A Project Report On "Impact of Social Media On Consumer Behavior" With Special Reference To "Meesho Inc."

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A

PROJECT REPORT
On
“IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR”
With special reference to
“MEESHO INC.”

Submitted TO-

Savitribai Phule Pune University, Pune


In partial fulfilment of the requirement of
Bachelor of Business Administration (BBA)
Submitted by
PATEL VIRAJ DINESH
- Under the guidance of -
Prof. AUTI M.N.
THROUGH
Gramonnati Mandal’s
Arts, Commerce, Science Collage Narayangaon
(Department Of BBA/BCA)
For The Year 2021-2022
CERTIFICATE

This is to certify that Mr. PATEL VIRAJ DINESH of SY BBA Roll No. 36 having
specialization in Marketing Management has successfully completed his project titled “THE
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR FOR MEESHO INC.” as
per the norms of Savitribai Phule Pune University under the guidance Prof. Auti M.N for the
academic year

Internal Examiner External Examiner


(Prof. Auti M.N.)

Project Guide HOD Co-Ordinator


(Prof. Auti M.N.) (Prof. Gharage S.V.) (Prof. Kudekar S.B.)

DECLARATION

I hereby declare that the information, Photographs, Data etc. Gathered during the internship period
of research report study shall be strictly utilized only for the purpose of project report is a part of
the partial fulfilment of Degree of Bachelor in Business Administration at Arts Commerce &
Science College, Narayangaon for the academic year 2021-22 under Savitribai Phule Pune
University, Pune.

I honestly state that the intention of collection of the information in my research report is solely
for the purpose of study, not for commercial purpose or any means my sole and sincere motive to
learn the procedure practically and express my views by preparing Project Report.

Thus, the sole and honest objective for collecting the information is only for the academic purpose
and I assure that collected information shall be restricted only for Project Report.

Place: Narayangaon

Date: / /

PATEL VIRAJ DINESH

ACKNOWLEDGEMENT

I would like to sincere thanks to Prof. Auti M.N. for their valuable cooperation and support,
without whom it was difficult to complete this project work.

I am extremely delighted to express my deep hearted regards to my research project guide Prof.
Auti M.N. Arts, Commerce, Science College of Narayangaon, who has spent his precious time to
direct these academic undertakings without his guidance and valuable suggestions, this work,
would have not been completed.
I am also thankful to all employee of MEESHO INC. for extending their support during the
internship. Due to their support only, I was able to collect primary and secondary data.

I also pay my sincere thanks to all those who have directly or indirectly supported me to complete
this project.

Place: Narayangaon

Date: / /

PATEL VIRAJ DINESH


CHAPTER NO.1
INTRODUCTION OF THE STUDY
1.1 INTRODUCTION TO DIGITAL MARKETING
Any marketing that uses electronic devices and can be used by marketing specialists to convey
promotional messaging and measure its impact through your customer journey. In practice, digital
marketing typically refers to marketing campaigns that appear on a computer, phone, tablet, or other
device. It can take many forms, including online video, display ads’ search engine marketing, paid social
ads and social media posts. Digital marketing is often compared to “traditional marketing” such as
magazine ads, billboards, and direct mail. Oddly, television is usually lumped in with traditional marketing.

Did you know that more than 3 quarters of Americans go online on a daily basis? Not only that, but 43%
go on more than once a day and 26% are online “almost constantly.”These figures are even higher among
mobile internet users. 89% of Americans go online at least daily, and 31% are online almost constantly. As
a marketer, it’s important to take advantage of the digital world with an online advertising presence, by
building a brand, providing a great customer experience that also brings more potential customers and
more, with a digital strategy.

Digital marketing, also called online marketing, is the promotion of brands to connect with potential
customers using the internet and other forms of digital communication. This includes not only email,
social media, and web-based advertising, but also text and multimedia messages as a marketing channel.
Essentially, if a marketing campaign involves digital communication, it's digital marketing.

Digital marketing should be one of the primary focuses of almost any business’s overall marketing
strategy. Never before has there been a way to stay in such consistent contact with your customers, and
nothing else offers the level of personalization that digital data can provide. The more you embrace the
possibilities of digital marketing, the more you'll be able to realize your company's growth potential.

