A Comprehesive Study of Marketing Strategy for the Secondary Products

91
SUMMER TRAINING REPORT ON (A COMPREHESIVE STUDY OF MARKETING STRATEGY FOR THE SECONDARY PRODUCTS) AT BHILAI STEEL PLANT (AN INTEGRATED UNIT OF STEEL AUTHORITY OF INDIA LTD.) BY ( NIKHILESH YADAV) 2007-08 IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION DEGREE 1

Transcript of A Comprehesive Study of Marketing Strategy for the Secondary Products

Page 1: A Comprehesive Study of Marketing Strategy for the Secondary Products

SUMMER TRAINING REPORT ON

(A COMPREHESIVE STUDY OF MARKETING STRATEGY FOR THE SECONDARY PRODUCTS) AT BHILAI STEEL PLANT(AN INTEGRATED UNIT OF STEEL AUTHORITY OF INDIA LTD.)

BY

( NIKHILESH YADAV)

2007-08

IN PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION DEGREE

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY ,RAIPUR (C.G.)

1

Page 2: A Comprehesive Study of Marketing Strategy for the Secondary Products

CERTIFICATE

This is to certify that Mr. Nikhilesh Yadav Of DIMAT, MBA Semester – II has successfully completed the summer training in partial fulfillment of requirement for the award of MBA Degree prescribed by the Chattisgarh Swami Vivekanand Technical University, Bhilai.

This report is the record of authentic work carried out by the student during the academic year 2007 – 2008.

(Pradip Singh)

Internal Guide Director

2

Page 3: A Comprehesive Study of Marketing Strategy for the Secondary Products

DECLARATION

I Mr. NIkhilesh Yadav hereby declare that this report is the record of authentic work carried byme during the academic year 2007-08 in Bhilai Steel Plant (BSP) An integrated unit of Steel Authority (SAIL) Bhilai, District Durg (C.G.)

( )

Signature of the student

( Nikhilesh Yadav )

Name of the student

3

Page 4: A Comprehesive Study of Marketing Strategy for the Secondary Products

ACKNOWLEDGEMENT

I express my sincers thanks & regards to Bhilai Steel Plant, for giving me the

opportunity to study on the topic “A comprehensive study of Marketing strategy

for Secondary products at Bhilai Steel Plant.”

First & foremost I express my heartily thanks to Mr. Nitin Deshpandey

(Director DIMAT) my project guide Mr. Pradip Singh. I also thanks to Mr. Rama

Raju MD (BSP), Mr. S.M. Singh (GM-HRD), Mr. Anil Sharma (DGM-HRD), Mr. S.

Dubey (DGM-HRD), Mr. D.K. Jadhav (Sr. Mgr.-HRD), Mr. Namdev Barange

(Training coordinator –HRD) V.T. Section.

I also express my heartily thanks to Mr. S.R.Rai GM (M&SP) &

Mr.Ramarao AGM (M&SP) for their kind guidance. I also express my sincere

thanks to my coordinator Mr. S.S. Parida (M&SP) and all the heads of concerned

sections of marketing department, Mr. Sanjay Jaswal, Mr. D.P. Viswakarma, Mrs.

Susmita Dey, Mr.arindham jain (M & SP), Mr.Satpathy, Mr. R. Garga, and Mr.

Devendra Srivastava, Mr. P.K. Sahu for their kind cooperation in this project

work.

And lastly, I would like to thank all my group members for their kind

cooperations to complete this project work successfully.

Date… NIKHILESH YADAV

4

Page 5: A Comprehesive Study of Marketing Strategy for the Secondary Products

EXECUTIVE SUMMARY

During my eight weeks of summer training in the Bhilai Steel Plant, I have

done project research work on “Study on Marketing & Sales analysis of

Secondary Products”.

The project report tells us about the secondary product section and the

whole process, starting from collection of scrap to the lifting of material and its

distribution. The initial part of the report tells about SAIL and importance &

performance of Bhilai Steel Plant in the steel authority. It also tells about the

contribution of Bhilai Steel Plant to Sail’s profit. The next part describes the

procedure of selling & distribution the secondary product. And the major

consumer of BSP in this field.

It also throws light on use of secondary products for re-rolling mills as raw

material and the process of re-rolling and its products. The finding of my study

emphases the problem which I have observed. Such as refund of payment

procedure, price list of material, which is not available in the stockyard, all the

marketing decision relating to prime product are taken by the SAIL and carried

out by CMO.

In my opinion the organization is more concerned with larger order of steel

products by ignoring the smaller orders of steel products. The exports policy of

SAIL considers it secondary to domestic selling as it is a Govt. undertaking and

first priority is given to domestic marketing. The conclusion deals with the

objective of Bhilai Steel Plant to achieve sales analysis of secondary products.

The last portion conclusion & recommendation to improve the functioning of

marketing department of Bhilai Steel Plant.

INDEX

5

Page 6: A Comprehesive Study of Marketing Strategy for the Secondary Products

Sr. No. Content Page NO.

Chapter-1 Introduction 7

Chapter-2 Company Profile 22

Chapter-3 Product Profile 32

Chapter-4 Objective & scope of the project 41

Chapter-5 Research Methodology 43

Chapter-6 Data collection and interpretation 46

Chapter-7 Conclusion 61

Chapter-8 Limitation 63

Chapter-9 Recommendation 65

Chapter-10 Appendices 66

Chapter-11 Bibliography 70

6

Page 7: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHAPTER -1 INTRODUCTION

STEEL ATHOURITY OF INDIA LIMITED (SAIL)

During struggle for independence, Pt. Jawahar Lal Nehru our first prime minister

of independent India had a very clear vision about the role of steel in the

development of our nation. Although Tata Iron & Steel Co. 9TISCO) established

7

Page 8: A Comprehesive Study of Marketing Strategy for the Secondary Products

in 1907 marking the beginning of Indian Steel industry followed by Indian Steel

Corporation (1918) they were too small to meet the development requirement of

a big country like ours. Therefore, in the first industrial policy resolution of the

government soon after independence, government decided to establish steel

plant in Public Sector only. However work could be started at faster pace in 1954

when. Hindustan Steel Limited was formed and the steel plants of 1 MT

capacity of each were established with provision of further expansion at Bhilai,

Rourkela and Durgapur with assistance from USSR, West Germany and UK

respectively.

Steel Authority of India Limited (SAIL) is the leading steel-making company in

India. It is fully integrated Iron and Steel maker, producing both basic and special

steel for domestic, construction, Engineering, Power, Railway, Automotive and

Defense industries and for sale in export markets.

Ranked amongst the top ten public sector companies in India in terms of

turnover. SAIL manufactures and sells a broad range of steel products, including

hot and cold rolled sheets and coils, galvanized sheet, electrical sheets,

structural, railway products, plates, bars and rods, stainless steel and other alloy

steels. SAIL produces Iron and Steel at four integrated plants and three special

steel plants, located principally in the eastern and central religions of India and

situated closed to domestic source of three raw materials including the

Company's Iron Ore, limestone and dolomite mines.

