Branding on steelmax

INTRODUCTION ABOUT THE STUDY

This project report is about “a study on effectiveness of marketing strategy on brand

building of the product of SteelMax”.

Brand building means the image of a particular brand in market and in eyes of people.

Brand building decides the popularity of a brand in market. A brand having good

brand image is considered more popular than a brand with low image. In other words

we can say that brand building is the perception about a product in the mind of the

customers.

Problem faced by SteelMax is that the product is not a well known brand among the

dealers. Marketing Strategy need to be directed towards brand building. in this

industry dealers have high influence in building brand and growing business .

SteelMax is un aware about level of dealer satisfaction and the problem faced by

dealer in doing business with them.

The primary aim was to measure the methods which are used to build good brand . In

this research questionnaire is the tool used to find out the customer opinion regarding

brand building of SteelMax. We are using the method of questionnaire and interview

for collecting information from dealers.

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INDUSTRY PROFILE

Steel is crucial to the development of any modern economy and is considered to be the

backbone of human civilization. The level of per capita consumption of steel is treated as

an important index of the level of socioeconomic development and living standards of the

people in any country. It is a product of a large and technologically complex industry

having strong forward and backward linkages in terms of material flows and income

generation. All major industrial economies are characterized by the existence of a strong

steel industry and the growth of many of these economies has been largely shaped by the

strength of their steel industries in their initial stages of development. Steel industry was

in the vanguard in the liberalization of the industrial Sector and has made rapid strides

since then. The new Greenfield plants represent the latest in technology. Output has

increased, the industry has moved up i n the value chain and exports have raised

consequent to a greater integration with the global economy. The new plants have also

brought about a greater regional dispersion easing the domestic supply position notably in

the western region. At the same time, the domestic steel industry faces new challenges.

Some of these relate to the trade barriers in developed markets and certain structural

problems of the domestic industry notably due to the high cost of commissioning of new

projects. The domestic demand too has not improved to significant levels. The litmus test

of the steel industry will be to surmount these difficulties and remain globally

competitive.

HISTORY OF STEEL

Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220

AD. Prior to steel, iron was a very popular metal and it was used all over the globe. Even

the time period of around 2 to 3 thousand years before Christ is termed as Iron Age as

iron was vastly used in that period in each and every part of life. But, with the change in

time and technology, people were able to find an even stronger and harder material than

iron that was steel. Using iron had some disadvantages but this alloy of iron and carbon

fulfilled all that iron couldn‘t do. The Chinese people invented steel as it was harder than

iron and it could serve better if it is used in making weapons. One legend says that the

sword of the first Han emperor was made of steel only. From China, the process of

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making steel from iron spread to its south and reached India. High quality steel was being

produced in southern India in as early as 300 BC. Most of the steel then was exported

from Asia only. Around 9th century AD, the smiths in the Middle East developed

techniques to produce sharp and flexible steel blades. In the 17th century, smiths in

Europe came to know about a new process of cementation to produce steel. Also, other

new and improved technologies were gradually developed and steel soon became the key

factor on which most of the economies of the world started depending.

THE GLOBAL STEEL INDUSTRY

The current global steel industry is in its best position in comparing to last decades. The

price has been rising continuously. The demand expectations for steel products are

rapidly growing for coming years. The shares of steel industries are also in a high pace.

The steel industry is enjoying its 6th consecutive years of growth in supply and demand.

And there is many more merger and acquisitions which overall buoyed the industry and

showed some good results. The supreme crisis has lead to the recession in economy of

different countries, which may lead to have a negative effect on whole steel industry in

coming years. However steel production and consumption will be supported by

continuous economic growth

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY

The countries like China, Japan, India and South Korea are in the top of the above in steel

production in Asian countries. China accounts for one third of total production i.e. 419m

ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and South Korea is

accounted for 49m ton, which all totally becomes more than 50% of global production.

Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.

Table NO.2.1 Country Wise Crude Steel Production During The Year Of 2011-2012

Country Crude Steel Production (mtpa)

CHINA 272.5

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JAPAN 112.7

UNITED STATES 98.9

RUSSIA 65.6

SOUTH KOREA 47.5

F.R.GERMANY 46.4

UKRAINE 38.7

BRAZIL 32.9

INDIA 32.6

ITALY 28.4

STEEL INDUSTRY IN INDIA

Steel has been the key material with which the world has reached to a developed position.

All the engineering machines, mechanical tools and most importantly building and

construction structures like bars, rods, channels, wires, angles etc are made of steel for its

feature being hard and adaptable. Earlier when the alloy of steel was not discovered, iron

was used for the said purposes but iron is usually prone to rust and is not so strong. Steel

is a highly wanted alloy over the world. All the countries need steel for the infrastructural

development and overall growth. Steel has a variety of grades i.e. above 2000 but is

mainly categorized in divisions – steel flat and steel long, depending on the shape of steel

manufactured. Steel flat includes steel products in flat, plate, sheet or strip shapes. The

plate shaped steel products are usually 10 to 200 mm and thin rolled strip products are of

1 to 10 mm in dimension. Steel flat is mostly used in construction, shipbuilding, pipes

and boiler applications. Steel long Category includes steel products in long, bar or rod

shape like reinforced rods made of sponge iron. The steel long products are required to

produce concrete, blocks, bars, tools, gears and engineering products. After

independence, successive governments placed great emphasis on the development of an

Indian steel industry. In Financial Year 1991, the six major plants, of which five were in

the public sector, produced 10 million tons. The rest of India steel production, 4.7 million

tons, came from 180 small plants, almost all of which were in the private sector. India's

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Steel production more than doubled during the 1980s but still did not meet the demand in

the mid-1990s, the government was seeking private-sector investment in new steel plants.