At this stage, digital marketing is vital for your business and brand awareness. It seems like every
other brand has a website. And if they don't, they at least have a social media presence or digital ad
strategy. Digital content and marketing is so common that consumers now expect and rely on it as a way
to learn about brands. Because digital marketing has so many options and strategies associated with it,
you can get creative and experiment with a variety of marketing tactics on a budget. Digital marketing is
defined by the use of numerous digital tactics and channels to connect with customers where they spend
much of their time: online. The best digital marketers have a clear picture of how each digital marketing
campaign supports their overarching goals. And depending on the goals of their marketing strategy,
marketers can support a larger campaign through the free and paid channels at their disposal.

A content marketer, for example, can create a series of blog posts that generate leads from a new e-book
the business recently created. The company's social media marketer might then help promote these blog
posts through paid and organic posts on the business's social media accounts. Perhaps the email marketer
creates an email campaign to send those who download the e-book more information on the company.
Digital marketing became popular with the advent of the internet in the 1990s.Digital marketing involves
some of the same principles as traditional marketing and is often considered a new way for companies to
approach consumers and understand their behavior. Companies often combine traditional and digital
marketing techniques in their strategies.

 Purpose of digital marketing

The purpose of digital marketing is to help you garner new traffic, leads, and sales for
your business by reaching people looking for your products and services. By itself, web
marketing is the process of marketing your company online to prospective leads and high-
value consumers.

Online marketing plays a vital role in helping your business grow. Considering that over
4.3 billion people are on the web and two billion of them are online shoppers, there are
dozens of opportunities to reach people who are interested in your company.

KEY TAKEWAYS
 Digital marketing involves marketing to consumers through any
number of digital channels.
 This form of marketing is commonly executed on websites, mobile
devices, and social media platforms.
 This form of marketing is different from internet marketing, which is
exclusively done on websites.
 Digital marketing is a broad field, including attracting customers via
email, content marketing, search platforms, social media, and more.
 One of the biggest challenges digital marketers face is how to
set themselves apart in a world that is oversaturated with digital
marketing ads
Digital marketing KPIs
Digital marketing key performance indicators (KPIs) are used to measure marketing
campaign performance. Digital marketers can use a number of KPIs to track results.
As you work through your strategy, determining which specific digital marketing KPIs
to use makes it easier to determine targets and goals and to measure campaign
performance, including the following data:

 Returning visitors to website. Indicates engagement because visitors are coming


back to your website/landing page to consume more content or take a specific
action.
 First visit. Understand how people are finding your website and how
engaged they are once they do.
 Web traffic sources. Shows how people finding your website/landing page.
 Total visits. The number of single browsing sessions by individual visitors to your
site.
 Total unique visits. The number of people who have visited your website/landing
page.
 Click-through rate (CTR). The percentage of people who clicked on a CTA or link.
 Average time on page. The average amount of time all users spend on a single
page.
 Marketing ROI (return on investment). How much revenue a marketing
campaign is earning compared to the cost of running that campaign.

Purpose of Digital Marketing


1# Continuous Stream of New Leads

If you have your own website to sell products, you can rely on direct sales, however,
if you have an offline business, digital marketing can help you generate potential
customers online, and then bring it offline. It is important to have a steady stream of
potential customers so that your sales representatives have enough potential
customers to use.
Digital marketing can help you generate high-quality leads for a small fee, depending
on the media you use. You can also expect more visitors to visit your store.
If you have your own website selling products, you can expect direct sales. However,
if you run an offline business like a car dealership, you can use digital marketing to
generate leads online which can be then taken up offlile. Having a continuous lead
pipeline is essential so that your sales guys have sufficient prospective customers to
work with. Digital marketing helps you generate highly qualified leads at a fractional
cost- depending on which medium you use. You can also expect increased customer
walk-ins to your store as a result of your marketing campaigns.
Example: You are a car dealer selling new & used cars in your showroom. You can
run paid advertisements on social media or search engines, as well as run email
marketing campaigns to generate leads. These leads can then be contacted by your
business development or sales representatives to finally convert them to paying
customers.

