Business
Barons
February 2008
Excerpts
from an interview with O.P. Puranmalka, Group Executive
President, Grasim Industries and Chief Marketing
Officer, UltraTech Cement Ltd.
In
step with its global agenda, the cement business
of the Aditya Birla Group, is orchestrating a contemporary
brand makeover. With UltraTech Cement, the Aditya
Birla Group has established itself as not only the
most respected domestic player but also among the
global leaders in cement. Associate Editor Vidyut
Kumar Ta in an exclusive interview with O.P. Puranmalka,
Group Executive President, Grasim Industries and
Chief Marketing Officer, UltraTech Cement Limited,
analyses the strategy behind promoting a single
brand identity of the company's cement products.
The
Indian cement industry is on a roll. Driven by vertical-trajectory
infrastructure development, a booming housing sector
and surging global demand, the cement industry has
ramped up production capacity, sparking off a spate
of mergers and acquisitions to spur growth.
The demand for cement is linked to the pace of economic
development in any country. Broadly, this can be
categorised into demand for housing construction
(homes, offices, etc.) and for infrastructure creation
(ports, roads, dams, power plants, etc). The real
driver of cement demand is new infrastructure. Although
cement is a typical cyclical industry, a huge potential
market and rapid growth have led to a surge in cement
demand.
Keeping pace with the expanding demand for cement,
the cement business of the Aditya Birla Group has
integrated its national cement brands into one entity
UtlraTech Cement. Jaan Wahi, pehchaan nayi
this new brand identity sums up the ultimate
promise a forceful statement that communicates
the business benefit of the level of service and
quality that the company provides to its customers
and partners.
Just a few years ago, the Aditya Birla Group bought
over the cement business of L&T for around Rs.
2,200 crore. L&T allowed its name to be used
for about a year. O.P. Puranmalka, Group Executive
President, Grasim Industries, and Chief Marketing
Officer, observes that in a very short time the
company had to establish a new brand name in the
minds of the people and use the L&T mind space.
The task was Herculean. Explaining the strategy
behind the new brand name, Mr. Puranmalka says:
"We wanted to capture the gene code of L&T
in the new brand name. So we commissioned research
on customer perception about the L&T Cement
brand. Of course, we were very sure in our minds
that L&T Cement epitomised engineering prowess,
technology quality and modernity."
The research findings threw up the same qualities,
but the name itself was not associated with anything
tangible because L&T was not by itself a meaningful
word. Moreover, the group wanted a new brand image,
which portrayed the intrinsic premium value of the
brand on cue from the findings of the survey.
The outcome was UltraTech Cement. Mr. Puranmalka
insists "nothing has changed except the name".
There is no doubt that, with the unveiling of this
new brand identity, the Aditya Birla Group implemented
one of the largest brand transition exercises in
India in the category.
Says Puranmalka: "The name UltraTech with the
signature line, 'The Engineer's Choice', admirably
captures the premium nature of the brand and its
salience." According to Mr. Puranmalka, excellent
product quality and customer care will remain the
hallmark of UltraTech cement.
Jaan Wahi Pehchaan Nayi
Keeping
pace with the current industry trend and taking
the UltraTech brand to a new pedestal, the group
decided to have one national brand. Birla Plus
with its very strong presence in the North was
a very well known brand. Its tag line 'Har Nirman
Ki Jaan' and 'Is cement mein Jaan Hain' had become
household phrases. Observes Mr. Puranmalka: "We
opted for UltraTech as the national brand because
while on the one hand, it gives us the opportunity
to strengthen common attributes of a premium brand,
scale of operations and the Aditya Birla Group's
reputation, it also provides an opportunity to
build on the positioning platform of 'expert'
and imagery signifying 'progress', 'cutting edge
technology' and 'modernity'.
While highlighting the need to present a single
and unified brand identity across the country,
Mr. Puranmalka stressed the fact that with this
change, only the name of Birla Plus was being
changed to UltraTech Cement and the core values
and fundamentals on which Birla Plus was built
will remain the same. "While both the brands
have different identities and personalities, the
core or the soul of both the brands is the same
- i.e., Aditya Birla Group's lineage, superior
product quality, premium cachet, trust and reliability.
That is not changing and therefore our campaign
is centred on the theme of 'Jaan Wahi, Pehcaan
Nayi'," says Mr. Puranmalka.
