Full Case Study on the Marketing Strategy of ACC

ACC Cement, India’s largest cement manufacturer, has a rich history dating back to its founding in Mumbai. Now under the ownership of LafargeHolcim, ACC is a product of several cement companies merging under one powerful brand. While the infrastructure industry remains a steady market, economic fluctuations can impact the cement sector.

This case study will delve into ACC Cement’s marketing strategies, competitive landscape, SWOT analysis, and notable campaigns. We’ll examine how ACC has optimised its marketing mix to drive success.

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About ACC

Source: Google

Founded in 1936, ACC Cement is a leading cement manufacturer in India with a strong commitment to sustainability and innovation. The company is part of the global LafargeHolcim group, expanding its reach and capabilities.

ACC Cement boasts over 17 cement factories and 75 concrete mixing plants across India, employing over 6,700 people. With an annual revenue exceeding $1.6 billion, the company is a major player in the Indian cement industry.

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ACC Cement Case Study – What’s New With the Brand?

• Revenue (2023): Thanks to the brilliantly created marketing strategy of ACC Cement, the company managed to generate a revenue of $3 billion (Source: ACC Cement Annual Report).
• Number of Employees: Over 10,000 employees (Source: ACC Cement Corporate).
• Market Share: 12% of the Indian cement market (Source: Statista).
• Customer Satisfaction: 85% customer satisfaction (Source: J.D. Power).

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1. Business News

As a result of the marketing strategy of ACC Cement, the company reported a 10% increase in revenue, reaching INR 16,000 crores in 2023. This growth is attributed to strong demand in the infrastructure sector and strategic expansion initiatives.

2. Product Launch

ACC recently launched a new eco-friendly cement variant, ‘ACC EcoPact,’ designed to reduce carbon emissions and promote sustainable construction practices.

3. Marketing News

Considering ACC Cement’s marketing strategy, the partnership between the company and renowned architect Hafeez Contractor is an unsurprising one. Through this partnership the company aimed to promote sustainable construction techniques, enhancing brand visibility and credibility in the industry.

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4. Celebrity News

Keeping in line with ACC’s Cement marketing strategy, the company endorsed Bollywood actor Akshay Kumar for its high-profile campaign, highlighting the brand’s strength and reliability.

Buyer Persona

A buyer persona gives a detailed description of ACC Cement’s ideal customer. ACC Cement’s marketing strategy is based on its audience’s motivations, preferences, challenges, and online activities.

Based on the detailed breakdown, it’s no surprise that the marketing strategy of ACC Cement leverages social media platforms like Facebook and YouTube to execute its marketing campaign. Here, the company can feature the elements of architecture and infrastructure development that meet the requirements of ACC Cement’s target audience.

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Marketing Mix: 4Ps Used to Design the Marketing Strategy of ACC Cement

A marketing mix is a blend of strategies used to market a product. ACC Cement has a diverse product range, and its marketing approach includes:

1. Product

Source: acclimited.com

ACC plays a pivotal role in the infrastructure development and cement industry. In the past decades, they have contributed to various ventures in collaboration with the government and other private companies. Being the leading company with a strong market share, it pleases its customers with quality cement. Some of them are:

• Portland cement
• Ready-mix cement
• Bulk cement
• Premium cement

To provide maximum benefits to the consumers, ACC tries to bring innovative products and procurement techniques. All varieties of cement are doing great in the market. They leveraged the world by impressing their customers and investors with their quality products.

2. Price

In line with ACC Cement’s marketing strategy, the company employs a tiered pricing structure based on product type and value. Ready-mixed concrete, offering convenience, commands a premium price compared to the base product, Portland cement. Another category of high-performance cement is priced accordingly to reflect its durability benefits.

To encourage bulk purchases, ACC maintains minimal profit margins. This strategy fosters customer relationships and increases the likelihood of future business through word-of-mouth referrals. Cement is typically packaged in sizes ranging from 280 to 350 INR, with various options to accommodate different customer needs.

ACC values customer feedback and incorporates suggestions to enhance product offerings and overall performance.

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3. Place

Since its inception, ACC has established strong bases all across the country. The headquarters of ACC Cements is in Mumbai with manufacturing locations i.e. around 20 cities. The headquarters is called a ‘cement house’ The cement serves the projects for India and wherever else the cement is exported.

A huge chunk of ACC cement supplies come from Jamul, Kymore, Sindri, Vizag, Wadi, and New Wadi Plants. It reaches out to customers directly through outlets and by franchisee methods. Consumers can now buy cement online as they have improved their digital presence in the recent past. The enterprise aims to be easily accessible to everyone. Hence, they are making themselves available on almost every front.

4. Promotion

Source: Google

As part of the marketing strategy of ACC Cement, the company uses many media channels to market itself. Due to history and brand status, customers are pulled rather than sales being pushed. Also, relations with builders help gain a lot of promotion for the brand. Customers buy cement only if they have full trust in the brand as cement is a safety factor. Word of Mouth has been an important promotional factor for ACC.

ACC has that very powerful TV Ad, where the slogans ‘Cementing Relationships’ attract eyes and make people trust the brand. The qualitative approach to serving customers has helped this company to keep it floating.

SWOT Analysis

SWOT Analysis examines how environmental factors interact with an organisation’s strategic capabilities relative to its competitors. The significance of SWOT is highlighted by the effectiveness of the strategies it produces. If a SWOT element does not lead to actionable strategies, it lacks importance.

