holcim cement bangladesh ltd

1. Introduction

Analysis of Consumer Behavior And Marketing Strategies.

Background of the Study:

The research report titled as “Holcim cement Bangladesh Ltd.” is originated from the partial requirement of the course Consumer Behavior, MkT-410. It is actually a student–practical-learning experience. Where the students learn the application of quantitative, qualitative evaluation, facts and observation and report writing in Consumer Behavior point of view as well. It took nearly one week to gather relevant information and prepare the report and has been submitted on 28 t h November 2007.

Objective of the Study:This report seeks overall information on the questionnaire survey, which was carried in several retail shops, outlets. It is an attempt to draw the true picture of the Holcim cement in Bangladesh and also to know the Consumer Behavior towards Holcim cement.

Basically there are two objectives behind doing this report and they are as follows:

The first and the foremost objective are to fulfill the partial requirement of the course Consumer Behavior (MKT 410).

The second objective is to measure consumer behavior towards Holcim cement.

Scope:In our survey we like to focus on consumer perception and Holcim’s performance that are up to the mark or not. We have to go several outlets, retail shops to find out consumer belief about Holcim cement. The report focuses on the consumer’s belief, perception, lifestyle etc. and currently what consumers are thinking about the Holcim Cement I also look for the benefit that we are getting from it is proportionate in terms of our money.

Methodology:

Primary Data sources: We will collect the primary data sources from the several outlets, retail shops. That is why we have contacted with the dealers, shopkeepers, who have given me data.

Secondary Data sources: I would also talk to the people who engaged with construction, engineer, workers and other types of people who would help me in this regard.

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2. History of Holcim Cement


Limitation:Although survey is one of the best methods to find out problems and ways to solve them, some problems may be posed during the process. Due to some limitations, there can be some erroneous results. Although we tried our level best to eliminate error, our research did have some limitations. These are:

Data: Primary and secondary data obtained from sources could have been inaccurate. Important information has been concealed.

Improper communication: Sometimes respondents are not capable of answering question because they cannot recollect or have never given attention to what they do and why. Respondents may have answered the question without knowing correct answer in order to appear smart, or they may have try to help me by giving pleasing answer.

Time: Time is an important issue in report writing. As we have been given a specific deadline for submission we have to work hard to perform all the research.

Lack of educates information: There as lack of sufficient primary and secondary data.

The history of Holcim is too big to be told. So, we are describing it as much as possible. We divided the whole lifetime of the company into two parts. One is INTRODUCTION PERIOD and the other is EXPANTION PERIOD. Within ninety years Holcim has grown from humble beginnings in a Swiss village to become one of the world’s leading cement companies. The development through the years of 1912-2001 is briefly stated below.

INTRODUCTION PERIOD (1912-1970)

1912 Holcim was founded in 1912 in the village of Holderbank, Canton Aargau. From an early stage it became clear that the domestic market could offer only limited opportunities for expansion.

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1920 By the early 1920’s the company began investing in cement businesses in other European countries. This trend was quickly followed by investments in Egypt, Lebanon and South Africa.

1945 In the years following 1945, and particularly in the Fifties and Sixties, a network of holdings began to develop in North and Latin America.

1970 In the 1970’s, ventures in the emerging markets of the Asia-Pacific began.

EXPANSION PERIOD (1980-2001)

1980 In the 1980’s, Holcim continued to expand into new markets, including Eastern Europe. A greater focus on aggregates and ready-mixed concrete production strengthened the company’s position as a vertically integrated market leader.

1990 A strong focus on core business activities in cement, concrete and aggregates characterized Holcim activities during the 1990’s. Continuing professional development programs for employees, coupled with a best practices policy, ensured challenges were met with creative solutions and company performance was enhanced. Entry into new markets, particularly within Asia, expanded opportunities for the Group.

2000 The name of the Group was changed from “Holderbank Financier Glaris Ltd” to “Holcim Ltd.” in May 2001. Today, the international presence of Holcim consists of a balanced mix of companies in industrialized and emerging markets.

2001 The company began its operations in Bangladesh in 2001 by acquiring the Hyundai cement factory in Meghnaghat in Dhaka.

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.