2# Increase Sales
The primary goal of any marketing strategy is ultimately to increase sales, and
internet marketing is no exception. Fortunately, the internet offers many
opportunities for all businesses to improve their bottom line.
By combining search engine optimization or SEO with pay-per-click ads or PPC, your
business can increase the chances that potential customers will find you online, and
with strategies like content marketing and social media marketing you can position
yourself as an expert in your field, while it also takes care of your customers. The
main goal of any strategy is to increase sales, for more information on how internet
marketing can increase sales and generate income. This is one of the primary
objectives of digital marketing. Since you would be utilizing resources- time and
money on digital marketing, you would definitely expect direct sales coming in as a
result of the same. If you have an online portal where you sell products or services, it
is pretty straight forward.
You can run digital marketing campaigns, due to which, customers can land on your
website, browse your offerings and make purchase online itself. Direct sales
generated via your digital marketing campaigns can be used to determine return on
your investment- how much revenue was generated directly for every dollar spent in
digital marketing.
However, do note that not all campaigns will result in direct sales. There would be
assisted conversions and engagement/ brand awareness happening, as a result of
your campaigns which may draw direct or indirect customers to you in the future.
Example: You own an online store selling dry fruits. You can run targeted digital
marketing campaigns on social media networks like Facebook to get visitors to you
website which may purchase your products by paying online and then you can
deliver them the products via courier.

3# Brand Building
In any business, just acquiring new customers and expecting him to do repeat
purchases further on doesn’t work. You need to make sure the customer is
connected to your brand and/or products, and digital marketing comes in very handy
in such cases.
Digital marketing mediums like social media marketing are the best medium for such
campaigns. You can run specific retargeting campaigns using Ad words or
Facebook/Instagram only for your existing customers or people who have previously
been your website visitor, showing them their new products, offers, etc.
Due to this, he would be shown your ads while browsing social media or any blogs or
other websites. This helps the customer remain engaged with your brand and
increases the chances of subsequent purchases.
Building a brand on Internet marketing goals often involves brand building. That
means not only establishing your logo and company name in the minds of
consumers, but also what your company stands for. Customers are more likely to
trust well-known brands, especially if they are associated with positive associations.
The internet is a great tool to build that trust as it has a wide reach and allows you to
connect with people directly. It is especially useful in branding as it allows companies
to create and publish with a more personal feel.
In addition to organic posts on these websites, businesses can build brand awareness
by paying for ads and placements. This requires patience from the leaders of the
organization, as trust and loyalty develop over many months and sometimes years.
Focus on results. Let us illustrate with an example. Consider you own an online store
selling apparel. A particular customer has come to your website, browsed a few
products but haven’t purchased anything.
Showing him retargeting ads with the same products which he browsed and had a
look at on your website, increases the chances of a purchase.

4# Less Cost of Customer Acquisition

In most companies, the cost of acquiring new customers is often quite high.
Companies spend so much money to attract new customers because they think they
will become loyal followers. Even if we have first-class products, thousands of
product choices can hardly retain repeat customers.
Therefore, it is important to understand the cost of attracting new customers in
order to proceed in moderation without spending too much. One of the ideal ways
to reduce the cost of acquiring new customers is to use digital marketing. In this
way, you can reach a large target group faster than traditional marketing, and at a
lower cost.
You can place paid ads on social media or search engines, targeting users in a specific
location at that location. The second option is the best, because it allows you to
perform promotions in the blink of an eye with just the click of a button. It can also
save a lot of recruitment, collection/newspaper advertising costs, logistics, etc.,
which will reduce your recruitment costs.
In most of the businesses, the cost of acquiring new customers is generally quite
high. Companies do such high spends on acquiring new customers thinking that they
would turn into loyal brand followers and do repeat purchases which will induce
profits.
However, markets are now flooded with hundreds and thousands of product options
which makes it difficult to keep loyal customers- even though you have the best in
class products. Hence, it is extremely necessary to keep a close eye on the cost of
acquiring new customers so that it happens moderately without overspending.
One of the ideal ways to reduce the cost of acquiring new customers is to use digital
marketing. It helps you reach out to a large pool of extremely targeted audience
much faster as compared to traditional marketing and even at lower costs.
Let us understand this with an example. Consider you run an FMCG company and
want to do product promotions in a specific city or town. Traditionally, you will book
newspapers ads, hoardings, set up kiosks or stalls to market your products.
The cost of this would be very high. Alternately, you can run paid ads on social
networks or search engines targeting people from certain localities of this town. The
second option is the best since you can do promotions at a click on your button in a
jiffy and also save a lot on manpower hiring, hoarding/newspaper ad costs, logistics,
etc.- thereby reducing your cost of acquiring new customers.

