RBP020L061A Strategic Marketing Assignment Sample
Module code and Title: RBP020L061A Strategic Marketing Assignment Sample
Part 1: Introduction and Product Description
Concrete is the most essential raw material used in construction, especially for houses that are built for durability. However, Concrete is also a large source of carbon emissions in the global context. It has been identified that for producing each pound of Concrete 0.93 pounds of carbon dioxide is produced which is quite harmful to the environment (Cement, 2022). This is a major problem linked to global carbon emissions as 9% of carbon emissions in the global context are a direct result of global cement production which burns a lot of coal (Thinking the future, 2022).
Concrete, on the other hand, requires a significantly large amount of water to settle down (Concrete Network, 2022). Thus, if the negative impact of cement and Concrete are combined then the environmental impact turns out to be quite disastrous. On the one hand, cement products cause carbon emissions while on the other hand Concrete leads to a large amount of water waste.
As a result, Ashcrete can be proposed as a viable substitute for Concrete which is more durable, and strong and 97% of Ashcrete is made of recycled raw materials (Beyond Homes, 2021). Therefore, not only the production cost of Ashcrete is lower than that of Concrete but the fly ash needed as a major raw material can be procured from power plants.
The raw materials of Ashcrete are not only easily procurable but are also environment friendly, moreover starting Ashcrete plants would also help in effective waste management of ash which is a major by-product of several industries which includes power plants and incineration plants (Beyond Homes, 2021). The ash generated from these factories is either used for landfills or purchased by cement factories. However, as already identified above, cement production causes 9% of global carbon emissions, thus if this ash is used by Ashcrete plants rather than Concrete plants then it can be used for making a more sustainable alternative to Concrete (Thinking the future, 2022).
Part 2: Critical Analysis of the Market Context
Market trends
Sustainable materials are environmentally friendly alternatives to traditional building materials. Among the most common green construction materials are natural material, timber, recycling plastic, stone, Ashcrete and others (Eze et al. 2021). The goal of employing these components is to build an energy-efficient construction that can help in maintaining nature’s ecological balance. In 2021, the global green construction material market was worth around $280.5 billion (IMARC, 2022).
Moreover, according to the recent IMARC (International Mining and Resources Conference) group report, the market is expected to reach approx. $523.7 billion in the next 5 years while having a growth rate of 11.6% (IMARC, 2022). Ashcrete is designed to fulfil the high demand for Concrete in the construction of long-lasting and strong structures.
Ashcrete is a composite material composed of borate, fly ash, chlorine compound and bottom ash (Rethinking the future, 2022). Since, approximately 93% of the resulting substance has been made with recycled material, it can be replaced with cement that is harmful for nature and for the environment (Rethinking the future, 2022).
As individuals are becoming more conscious of the deteriorating environmental conditions, there has been a rise in the green building construction both in the commercial and residential sectors. This has increased because people are becoming more motivated towards a sustainable way of leading a life (IMARC, 2022). Furthermore, because buildings are addressing a variety of environmental issues such as changing climate conditions and pollution, governments are also taking initiatives for green construction.
For evidence, in the UK, the government has imposed the BREEAM (Building Research Establishment Environmental Assessment Method) rating scale for green architecture (IMARC, 2022). Theses evaluation and certification system has been anticipated to highlight the advantages of green constructions utilising the context of Ashcrete resulting in favourable growth projections.
Competitors and positioning
The competitive landscape of the market is highly efficient with few key players such as Bauder Limited, Alumasc Group Plc, Kingspan Group plc and others (IMARC, 2022). Bauder Limited has expanded in order to become Europe’s leading supplier and producer of modern water resistance, green roof, heat resistance along with photo-voltiac roof systems (Bauder, 2022).
They have a presence throughout Europe with other factories operating in Germany and other subsidiaries in 16 other countries (Bauder, 2022). With all these green initiatives in the organisation, Bauder Limited is having a turnover rate of 40% (Bauder, 2022).
On the other hand, Alumasc Group Plc offers high quality, long-term low carbon products and systems that significantly influences in integrating and maintaining strong relationships with the customers and co-workers. With this green perspective in the organization Alumasc Group Plc are having specification and regulation with an environmental system and solution that accounts for more than 80% of their group revenue (Alumasc, 2022). Apart from this, export revenues are significantly anticipated to have a 15% of group sales that are specifically targeted in selected markets (Alumasc, 2022).