4

Launched in the village of Holderbank

Developed Networks

in North and Latin

America

Name changed From Holderbank

To Holcim

Ventures in The emerging

Markets of the Asia-Pacific

Began operation In Bangladesh

Strong focus on Core business

Activities

Continued to Expand into New markets

Began investmentIn Europe,

Egypt,Lebanon and

1912

1920

1945

1970

1980

1990

2000

2001

Mission Statement of the company

3. Product Profile

Development through Years1912 - 2001


The Holcim Group is one of the largest cement companies in the world. Their vision is to provide foundations for society's future. Their mission is to be the world's most respected and attractive company in the industry -creating value for all their stakeholders.

Their goals are to:

Continually set the highest standards of customer satisfaction in the industry. Secure the strongest competitive position in the markets. Partner with suppliers to deliver value-for-cost procurement for the Group and their customers.

Be recognized as an employer of first choice. Empower the employees and integrate them fully into the global network. Selectively grow their worldwide presence of companies. Demonstrate their commitment to sustainable development. Be acknowledged as a valued and trusted partner in their community. Be the most recommended stock in the industry.

Holcim group makes cement and cement related products. In Bangladesh the company focuses on the cement business. The product that I focused on is cement. Before discussing anything else, first of all we must know what cement is.

Cement is a building material made by grinding calcined limestone and clay to a fine powder. It acts as the binding agent when mixed with sand, gravel or crushed stone and water to make concrete.

The main raw materials of cement are Clinker and Gypsum. Clinker is gathered by burning limestone. Both of them create Ordinary Portland Cement (OPC). To get other types of cement various types of materials have to be added to it and their concentration varies according to cement type. There are standards for the concentration of various materials in cement. One is EUROPEAN

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STANDARD and the other is AMERICAN STANDARD (ASTM). The standards are given below –

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Figure: International Standard Of Cement Document.

Holcim Bangladesh Ltd. mainly concentrates on the Portland Cement (C-150 in ASTM) and Portland Fly Ash Cement (C-595 IP ev. MS, A, MH).

Portland Cement (C-150 in ASTM) includes only clinkers and gypsum and may be some minor additional materials.Portland Fly Ash Cement (C-595 IP ev. MS, A, MH) includes clinkers, gypsum, fly ash and may be some minor additional materials.

Packaging strategy:

They will try to an increased product depth. They should try delivering different quantities, something that has never been tried before. We are proposing that Holcim starts producing 75Kg bag along with the present 50Kg bag. There are customers with a high demand. For a buyer buying 100 bags of Holcim, it is more convenient and reasonable to buy 75Kg bags instead of 50Kg bags. It will reduce the consumer’s cost along with Holcim’s too. Holcim will have to deal with less wastage of bag materials while packaging. It is also beneficial for the corporate organizations as their need and demand for cements is very high.

Marketing Strategy:

At present the company is in a growth stage in the product life cycle as the sales of company in the past years suggest. After its introduction in Bangladesh in 2001 the company is still experiencing high fluctuating market. Holcim is now in a “question mark” stage in the BCG Growth-Share Matrix. At this point the company must give attention to its market strategy as the strategy it use will determine its future in the cement industry of Bangladesh. For its new marketing plan that we are proposing the company should use the Market Penetration Strategy as it will be dealing with its existing products and existing market. Here the price will be high, but closer to the competitor’s price. This will have a psychological effect on the consumers as they tend to think that more the price, better the product. The company will be highly benefited from it with increasing market share.

After a while when the company has a very huge market share, may be the company can afford to reduce the price by even a bigger amount and be the market leader. But the price should be still high from others.

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Marketing Tactics


As the expected product life cycle suggests, Holcim is looking for high growth rate in cement market. With better efforts and increasing sales in result, Holcim will be hopefully the market leader.

Uncontrollable Factors:

Product strategyThe company must assure quality in all the levels of production and distribution. The company has to concentrate on the Total Quality Management (TQM) all the way from production to the distribution in the hands of the consumers. But the company must not overlook the fact of cost regarding TQM. The company will have to meet the best quality possible at all levels that is covered by the present cost with skilled employees. As skilled employers are hard to find in our country, Holcim can train the employees so that production capacity of each worker may increase. Company must also keep an eye on its profit scale while doing all these things. In the short run profit may seem to decline, but in the long run this training may prove to be fruitful.

They will try to increase the product depth and offer variety of products to the customers of the company. It will attract more and more new customers towards the company.

Pricing Strategy:

Most customers are highly sensitive about price of the product they use. They tend to think that if the price is more the product will be better. But if the price is too high then the customers cannot afford it. So, the price has to be high but it has to be closer to the competitors. If this

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high price can gain the trust of the consumer the company can afford to lower the price with increase in sales volume. The company should have a long-term plan to reduce cost and then reduce price later. So, they have to use a psychological pricing approach for every product with a little bit reduction.