5# Improved Qualified Traffic

All business owners want to increase the number of visitors to their website and
landing pages. However, these numbers are meaningless unless the traffic types are
correct and the right type of traffic. Not all visitors to your website will make a
purchase. This is the way of the internet and it has to be accepted.
However, if none of your website visitors make purchases (or contact you), it is likely
that you are attracting “unqualified” traffic or visitors who do not intend to become
customers. By targeting your marketing to specific people and aiming to attract
specific, qualified people, you can increase the ROI of your marketing efforts as well
as your bottom line.

As you look at the different roles of digital marketing, you’ll discover that
online marketing also makes it easy for you to monitor the effectiveness of your
campaigns. Whenever you run an advertising or marketing campaign, you want to
know if it’s driving results. Traditional marketing methods make this difficult because
you can’t know if your efforts persuaded your audience.
You would have to survey every person that comes into your store or contacts your
company and ask them how they heard about you, which is time-consuming. With
digital marketing, you can monitor your campaigns in real-time to see if they work.
You can track a variety of metrics, depending on the type of campaign.
Some basic metrics include impressions, traffic, clicks, dwell time, and conversions.
These metrics give you valuable insight into the effectiveness of your campaign a
help you calculate your ROI. When you partner with an online marketing agency, like
WebFX, you’ll receive access to valuable marketing tools, like Marketing CloudFX.
Tools like these allow you to compile performance information all in one place, as
well as track valuable metrics. If you like to see the impact of your campaigns, this is
the most critical role of digital marketing. You will always know whether your
campaign is driving results for your business.
It’s a great feature because it provides your team with the ability to change
your campaign to drive better results.

6# Online Reputation Building

At a time when anyone with a computer or smartphone can share their opinions on
companies, products and services around the world. To see, it is important for
companies to have one online maintain a solid reputation. This means monitoring
your company name, maintaining social profiles and responding to bad reviews
accordingly.
A bad background check does not mean that your company’s reputation has
deteriorated. For some companies that have made mistakes in this department,
their goal is to eliminate all negative associations with your company and show
customers that they have seen the mistake. Although improvements will not happen
overnight, and poor Internet publicity is difficult to fix, the Internet is a reliable tool
for restoring damaged reputations. Influencers in the eyes of others, follow the
latest technology and ideas, and are usually the first to share new information.

7#Better Local SEO

This means that various elements on your websites are optimized to attract local
customers looking for the services you offer, although the number of searches that
span both your industry and your city is undoubtedly fewer than those just specify a
product or offer.
These searches usually generate a lot more qualified traffic. If a user is already
looking for businesses in your location, chances are they’re ready to expand your
physical location.
Search Engine Optimization, more commonly known as SEO, is one of the most used
digital marketing techniques. It is optimizing your online presence- particularly your
website for search engines.
This is done so that when any person in searching for your business or any relevant
keywords in any search engine, your website ranks at the top. It is generally divided
into two parts- on-page SEO which deals with optimizing your webpages for the
search engines and off-page SEO which includes backlinks (other websites pointing
to your website), social signals, etc. When somebody wants to know about a
particular thing, say for example, ‘computer repair shops in San Francisco’, the first
thing he’ll do is to search for this on Google or any other search engine. You can
understand the importance of SEO from this very thing.
If you have properly optimized your web page and if it ranks on the first page of search
results for this very keyword, you can just estimate the amount of business especially
inquiries or walk-ins that you might expect. However, do note that SEO is a time taking the
process and the rankings of your web pages may not change overnight.

 Importance of Digital Marketing


o Importance of Digital Marketing for Small and Large Businesses
Now that we have understood the scope of digital marketing in India, let us look
into why it is important for small and large-sized businesses. The focus for small
businesses is brand awareness and development.

1.Cost-Effective:

Digital marketing efforts require barely any initial investment. This is great for small
businesses. Most digital marketing tools offer basic features free of cost. It is up to the
businesses to make the best use of them. Check out the types of digital marketing tools.

