Summary
Lafarge manufactures two mainstream cement products, ‘GPC’ and ‘Mastercrete’. Mastercrete is superior to GPC, but in the past end‐users have not perceived any significant difference between the two.
Lafarge planned to narrow the gap in the audience’s perception of Mastercrete so that the brand could command a premium price. The approach was to conduct extensive research to identify new attributes that could be incorporated into the Mastercrete brand in order to achieve a premium position. The key insight was that cement wastage through poor packaging was the main pain point.
New attributes of water resistant and tear proof plastic packaging were identified. Conjoint analysis was conducted to assess end‐user willingness to pay for the identified attribute. Conjoint analysis showed plastic packaging was a new attribute, which end‐users would pay a premium for.
Plastic packed Mastercrete was rolled out nationally in 2008, supported by marketing communications. The reach and coverage of the communications campaign was extensive, and a wide range of marketing elements were utilised.
Customer feedback and the impact on the brand have been hugely positive.
Company Information
Lafarge is the UK market leader in building materials offering a range of products for many different
applications. Lafarge manufactures two mainstream cement products, ‘General Purpose Cement’ (GPC) and ‘Mastercrete’.
Mastercrete launched in the mid 1990’s as a premium cement product with enhanced properties compared to basic GPC. Compared to GPC, Mastercrete was successful in achieving significant market share, but without any premium pricing or additional margin contribution (£/tonne) being obtained. Both products were initially supplied in paper bags, as were all competitor cements.
Challenges and Objectives
Market Issues
During the early 2000s the cost to produce Mastercrete increased to the extent that the margin
contribution had dropped below that of GPC. Consequently, in 2003 a price premium of 2 per cent compared to GPC was introduced, but with mediocre results as the marketplace didn’t perceive anyquality difference between Mastercrete and GPC, even though Mastercrete is a superior product.
Objectives
Narrow the gap in the audience’s perception of the quality of Mastercrete so that the brand is able it to regain the premium position it justifies in the marketplace, and ensure that a premium price and
improved contribution compared to GPC are obtained.
Ensure that the current volume share of Mastercrete within Lafarge’s portfolio of packed cement
products is maintained or increased, as well as within the packed cement industry as a whole.
Challenges
To warrant a premium price without decreasing sales volumes, Lafarge must ensure that value perceptions have changed sufficiently. If Lafarges increase the price of Mastercrete without significantly adjusting brand (and value) perceptions, sales volume will fall.
Measurement of Results
• Compare price premium increase and contribution per tonne
• Compare Mastercrete per cent penetration and market share
• Customer satisfaction
Strategy and Audience
Audience
Packed (bagged) Mastercrete is primarily sold via builders merchants, as well in DIY outlets.
End‐users are building trades‐people (e.g. jobbing builders and bricklayers) and professional
DIYers.
Their purchase decision hierarchy for building materials is usually:
1. Price
2. Quality (workmanship and usability)
3. Convenience (often use the closest stockist)
4. Environmental (low concern, unless financially beneficial e.g. waste reduction leads
to savings).
Approach
Conduct extensive research to identify new cement attributes that could be incorporated into the
Mastercrete brand in order to achieve a premium position in the marketplace.
This research involved a review of the requirements of the audience to improve understanding of:
• Product usage
• Product development opportunities
• Packaging
• Pricing.
Research Methodology
Research aims included:
1. Understand the problems end‐users have when purchasing, transporting and working with cement
2. Identify and gain feedback on packaging solutions to overcome these problems.
In order to fully understand the requirements and opportunities a detailed research programme was designed, which included:
• Focus groups (24)
• Usage and attitudes study
o In‐store interviews (239)
o Telephone interviews (480)
• Conjoint analysis (400 interviews).
Results
Results showed that end‐users valued plastic packaging as the most significant new attribute.
A new marketing strategy for GPC and Mastercrete was then developed revolving around new and clear differentiation points for the Mastercrete proposition, by putting Mastercrete into waterproof and tear resistant plastic packaging, and leaving GPC in paper packaging. In this way the Mastercrete brand could be reinvigorated via a unique and visible differentiator in the marketplace.
Communications and Media
Timescale
Plastic packed Mastercrete was rolled out regionally with national availability only from Q2 2008. Extensive and innovative marketing communications were used for the market launch in 2008 and continued through 2009, 2010 and 2011.
Market Launch and Communications
The launch campaign in 2008 focused primarily on the plastic packaging, as research highlighted water damage to cement as the main pain point. The reach and coverage of the
campaign was extensive, and a wide range of different marketing elements were utilised including Radio, DM, PoS, PR, Out‐of‐Home and Press. The concept leveraged the British public’s pessimism about British weather, saying “Whatever bad weather Britain throws at
you; your cement will be safe, if it’s Mastercrete”.
In 2009 Lafarge decided to increase awareness of Lafarge as a cement brand. Since then marketing
communications have had an underlying brand migration objective, which was to increase awareness of Lafarge as a cement brand. Therefore Mastercrete messages were communicated within the ‘Lafarge.
THE name in cement’ concept, using simplistic imagery and clear cut‐through copy to inform the target audience about the benefits of the innovative plastic packaging and the superior benefits of the Mastercrete product. These
communications rolled out in 2009 and continue to do so in 2011, ensuring Mastercrete and
its benefits continue to remain at front of mind.
Results
Commercially Mastercrete has been a great success with increasing market share despite a significant price premium and increased profit level.
Client testimonial
“All I have heard from my customers is ‘I wish they’d done it years ago’. Mastercrete in plastic is a real revolution – it is making our lives and our customers’ lives so much easier,
saving us valuable time and money.” – Steve Barton (Builders Merchant, department
manager).