SAIL'S wide range of long and flat steel products are much in demand in the

domestic as well as the international market. This vital responsibility is carried out

by SAIL's own Central Marketing Organization (CMO) and the International Trade

Division (ITD). CMO encompasses a wide network of 38 branch offices and 47

stockyards located in major cities and towns throughout India.

With technical and managerial expertise and known-how in steel making gained

over decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers

services and consultancy to clients world-wide.

8

Page 9: A Comprehesive Study of Marketing Strategy for the Secondary Products

SAIL has a well-equipped Research and Development Center for Iron and Steel

(RDCIS) at Ranchi which helps to produce quality steel and develop new

technologies for the steel industry. Beside SAIL has its in-house Center for

Engineering Technology (CET) Management Training Institute (MTI) and Safety

Organization at Ranch. Its captive mines are under the control of the Raw

Materials Division in Kolkata. The Environment Management Division and

Growth Division of SAIL operate from their headquarters in Kolkata. Almost all its

plants and major units are ISO certified.

Integrated Steel Plants :-

Bhilai Steel Plant (BSP) in Chhattishgarh.

Durgapur Steel Plant (DSP) in West Bengal.

Rurkela Steel Plant (RSP) in Orissa.

Bokaro Steel Plant (BSL) in Jharkhand.

IISCO steel plant (IIS) in west Bengal.

Special Steel Plants :-

Alloy Steel Plants (ASP) in West Bengal.

Salem Steel Plant (SSP) in Tamil Nadu.

Visvesvaraya Iron and Steel Plant (VISL) in Karnataka.

Subsidiaries:-

Maharashtra Elektrosmelt Limited (MEL) in Maharastra.

JOINT VENTURE :

9

Page 10: A Comprehesive Study of Marketing Strategy for the Secondary Products

SAIL has promoted joint venture in different areas ranging from power to e-

commerce.

NTPC SAIL Power Company Pvt. Ltd.

Set up in March 2001, this 50:50 joint venture between SAIL and the National

Thermal Power Corporation (NTPC) operates and manages the Captive Power

plants - II of the Durgapur and Rurakela Steel Plants which have a combined

capacity of 240 MW.

Bokaro Power Supply Company Pvt. Ltd.

This 50:50 joint venture between SAIL and the Damodar Velley Corporation

formed in January 2002 is managing the 302 MW power generation and 1880

tones per hour steam generation facilitates at Bokaro Steel Plant.

Bhilai Electric Supply Company Pvt. Ltd.

Another SAIL-NTPC joint venture of 50:50 basis formed in March 2002

manages the 74 MW power plant - II of Bhilai Steel Plant which has additional

capacity of producing 150 tones of steam per hour.

UEC SAIl information technology Ltd.

This is 40:60 joint ventures between SAIL and USX Engineers & Consultants. "A

subsidiary of the US Steel Corporation, promotes information technology in the

steel sector.

MetalJunction.com Private Ltd.

A joint venture between SAIL and Tata Steel on50:50 basis, this company

promotes e-commerce activities in steel and related areas.

SAIL – Bansal Service Centre Pvt. Ltd.

10

Page 11: A Comprehesive Study of Marketing Strategy for the Secondary Products

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to

promote a service centre at Bokaro with the objective of adding value to steel.

North Bengal Dolomite Ltd.

A joint venture between SAIL and West Bengal Mineral Development

Corporation Ltd. on50:50 basis was formed for development of Jayanti Dolomite

Deposit, Jalpaiguri for supply of Dolomite of DSP and other plant.

Romelt - SAIL (India) Ltd.

A joint venture between SAIL, National Mineral Development Corporation

(NMDC) and Russian promotes for marketing Romelt technology developed by

Russia for reducing of iron bearing materials, which is carried out with carbon in

single stage reactor with the use of oxygen.

Ownership and Management

The Government of India owns about 86% of SAIL's equity and retains voting

control of the Company. However, SAIL, by virtue of its ‘Navratna’ status, enjoys

significant operational and financial autonomy.

11

Page 12: A Comprehesive Study of Marketing Strategy for the Secondary Products

BACKGROUND & HISTORY OF SAIL :

A Rich Heritage:

The Precursor

SAIL traces its origin to the formative years of an emerging nation-India. After

independence the builders of modern India worked with a vision - to lay the

infrastructure for rapid industrialization of the country. The steel sector was to

propel the economic growth. Hindustan Steel Private Limited was set up on

January 19, 1954. The President of India held the shares of the company on

behalf of the people of India.

Expanding Horizon (1959-1973)

Hindustan Steel Limited (HSL) was initially designed to manage only one plant

that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the

preliminary work was done by the Iron and Steel Ministry. From April 1957 the

supervision and control of these two steel plant were also transferred to

Hindustan Steel. The registered office was originally in New Delhi. It moved to

Kolkata in July 1956 and ultimately to Ranchi in December 1959.

A new steel company, Bakaro Steel Limited was incorporated in January 1964 to

construct and operate the steel plant at Bakaro. The 1 MT phases of Bhilai and

rourkela Steel plants were completed by the end of December 1961. The 1MT

phase of "Durgapur Steel Plant” was completed in January 1962 after

commissioning of the Wheel and Axle plant. The crude steel production of HSL

went up from 1.58 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel

Plant was completed in September 1967 after commissioning of the Wire Rod

Mill. The last unit of the 1.8 MT phase of Rourkela the Tandem Mill - was

commissioned in February 1967, and the 1.6 MT stage of Durgapur Steel Plant

was completed in August 1969 after commissioning of the Furnace in SMS. Thus

with the completion of the 2.5 MT stage at Bhilai 1.8 MT at Rurkela and 1.6 MT at

12

Page 13: A Comprehesive Study of Marketing Strategy for the Secondary Products

Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT

in1968-69 and subsequently to 4MT in 1972-73.

Holding Company

The Ministry of Steel and Mines drafted a policy statement to evolve a new model

for managing industry. The policy statement was presented to the Parliament on

December 2, 1972. On this basis the concept of creating a holding company to

manage inputs and outputs under one umbrella was mooted. This led to the

formation of Steel Authority of India Ltd. The company, incorporated on January

24, 1973 with an authorized capital of Rs. 2000 Crs. was made responsible for

managing five integrated steel plants at Bhilai, Bokaro, Durapur, "Rourkela and

Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was

restructured as an operating company.

Since its inception SAIL has been instrumental in laying a sound infrastructure for

the industrial development of the country. Beside, it has immensely contributed to

the development of technical and managerial expertise. It has triggered the

secondary and tertiary waves of economic growth by continuously providing the

inputs for the consuming industry.

SALES RESIDENT MANAGER (SRM):

There are four SRM’s located at the four integrated steel plants. The SRM acts

as an interface between the CMO and the steel plant.

The role of SRM are:

To check the availability of materials in the plant and to oversee the

increase in production.

To make the final rolling plan.