Promotion Strategy:

We, by our observation and information, found out that Holcim’s Public Relation activities are none. So, a lot of potential buyers are not even familiar with Holcim’s name. So, it can increase Public Relation Activities through sponsoring various events, issuing massages for public interest.

Holcim can send its representatives in different corporate organization’s office to let them know about the quality of Holcim and benefits of buying Holcim. They will inform the corporate organizations that the new packaging is mainly for them.

To persuade the consumers Holcim can appoint different people from construction related businesses (like brick, sand, rod etc) as Premium Dealer. This will help Holcim and also the people getting appointed. Those people can pass on information about the quality of Holcim while they are selling their usual products. Holcim will have new premium dealers and those dealers will also act as a media to the consumers

Holcim’s advertising methods are not sufficient enough for the market. The reach of its advertising is very low. Holcim should publicize adds more often in the news paper. Advertising positioning should such that waste is minimum and the circulation is higher. The frequency of advertising should also be higher.

Distribution strategy :

I observed that Holcim’s management is relatively weaker. Its main strength is its Premium Dealers. So, we are proposing to increase its Premium Dealer in different areas; especially in Rajshahi and Khulna. Number of Premium Dealers in that region is 3 and 1 respectively, but the market demand is too big for these 4 premium dealers to control. So, increase in premium dealer in these two areas is a must for the company.

Holcim can initiate a contractual agreement with retailers. They should proposing an association of retailers, which will do the work of District Dealers (can be useful in certain places like Rajshahi). This will reduce the retail price, which will be beneficial for the consumers as well as to Holcim.

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Rajhshahi, Biggest Target Potential Market Khulna, second largest potential market Dhaka, potential profit increase

Push and Pull Strategy:

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Opportunities for Holcim to have more sales

Holcim

Premium Dealer

District Dealer

Retailer

Consumer Consumer

Retailer

Retailer’s Association

Premium Dealer

Holcim

Retailer Retailer

Existing Market Channel for personal

house builders

Proposed Market Channel for personal

house builders

4. Profile of the Target Market


Uncontrollable Factors: The uncontrollable factors of Holcim refer to the competitors, raw material price, transportation cost, political situation of the country and economic decisions taken by government.

Competitors:The main competitors of Holcim are Shah Cement and Scan Cement. The prices of Holcim’s competitors are much lower than Holcim.

Raw materials price:Holcim imports its raw materials from abroad. So, a change in the exchange rate can affect Holcim very much.

Transportation cost:Holcim uses different transportation companies for the delivery of its goods. So, Holcim has to cope up with the transportation charge it faces in the market.

Political situation of the country:In Bangladesh the political situation is very unstable. Strikes hamper production and result sometimes even in a loss for the company.

Economic decisions taken by government:Government may take different steps like tax rate change etc. for betterment of the country. This will affect Holcim like all others.

Holcim Bangladesh Ltd. Mainly targets the customers who are very much brand loyal. Holcim prefers to work with them because they believe in the company and they will always support the company. Holcim also prefers those customers who pay their dues on time. Most of the buyers of our country are not that much regular when it comes to paying bills. So, the company prefers to deal with this sentient customer.

For the cement business in Bangladesh Holcim customers are two types. The first is corporate organizations like real estate companies, big construction firms, government construction departments etc. And the second is personal house builders. Majority of Holcim’s customer is in the personal house builder market.

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All the reasons for choosing the personal house builders are given below –

Cash payment Brand loyalty Respond to marketing mix quicker than corporate organizations More in number compare to the corporate organizations

Figure: percentage of sale of all Division

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7%Corporate

organizations

93%Personal House

Builders

Percent


Demographic Factor:

Age: Age is a big factor in the sense of cement consumption because cement is the concern of adult people to some extend. Holcim is not so popular in Bangladesh and they have mainly targeted Personal House Builders and Corporate level customer. From our findings cement consumption rate is high in the age level of 20 years to 35, lowest in the range is less than 20 years. But if we consider as a whole we find that 40% consumer age with in the range between 20 year to 35 year.

Figure: percentage of Age of the Sample.

Gender:

In Bangladesh cement is mostly used by male but we have satisfactory female consumed as well. As Bangladesh is a male dominated country. So this kind of decisions has taken by the male usually. The respondents we surveyed were most of them are male which 86%. Only 14% respondent are women.