Moreover, Kingspan Group plc offers a high-performance insulation of building a better mission statement that significantly accelerates while improving the perspective of well-being of people and planet (Kingspan, 2022).
Referring to this, they are having a Planet Passionate 2021 progress where they have recycled 843 million PET (polyethylene terephthalate) bottles into their process with a 13% reduction in company waste to landfill (Kingspan, 2022). Apart from this, there has been 4.3% reduction in greenhouse gas emission with 4.8% on-site generation of renewable energy and 20 million litres of rainwater harvesting (Kingspan, 2022).
Consumer behaviour theory
Current consumers are significantly influencing their focus on sustainable practices and green initiatives in order to save the planet and environmental future (Kumar et al. 2021). In this connection, referring to this motivation-need theory also termed as “Maslow’s hierarchy of needs” can be interlinked with the support of consumer behaviour perspective. This theory refers to how individuals act according to the satisfaction and fulfil their needs while prioritising physiological, safety, social, esteem and self-actualization (Guo et al. 2019).
Referring to the theory, sustainability and green perspective to save nature and addressing the climate concern is the main motivation for consumers that significantly crafts their purchasing prospect from a particular brand. In this connection, it can be stated that customers are engaging with this habitual purchasing from a sustainable perspective, and they want to be productive with green consideration while influencing a sustainable environment to save the future generation.
Issues and opportunities
Referring to the issues, Ashcrete utilisation is the consideration of high health risk, because utilisation of fly ash is derived from coal. Moreover, even the raw coal contains the maximum amount of toxins and heavy metal that can be dangerous for the individuals who are working in the construction sites (Vardhan et al. 2019). The Environmental Protection Agency (EPA) is still not sure about the fly ash product such Ashcrete (Beyond Homes, 2020).
In addition, there is an issue of slow strength gain, as Concrete transformations from liquid to solid require a few hours after pouring water. However, the context for Ashcrete is different, as it requires less water and takes a long time to strengthen (Beyond Homes, 2020). This can cause unwanted delays in the construction projects. Furthermore, seasonal limitation is another issue, as utilisation of fly ash content can make matters in the low temperature that can significantly increase the overall setting of the strength gain process.
In terms of opportunity, MSW (Municipal Solid Waste) Incineration Bottom Ash and Combine Ash are significantly transformed in order to composite a material Concrete with utilisation of latest technologies (WDC creative, 2022). These are used to construct bridges, roads, marine structures while contributing to the circular economy with 100% sustainability (WDC creative, 2022).
Part 3: Segmentation, Targeting and Positioning (STP)
Segmentation
B2B (business-to-business) market segmentation emphasizes conducting direct business with companies. In contrast, B2C (business-to-customers) market segmentation consists of the idea of conducting business directly with consumers (Nasution et al. 2019). Considering the idea of B2B and B2C market segmentation, Cemex would consider both strategies for its new product, Ashcrete to increase its sales.
Specifically, the organisation would take initiative to do business directly with construction companies who can buy the product every now and then; hence, the organisation would segment 80% of overall business in the form of B2B. This is because construction companies are considered the most potential buyer of Ashcrete.
In this regard, it is observed that in the global construction industry activities related to Green building have increased significantly in recent years. For evidence, it is observed that an estimated 47% of global companies had 60% of their projects as green building projects in 2021 (Statista, 2022). Relating to this, in green building projects sustainable materials like Ashcrete have great potential to be used. Hence, it would be beneficial for the organisation to focus on B2B for increasing the sales of Ashcrete.
On the other hand, concern regarding sustainability and environmental aspects has increased among global consumers in this current era (Hussain et al. 2019). Hence, the psychographic segmentation of Cemex would be environmentally aware customers. In particular, the organisation would also be focused on operating approximately 20% of its overall business of the new product in the form of B2C or direct selling to consumers. On the other hand, the geodemographics segment of the company would be the urban population for selling Ashcrete.
The target market and why they should buy the product
The company would target urban consumers as well as builders in order to sell the new product. In urban areas, the use of cement for construction projects has been resulting in high demand for cement, which further increases carbon emission rates.