To dispatch material as per orders.

To prepare demand forecast every month.

13

Page 14: A Comprehesive Study of Marketing Strategy for the Secondary Products

SAIL Today

SAIL today is one of the largest industrial in India. Its strength has been the

diversified range of quality steel products catering to the domestic, as well as the

export markets and a large pool of technical and professional; expertise.

Having achieved the initial goal of laying the foundation for the industrial

development of the country. SAIL took up the new challenge of facing the era of

liberalized economy and the emerging competitive scenario in the Steel market

on the eve of entering the new millennium, SAIL launched its Financial and

Business restructuring program. The strategy includes a divestment of non-core

activities, restructuring of marketing function and a focus on pruning cost of

operation. The goal for the company is to emerge as one of the lowest cost

producer in the global steel market.

PRODUCT MIX :

Product Wise

  Semis Blooms, Billets & Slabs    Long Products Structurals

Crane Rails

Bars, Rods & Rebars

Wire Rods  

  Flat Products HR Coils, Sheets & Skelp

Plates

CR Coils & Sheets

GC Sheets\ GP Sheets and Coils

Tinplates

Electrical Steel  

  Tubular Products   Pipes  

  Railway Products Rails

Wheels, Axles, Wheel Sets  

14

Page 15: A Comprehesive Study of Marketing Strategy for the Secondary Products

Plant Wise

  Bhilai Steel Plant Blooms, Billets & SlabsBeams

Channels, Angles,bars

wire rods (tmt, plain& ribbed)

plates, Rails & heavy structurals

Pig Iron, Chemicals & Fertilisers

  Bokaro Steel Plant HR Coils & Sheets

Plates

CR Coils & Sheets

GP Sheets & Coils/ GC Sheets

Pig Iron, Chemicals & Fertilisers

  Durgapur Steel Plant Blooms, Billets & Slabs

Joists, Channels, Angles

Bars, Rods & Rebars

Skelp

Wheels, Axles, Wheel Sets

Pig Iron, Chemicals & Fertilisers  

  Rourkela Steel Plant HR Coils

Plates

CR Coils & Sheets

GP Sheets/ GC Sheets

Tinplates

Electrical Steel

Pipes

Pig Iron, Chemicals & Fertilisers  

  Salem Steel Plant Stainless Steel

THE SEVEN C’S OF SAIL

Consistent Quality

Committed Delivery

15

Page 16: A Comprehesive Study of Marketing Strategy for the Secondary Products

Customized product

Competitive Price

Complaint Settlement

Contemporary Products

Culture of Customer Service

16

Page 17: A Comprehesive Study of Marketing Strategy for the Secondary Products

CENTRAL MARKETING ORGANIZATION (CMO)

This is the marketing unit of SAIL. The CMO of the SAIL was formed in 1963.

When public sector plants were managed by Hindustan Steel Pvt. Limited. It

caters to the domestic market and is responsible for coordinated manner. The

CMO undertakes marketing of materials produced by SAIL, plant through a

distribution network of 43 Branch sales offices (BSO), stockyard, dockyards,

consignment agents & extension counter spread all over country. Central

Marketing Organization (CMO) most of its division have their headquarters at

Kolkata and they report to the Executive Director of marketing at Kolkata, who

in turn report to the Director headquartered at Delhi. However departments like

transport & shipping, export and imports etc. report to Executive Director

located at Delhi.

MAJOR FUNCTIONS OF CMO :

Marked Research Demand Assessment. segment prioritization, product planning,

sales and after sales service etc. CMO has a network of sales and after sales

service etc. CMO has a network of sales officer and stockyards within the country

for purpose of distribution of materials from these outlets. The other aspect

controlled by CMO are planning, customer service, transport & shipping data

information system etc.

The distribution of the Iron & Steel products is done by the CMO through 45

branches and stockyards located in all important steel consuming centers in

the country. For administration purposes, the branches are grouped under 6

regions.

The distribution through the stockyard is of the order of 69% & through due

dispatches by the plant 31%. They adopt various schemes to see that the

movement of the products is fast & customers are satisfied.

17

Page 18: A Comprehesive Study of Marketing Strategy for the Secondary Products

OTHER IMPORTANT FUNCTION OF CMO :

CMO has got responsibility to sell Pig Iron. Mild Steel products manufactured by

BSP, DSP, RSP & BSL having its Head Quarters at Ispat Bhawan. 40.

Chowrangee Road. Calcutta- 71.

CMO has got 43 branches spread throughout the country with stockyard for

storing & selling Iron & Steel materials produced by plants.

Each Branch is headed by a Branch Manager having other colleagues including

Finance Executive to help Branch Manager in day to day operations.

CMO has got transport & shipping department to handle the export-import

consignment at different parts. These officers are at following places:

(a) Kolkata (b) Haldia (c) Chennai (d) Vishakapatnam (e) Paradeep

To co-ordinate about production & dispatch in different steel plant. CMO has got

SRM offices at following places:

(a) Bhilai (b) Durgapur (c) Rourkela

To take care or the exports CMO has got office at New Delhi.

There is separate fertilizers & chemical divisions to sell fertilizers & chemicals

produced by the plants.

18

Page 19: A Comprehesive Study of Marketing Strategy for the Secondary Products

Marketing Management Group :

This group is headed by marketing managers. Marketing managers are

responsible for market strategy and planning interims of sales, market share &

profitability in a specific market segment.

Salem Steel Products Division :

This division headquartered at Chennai by Salem Steel Plant. They have field

office at each of the regional headquarters as well as major consumption centers.

Marketing Services Division (MSD) :

This division looks after the management is supported by a computer center

where data on marketing operation throughout the county are processed on a

regular basis to bring out periodical MIS report. The responsibility of designing &

implementing road movement, handling contract system ect. is also with them.

Commercial Division :

This division deals with formulation of policies on distribution. This division also

deals with parliament question on behalf of CMO.

Application Engineering Group (AEG) :

This division deals with application about selection of best suited raw material

development of new products required by the market etc. It also undertakes

technical inspection on behalf of the CMO wherever needed. The AE personnel

are posted at each regional headquarters.

19

Page 20: A Comprehesive Study of Marketing Strategy for the Secondary Products

Fertilizers & Chemical Division :

This division is headquartered at Kolkata and looks after distribution of

Ammonium Nitrate products by Rourkela Steel Plant and ammonium Sulphate

produced by all the steel plants. This division has got offices at field location

where the demand for fertilizers is substantial.

Market Research Group :

This division undertakes assessment of demand for pig iron & steel product for

long term perspective and advice management about the market. This division

brings out periodic report covering various aspects of consumption market

condition. Competitors activities etc. They have field repetitive for collecting and

forwarding market intelligence on the new quarters.

Transport and Shipping Department:

The department of headquartered at Koltata and has branch offices at major port

areas. This division is responsible for handling imports and export on behalf of

SAIL. This division clears the goods imported on sale at the ports and forwards

the same to various steel plants.