Production was projected to increase substantially as the result of plans to set up a 1

million ton steel plant and three pig-iron plants totaling 600,000 tons capacity in West

Bengal, with Chinese technical assistance and financial investment. The commissioning

of Tata Iron & Steel Company's production unit at Jamshedpur, Bihar in 1911-12

heralded the beginning of modern steel industry in India. At the time of Independence in

1947 India's steel production was only 1.25 Mt of crude steel. Following independence

and the commencement of five year plans, the Government of India decided to set up four

integrated steel plants at Rourkela, Durgapur, Bhilai and Bokaro. The Bokaro plant was

commissioned in 1972. The most recent addition is a 3 Mt integrated steel plant with

modern technology at Visakhapatnam. Steel Authority of India (SAIL) accounts for over

40% of India's crude steel production. SAIL comprises of nine plants, including five

integrated and four special steel plants. Of these one was nationalized and two were

acquired; several were set up in collaboration with foreign companies. SAIL also owns

mines and subsidiary companies.

EXPORT AND IMPORT OF STEEL FROM INDIA

The steel exports of India over the decade have the compounded annual growth rate

(CAGR) of 22.27% against CAGR of imports of steel, which accounted 14.20% in the

respective period. In 1991-92, very inception of the Liberalization, the steel exports

amounted to 368 thousand tons, which increased year-by-year and reached to 5221

thousand tonnes in 2003-04. It accounted for thirteen-fold increase over the period. The

Annual growth rates of exports of steel for the period showed the fluctuating trend, which

ranged between –14.41% in 1994-95 and 101.36 in 1992-93. In 2003-04, the growth rate

was 15.87 %.

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COMPANY PROFILE

SteelMax Rolling Mills Ltd., with the most elegant Integrated Steel plant at Kanjikkode,

Planked, Kerala, in India is a major producer of Steel Bars. The standard of its product

qualities are highly appreciated across the national infrastructure industry. "Quality and

Customer Satisfaction" are our prime motto.

History

SteelMax Rolling Mills Ltd. had a very humble start, during the month of February 2006.

The Directors of the company with their remarkable spirit to win, has led the company

with great stride and have brought the company to this current position. Rapidly

developing with time and technology SteelMax is set to fulfill the requirements of the

clients in critical projects, and focus on larger goals to accomplish in the coming years.

Mission and Vision

The Mission statement set by our visionaries of SteelMax Rolling Mills Ltd. was to earn

due respect in the steel industry by serving with total reliability and constancy to our

customers. Steelmax are consistently striving to attain our set goals. SteelMax aims at

reducing energy cost by all the possible methods. In the near future, company also plan to

increase their production by setting up manufacturing units in different, suitable

locations across the country.

Policies

Policies are an integral part of the company. These policies are unique and important in

forming the basic structure of our organization. Since the authenticity and integrity of a

firm can be judged by the set of policies it follows, SteelMax Rolling Mills Ltd., has

build its own definite set of policies, which makes it stand out from the other steel

manufacturing companies in the region. Few of the major areas, which the company has

made mandatory through policies, are Quality Management, Health, Safety and

Environment Management, & Corporate Social Responsibility.

The Management

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SteelMax Rolling Mill Ltd. has grown with the support and guidance of spirited, brilliant,

hardworking and farsighted group of visionaries and directors. Their hard work and

dedication has surely paid off well; they have led the company with enthusiasm and

aspiration to reach the mark of quality.

Performance

SteelMax was commissioned in the month of 4th February’2006. With various challenges

and goals ahead the company has maintained an overall steady growth throughout.

SteelMax has created a brand of it and stands as a stiff competitor among other reputed

brands of Steel Bars. The below given table indicates our performance in the last four

quarters

It is absolutely understood that they are set to scale higher performance levels. The plan

proposed will be carried with total commitment and dedication. With the expertise of the

Management and with the help of the dedicated employees they are sure to attain

proposed plan. Company have set up concrete plans of action in Monthly, Quarterly,

Yearly manner. firmly believe that they will achieve proposed plan as scheduled.

Our Network SteelMax is expanding our network of customers, which is presently 100.

To reach a larger market to grow their client list and add up to 150 customers. SteelMax

aim at establishing our self in the steel industry as the supplier of choice for its clients,

and to achieve the pinnacle of success in the industry. We have taken a pledge to put our

efforts to improve our Quality to the best and strengthen our financial platform thereby

improving our products to international standards.

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Branding

First of all, for a brand to succeed the product should be good. Branding is an important

part that steelmax have focused on. SteelMax has acquired ISI brand and the company

has been conferred with ISO 9001:2008 certification. We believe in the reliability of

equipment and technology for consistent product that can give greater value to the

customer.

Sales Plan

We have planned strategies to focus on retailers because steel nowadays has come in the

category of fast moving consumer goods. Therefore we plan special training to our

retailers and distributors to manage our brand name. The other important aspect is the

Product Mix Strategy on Quality and Cost, which will improve our Quality Management

and Sales. We have some new re-engineering processes on to reduce our costs which

include utilization of latest technology, outsourcing, imports etc. We see a great demand

pull from the construction industry, and we see what happening in India over the next 5

to 10 years is a demand that we are ready to cater a part of it.

STATEMENT OF THE PROBLEM

Problem faced by SteelMax that it is not a well known brand among the dealers.

Marketing Strategy need to be directed towards brand building. in this industry dealers

have high influence in building brand and growing business . Steelmax is un aware about

level of dealer satisfaction and the problem faced by dealer in doing business with them.

Branding is the main marketing strategy of every marketing activity because it helps to

create product positioning in the minds of customers. So this study has been undertaken

to study the current position of SteelMax in market it is also helpful in identify the area of

improvement.

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OBJECTIVES

To study about the brand perception on dealers mind through detailed analysis.

