh metric tons South India Market growth has dropped from 11% to 1% in last 3 years

Dalmia Vs Market
FY 11-12 State/ Region TN Kerala Karnataka AP DCBL Growth 18% 0% 26% 38% Mkt. Growth 4% 3% 6% -6%

Dalmia has grown times the market

Southern Region

16%

2% Dalmia Vs Market Growth FY 11-12

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% TN DCBL Growth 38%

26%
18% 3% 4% 6% -6% Karnataka AP Southern Region 16% 2%

0%
Kerala

Mkt. Growth

Market Share - Competition

TN FY 12
Others 25% ICL 18%

KL FY 12
Others 31%
MCL 17%

ICL 15% MCL 20%

DCB 14%

UT 10%
AP FY 11

CCC 16%
MCL CCC 4% 3%

DCB 13%

CCC UT 15% 6%
ICL 9% MCL CCC 7% 0% UT 8%

KTK FY 12

ICL 8%

AP FY 12

Others 55%

UT 25% Others 71% DCB 5%

DCB 5%

MARKETING

Marketing
Price
1. Price Trend

Product
1. 2. Product Mix Special Cement

Place
1. Channel Partners 2. Distributorship

Promotion
1. Channel partners 2. Influencer 3. End Consumer

Price
1. Price Trend

Product
1. Product Mix 2. Special Cement

Place - Distribution
1. Channel Partners

Promotion Target
1. Channel partners 2. Influencer 3. End Consumer

2. Distributorship

Price Trend Monthly

Chennai
350 300 250 200 150 100 50 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
400 350 300 250 200 150 100 50 0 Jun Apr Aug Nov Feb Sep Dec Jan Jul Oct May Mar

Ernakulam

FY10-11 FY11-12 FY12-13

FY10-11 FY11-12 FY12-13

Bangalore
350 300 250 200 150 100 50 0 Jun FY10-11 FY11-12 FY12-13 350 300 250 200

Chitoor

FY10-11 FY11-12 FY12-13

150
100 50

Nov

Apr

Aug

May

Feb

Sep

Dec

Jan

Jul

Oct

Mar

Price
Price Trend

Product
Product Mix
Special Cement

Place 1.
Channel Partners

Promotion
1. Channel partners 2. Influencer 3. End Consumer

2. Distributorship

Main Stream Products

OPC 53
Ordinary Portland Cement (OPC) 53 Traditional type of cement Suitable for all applications. higher initial strength and quicker setting time as compared with PPC. 53 Mega Pascal of compressive strength after 27 days.

Dalmia is marketing this as Superoof in TN and as Dalmia Cement 53 Grade in others areas.

Main Stream Products

OPC 43
This is same as OPC 43 but the strength achieved after 27 days is 43 Mega Pascal

Dalmia is marketing OPC 43 as Dalmia Cement 43 Grade in all Areas

Main Stream Products

Pozzolana Portland Cement (PPC)
consists of an additive called standard fly ash up to 30% in cement. Fly ash is waste material of other industries. PPC continues to gain strength over time. Makes the cement more durable.

Dalmia is marketing PPC as DALMIA VAJRAM in Tamil Nadu and Kerala.

Special Cements
SRPC (Sulphate Resisting Portland Cement)
This cement is resistible to attack from sulphates, this is well suited where the soil, environment has such characteristics. The use of Sulphate Resisting Portland Cement is recommended in places where the concrete is in contact with the soil, ground water, exposed to seacoast, and sea water.

Special Cements
Oil Well Cement
Dalmia Oil Well Cement - Is the first cement in the country to receive the prestigious American Petroleum Institute (API) certification. Dalmia Cement is the largest supplier of Oil Well Cement in the Country. It is used for cementing the walls of 'on-shore' and 'off-shore' oil wells of reputed companies such as ONGC and Oil India Ltd.

Special Cements
Railway Sleeper Cement (53 S)
Dalmia Railway Sleeper Cement - Is considered the best cement for railway sleepers. Dalmia Cement is the pioneer to develop this cement in India based on special specifications and requirements evolved by the Railways. It has been used extensively to replace wooden railway sleepers for hi-speed trains.

Special Cements
Air Strip Cement
Dalmia Airstrip Cement - Is used extensively in cementing airstrips due to its high impact load bearing capacity. Transported all the way from Dalmiapuram for cementing the defense airstrips by the Indian government in Punjab.

