What is segmentation strategy of a cement company?

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What is segmentation strategy of a cement company? A Cement company may obtain its segmentation strategy as follows: 1. Understanding needs and preferences of consumers -- Having housing, infrastructure, and commercial construction, as demand drivers, the company analyze the needs and preferences of consumers in these sectors. 2. Grouping customers based on their needs and preferences -- Customers with similar needs and preferences can be included in one segment. 3. Targeting the segment that the company can best meet the needs and preferences of - The Company should target the customers, of which it can meet the needs and preferences. i.e. customer needs higher- strength or low price 4. Branding the commodity -- Though being a commodity product, branding is important for a cement company. The company needs to position its brand among Architects and Builders rather than household individuals. 5. Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment.

Cement is one of major industries of Pakistan. Pakistan is rich in cement raw material. Currently many cement plants are operating in private sector. Pakistan Cement Industry has huge potential for export of cement to neighbouring countries like India, U.A.E, Afghanistan, Iraq & Russian States. There has been a robust growth of cement demand seen both in domestic and exports market during the financial year ended June 30, 2007. The industry achieved an overall growth of 32% with domestic demand of cement increased by 24.95% whereas the exports increased by 111.86%. The overall growth achieved by many cement factories for the year under review was 111.29% consisting of domestic and export markets at 71.02% and 335.12% respectively.

Pakistan Cement industry has been successful to capture export markets of various GCC and African countries which are new markets for the Country other than the conventional export markets of Afghanistan and Iraq. Browse Major Pakistan Cement Plants in left menu

Cement Manufacturing Process

1. The cement manufacturing process begins when limestone, the basic raw material used to make cement, is transported by rail to the Edmonton plant from the Cadomin limestone quarry 220 kilometres west of Edmonton.

2. The limestone is combined with clay, ground in a crusher and fed into the additive silos. Sand, iron and bottom ash are then combined with the limestone and clay in a carefully controlled mixture which is ground into a fine powder in a 2000 hp roller mill.

3. Next, the fine powder is heated as it passes through the Pre-Heater Tower into a large kiln, which is over half the length of a football field and 4.2 metres in diameter. In the kiln, the powder is heated to 1500 degrees Celsius. This creates a new product, called clinker, which resembles pellets about the size of marbles.

4. The clinker is combined with small amounts of gypsum and limestone and finely ground in a finishing mill. The mill is a large revolving cylinder containing 250 tonnes of steel balls that is driven by a 4000 hp motor. The finished cement is ground so fine that it can pass through a sieve that will hold water.

5. The cement manufacturing process consists of many simultaneous and continuous operations using some of the largest

moving machinery in manufacturing. Over 5000 sensors and 50 computers allow the entire operation to be controlled by a single operator from a central control room.

Production & Innovations Cement Plant The cement plant operating in the Fauji Cement is one of the most efficient and best maintained in the Country and has an annual production capacity of 1.165 million tons of cement. The quality portland cement produced at this plant is the best in the Country and is preferred in the construction of highways, bridges, commercial and industrial complexes, residential homes, and a myriad of other structures, fundamental to Pakistan's economic vitality and quality of life. Contract With Germans In line with the Cement Industry, Fauji Cement has signed a contract with Polysius, a German cement plant manufacturing firm for installation of state of the art, the largest single line (7200 tons per day of clinker) ever commissioned in Pakistan. Meaningful expansion will help the Company to expand its market share. The plant is scheduled to be commissioned likely by the end of July 2010. RDF(Refuse Derived Fuel) In pursuance of its commitment to produce cement under stringent environment friendly conditions, the Company has taken the lead by installing first ever Refuse Derived Fuel (RDF) Processing Plant at a cost of Rs. 320 Million. This project acts as a beacon to the entire industrial sector of the Country towards an environment friendly production, RDF is not only providing economical fuel to the Company but also contributing towards solving the problem of Municipal Garbage Disposal. Minimum 300-400 tons of garbage is being lifted from each garbage dump located at Rawalpindi and Islamabad. In addition, the other important advantages include reduced use of fossil fuel, lowering of green house gases in the atmosphere and availability of compost fertilizer as a by product.