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Effectiveness of the World Cup Campaign on Lafarge Concreto

Executive Summary

Primarily the study aims to give the reader an insight into the Indian Cement industry. The project aims to profile and understand the effectiveness of the World Cup campaign of Lafarge Concreto cement. The first phase will be to know the competitors of different brand of PSC cement in eastern India and analysis of their promotion by secondary research.

The second phase will be the analysis of the World Cup promotional activities of different brands with celebrities. And then the analysis of the World Cup campaign of Lafarge Concreto with Dhoni is to be done.

The third phase will be the comparison of the World Cup campaign of different brands/product with Lafarge Concreto’s World Cup campaign that will lead to some new findings which will help to formulate new ideas.

The fourth phase is to know the effectiveness of the World Cup campaign of Lafarge with Dhoni with the help of a survey i.e. how customers are associating Dhoni as a brand ambassador of Lafarge Concreto, and their feedback about the product, the survey will include meeting dealers and the customers with questionnaire.

The final phase will be the analysis of the survey, based on the suggestions and feedback from the customers, ideas will be formulated to improve the promotion which will help to create a strategy that will stay for longer time in future.

A Stint at an Advertising Agency- Ogilvy

An advertisement agency is a service provider. It provides services to its clients. The primary service of an ad agency is to create a goal oriented and effective advertisement and promotional campaign which aim at putting across the message of the company positively in the eyes of its target audience. In the face of stiff competition every company wants to have an edge over its competitors. Advertising agencies therefore also do the work of research for their clients. This helps the company to take informed decisions and the advertising agencies to create advertisements which break through the clutter and are attention grabbing, persuasive and unique.

The main functions of an advertising agency are:

  • Understanding the company, its products and target audience
  • Doing research for better understanding
  • Planning an advertising campaign
  • Making strategies
  • Creating the advertisement and other promotional campaign
  • Measuring success of the campaign

About Ogilvy

Ogilvy & Matheris an international advertising ,marketing and public relations agency based i nManhattan and owned by the WPP Group. The company operates 497 offices in 125 countries. It was founded in the year 1948 by David Ogilvy as “Hewitt, Ogilvy, Benson, & Mather” in Manhattan. Rochelle Lazarus is the chairman andMiles Young is the CEO. Ogilvy opened its first agency in India in the year 1928. It was the first advertising agency in India. Ogilvy has launched many advertisements which have been very successful in all these years. The company in India operates with offices located in all the major cities. Piyush Pandey is the Executive Chairman and the Creative Director at Ogilvy & Mather, South Asia.


The focus areas include advertising, direct marketing, public relations and activation. Ogilvy Activation includes services in the non-traditional area of advertising – Ogilvy Landscapes, Ogilvy Outreach, Ogilvy Live and Ogilvy Signscapes which together with the focused services consolidate offerings to clients. O&M India is O&M International’s fifth largest operation in terms of profits, with the US ranking first and European nations occupying the other three positions. It is ranked India’s number one agency by Brand Equity survey on leadership, creative ability, investment in employees, client servicing, most influential people and great creative directors.

Awards & Recognitions

O&M has bagged several awards for print advertisements, TV ads and case study presentations. O&M was awarded the Grand Effie Gold and Gold for service on Hutch, a campaign that won awards at the Abbies too; Gold Effiefor corporate advertising for the Cadbury Crisis Management. O&M bagged three Bronze Lions at the Cannes Festival 2004 for two Public Health & Safety campaigns for Hutch and one for Concern India Foundation; a Gold & two Silvers at the Emvies, 1st Runner Up for Asia’s ‘Office of the Year’ 2004 by Media magazine, an award that spans 360 degree communication and HR. From Silver Pencil to Asian Brand Marketing Effectiveness awards for campaigns that include Advertising, PR, CSR, Interactive and Direct Marketing, O&M has received recognition for its stature as India’s No. 1 communications agency. O&M Mumbai was ranked 8th hottest shop in Asia by Campaign Brief Asia in 2002. Every business unit in O&M has received recognition in the domestic and overseas markets. Ogilvy won three Gold, five Silver and five Bronze stacking up to 120 Points that won Ogilvy the title of EFFIE Agency of the Year 2009. Vodafone won EFFIE Client of the year in 2009.Ogilvy Kolkata won the Agency of the year in 2010 at Annual Calcutta Advertising Club awards for creative excellence. Ogilvy Kolkata won many award in ABBY awards in the year 2010. The categories in which O&M Kolkata won metals are 5 silvers for the Lafarge and Concreto campaigns (category: Home/ décor/ lifestyle), 4 silvers for the Kolkata TV print campaign (category: Media), 1 Gold for Children’s Little Theatre radio spot (category Radio, services).

