Understanding brand identity & brand positioning in cement industry a case study

Background
• Study focusing on a Cement Industry in certain region in India
• Objectives of the Study
• Determining brand image of four brands : Brand A , Brand
B, Brand C and Brand D
• Understanding of brand relationships
• Study conducted with Influencers (Engineers), Dealers,
Distributors/Promoters & End-Customer (Individual House
Builders – IHB)

www.mastersungroup.com, Master Sun Consulting, A Master Sun Group Firm.

INFLUENCER’S POINT OF VIEW
ON THE BRANDS


Decision Making Process of
Influencers
• Influencers of three categories covered
 Structural Engineers
 Civil Engineers
 Architects

Structural engineers have a biggest & fairly direct influence
Structural engineers have a biggest & fairly direct influence

Cement in Overall Construction
Decisions
• Raw material decisions come after ‘designing’ decisions
• Designing decisions include
 Aesthetics which is responsibility of architect
 Structural designing responsibility of structural engineers
• Raw materials- construction materials include
 cement, steel, wood, sand, metal, finishing items
(plumbing, flooring, plastering, light fittings)
• Cement and steel considered the most critical input into
construction
 Cement is the binding agent

Cement, the most critical decision
Cement, the most critical decision

Influencers : Key Findings

• Perceived difference in quality between cement from mini-
plants & big brands
• Surrogate indicators like ISI, ISO used to distinguish one mini-
plant brand from other
 “If mini-plants have ISI mark then it really does not
matter”
• Quality of the big brands is similar
 “all are big plants”
 “the q-test would show similar strength”
• Decision process different for the two types of clients
 IHB for their own house/ bungalow
 Big clients- Builders/Contractors for residential complexes


Influencer’s Interaction with IHB
Segment
• IHB Clients depend more on structural engineer/ architect-
since do not have technical know-how
• IHB want the best without any compromise
• Architects/ engineers ‘play it safe’ suggest 3-4 brands
• Brand B perceived to be salient amongst IHB
• Change of brand during construction due to lack of proper
planning

Influencers recognize brand pull,refuse to take a stand in IHB segment
Influencers recognize brand pull,refuse to take a stand in IHB segment

Influencer’s Interaction with
Builders
• Builders have a technical knowledge,
• Not much difference in brand’s quality
• A 2-3 rupee per bag amounts to a considerable saving in
overall project
• Will not take kindly non-availability since this would lead to
delays in project

Price & Availability Critical
Price & Availability Critical

Brand Personality: Brand C

INFLUENCERS
•Modern, Confident Celebrity
•UP TO DATE WITH THE LATEST
•KNOWS HIS MIND- WILL DEFINITELY PROGRESS
•Doesn’t need us, we don’t need him either
•DOES NOT MIX WITH EVERYBODY, DOES NOT LET US IN
•PERSONALLY A STRANGER
•LIVING IN A FARMHOUSE- ISOLATED
•Self Obsessed :Sonia Gandhi, Shahrukh Khan


Brand Personality: Brand A

INFLUENCERS
•Friendly
• APPROACHABLE, TAKES EVERYBODY ALONG
•MILANSAAR,NO EGO
•Mature, Self Made
•SELF- MADE- WORKED HIS WAY UP
•HAS EXPERIENCE,MATURE
•Veteran, not the first : L..K. Advani


Brand Personality: Brand B

INFLUENCERS
•Respected, Trusted
•PRAISEWORTHY
•MOST RESPECTED,MOST TRUSTED
•Young & Affluent
•IN HIS 30s, RESIDES IN A POSH AREA
•RELIABLE,FULFILS A PROMISE
•Not a Bum Chum
•SOMEWHAT EGOISTIC


Brand Personality: Brand D

INFLUENCERS
•Down to Earth
•HUMBLE
•STRAIGHT- NO PRETENSIONS
•Has Potential
• PROGRESSIVE
•IMPROVING
•HAS POTENTIAL


RETAILER’S POINT OF VIEW ON
THE BRANDS


Customer Profile

• All classes- 1 bag to 500 bags
• Come through business/ personal contacts
• IHB : Small construction work
• Contractors :Big work for IHB, Builders


Stocking Pattern
• Cannot over-stock cement
 Requires go-down space
 Unlike bricks/sand, cement needs shelter
• Stock as and when we require
 Big companies can reach us by evening if we order in the
morning
• Purchasing strategy ,key to success
 Route of purchase
 Certain brands allow for diversion of non-trade material into trade
segment
 Type of brands
 Mini plant brands allow for credit. The money generated is used to
pay advance for big brands
 Two companies/sister outfits stocking competitive brands

Purchasing Strategy key to Profitability
Purchasing Strategy key to Profitability

Brand Pull
• Most customers know their mind.
• If they want a brand that I don’t stock
 Contact somebody /sister company who stocks the brand
demanded
• Demand of brand of cement varies by area
 Pockets existing due to earlier strong network of dealers
• Builder generally perceived to want the cheapest brand