2.High Reach:

With digital marketing, the reach is global. Hence, you can take orders for your
product or service from all over the world and it need not be limited to one area. And
when you go global, you can still niche your audience to selected individuals. Thus, it’s
a win-win.
3.Local Reach

While global reach is a significant advantage of digital marketing, it also improves local
visibility, which is especially important if your business relies on nearby customers. Local
SEO and locally targeted ads can be beneficial for companies trying to bring more
customers to their doors. Think of the reach you can get to a whole neighborhood with
digital marketing versus the reach it would take you to print out flyers and distribute
them around.

4.Brand Awareness

If a customer has no awareness of your brand then he cannot make a conversion. To


tackle this, brand visibility is extremely important. With pay-per-click and other kinds of
paid promotions, you can really attract customers to your small business. We recommend
this Facebook and Instagram Ads online course to understand some more.

5.Building a Customer Base

The challenge with small businesses is that one needs to build a customer base. This is
based on building a rapport with a strong customer relationship. With CRM tools such as
HubSpot and Oracle, you can manage this easily.

The challenges for big businesses are slightly different. They need to retain existing
business and focus on brand reputation, client retention and on the growth of the
business.
6.Brand Image

An established company’s image is everything. The right campaign strategies can make or
break a company’s brand image. Through digital marketing, effective campaigns can be
designed and the scope fixing any glitches immediately is there.

7.Measurable Results

With digital marketing, big companies can have real-time measurable results. With this,
they can analyze the effectiveness of the campaign and accordingly formulate strategies.
Today, the significance of analyzing data is very important to evaluate the effectiveness
and success of your campaigns.

8.Increase in ROI

Companies can increase their revenue with digital media by investing in ads and thus,
increasing conversions. The investment in digital media is much lesser than traditional
media and the returns are also higher. Did you know? You can run ads on certain digital
platforms for as low as 1$.
9.Retaining Loyal Customers

The main goal of digital marketing for big businesses apart from increasing their
business is ensuring that their customer base is loyal and satisfied.These are reasons
enough to indicate that the importance of digital marketing for businesses is crucial
and thus, you must consider adopting it for your business. A smart and solution-
based option would be to go for digital marketing corporate training.

10.Analytics and Optimization

Another important advantage of digital marketing is web analytics which measures the
result of digital marketing campaigns in real-time. This helps to optimize future
campaigns and fix any possible mistakes quickly. Analyzing your digital marketing
campaigns also enables you to have the ability to pinpoint every source of traffic and take
total control of your sales funnels.
Tools of Digital Marketing:

Digital Marketing Tools mean connecting with the people at the time through the
right place. That means you have to meet them or connect them where they are
spending their important time and money.

Digital marketing keeps all the marketing efforts that are used on an electronic
device or the internet. Companies use digital channels like Social media, Email
marketing, Search engines, SEO, and many more websites to connect with people at
present or later according to customer behavior. An experienced inbound marketer
says that inbound marketing and digital marketing are almost the same, but they
have some minor gaps, and the communication with the business owner and
marketers’ from New Zealand, Australia, England, and Asia have learned a lot about
how these little variations are observed in the worldwide. The world’s best digital
marketers have a clear image of how each digital marketing campaign supports its
overarching objectives. And marketers can promote a bigger campaign through the
free and paid channels available to them, depending on the objectives of their
marketing strategy.

Below are some of the important tools of digital marketing:

1. Social Media

This one is the most powerful one as we all know that Social media is the collection
of communication, interactions, and collaboration. Apps and Websites will dedicate
the social networking blogging, and many more are there. This technique supports
the understanding of your brand and content on your social media channels; it will
drive traffic and generates directions for your company.Some important digital
marketing tools of Social media:

 Facebook: As we all know, Facebook is one of the popular and top levels of
the social network. Facebook allows users to create their own profile on the
site from that you can connect with your friends and family, and the
important point is that you can share and upload the photo and video with
your friend, family, and colleagues with just one click.
 Twitter: This is another popular and powerful network. Twitter is a
microblogging service that is free for registered members. We can also say
that Twitter Tweets are the most powerful in the world. In Twitter, we can
follow any registered twitter member to see their tweets using multiple
platforms.
 Google Plus: Google plus is also one of the famous networks which Google
manages. To Join with Google plus, first of all, we need an account on Google.
When you first sign up, some groups, including Friends and colleagues, have
been set up by Google. You can add your own as well. In this, you can share
images and links with your friends and relatives.