Relating to this concern, it is observed that CO2 emissions from cement manufacturing globally have significantly increased in recent years and became approximately 1,673 million metric tons in 2021 (Tiseo, 2022). Hence, the concern regarding the use of more sustainable materials like Ashcrete has increased among urban consumers as well as builders.
Profile and persona of target market
| Demographics and story | Name: Daniel Jones
Gender: Male Age: 35 Job: Construction project manager Annual income: $50,000 Daniel has a fascination with new and sustainable materials for construction. |
| Profile | ● Daniel is a socially and environmentally responsible person
● Loves to involve in eco-friendly construction projects |
| Motivations for using Ashcrete | ● Ashcrete is one of the most potential substitutes for traditional Concrete
● He believes that with the increasing use of sustainable materials like Ashcrete GHG emissions can be reduced |
| Goals for using Ashcrete | ● Reducing CO2 emissions from construction projects |
Table 1: Customer persona
Positioned
Positioning the new product has the potential to benefit an organisation to get favourable responses from the target audience (Huang and Rust, 2021). In terms of positioning the new product, Cemex would offer the new product with a possibly low cost along with emphasizing sustainability. The organisation would be focused on offering the product, Ashcrete, which is a highly sustainable alternative to Concrete and stronger than regular Concrete at a possibly low cost in order to get favourable response from the target audience including companies as well as individual consumers.
Part 4: Recommended Extended Marketing Mix
Products
On the basis of the product description, Ashcrete is considered to be an environmentally friendly alternative to Concrete for the usage of construction (Padala et al. 2021). This product is basically a mixture of fly, ash, bottom ash, and chlorine compound that enables the product to be more effective in terms of sustainability. As compared to the regular Concrete utilised in construction work throughout the globe, Ashcrete is considered to be much stronger and more durable in terms of longevity.
This particular product also focuses on reducing the overall wastage of water as it does not require any type of water mixture and improves the paste flow behaviour in the construction workplace (Premana and Kerdiati, 2022). One of the primary advantages of this particular product is its capability to reduce the permeability to aggressive chemical and water usage. Thereby, Ashcrete can be considered a potential product in the market of construction usage all around the globe.
Place
As mentioned above, it has been found that the usage of Ashcrete is mainly utilised for the replacement of regular Concrete in the construction sector. Therefore, the potential market for this particular product is the construction industry as it has a consumption of huge Concrete requirements throughout the globe.
The construction sector also includes markets such as the cement industry, the building industry and the manufacturing industry of roads and other infrastructure around the globe (Miller et al. 2021). Hence, this product can be a potential alternative in the market of construction and might be utilised by several industries all around the globe on the basis of its sustainable standards. Thus, the product is considered to have a huge market and might potentially become a prioritised product all around the globe in terms of its advantages towards the environment.
Price
According to the pricing strategy for Ashcrete, competitive pricing is the most promising strategy for pricing this particular product in the global market (Taleizadeh and Sadeghi, 2019). Because the notion of this specific product is relatively new to the construction business, current alternative items have a significant advantage due to their long market presence.
As a result, it is critical and advised that the makers of this specific product make the cost competitive in comparison to other choices on the market. By using this marketing strategy, the manufacturer will be able to access the client base of the current alternative goods in the building industry. Regardless of minimal income, the competitive price plan will allow the product’s makers to become competitive and increase their total product recognition in the market.
Promotion
Social media marketing is the most promising marketing method that may be used to improve Ashcrete’s overall position in the construction industry. The key benefit of utilising social media marketing approach is that it will allow manufacturers to boost general awareness about the product within the targeted industry (Li et al. 2021). For example, it will aid manufacturers in engaging with a diverse audience of consumers from throughout the world.
However, social media marketing will not only aid in growing product awareness, but will also aid in improving product exposure in the competitive market environment of the construction business. The use of social media marketing strategies will also assist Ashcrete firms in keeping marketing costs low, hence cutting total operating costs. As a result, it will aid them in aligning their whole operations with the price strategy outlined above in order to have competitive pricing in the construction business.
People
Fernando A. González has been the company’s leader since 1989. Starting in 2009, he has concentrated on expanding the company’s reach based on a variety of locations, including Asia, Europe, and Oceania (Cemex, 2022). In preference to the people of the company, it has been found that the initiative of this particular product has been attributed to the people that they employ based on their skills, knowledge and experience. Each and every individual within the workplace of CEMEX UK has been considered to focus on increasing the safety of living and focuses on exceeding expectations within the workplace (Cemex, 2022).