Strategy
Although
cement is said to be a low-involvement category,
the brand awareness in this category is very high.
Major brands like ACC, Ambuja and some strong regional
brands have been fighting for mind space. Says Mr.
Puranmalka: "Brand awareness is the category
driver. We wanted to be different and were constantly
on the look out for high visibility media. We found
that cricket has a great following in our country
and we wanted to explore the possibility of associating
with this sport.
"Starting with in-stadia branding, we moved
on to be the co-sponsor to the Indo-Pak series held
in Pakistan. This turned out to be a great success
for both the Indian team as well as us. To further
strengthen the bonding with the channel partners,
over 400 of them were taken to witness the match.
It was a glorious and unforgetful experience of
visiting Pakistan. This was an event by itself."
Chak De India
IIndia,
the world's largest producer of movies in as many
as 10-12 different languages, provides a great
opportunity for advertisers to reach the masses.
Films are a great entertainment platform for most
Indians. Many FMCGs have encashed this opportunity.
The in-film branding opportunity was used by UltraTech
for the first time ever in the cement industry.
The film Chak De India, promoting women's hockey
in India, became an all-time hit. In the movie
UltraTech was the sponsor of the Indian women's
hockey team. UltraTech branding was all over,
throughout the movie. 'It was a big gamble we
took," says Mr. Puranmalka. "Initially
we were sceptical, with many big banners with
big stars failing in the recent past. After a
lot of deliberation, we decided to go ahead with
this gamble and finally Chak De India almost became
like a national anthem, with India winning the
women's hockey title in reality and our cricket
team winning the inaugural 20-20 World Cup."
Branded
channels
Surging ahead of competition, the cement business
brought in a new concept in cement marketing
UltraTech Building Solutions, a one-stop shop for
all construction needs. "This is a unique concept
and was tested in Rajkot which is one of the fastest-growing
cities in construction in the country today,"
says Mr. Puranmalka. "Advocating our Plan,
Build and Support" philosophy, it seeks to
enhance the shopping experience of customers and
strengthen existing trade partnerships, by upgrading
the service proposition. It offers a wide spectrum
of end-to-end home building solutions, high quality
construction materials and allied value-added services.
As a business model, UltraTech Building Solutions
offers home building solutions from planning to
completion.
Basically, every customer who walks in to UltraTech
Building Solutions outlet receives guidance on construction-related
issues as well as value-added services like Vastu,
usage of budget software to estimate costs involved
for construction, paper clearance procedures, etc.
The customer gets a ready reckoner of information
on how to choose and buy quality construction materials.
With the Rajkot success and with key learning points,
the company intends to open many more outlets across
the country.
Measuring
effectiveness
"Once the goals are well defined we need
to measure the effectiveness of all such initiatives
that are undertaken from time to time," says
Mr. Puranmalka. "We are research-savvy in
our approach. We go into minute details to find
out the cause and effect, keeping the larger picture
in mind." This is true right from the selection
of the brand name UltraTech to ad campaign testing,
media effectiveness and so on. Regular Brand Health
Monitoring studies are undertaken to understand
various critical issues like awareness, usage
pattern, equity indices, psycho-economic mix of
the target group (TG), etc. Mr. Puranmalka adds:
"Recently we initiated and completed a customer
satisfaction survey to understand the expectations
of customers and benchmark with the best in the
industry. Of course there are some insights, which
we need to address internally, but overall we
are happy with the outcome. The results are very
encouraging and you would be glad to know we are
steering ahead of competition."
UltraTech
Concrete:
While
the economy is growing, timely completion of infrastructure
projects has become more challenging. With emerging
technologies, one no longer has to maintain huge
stocks of cement and allied products, create chaotic
environment and increase costs; ready-made concrete
is the answer. The company forayed into the ready
mix concrete about eight years back. With its
first plant commissioned in Hyderabad, ready mix
concrete was sold as a brand, 'Birla Ready Mix'.
True to its tagline 'concrete on call', the company
was able to capture the imagination of customers
and service them round the clock. "The concept
was new then," says Mr. Puranmalka. "It
was more of concept selling than a product. We
had to tailor-make our communication around issues
in comparison with the site mixed concrete, quality
consistency, concrete testing facility, ease of
handling, technology, etc. In a very short time
Birla Ready Mix Concrete became a generic name.