 LinkedIn: This one is famous for business purposes. This LinkedIn network
is specifically designed for business uses. The purpose of the site is to allow
registered members to set up and document network-aware from trusted
networks of people.
 Instagram: According to the search, about 850 mill users are active, with that
1.8 billion like have been given to post. There are also a lot of influencers
with a lot of supporters on the site. And you can also become an important
brand with the correct strategy. To keep applicable to the present
supporters, you must post the correct kind of data and also add fresh ones.

There are some powerful tips from you that can make more visitors to your
platform.

1. Switch your account to the business account


2. There are some free tools of Instagram use them
3. You can use Instagram stories to promote business and attract customers.
4. Take an interactive brand hashtag.
5. You have to post at the right time. e.g. Monday and Thursday. Don’t post on
Sunday because it is the worst day to post.
2. SEO
SEO stands for Search Engine Optimization. SEO is a technique to get traffic for the
website. This is one of the best parts of Digital marketing tools. From this, you can
drive more traffic to the sites. This is the way to “rank” your website in search engine
scores, thereby improving the percentage of organic traffic. The organization uses
the SEO technique to grow their business over the world wide web. In order to
create qualified traffic to your website, there are several methods to approach SEO.

3.Affiliate Marketing
Affiliate marketing has become one of the oldest ways of digital marketing tools
where you refer somebody to an online product. If that person buys that product,
you will get a commission based on that recommendation. The advertisements in
affiliate programs are connected to websites of companies and are referred to as
affiliate links. Affiliates usually have to apply for affiliate programs, while most
affiliate programs have no price to join. Affiliates decide which banners or
advertisements they will place on their websites within their affiliate programs. They
will also agree to membership programs with the highest Commission structure for
merchants, although the structure is not usually considered very paying or beneficial.
4.PPC

PPC means Pay Per Click. In this model of marketing, the owner pays money as per
click. The most important PPC ad format appears on the search results pages of
search engines like Google or Bing. Most, but not all, PPC ads appear in the search
results. There are three major types of marketing ads PPC.

 Text Ads: Text Ads mean written content by the owner of the site. Format
and character depend on the PPC platform on which you are working. Text
advertisements are most frequently initiated through the Search Network
when consumers search within your PPC campaign on Google or Bing for a
keyword.
 Display Ads: this type of ad is in the form of an image or GIF. PPC platforms
offering display advertising often have size, and advertisers need to comply
with content requirements when creating their visual creative.
 Shopping Ads: Typically, a shopping advertisement is provided after a search
engine or shopping engine submits a query. Typically shopping
advertisements contain a picture of the item, its price, and any here
specifications such as size, color, dimensions, etc.

5.Visual Design Tools

 Canva: It will help you to design a beautiful image with the help of the Drag
and drop option. Choose one of their countless different templates, or
choose a pre-sized blank design for your chosen platform. Even the branding
section can be customized, so you always have your choice of colors, fonts,
and logos on your platform.
 Animoto: From this, you can create a professional video, GIF, Custom
Text Visual effect, and many more things that you make from this
Animoto.
CHAPTER NO. 2
INTRODUCTION TO THE ORGANISATION
2.1 Introduction

Initiated in 1983 as Gujrat Ambuja Cements Ltd. and acquired by Holcim Ltd. in 2006, Ambuja
Cement is the top choice of the Indian market which is visible in their annual revenues worth a
whooping ₨ 9638 crores.Cement is one of the core industries which plays a vital role in the
growth and expansion of a nation. It is basically a mixture of compounds, consisting mainly of
silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminum oxide and
iron oxide. The demand for cement depends primarily on the pace of activities in the business,
financial, real estate and infrastructure sectors of the economy. Cement is considered preferred
building material and is used worldwide for all construction works such as housing and industrial
construction, as well as for creation of infrastructures like ports, roads, power plants, etc. Indian
cement industry is globally competitive because the industry has witnessed healthy trends such
as cost control and continuous technology up gradation.
2.2 Company Profile

Legal Name Ambuja Cements

Headquarter Mumbai

Founding Year 1983

CEO Neeraj Akhoury

Website URL www.ambujacement.com

Founder Suresh Kumar

Customer service 1800 22 3010

Marketing mix of Ambuja Cement


 
A good marketing strategy helps companies achieve business goals & objectives. For a
better understanding of strategies used by Ambuja Cement we will now look at their 4P
model of Marketing Mix:
 
Product
Being a leader in its well-suited core cement and clinker manufacturing unit it also provides
construction materials for infrastructure projects such as RailCem, mineral admixtures, Dirk
Pozzocrete, Powercem, and cement grout for specific requirements in large projects under
govt. and other private institutions. Apart from this, Ambuja Cements provides individuals,
builders, architects, and engineers with customized services.
 