Dalmia Product USP

Features Magnesia Content Standard 6% max Dalmia 1% or lower 0.35% or lower 2.5% Benefit Totally safe from the risk of late expansion cracks No formation of macro crystals of Magnesium oxide Eradicates cracks Reduces hydration, expansion cracks Higher strength & durable concrete No inadvertent additions or adulteration Low steel corrosion in the very early stage

Low Alkali

Lower than 0.60% Loss of Ignition 53 Gr. OPC is 4% 43 Gr.OPC is 5%. Insoluble Should not Residue exceed 5% in OPC Chloride Content 0.1% Max

Hardly 2%

0.01%

Price
1. Price Trend

Product
1. Product Mix 2. Special Cement

Place 1. Channel Partners

Promotion
1. Channel partners 2. Influencer 3. End Consumer

MARKETING ACTIVITIES

Channel
Product Mix Trade Non Trade Mix

Product & Channel Mix

Product Mix
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 85% 80%

OPC PPC 30% 35%

TN

Kerala

KTK

AP

Channel Mix
90%

80%
70% 60% 50% 40% 30% 20% 10% 0% TN Kerala KTK AP 20% 35% 25% 55% Trade Non Trade

Price
1. Price Trend

Product
1. Product Mix 2. Special Cement

Place
1. Channel Partners

Promotion
1. Channel partners 2. Influencer 3. End Consumer

2. Distributorship

MARKETING ACTIVITIES

Promotion Strategy
To follow 360* approach & customized programs in targeting
Channel Sub Dealers & Retailers
Channel

Influencer
Masons. Engineers, Contractors
End Consumer Influencer

End Consumer
Direct contact program.

Insights
Insights from IMRB survey
Involvement in Buying Material Consumer makes decision on cement :90% Complete responsibility with contractor: only :10%

Consumers
Influencer Channel

Brand bought same as recommended by Head mason/ contractor/Engineer: 97% Cement bought in one shop only:

91%

Takeout: Important to target consumer, influencer & channel (with appropriate programs )

Marketing Programs

Marketing Activities
Influencer Channel dealer Network End Consumer All the Stakeholders

Focus towards Site Meet & counter meet Better customer contact Mason Mela engagement program Product Sampling Induce Trails & Awareness creation

Sub Dealer Foreign Tour Motivate and increase spread of network Local Cable TV address Local Audience Retail branding permanent branding

Own House Builders Meet educate the best construction practices Local Cable TV & Radio In select Mkt Press & periodicals

Increase in Promotional vehicles

Concrete R&D lab Cement & Concreting testing lab New Product development Technical Call Centre - Knowledge Sharing and follow up Dalmia Best House (DBH) Social Media

Account Management Exclusive & preferred Feedback ,Follow up dealer program & customer Loyalty dealer Loyalty & acknowledgement Dealer Conference

Increase in customer care Centers in Tier 2& 3 cities Tech Mobile Van

Promotions
ATL Media TV /Press BTL Wall & Shop Painting In Shop Retail Branding POP /POS Promotional Vehicle Research Price Survey Brand Activations Trade schemes Technical Services Influencer Meets Quality Control

Brand Health Dealer Check Conferences /Dealer Meet Internal Research DBH

Outdoor In film Branding

Account Management Site meets Slump Cone

Blind testing

OUTDOOR Advertisement
For brand communication and recall through optimal mix of outdoor mediums.

Advertisement & Promotion OUTDOOR

Hoarding
We are using this in selected areas as the medium is more expensive. But the visibility is much higher and gives us a premium positioning.

Wall Painting
This has been the traditional and cheaper form of advertisement and is executed in all areas.

Advertisement & Promotion OUTDOOR

Auto Tops
This is another effective medium most suitable in bigger towns where there is a good density of Autos.

Bus Panels
Here we advertise on the side and the back panels of the Bus. They reach a wider audience

Advertisement & Promotion OUTDOOR

Center Medians
This is used on traffic heavy routes

Traffic Umbrella
This has high visibility

Point of Sale Advertisement

To enable brand enquiry and recall at each of Dalmias Retailer.

Advertisement & Promotion COUNTER

Shop Painting
Painting the shop provides advertisement at the point of purchase and increases likelihood of conversion.

Display Boards
These are used at the retail outlets/counter outside the shop. Every Dalmia Dealer should have one. They can also be customized in terms of size. We are giving front lit boards for all, although some dealers are given glow sign boards.

Advertisement & Promotion COUNTER

Posters
On various festivals and occasions we design new posters for increasing visibility at the counter.

In Shop Branding
Dalmia has brought this concept into the cement industry where the

shop is branded with vinyl sheets customized in accordance with the

shop door, window, table, walls etc dimensions.

Advertisement & Promotion COUNTER

A Boards
These are used for advertising at the retail point outside the shop. This acts has a helper for identifying a Dalmia Outlet from a distance.

Wall Hanger/ Danglers/ Banner/ Certificates

These are some of the other point of purchase
advertisement used by Dalmia.