List of Clients

  • Vodafone Kolkata Circle
  • Vodafone Rest of West Bengal
  • Vodafone Orissa circle
  • Vodafone Bihar circle
  • Lafarge Concreto
  • Lafarge Duragaurd
  • Tata Steel
  • Star Jalsa
  • Coal India
  • Aque Duct PVC pipes
  • Tea board of India

Organizatonal Structure of Ogilvy

Operational Flow at Ogilvy

At Ogilvy, the client servicing executives prepare and pitch a new product or service to a client. It is very important that the pitch is well structured, client centric and adds value to the company. Once the client appoints the advertising agency then the budgets are negotiated.

For every new campaign the client briefs the client servicing executives about their requirements. The client servicing executives studies the brief in details and figures out the core need behind the requirement. According to the requirement there is negotiation with the client about the estimated amount which the client will be billed for the campaign.

On the basis of the client’s requirement and the detailed research by the executive, brief is given to the creative department about the campaign. After understanding the brief the creative department reverts back with the idea for the campaign. If the idea matches with the client’s brief, the client servicing executive asks the creative department to proceed forward. The executives interact regularly with the client through emails and phone calls. After a lot of interaction with the client and the executives, the creative department prepares required creative as per the idea which was finalized. The client servicing executives gets an approval for the creative from the clients.

After the executive finalizes the requirement all the creative which are finalized for the campaign are given to the studio operators. The studio operators do the adaptation of the creative in terms of different size requirement, change in the copy etc. They also make sure that all the mandatory guidelines given by the brands are incorporated in the promotional material. The studio operators do a lot of adaptations according to the region in which the campaign is to be released. This may require using the copy of the advertisement in various languages this is done by the translators. The translator translates the copy according to the local language. The final layouts are shared with the client for their approval, in form of JPEGs. The client reverts back and changes if any are made by the studio operators. Then the final advertisement is released for printing.

Apart from the print ad client may require radio advertisements, television commercial, audio visual or any other innovative material for promotions. The client servicing interacts with the respective vendors and gets the work done.


Indian Cement Industry

An Overview

  1. Indian cement industry dates back to 1914 – first unit was set-up at Porbandar, with a capacity of 1000 tones. [2]
  2. India manufactures 251.2 Million Tones of cement per year.
  3. India’s per capita cement consumption is only 156 kilograms against China’s 600 kilograms. [4]
  4. Cement sales primarily through a distribution channel.
  5. Ready mix concrete a relatively nascent market in India.

Installed Capacity

Indian Cement industry is comprised of 148 large cement plants with around 46 member companies. The installed capacity of these large cement plants is estimated to be 219.17 million tones during 2009-10 (as on March 2009).There are 95 large cement plants with capacity of million tones and above and around 1, 40,000 manpower is employed under these plants (one MnT cement generates downstream employment to 50,000 persons). Also, there are 365 mini and white cement plants with an installed capacity of 11.10 million tones (P). [3]


Cement Production & Despatches (P)

Description Jan-11 Dec-10 Jan-10 2010-11 2009-10
Cement Production 14.52 13.59 14.65 136.51 130.85
Cement Despatches 14.47 13.60 14.59 135.56 130.09

Source: Cement Manufacturers’ Association

Cement production during April to January 2010-11 was 136.51 million tones as compared to 130.85 million tones during the same period for the year 2009-10. Despatches were estimated at 135.56 million tones during April to January 2010-11 whereas during the same period for the year 2009-10, it stood at 130.09 million tones. [3]

Cement sector is characterized by the following

  1. Units concentrated near raw material sources or markets
  2. Power intensive
  3. High freight costs
  4. Small value chain
  5. Regional variation and volatility in prices and margins
  6. High debt levels
  7. Regional distribution of demand
  8. Seasonality of demand and cyclicality of the industry
  9. High entry barriers

Consumer Demographics & Buying Patterns of Indian Consumers

The per capita consumption of cement in India is very low, as compared with the developed economies and the overall world average per capita cement consumption. The per capita consumption of cement in India is even less than that in Africa, a relatively underdeveloped continent. Over the past decade, the per capita cement consumption of cement has increased in most states, except Chandigarh, where it has declined by 7 %.

