1. 1 COMPETITORS ANALYSIS & DEALERS PERCEPTION TOWARDS
BHUSHAN STEEL LTD SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS
PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION
(Affiliated To Ch. Charan Singh University, Meerut) Academic
Session [2012-2015] Submitted by: DARPAN AGARWAL Roll No: - 9356572
UNDER THE GUIDANCE OF: External Supervisor - Internal Supervisor
MR. NEERAJ AGARWAL Ms. AKANSHA TYAGI D.G.M MARKETING ASSISTANT
PROFESSOR BHUSHAN STEEL LTD. IMS GHAZIABAD IMS GHAZIABAD
(University Course Campus)
2. 2 NH-24, ADHYATMIK NAGAR GHAZIABAD. PREFACE Summer Training
assignment is a part of Bachelors of Business Administration
program of the Institute of Management Studies, Ghaziabad. Summer
assignment not only gives an opportunity to deal with real life
situations in a business / industrial environment but also gives a
student of management of first hand opportunity to put his
theoretical inputs into practice . The project report mentions the
honest efforts to understand the marketing concepts in real life
situations. This report is being prepared for the study of
competitor analysis & dealers perception toward Bhushan Steel
Ltd along with the analysis of major flat Steel producers like TATA
STEEL, JINDAL STEELS and SAIL in terms of preference, cost,
quality, after sales service etc. Besides this, the report also
puts on to compare market share of Bhushan Steel Ltd and other
organizations. DARPAN AGARWAL
3. 3 i ACKNOWLEDGEMENT I am thankful to the BHUSHAN STEEL
LIMITED, Sahibabad industrial area, Dist. Ghaziabad for allowing me
to undergo my summer Training for partial fulfilment of the
requirement for the degree of Bachelors of Business Administration.
The accomplishment of the present study became possible by
invaluable assistance and guidance of our professional guides and
colleagues to whom we are gratefully indebted. First of all I wish
to express my special thanks to Mr Neeraj Agarwal (DGM Marketing)
of BSL. His cheerful induction on my first visit to companys office
helped me to know about BHUSHAN STEELS as a company and the
activities I had to perform. I am thankful to Mr Manish Sharma
(Marketing Manager) for providing the necessary orientation
throughout the project. I wish to thank and pay regard to all my
teachers specially Ms. Akansha Tyagi (Assistant Professor, IMS
Ghaziabad) without their guidance and blessing this project could
not be completed. I am also thankful to all the other people of
marketing department, all the dealers, shopkeepers and all the
people who have already used the flat Steel products whom I met
during the survey, for their cooperation throughout the project.
Last but not the least we are indebted to our parents for their
moral support during the course of study. Date: - 8/5/2015 DARPAN
AGARWAL ii
4. 4 DECLARATIONS I Darpan Agarwal (Roll No. 9356572) student
of Institute of Management Studies, Ghaziabad hereby declare that
the project entitled COMPETITORS ANALYSIS & DEALERS PERCEPTION
TOWARDS BHUSHAN STEEL LTD is the original work done by me and the
information provided in the study is authentic to the best of my
knowledge. This study report has not been submitted to any other
institutions or university for the award or any other degree.
DARPAN AGARWAL iii
5. 5 EXECUTIVE SUMMARY Through this project we came to know
about the sales & competitor analysis & consumer behavior
towards Bhushan Steel Ltd. This report looks into a steel industry,
well famous for its steel products. Bhushan Steel Ltd. is one of
the names in steel industry which has high reputation and brand
value in the market. So far research is concerned and survey is
done on 100 Respondents. The survey was done to create data base
for the company and also do the analysis of the project report. The
result which we found out through surveys helped the company to
redesign some of its policies. The objective of the product is to
do competitor analysis in comparison to the brand preferred in the
market in terms of product range, pricing, availability, supply,
quality and after sales services and also to understand the
Marketing mix and sales analysis of the flat Steel products.
Bhushan Steel Ltd. serves the interest of their consumers and also
it a competitive organization. The major finding indicates that
Bhushan Steel Ltd. should take some more initiative to expand their
business overseas and adopt more advertising principles to
popularize their products. iv
6. 6 TABLE OF CONTENTS S.No. Topic Page no. CERTIFICATE i
PREFACE ii ACKNOWLEDGEMENTS iii EXECUTIVE SUMMARY iv 1. OVERVIEW OF
INDIAN & WORLD STEEL INDUSTRY 1-4 2. ABOUT THE COMPANY 5-19 3.