Finance and Account Department :

This department renders financial advice to the line managers as well as CMO

headquarters and maintain the account of the organization covering home sales,

transport and shipping exports, residual imports, internal audit etc.

Special Project Division :

This Division is headquarters at Delhi & reports the Director (commercial). This

division deals with modernization of stockyards giving technical help and

assistance to the stockyard in maintenance of handling equipment etc. The

20

Page 21: A Comprehesive Study of Marketing Strategy for the Secondary Products

department also deals with construction of office, building of central marketing

organization and acquisition of construction of residential accommodation etc.

Regional Offices of CMO :

Northern Region

Eastern Region

Southern Region

Western Region

Northern Region Southern Region

Agra Bangalore

Allahabad Calgawan

Chandigarh Chennai

Faridabad Coimbator

New Delhi Hyderabad

Kanpur Cochin

Easter Region Western Region

Siliguri Ahmedabad

Bhubaneswer Baroda

Bokaro Bhilai

Durgapur Bhopal

Jamshedpur Goa

Guwahati Indore

21

Page 22: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 2

COMPANY PROFILE

22

Page 23: A Comprehesive Study of Marketing Strategy for the Secondary Products

BHILAI STEEL PLANT

BRIEF DESCRIPTION OF BHILAI STEEL PLANT

BRIEF HISTORY

Bhilai Steel Plant (BSP) is a unit of Steel Authority of India (SAIL). Bhilai Steel

Plant is a pulsating giant in the glorious Industrial context of India. It came into

existence on 10th June 1957. BSP the functionary of SAIL is a symbol of lndo-

Soviet Techno economic collaboration, and is one of the first three integrated

steel plant set up by the Government of India to build- up a sound base for

industrial growth of the country. The agreement was signed on 2nd February,

1955 for 1 MT production capacity; which rose to than 2.5 MT (1967). and then

to 4 MT in 1988 production of Crude Steel Per year.

On 4th February 1959 the President, Dr. Rajendra Prasad dedicated

Bhilai to the Nation by inaugurating the Blast Furnace No. 1 for production. Since

then Bhilai has never looked back and has steadily grown and modernized day

by day. Bhilai has all along been giving special attention to the employment to

the weaker section. Bhilai has contributed significantly to meet the Iron & Steel

requirements of the country.

The Steel Plant has 10 coke ovens batteries and 7 Blast Furnace.

The Plant get its requisition of raw materials and necessary resources by various

adjoining centers. The Iron ore is met from the captive mines of the plant which is

situated at Dalil-Rajhara, the mechanized iron ore mines 100 kms south from

BSP. Lime stones also come from the manual mines of Nadini about 25 kms to

the North of the Plant. The need of Dolomite is fulfilled from the queries of Hirri in

Bilaspur District.

Steel plant requires various forms or energy, viz. electricity, fuel

(solid, liquid & gases). steam oxygen, compressed air. chilled water, air blast etc.

At Bhilai the main source of electricity is the CSEB grid from the NTPC korba

Station, about 250 Kms. away. The Steel Plant has have their own capacity of

generating electricity of 36 MW and 74 MW by power plant I & II respectively as

the alternative source of power supply to meet emergency loads in case of

23

Page 24: A Comprehesive Study of Marketing Strategy for the Secondary Products

interruptions.

There exist and extensive communication system at the work which

include Auto Telephone Exchange dispatched Communication system, shop-

floor loudspeaker system, gas and fire signaling and blocking system of the plant

rail transport facilities etc.

PLANT LAYOUT:

The unit or the plant has been laid in sequential formation according to

technological interrelationship so as to ensure un-interrupted flow of process

material like coke. Slag etc and to minimize the length of various inter plant

connection utilities and services.

RAW MATERIALS:

The plant owns and manages the mechanized and manual iron ore mines at Dalli

Rajhara, Situated about 100 KM from Bhilai and Limestone mine at Nandini.

ahout 25 Kms away from plant. The plant owns quarries at Hirri, Chhattisgarh (for

Dolomite) Over a million tones of minerals of mines annually from the captive

mines.

SERVICES & UTILITIES

BSP is an integrated Steel Plant which requires various forms of energy like

electricity, Fuel (solid, liquid and gaseous) stream, oxygen, compressed air,

chilled water, air blast etc.

Electricity power is supplied by BESCL (Bhilai Electric Supply Company

Limited) a joint venture between National Thermal Power Corporation and SAIL

from Korba 250 Km away from Bhilai.

Water supply comes from a well constructed system of water works of

the state government - Tandula reservoirs, water from nearby rivers are

brought to two huge water reservoirs ( Maroda Tank 1 & 2) through a well laid

canal, 60 km long from BSP.

The other utility gaseous liquid and solid fuels, chilled water, steam.

Oxygen and compressed air are provided- at Plant by centralized utility

services.

There exists an extensive communication system at work place, which

24

Page 25: A Comprehesive Study of Marketing Strategy for the Secondary Products

includes an auto telephone exchange, dispatch communication system, gas and

fire alarm signal, yeard communication and automatic signaling and blocking

system of plant, rail transport facility and shop floor loudspeaker system.

Export section :

Bhilai Steel Plant has an export section to take care of the requirement of

International Trade Division (ITD). The export enquiry received by International

Trade Division are sent over to Bhilai for detail discussion. After the confirmation

from Bhilai. International Trade Division initiates action on commercial settlement

and enter into a contract with the foreign buyer. The work order then issued by

International Trade Division is distributed to various agencies likes Purchase,

Finance and GM Services. Soon after subsequent rolling takes place. After

inspection is made the consignment is sent through railways to Vishakapatnam

port for the loading into ship. In case of export to Nepal, The consignment is

moved by wagon either to Patna, Kanpur or Bhilai for onward dispatch to the

buyer in Nepal.

MANAGEMENT

Initially BSP was under the administrative control of the Ministry of Iron and Steel

with powers delegated to the chief' of the Plant. Later Hindustan Steel Ltd.

Controlled the management, which was formed on 19th January 1954 to manage

Rourkela Steel Plant, Bhilai Steel Plant became the constituent of Hindustan

Steel Ltd, With the formation of Steel Authority of India Limited (SAIL) 24th

January 1973.

In the organization of BSP the Managing Director (MD) is the top most

authority responsibility for overall control. There are six Executive Directors in

following manner:

Executive Director Personal &Administration

Executive Director Materials Management

Executive Director Project

Executive Director Finance & Accounts

Executive Director Works

Executive Director B.S.P.

Director Medical & Health Servi

25

Page 26: A Comprehesive Study of Marketing Strategy for the Secondary Products

They have under them General Manager (GM), DGM, AGM, Sr. Manager &

Manager. Also, GM (Marketing & Strategic Planning) reporting to MD directly has

the sole responsibility on Marketing of various main products & secondary

products through CMD and BSP.

Employee strength of past three years

Employees as on – 01/04/04

Executives Non – Exe. Casuals TotalWorks 2138 23811 7 25956Gen. Admn. 555 2315 0 2870Township&Med.