Mechanics of Distribution Channels of Sector

Companies invariably hire carrying & forwarding agents or transport cements to own or government warehouses either via roadway or railways. Incase of exports, cement reaches the nearest port via roadways or railways and is then transferred to the importing country.

Domestically, from warehouses the cement is transported to the dealers/distributors and in turn to sub dealers who finally sell it to the end users. There may or may not be physical ownership of goods.

In the second case, dealers and sub dealers take order from buyers and place it to the companies, co ordinate and monitor the timely dispatch of said orders, transportation of goods and final delivery.

Distributor network in cement industry is highly dominating and companies are compelled to hire as they do not really have that rapport and touch with the end consumer of their product. Apart, from this, the distributors have storage facilities as well which help control well in the entire supply chain as they are the ones who bring orders and therefore are directly responsible for the business that a manufacturer would do.

Demand drivers

Infrastructure & construction sector the major demand drivers. Some demand determinants

  • Economic growth
  • Industrial activity
  • Real estate business
  • Construction activity
  • Investments in the core sector

Factors and causes behind the successful flourishing of the cement industries in India

  1. Technological change: The government and the industries are upgrading the quality and the technology that are used in the process of production.
  2. New investment are in process that are sure to make a change in whole processing and the output of cement
  3. There are host of companies are merging together to make their capacity and the produce big and this would lead to a greater development in the cement production.
  4. The real estate market is much optimistic and hence this helps in the growth and the enhancement in the field of cement production and investments.
  5. Companies and the investors are spending more on the infrastructure of this sector.
  6. Various national programs are taken in like National Rural Employment Guarantee, Urban Renewal Mission (JNNURM) and Indira Aawas Yojana.

Different Types of Cement

There are different varieties of cement based on different compositions according to specific end uses, namely Ordinary Portland Cement, Portland Pozolona Cement, Portland Blast Furnace Slag Cement, White Cement and Specialized Cement. The basic difference lies in the percentage of clinker used. [5]

1. Ordinary Portland cement (OPC):

OPC, popularly known as grey cement

Clinker – 95%

Gypsum – 5%

Other materials

White cement is a variation of OPC and is used for decorative purposes like rendering of walls, flooring etc.

It contains a very low proportion of iron oxide. The applications are cover dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.

2. Portland Pozolona Cement (PPC):

Portland pozzolana cement is Ordinary Portland Cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or Siliceous earths), either together or separately. Portland clinker is ground with Gypsum and Pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete.

Clinker – 80%

Pozzolana – 15%

Gypsum – 5%

It is cheaply manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient.

It has a lower heat of hydration, which helps in preventing cracks.

3. Portland Blast Furnace Slag Cement (PBFSC):

Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated blast-furnace slag, a nonmetallic product consisting essentially of Silicates and Aluminum-silicates of Calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter color, better concrete workability, easier finish ability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.

It has a heat of hydration even lower than PPC and is generally used in construction of dams and similar massive constructions.

Clinker – 45%

Blast furnace slag – 50%

Gypsum – 5%

4. White Cement:

White Portland cement has essentially the same properties as gray cement, except for color, which is a very important quality control issue in the industry. It is manufactured using fuel oil (instead of coal) and with iron oxide content below 0.4% to ensure whiteness. Special cooling technique is used. It is used to enhance aesthetic value, in tiles and for flooring. White cement is much more expensive than grey cement.

5. Specialized Cement:

Oil Well Cement: is made from clinker with special additives to prevent any porosity.
Rapid Hardening Portland cement: It is similar to OPC, except that it is ground much finer, so that on casting, the compressible strength increases rapidly.