To study effectiveness of marketing strategy.

To suggest the method to improve marketing strategy for better brand building.

DURATION OF THE STUDY

The duration of the study was 3rd Oct 2013 to 10th Oct 2013

Research Methodology

Research design - Descriptive

Population of the study - customers and dealers of steelmax palakkad

Type of data - primary and secondary data

Sample size - 100 samples

Sample unit - customers in steelmax

Research design

Descriptive research includes surveys and fact finding enquiries of different kinds of project mainly intend to find the effectiveness of brand building in steelmax

Data collection method

The data is collecting both primary and secondary source. Primary data is collected from

well structured questionnaire and secondary data is collected from steelmax records ,

website, magazines etc.

Research instruments:

The structured questioner carefully organized and systematically designed was used by the researcher to collect data.

Sampling design

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Convenient sampling technique was used for the study. Sample size was fixed as 100.

Sample were taken from palakkad area

Tools for analysis and interpretation

Analysis is done using percentage and average. Graphs and chart is used for representation.

LIMITATIONS

Certain dealers are no ready to provide sufficient data.

Practical difficulties of collection of primary data.

Lack Of proper experience on conducting Research studies.

Limitation of sample.

Some of the respondents were reluctant that affected on study.

The time period for this work was just two months, a very short period to deal with a

wide topic.

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REVIEW OF LITERATURE

Branding

. A traditional definition of a brand was: “the name, associated with one or more items in

the product line, that is used to identify the source of character of the item(s)” (Kotler

2000, p. 396). The American Marketing Association(AMA) definition of a brand is “a

name, term, sign, symbol, or design, or a combination of them, intended to identify the

goods and services of one seller or group of sellers and to differentiate them from those

of competitors” (p. 404). Within this view, as Keller(2003a) says, “technically speaking,

the n, whenever a marketer creates a new name, logo, or symbol for a new product, he or

she has created a brand” (p. 3). He recognizes, however, that brands today are much more

than that. As can be seen, according to these definitions brands had a simple and clear

function as identifiers.

Before the shift in focus towards brand s and the brand building process, brands were

just another step in the whole process of marketing to sell products. “For a long time, the

brand has been treated in an off-hand fashion as a part of the product” (Urde 1999,p.

119). Kotler (2000) mentions branding as “a major issue in product strategy”

404). As the brand was only part of the product, the communication strategy

workedtowards exposing the brand and creating brand image. Aaker and Joachimsthaler

(2000)mention that within the traditional branding model the goal was to build brand

image ; atactical element that drives short-term results. Kapferer (1997) mentioned that

“thebrand is a sign -therefore external- whose function is to disclose the hidden qualities

of

the product which are inaccessible to contact” product and to distinguish it from the

competition. “The challenge today is to create astrong and distinctive image” (Kohli and

Thakor 1997, p. 208).

Concerning the brand management process as related to the function of a brand as an

identifier, Aaker and Joachmisthaler (2000) discuss the traditional branding model where

a brand management team was responsible for creating and coordinating thebrand’s

management program. In this situation, the brand manager was not high in the company’s

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hierarchy; his focus was the short-term financial results of single brands and single

products in single markets. The basic objective was the coordination with the

manufacturing and sales departments in order to solve any problem concerning sales and

market share. With this strategy the responsibility of the brand was solely the concern of

the marketing department (Davis 2002). In general, most companies thought that

focusing on the latest and greatest advertising campaign meant focusing on the brand

(Davis and Dunn 2002). The model itself was tactical and reactive rather than strategic

and visionary (Aaker and Joachimsthaler 2000). The brand was always referred to as a

series of tactics and never like strategy (Davis and Dunn 2002).

Brand Building Models

Kapferer (1997) mentions that before the 1980’s there was a different

approach towards brands. “Companies wished to buy a producer of chocolate or pasta:

after 1980, they wanted to buy KitKat or Buitoni. This distinction is very important; in

the first case firms wish to buy production capacity and in the second they want to buy a

place in the mind of the consumer” (p. 23). In other words, the shift in focus towards

brands began when it was understood that they were something more than mere

identifiers. Brands, according to Kapferer (1997) serve eight functions shown in Table

2.1: the first two are mechanical and concern the essence of the brand: “to function as a

recognized symbol in order to facilitate choice and to gain time” (p. 29); the next three

are for reducing the perceived risk; and the final three concern the pleasure side of a

brand. He adds that brands perform an economic function in the mind of the consumer,

“the value of the brand comes from its ability to gain an exclusive, positive and

prominent meaning in the minds of a large number of consumers” (p. 25). Therefore

branding and brand building

should focus on developing brand value.

Kapferer’s view of brand value is monetary, and includes intangible assets. “Brands

fail to achieve their value-creating potential where managers pursue strategies that are not

orientated to maximizing the shareholder value” (Doyle 2001a, p. 267). Four factors

combine in the mind of the consumer to determine the perceived value of the brand:

brand awareness; the level of perceived quality compared to competitors; the level of

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confidence, of significance, of empathy, of liking; and the richness and attractiveness of

the images conjured up by the brand. In Figure 2.1 the relationships between the different

concepts of brand analysis, according to Kapferer (1997), are summarized.

Brand Orientation

Urde (1999) presents Brand Orientation as another brand building model that focuses

on brands as strategic resources. “Brand Orientation is an approach in which the

processes

of the organization revolve around the creation, development, and protection of brand

identity in an ongoing interaction with target customers with the aim of achieving lasting

competitive advantages in the form of brands” (p. 117-118). Brand orientation focuses on

developing brands in a more active and deliberate manner, starting with the brand identity

as a strategic platform. It can be said that as a consequence of this orientation the brand

becomes an “unconditional response to customer needs and wants” This should be,

however, considered carefully given that “what is demanded by customers at any given

moment is not necessarily the same as that which will strengthen the brand as a strategic

resource” (p. 121). Following this reasoning, “the wants an needs of customers are not

ignored, but they are not allowed to unilaterally steer the development of the brand and

determine its identity”

According to the brand orientation model, “the starting point for a process of brand

building is to first create a clear understanding of the internal brand identity. The brand

then becomes a strategic platform that provides the framework for the satisfaction of

customers’ wants and needs” (Urde 1999, p. 129). The point of departure for a

brandoriented company is its brand mission.