307 3793 1 4101

Mines 169 3660 3 3832Construction 113 258 0 371

Total 3282 33837 11 37130Executives Non – Exe. Casuals Total

Works 2046 23340 6 25392Gen. Admn. 586 2249 0 2835Township&Med.

338 3617 1 3956

Mines 147 3476 1 3624Construction 117 242 0 369

Total 3234 32924 8 36166Executives Non – Exe. Casuals Total

Works 1988 23041 4 25033Gen. Admn. 657 2419 0 3076Township&Med.

331 3409 1 3739

Mines 148 3142 0 3290Construction 116 206 0 322

Total 3240 32215 5 35460

Employees as on – 01/04/05

Employees as on – 01/04/06

26

Page 27: A Comprehesive Study of Marketing Strategy for the Secondary Products

THE QUALITY POLICY OF BSP

Attaining market leadership through enhancing customer satisfaction.

Achieving continual improvement in productivity, quality and salability of

our products.

Active involvement of all our people in achieving our goals, objective and

targets.

Adherence to a quality management system based on ISO :9001:2000

and its periodic review for continued effectiveness.

ORGANIZATIONAL OBJECTIVE

To enhance customer satisfaction through :-

Improvement in productivity ad product quality.

Skill enhancement of our people by competence, commitment and culture

building.

Production as per Customer Requirement.

27

Page 28: A Comprehesive Study of Marketing Strategy for the Secondary Products

ENVIRONMENT POLICY

Bhilai Steel Plant committed to protect environment and shall strive to :

1. Introduce sound environmental management practices for minimizing pollution and its impact on air. water and land.

2. Conduct operations in an environmentally responsible manner for complying with legislation and regulations related to its environmental aspects.

3. Conserve and optimally utilize raw materials. energy. water and other resources.

4. Minimize waste generation and promote its recovery. Recycling and re-use.

5. Achieve continual improvement in environmental performance by setting and reviewing the objectives and targets periodically.

6. Enhance environmental awareness amongst employees and interested parties.

7. Communicate environmental policy to the persons working for or on

behalf of the organization and make it available to public on demand.

28

Page 29: A Comprehesive Study of Marketing Strategy for the Secondary Products

ORGANIZATION STRUCTURE OF BSP :

M D

E D (P & A)

E D(WORKS)

E D(PROJECT)

E D(MINES)

E D(M M)

E D(F & A)

DIR.(M&HS)

G M(VIG)

G M(M&SP)

G M

D G M

A G M

SR.MGR. MGR.

MGR.

DY.MGR.

ASST. MGR.

JR.MGR.

29

Page 30: A Comprehesive Study of Marketing Strategy for the Secondary Products

FLOWCHART REPRESENTATION OF M & SP DEPARTMENT :

Page 30 of 71

DGM DGM DGM DGM MARKET DEVELOP

MENT OUTSTATI

ON OFFICER

Secondary products

CC&

Fertilizers

M & SP

Plate & Slabs

BBM ExportRSM, MM,

WRM, Pig. Iron

Exe.1

Exe.2

Exe.3

Exe.1

Exe.2

Exe.3

Exe.1

Exe.2

Exe.3

Exe.1

Exe.2

Exe.1

Exe.2

Exe.1 Exe.1

Exe.2

GM

Page 31: A Comprehesive Study of Marketing Strategy for the Secondary Products

AWARDS & ACCOLADES

Bhilai Steel Plant has excelled in all walks of life, be it technology, quality,

environment or socio-cultural, some of the prestigious awards bugged by BSP

are as follows:

Prime-Minister Trophy for best Integrated Steel Plant in India - Won Seven times science its inception in the year 1992-93.

National Energy conservation Award in the integrated steel sector won for 1994, 1996, 1998 & 1999.

IIM National Quality Award winners in ferrous category during 1995-96, 1997-98 and 1999-2000.

BIS Rajiv Gandhi National Quality Award won twice in recent years.

100 Golden Peacock National Quality Award won thrice in recent years.

INSSAN award for employee suggestions six times in last seven years.

SAIL paryawaran Awards for all the six times (this award was given from 1992-93 till 1997-98), for best environmentally managed Integrated Steel Plant. Several Paryawaran Awards have also been won by captive mines and SMS-I of BSP.

Indo-German Green Tech. Environment Excellent Award for the year 1999-2000.

Apart from the above award individuals group awards have been won

time to time by BSP employees at National level in the field of Quality

Circles, Management, Metallurgy, Sports & Cultural Activities, etc.

Page 31 of 71

Page 32: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 3

PRODUCT PROFILE

32

Page 33: A Comprehesive Study of Marketing Strategy for the Secondary Products

PRODUCT PROFILE

Bhilai offers a rich and varied product mix to the domestic and international

market by different ways. They are divided into two categories, which is

PRIME PRODUCTS: These are the products which are intentionally produces

Sale and to meet the requirement of the

customers.

For eg. Blooms, Billets, Channels, Angles, round Steel bars, Wire rod, Rail, Plate

etc.

PRODUTS OF BHILAI STEEL PLANT

Production of last year:

PRODUCT-MIX TONNES/ANNUMSemis 5,53,000

Rail & Heavy Structural 7,50,000

Merchant Products

(Angles, Channels, Round & TMT bars)

5,00,000

Wire Rods (TMT, Plain & Ribbed) 4,00,000

Plates (up to 3600 mm wide) 9,50,000

Total Saleable steel 31,53,000

SECONDARY PRODUCTS: These are the defected or rejected material

33

Page 34: A Comprehesive Study of Marketing Strategy for the Secondary Products

Due to the improper mixing of

chemical

Components or due to some lack in meeting customer requirement. Scrap

generated inside Bhilai Steel Plant is also termed as Secondary Products.

For eg. - Rejected slab, iron scrap, steel scrap, defective heavy blooms,

defective billet cutting, rails cutting, and slag.

SECONDARY PRODUCTS

( AN INTRODUCTION)

Secondary products section started functioning after the commencing of Bhilai

Steel Plant. The secondary product section of the marketing department is solely

responsible for the selling of secondary products and by-products of BSP.

All the defective or rejected items of this department except the rejected

defective plates, sells scrap. The defective plates are sold by CMO (Central

Marketing Organization) since December 2001.

WHAT ARE SECONDARY PRODUCTS ?

In the cause of manufacturing process, in every stage of production, always there

will be certain Percentage of products which do not confirm to the standard

quality, size and specification. Such products are termed as ‘Secondary

Products’. Moreover, while shaping the prime products, both end and sides are

cut. These cutting are also categorized as ‘Secondary Product’ in Bhilai Steel

Plant as they are re-relloable.

