1. What kind of branding challenges did they face?
* Concrete industry is a "low growth, high asset requirements and unpredictable demand"
* Concrete industry was seen as "a cyclical commodity industry". As the product’s characteristics have not much difference and can be substituted, it is challenging for the company to differentiate themselves from competitors in terms of services, logistics, etc.
* Therefore, marketing and branding was probably not seen as a valuable to the industry because customers were seen as cost-conscious, fickle and provided an unstable demand
2. How did they meet and overcome those challenges? (Key Success Factor)
* Cemex CEO, Lorenzo Zambrano saw that cement was actually a 'culture industry' and that 'brand positioning plays a major role in market share"
* He did the following:
* COMPANY:
* Create a business model:
* Focus on core business
* Provide customers with best value proposition. (What are the value propositions of Cemex? High-quality product, durability, as perceived in the market?)
* Growth through integrated positions
* Allocate capital effectively & wisely
* Improve efficiency throughout the business
* TECHNOLOGY:
* Applied IT & e-business ideology
* Cemex seen as a technological leader in the industry. (How does IT capability help the company? Is it in terms of logistics and marketing communication?)
* Now provides consulting services, Neoris, by leveraging its expertise in outsourcing, IT, management services, and investment in emerging technology.
* EMPLOYEES:
* Strongly focus on Developed right behaviors & values in employees
* MARKETING:
* Focused on branding efforts to create brand loyalty
* Product branding under the Cemex Umbrella
* Endorse...
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