The success of the brand led to the opening of
a few more plants in Hyderabad itself and expansion
to other states pan-India. With the transition
of Birla Plus to UltraTech Cement, even Birla
Ready Mix Concrete was rechristened UltraTech
Concrete'.
"Our UltraTech concrete plants are present
in Mumbai, Pune, Nasik, Nagpur, Ahmedabad, Surat,
Gurgaon, Noida, Jaipur, Chandigarh, Chennai, Bangalore,
Hyderabad, Cochin, Vizag, Ludhiana, Raipur and
Kolkata and many more are coming up," says
Mr. Puranmalka.
Keeping
in tune with the latest technology, UltraTech
Concrete offers speciality concrete like UltraTech
Fibrecon, a fibre reinforced concrete, UltraTech
Free flow, UltraTech colorcon, UltraTech stainless,
a corrosion resistant concrete, and UltraTech
Thermocon. This wide array of choices will help
customers choose the right type of concrete that
suits their construction needs.
UltraTech
Cement has 11 integrated plants, seven split grinding
units and five bulk terminals, including one in
Sri Lanka. UltraTech is India's largest exporter
of cement and clinker. The total cement capacity
of the Aditya Birla Group is 31million tpa.
O.P. Puranmalka: Brand UltraTech
Excerpts from an interview with O.P. Puranmalka,
Group Executive President,
Grasim Industries and Chief Marketing Officer,
UltraTech Cement Ltd.
Why
are you opting for a single national brand?
Cement is an integral part of the Aditya Birla
Group's business and a clear focus area. The integration
into one national brand is proof of that and a
signal of the Group's commitment to take it further.
The new beginning with UltraTech Cement as a national
brand for the Group will not be a departure from
the fundamentals that created Birla Plus. In fact,
it will be an acceleration of that.
We would like to present a common and unified
brand identity across the country. We have therefore
chosen UltraTech Cement as the national brand
for the Aditya Birla Group's cement business.
Presently, we have two power brands in the country,
but they operate in different markets and neither
of them is a pan-India brand, in the real sense.
While both the brands have different identities
and personalities, the core or the soul of both
brands is the same, i.e. the Aditya Birla Group's
lineage, superior product quality, premium cachet,
trust and reliability.
Since the DNA of the brands is same and the core
promise of the brands is also similar, we felt
that we would be better off with one national
brand. With over 25 million tonnes per annum volumes,
we now have UltraTech as the single largest cement
brand in the country. With a single brand, it
is easier to enter the hearts and minds of the
consumer. We feel that combining the strengths
of the two brands and two teams will have a multiplier
effect on the quality of our service and therefore
the brand equity.
Why
have you opted for Ultratech Cement when you have
strong existing brands such as Birla Plus? Why not
vice-ersa?
Once
we internally analysed that there were great synergistic
benefits that accrue to consumers as well as the
companies by transiting to a single national brand,
it was a question of choosing either of our two
national brands, i.e. Birla Plus or UltraTech cement.
This was not easy as both brands enjoy substantially
high brand equity in their respective markets of
operation and have a very high emotional connect
with customers. Both are the most recognised brands
in the category.
Birla Plus came through as a good quality brand
with a very powerful and popular brand name. What
remained peripheral were technology and dynamism.
UltraTech on the other hand came across with a more
contemporary and modern imagery.
We opted for UltraTech as the national brand because
while on the one hand it gives us the opportunity
to strengthen common attributes of a well-known
brand, scale of operations and the Aditya Birla
Group's reputation, it also provides an opportunity
to build on the positioning platform of "expert"
and imagery signifying progress, cutting edge technology
and modernity. The brand UltraTech has extremely
positive associations and awareness even in non-UltraTech
markets such as the north zone.
Why
are you not using the Birla brand
name?
As mentioned earlier, the Aditya Birla Group's
lineage is our core strength and the UltraTech
brand also has benefited from this association.
While
for the product brand name we are not using the
"Birla" brand name, but in all our communication,
whether to mass media like press, television,
outdoor or retail branding, the Aditya Birla Group
lineage comes across very strongly.
In
fact, that is why we used the Jaan Wahi, Pehchhan
Nayi as our campaign theme. It is a change we
are making with great care, as we do not wish
to jettison the strengths we have currently and
move to unchartered territory. The core of Birla
Plus' positioning - trust, reliability and the
Aditya Birla Group's lineage - will continue in
its new avatar, i.e. UltraTech. The change will
add and not subtract from the equation.