5Ps of Marketing- 3.1 Product 3.2 Price 3.3 Place 3.4 Promotion 3.5
Packaging 20-34 20-27 28-29 29-33 34 34 4. APPLICATIONS 35-36 5.
RESEARCH METHODOLOGY 5.1 RESEARCH OBJECTIVE 5.2 SAMPLE &
RESEARCH DESIGN 5.3 DATA COLLECTION 37-41 38 39-40 39 6. DATA
ANALYSIS 42-58 7. FINDINGS 59 8. SUGGESTIONS 60 9. LIMITATIONS 61
10. BIBLIOGRAPHY 62 11. ANNEXURE 63-64
7. 7 OBJECTIVES OF THE STUDY To understand the Marketing mix of
Bhushan Steel Ltd. Sales analysis of the flat Steel products of
Bhushan Steel Ltd. To do competitor analysis in comparison to the
brand preferred in the market in terms of product range, pricing,
availability, supply, quality and after sales services. To know
about Dealers Perception for flat steel products of Bhushan Steel
Ltd.
8. 8 OVERVIEW OF THE INDIAN & WORLD STEEL INDUSTRIES
9. 9 INTRODUCTION Steel is essential to the modern world, and
its use is critical in enabling man to move towards a sustainable
future. Whether in lighter, more efficient vehicles or renewable
energy generation, steel is a fundamental part of a greener world.
SAIL and Tata Steel have been the major steel industries of India.
Since 1990, a huge investment has been made into the industry.
Indian Steel Industry also went through a rough phase but improved
after 2002. India has now emerged as one of the largest producers
of steel in the entire world. Almost all varieties of steel are now
being produced in the country. India has also emerged as a net
exporter of steel and Indian steel is being increasingly accepted
in the global market. World Steel in Figures 2014:- The World Steel
Association (world steel) has published the 2014 edition of World
Steel in Figures. COUNTRY PRODUCTION (MT) CHINA 739 JAPAN 110.2
UNITED STATES 92.6 INDIA 82.3 RUSSIA 73.8
10. 10 Industry trends: Indian and Global perspectives, recent
happenings. Steel is the back bone of human civilization, it is
very crucial in development of a modern economy. The per capita
consumption of steel shows the living standard of people in any
country. Global Perspective: The industry directly employs about
more than two million people worldwide, with a further two million
contractors and four million people in the supporting industries.
Considering steels position as the key product supplier to
industries such as automotive, construction, transport, power and
machine goods, and using a multiplier of 25:1, the steel industry
is at the source of employment for more than 50 million people.
World crude steel production has increased from 851 mega tonnes
(Mt) in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900).World
average steel use per capita has steadily increased from 150 kg in
2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have
all entered the top 10 steel producers list in the last 40 years.
Indian Perspective: At the time of independence, India had a small
Iron and Steel industry with production of about a Million tonnes
(mt). In due course, the government was mainly focusing on
developing basic steel industry, where crude steel constituted a
major part of the total steel production. Many public sector units
were established and thus public sector had a dominant share in the
steel production till early 1990s. Mostly private players were in
downstream production, which was mainly producing finished steel
using crude steel products. Capacity ceiling measures were
introduced. Basically, the steel industry was developing under the
controlled regime, which established public sector steel companies
in various segments. Till the early 1990s, when economic
liberalization reforms were introduced, the steel industry
continued to be under the control of Indian regulation were
constituted such as large plant capacities were reserved only for
public sector under capacity control measures; price regulation;
for additional capacity creation
11. 11 Producers had to take license from the government;
foreign investment was restricted; and there were restrictions on
imports as well as exports. But after liberalization many reforms
and regulation were changed which brought the new era for
development in steel industry. Some of the major developments were:
1. Large plant capacities that were reserved for public sector were
removed; 2. Export restrictions were eliminated; 3. Import tariffs
were reduced from 100 percent to 5 percent; 4. Decontrol of
domestic steel prices; 5. Foreign investments was encouraged, and
the steel industry was part of the high priority industry for
foreign investments implying automatic foreign equity participation
up to 100 percent; and 6. System of freight ceiling was introduced
in place of freight equalization scheme. Due to this, the domestic
steel industry has since then, become market oriented and
integrated with the global steel industry. This has helped private
players to expand their operations and bring in new cost effective
technologies to improve competitiveness not only in the domestic
but also in the global market. The Indian steel industry comprises
of the producers of finished steel, semi-finished steel, stainless
steel and pig iron. Indian steel industry, having participation
from both public sector and private sector enterprises, is one of
the fastest growing markets for steel and is also increasingly
looking towards exports as driving the growth of the industry.