5 Source.

Major players in cement industry

1) Associated Cement Companies Ltd (ACC)

ACC Limited is India’s foremost cement manufacturer with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology.[5]

ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement and Ready Mix Concrete.

Ordinary Portland Cements: 43 Grade Cement (OPC 43 Grade), 53 Grade Cement

Blended Cements: Fly-ash based Portland Pozzolana Cement, Portland Slag Cement

Cement plant


Capacity (MTPA)

Bargarh Cement Works Orissa 1.20
Chaibasa Cement Works Jharkhand 0.87
Chanda Cement Works Maharashtra 1.00
Damodar Cement Works West Bengal 0.53
Gagal Cement Works Himachal Pradesh 4.40
Jamul Cement Works Chhattisgarh 1.58
Kymore Cement Works Madhya Pradesh 2.20
Kudithini Cement Works Karnataka 1.10
Lakheri Cement Works Rajasthan 1.50
Madukkarai Cement Works Tamil Nadu 1.18
Sindri Cement Works Jharkhand 0.91
Wadi Cement Works Karnataka 2.59
Tikaria Cement Grinding and Packing Plant Uttar Pradesh 2.31

Table No.1- ACC plants

2) Birla Corp

The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) – Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) – Birla Cement Works & Chanderia Cement Works, Durgapur (W.B.) – Durgapur Cement Works & Durga Hitech Cement – and one at Raebareli (U.P.)-Raebareli Cement Works. They manufacture varieties of cement:

Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC), Fly Ash – based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement. [8]

Cement Plants


Capacity (Mills.Ts)

Satna Cement Works / Birla Vikas Cement Madhya Pradesh 1.73
Birla Cement Works / Chanderia Cement Works Rajasthan 2.50
Durgapur Cement Works / Durga Hitech Cement West Bengal 1.60
Raebareli Cement Works Uttar Pradesh 0.63

Table No.2- Birla cement plants

3) UltraTech

UltraTech Cement Limited has an annual capacity of 52 million tones. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC). The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals — four in India and one in Sri Lanka.

UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East.

UltraTech’s subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East Investments Limited. [11]

Cement Plants


Awarpur Cement Works Maharashtra
Hirmi Cement Works Chhatisgarh
Gujarat Cement Works Gujarat
A.P.Cement Works Andhra Pradesh
Jafrabad Works (NCCL) Gujarat
West Bengal Cement Works West Bengal
Magdalla Works (NCCL) Gujarat
Ratnagiri Works (NCCL) Maharashtra
Arakkonam Cement Works Tamil Nadu
Jharsuguda Cement Works Orissa

Table No.3- Ultratech cement plants

The company has an annual capacity of 48.8 million tonnes, and manufactures and markets ordinary portland cement, portland blast furnace slag cement and portland pozzalana cement.

4) Ambuja Cements Ltd

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat Ambuja Cements Ltd., was founded in 1983. The Company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements Ltd. ACL has grown dynamically over the past decade. Its current cement capacity is about 25 million tones.

The Company has five integrated cement manufacturing plants and eight cement grinding units across the country. ACL enjoys a reputation of being one of the most efficient cement manufacturers in the world. Its environment protection measures are on par with the finest in the country. It is one of the most profitable and innovative cement companies in India. [9]

Cement Plants


Bhatinda Punjab
Ambuja Cement (Junagadh) Gujarat
Bhatapara Chhatisgarh
Farakka West Bengal

Table No.4- Ambuja cement plants

5) Jaiprakash Associates Limited

Jaypee group is the 3rd largest cement producer in the country. The groups cement facilities are located in the Satna Cluster (U.P), which has one of the highest cement production growth rates in India.

