Tuesday, 1 April 2014

Redefining ‘value’ through packaging

As Dangote Group sets new agenda with 3X cement 
Dangote CementConsumers are digging deeper to find true value these days. And while consumer perception that correlates strong pricing with value is relevant, it is not the sole indicator. Experts agree on the importance of brands assessing a number of assets and identifying which ones consumers place the highest value on when it comes to products and packaging. But doing this requires a shift, where the word “value” itself is first redefined as part of an updated brand strategy.
Last week, the management of Dangote Cement became the only one in its category in Nigeria producing the 42.5 grade locally for now.
Group Managing Director, Dangote Cement Plc, Devakumar Edwin, who unveiled the new cement bag said board and management remain committed to the safety of human lives in the country, rather than maximizing profits alone. He maintained that incidences of building collapses in the country do not only destroy lives and properties, but also bring about huge economic losses to the nation.
Edwin said most of the collapsed buildings were caused by varied factors, especially poor quality cement, pointing out that the lifetime investment by Dangote was to further demonstrate the company’s resolve to guard against unfortunate incidents of building collapse and the attendant loss of lives and property.
He said, “Dangote has since stopped the production of the 32.5 lower cement grade,” saying as a corporate organisation, it values human lives rather than just making money.
According to him, “this is why we are focusing heavily on 42.5 cement grade, because we believe as a responsible organisation, human life is more precious than making profits. The introduction of Dangote 42.5, 3X cement, is not to dominate the cement industry but to follow the acceptable global trend, which has also been adopted by West African countries like Ghana, where the focus is shifting towards the 42.5 cement grade as the preferred quality of cement for building and construction activities.”

The Standards Organisation of Nigeria (SON), also on Tuesday, formally gave approval to Dangote Cement to commence the roll out of the higher grade product into the Nigerian market.
The agency said it had inspected the company’s manufacturing facilities across the country and found the processes to have been upgraded to efficiently produce the 42.5 type, which provides higher strength in building and construction.
SON made this declaration during the pre-media launch of the higher grade cement in Lagos, stressing that the indigenous cement manufacturer had been given full certification to produce the high quality cement.
The SON Director General, Dr. Joseph Odumodu, who was represented by an enforcement official of the agency, Adeoye Onipede, commended the move by Dangote to increase its value proposition to Nigerians

with the new product and urged the company to keep abiding by the strictest manufacturing standards.
Describing the features of the Dangote 3X 42.5 cement and the differences between the 32.5 and 42.5 cement grade, the Group Chief Marketing Officer, Oare Ojeikere, said the higher grade is 30 per cent stronger than the previous, which is specifically designed according to the block maker’s specification.
He said a higher grade of cement is vital to ending incidences of building collapse in the country, adding that it is about time Nigeria joined other countries in the sub-region to move away from 32.5 cement grade to 42.5 cement grade.
According to him, the 3X, which stands for “Xtra strength; ‘Xtra life and Xtra yield” is the brand name for the Dangote 42.5 cement grade now sold in 50 kilogramme bags across  the country.
He stressed that because of 3X’s higher strength characteristics, 42.5 grade cement gives higher yield than 32.5 to users in situations where strength is not a crucial factor.
Speaking at the event, Adviser to the President, Dangote Group, Joseph Makoju, recalled that in 2002, local production of cement in the country was less than two million tonnes, noting that with the efforts of Dangote cement and other cement producers in the country, the cement industry has come to stay.
Chairman, Association of Housing Corporation of Nigeria, Toye Eniola, said there had been issues bothering on building collapse in the country, leading to loss of lives and destruction of buildings. With the introduction of 3X, he said the association will collaborate with Dangote to ensure that the product gets the necessary support and patronage it deserves, to check the spate of building collapse in the country.
Also, President, Brick Molders Association, Abel Kayode, said expressed his members’ excitement about the introduction of the 3X grade, which he recommended to all.
“We have been looking for a product like 3X and we believe this cement will help us carry out activities in the most efficient and affordable manner,” he said.

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