04-12-2012, 05:03 PM
A COMPREHENSIVE REPORT ON THE MARKETING MIX AND STRATEGIES OF LAFARGE
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INTRODUCTION
Lafarge is a French industrial company specializing in four major products: cement, construction aggregates, and concrete and gypsum wallboard. It currently is the world's largest cement manufacturer. Lafarge became the first multinational to enter India's cement industry. The group entered India by launching its brand in the eastern part of the country on November 1, 1999 through the acquisition route. Its first acquisition was Tata Steel’s two cement plant at Jojobera and Sonadih with a capacity of 1.7 million tons outbidding ACC, which is India’s 2nd largest cement company. The French company dished out 15% more than the next highest bidder as a premium for entering in a very attractive market like India. Since then, these two plants’ combined capacity has been doubled to 3.4 million tons.
Two years later in 2001, Lafarge added one more cement plant to its name by acquiring Raymond Cement Works located in Arasmeta, near Bilaspur in Chattisgarh. This help Lafarge emerge as one of the most important player in East Indian market. At present the total cement production capacity of Lafarge in the Indian market currently stands at around 7.75 million tons & the Group wants to double its capacity by next five years.
Lafarge entered the Ready-mix Concrete business by acquiring L&T's Ready Mix Concrete (RMC) business for a value of Rs.1480 Crores in the year 2008. L&T was one of the first entrants into the RMC business in India and has steadily grown this business over the last 10 years. L&T Concrete enjoys a leadership position with a current market share of about 25%. It operates 66 highly efficient RMC plants across the country covering all metros and major Tier I and Tier II cities, and has a production capacity of around 4.5 million cubic meters per annum. Lafarge is committed to the Indian market and has firm plans to expand its capacity in India.
Lafarge cement is available through a large dealer network which is called the Trade, & it is also available through the non- trade which is nothing but the Institutional sales which are done directly by the company itself without any 3rd party in between. Mostly the non-trade form is used when there is Bulk purchase of the material. Lafarge has a very robust Dealer network throughout eastern India - in the states of West Bengal, Jharkhand, Bihar, Chattisgarh, Orissa and North-East States.
Lafarge has a presence in more than 76 countries all over the world. Since it journey began it has stood strong with its focus on quality and social commitment to the country its steps in. Lafarge growth has always been driven by the technological expertise along with its constant emphasis of employee care, environmental protection and a respect for the local culture it operates. Its core values are safety, ethical practices and long term commitment to sustainable development.
A COMPREHENSIVE REPORT ON LAFARGE INDIA
OBJECTIVE OF THE PROJECT
The objectives of this project are as follows:
To understand the various activities and products being offered by the Lafarge
To understand and analyse the marketing mix of Lafarge new product, Aadhaar
To understand the competitive benefits and the marketing strategies being used by Lafarge
To understand the organizational buying behaviour in the Indian cement industry
INDIAN CEMENT INDUSTRY
OVERVIEW OF THE INDIAN CEMENT INDUSTRY
India is the second-largest cement market in the world, accounting for 7-8 per cent of global cement production.
India exports cement to more than 30 countries.
Cement production of one million tonnes is estimated to generate downstream employment for 50,000 people.
Although India is one of the largest cement markets in the world, per capita consumption of cement is just around 170 kg, which is very low in comparison to the global average consumption of about 430 kg.
Demand for cement in India is cyclical; barring short-term disruptions, it grows largely in tandem with economic growth.