Urde’s Brand Hexagon (1999), shown in Figure 2.2, integrates brand equity and brand

identity with a company’s direction, strategy and identity. The right side of the model

reflects the reference function -product category and product, which are analyzed

rationally-, while the left side of the model reflects the emotional function –corporate and

brand name, which are analyzed emotionally. “A brand is experienced in its entirety” (p.

126), which means that both emotions and rational thought are involved. The lower part

of the model -mission and vision- reflects the company’s intentions towards the brand,

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while the upper part reflects the way that target consumers interpret the brand. At the

center of the model lies the core process of brand meaning creation, which includes the

positioning and core values.

In summary, “in a brand-oriented organization, the objective is -within the framework of

the brand- to create value and meaning. The brand is a strategic platform for interplay

with the target group and thus is not limited to being an unconditional response to what at

any moment is demanded by customers”

Additionally, in a later article, Urde (2003) mentions that the brand building process is

two-part: internal and external. He defines the internal process as that used primarily to

describe the relationship between the organization and the brand, with the internal

objective being for the organization to live its brands. Conversely, the external process is

that concerned with relations between the brand and the customer, with the external

objective of creating value and forming relationships with the customer.

Brand Leadership

Aaker and Joachimsthaler (2000) leave behind the traditional branding model and

introduce the brand leadership model, “which emphasizes strategy as well as tactics”. In

this model, the brand management process acquires different characteristics: a strategic

and visionary perspective; the brand manager is higher in the organization, has a longer

time job horizon, and is a strategist as well as communications team leader; building

brand equities and developing brand equity measures is the objective; and, brand

structures are complex, as the focus is on multiple brands, multiple products, and multiple

markets. In short, brand identity and creating brand value become the drivers of strategy.

The brand leadership model is Aaker and Joachimsthaler’s (2000) proposal for building

strong brands. They argue that there are four challenges, summarized in Figure 2.3, that

must be addressed:

1) The organizational challenge: to create structures and processes that lead to strong

brands, with strong brand leader(s) for each product, market or country. Also, to establish

common vocabulary and tools, an information system that allows for sharing information,

experiences and initiatives, and a brand nurturing culture and structure. Supporting this

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challenge, McWilliams and Dumas (1997) argue that everyone on the brand team needs

to understand the brand building process, and they propose metaphors as intelligent tools

to transmit the values of a firm. Doyle (2001b) adds that brand management must be seen

as part of the total management process and not only as a specialist marketing activity.

2) The brand architecture challenge: to identify brands, sub-brands, their relationships

and roles. It is also necessary to clarify what is offered to the consumer and to create

synergies between brands; to promote the leveraging of brand assets; to understand the

role of brands, sub-brands, and endorsed brands in order to know when to extend them;

and to determine the relative role of each brand of the portfolio. Aaker (2004a) renames

brand architecture calling it instead brand portfolio strategy. He says that “the brand

portfolio strategy specifies the structure of the brand portfolio and the scope, roles, and

interrelationships of the portfolio brands” (p. 13). Therefore, this challenge could be

renamed the brand portfolio strategy challenge.

3) The brand identity and position challenge: to assign a brand identity to each managed

brand and to position each brand effectively to create clarity. Speak (1998) supports and

adds to this stating that the brand identity challenge should have a long-term focus in

order to integrate the brand building process into the fabric of the organization.

4) The brand building program challenge: to create communication programs and other

brand building activities to develop brand identity, that help not only with the

implementation but also in the brand defining process. In short, brand building must do

what is necessary to change customer perceptions, reinforce attitudes, and create loyalty.

One tactic to do so would be to consider alternative media in addition to advertising.

Doyle (2001b) also adds that the brand strategy must maximize shareholder value.

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Brand Asset Management

Davis (2002) also talks about a new way of managing brands. He argues that brands,

along with people, are a company’s most valuable asset. “There is growing support for

viewing and managing the brand as an asset and thus having the brand drive every

strategic and investment decision” (Davis and Dunn 2002, p. 15). This becomes relevant

given that the top three strategic goals for brand strategy nowadays are increasing

customer loyalty, differentiating from the competition, and establishing market leadership

(Davis and Dunn 2002). It is important for a company to change its state of mind in order

to adopt this perspective because “brand management has to report all the way to the top

of the organization and has to involve every functional area” (Davis 2002, p. 9). Davis

(2000) defines Brand Asset Management as “a balanced investment approach for

building the meaning of the brand, communicating it internally and externally, and

leveraging it to increase brand profitability, brand asset value, and brand returns over

time” (p. 12). Some of the shifts from traditional brand management to this new model

are highlighted in Table

The Brand Asset Management process, as shown in Figure 2.4, involves four phases and

eleven steps. The first phase is to develop a brand vision, which consists of a single step:

developing the elements of a brand vision. The basic objective of this step is to clearly

state what the branding efforts must do to meet corporate goals. The second phase is to

determine the company’s “BrandPicture” by understanding consumer perceptions about

the brand and of competitor brands. This phase consists of three steps: determining the

brand’s image, creating the brand’s contract - list of customer’s perceptions of all the

current promises the brand makes-, and crafting a brand-based customer model -which

allows for understanding how consumers act and think, and how and why they make their

purchase decisions. The third phase is to develop a brand asset management strategy, in

order to determine the correct strategies for achieving goals according to the brand vision.