Place
With the foundation in Gujarat’s soil and belief in the rapid expansion, they have quickly set
up a good base of users. A network of 48000+ retailers and dealers, 4 captive ports, and 4
bulk cement terminals helps them to supply efficiently nationally and stand out in situations
of stiff competition. It also is providing technical help with the help of 300 civil engineers and
30 Ambuja Knowledge Centres which work closely with the contractor, masons, and
individuals to know the market better.
 
Price
This sector has competitive pricing and cement not being a one-time one unit buy product
Ambuja Cement follows varied pricing strategy based on demand, product type, industry
trend, and competition. Having a dedicated team to keep an eye on this cut-throat
competition as prices fluctuate on govt. policies, demand, price of raw materials, depend
heavily on bulk orders thus the prices vary accordingly from as low as Rs. 245/ bag to Rs.
325/bag hardly ranging from Rs. 5- Rs. 20 per bag and hence quite less to differentiate.
 
Promotion
From a tagline to remember to series of ad campaigns that aim to touch hearts, from
creating ads that showcased the rift between siblings to enrolling the great Khali for an
emotional advertisement, Ambuja Cement not only beats competitors but also emerges as
a brand that loves its country, values relationships and strives for development.
They also recently sponsored Jaipur Pink Panthers as Kabaddi represents qualities like
focus, flexibility, and strength which are in line with their products. Market share of Ambuja
cement stands at 7% PAN India.

Ambuja Cements is one of the companies that realized the potential of brand building as a
differentiator and thus from very early started to navigate on these grounds

Competitive Advantage & Analysis


 

Competitors analysis helps you recognize you can revamp your strategies and how you can out-do
your competitors to retain your consumer’s attention.
Firms operating in this industry differ based on factors such as market penetration, manufacturing
capability, brand value, price range, and product portfolio. Let’s analyse Ambuja’s competitive
position.
With over 70 % capacity utilization they seem to have dominated their pan India presence also
giving them cost leadership with a wide scale of operations such as manufacturing, supplying,
procuring raw materials, transportation, warehousing, and such
Being a large-scale manufacturer they require a huge supply of fuel and rather than just depending
on one source they have effectively use a well-balanced fuel mix with 65-70% Petcoke &
domestic/imported coal to cut the cost
Being part of such a reputed group also helps them get an edge over competition in the
export market, LafargeHolcim, is a well-known name of the world-wide construction
materials industry. It has effectively built and kept the brand reputation in check with quality
supplies, efficient support teams, and product promotion
There is not a defining factor that can differentiate the companies here as the industry itself
is heavily dependent on outer environmental factors and thus how much resources you
procure and how you are using them becomes the differentiation factor in the sector.
Ambuja Cement faces tough competition from ACC, Ultratech, JK Lakshmi, and yet due to
its scale of operation and reaches in the local markets of India holds its status as the
industry leader. 
 
SWOT Analysis of Ambuja Cement
 
Understanding the internal and external factors of a company help in gauging its current
status, along with providing valuable insights into its future position. This is achieved by
conducting a SWOT analysis i.e. an analysis of a company’s strengths, weaknesses,
opportunities, and threats. Let’s dive right into Ambuja’s SWOT Analysis.
 
 
Strengths of Ambuja Cement
Leading cement manufacturers
Strong dealer network
Extremely strong in the west
Cost advantage through infrastructure
Excellent financial backing
Marketing consistency
Listed on NSE and BSE
 
 
Weaknesses of Ambuja Cement
Lack of product diversification
Largely dependent on the Indian market
Known for small works
 
Threats to Ambuja Cement
Intense competition
The cartelization of the industry
 
Opportunities for Ambuja Cement
Make in India 
Benefits due to GST
Investment on infrastructure
High growth in the cement industry
 
A company needs to analyse its internal factors to turn its weakness into strengths. Also, to
understand the opportunities and plan accordingly. Let’s now take a look at Ambuja
Cement’s marketing campaigns.
 
