MARKETING ENVIRONMENT - ADITYA BIRLA CEMENTS

PRESENTATION I

BY, CHARLES G.

30. ‡ Has an annual production capacity of 48.000 employees. ‡ A US $ 29 billion corporation ± A Fortune 500 company. ‡ It manufactures three types of cement namely Ordinary Portland cement.INTRODUCTION ‡ Incorporated on August 2000 as L & T cements limited. . Portland Blast Furnace Slag Cement and Portland pozzalana cement.8 million tonnes. ‡ Anchored by an extra ordinary force of 1.

MARKETING ENVIRONMENT Based on Porter¶s Framework they are : ‡ Rivalry Among Existing Players ‡ Threat Of New Entrants ‡ Substitutes ‡ Buyers ‡ Suppliers .

‡ The Biggest players are  ACC Limited.COMPETITION ‡ Very high rivalry among the existing players.  Ultratech Cements .  Ambuja Cement .  Grasim Cement . .

‡ As a result the cement industry has become highly attractive for emerging players. ‡ Government have issued new budget favoring high investment into infrastructure in the forthcoming year.NEW ENTRANTS ‡ Existing companies have raised capacity to handle competition. .

Hence lot of alternatives including timber has been considered. However only cement can provide the necessary strength to the building. So there are really no great substitutes for cement.SUBSTITUTE PRODUCTS ‡ Cement manufacturing is a highly polluting industry. ‡ ‡ ‡ .

‡ ‡ ‡ Direct marketing has greatly reduced the role of middleman. Hence buyers don¶t have much bargaining power. Small time buyers have not been given due importance. .BUYERS ‡ Generally cement producers are more powerful than buyers.

sand. clay and iron ore.SUPPLIERS ‡ The basic raw material are limestone. . ‡ ‡ ‡ There are no one so called suppliers of cement in the country. shale. All the raw material are under government¶s control Companies are dependent on government.

POLITICAL ‡ Prices are usually controlled by coal rates. power and railway tariffs. ‡ Lots of state governments offer a lot of exemptions for the cement industry.PESTLE ANALYSIS . freight. ‡ Government controls all the above said prices. ‡ Government are also one of the highest consumers of cement in the country. . royalty and cess on Limestone.

Lots of government projects are expected to be completed this year. Despite recession the export is expected to pick up in the coming year.ECONOMICAL ‡ Currently the industry is on an a boom in India. ‡ ‡ ‡ . A number of cement plants are also expected to be opened in the country.

People usually prefer branded products.  Unorganized Sector.SOCIAL ‡ Cement industry in India is divided into:  Organized Sector. ‡ ‡ ‡ Organized Sector ± Leading cement producing units. . Unorganized sector ± Regional and Local producing units.

‡ At present 93% of the total production capacity in the industry is based on the modern and environment friendly Dry process technology. ‡ Government trying to acquire new technologies form Japan. .TECHNOLOGICAL ‡ From mining to production the entire process is dependent on technology.

Strong Financial Banking. . Long Relationship With Customer.STRENGTHS ‡ ‡ ‡ ‡ ‡ ‡ ‡ Strong Brand Image. Maintains A World Class Infrastructure.SWOT ANALYSIS . Market Share. Better Quality. Large Distribution Network.

Inconsistency Of Supply. ‡ ‡ . Insufficient Manpower.WEAKNESSES ‡ Delay In Supply.

OPPURTUNITIES ‡ It can develop new marketing areas. ‡ Maintain the position of competition in the market. ‡ It can sign more MOU¶s with government regarding supply of cement for government usage. .

.THREATS ‡ ‡ ‡ Entry Of Global Players. Political Threats. The impact of foreign currency fluctuations and interest rates.

Finally the profit level must be higher to motivate the dealers. ‡ ‡ ‡ . Products delivered should also have a high consistency in supply.CONCLUSION ‡ Consumers definitely go for the brand image. Good quality products are usually preferred than cheap ones.

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