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Age

19%

40%

20%

21%

less then 20y

20-35y

35-50y

More then 50y

Male Female

Question: 2

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Pe

rce

nt

86.0%

14.0%

Sex


Social Factor:

Average Monthly Income and Occupation:

Monthly income is one of the important matters to understand consumer behavior. Form our findings 45% is the highest who has 20000-30000 and 16% who has less than 10000 – 20000 incomes per month. There are19 % people who have 30000-40000 income per month which is satisfactory result. In case future occupation 36 of the people wants to be Business, still they are engage in this area. 35% are being private job holder.

Figure: Percentage of Income and Future plan of the sample people.

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Income

9%

16%

45%

19%

11%

less then 10000

10000-20000

20000-30000

30000-40000

More then 40000

14

35

33

810

0%10%20%30%40%50%60%70%80%90%

100%

No of Participants

1

Preferable Job

Other

Teacher

Private Serv

Business

Govt.service

5. External Influences on the Purchase of Holcim


Culture is perhaps the most pervasive influence on the consumer behavior. Culture is the distinctive way of life of a people, their complete design for living, thinking. Cultural factors play a very important role for purchasing any kind of product. With out mix and match with the culture a product will not be abed to survive in the market.

.Relevant cultural values

The important values that affect the purchase of Holcim cement are:

Status: Status is one of the cultural values that effect the purchasing of Holcim. As its price is very high and the quality is high so we can understand that Holcim cement user where belonging to.

Brand awareness: As cement is not use frequently for the general people. So it is must that give the Holcim name in a way that when ever consumer thinking about buying cement first name has to be in mind is Holcim cement.

Nonverbal Communication:The Holcim does not follow proper strategy in our country. The company has a little communication activities through there distribution. The company usually uses two colors. Red and black. Red is a symbol of chemical factor and black reflect the strong. So, after comical mixing its make a strong construction.

Purchase of Holcim:

Affection is import for cement purchase. It is the knowledge about a particular product. 53% people buy Holcim cement for its brand image which is the highest and 8% people buy Holcim cement for its status which is the lowest.

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Advice when buy cement:For the high involvement product advice is often taken. Advice is usually taken from the expert, engineer, salesman and any known person who have the knowledge about cement. Form our survey 63% respondent take advice from the engineer which is the highest and 8% respondent take advice from the sales man which is the lowest.

Figure: people chose advice from difference way.

Easy solidification

Low price Brand image Available Status

People Purchase Holcim For

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Per

cen

t

10.0% 10.0%

53.0%

19.0%

8.0%

Favorites TV program

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Friends Engineer Own decision Salesman

Question: 8

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Pe

rc

en

t

15.0%

63.0%

14.0%

8.0%

Advice

6. Implication for Consumer Behavior


6.1 perception consists of three stages:

ExposureAttentionInterpretation

1. Exposure:

Occurs when a stimulus, such as a TV advertisement of HOLCIM, comes within the range of an individual’s sensory receptor nerves.

Billboard: Some billboard is shown in few areas of Dhaka city, Rajshahi city, Chittagong city and rural places just to give a reminder about the Holcim cement.Street cabinet: through the street cabinet Holcim is giving exposure to the people.Colorful flyer or poster: In the cement shop, over the road Holcim cement flyer and poster is used for exposure.

2. Attention: Occurs when the stimulus activates one or more sensory receptor nerves, and the resulting sensations go to the brain for processing.Is extremely selective.Ads should be designed in such a way so as to capture attention effectively.Always occurs in the context of the situation. The same individual may devote different levels of attention to the same stimulus in different situations.Therefore, attention is determined by three factors- the stimulus, the individual, and the situation.

Stimulus factors:Are physical characteristics of the stimulus itself.The stimulus factors that influence capturing the consumer’s attention to Holcim cement and billboard are-

Size and intensity:

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Billboard is the best example of this stimulus factor. Holcim’s billboards are usually 12*15 feet ads. This large stimuli help in gaining and holding the viewer’s attention.

Color and movement:Holcim logo is an eye-catching color. The colors primary used in the logo are:Red over Black – Position: Billboard is usually placed in the road side where the natural beauty is getting a great attention.Format: Holcim messages are presented so as to make people aware that this cement is good for longer construction.

