One brand strategy does not work in the long run

One brand strategy does not work in the long run

Sunil Bagani Proprietor, Giriraj Trade Links
We have been in this field for the last twenty-five years, serving the Nagpur district of Maharashtra. This year the cement consumption in the region was moderate, somewhere in the range of 1,25,000 tonnes to 1,50,000 tonnes. Doing business in cement supply is getting difficult as the market is overloaded with cement dealers. This saturation is forcing all players to cut down their margins. We hope that enough orders are generated in the coming year to make the business sustainable. Perhaps new infrastructure projects launched by government will lift the sluggish market. We will wait and watch.

As of now we are supplying Ambuja Cement. It is a well known brand and with a good market pull. The company is also professorial and we have a fixed margin system. However, as we go ahead we will put more brands on our shelves. One brand strategy does not work in the long run. We have to offer more choices to our customers. Since we get the material delivered from the company directly to the customer´s site, having multiple options help. That way we can chose a brand that is logistically profitable to our customer. Sending material directly saves the cost of loading and unloading. It saves Rs 4-5 per bag.

To feature your views in this section, please contact Sunil Budke
at 022-24193048 or write to him at
Sunil@IndianCementReview.com

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