Recognize the criticality of brand pull
Recognize the criticality of brand pull

Margins
• Keeping the investment in mind; can’t settle for less than Rs.
5 as margin
• Actual margins are in other building material; not in cement
 Cement like a loss leader.Pulls other material along with it
 Margins in building material up to 25%
• Price fluctuations
 Cannot avail full benefits of any scheme.Price fluctuations
& policies lead to confusion. Feel cheated


On Distributors/Promoters
• Brand B stands out, but only just
 Brand B waala zyaada aate hain….structural engineer aate
hain…customer impress hota hai
• No perceived differences in behaviour of distributors of
different brands.
• Distributor perceived as company’s man
• Cat & Mouse game with distributor
 Sometimes they win,sometimes we win

No love lost for Distributor
No love lost for Distributor

Trade ,Non-Trade
• Current system biased towards Non-Trade
• Leads to anti-contractor/builder feelings
 Have no asset, no standing in market; yet get cement at a
cheaper rate
 We pay deposit. They may be fly-by-night operators
• Feel the pressures of meeting targets leads to these practices

Long term relationship with company not rewarded
Long term relationship with company not rewarded

Stocking brands
• No brand can pressurize us to stock just theirs except Brand B
 We stock others but not on the counter
 If Brand C says, why stocked this… we say…oh this is of our
friend…he did not have space…just for today
• Exclusive Dealership of a brand is not liked
 Have to chase targets
 Binds us without any benefits
 One of the respondents stocking 8 brands- without

dealership of any one brand. Is very happy.
• RAJASTHAN- GUJARAT BRANDS
 Rajasthan brands are lesser quality,lower priced
 Have limited targets in Gujarat- not too interfering

Exclusive relationship, a loss making proposition
Exclusive relationship, a loss making proposition


RETAILERS
INFLUENCERS
•Young & Robot Like
•Modern, Confident Celebrity • FORMAL, DISTANT, BUSINESS LIKE
•UP TO DATE WITH THE LATEST •Healthy & Stout
•KNOWS HIS MIND- WILL DEFINITELY PROGRESS •HEALTHY,STOUT EXTERIOR- TIRED INTERIOR
(SURRENDERED TO BIRLA)
•One Sided Relationship
•NOT A BENEFICIAL RELATIONSHIP
•PERSONALLY A STRANGER •HAVE TO SNATCH YOUR RIGHT



INFLUENCERS
RETAILERS
•Friendly
•Mature & Elderly
•MILANSAAR,NO EGO •SAMAJHDAAR,52 YEARS, LIKE AN ELDER FAMILY
•CAN RELATE TO HIM LIKE A GRANDSON
•Out of Touch with Times
•HAS EXPERIENCE,MATURE •LISTEN TO HIM BUT DO NOT IMPLEMENT
•IS NOT VALUED ANYMORE (KADAR NAHIN)
•Veteran, never the first : L..K. Advani •HAS LOST TOUCH OF OUR REALITY
•FEEL CANT RELY ON HIM



INFLUENCERS
RETAILERS
•PRAISEWORTHY
Young & Strong
•MOST RESPECTED,MOST TRUSTED •20-25; EAGERNESS TO WORK IN FUTURE

•Young & Affluent •Reliable
•IN HIS 30s, RESIDES IN A POSH AREA •Beneficial Relationship
•ONE IS LIKELY TO BENEFIT, NEVER LOSE
•Not a Bum Chum
•Higher Status,Not Easy to Approach
•DOMINATES
•ONE NEEDS TO PAY A PRICE FOR MAINTAINING
FRIENDSHIP WITH SOMEBODY HIGHER THAN SELF

Brand Personality: Brand D

INFLUENCERS RETAILERS
•Female, Brand A’s Sibling
•Down to Earth
•SISTER OF Brand A
•HUMBLE
•HAS COME BACK FROM IN-LAWS PLACE
•A Liability on Brand A
•Has Potential
•BURDEN ON Brand A
• PROGRESSIVE
•ALL HER LIFE HAS TAKEN FROM EVERYBODY
•IMPROVING
•NO FUTURE
•HAS POTENTIAL
•WILL AFFECT Brand A NEGATIVELY


IHB POINT OF VIEW ON THE
BRANDS


Views About ‘Cement’
• Construction of house is a high involvement process and a
logistical nightmare
 ‘Pareshaani-bahut kaam; Logon ko, material ko ikaththa
karo’
• For a ‘ghar’, main considerations are:
 Economical use of space
 Should be strong- last more than a lifetime
 More so after the earthquake

• Cement, bricks and steel considered the main things for
construction


Role of Cement
• Cement, considered most important because it’s the binding
agent
 “Pakar banata”
• Cement, unlike Bricks & Steel, provides plethora of choices
 Quite a few brands in the market
 Available in grades
• No compromise on material
• Once in a lifetime decision

No room for compromise. Low Price Sensitivity
No room for compromise. Low Price Sensitivity

Decision Process For Cement
• Cement considered an area where intricacies of how product
works not known
 This considered a handicap
 Further makes people risk-averse
 “how do we know how it sets and makes everything strong..’
 “Just for a house one will not go to a lab to test”
• A lot of consideration- search for information
 Survey amongst those who have already built a house
 “Discussed with a business colleague”
 “Bhai sahab, unhone do mahine pahle hi ghar banaya tha”
 Consult the ‘experts’
 “Architect ya engineer se bhi poochte hain..”