Individual factors:The exposure is such that they arouse an interest or need on the part of the consumer to try out the product. Needs and interest are the primary individual characteristics that influence attention. Individuals seek out and examine information relevant to their current needs and interest. Thus, when a person tends to buy a cement, he needs to get attracted by the cement properly positioned in the street cabinet and which cement quality are good and high solidification.

Situational factors:When consumer go to cement shop which cement are available in the shop. Those cements are available then feel more attention those type of cement. And they buy it. Without cement shop cements are not available any where.

3. Interpretation:

Interpretation is the assignment of meaning to sensations.The entire message, including the context in which it occurs, influences interpretation, as does the situation in which the individual finds himself.

Cognitive Interpretation:When Holcim cement was first introduced to consumers, most probably they focused this cement quality is high. With further experience and information, many consumers have gained detailed knowledge about this cement.

Affective Interpretation:Emotional or feeling response triggered by a stimulus, such as the Holcim billboard.When consumers see the billboard then they feel this cement is good from other cements.

Individual characteristics Holcim charge comparatively high price than other brand. Company say for this price, their product quality is very good, solidification is high and durability is also high than other companies cements. Consumer believe that holcim cement is good than other cement, that’s why he charge high price.

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Situational Characteristics:A variety of situational characteristics influence interpretation. Temporary characteristics of the individual

Stimulus Characteristics:

6.2 Learning:

Learning is the term used to describe the processes by which memory and behavior are changed as a result of conscious and unconscious information processing.Consumer behavior is largely learned behavior.Learning about Holcim cements is basically a low involvement Learning situation.

Conditioning

Classical conditioning:Seeing Holcim billboard where a construction engineer [conditional stimulus-CS] elicits a positive emotion [conditioned response- CR]

After seeing a billboard what is learned is generally not information but emotion or an affective response. If and when this affective response leads to learning about the product or leads to a product trail, we have this situation:

Information

Billboard Liking

Trial

Figure: Affective response leads to learning about the product.

Operant Conditioning:

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Reinforcement plays a much larger role in operant conditioning than it does in classical conditioning. Since no automatic stimulus-response relationship is involved, the subject must first be induced to engage in the desired behavior. Then, this behavior must be reinforced.

In order to influence consumer to consume Holcim cement, the company a discount for bulk purchase, like for 20 packs cement consumer get 200tk off and for 50 packs they can get transportation cost free and extra 1 pack cement. Mainly Holcim Company influences to corporate level consumers.Those need large volume cement. And they provide transportation cost, discount, etc.

Cognitive Learning:Cognitive Learning encompasses all the mental activities of humans as they work to solve problems or cope with situations. Consumers have not more knowledge about cement, they have few knowledge. For purchasing cement company use Iconic Rote type of learning.

The strength of learning:The strength of learning is heavily influienced by the following factors:

ImportanceReinforcementRepetation

Generally learning comes about more rapidly and lasts longerThe more important the material to be learned (caffeine content of Holcim and repurchasing power).the more reinforcement (comfort) received during the consumption/ learning process and,the greater the number of stimulus repetition that occurs.

6.3 Memory

There are two type of memory

Short term memoryLong term memory

Short term memory:

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Maintenance rehearsal:Repetation of watching billboards, ads, postering of Holcim from time to time help ensure that Holcim stays in the forefront of an individuals memory.

Long term Memory

Semantic memory:Holcim is categorized as a traditional, impulsive cement

Episodic Memeory:Consumer are able to ready to themselves the first time they chose Holcim, whether it was long distance or unfavourable situation.

Schematic Memeory:Consumer is able to recall a web of various associations with the name Holcim.

Holcim

Refreshing Mature Traditional

Style

Success Friends

Figure: A Partical Schematic Memory of Holcim

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7. Brand Image and Product Positioning


Brand Image:Brand image is a very important factor in market. If image is good then sales will must increase, but if it is negative then it will be opposite.

Product Positioning Positioning is the act of designing of the company’s offering and image to occupy a distinctive in the mind of the target market. When some one thinks about Holcim, They know that it possesses a high quality and high price. And always serves the world class Pizza. Anywhere in the world customer can get the same quality and same taste. Holcim target consumer is upper class people. They are always looking high quality product and high quality service. And Holcim always provides it. Consumer believes it, because Holcim creates their position in consumers mind.

