Strategic Pricing in the Cement Industry: An Empirical Study

The epoch of competitiveness in the cement industry has necessitated that a hitherto commoditized product like cement moves forward on the commodity-band band. Pricing decisions, which have direct implications for a strong bottom line of the cement companies, have up till now been dealt with from a conservative angle. It is high time that the industry tackles pricing decisions with a strategic approach. The paper discusses strategic issues in cement pricing in India. The aspect of cartelization and its role in pricing in the cement industry has being revisited. Based on extensive literature survey and discussions with the cement-marketing professionals, factors ideal to cement pricing have been identified. An empirical study has been made in this context on the executives and distribution network of a prominent cement company. The study is an attempt to develop a conceptual framework for further extensive research work in this crucial marketing-mix element of the cement marketer.