Cement Consumer Insights

Research Objectives
The primary research objective is to understand from end consumers, influencers and dealers/trade: their awareness, knowledge and perception of the category how do they select brands, what are factors taken into consideration how they rate good cement perception and knowledge about benefits and drawbacks of finer cement awareness about measurement of fineness of cement Also to check on the values associated with famous personalities like A. R. Rahman, Shah Rukh Khan, Aamir Khan, Akshay Kumar and Sachin Tendulkar in order to identify the best match for the new brand
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Confidential & Proprietary Copyright 2007 The Nielsen Company
Research Design
Methodology Qualitative Research - Depth Interview Technique was used for this study
Centre
Guwahati Silchar Dibrugarh
Target Group Individual House Builders Multiple Brand Dealers Chief mason / contractor and independent masons Engineers All decision makers/ involved in purchasing cement
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Research Design
Sample Size A total of 40 In - Depth Interviews across segments and centers
Centers
Guwahati
IHB
6
Contractor Masons
4
Dealers
4 (2 big +2small)
Engineers
4
Total
18
Silchar
3 (2 big +1small)
3 (2 big +1small) 10
12
Dibrugarh
10
Total
14
10
40
Fieldwork dates: 8th January to 13th January 2010
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Findings
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Category Understanding
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Awareness and perception about types of cement

Low awareness of types and grades of cement among individual house builders and independent masons across centres As per common perception, grades represent strength of the cement and 53 considered to be the best grade OPC and PPC were the two types of cements commonly mentioned across centres Majority of the mason contractors/ head mistris and dealers, across centres were aware
of OPC and PPC cements. Most of their perception about the types of cement comes from
their own experiences with cement category and also from their liaison with their fellow professionals As expected, the engineers were not only aware but were quite knowledgeable about the cement types and grades
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OPC CEMENT Mostly used in Government construction or by institutional consumers for building bridges, roads, under water construction, etc
Some demand from the IHBs in Guwahati for construction of foundation and roof as OPC
associated with greater strength than PPC (since used for Government construction of bridges, roads, etc) Setting time less than that of PPC, so useful for under water construction or in damp area
Expensive than PPC and perceived to be less profit giving to the cement companies as well
No ready availability of OPC cement. In Guwahati, some perceive OPC cement to be finer than the rest as associated with the Ambuja which is considered to be the finest cement currently available in the market
Takes 21 days to attain maximum strength (Engineers)

Presence of grades 33, 43, 53 (Engineers)
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PPC cement Commonly used for individual buildings and other non Government projects that does not involve construction under water or on damp ground As more in demand than OPC, most dealers stock only PPC cement Longer setting time than that of OPC cement perceived to be better for regular construction by some easier to work for regular projects Less curing required
Less expensive than OPC cement

As per the engineers across centres : Higher resistance to chemicals or sulphate resistance More durable More workability
No presence of grades
Greater resistance against compressive stress Slow strength gaining process -Takes 6 months to attain maximum strength
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Perception of Strong Cement

Strong Cement Durability If I am spending so much money to build my home, then I would want it to be long lasting Security and protection against natural calamity House should be able to protect us against harsh conditions North East being a earth quake zone, we always want a cement that would be able
to resist the damage done by earthquakes

Low maintenance less cracks, water seepage, damp In Dibrugarh, damp is a major problemso we would need a cement which is able to resist that High compressive strength (Engineers) should have the ability to bear the load of a number of stories
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Perception of Strong Cement

Although setting time is considered an important criteria, there does not exist a uniformity across respondents in the time duration mentioned as good setting time In Guwahati, quick setting was generally associated with strength Bhutan cement that used to be available earlier used to get set in just 25 minutes that was strong cement In Silchar, slow setting(24 hrs) perceived to be more durable and associated with strength
for strength and durability, It should take at least 24 hours to set

Dibrugarh, quick setting cement was associated with underground construction or construction in damp area. Slow setting cement was associated with construction of other parts of the house Cement for walls & roofs should have slow setting. Cement used for foundation should set fast
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Perception of Good Cement