Dalmia Merchandise
Regular Merchandise - For increasing Dalmia Promotion at the counter and motivating the Dealer, Dalmia is providing the following merchandise on regular basis
T - Shirts Caps Pens Scribbling Pads

Dalmia Merchandise
Dealer Kit
We are also giving a Dealer Kit once a year which contains items for Dealers Office use. Currently there are 10 items in the Kit (all of them are branded)
Bag Clock Calculator Writing Pad Table Top Pen Cap Godown Light Tea Cups Account Book

EVENTS ACTIVATIONS

Sigaram Trade Partner Conference

Sigaram
Annual event where performing dealers are invited Top dealers are felicitated for performance with Awards and Trophies All performing Dealers are given benefits in form of Gold coins
Payment is based on no of bags purchased during the financial year .

Gift worth Rs1000-1500 is given to all invited dealers

Events
This event is performed in first /Second Quarter of every financial year Event is conducted for each zone for each state separately Event is conducted in best of the hotels as Aspirational quotient

Event Management Agency

An professional event management agency is selected to deliver the above .

Sigaram Invite

Incentive/ Foreign Tour

Incentive Foreign tour is
To establish the connect with the top dealers with the sales & senior Management To Engage, Support and Acknowledge the Dealer performance

Based on per person cost budgeted, the place of travel will be finalized Places, itinerary & date of the incentive tour will be decided by the sales team Quotations will be obtained at least from 6 to 7 different travel agents and will be compared in the prescribed form

Dalmia Best House

Dalmia Best House

A promotional program with Star Vijay TV channel
Rewarding customers for life time achievement Recognizing Engineers and Architects
2010-11 2011-12

Dalmia Home Sweet Home

Dalmia Institute of Construction

Objective
To supply best manpower required for construction industry Build a network of influencers and buyers who constitute of 65% of our market One of its kind in the industry To keep a tab on the best practices and get useful feedback .

MERCHANDISE

Dalmia Merchandise
Calendar
Dalmia Calendars are the most awaited as they are full 12 sheet calendar and are also customized with Dealer Details upon request.

Festival Gifts
Dalmia believes in celebrating festivals with its channel partners be it Diwali, Onam or Chrismas by sending sweets/gifts to its partners

Dalmia Merchandise
New Year Diaries
Each year Dalmia gives out a Year Planner to each of its partners (trade/non trade)

Visiting Cards/ Tec Mobile Prototype / Others

We as per request/occasion send out above merchandise also to our partners.

TECHNICAL SERVICES

Technical Services
Meets/Demand Generation 70%
Site Meets -30% Shop Meets -30% Cement experts Meets 30% OHB (Own House Builders Meet) -10% Product Sampling Cover block Distribution & Site Visits

Account Management 20%

Build up engineer data base Set Targets to engineer& deliver Projects Undertaken & technical Expertise Regular Follow ups Build Customer Loyalty

Quality Control Complaint handling -5% Price surveys/Monitoring Schemes -5%

 We educate the customer on the raw material quality, and technical parameters for construction We make sure that the quality and strength of the cement used is appropriate Ensure Quality and PH balance of water used in concrete is within limits Are you sure the concrete is strong enough? We take samples of concrete used in your construction, and test them at your site! We showcase the strength and performance of the concrete. Provide Non Destructive testing of the built concrete structure Be confident of the concrete quality!

Just dial our Help line number 9940145000

 Assists the customers to know the raw material quality and helps them go in the right selection Speedy solution to the quality problem of concrete/products Practical training to the construction supervisors Derivation of better methods and designs for industrial/precast customers Establishing the right choice of admixture for varying application of concrete

MASS MEDIA

Mass Media
To promote the brand to a wider audience through TV, Radio and Online Media.

Advertisement & Promotion MEDIA

TV
Currently we are focusing for TV in TN and KERALA as the dealer network is good enough to leverage the spend. We advertise on news channels and serials. Almost all the channels are regional.

Radio
We are using this medium only in selective cities and also not on a regular basis. Almost all the stations we advertise on are regional.

Social Media Objective

To be in the consideration set of any user who is searching the online space for construction related content and engaging & educating the user on a continuous basis.

Social Media Dalmia Presence

Facebook: http://www.facebook.com/DalmiaCement

LinkedIn:
Blog: YouTube : Twitter: Flickr:

http://www.linkedin.com/company/dcbl
http://blog.dalmiacement.com/ http://www.youtube.com/user/dalmiacementindia https://twitter.com/#!/Dalmia_Cement http://www.flickr.com/photos/61549052@N06/sets/

BRAND

Dalmia Corporate Logo

Vajram logo

100 / 100 : Logo

Yellow Background

White Background

**Yellow color bag in TN & Kerala **White color bag in AP & Karnataka

Dealer Board Tamil

Hoarding Design

A Board
Front Back