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Dangote raises the bar with 3X cement

By on March 31, 2014

In a new move to consolidate its competitive advantage, Dangote raised the bar last week by introducing ‘Dangote 3X Cement’, which is designed to give more value to the end users, as well as positioning the brand ahead of competitors. Raheem Akingbolu reports

Promoters of Dangote brand scored another first last week in the cement market with the introduction of ‘Dangote 3X Cement’. The new offering, which comes in a 50 kilogramme bag of 42.5R grade, was said to be the first of its kind in the country.

Group Managing Director, Dangote Cement Plc, Devakumar Edwin, said, at the unveiling ceremony put together to usher in the new offering into the market, that it was conceived to strengthen the quality of the brand. Corroborating the MD’s position, the Group Chief Marketing Officer, Mr. Oare Ojeikere, said the cement was coming amid expectations from the Mortgage Refinance Company where developers can access funds on a single digit interest rate.
This, he said, was an improvement on the prevailing practice where banks give funds at double interest rate, which has stifled construction and home ownership, but also widened the housing gap to over 17 million units. He said the new product is timely as it would attract new users because of the need to check building collapse.

Since the launch, not a few analysts have described the move as being strategic, given the current clamour among stakeholders in the building industry for stronger cement that would help block molders and developers forestall cases of building collapse.

Repositioning Strategy
To register the refreshed brand in the consciousness of the consumers, its spin doctors cleverly coined a superlative tag – “Big Oga,” which is being used in its communications. Another creative step that has been taken to further entrench the unique proposition of the new product lies in the way the 3x is decoded to mean; xtra strong, xtra life and xtra yield.
To analysts, the beauty of the presentation of the three features lies in its simplicity. As a product that appeals to every segment of the market, the language is soft and can be understood by even the fairly literate end users. This is also replicated in its television commercial and print Ad, which cut across all media, with different languages to take care of specific audience. To reach stakeholders like bricklayers, pidgin english is used adequately while the elites who are the decision makers have the English version to rely on.

According to the company’s managing directors, the extra strength and rapid drying property of the product makes it the first choice for builders and contractors.
Honorary Adviser to President, Dangote Group, Joseph Makoju, said the product came from long years of painstaking research and development. He said a bag of the new 42.5R variety is equivalent to one and half bag of the regular bag and advised the public to patronise the new brand for better results.
Executive Director, Stakeholder Management and Corporate Communications, Ahmed Mansur, an engineer, said the product was set to meet the needs of its customers. He said: “Every product we produce is to specification. The 3X brand is a market leader as we put in a lot of innovations to not only meet current demands, but also future needs.”

Endorsement
If there is anything again the company got right in the manner the new entrant was ushered into the market, it was the decision to carry along all stakeholders. To prove to the world that it meant well for the industry, the company involved; the Standard Organisations of Nigeria, Association of Housing Corporation of Nigeria, Bricklayers Association and Block Molders Association.
Director-General, Standards Organisation of Nigeria (SON), Dr. Joseph Odumodu, said the Dangote 3X brand met the standard specification for 42.5R cement. The SON DG, who was represented by an engineer in the civil/building department, Mr. Onipade Adeoye, congratulated Dangote Cement for the extensive research and development behind the new product and encouraged others to do same.
Mr. Toye Eniola, who represented the Association of Housing Corporation of Nigeria, said his association was delighted to be associated with the new development and promised that his members would continue to collaborate with Dangote Cement.
To the end users, who were represented by the bricklayers and block makers, the new development is a succor as it will give them the confidence that they are working with the best cement.
President of the Lagos State Bricklayers Association, Deacon, Abel Olukayode, said: “Without mixing words, this is the beginning of another chapter in our career as bricklayers. The industry is indeed facing a challenge, which I’m sure this stronger cement will solve,”
From any angle one chooses to look at it, the latest step from the company might be the final whistle to announce the take over of Africa cement market by Dangote brand. However, the success of the product will depend majorly on how well the company keeps its brand promise. Another factor that may affect its market share is the possibility of rival brands coming up with a similar product in the next few months to tackle the ‘Big Oga’.

 

 

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