Following items are falls under the category of Secondary Products.:

Defective heavy blooms

Defective Billets cuttings

Rejected Slabs

Plate Mill side shearing

Defective Plates

34

Page 35: A Comprehesive Study of Marketing Strategy for the Secondary Products

Rails Cuttings

Rod Cuttings

UTILIZATION OF SECONDARY PRODUCTS:

The secondary products can be utilized in two ways:

1. By re-rolling of secondary products.

2. By selling secondary products

PLANNING FOR SALE OF SECONDARY PRODUCTS :

1 Marketing recovery department (MRD) works out the question of different type’s

of scrap available for on monthly basis. This is determined by ascertaining the

local scrap stock at the beginning of the month. Scrap arising during

consumption. The remaining quantity is considered for sale. A monthly report

on availability of scrap is prepared by MRD and sent to marketing department.

2. Marketing department finalizes the plan for actual quantity of scrap to be sold in

consultation with MRD. Mode of sale, terms and condition for sale, location and

commercial aspects are finalized by marketing department.

3. The pricing committee as approved by Managing Director fixes the price of

each type of scrap (Finance Department, Purchase department, R & D

department, Market development department and Production department are

the member of the pricing committee).

4. Marketing department obtain MD’s approval on price fixed by pricing committee

NECESSITY OF SELLING THE “SECONDARY PRODUCTS” :

35

Page 36: A Comprehesive Study of Marketing Strategy for the Secondary Products

The net sales realization from all the secondary products, by- products

and co- products of BSP is around Rs. 600 Cr. Which is quite more then many of

the big industries. Out of this the steel scraps arising itself bring about Rs. 150-200

crores of money every year. Re-production of main product from these secondary

products requires remolding it again for the required composition of the material as

per the desired specification.

By selling it

to the different mills/traders/processors the plant earn about Rs. 4000 per tones of

direct product then by reproducing it to the main product. Through the

traders/processors/re-rollers, using these arising as a raw material for different

finished products are making huge profit, the plant is also not losing anything.

Profit is the aim of every business, and when the reutilization of these products for

the finished products proves to be costlier, the management plans to sell it to the

local market.

MARKETING OF SECONDARY PRODUCTS ;

36

Page 37: A Comprehesive Study of Marketing Strategy for the Secondary Products

1. The initial face of BSP due to the limited product of steel it is also observe that

secondary products where dominated and there fore the specific marketing

activities towards sales of secondary products was absent in fact it was

uneconomical to have marketing activities during that period.

2. Due to new technologies its capacity has increased significance in late 90’s.

3. Due to change in economic scenario of India and companies policies towards

earning profits has led to implement marketing policies for secondary products.

4. The marketing strategies adapted by the organization were giving rise to

increase in competition between public sector unit & private sector companies.

Due to this end users were having options to choose from following strategies

has been adopted by the plant for marketing:

1. COMMITED DELIVERY.

2. COMPETITIVE PRICE.

3. QUICK COMPLAINT SETTLEMENT.

4. CULTURE OF CUSTOMER SERVICE.

It may be mentioned here that the company’s profit consist of 10% turnover of

secondary products for the last 2 years.

SALES & DISTRIBUTION OF SECONDARY PRODUCTS :

1. SELLING OF SECONDARY PRODUCTS:

This involves a direct marketing process. The management of BSP in

consultation with the official of the marketing and strategic planning department

work as group for the sale of these items. There are two methods of selling these

re-rolling defective materials.

(a) By auction sale.

(b) By marketing department (fixed price)

(a) AUCTION SALE:-

37

Page 38: A Comprehesive Study of Marketing Strategy for the Secondary Products

In this method the defective material from all mills is arranged in heaps of

100-150 tones to be sold by auction. Generally, auction sale take please once in a

month. Representative from all the re-rolling mills turn up during auction and they

bid for the available material. The raw material need of these mills is being met by

the plant and the availability of the re-rollable have increased the re-rolling mills to

develop very fast. The plant extended all type of facility and assistance to these

small scale units which in turn give scope for more employment. Then the material

is lifted on the term and conditions as mentioned in the tenders.

(b) FIXED PRICE SALE:

The re-rollable material is also sold through marketing department. The

percentage of material to be sold by auction or by marketing department depends

upon the management decision. There are different re-rollable materials coming

from different mills that can be sold. The pricing of these materials is carried out by

the pricing committee depending upon:

1. The price offered by the customers during auction sale.

2. The quantity to be sold.

3. The approval of the managing director.

The customer approaches the department makes the payment in advance and lifts

the material as and when it is made available to them.

RICING POLICY OF SECONDARY PRODUCTS :

The policy adopted by the marketing department for pricing of material is

largely guided by the price offered by the bidder during the auction. The various

factors taken into consideration while pricing the re-rollable items can be

enumerated as follows:

1. Prices offered in the auction sale.

2. Quantity of the material to be lifted by the buyers.

3. Managing Directors approval.

38

Page 39: A Comprehesive Study of Marketing Strategy for the Secondary Products

MAJOR CONSUMER OF SECONDARY PRODUCTS :

FEW CONSUMERS ARE :

1. RAYMOND CEMENT

2. GLOBAL TRADING COMPANY, HIRAPUR RAIPUR (CG)

3. D. P. BANSAL COMMERCIAL CO. LTD. , BHILAI (CG)

4. PEEKAY INDUSTRIES, GAZIABAD

5. COATS OF INDIA LTD. NOIDA

6. CHATTISGARH STEEL PRODUCT , URLA IND. EST. RAIPUR. (CG)

7. BALAJI STEELS, URLA , RAIPUR (CG)

8. LIGHT INDUSTRIAL AREA, BHILAI (CG)

9. TATIBANDH, RAIPUR (CG)

10. URLA INDUSTRIAL AREA, RAIPUR (CG)

11. KUMHARI (CG)

12. INDUSTRIAL AREA, RAWAN BHATA, BHILAI (CG)

13. SIMPLEX CASTINGS , BHILAI (CG

MARKETING PERFORMANCE OF

39

Page 40: A Comprehesive Study of Marketing Strategy for the Secondary Products

SECONDARY PRODUCTS

ITEMS QUANTITIES VALUE

IRON SCRAP 84570 T 52.57 crs.

STEEL SCRAP 98000 T 173.13 crs.

DEF. & CUTTING 79865 T 250.57 crs.

ITEMS ANTITQUIES VALUE

IRON SCRAP 32048.6 T 26.91 crs.

STEEL SCRAPE 226750.4 T 548.04 crs.

DEF. & CUTTING 178680.3 T 346.65 crs

2005-06

2006-07

40

ITEMS ANTITQUIES VALUE

IRON SCRAP 76197 T 43.93 crs.

STEEL SCRAP 70525 T 133.76 crs.

DEF. & CUTTING 105634 T 194.93 crs.

2007-08

Page 41: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 4

OBJECTIVES AND SCOPE

OBJECTIVES OF STUDY :

In Bhilai Steel Plant there are various section of marketing department. Since I

have choose “Marketing Strategies for the secondary products at BSP”, my

main objectives are :

41

Page 42: A Comprehesive Study of Marketing Strategy for the Secondary Products

1. Market study of secondary products is BSP

2. To know what is secondary products, why it is necessary to sell the

secondary products.

