ACC Cement

Sales Strategy:
Reaching the customers directly: Many cement companies have adopted the practice of reaching
the customer directly along with the normal practice of interaction with the regular trade channel.
This is helping companies in understanding the buying process and preferences of the customer
and accordingly allocate their efforts and resources. Commenting on the need to open a direct
communication channel with the end consumer.

Product analysis: Cement inherently is a commodity product, but ready mix concrete (RMC) is a
highly appreciated product. ACC concrete currently contributes just 7% of sales to ACC. Going
forward this is expected to increase to the global average of around 30-40% of ACC revenues
coming from RMC business. This also have a positive impact on NPM and ROIC.

Expansion Plans: Coal prices remains the significant rick to the profitability of ACC business.
As a way of De-risking its business ACC is actively scouting for coal blocks in India and outside
India through its subsidiary ACC minerals Resources Ltd. The subsidiary already has a Joint
Venture agreement with Madhya Pradesh State Mining Corporation Limited for development of
coal blocks.

Promotion (Advertising): ACC Cement uses many media channels to market itself. Due to
history and brand status, customers are pulled to the brand rather than sales being pushed. Also
relations with builders help gain a lot of promotion for the brand. Cement is something that will
determine not just the durability of homes but also a major safety factor. Hence, customers buy it
only if they have full trust on the brand. Hence, word of mouth being the most crucial promotional
tactic as people will only believe people who have experience rather than buying it cause a
celebrity is telling them so. To enhance brand recognition and recall, ACC also takes help of TV
ads. The most famous tagline had been ‘Cement se Badhkar’ where it tried o encapsulate the
relationship between cement and safety and homeliness. Other below the line ads like print media
and wall posters are also used. Hence this completes the marketing mix of ACC Cement.

Geographical Presence: ACC has a pan India presence with large exposure in capacity exposure
in capacity terms to southern and northern India.

Distribution Strategy: To reach each & every part of the nation ACC Cement tying up with
builders, Government organizations and is closely working with its subsidiaries such as ACC
Mineral Resources Limited (AMRL), Bulk Cement Corporation (India) Limited (BCCI), Lucky
Minmat Limited, National Limestone Company Private Limited and Singhania Minerals Private
Limited. It has a network of more than 10,000 dealerships points supported by 8000+company’s
workforce for pioneering the distribution of Ready Mix Concrete and Bulk Cement in the industry.