PRODUCT Pure-no adulteration Dry, low moisture content (Engineers) Fresh within 3-6 months of manufacturing date Fineness Setting time Consistency of quality Uniformity of colour A preference for dark coloured cement observed, mainly for the dark finish of the flooring ISO Mark Good pack adulteration proof, moisture proof Original pack with original stitching , no sign of repacking OTHERS BRANDS National brands perceived to be of better quality than the local brands APPLICATION Mixes well with sand and stone chips Easy to apply BENEFITS Strong setting Durable, long lasting Less cracks and water seepage Quick setting (Mostly in Guwahati & Dibrugarh) Prevent damp Parts of the wall should not swell Finish should be smooth and glazy
Some engineers and masons spontaneously mentioned fineness as an important criteria However, majority, across segments mentioned fineness only on probing
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Perception of World Class Cement
Mostly related with cement which is being extensively used Cement which have been manufactured following the international guidelines Used for big projects Used for Government works Expensive
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Perception of Fineness of Cement
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Across segments, majority perceived fineness to be an important criteria in cement fineness in cement is important because fine cement will mix well with sand and
stone chips(IHB)
until cement mixes well with sand and stone, it will not give adhesive strength(IHB)
one of the most important criteria in cement is fineness as it determines the

strength of the concrete (Engineer) However, as cements of all standard brands available today are fine in texture, fineness
not considered to be much of a differentiator between brands
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Dealers Economical as fine cement mean more volume Less ratio of the cement in the mixture (sand, chips and cement) would be sufficient in making the concrete strong Speedy construction process EXPECTED BENEFITS AND DRAWBACKS IHBs (few in Guwahati) Good mixing leading to strength as it would be able to seep deep inside better binding uniform setting Less crack and less seepage as there would be compact setting Can be used for plastering also as it would give a smooth finish
Common across segments Mix easily with sand and stone Easy to work with More bonding power, strong, durable construction Smooth finish Suitable for all type of work. dhalai to flooring, plastering
Engineer Better quality, less moisture content Get more volume for the weight Strong, durable construction Fill up all gaps so less chance of damp or water seepage Less chance of cracking
Dry cement Get more volume Give a good mixture Less labour required Set easily Smooth uniform finish, no spotted look or gaps Require less polishing
Mason
No drawback of fine cement mentioned by any segment

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Identification of Fine Cement

Fineness of cement usually judged by masons and few very involved Individual house builders by feeling the cement with two fingers should feel very fine and smooth when touched Another way of judging as mentioned by some respondents across centres was by the quantity of cement in the 50kg pack Star, Topsem you get 21/2 tin of cement in a 50 kg pack but Ambuja you get 23/4
tin because the cement is more fine

Engineers said they judge fineness if required, through laboratory tests
Cement Brands
Common perception that national brands have finer cement than local brands Among national brands Ambuja considered to be the leader in fineness
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Perception of Extra Fine Cement

EXPECTED BENEFITS AND DRAWBACKS
Dealers No extra benefit associated
IHBs No extra benefit associated
Common across segments Mix easily with sand and stone Good for plastering,flooring, Engineer fixing tiles etc Mason Suitable for all type of Smooth finish, higher polish Majority unsure about its final work..dhalai to flooring,plastering strength.. More volume for the weight Majority felt that extra fine Delicate, will absorb more cement will me more suitable for moisture finishing work than dhalai Tendency to blow away while Light cement so tendency to mixing, so lots of wastage, blow away especially when Thus not economical mixing manually Higher price..not value for money Expensive
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Comparing Values Associated with Good Cement

GOOD CEMENT Dry Fresh Consistency of quality APPLICATION Mixes well Easy to apply BENEFITS Strong setting Durable Less cracks and water seepage Smooth and glazy finish Prevent damp STRONG CEMENT PRODUCT FINE CEMENT
+ +
+ +
+
+ + + + + + + + + +
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Decision Making Process and Brand Selection Criteria
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Decision Making Process