Perceptual Map:

Brand Equity:

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Low Quality

High Price Low Price

High Quality

HOLCIM ■

8. Attitude of the people show Toward People


Brand Equity is the value consumers assign to a brand above and beyond the functional characteristic of the productBrand Equity is nearly synonymous with the reputation on Holcim

7.4 Brand Personality This is characteristic that Holcim imbibes in it and which helps the consumers identify them with the following characteristic of Holcim

TraditionalStatusHigh Performance.

There are some people who strongly prefer the Holcim Cement. They think Holcim Cement Means high status, quick solidification, and durable construction. They believe Holcim is better for them. We know Holcim Cement usually targate for Personal House Builders and Corporate organizations.

Measuring of the Cognitive Component:

The cognative component consists of the belief that the people have towards difference categories of brand. To measure the cognative component towards Holcim we asked consumer about four brand cement and thare ideal cement in a semantic scale. To fully evaluate it we also asked to place there beliefs about products of Holcim . we thus compared Holcim with Shah cement . the position of this average on the scale , the weighted of each factor and final results are given below.

Holcim Shah

Price Status SolidificationQ Solidi Durable Price Status Solidification Q Solidi Durable

SUM 366 505 509 496 511 398 418 437 446 440Average 3.66 5.05 5.09 4.96 5.11 3.98 4.18 4.37 4.46 4.4 A-I -0.63 0.24 -0.28 -0.4 -0.64 -0.31 -0.63 -1 -0.9 -1.35 I A-I I 0.63 0.24 0.28 0.4 0.64 0.31 0.63 1 0.9 1.35

w 0.2 0.1 0.2 0.2 0.3 0.2 0.1 0.2 0.2 0.3Wt Diff 0.126 0.024 0.056 0.08 0.192 0.062 0.063 0.2 0.18 0.405

0.478 0.91

IdealPrice Status Solidification Q Solidi Durable

Sum 429 481 537 536 575Average 4.29 4.81 5.37 5.36 5.75 23


7 6 5 4 3 2 1

Low Price ____ ____ ____ ____ ____ ____ ____ High price.High Status ____ ____ ____ ____ ____ ____ ____ Low statusHigh solidification ____ ____ ____ ____ ____ ____ ____ Low solidificationQuick solidification ____ ____ ____ ____ ____ ____ ____ Late solidificationDurable Construction ___ ____ ____ ____ ____ ____ ____ Not Durable Construction

Given a weight of 20% is Price, Status 10%, Solidification 20%, Quick Solidification and 30% Durable.Attitude towards Holcim: 0.478

7 6 5 4 3 2 1Low Price ____ ____ ____ ____ ____ ____ ____ High price.High Status ____ ____ ____ ____ ____ ____ ____ Low statusHigh solidification ____ ____ ____ ____ ____ ____ ____ Low solidificationQuick solidification ____ ____ ____ ____ ____ ____ ____ Late solidificationDurable Construction ___ ____ ____ ____ ____ ____ ____ Not Durable

Given a weight of 20% is Price, Status 10%, Solidification 20%, Quick Solidification and 30% Durable. Attitude towards Shah Cement: 0.91

As we know that the closer an attitudes index calculated in this manner is to zero, the better result. In our result we find an attitude towards Holcim is 0.478 and Shah Cement is 0.91. So we can say people has more favourable attitude towards Holcim then Shah Cement.

Measurement of affective component:

The affective component reflects the consumer’s perception or the emotional reaction towards Holcim. To measure the affective component a Likert scale was use. The scale along with total result is shown below.

Strong Agree

( 4 )

Never Agree Disagree

( 2 )

StrongAgree ( 5 )

Nor Disagree ( 3 )

Disagree ( 1 )

Holcim is available 13 26 38 17 6

Solidification of Cement is important

48 23 19 6 4

Holcim is over priced

36 11 30 14 9

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I like Holcim 21 39 26 8 6

Figure: People perception about Holcim.

As we randomly make our survey so we get different category people, category in terms of income level, occupation and age. As a result of there feeling towards Holcim is pretty much difference that’s why our table shows that different results. Like 38 percent people never agree nor disagree that Holcim is available ,and 48 percent people strong agree that Solidification of Cement is important.

Measurement of Behavioral component:

The behavioural component tries to predict the actual behaviour of consumer that is in this case whether they are buying Holcim, and if not, what they are buying. This was measured by asking two questions

I will buy _________________ Cement in future.the last time I was purchase or use Cement _________________

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Agrement with the statement

0

100

200

300

400

500

1

types

tota

l va

lue

Holcim is available

Solidification of cementis important

Holcim is over price

I like Holcim


in future I will buy Holcim Cement _______________________

Figure: People attitude about Holcim Cement.