Little knowledge & high involvement makes people risk averse
Little knowledge & high involvement makes people risk averse

Decision Process For Cement
• Most people have already formed an opinion on what is the
best
 Word of mouth, advertising play a key role
 View of others taken just to confirm self view
• A little skeptical of ‘expert’ view
 “Unka to kaam hi yahi hai….Humne to ek baar banana
hai..”
 “Told us to use different grade for roof…walls…i did not”
 Few take the expert advice of ‘choosing amongst the four
brands’ seriously
• The salient brand wins

Own belief about the ‘best cement’ that wins
Own belief about the ‘best cement’ that wins

Decision Process for Cement

• Notion of it being a little expensive is all the more assuring
 “Abhi chaar- paanch rupaye ke liye samjhauta thori
karenge”
• Proximity of shop not an issue
 Home delivery
 Contractor can hunt for the shop
• Retailer’s influence non-existent

Expensive=Reassuring. Availability & Push, not an issue
Expensive=Reassuring. Availability & Push, not an issue

SUMMARY OF BRAND IDENTITY
& POSITIONING


INDIVIDUAL HOUSE BUILDER
•Stands Out,Respected
•MATURE
•GOOD PERSONALITY
•NOT A COMMONER
•Formal Relationship
•NOT MUCH FRIENDLY
•PURELY PROFESSIONAL
•JUST A HI-HELLO FRIEND

RETAILERS
INFLUENCERS
•Young & Robot Like
•Modern, Confident Celebrity • FORMAL, DISTANT, BUSINESS LIKE
•UP TO DATE WITH THE LATEST •Healthy & Stout
•KNOWS HIS MIND- WILL DEFINITELY PROGRESS •HEALTHY,STOUT EXTERIOR- TIRED INTERIOR
(SURRENDERED TO BIRLA)
•One Sided Relationship
•NOT A BENEFICIAL RELATIONSHIP
•PERSONALLY A STRANGER •HAVE TO SNATCH YOUR RIGHT


•Old,Common Man
•Mature,Not Listened to
•SPEAKS THE RIGHT THING- PEOPLE ARE
NOT TRUSTING HIM
•Stranger
•NOT MUCH AFFECTION FOR HIM- DON’T
KNOW IF IT ALSO CARES
•Mutually Indifferent Relationship

INFLUENCERS
RETAILERS
•Friendly
•Mature & Elderly
•MILANSAAR,NO EGO •SAMAJHDAAR,52 YEARS, LIKE AN ELDER FAMILY
•CAN RELATE TO HIM LIKE A GRANDSON
•Out of Touch with Times
•HAS EXPERIENCE,MATURE •LISTEN TO HIM BUT DO NOT IMPLEMENT
•IS NOT VALUED ANYMORE (KADAR NAHIN)
•Veteran, never the first : L..K. Advani •HAS LOST TOUCH OF OUR REALITY
•FEEL CANT RELY ON HIM


• Sumo Wrestler in Thirties
•STRONG,FRIENDLY,HEALTHY
•Bodyguard
•WILL PROTECT US
•Lasting Relationship, Very Reliable
•GIVE ALL TASKS TO HIM; AND BE
CAREFREE
•Good Future
•WILL BE MOST SUCCESSFUL
•BEST WISHES AND AFFECTION

INFLUENCERS
RETAILERS
•PRAISEWORTHY
Young & Strong
•MOST RESPECTED,MOST TRUSTED •20-25; EAGERNESS TO WORK IN FUTURE

•Young & Affluent •Reliable
•IN HIS 30s, RESIDES IN A POSH AREA •Beneficial Relationship
•ONE IS LIKELY TO BENEFIT, NEVER LOSE
•Not a Bum Chum
•Higher Status,Not Easy to Approach
•DOMINATES
•ONE NEEDS TO PAY A PRICE FOR MAINTAINING
FRIENDSHIP WITH SOMEBODY HIGHER THAN SELF

Brand Personality:Brand D
• Confusing Imagery
•OLD- VERY MATURE
•A GIRL –YOUNG, INNOCENT,
•A NEWCOMER
•Brand A Association
•SAME COMPANY AS Brand A

INFLUENCERS RETAILERS
•Female, Brand A’s Sibling
•Down to Earth
•SISTER OF Brand A
•HUMBLE
•HAS COME BACK FROM IN-LAWS PLACE
•A Liability on Brand A
•Has Potential
•BURDEN ON Brand A
• PROGRESSIVE
•ALL HER LIFE HAS TAKEN FROM EVERYBODY
•IMPROVING
•NO FUTURE
•HAS POTENTIAL
•WILL AFFECT Brand A NEGATIVELY


Contact Or Visit

Sarvajeet Chandra
¥ +91 9920803060,sarvajeet@sapphirez.in,
sarvajeetchandra@gmail.com

Visit Us
¥ www.mastersungroup.com
¥ www.facebook.com/strategyexecution


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