In terms of achieving greater success based on the organisational objectives, the company is mainly focused on providing significant training and development programmes for both the employees within the workforce for better improvement of products manufactured by the company. The company also focuses on ensuring that each and every employee within the workforce is focused on ensuring personal satisfaction. Therefore, each and every individual within the workplace is attributed to the development of Ashcrete.
Physical evidence
On the basis of physical evidence, the company should focus on advertising the product packaging and designing ready-to-use material as an alternative to the Concrete mixture required for construction work. In terms of recommendations Orr (2020), the company should focus on developing a highly advanced concept that will help them to attract the construction sector to start utilising the Ashcrete introduced by the company.
Based on the usage and requirement of this particular product, it is recommended that it is not important for the company to focus on ensuring that packaging is considered to be the most important factor in terms of showcasing the product to their end consumers.
Process
In terms of process, one of the primary initiatives that need to be focused on by the manufacturers of Ashcrete to enhance their overall reach within the potential sectors around the globe is to focus on market distribution. However, there are two basic types of market distribution methods such as direct distribution as well as indirect distribution (Lind et al. 2022).
Cemex might focus on adapting to the direct distribution method as it is going to provide them with sufficient capabilities to reach potential customers in the global market. On the particular method of direct distribution, it is going to provide them with the ability to collect valuable data on customer buying habits (Laato et al. 2020). Hence, it will not only provide them with the ability to understand the customer requirements within the market but will also enable them to develop their products as per the customer requirements.
Part 5: Discussion of Implementation Issues
Issues relating to coordination with different departments
The above discussion has made it clear that the use of Ashcrete can influence High heels risk due to the use of fly ash, which is delivered from coal (Vardhan et al. 2019). Therefore, there is a potential for rising conflicts among workers with organisational managers, as workers may reveal their health concerns in a way of protest. However, this issue can be influenced by a lack of coordination among different departments such as human resources (HR), operation management, production, and others.
Internal Marketing
Internal marketing refers to promotions of organisational products and services objectives to employees within the workplace, which is beneficial for creating a strong organisational culture that reinforces employee engagement (Frye et al. 2020). Hence, the HR department of Cemex needs to be focused on the internal marketing of Ashcrete.
HR managers should take initiative to foster open communication with employees by informing them about the pros and cons of Ashcrete. This is because properly communicating with workers regarding the product and its effectiveness has the potential to impact their perception of the product and help them to understand the objectives of the organisation.
Resource and capabilities required to implement the selected marketing strategy.
The chosen marketing strategy is social media marketing for which along with financial resources and marketing expertise, social media tools and updated technologies would be the most required resources. For example, the use of chatbots on social media platforms can help an organisation to quickly solve queries of customers regarding the product (Zečević et al. 2020). Along with that, capable marketing managers are also required for implementing the chosen marketing strategy.
However, in social media marketing, Cemex can witness challenges to engage customers as expected to make them aware of the product and increase its sales. This issue can be overcome through the creation of engaging content, which is beneficial for increasing brand recognition along with creating awareness regarding the new product (Bilgin, 2018). Lastly, through the use of the social media marketing strategy, the organisation would be able to create adequate brand awareness and increase the sales rate of Ashcrete.
Conclusion
Concluding from the above analysis of the market and effectiveness of ash grey as a viable replacement for Concrete it can be implicated that Cemex can make use of its existing resources for the development of Ashcrete. Moreover, considering the above advantages of Ashcrete over Concrete it can be stated that it would not only benefit the environment but would also be an acceptable product for the target customers. The above study has helped in understanding some of the major market trends which indicate various opportunities for Ashcrete to be used as a viable replacement for Concrete.
However, there are also issues that have been identified due to which it is also crucial for the HR department to convey the safety concerns for employees and measures to them through internal marketing for helping them to feel safe to work. Moreover, effective marketing has been identified as a viable strategy to minimise any kind of risks that can affect the products development, marketing and distribution. Thus, considering the various advantages and opportunities Ashcrete currently has, Ashcrete can foster its growth over Concrete.
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