The group produces special blend of Portland Pozzolana Cement under the brand name ‘Jaypee Cement’ (PPC). Its Cement Division currently operates modern, computerized process control cement plants with an aggregate capacity of 21.30 MnTPA. The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be 37.55 MnTPA by FY12 (expected) with Captive Thermal Power Plants totaling 702MW.[7]

Cement Plants


Rewa Plant and Bela Plant Madhya Pradesh
Ayodhya Grinding Operational unit and Cement Blending unit Uttar Pradesh
Cement Grinding Unit Haryana
Dalla cement factory and Chunar cement factory Uttar Pradesh
Gujarat Cement Plant Gujarat

Table No.5- Jaypee cement plants

6) Binani Cement

Binani Cement Limited is the flagship subsidiary of Binani Industries Limited (BIL), representing the Braj Binani Group. The cement business started operations in 1997, in Sirohi District, Rajasthan.

The Company’s product portfolio includes Ordinary Portland Cement, Pozzolona Portland Cement and Ground Granulated Blast furnace Slag (GGBFS). [10]

Binani Cement Ltd. produces cement of two grades:

  • Grade 43
  • Grade 53
  • PPC (Portland Pozzolana Cement)

The Binani Cement Plant is in Pindwara, District – Sirohi, Rajasthan




About Lafarge Cement

Lafarge is the leader in building materials; with a turnover of $15.88 billion in 2009. It has been in operation since way back in history in 1833; when it started as a limestone mining company. But as far as the Indian market goes, Lafarge actually began operations in 1999. And then began a slew of expansion plans in the Indian market; combined with a number of insightful, and at times, path breaking marketing initiatives.
Lafarge currently has three cement plants in India: two integrated plants in the state of Chhattisgarh and a grinding station in Jharkhand. Total cement production capacity of Lafarge in the Indian market currently stands at around 5.5 million tons. Lafarge India produces different types of cements like Portland Slag Cement, Portland Pozzolana Cement. The company is a leading cement player in Eastern India. Its brands Lafarge Cement and Lafarge Concreto Cement enjoy high brand equity here and are amongst the highest priced brands. Lafarge is committed to the Indian market and has firm plans to expand its capacity in India.

Lafarge enjoys high brand equity through its different brands; Lafarge Concreto, Lafarge Duragard and Lafarge Cement

Lafarge Concreto

Lafarge Concreto has been launched by Lafarge to meet the need of homebuilders in India for truly premium all-purpose cement. Concreto was developed in Lafarge’s state-of-the art laboratories, which are extensively networked with its Central Research Institute in France. The company has leveraged its combined know-how of more than 170 years and its experience across 75 countries to develop this unique product. Concreto is a specially engineered, premium quality ‘all purpose cement’. It can be used for varied applications like roofing, foundations, beams, columns, plastering and brickwork. It is specially formulated to provide a denser concrete mix than normal cements.

Concreto is characterized by:

  • High ultimate strength due to the addition of highly reactive silica containing more than 95% glass content.
  • Enhanced durability due to optimum pore refinement and consequently denser concrete matrix this improves the impermeability of the concrete.
  • Exceptionally high resistance to chemical attack (sulphates and acids).
  • Protects reinforcement from corrosion.
  • Reduction of structural cracks due to lower heat of hydration than ordinary cements.
  • Low heat of hydration and higher resistance against alkali-reactive aggregates.

Cement Plants

Lafarge currently hasfour cement plants in India: two integrated plants in the state of Chhattisgarh,onegrinding station each in Jharkhand & West Bengal. Total cement production capacity of Lafarge in the Indian market currently stands at around 6.5 million tons.

Cement Plants


Sonadih Chhattisgarh
Jojobera Jharkhand
Arasmeta Chhattisgarh
Mejia West Bengal

Table No.6- Lafarge cement plants


Cement is a bulk commodity so the industry is mainly product based. Segmentation is based on its various products i.e. Portland pozzolona cement, quick hardening cement and ready mix cement.

Business to business (B2B)

Cement industry deals with real estate, construction companies and other institution.

For example – Real estate sector

Business to consumer (B2C)

Cement industry deals with individual customers.

For example – Individual home builders

Industry focuses on relationship approach, so as to build and maintain trust centered relationship. The cement Industry is mostly done through mass marketing, as it doesn’t have any customized product for any specific group of customers.

Marketing Mix

The 4 P’s of marketing mix comprises of:

  1. Product
  2. Place
  3. Price
  4. Promotion

Figure No.2 Marketing Mix

1) Product

Cement industry has various ranges of products.

For example:



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