This phase consists of five steps: positioning the brand, extending the brand,

communicating the brand’s positioning, leveraging the brand, and pricing the brand.

Finally, the fourth phase is to support a brand asset

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Corporate Branding

most recent turn in branding literature emerged in the mid-nineties. Businesses began

shifting their focus from product brands to corporate branding (de Chernatony 1999,

Hatch and Schultz 2003). The corporate brand perspective supports, and could be a

consequence of, the strategic view of brands. King (1991) is considered to be the first

author to make a clear distinction between product and corporate brands, emphasizing the

importance of a multidisciplinary approach in order to manage them. It is after 1995

when more research on corporate branding is published. Balmer and Gray’s (2003)

literature review on corporate branding presents different visions that have been

developed during the years prior. They conclude that corporate brands are leading to the

development of a new branch of marketing which should be known as “corporate- level

marketing” (Balmer and Greyser 2003).

Aaker (2004a) defines a corporate brand as a brand that represents an organization and

reflects its heritage, values, culture, people, and strategy. Corporate branding congruent

with the strategic brand vision (Schultz and Hatch 2003), dwells on developing brands at

an organizational level (Knox and Bickerton 2003) -which requires managing interactions

with multiple stakeholders (Balmer and Gray 2003, Knox and Bickerton 2003, Hatch and

Schultz 2003, Aaker 2004b). A corporate brand is defined primarily by organizational

associations (Aaker 2004b), and thus can develop and leverage organizational

characteristics, as well as product and service attributes (Aaker 2004a). Urde (2003)

states that corporate brands must reflect organizational values. In other words, an

organization’s core values must be the guiding light of the brand building process, both

internally and externally. They must be built into the product, expressed in behavior, and

reflected in communication. “Core values influence continuity, consistency and

credibility in the building of a corporate brand”

Brand Equity

The brand equity concept has been mentioned in more than one of the previously

analyzed models. But what exactly is brand equity? Brand equity, as first defined by

Farquhar (1989), is “the ‘added value’ with which a given brand endows a product” (p.

24). Apart from Farquhar’s first definition of brand equity, other definitions have

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appeared. According to Lassar, Mittal, and Sharma (1995), brand equity has been

examined from a financial (Farquhar, Han, and Ijiri 1991; Simon and Sullivan 1993;

Kapferer 1997, Doyle 2001b), and a customer-based perspective (Keller 1993; Shocker,

Srivastava, and Rueckert 1994; Chen 2001). In other words, financial meaning from the

perspective of the value of the brand to the firm, and customer-based meaning the value

of the brand for the customer which comes from a marketing decision-making context

(Kim, Kim, and An 2003).

Brand equity has also been defined as “the enhancement in the perceived utility and

desirability a brand name confers on a product” (Lassar, Mittal and Sharma 1995, p.13).

High brand equity is considered to be a competitive advantage since: it implies that firms

can charge a premium; there is an increase in customer demand; extending a brand

becomes easier; communication campaigns are more effective; there is better trade

leverage; margins can be greater; and the company becomes less vulnerable to

competition (Bendixen, Bukasa, and Abratt 2003). In other words, high brand equity

generates a “differential effect”, higher “brand knowledge”, and a larger “consumer

response” (Keller 2003a), which normally leads to better brand performance, both froma

financial and a customer perspective.

CSR

Finally, corporate social responsibility (CSR) must be mentioned as another concept that

is influencing the development of brands nowadays, especially corporate brands. Both

branding and CSR have become crucially important now that the organizations have

recognized how these strategies can add or detract from their value (Blumenthal and

Bergstrom 2003). Criticism of business is more far-reaching than ever before due to

higher expectations of businesses today (Smith 2003). As Smith and Alcorn (1991)

mention, corporations have integrated marketing strategy and social responsibility, and

this integrated strategy has been labeled cause marketing. Because corporations already

invest in both branding and philanthropy, the rationale for integrating branding and CSR

derives from the synergies created when both strategies merge (Blumenthal and

Bergstrom 2003).

CSR literature is ample and it is not the subject of this thesis to analyze it. However, it is

necessary to establish how closely related is brand building towards social values to this

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concept. CSR refers to the obligations of the firm towards society (Smith 2003). It also

refers to the consideration of and response to issues beyond the narrow economic,

technical, and legal requirements a firm has in order to accomplish social benefits along

with traditional economic gains (Husted 2003). An example of a CSR governance

structure is a collaborative scheme, which involves a partnership between the firm and an

organization in which the firm transfers resources to the organization in order to carry out

CSR activities jointly (Husted 2003). This same structure is necessary to implement the

brand building towards social values model that is described in the following sections.

CSR can be defined in terms of legitimate ethics or from an instrumentalist perspective

where corporate image is the prime concern (McAdam and Leonard 2003). Brand

building towards social values relates to CSR in both ways. Given that brand building is

strategic, and according to strategy the brand must reflect the values of a firm, the

corporate responsibility values projected by a brand must be legitimate. If not, the risk of

being perceived as dishonest or untrustworthy creates a lack of congruence that can

negatively affect brand image. While corporate image is not the prime concern here, as

just explained, it is an important element in the branding process.

Blumenthal and Bergstrom (2003) expose four key reasons for integrating CSR under the

umbrella of the brand which are: recognizing the magnitude of the brand promise;

maintaining customer loyalty; maximizing investment that would be placed in CSR

regardless of the brand; and avoiding conflict with shareholders. In other words, “branded

CSR turns philanthropy from implicit delivery of the promise to an explicit one” (p. 337).

This becomes everyday more important as the public wants to know what, where, and

how much brands are giving back to society.