3. To know the pricing of secondary products.

4. Ensuring timely dispatch of material products, scrap etc. to the potential

customers.

5. To know the use of secondary product.

6. To know the others terms and conditions for marketing of secondary

products.

SCOPE OF THE STUDY :

As discussed in above chapter related to steel industry in India, it is

showing the increase in steel production every year as compared to previous

year and hence it created interest for me to study the marketing & sales activities

related to secondary products. Secondary products are nothing but scrap or

defected material. In this cut throat competition organization should give

importance to marketing in sales activities of secondary products, which

alternatively add on to the profits of the organization, this study is mainly

concentrating on identifying the area of importance and cost saving related to

marketing of secondary products.

Limitation of Study :

1. The study deals with only BSP point of view.

2. As the major customer of BSP products are not an individual person.

It was very difficult to get formal feedback from them.

42

Page 43: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 5

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research can be defined as systematized efforts to gain knowledge. A

research is carried out by different methodology, which has their own pros and

cons.

43

Page 44: A Comprehesive Study of Marketing Strategy for the Secondary Products

In this research work, I have collected information i.e. Primary and

secondary data. As far as secondary data collection, I had used sources like

company data (Past and existing), internet, company publications and some of

the old project summaries with company.

As far as primary data is concerned, I had done a structured questionnaire

survey with users of secondary product i.e. small scale industries. The primary

information collected from 50 different users.

SAMPLING UNIT

In the survey Bhilai and Raipur was chosen as the sampling unit.

SAMPLING SIZE

The sample size was 50 customers of different re-rolling mils & traders.

SAMPLING TECHNIQUE

The sampling technique used by the research for the study was convenience

sampling. The sampling was taken from different places in chhattisgarh like Bhilai

Raipur.

44

Page 45: A Comprehesive Study of Marketing Strategy for the Secondary Products

45

Page 46: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 6

DATA INTERPRETATION

DATA ANALYSIS

The primary data was collected by contacting users directly and requesting them about the information related to the questionnaire designed. Following are the major questions asked and data was sought from them.

1. When was your company established?

46

Page 47: A Comprehesive Study of Marketing Strategy for the Secondary Products

(a), 0% (b), 10%

(c ), 30%(d), 60%

(a)

(b)

(c )

(d)

Inference:-

This graph indicated that most of the users of secondary products of steel

industry have been established during 90’s.

2. What is your annual requirement of secondary product?

47

(a) 1960-1970 0%(b) 1971-1980 10%(c) 1981-1990 30%(d) After 1990 60%

(a) 0-2500 Tones 10%(b) 2500-5000 Tones 30%(c) 5000-10000 Tones 40%(d) Above 10000 Tones 20%

Page 48: A Comprehesive Study of Marketing Strategy for the Secondary Products

10%

30%

40%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

(a) (b) (c ) (d)

Series1

Inference:- This graph shows the annual requirement of secondary product is evenly

distributed between 2500T to 10000T. The majority of the customers i.e. 40% of

surveyed companies buy secondary products between 5000 to 10000T

3. How many years your company was purchasing from BSP?

(a) Less than 2 years 0%(b) 2-5 years 10%(c) 5-10 years 60%(d) More than 10 years 30%

48

Page 49: A Comprehesive Study of Marketing Strategy for the Secondary Products

(a), 0% (b), 10%

(c ), 60%

(d), 30%(a)

(b)

(c )

(d)

Inference:-

This graph indicate the since how long they are purchasing secondary

products from BSP. Out of all surveyed companies, 60% companies purchasing

the products from BSP since last 5-10 years.

4. Is your company purchasing secondary product from others companies, (other than BSP)?

49

Yes 40%No 60%

Page 50: A Comprehesive Study of Marketing Strategy for the Secondary Products

Yes, 40%

No, 60%

Yes

No

Inference:-

This graph shows the companies also purchase sometimes secondary

products from other companies. It is being interpreted from above data that 60%

companies are purchasing products only from BSP

5. What is your opinion about the registration procedure of the company for getting secondary product?

50

Page 51: A Comprehesive Study of Marketing Strategy for the Secondary Products

100%

0%

0%10%

20%30%

40%50%

60%70%

80%

90%100%

Easy Hard

Series1

Inference:-

This graph indicates that 100% customers are satisfied about the order

registration procedure.

6. What mode your companies prefer to purchase material from BSP

whether it is fixed price / tender?

51

Easy 100%Hard 0%

Page 52: A Comprehesive Study of Marketing Strategy for the Secondary Products

(a), 20%

(b), 80%

(a)

(b)

Inference:-

This graph shows that 80% companies prefer purchasing products by

tender method.

7. Have you faced any difficulties doing business with BSP?

YES 0%

52

(a) Fixed Price 20%(b) Tender 80%

Page 53: A Comprehesive Study of Marketing Strategy for the Secondary Products

NO 100%

0%

100%

0%

10%

20%

30%

40%50%

60%

70%

80%90%

100%

Yes No

Series1

Inference:-

This graph shows that no company has faced any difficulties for

conducting the business with BSP.

8. Are you satisfied with BSP’s sale policy of secondary products?

(a) No 0%

53

Page 54: A Comprehesive Study of Marketing Strategy for the Secondary Products

(b) Yes 95%(c) No comments 5%

0%

95%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(a) (b) (c )

Series1

Inference:-

This graph indicates the any major draw back in BSP sales policy. 95%

Customers are satisfied with BSP sales policy.

9. What is your opinion about distribution policy of secondary product?

54

Page 55: A Comprehesive Study of Marketing Strategy for the Secondary Products

0%

95%

5% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(a) (b) (c ) (d)

Series1

Inference:-

This graph shows about distribution policy of BSP. 95% customers are

satisfied specifically with distribution policy of BSP.

10. Whether the products are made available every time whenever the payment

is made in advance?

55

(a) Very good 0%(b) Good 95%(c) Fair 5%(d) No opinion 0%

(a) YES 100%(b) NO 0%(c) Can’t Say 0%

Page 56: A Comprehesive Study of Marketing Strategy for the Secondary Products

100%

0% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(a) (b) (c )

Series1

Inference:-

This graph indicate that customer of BSP is served on priority if they pay

in advance.

11. What is your opinion about pricing policy of BSP?

(a) Good 20%(b) Satisfactory 70%(c) Dissatisfactory 10%

56

Page 57: A Comprehesive Study of Marketing Strategy for the Secondary Products

(d) No opinion 0%

(a), 20%

(b), 70%

(c ), 10% (d), 0%

(a)

(b)

(c )

(d)

Inference:-

This graph indicates mixed reaction about pricing policy of BSP. 70%

customers are satisfied with pricing policy of BSP. And also 10% customers are

not happy with the pricing policy of BSP.

