Launch of New Cement Brand in Existing Market

DOI : http://dx.doi.org/10.13005/bbra/1384

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The cement production in India exceeds the demand and that is how it has become the buyer’s market. Thus producers have to develop extensive marketing strategies to penetrate into the market including in the areas far away from the production plant. The author here has presented a case study where two new plants were built in slumping cement market; one by his employer’s existing company and the other one was by their competitor. It was important for the company to penetrate and increase the market share to sell the additional capacity created. For this, they had to not only market the cement in their immediate vicinity but also they had to go and penetrate in far flung areas. The options available were less and therefore the marketing team had to be active, alert and work on new strategies. Recognising the fact, the company decided to create a fresh marketing team and a fresh methodology, probably never tried before. This is a case which resembles the red ocean strategy, where the new company’s marketing team came into direct competition with owner’s existing company as well as the competitors. The existing company was already enjoying the lion share in the market. The new company’s product came into a greater demand and jointly the two companies have a tough time to the competitors. Later, both the marketing teams were merged and a product with new brand name was launched. This is a success story of a marketing strategy and which is presented in the form of a case study by the author.

Penetrate; Marketing strategy; Marketing team; Competition