Brand Asset Management

Davis (2002) also talks about a new way of managing brands. He argues that

brands,along with people, are a company’s most valuable asset. “There is growing

support for viewing and managing the brand as an asset and thus having the brand drive

every strategic and investment decision” (Davis and Dunn 2002, p. 15). This becomes

relevant given that the top three strategic goals for brand strategy nowadays are

19

increasing customer loyalty, differentiating from the competition, and establishing market

leadership (Davis and Dunn 2002). It is important for a company to change its state of

mind in order to adopt this perspective because “brand management has to report all the

way to the top of the organization and has to involve every functional area 2002, p. 9).

Davis (2000) defines Brand Asset Management as “a balanced investment approach for

building the meaning of the brand, communicating it internally and

externally, and leveraging it to increase brand profitability, brand asset value, and brand

returns over time” (p. 12).

The Brand Asset Management process, as shown in Figure 2.4, involves four phases and

eleven steps. The first phase is to develop a brand vision, which consists of a single step:

developing the elements of a brand vision. The basic objective of this step is to clearly

state what the branding efforts must do to meet corporate goals. The second phase is to

determine the company’s “BrandPicture” by understanding consumer perceptions about

the brand and of competitor brands. This phase consists of three steps: determining the

brand’s image, creating the brand’s contract - list of customer’s perceptions of all the

current promises the brand makes-, and crafting a brand-based customer model -which

allows for understanding how consumers act and think, and how and why they make their

purchase decisions. The third phase is to develop a brand asset management strategy, in

order to determine the correct strategies for achieving goals according to the brand vision.

This phase consists of five steps: positioning the brand, extending the brand,

communicating the brand’s positioning, leveraging the brand, and pricing the brand.

Finally, the fourth phase is to support a brand asset management culture. This final phase

consists of two steps: creating a measure of the return on brand investment, and

establishing a brand-based culture.

20

DATA ANALYSIS AND INTERPRETATION

21

TABLE: 3. 1: General Reason for preferring steelmax

Factors Respondents Percentage

Price 12 12

Quantity 2 2

Promotion 35 35

Availability 51 51

Total 100 100

CHART: 3.1: Reason for preferring steelmax

Interpretation

22

price quantity promotion availability0

10

20

30

40

50

60

122

35

51

RESON FOR PREFERING STEELMAX

Respondents

From the above table, It is inferred 51% of the respondents are preferring steel max on

the basis of availability.35% prefer on the basis of promotion and others prefer on the

basis of price and quality

TABLE3.2: Opinion of product purchase from steelmax


8mm 48 48

10mm 15 15

12mm 24 24

16mm 13 13

Total 100 100

Chart 3.2: Opinion of product purchase from steelmax

8mm 10mm 12mm 16mm0

10

20

30

40

50

60

48

1524

13

RespondantsRespondants

Interpretation

From the above table ,it is inferred 48% of dealers purchase 8mm steel bars while 24%

purchase 12mm and others 13%and15% purchase 16mm &10mm. 8mm steel bars are

high demand.

23

Table 3.3: Rate the steelmax regard the quality

factor Respondents Percentage

Very good 35 35

Good 42 42

Average 23 23

poor 0 0

Total 100 100

Chart 3.3: Rate the steelmax regard the quality

Very good Good Average poor0

5

10

15

20

25

30

35

40

45

3542

23

0

RATE THE STEELMAX REGARD THE QUALITY

Respondants

Interpretation

From the above table,it is inferred that 42% of the respondants says steelmax product is

good quality.35% says very good and 23% says average there is no one said badly about

the quality of steel max product.

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Table 3.4: Opinion about using the product

Factor Respondents Percentage

Highly satisfied 69 69

Satisfies 28 28

Dissatisfied 3 3

Highly dissatisfied 0 0

Total 100 100

Chart3.4: Opinion about using the product

Highly satisfied Satisfies Dissatisfied Highly dissatisfied0

10

20

30

40

50

60

70

80

OPENION ABOUT USING THE PRODUCT

Respondents

Interpretation

From the above table, it is inferred that 69% are highly satisfied about the product. 28%

are satisfied and 3% are dissatisfied because of poor loading facility.

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Table 3.5: Competitive advantages of steel max


Good service 72 72

Quality 20 20

Promotion 5 5

Price 3 3

Total 100 100

Chart 3.5: Competitive advantages of steel max

Good service Quality Pramotion Price0

10

20

30

40

50

60

70

80

72

205 3

RespondantsRespondants

Interpretation

27

From the above table, it is inferred that72% of respondents said that steel max provide

good service.20% said that thet manufactured good quality products and 5 &3% said that

promotion and price is the comparative advantage of steel max.

Table 3.6: Best AD method of steel max


Internet 20 20

Word of mouth 70 70

Social media 0 0

Others 10 10

Total 100 100

Chart 3.6: Best AD method of steelmax

Internet Word of mouth

Social media Others0

10

20

30

40

50

60

70

80

BEST AD METOD OF STEELMAX

Respondents

Interpretation

28

From the above table, it is inferred that 70% of respondents prefer steel max on the basis

of word of mouth.20% is looking internet and comes to steel max and10% is seeing some

ad related steel max then they prefer the company .there is no considerable influence

through social media.

Table 3.7: Rating of steelmax dealing with customer


0-30 1 1

30-60 8 8

60-90 55 55

100 36 36

Total 100 100

Chart 3.7: Rating of steelmax dealing with customer

0-30 30-60 60-90 100 above0

10

20

30

40

50

60

18

55

36

RATING OF STEELMAX DEALING WITH CUSTOMER

Respondents

Interpretation

29

From the above table, it is inferred that 55% said that rating of 60-90 they are

satisfied .36% full satisfied with product .1% of customer are dissatisfied

Table 3.8: Execution of order from steelmax


0-30 - -

30-60 5 5

60-90 15 15

100 80 80

Total 100 100

Chart 3.8: Execution of order from steelmax

0-30 30-60 60-90 BELOW 1000

102030405060708090

0 515

80

RespondentsRespondents

Interpretation

30

From the above table, it is inferred that80% are rating 100.and 15% rating 60-90 and 5%

rating 30-60 there is no one rating 0-30.