12. Kindly give your priorities to the following additional facilities you feel should be considered by BSP

(a) Credit facility 25% (c) Infrastructural facility 5%(b) Discount 70% (d) Others 0%

57

Page 58: A Comprehesive Study of Marketing Strategy for the Secondary Products

(a), 25%

(b), 70%

(c ), 5%

(d), 0%

(a)

(b)

(c )

(d)

Inference:-

This graph shows that most of the respondent i.e. 70% wish to have more

discounts.

13. Is there any delay in getting the material?

58

(a) Sometimes 20%(b) Always 0%(c) Never 80%

Page 59: A Comprehesive Study of Marketing Strategy for the Secondary Products

20%

0%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

(a) (b) (c )

Series1

Inference:-

This graph shows the customer’s opinion about delay for getting the

Products. 80% customers replied that they have never faced any delay in getting

the products.

14. Which kind of material you purchase from BSP?

(a) Iron scrap 20%(b) Steel scrap 50%(c) Gram lated Slag 10%

59

Page 60: A Comprehesive Study of Marketing Strategy for the Secondary Products

(d) Melting scrap 10%(e) Others 10%

20%

50%

10% 10% 10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

(a) (b) (c ) (d) (e)

Series1

Inference:-This graph tells that 50% of the customers are regularly purchasing

steel scrap.

60

Page 61: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 7

CONCLUSION

CONCLUSION :

This project contains the study of Marketing & sales analysis of secondary

products. Secondary products are the scrap or defected material along with

the finished products.

The study has received very interesting facts above the secondary

products. Therefore from study & Analysis ( through questionnaire) I have

concluded on following points.

While study the history of SAIL (Sail authority of India limited). BSP is a part

of SAIL. I also study history about BSP. It was established on 2nd Feb.1955

61

Page 62: A Comprehesive Study of Marketing Strategy for the Secondary Products

with capacity of 1 MT. Now its production is 4MT per year.In my study I had a

some objects, like that marketing of secondary product, it’s pricing policy &

use of this product and also why necessary for selling it.

Majority of the companies buy the steel scrab from BSP and also they buy

Iron scrap, melting scrap etc.

From the primary data collection we can conclude that most of the company

who are using secondary products of steel company have been established

during 90’s and their average consumption lies between 5000T to 10000T.

Most of the surveyed companies are dealing with BSP since last 10 years and

most of them buyers of secondary products from BSP only.

The customer are satisfy with order registration process and companies

policies in BSP, they also shown magurity preference of buying goods

through tender process.

Customer are also satisfy with payment & distribution policies of BSP. They

have also felt that there are very few instances from delay.

62

Page 63: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 8

LIMITATIONS

LIMITATION OF THE STUDY :

Some data were confidential therefore were not available for analysis.

63

Page 64: A Comprehesive Study of Marketing Strategy for the Secondary Products

TIME FACTOR:- Time factor was the chief limitation of study. Limited

time

was allotted for the study.

COST FACTOR : Another major constraint was cost. The study involved

Substantial cost and was beyond the affordability of

theme

INFORMATION FROM RESPONDENTS :

Some biased response came from respondent and Finding stated in

the report was based on the answers from the questionnaire. So the effect of

misinterpretation and wrong answers may affect the outcome of the project.

The research has focused his attention mainly in and around Bhilai.

As the major customer of BSP products are not individual persons. It was

very difficult to formal feedback from them.

CHEPTER – 9

RECOMMENDATIONS :

64

Page 65: A Comprehesive Study of Marketing Strategy for the Secondary Products

1. The pricing as well as the distribution policies should be framed by keeping in

mind the requirements of the complete ranges of manufacture and only the bulk

consumer. This will encourage the new re- rolling mills to approach BSP for the

materials.

2. Ensure delivery of the material for which the payment is received in advance.

3. Alternatively, if the material is not available, the BSP authorities should not

accept the payment so that the buyer can approach some other sources for

producing the material and should not unnecessarily wait for the material, which

is not available.

4. Many a times BSP is not in a position to supply the full quantity of material for

which the payment has been received. In such cases, the refund of the excess

amount should be thought a stream lined process so that it does not tack long

time.

5. Prices list made available to the various re-rollers every month by BSP.

6. The material being sold by marketing department should accompany test

certificate mentioning only the range of carbon content in it for which the

customers are ready to pay reasonably higher prices.

7. Generation of secondary products must be tried to minimize which will help the

BSP in optimum use of raw materials.

65

Page 66: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 10

APPENDICES

QUESTIONNAIRE

A comprehensive study of marketing strategy for

66

Page 67: A Comprehesive Study of Marketing Strategy for the Secondary Products

secondary products atBhilai Steel Plant

Name ----------------------------------------------------Address -------------------------------------------------- ---------------------------------------------------Contact No. ---------------------------------------------E-mail----------------------------------------------------

1. When was your company established?

(a) 1960-1970 (b) 1971-1980

(c) 1981-1990 (d) After 1990

2. What is the annual requirement of raw materials? -------------------------------------------------------------------------------- --------------------------------------------------------------------------------

3. How many years you were purchasing from BSP?

(a) Less than 2 years (b) 2 to 5 years (c) 5 to 10 years (d) More than 10 years

4. Is your company purchasing raw materials from others companies, other than BSP?

(a)Yes (b) No

If yes please specify---------------------------------------------------- ----------------------------------------------------

5. What is your opinion about the registration procedure of the company for getting secondary product?

(a) Easy (b) Hard

67

Page 68: A Comprehesive Study of Marketing Strategy for the Secondary Products

6. What mode your companies prefer to purchase material from BSP whether it is fixed price/ tender?

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7. Have you faced any difficulties doing business with BSP?

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8. Are you satisfied with BSP’s sale policy of secondary products?

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9. What is your opinion about distribution policy of secondary products?

(a) Very good (b) Good (c) Fair (d) No opinion

10. Whether the material is available every time the payment is made in advance?

(a) Yes (b) No

(c) Can’t say

11. What is your opinion about pricing policy of BSP?

(a) Good (b) Satisfactory

68

Page 69: A Comprehesive Study of Marketing Strategy for the Secondary Products

(c) Dissatisfactory (d) No opinion

12. Kindly give your priorities to the following additional facilities you feel should be considered by BSP

(a) Credit facility (b) Discount

(c) Infrastructural facility (d) others

13. Is there any delay in getting the material?

(a) Sometimes (b) Always

(c) Never

14. What kind of material you purchase from B.S.P.?

(a) Iron scraps (d) Melting scrap (b) Steel scrap (e) Others

(c) Gram lated slag

69

Page 70: A Comprehesive Study of Marketing Strategy for the Secondary Products

CHEPTER - 11

BIBLIOGRAPHY

BIBLIOGRAPHY

SAIL ANNUAL JOURNAL 2006-07

70

Page 71: A Comprehesive Study of Marketing Strategy for the Secondary Products

ANNUAL REPORT: BSP 2006-07

WORKING NOTES M & SP DEPARTMENT

WEB SITE OF SAIL www.sail.co.in

WEB SITE OF BSP www.bsp.com

OTHER SITES: - www.google.com

www.wikipedia.com

71