PLAN SANCTION **By Government regulation, till 3rd storey of house building no structural design is required ** Also Assam being a earth quake prone zone, structural design is of extreme importance
INFORMATION SEARCH
STRUCTURAL DRAWING ** + ESTIMATE, BRAND SUGGESTION (ENGINEERS & ARCHITECTS)
OTHER BUILDERS
MASONS/ CONTRACTORS
DEALERS
ADVERTISEMENTS
BRANDS IN THE CONSIDERATION SET
AVAILABILITY
DEALER NEAR SITE / KNOWN DEALER
BEFEFITS OFFERED (CREDIT, DISCOUNTS ETC)
FINAL SELECTION
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Brand Selection Criteria- Among IHB

Previous experience if any Recommended by engineers, masons, other users, dealers
Well known reputed brand (preference for national brand)

No recent history of duplication (Silchar) Easily available in the market ( Silchar) Available in the near by known dealers shop we are assured of quality, and getting the best deal in case of complaint we know they will change it Some IHBs claimed to try new brands on dealers recommendation with the assurance that the dealer will change the brand if unsatisfactory Price Discounts, credit Fresh cement check manufacturing date, pack, no gritty particles, etc Condition of the pack, stitching - not adulterated Volume of cement for 50 kg pack
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Brand Selection Criteria- Among Influencers

Masons
Old trusted brand - Previous experience - Recommended by other masons, engineers - Consistency of quality Fresh cement check manufacturing date, no lumps Unadulterated - Condition of the pack, stitching - tests ( dissolve in water) Sets easily setting time should not depend on curing should not crack even if curing not done in the stipulated time Technical support (masons meet) No recent history of duplication Schemes offered ISO mark Reputed brand preference for National brands but local brand also considered if it has automatic plant (Automatic plant ensures consistency regarding the chemical composition of cement) Earlier experience Strength, durability of the cement gauged by bonding and compressive test
Engineers
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Dealers selection criteria for stocking

Demand in the market
Trust National brands are trusted more than the local ones especially in terms of consistency Consistency of quality over a period of time
Margin (For the Big dealers, margin is often as low as Re. 1 per bag of
cement. For them , it is the volume of sales that matters) Availability Often dealership of another brand of cement is taken in case a particular brand fails in regular supplies Unavailability also leads to lack of dependency on the brand and less push from the dealers side Discounts discounts are of different types Yearly discounts Target based discounts Credit period based discounts Cash or quantity discounts
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Dealers selection criteria for stocking

Credit period National brands are considered to provide better credit period i.e. 1 month Local brands credit period varies from 10-17 days Security deposit National brands require more security deposit
Compliant redressal of the dealers or IHB Instant action to be taken

Technical support to the consumer (mostly given by the local players) Monthly visit of the company officials (Company visits are generally limited to the big dealers)
Relationship with the company generally depends on behaviour of the company officials,
payment on time, margin, delivery as per demand Promises are to be kept by the company officials Price currently both National & local brands have similar pricing. But during crisis in availability of cement, the price of the cement goes high Condition of the pack no leakage, manufacturing date, etc. Advertisement
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Current need gaps of the dealers

Replacement facility as per guarantee period maximum of 2 months (Current need gap) Availability
Visible Manufacture date

Target based incentive is generally given during the monsoons when the demand of cement reduces as house constructions are not done in that season Engineers help in dealers sale Less scope for adulteration of the cement The presence of zip at the side of the cement bag make it easy for tampering. That zip is provided to check the quality or freshness of the cement. Company should find out way to stop such things
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Brand Standing
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National brands
Trusted as they been present in the market for quite some time and have been tried all over the country Perceived to have less chance of adulteration
High association with strength and quick setting

Has more volume as its supposed to be finer than the local ones No credit facility given to most of the small dealers Less margin as compared to local brands
Problems in availability as there is no local manufacturing unit. High dependence on

