Solution By:

Team Odyssey
Arpit Desai
Nishad Thakur

WeSchool Mumbai
 Entry Strategy of Schaum

• Indian Cement market is Driven by cartel

• This ensured ensured that Schaum never got to expand in the rest of
India

• Instead of dropping prices Schaum should have acquired the ACC or

Ambuja Cements like their MNC rival Holcim which now have the foot
hold of most of the India

• Rebranding the existing selling brand has back fire for schaum
 Entry Strategy of Schaum

• Though the company selected best place to manufacture the Cement it

didn’t help them to sell in the region near to it since many states in the
easten india are consider as “bimaru states”

• Due to this Schaum didn’t captured the market share in the east zone

• Make matter worse it started the premium brand which has little to none
added visible benefits as customers point of view

• Company didn’t satisfy the need of the main sales driving force
“Distributors” which led to the ultimate doom for the company
 Moving Forword for Schaum

• Schaum India needs to diversify their business in to the ready mix and
other kind of concrete since making cement cant be change but the value
addition can

• it should introduce the sachet like cement packs for the poor regions of
eastern India

• Expand the territory by signing MoU with builders near big construction
sites and instead of supplying just cement give them complete package
for the whole concrete mixing .

• Look towards the 7 sisters and Bangladesh

 Should Schaum stay?

• Fastest growing economy, Implementation of GST ,reduce level of

corruption , new housing and industries projects ; Schaum definitely can
find a place in Indian Cement Market

• The eastern markets,including the 7 sisters and Bangladesh are fast

becoming a strategic hub for the entire cement play in the country and
the neighborhood.

• With good relations with distributors ,Schaum can expand its region
 Looking beyond for Schaum

• With Dedicated fright corridor and improved railway network , Schaum

can reach the other parts of India using Indian rail logistics

• Despite a eastern region , Schaum can use the natural resources and
optimize the production and set up new shops in the other parts of India

• Schaum India needs to focus on executing projects in the pipeline as well

as using innovation to drive growth

• Cement demand to grow by 7% in 2018 and With 300 ₹/kg Schaum can
disrupt the existing market
 Sources

• https://www.ibef.org/industry/cement-india.aspx
• https://economictimes.indiatimes.com/industry/indl-
goods/svs/cement/cement-demand-to-grow-by-7-in-2018-excess-
capacity-a-concern-acc/articleshow/64621120.cms
• https://www.dsi-schaumchemie.pl/en/
• https://www.crisil.com/en/home/our-analysis/reports/2017/09/sector-
report-cement.html