1. Strengths of ACC

• It has a good image and brand loyalty among consumers.
• Service is good.
• ‘Dhalai Karne Ke Liye’ people ask for ACC.
• Perceived to be of very superior quality cement when compared to others.
• They have the same price prevailing for wholesale at dealers/stockiest retailers’ end.

2. Weaknesses of ACC

• The competitors are doing much promotional activity rather than ACC Limited that’s why it is facing more problems in the selling of a product in the market.
• Lack of awareness program for consumers.

3. Opportunities for ACC

• People are opting for more stable structures and intensive use of cement is taking place, even the government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets.
• As the Indian core industry is also growing at a rate of nearly 10% per annum, it is having a good future.
• Foreign direct investment in the infrastructure sector going to increase in the coming years, which will increase the demand for cement.
• Roads are undergoing a transformation process through which the traditional method of road building will be replaced by modern concrete roads.

4. Threats to ACC

• A large number of players in the cement industry makes it more competitive for ACC to carefully price its product and at the same time satisfy its dealers and customers.
• Companies like Jaypee Cement, Prism Cement, and Birla Samrat are capturing a significant portion of the market.
• Due to India’s exponential growth, many new international cement companies are expected in the coming years which will bring a tide of change and can start a price war.
• The emergence of small players in this market may increase the competition and start malpractices, and heavy discounts to retailers.

Marketing Strategy of ACC Cement

Segmentation, Targeting, and Positioning in the Marketing Strategy

ACC Cement analyses regional variations in customer needs to tailor its offerings accordingly. By understanding different customer segments and their specific requirements, the company can develop targeted marketing strategies.

ACC employs a differentiated targeting approach, focusing on distinct product categories and customer segments. This allows the company to tailor its ACC cement’s marketing efforts and product offerings to meet the needs of various customer groups effectively.

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Digital Marketing Strategy of ACC Cement

Below is a list of components that are employed when formulating the marketing strategy of ACC Cement:

1. SEO Strategy

ACC Cement focuses on optimising its website with relevant keywords (terms used to search information online), such as ‘acc cement advertisement’ and ‘acc cement marketing strategy,’ to improve search engine rankings and drive organic traffic (unpaid visits to a website).

People across the country, especially the ones residing in Delhi and Faridabad want to explore SEO (an important component of digital marketing). This has led them to search for information using the keywords, ‘digital marketing courses in delhi’ and ‘digital marketing courses in faridabad’.

2. SMM Strategy

As part of ACC Cement’s marketing strategy, the company actively engage with their audience on social media platforms, using targeted content and interactive posts to build a strong online presence.

3. E-commerce Strategy

ACC Cement has enhanced its e-commerce platform, providing a seamless online shopping experience with detailed product information and easy navigation.

4. Mobile App

The ACC Cement app offers users a convenient way to browse products, locate dealers, and access construction tips, enhancing customer engagement.

5. Influence Marketing Strategy

Keeping in line with ACC Cement’s marketing strategy, the company collaborates with influencers and industry experts. This is done to reach a broader audience, creating authentic content that resonates with potential customers.

Marketing and Advertising Campaigns Designed by ACC Cement’s Marketing Strategy

Marketing campaigns advertise products across various media, including television, radio, print, and digital platforms. It not only promotes the product but also sends a meaningful message to connect with the customer. ACC Cement’s marketing campaigns are quite relatable which helps it to build a strong bond with the consumers.

1. Kare Kuch Kamaal

ACC Cement has successfully transformed the perception of cement and homebuilding from a mundane task to a joyous occasion. Their TV commercial beautifully captures the excitement of a young couple embarking on their homebuilding journey. Considering the objective of ACC Cement’s marketing campaign, this ad emphasises how ACC’s expertise can turn a potentially stressful process into a positive and fulfilling experience.

2. Paani Se No Haani

As part of ACC Cement’s marketing strategy, the company has launched a humorous campaign for its Gold Water Shield product, satirizing overly dramatic advertising. The campaign emphasises the product’s benefits without resorting to exaggerated claims.

The dynamic market requires constant adaptation. To address potential challenges, let’s summarise the key issues identified in our analysis. Understanding these pain points will help ACC refine its strategies and achieve greater success.

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The Marketing Strategy of ACC Cement That Failed

As part of ACC Cements’ marketing strategy, the company ran a ‘Strength in Nature’ campaign which aimed to showcase the durability and strength of ACC Cement by highlighting its use in various natural and rugged landscapes. The campaign included visually striking advertisements intended to emphasise the product’s reliability in extreme conditions.

Issue: In 2020, ACC Cement launched a campaign that faced backlash due to perceived insensitivity towards environmental concerns.

Backlash: The ad depicted extensive use of cement in natural landscapes, which was criticised for promoting unsustainable practices. The issue led to public outrage and negative media coverage.

Response: ACC Cement responded by promptly withdrawing the campaign and issuing a public apology, reaffirming its commitment to sustainability and responsible advertising.

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Top Competitors

ACC Cement is not the only company that dominates this industry. Many other players can have a huge impact on ACC Cement’s marketing strategy:

• UltraTech Cement: A leading cement manufacturer in India, known for its wide range of high-quality products and strong market presence.
• Ambuja Cement: Renowned for its sustainable practices and innovative product offerings, Ambuja Cement is a key player in the Indian cement industry.
• Shree Cement: Shree Cement is known for its efficient production processes and commitment to sustainability, making it a strong competitor in the market.
• Dalmia Bharat Cement: Dalmia Bharat Cement offers a diverse range of cement products and focuses on innovation and sustainability in its operations.
• JK Cement: JK Cement is a well-established brand in India, known for its high-quality products and extensive distribution network.

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