railways. During crisis, few companies like Lafarge make use of the roads to meet the demand Tendency to use National brands for foundation and roof construction Provides the facility of being both a dealer or a retailer Automatic plants maintains consistency
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National brands
Hardly any differentiation across National brands Lafarge Duraguard Have been used for a long time in NE considered market leader Best in terms if discounts good at supply Maintains good relationship ACC high demand in the market oldest company in NE market Moderate satisfaction regarding supply Ambuja High demand in the market finer cement than the other brands More volume Often referred as full volume maal Quick setting Greater strength Good for foundation Can be used for construction in damp area Less availability Highly trusted as its often recommended by Engineers and used in construction of roads and bridges
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Local brands
Problems in availability as there is severe power crisis in Assam leading to low production Credit facility Local brands are priced less than the National brands by Rs. 5 -20/Tendency to use local brands for repairing works Few local brands have problems with consistency Among the local ones, the brands associated with Meghalaya cement are considered of a superior quality as the limestone used in those cement is of better quality Not preferred by apartment builders There have been news of failures of local cements that makes builders apprehensive
about local cement brands
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Local brands
Star Most trusted among the local brands Owning automatic plant in Meghalaya
Perceived to be prompt in complaint redressal

Provides a lot of target based schemes and loyalty programmes. For example, foreign trips if the dealer is able to sell 15,000 bags in a year Yearly family picnic for all dealers
Certificate for dealership

Regular masons meet at the dealers outlet to increase the trust of the masons on the dealer Engineers guidance are given to the customers Organizes mobile laboratories for conducting cube test during dhalai Provides fresh cement
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Local brands
Topcem Owning manual plant in Meghalaya Considered of the second wrung Very close to Star in quality
Jambu Shakti
manufactured in Guwahati
Vinay one of the first local cement to be launched in the market about 5-7 yrs ago, many have stopped the dealership due to irregular supplies and customers complains about prolonged setting time
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Cement Consumer Insights

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Research Objectives

Confidential & Proprietary Copyright 2007 The Nielsen Company

Confidential & Proprietary Copyright 2007 The Nielsen Company

Fieldwork dates: 8th January to 13th January 2010

Confidential & Proprietary Copyright 2007 The Nielsen Company

Confidential & Proprietary Copyright 2007 The Nielsen Company

Confidential & Proprietary Copyright 2007 The Nielsen Company

Awareness and perception about types of cement

Confidential & Proprietary Copyright 2007 The Nielsen Company

Awareness and perception about types of cement

Takes 21 days to attain maximum strength (Engineers)

Confidential & Proprietary Copyright 2007 The Nielsen Company

Awareness and perception about types of cement

Less expensive than OPC cement

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Strong Cement

to resist the damage done by earthquakes

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Strong Cement

for strength and durability, It should take at least 24 hours to set

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Good Cement

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of World Class Cement

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Fineness of Cement

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Fineness of Cement

one of the most important criteria in cement is fineness as it determines the

not considered to be much of a differentiator between brands

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Fineness of Cement

No drawback of fine cement mentioned by any segment

Identification of Fine Cement

tin because the cement is more fine

Confidential & Proprietary Copyright 2007 The Nielsen Company

Perception of Extra Fine Cement

Dealers No extra benefit associated

IHBs No extra benefit associated

Confidential & Proprietary Copyright 2007 The Nielsen Company

Comparing Values Associated with Good Cement

Decision Making Process and Brand Selection Criteria

Confidential & Proprietary Copyright 2007 The Nielsen Company

Decision Making Process

STRUCTURAL DRAWING ** + ESTIMATE, BRAND SUGGESTION (ENGINEERS & ARCHITECTS)

BRANDS IN THE CONSIDERATION SET

DEALER NEAR SITE / KNOWN DEALER

BEFEFITS OFFERED (CREDIT, DISCOUNTS ETC)

Confidential & Proprietary Copyright 2007 The Nielsen Company

Brand Selection Criteria- Among IHB

Well known reputed brand (preference for national brand)

Confidential & Proprietary Copyright 2007 The Nielsen Company

Brand Selection Criteria- Among Influencers

Confidential & Proprietary Copyright 2007 The Nielsen Company

Dealers selection criteria for stocking

Dealers selection criteria for stocking

Compliant redressal of the dealers or IHB Instant action to be taken

Confidential & Proprietary Copyright 2007 The Nielsen Company

Current need gaps of the dealers

Visible Manufacture date

Confidential & Proprietary Copyright 2007 The Nielsen Company

Confidential & Proprietary Copyright 2007 The Nielsen Company

High association with strength and quick setting