Ambuja Cement Marketing Campaigns
 
Marketing campaigns promote products through different types of media, such as
television, radio, print, and online platforms. They not only promote the product but also
send a meaningful message to connect with the customer. Marketing campaigns of Ambuja
Cement are quite humorous and relatable. 
The innovative and simple advertisements Ambuja Cement banks on has helped the
company in increasing customers’ TOMA (top of mind awareness), thereby increasing their
share in the customer’s wallet as well as space in the heart.
From the tagline “Giant compressive strength” they have run very successful campaigns
appealing to the ultimate users’ side of the industry.
Signifying the tag line, they have ultimate one-liners in the TVC which hardly one can
forget, “Bhaiya ye deewar tootati kyu nahi”  in the ‘Bhai-Bhai’ ad.
 
Apart from TVC’s we can almost see an Ambuja ad painted over walls of side houses and
buildings in a friendly neighborhood way. They also sponsor some teams in sporting events
like Kabadi, Cricket, and such which helps them in having a mental space of every Indian.
Another masterstroke was the ‘I Can’ initiative, it empowers an individual in sales teams
with the opportunity to come up with their ideas to implement and increase sales. There are
also other performance-linked incentives such as providing shares and international
holidays, giving extra beneficial transactions to retailers and wholesalers, giving them the
choice to combine two schemes and such.

Such schemes tie the retailers to the company and drive a notion that you own the
company, work hard and earn more.
Having a digital presence is imperative for any brand in today’s times.. You need to be
alert, adaptable, and executive on the trends. Having a digital presence makes it easy for
consumers to browse through your portfolio even when you are sleeping. It facilitates easy
access without labor and rent. Let’s take a look at Ambuja’s take on the same. 
 
Digital Marketing Presence
 
Ambuja Cement primarily leverages its online presence via an assisting website, GRIHA-
SHILPI which customers can refer for different aspects and processes when building a
home. It also provides a list of contractors and their contact numbers across different
districts in India.
They do have a fully optimized website with social media handles all blazing the CSR
activities they are doing and how their products are superior to their competitors.
 
LinkedIn – Having around 85 K followers they usually post how they are working towards
society as a change maker. The average engagement rate is around 3-5%
Youtube – Here they share their short videos and ads which also signify the acceptance
and inclusion of various sectors of society put together with some humorous and some
emotional appeals. The average engagement rate depends highly on the video content as it
varies from 125 K + views to a mere 1K view as compared with their 18 K subscribers
Facebook – Here they have the leverage of posting long captions with inspiring stories and
videos of their employees as well as TVC’s and the general public. The response and
average engagement rate here also seem to take a backseat with only 1-2% as compared
to 130K + followers.
Instagram – This seems a mere formality of today’s world with not more than 7000
followers and a 3-4 %engagement rate. The posts are more or less the same as other
platforms.
 
The target market they cater to does not have an impact on the digital standings of the
company, it does not affect the buying decision hence they are least bothered to check
them here. Their competitors are also on the same grounds, without much digital hassle.
What they are doing is pretty good and they can continue with some more efforts.
 
Conclusion
Ambuja Cement is a brand with a strong rural presence and core values which are also
visible in their marketing strategies. However, with this, they also need to upgrade
themselves with changing times to stay ahead of the competition. Being an Indian brand
that is recognized globally comes with certain responsibilities like maintaining standards not
only in products but what you stand as a brand for, Ambuja Cements has time and again
showed us their zeal to deliver the best to the customer which is the best marketing
strategy any brand can adopt.
Being Digitally upskilled is extremely important in today’s day and age as exemplary digital
marketing of a brand gives it an upper hand in the competition. IIDE, helps you attain digital
marketing learning by providing various courses to revamp the company’s brand.
All you have to do is register and develop the enthusiasm to learn. Before you make a
decision, sign up for our completely free-of-cost masterclass happening every week, and
learn the basics of digital marketing from the expert and then make your decision.
Thank you for taking out time and reading the case study. Comment down your
suggestions and recommendations for Ambuja Cement’s Marketing Strategy. Share and
educate your friends with the same. 

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