India is the second largest cement producer in the World, after China and the production capacity is expected to reach 550 Million Tonne by 2025 with large concentration in Western and Southern Parts of the country. The Industry is expected to grow at 9% CAGR between FY18 to FY20, on the back of increased spends on roads and railways, push towards affordable housing by central government and materialization of pent-up demand.
CASE STUDY
Insta Cement Ltd enjoys 40 percent market share in the western parts of the country, along with a value premium. It has a strong consumer-based brand equity developed over a period due to its quality consistencies and delivery commitments. The company enjoys 26% market share pan India and has built up its long term strategy to penetrate in rural markets.
Product A – It is prevailing in the cement industry and commands a substantial portion of the overall sales in western region as it is mostly used for all types of construction activities. It’s been sold within the range of INR 314-320 to customers.
Product B – It is a technologically advanced version of Product A as it ensures better strength and longer term durability. The company commands approximately a 30% premium in the market over Product A. The company used BTL (Below the line) marketing strategy where word of mouth advertisement was focused upon rather than advertising at large scale since the company enjoyed a high reputation and trust in the market amongst its Channel Partners, Influencers, and Customers.
CURRENT SCENARIO
The company is facing the following problems in the market:-
 It has been 2 years since PRODUCT B has been introduced in the market but the sales is not satisfactory. Since it’s charged at premium, most of the dealers face problem in selling the product to price conscious contractors as well as the individual house builders (House Owners).
 Sales team of Insta Cement Ltd. helps to create awareness of PRODUCT B amongst the retail customers but, retailers fail to convey the difference between PRODUCT A and PRODUCT B during point of sale. Also, customers, being price-conscious, are not willing to pay for the price differential in the 2 products.
 Due to the low demand, retailers don’t stock PRODUCT B and order it on demand. Thus, company is bearing hefty logistics expenses on supplying PRODUCT B in small lot sizes directly from the plant.
Thus, despite enjoying a substantial brand equity, sales of the premium product have been below expectations. On the other hand, competitor Shakti Ltd which has a market share of 25 percent has introduced a similar premium product, before the launch of PRODUCT B by Insta
Cement Ltd. The market response for this product has been relatively better. Their promotional strategy was ATL to target the customers.
As a sales executive how would you improve the brand image to sell this premium product in a commodity driven price sensitive market.
You can refer to following data:-

Particular	Product A	Product B
Price	320	365
Total Logistics Cost	80 per bag	90 per bag
NCR	125 per bag	175 per bag
Promotional Activity	0.80 per bag	1.25 per bag