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Marketing Environment - Aditya Birla Cements: Presentation I BY, Charles G

This document provides an overview of the marketing environment for Aditya Birla Cement. It discusses the key factors in Porter's framework, including high rivalry among existing cement companies, attractiveness of the industry to new entrants, lack of substitutes for cement, buyers having little bargaining power, and suppliers being dependent on government controls. A PESTLE analysis covers political, economic, social, technological, and environmental factors. Finally, a SWOT analysis identifies strengths, weaknesses, opportunities and threats for the cement industry.

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Bala Sundar
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129 views

Marketing Environment - Aditya Birla Cements: Presentation I BY, Charles G

This document provides an overview of the marketing environment for Aditya Birla Cement. It discusses the key factors in Porter's framework, including high rivalry among existing cement companies, attractiveness of the industry to new entrants, lack of substitutes for cement, buyers having little bargaining power, and suppliers being dependent on government controls. A PESTLE analysis covers political, economic, social, technological, and environmental factors. Finally, a SWOT analysis identifies strengths, weaknesses, opportunities and threats for the cement industry.

Uploaded by

Bala Sundar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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MARKETING ENVIRONMENT - ADITYA

BIRLA CEMENTS
PRESENTATION I
BY,
CHARLES G.
INTRODUCTION
• Incorporated on August 2000 as L & T cements limited.
• A US $ 29 billion corporation – A Fortune 500 company.
• Anchored by an extra ordinary force of 1,30,000 employees.
• Has an annual production capacity of 48.8 million tonnes.
• It manufactures three types of cement namely Ordinary Portland
cement, Portland Blast Furnace Slag Cement and Portland pozzalana
cement.
MARKETING ENVIRONMENT

Based on Porter’s Framework they are :

• Rivalry Among Existing Players


• Threat Of New Entrants
• Substitutes
• Buyers
• Suppliers
COMPETITION

• Very high rivalry among the existing players.


• The Biggest players are
 ACC Limited.
 Grasim Cement .
 Ambuja Cement .
 Ultratech Cements .
NEW ENTRANTS

• Existing companies have raised capacity to handle competition.


• Government have issued new budget favoring high investment into
infrastructure in the forthcoming year.
• As a result the cement industry has become highly attractive for emerging
players.
SUBSTITUTE PRODUCTS

• Cement manufacturing is a highly polluting industry.


• Hence lot of alternatives including timber has been considered.
• However only cement can provide the necessary strength to the building.
• So there are really no great substitutes for cement.
BUYERS

• Generally cement producers are more powerful than buyers.


• Direct marketing has greatly reduced the role of middleman.
• Small time buyers have not been given due importance.
• Hence buyers don’t have much bargaining power.
SUPPLIERS

• The basic raw material are limestone, sand, shale, clay and iron ore.
• All the raw material are under government’s control
• Companies are dependent on government.
• There are no one so called suppliers of cement in the country.
PESTLE ANALYSIS - POLITICAL

• Prices are usually controlled by coal rates, power and railway tariffs, freight,
royalty and cess on Limestone.
• Government controls all the above said prices.
• Government are also one of the highest consumers of cement in the country.
• Lots of state governments offer a lot of exemptions for the cement industry.
ECONOMICAL

• Currently the industry is on an a boom in India.


• Despite recession the export is expected to pick up in the coming year.
• Lots of government projects are expected to be completed this year.
• A number of cement plants are also expected to be opened in the country .
SOCIAL

• Cement industry in India is divided into:


 Organized Sector.
 Unorganized Sector.
• Organized Sector – Leading cement producing units.
• Unorganized sector – Regional and Local producing units.
• People usually prefer branded products.
TECHNOLOGICAL

• From mining to production the entire process is dependent on technology.


• Government trying to acquire new technologies form Japan.
• At present 93% of the total production capacity in the industry is based on
the modern and environment friendly Dry process technology.
SWOT ANALYSIS - STRENGTHS

• Strong Brand Image.


• Better Quality.
• Long Relationship With Customer.
• Maintains A World Class Infrastructure.
• Market Share.
• Strong Financial Banking.
• Large Distribution Network.
WEAKNESSES

• Delay In Supply.
• Inconsistency Of Supply.
• Insufficient Manpower.
OPPURTUNITIES

• It can develop new marketing areas.


• It can sign more MOU’s with government regarding supply of cement for
government usage.
• Maintain the position of competition in the market.
THREATS

• Entry Of Global Players.


• Political Threats.
• The impact of foreign currency fluctuations and interest rates.
CONCLUSION

• Consumers definitely go for the brand image.


• Products delivered should also have a high consistency in supply.
• Good quality products are usually preferred than cheap ones.
• Finally the profit level must be higher to motivate the dealers.

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