Marketing Concrete Against Competing Materials

Bruce McIntoshVice PresidentCommunications

Topics

• Competitive arenas in the U.S. • Market characteristics• Message research and testing• Marketing programs• Market dynamics and emerging

opportunities

Competitive Arena: Buildings

• Commercial buildings• Residential buildings• Public buildings

Low-Rise Buildings (1 to 3 stories)

Concrete; 20.1Steel; 49

Concrete/Steel Hy-brid; 0.8

Prefabricated; 6.6

Wood; 23.3

Market Share, Percent

Mid-Rise Buildings (4-7 stories)

Concrete; 33.1

Steel; 34.6

Concrete/Steel Hybrid; 1.5

Wood; 23.3

Market Share, Percent

High-Rise Buildings (8 stories and higher)

Concrete; 56.1

Steel; 37.6

Con-crete/Steel

Hybrid; 6.3

Market Share, Percent

Competitive Arena: Paving

• Highways• Urban roads• Rural roads• Parking lots• Residential driveways

All Paved Roads

Concrete; 6

Asphalt; 94

Market Share, Percent

Highways

Concrete; 13.5

Asphalt; 86.5

Market Share, Percent

Competitive Arena: Single-Family Houses

• Above-grade walls• Flatwork (driveways, walks, patios)• Basements and foundations• Cladding (stucco, siding)

Above-Grade Walls

Concrete; 4Wood; 94

Other; 2

Market Share, Percent

Marketing Tactics and Considerations

• Messages that have been externally tested• Market share vs. market size• Campaign approach targeting specific

issues• Thought leadership: Controlling the

conversation• Part of imaging/branding (Think Harder)

Message Research and Testing

• Specifiers of building materials (engineers, contractors, architects, and others)

• Concrete industry representatives• Governmental (state and federal)

Message Testing Results

Top-rated descriptive attributes that go undisputed:1. Durable, long lasting2. Sustainable3. Economical

Positioning

• Wood has regeneration, renewable• Asphalt and steel have recycling• Concrete’s has the opportunity to

own durability and long-life, our top attributes

Marketing Concrete Paving

• Key factor :

Concrete has a 6% national share of the paving market

National Advertising Plan for Paving

• Targets: • Public works officials, consulting engineers,

city/county officials• Tactics: • Aggressively communicate concrete pavement

as durable, sustainable, and economical• Capitalize on new opportunities (rising asphalt

prices)• Address issues that present barriers to greater

share

Initial Ad

• Attention-getting• Aggressive• “No more status quo”

Pure Positive (Yawn!)

Current Campaign: Advocacy, MIT

Working on . . .

Regional: Minnesota

• 2010 campaign targets I-94 asphalt reconstruction after just 10 years

• Arterial route in downtown Minneapolis

Regional: Minnesota• 2011 campaign of billboards and

bus shelters focused on spring pothole season

Campaign Impacts• Increased visibility for material choices:

concrete versus asphalt• Galvanized and motivated allied industry• Minnesota public officials– Forced media response– Increased allied industry influence – Elevated dialogue

• $65 million additional concrete projects 2011-2012 Mn/DOT program

Regional: Columbus, Ohio

• July 2012 billboard campaign on asphalt escalators with “Crude” imagery and messaging

Other Materials

• Web site: www.think-harder.org• PCA e-newsletters• Social media (Think Concrete

blog, Twitter, Facebook)• Outreach materials on benefits,

issues, and economic impact• Promotional items

Other Campaigns: Resilience• Capability of a building or community to

survive and recover from a disaster such as tornadoes, fires, hurricanes, floods etc.

• Strategy is intended to raise awareness of the benefits of concrete

• Concrete products include walls, floors, finishes and roof tiles

Resilience: Program Elements and Tactics

• Target: Community leaders, building code officials, elected officials in disaster areas

• Segment: Homes and buildings that offer safe and sustainable communities

• Goal: Stronger building codes and local practices that favor concrete

Pilot Program: Joplin, Missouri

• Community event with presentations, exhibits, and tours showcasing safe and sustainable concrete.

• Advertising in local newspaper and Facebook• Earned media• Outreach materials: fact sheets, social media,

web site• Think Harder gear

Conclusions

• Long-term outlook very positive• Huge opportunities in paving• Trends to sustainable construction favor

concrete• Trends to life-cycle analysis favor concrete

Marketing Concrete Against Competing Materials

Bruce McIntoshVice PresidentCommunications