The Marketing mix of Ambuja Cement analyses the 4Ps of Ambuja Cement’s marketing strategy, detailed marketing mix, which includes the Product, Price, Place, and Promotion of Ambuja Cement. Ambuja Cement is one of the leading cement manufacturers in India. The enterprise was founded in 1983 and was known as Gujarat Ambuja Cement Limited. The enterprise aims to provide cement and clinker for domestic purposes as well as for export purposes.
The brand Ambuja Cement has defined standards for the cement industry in India. Contemporaries like Ultra Tech and ACC Cements have been keeping an eye on the industry trend and growth of Ambuja cement and have always tried to do something similar. ACC once was a group of cement manufacturers, but since the separation, the company is on the back foot and ranks behind Ambuja Cement on varied parameters.
Ambuja Cement’s headquarters are in India’s financial capital, Mumbai, Maharashtra. Ambuja Cement is now a part of the global conglomerate Holcim. Holcim has had all the management rights to Ambuja Cement since 2006. Ambuja Cement is also known for its strategic investments in ACC Limited.
About Ambuja Cement
- Type: Cement manufacturing company
- Industry: Cement
- Founded: 1983
- Founder: Ajit Kerkar
- Headquarters: Mumbai, India
- Area served: India
- Key people: Gautam Adani (Chairman) and Nishant Ruia (CEO)
- Number of employees: 24,000
Table of Contents
Ambuja Cement Product Strategy
Ambuja Cement manufactures cement and clinkers; the enterprise has close relations with the government and other private institutions. Ambuja is a leading cement manufacturer and has contributed to the rise of infrastructure in the country like never before. By supplying high-quality cement, they have made an incomparable contribution to the country’s development by providing many government projects.
Ambuja Cement has seen varied ups and downs, but they have never compromised on the product quality they produce.
Top products from the house of Ambuja Cement are:
- Ambuja Plus Cement
- Portland Pozzolana Cement (PPC)
The Product Mix of Ambuja Cement in 2023 is as follows:
- Ordinary Portland Cement (OPC): OPC is a versatile type of cement used in various construction applications, including residential, commercial, and industrial projects. Ambuja Cements produces OPC in different grades to cater to specific requirements.
- Portland Pozzolana Cement (PPC): PPC is a blended cement that combines OPC and pozzolanic materials like fly ash, making it suitable for infrastructure and large-scale construction projects. It offers improved durability and reduced environmental impact.
- Ready Mix Concrete (RMC): Ambuja Cements offers ready mix concrete solutions for construction projects, providing customers with a convenient and consistent supply of high-quality concrete mixtures.
- Specialty Cement Products: Ambuja Cements may also offer specialized cement products designed for specific applications. These could include products like Ambuja Buildcem, intended for foundation and underground construction use.
- Bulk Cement: Bulk cement is provided to customers who require large quantities of cement for infrastructure and construction projects. Ambuja Cements offers bulk cement delivery options to meet these needs.
- Value-Added Services: Besides its core product offerings, Ambuja Cements may provide value-added services such as technical support, training, and consulting to assist customers in using their products effectively.
Ambuja Cement Place Strategy
Ambuja Cement was founded on the soil of Gujarat, but the headquarters are in Mumbai. The brand aims to take on its contemporaries in a very unique way. The strong relations with the government and other building institutions have helped Ambuja Cement beat contemporaries like ACC and Ultra Tech. The throat-cutting competition saw a new height when the likes started manufacturing products similar to Ambuja Cement’s.
Ambuja Cement has always believed in rapid expansion; they have monitored their business growth intricately and taken expansion measures whenever the target market requires it. With the expansion through India and its sub-continent, they have developed a good base of users.
Ambuja Cement manufactures cement for two purposes only.
- For domestic use and
- For exporting it to the world
The slow but solid expansion has helped the brand create a loyal base that will incur considerable profits in the coming times. The slow and steady expansion has also contributed to the rise in share value.
Here’s a place strategy for Ambuja Cement:
- Extensive Distribution Network: Ambuja Cement has established an extensive distribution network of dealers, retailers, and distributors across India. This broad reach ensures that their cement products are readily available to customers in both urban and rural areas.
- Cement Terminals and Warehouses: The company operates strategically located cement terminals and warehouses to facilitate efficient storage and distribution of cement products. These terminals help reduce transportation costs and ensure a consistent cement supply to construction sites.
- Direct Sales to Large Customers: Ambuja Cement also directly sells to large construction companies, infrastructure projects, and government agencies. They can cater to bulk orders and specialized requirements by establishing direct relationships with key customers.
- Digital Presence: In recent years, Ambuja Cement has enhanced its digital presence by offering online platforms and tools. Customers can inquire about products, place orders, and access technical information through the company’s official website and digital applications.
- Technical Support and Training: Ambuja Cement provides technical support and training to builders, contractors, and masons. They offer expertise in cement applications, construction techniques, and product usage to ensure customers have the necessary knowledge for successful construction projects.