Table 3.9: Getting offer from steel max


Offers 0 0

Discount 0 0

Coupons 0 0

Credit 100 100

Total 100 100

Chart 3.9: Getting offer from steel max

Offers Discount Coupons Credit

0

20

40

60

80

100

120

Respondents

Respondents

31

Interpretation

From the above table, it is inferred that 100% of customer said that only offer steelmax

providing is a credit period of 7 days.

Table 3.10: Dealers switch over to any other brand


yes 5 5

no 95 95

Total 100 100

Chart 3.10: Dealers switch over to any other brand

yes no0

102030405060708090

100

Respondents

Respondents

Interpretation

From the above table, it is inferred that 95% of dealers still using only steelmax products.

But 5% moving to kairali because of loading problem.

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Table 3.11: Suggestion to improve the branding’

factors Respondents Percentage

CSR activity 30 30

Service 2 2

promotion 15 15

Credit period 53 53

total 100 100

Chart 3.11: Suggestion to improve the branding

CSR activity Service promotion Credit period0

102030405060

30

215

53

RespondentsRespondents

Interpretation

33

From the above table, it is inferred that 53% customer said that they want more credit

period but company provide only 7 days .30% customer said csr activity will improve

the brand building.15% said promotion and 2 % tell about the service because steel max

provide good service every one.

Table 3.12: Behavior of employee why purchasing steels

factors Respondents Percentage

Very friendly 80 80

Friendly 20 20

Partially - -

Poor - -

total 100 100

Chart 3.13: Behavior of employee why purchasing steels

Very friendly Friendly Partially Poor0

10

20

30

40

50

60

70

80

90

Respondents

Respondents

34

Interpretation

From the above table, it is inferred that 80% of respondents said that steelmax employees

are very friendly with customers.20% said that they are friendly.most of them are very

good relation with customer

Table 3.13: Influences of social net work media


Very high 0 0

High 0 0

Low 5 5

poor 95 95

Total 100 100

Chart 3.13: Influences of social net work media

Very high High Low poor0

102030405060708090

100

Respondents

Respondents

35

Interpretation

From the above table, it is inferred that 95% of respondents said that social net work

media influence is very poor in steel max. 5% said that is a low influence through social

net work media. 5% suggested online advertisement is good because they saw the

advertisement in one web sites.

Table 3.14: Opinion about steel max


Very good 62 62

Good 30 30

Average 8 8

Bad 0 0

Total 100 100

Chart 3.14: Opinion about steel max

36

Very good Good Average Bad0

10

20

30

40

50

60

70

Respondents

Respondents

Interpretation

From the above table, it is inferred that 62% said very good opinion about steel max.30%

said the good opinion and 8% tell it’s just an average because these persons face some

loading problems.

Table 3.15: Additional service


yes 0 0

no 100 100

Total 100 100

Table 3.15: Additional service

37

yes no0

20

40

60

80

100

120

Additional service

Respondents

Interpretation

From the above table, it is inferred that 100% of respondents said that there is no

additional service provided from the side of company.

Table 3.16: Response of credit period company provide


7 90 90

10 5 5

30 0 0

0 5 5

Total 100 100

Chart 3.16: Response of credit period company provide

38

7 10 30 00

102030405060708090

100

Respondents

Respondents

Interpretation

From the above table, it is inferred that90% of respondents said that they get only 7 days

credit period.5% respondents get 10 days and 5% get 0 days.

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FINDINGS, SUGGESSION AND CONCLUTION

FINDINGS

1 .Major respondents preferring SteelMax on the basis of availability of

steels(Ref:table3.1)

2. Around 48% of respondents purchase 8mm steel bars (Ref: table 3.2)

3. Majority of respondents says SteelMax produce good quality steel bars.(Ref: table 3.3)

4. Major respondents are highly satisfied while using the product. (Ref: table 3.4)

5. Majority of respondents freely recommended SteelMax products to

others(Ref:table3.5)

6. Major respondents says SteelMax provide good service (Ref: table 3.5)

7. Around 70% respondents says word of mouth is the best ad method of

steelmax(Ref:3.6)

40

8. Major respondents are satisfied with dealings of steelmax (Ref: table 3.7)

9.Around 80% of respondents says fully satisfied with execution of order(ref tab:3.8)

10. Around 100% respondent say that credit period provided by the company is very

good (Ref: table 3.9)

11. Around 5% of dealers switch over to KAIRALI STEELS(Ref: table 3.10)

12.Major respondents says they want more credit periods(Ref: table 3.11)

13. Majority of respondents says employees are behaving very friendly(Ref: table 3.12)

14. Majority of respondents says poor influence of social net work media(Ref: table

3.13)

15.Around 100% of respondents says there is no additional service get from the side of

SteelMax(Ref: table 3.14)

16.Around 90% respondents says they get maximum 7 days credit period. (Ref: table

3.16)

SUGGESTION

From the research it was found that the awareness of the product and organization

can be increased by placing hoardings and flex boards on the road sides from

Palakkad to Kanjikkode

It highly recommended that the company appoint (delegate) an employee for

collecting periodical feedback from the dealers regarding customer feedback

It is also recommended that a cross verification call the customers to clarify their

grievance / concerns

41

Bring out advertisement in news paper ,tv , and hoarding it can help the company

to place its products in the mind of the customers in a better way.