Will
there be financial / economical gains due to the
single national brand?
As pointed out earlier, the single national brand
exercise is aimed primarily at developing a common
and unified brand identity across the country.
This exercise is not driven by financial gains.
How
different were the two brands and how do you see
UltraTech evolving post this transition?
Birla Plus had evolved into a significant brand
and it stood for a set of values of simplicity,
smartness and reliability. With our campaigns
of establishing it as Har Nirmaan Ki Jaan we brought
in a bit of gorgeousness and lot of charm into
the brand whereas UltraTech Cement was a brand
on its own without any history. Our brand track
researches suggest that it is probably the fastest
growing cement brand in terms of equity and brand
awareness.
By combining the soul of Birla Plus with the imagery
of UltraTech, the brand will be distinctive and
powerful, have distinctive lineage, with clear
"technology" perceptions. In other words,
we see UltraTech as being truly competitive, differentiated
and having a strong and clear equity. The UltraTech
brand aims to generate its strength by creating
and consistently delivering distinctive performance
benefits with compelling emotional benefits found
in the brand personality.
How
much will change now that Birla Plus will not be
used as a brand? What are the changes being incorporated
after the launch of UltraTech as the national brand?
Nothing
much will change after this brand name change.
Birla Plus will now be known as UltraTech cement
and that is the only change. The same state-of-the-art
technology will continue to provide the same unmatched
quality. The same team of efficient technicians
will manage these production facilities to provide
a world-class product that consumers have been
used to all these years. The same committed and
dedicated field force will be there in the market
to provide the same level of customer care, which
has made this product so loved by consumers.
Therefore technically speaking it is not a new
brand but only a new name for Birla Plus. Nothing
else has changed and hence Jaan Wahi, Pehchaan
Nayi.
What
is the risk that the premium enjoyed by Birla
Plus brand will not be lost in this brand transition?
Since essentially the Jaan of the brand is not
changing and we are only giving it a new Pehchaan,
we are confident that there will be no dilution
in either the volumes or the premium commanded
by the brand.
A
brand, as perceived by the only legitimate judges
- our customers - is the sum of all their interactions
with our company. Every place a customer can interact
with our company is a touch point, and that touch
point affects how we are perceived. A poor experience
with one touch point can negate all the brand
equity we build in other touch points. The premium
is built on the basic characteristics of the brand.
This basic character has its origin in the people
who own the brand, the internal processes that
support the brand and the trade partners who distribute
the brand.
As I have said at various points the only thing
that will change in this entire process of transformation
is the name of the brand and everything else remains
the same. The premium quality, the enormous technological
backing, a dedicated team of technicians and managers
and a commitment to serve the nation was what
made Birla Plus so successful. Added to this were
a team of dedicated, committed and resourceful
trade partners and other service providers. This
combination was responsible for placing Birla
Plus cement so high in consumers' estimation and
that combination is still intact.
Will
you have a common team to look after the brand
and what will the advantages of that?
With a common team looking after one national
brand, we would be in a better position to provide
a synergistic, consistent and superior service
across the country. A common team has already
been put in place internally. These teams are
now building on each other's strengths, providing
knowledge integration and exploiting synergistic
opportunities. We now intend to take this forward
to our team of dedicated, committed and resourceful
trade partners and other service providers.
What
are your major markets and where do you plan to
expand?
With this brand transition of Birla Plus to UltraTech,
the brand UltraTech Cement enjoys a leadership
position in practically all the markets it sells
in. It also becomes the single largest cement
brand in the country with a pan-India presence.
We plan to consolidate our leadership position
in these markets and complete the process of transition
to UltraTech in the next few months. Certain capacity
expansions have already been announced. We will
be adding 15 million tonnes capacity in 2008-09.
Ready
Mix Concrete is a key focus area for us and we
have lined up expansion plans for this business.
How
are you going to generate awareness about the
brand?
Instead of focusing the brand essence on merely
product attributes or brand personality, a conscious
effort is being made to focus brand essence on
a set of touch points through which the brand
can deliver a consistently distinctive and inspiring
customer experience.