Ambuja Cement Pricing Strategy
The business development team at Ambuja Cement keeps a meticulous eye on the varied pricing strategies of its contemporaries and competitors. They have worked a way to manage the prices well—Ambuja Cement deals in regular packets of cement, which can be used to build prosperous homes quickly.
Ambuja Cement PPC is available for a meager price of 297 INR. People from the remotest corners of India can buy this cement at the listed price, while international prices will differ based on the taxation rates in the particular country.
Competitors like ACC and Ultra Tech have listed their products very closely; some have listed their cement packets at 295 and 300 INR. The neck-breaking stiff competition here is taking a toll on almost every enterprise, but Ambuja Cement seems firmly placed and satisfied.
Here’s an analysis of Ambuja Cement’s pricing and distribution strategy:
- Cost-Plus Pricing: Ambuja Cement typically starts with a cost-plus pricing approach. They calculate their cement products’ production and distribution costs, ensuring that prices cover expenses and contribute to profitability. This forms the foundation of their pricing strategy.
- Market Segmentation: Ambuja Cement recognizes that different customer segments have varying price sensitivities and requirements. They segment their market into residential, commercial, industrial, and infrastructure segments, tailoring pricing strategies to cater to the specific demands of each sector.
- Dynamic Pricing: Ambuja Cement employs dynamic pricing strategies in the highly competitive cement industry. They continuously monitor market conditions, demand fluctuations, and competitor pricing, adjusting their prices to remain competitive while preserving margins.
- Promotional Pricing: Ambuja Cement may offer promotional pricing during specific periods or for certain products to stimulate demand. This can include discounts, bundled offers, or loyalty programs to encourage repeat business.
- Value-Based Pricing: Beyond considering production costs, Ambuja Cement emphasizes the value its products offer customers. When setting prices, they consider factors like product quality, durability, technical support, and brand reputation. Premium products designed for specialized applications may command higher prices based on the value they provide.
- Long-Term Contracts: Ambuja Cement may negotiate long-term contracts with fixed or volume-based pricing for large infrastructure projects and bulk buyers. This provides stability and predictability for both the company and its key customers.
- Transparency: Ambuja Cement maintains its pricing transparency by providing customers with clear pricing structures and terms. This transparency builds trust and fosters long-term relationships.
- Cost Efficiency and Productivity: The company continuously invests in cost-efficient manufacturing processes and supply chain optimization to manage production costs effectively. These efforts allow Ambuja Cement to offer competitive prices while maintaining profitability.
Ambuja Cement Promotion Strategy
No other cement manufacturer in the country can even come closer to Ambuja Cement when it comes to marketing the project well. ‘Tutegi Kaise Ambuja Cement Se Jo Bani Hai!’ is one of those rare taglines you will find every kid and oldie chanting. Besides this, the other tagline, “Iss cement mein jaan hai” is synonymous with Ambuja cement and is famous nationwide.
Ambuja Cement not only has a tagline that is easy to remember and addictive but also a series of ad campaigns that aim to touch hearts, from creating ads that showcase the rift between siblings to enrolling the Great Khali for an emotional advertisement.
The ad that portrayed the famous wrestler Khali is one of the most popular TV ads of recent times. It promotes the product smartly and creates a connection with the people watching. The ad has touched the right chord of family, relationships, and love.
Ambuja Cement is beating contemporaries and emerging as a new brand that loves its country, values relationships, and aims for enigmatic growth.
Some Recent Video ads and Print ads of Ambuja Cement are:
WWE champion the Great Khali for Ambuja Cement – YouTube
Gulzaar Sahab Evokes Nostalgia in Ambuja Cement’s viral ‘Chhat Pe Milte hai Campaign’ – YouTube
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Hello Sir, Nice article. I need your expert advice on what kind of branding/ marketing strategy should Century cement take to get established in this field?
Well, i heard about Century cement from you for the first time. So i guess, the first thing Century cement needs to do is to increase its overall distribution network. The thing about the cement industry is that Availability is everything. Your production capacity determines what level of market you are going to cover. It is a need based industry.
If the production capacity is high but the material is not selling, then i will try to increase distribution. And will do a lot of Point of purchase advertising or BTL advertising. I will use buses for ads, hoardings, but more importantly i will decorate the shop of my dealers with the proper POP material which is eye catching. This ensures that brand recall rises and these dealers only advertise your products.
Considering that Century cement is a new player, it has to focus more in promoting the product through mass media, billboards, and promotional activities that can get the awareness of the target market. Surely, a marketing plan can help as it will study the competitiveness, the pricing, as well as the strategies involved. Note that it is always difficult to convince the market to shift to a new brand of cement if they have been loyal to a specific brand. But…. to be able to establish a new brand name in the market, one has to take the risk of lowering the price, offer after sales service, and choose a strategic location which is accessible to all.