Company need to start a 24 *7 dealer help line service for helping the dealer to

fulfill the orders more easily.

The company need to maintain better customer relationship with dealers by

providing better services..

The company can initiate various CSR activity to build a brand building

From the study we can understand steelmax having strong competitors. Some

Dealers are not satisfied in doing business with steelmax then they change to

kairali. Steelmax need to maintain good loading facility and provide good

service.

Other companies are giving various type of offers to dealers. steelmax can also

various offers similar to their competitors.

Company need to improve their advertising through social net work media

Company can think about appoint a brand ambassador for improving their brand

The company can participate in construction exhibition

company can work along with construction firms

42

CONCLUTION

In India there are number of branded steel manufactures trying to get leadership position

in the market , but this is possible only through boosting the brand building and brand

preferences among the people.

Many firms and companies try to attain number one position and improve its brand by

creating awareness about their brand depending up on the potential market.

The analysis of the study show that steelmax customers are satisfied about the product

there is high opportunity for growth and brand building. But to get the number one

position in the competitive market, steelmax has to improve their effective sales,

personal, promotional, advertising medium and provide better loading facility.

43

As per the study steelmax having good brand image among the customers, only few are

deviated based on the above points the company and dealer can improve their service

towards the acquiring maximum brand image.

BIBILIOGRAPHY

BOOKS

Philip kotler (2003) “ Marketing Management” prentice hall , New Delhi

Dr . Sharma D. D (1998) “Marketing Research” sulthan chand & sons ,New Delhi

C R Kothari “Research Methodology”

Kotler 2000” Marketing Management”, p. 396

Keller(2003a “ Brand building “ (p. 404)

Leverage and Clarity. New York, Free Press.

44

----- (2004b), “Leveraging the Corporate Brand” California Management Review, 46

(3), 6-18.

AAKER, DAVID A. AND ERICH JOACHIMSTHALER (2000), Brand Leadership,

London, Free Press.

AAKER, JENNIFER L. (1997), “Dimensions of Brand Personality”, Journal of

Marketing Research, 34

(August), 347-356.

BALDAUF, ARTUR, KAREN S. CRAVENS, AND GUDRUN BINDER (2003),

“Performance Consequences of

Brand Equity Management: Evidence from Organizations in the Value Chain”,

Journal of Product and

Brand Management, 12 (4), 220-236.

BALMER, JOHN M.T. AND EDMUND R. GRAY (2003), “Corporate Brands: What

Are They? What of

Them?”, European Journal of Marketing, 37 (7/8), 972-997.

BALMER, JOHN M.T. AND STEPHEN A. GREYSER (Eds.) (2003), Revealing the

Corporation: Perspectives

of Identity, Image, Reputation, Corporate Branding and Corporate-Level Marketing,

Routledge, London.

BENDIXEN, MIKE, KALALA A. BUKASA, AND RUSSELL ABRATT (2003),

“Brand Equity in the Business-to-

Business Market”, Industrial Marketing Management, 33, 371-380JURNELS

WEB SITES REFERRED …

1. WWW.Slideshare .COM ( http://www.slideshare.net/vishnuvijay351/newsfeed)

2. WWW.business-standard.COM (http://www.business-standard.com/todays-paper

3. WWW.exportersindia.com (http://www.mouthshut.com/review/Exportersindia-

com-review-otlnnqsmrr)

45

http://WWW.exportersindia.com/

http://WWW.business-standard.COM/

http://WWW.Slideshare/

4. WWW.scribd.com ( http://www.scribd.com/browse/Books/Business-marketing)

5. WWW.wikipedia.COM (http://en.wikipedia.org/wiki/Brand_Building)

6. YOUTUBE youtube.com/watch?v=QlCxcvTx7jg

46

http://WWW.wikipedia.COM/

http://WWW.scribd.com/

A STUDY ON EFFECTIVENESS OF MARKETING STRATEGY ON BRAND BUILDING OF THE PRODUCT OF STEELMAX”.

QUESTIONNAIRE

For analyzing the brand building level

Steel Max

Kanjikkode

Name of the agent :

Area :

Code :

1. Why do you prefer steel max?

a. price[] b. quantity[] c. promotion[] d. availability[]

2. Which product do you purchase from steel max?

a. 8mm[] b. 10mm[] c. 12mm[] d. 16mm[]

3. How do you rate SteelMax with regards to Quality

a. very good[] b. good[] c. average[] d. poor[]

4. Any problem you faced while using the products?

a. Yes[] b. No[]

5. Will you recommend steel max products to others?

a. Yes[] b. No[]

6. Competitive advantage of steel max?

a. good service[] b. quality[] c. promotion[] d. price[]

7. Which is the best ad method for steel max industry?

a. Internet[] b. word of mouth[] c. social media[] d. other[]

8. How will you rate steel max dealing with you?

a. 10-20[] b. 20-40[] c.40-60[] d.100[]

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9. Rate the execution of order from SteelMax

a. 10-20[] b. 20-40[] c.40-60[] d.100[]

10. Whether you have switch over to any other brand

a. yes[] b. no[]

11. What are the suggestion to improving the branding

a. Promotion[] b. service[] c.CSR activity[] d. other[]

12. What was the behavior of employee why purchasing steel?

a. Very Friendly[] b. friendly[] c. partially[] d. poor[]

13. How to influence social net work media?

a. Very high[] b. high[] c. low[] d. poor[]

14. Do you get any additional services?

a. Yes[] b. No[]

15. What is the credit period company provides ?

a. 7 days[] b.10 days[] c.30 days[] d. zero days[]

16. What is the other offer provided?

a. Discount[] b. coupons[] c. credit period[] d. other[]

17. Suggestions about steel max?

a.---------------------------------------------------

b.---------------------------------------------------

c.---------------------------------------------------

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Branding on steelmax

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