Cemex is a global building materials company and supplier of cement, ready-mixed concrete and aggregates. In the UK it also supplies asphalt, roof tiles, concrete block solutions and railway sleepers.
Challenge
One of its core business objectives was to drive product and service differentiation to create and sustain higher margin products, specifically within the concrete market. An important part of its 2007/8 strategy was to develop and launch a new self-compacting concrete product for the UK market. The product was identified by rating product categories according to market dynamics and innovativeness of existing products, size and growth potential of the category and of a new value added product, margin opportunities for a new product and the ability to sustain margins for the new product.
Cemex already had a product in this category, but it was not branded or communicated in a customer focussed way, and there was low awareness and take up in the construction industry.
Solution
First of all, market research was conducted across the value chain to determine decision makers versus influencers and define key target groups. Each target group’s perceived benefits, information needs, barriers and issues were also identified. Further research was also conducted to test the initial product concepts with each target group.
Engineers and contractors were identified as key decision makers, whilst architects were the main influencers, The key benefits for each target group were identified by analysing perceived benefits in a perceptual map. Research illustrated a clear need to position the product differently for the two target groups, due to their differing needs and perceived benefits. The perceptual map provided a foundation for the positioning for each target group.
To develop relevant and effective communication material and plans, the kind of information that each target group would need, and any barriers or issues they might identify, was carefully considered. For example, architects might identify flexible design options as a need, whereas engineers and contractors were more likely to be focussed on noise reduction and health and safety issues.
The brand name Evolution was chosen to reflect the revolutionary properties of the self compacting concrete, and because Cemex believed it positioned the product as the natural successor to traditional product formats.
Communications were focussed around the concept of “flowability” – considered to be the brand essence of Evolution. For architects, the message was that it turned bold ideas into concrete, creating flowing lines and spaces. For contractors and engineers, Evolution could speed up workflow on site.
The communication was tailored to each target group; the guiding principles being to lead with design concepts for architects, and building and construction benefits for contractors and engineers. Ultimately, the communications programme sought to influence architects to specify the new product for contractors to purchase it.
Specific advertising and collateral were developed based on research findings and aligned to the brand essence and positioning. Media was selected based on the ability to build fast, cumulative coverage among target groups, its editorial profile and cost per thousand cover. Print and online media was split 60/ 40.
A banner was added to the webpage aligned to the ad campaign, with a link to a new campaign microsite. The microsite contained more relevant content and had reciprocal links back to specific product information. A dedicated PR campaign gave leverage to advertising messages, supported by an ongoing editorial relationship programme and online PR syndication activities. A case study was also turned into a video to demonstrate how the product could be used to solve a complex construction challenge.
Internal activities included extensive product training and detailed commercial plans for the launch, with clear targets for each target group. Print and online advertising had the same theme and key messages, with format and copy tailored for each media.
Employees were informed of the campaign via an internal newsletter and site communication material such as framed posters and a 22 metre long stairway banner at the head office. The ad campaign was also translated into an exhibition stand which was used at customer events to promote the new product.
A pilot launch – commencing with online awareness and prospecting mailers, proceeded the national launch which was supported by an integrated campaign including trade press advertising.
Results
Sales of Cemex increased by 53 per cent year on year – by £5.4 million. With a 25 per cent margin the campaign achieved a ratio of 19:1 incremental profit against investment – the total cost of the campaign being £70,000. It also prompted ad recall from 6 to 18 per cent and increased brand awareness by 5 per cent