26

20

27

17

26

10

0

5

10

15

20

25

30

No of Participate

1

Name of the Company

Last Time Use/ Purchase

Recently

6 th Month

1 Y ago

Mor than 1 Y

Other

22

43

28

70

0

10

20

30

40

50

No of Participats

1

Behaviour

I will buy Holcim

Definitely

Probably

Might by

Probably Will not buy

Definitely not

22

43

28

70

0

10

20

30

40

50

No of Participats

1

Behaviour

I will buy Holcim

Definitely

Probably

Might by

Probably Will not buy

Definitely not

9. How can Holcim change their attitudes____?


From the chart we can see that most of the respondents have a good image about the Holcim Brand. So in this data reflect about the satisfaction of the people. Most of them in future they will buy Holcim Cement .

Holcim can change their target markets affective, cognitive and behavioral component.

changing the cognitive

Holcim can change the consumers belief towards their products by changing beliefs sift importance and add beliefs.

Change beliefs

This strategy involves shifting beliefs about the brand. People have a belief that Holcim is good quality ahd high price. As a result they sometimes purchase products from other brands. So they can show people that why they are less in style or they can shift the belief that Holcim is very much committed value.

Add beliefs

Another approach to changing the component of an attitude is to add new beliefs to the consumer’s belief structure. Holcim is made for active people not for passive.

shifting importance

Most consumers consider some product attributes to be more important than others. Most of the people consider status and price is the main indicators to purchase of cigarette. The sometime did not consider cement quality and Zipsam by it. As a result, Holcim may try to shift their beliefs from price and status to good quality and they contain 64% zipsam which is more preferable.

Mere exposure

Holcim is a High involvement product and price is very much affordable to their target consumer. They can use mere exposure for positive feeling in the consumers mind. As we know that above the line promotion is not possible now so, Holcim has to go for over the line promotion for mere exposure like posters, flyers, street caninet, cash box inner cult which make appositive emotion toward HOLCIM.

Changing the behavioral component

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10. Holcim s congruence with the emotion, lifestyle and self-

concept o the consumers


Behavior, specifically purchase or use behavior may precede the development of cognition and effect. Changing behavior prior to changing affect or cognition is based primarily on operant conditioning. Holcim did it though given discount for bulk purchase.

Eliciting positive emotions: we previously stated that, our survey showed that the target markets see themselves as very discipline, very traditional, thrifty and rational. They are also delicate, mature and colorless.

Matching self –concept: As we know that Holcim did some TV ad or newspaper ad they should go for other promotional activity to build up positive emotions in the consumer mind. From our survey we find that the recall rate is good for Holcim, people did not forget the Holcim. So Holcim should go for personal promotion, trade promotion and social welfare to build a positive emotion.

Is Holcim projecting their self-concept?.

. Holcim is more or less projecting the self-concept of the target market. The image of Holcim is matched with the target markets self concept. Holcim always try to promotion itself as good and traditional product. And that is going with the self-concept of the people. Holcims target group is the middle income group and corporate level group. This group of people is very much rational and thrifty. That is why Holcim more or less projecting the self-concept of target market.

Fitting into lifestyle

Lifestyle need to match with Holcim . In our country the people who are the major target of Holcim according to the vels system can be classified as “fulfill & believer and maker” who are the practical people. If go deeper than that, we can find that these group of people follow the established routine, hard worker and enjoy their life after completing their job.

Dose Holcim fit into their lifestyle:

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Holcim mainly targeted the middle to upper middle income people. The target markets lifestyle is more rational, traditional and thrifty. As result Holcim fits into their lifestyle. From our survey we find this result.