We have planned a series of product awareness
launches across the country over the next couple
of months. These ground events will be accompanied
by road shows to create awareness about the product
amongst consumers and trade partners. We will
also organise technical meets with dealers, stockists,
retailers, individual house builders, engineers,
architects, masons and contractors to reassure
them that UltraTech will have the same quality
that they have come to expect in a premium product.
In addition, a brand new television commercial,
an innovative press campaign and creative usage
of outdoor media will also be helping spread awareness
about the new product.
What
kind of marketing spends are envisaged in next
few months?
The strength of such brands is matched only by
the speed at which they are being built. Given
the scope and scale of the brand leverage effort,
an attempt has been made to build a much tighter
link between corporate strategy and brand strategies.
The brand is being seen as an asset that can drive
growth and its positioning reflects not only existing
markets, but also emerging opportunities.
The spending on the brand is being truly viewed
as an investment in a dynamic asset that can be
leveraged into new offerings, markets and audiences.
The spending on the brand will be enough to communicate
the transition and will not be wasteful.
What
was the brief given to the advertising agency and
its creative team? Are there any new promotional
schemes for the next few months?
Since
Birla Plus cement had developed strong personality
dimension, it was decided that UltraTech would
appropriately maintain a focus on the core personality
elements to ensure that there is no dilution in
core equities during the re-naming exercise.
The
agency was asked to design communication at all
touch points to effectively communicate that the
only thing that has changed in this entire process
of transformation is the name of the brand and
everything else remains the same. Hence the campaign
- Jaan Wahi, Pehchaan Nayi.
The brief also ensured that in this process of
transition, none of the values or attributes should
be lost or diluted. The communication had to be
designed in such a manner.
What
is the industry scenario for 2008?
The continued emphasis given by the government
in the recent past on the development of infrastructure
like roads, ports and urban infrastructure like
flyovers, etc. means that cement demand will continue
to rise. Similarly, developments in the housing
(especially rural housing) sector have also added
to the growth of the cement market. This is in
spite of the fact that the per capita consumption
of 110 kgs is below the world average of 356 kgs
and far below that of the Asian economies like
China and South Korea. This provides a tremendous
opportunity and the cement sector is poised for
exponential growth. We may witness continued consolidation
efforts in the industry.
What
are your rural marketing plans?
The various initiatives taken by the government
recently have given a boost to the rural economy.
The rate of growth of the housing sector in the
rural segment is increasing every year. UltraTech
is already well represented in the rural markets
and we are planning various initiatives, which will
help us grow in this sector. For obvious reasons
I am unable to share these plans at this stage.
These will include providing technical assistance
to masons and contractors, teaching them more cost-efficient
construction methods and usage of eco-friendly cement
and cement products.
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UltraTech
unveils a new campaign
What
do consumers expect from a leader?
Everyone looks up to a visionary leader
to understand the possibilities tomorrow
holds. And you have a greater responsibility
to bear when you are Indias largest
cement company.
In the present day context, UltraTech is
playing an important role in the infrastructural
development of the country. No wonder, UltraTechs
every creation is a window to tomorrow.
And an effective communication was needed
to reflect the same.
According to Mr. O.P. Puranmalka, Group
Executive President, Cement Business, Aditya
Birla Group, the challenge was to create
an emotional connect while retaining the
technological superiority. The communication
had to furthermore reinforce UltraTechs
position, cue leadership and take the brand
to the next level.
It was quite a daunting task for Interface
Communications, the advertising agency for
UltraTech, to get the right mix of emotions
and technological superiority that appeals
to everyone right across IHBs to architects
and large commercial establishments.
The agency developed an idea that turned
out to be one of the most distinct and clutter-breaking
films the Indian viewer has seen. It is
also a logical extension to the expert platform
that seamlessly cuts across segments and
takes the communication to the next level
through a simple theme Har
badalte aaj mein, maine kal ko dekha hain.
According to Puranmalka, The film
provides a great mix of emotions blended
with eye-catching technology through superior
graphic work. The communication reinforces
UltraTech as an expert in continuous pursuit
to achieve perfection.
The film has received rave reviews from
everyone in the industry and consumers.
According to Rajesh Saathi, Director, Keroscene
Films, Its the simplicity of
the idea that actually made this a piece
of marvel. Evidently, the campaign
is able to cut across the masses and connect
with people in cities as well as villages.
Thats the power of an idea. And today
along with the leader, every Indian says:
Har badalte aaj mein, maine kal ko
dekha hain.
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