7 6 5 4 3 2 1Organized _____ _____ _____ ____ _____ _____ _____ UnorganizedRational _____ _____ _____ _____ _____ _____ _____ EmotionalYouthful _____ _____ _____ _____ _____ _____ _____ MatureFormal _____ _____ _____ _____ _____ _____ _____ InformalTraditional _____ _____ _____ _____ _____ _____ _____ ChangingColorfully _____ _____ _____ _____ _____ _____ _____ ColorlessEconomical _____ _____ _____ _____ _____ _____ _____ Expensive Reliable _____ _____ _____ _____ _____ _____ _____ Unreliable Social _____ _____ _____ _____ _____ _____ _____ UnsocialFriendly _____ _____ _____ _____ _____ _____ _____ Congregative

Incase of life style we evaluate the peoples about their own perception. In hare we use 7 scale for measurements about there own Jazzmen and the result is found in 100 sample

5.63 is average for Organized-Unorganize. Its means they are quite Organize. 4.99 is average for Rational-Emotional. Its means they are Neutral in nature4.75 is average for Youthful-Mature. Its means they are Neutral in nature 4.99 is average for Formal-Informal. Its means they are Neutral in nature

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Chart of Lifestyle

563

499

475

491

421504

464

523

539

550

Organized-Unorganized Rational -Emotional

Youthful - Mature Formal - Informal

Traditional-Changing Colourful-Colourless

Ecomomical-Expensive Reliable-Unreliable

Sosal-Unsosl Friendly-Congregative

11. Motivating customer-Holcim vs competitors


5.5 is average for Friendly-Congregative. Its means they are quite friendly.

The scenario of the market:

Holcim started its journey in the year 1912 and in Bangladesh 2001. That time it was only the cigarette company in the market. After that so many new brands come into the market. And as a result, competitor in the cement industry is increasing day by day. There are so many low status brands exist in the market but he leader are the Holcim and star. From our survey we find thay Holcim is one more step ahead than star. Holcim produce more solidification product, and long durable construction but other may take it as opportunity.

motives in the case of buying

The basic motive to buy cement varies man to man. Some people buy for its brand loyalty, some for price, some for availability and some for style and quality. When we ask question to the people that, the most of the cement are giving the same products but why people purchase Holcim , answer is they prefer the quality, some prefer the brand loyalty, some prefer the availability, some prefer the price and some prefer the enhance personality.

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12. DRAWBACKS AND SUGGESTED PROMOTIONAL STRATEGIES____


The main drawback of HOLCIM is the distribution and price. From our survey it is clearly found that people are not really comfortable with the distribution and price.

Drawback in Promotion

Street cabinet Holcim has very few number of street cabinets, as a proper exposure did not happened.

Trade promotion If the company followed the push strategy they must have conducting some trade promotion to enhance the sales but in reality holcim did not do such kind of thing. Like give timing to their distributor or make a trip with their distributor.

Suggested Promotional Activity

Sponsor Sponsorship makes a positive image toward the company. Holcim can take it as

opportunity of making sponsorship of different events like in the time of cricket, football etc tournament they can give a sponsor.

PositioningThrough the marketing strategy Holcim can position their product in the consumer mind. Holcim’s target group is the middle income group and corporate group, but people consider Holcim as a upper class cement and high income group people. Because people think Holcim is not available every where.

Trade allowance Holcim have to give some trade allowance to their distributor, retailer in order that

distributor, retailer will become generous toward Holcim.

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POS DisplaysHolcim should try to increase their POS Displays. They should also try to obtain the shelf space of their retail outlets.

Gift HamperHolcim can provide gift hamper to their loyal customer, distributor, and retailer so that liking will automatically generated toward Holcim.

Social welfare activitiesAnother effective strategy for any company that is social welfare, through the social wellbeing company can easily developed their image which may enhance the liking of the consumers. So Holcim can take participate different social welfare activities. Then their position will be growing in consumers mind. Then their sales will be high and expand their market share.

Painting the Cement-ShopThough the company can’t give advertisement in electronic media or print media so they can go for printing the Cement-shop.

Trade promotionGiving extra benefit to the retailer and whole seller and whole seller so that distribution channel of the company becomes strong.

Scratch cardGiving scratch card inside the pack where consumer will get something by scratching the card may enhance the liking and loyalty of the consumers.

Direct distribution/ sales to consumersThe holcim company can take direct distribution process. It means company directly reaches their cement to the targets consumers. They do not use any retailer, whole seller, distributor to sales cement. As a result, consumer can purchase cement directly to the main company. Then consumers have no bother about the quality of the cement and consumer feel more secure to use the product.

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13. Bibliography


Text Book: Consumer Behavior, 9th Edition, Hawking & Best & Coney Survey: Answer of 100 Questionnaires Search Engine: Google Web Link: www.holcimcement.bd.com , www.holcim.com.

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holcim cement bangladesh ltd

Documents

holcim cement bangladesh

years holcim

holcim activities

history of holcim

analysis of consumer

consumer belief

consumer perception

course consumer behavior