Indian steel Industry Structure: Indian iron and steel industry can
be divided into two main sectors: Public sector and Private sector.
Further on routes of production it can be classified as: Integrated
producer which convert iron ore into steel e.g. SAIL, TISCO, etc
and Secondary producer which make steel from sponge iron or scrap
e.g. ISPAT Industries, Essar.
12. 12 ABOUT THE COMPANY
13. 13 ABOUT THE COMPANY Bhushan Steel Ltd formerly known as
Bhushan Steel & Strips Ltd. is a part of the Bhushan Group and
is one of the leading prominent players in Steel Industry. Indias
3rd largest Secondary Steel Producer with 2 million tons per annum
(approx.), production capacity. Bhushan Steel was the brain child
of Mr. B. B. Singhal, and it first marked its presence in Sahibabad
(Uttar Pradesh) in 1987. The company has three manufacturing units
in the state of Uttar Pradesh (Sahibabad Unit), Maharashtra
(Khopoli unit), and Orissa Plant (Meramandali unit) in India and
sales network is spread across the Globe. POLICIES Integrated
Quality Policy. Environment, Occupational Health Policy. Safety
Management System Policy.
14. 14 MISSION Our mission is to grow our companyby providing
innovative strong and high performance products and solutions to
meet our globalcustomer needs. , Is the motto of BhushanSteel.
Bhushan Steel Ltd. commits to produce cold rolled and galvanized
Steel sheets of world class quality in a safe, healthy and clean
environment by involving employees with continual improvements in
system implementation, technological advancement, operational
integration, Prevention of pollution & hazards maintaining
VISION Thevision of evolving into a totally Integrated Steel
Producer by committing to achieve the highest standardsof Quality
through Cutting-EdgeTechnologyand ensuring minimum wastage. BSLs
vision of total integration is a lot closer to realization today.
Through seamless backward integration, BSL is consolidating its
position on the entire Steel value chain from iron ore to
specialized is surging ahead
15. 15 BUSINESS OVERVIEW OF Bhushan Steel Ltd Mar ' 14 Mar ' 13
Mar ' 12 Mar ' 11 Mar ' 10 Sales 9,940.96 7,000.46 5,640.35
4,957.56 4,203.95 Operating profit 3,003.70 2,037.17 1,452.74
1,033.44 832.60 Interest 1,046.07 414.04 210.01 252.96 136.85 Gross
profit 1,985.87 1,688.21 1,360.51 798.40 749.20 EPS (Rs) 48.24
48.65 39.83 19.44 19.36 SHAREHOLDERS PATTERN Shareholders
Percentage Promoters 64.20% Corporate Bodies 25.10% Individuals
7.80% Institutional Investors 2.90% Total 100%
16. 16 ADMINISTRATION SET UP OF BHUSHAN STEEL LTD :- MANAGING
DIRECTOR Mr. Neeraj Singhal ANGUL PLANT HEAD SAHIBABAD PLANT HEAD
KHAPOLI PLANT HEAD FINANCE DEPARTMENT HUMAN RESOURCE DEPARTMENT
MARKETING DEPARTMENT TECHNICAL DEPARTMENT ACCOUNTS DEPARTMENT
CHAIRMAN Mr. B.B. Singhal
18. 18 INTEGRATING VALUE Bhushan Steel's Cold Rolled Steel
activity produces and markets an extensive range of value added
Products such as CRCA (cold rolled closed annealed), Galume, Color
coated sheets, High tensile Steel straps, Hardened and tempered
Steel, drawn tubes etc. CRCA, produced at Sahibabad facility caters
to customers like Maruti and other OEMs. Its galvanizing plants are
located strategically close to the ports of Mumbai, helping it to
cater to the global demand at competitive prices. After having
grown to a size of approximately 1 MTPA in cold rolled and coated
products, the company has embarked on its Orissa project to
integrate backward into the production of HR Coil and billets, so
as to meet current and future internal requirements. Also, it plans
to develop various EDD (extra deep drawing) grades used in the
automobile's critical applications like outer body panels of cars
(these are currently imported). With a strong presence in Indian
Steel market, Bhushan Steel Limited offers effective Steel
solutions to the automotive, construction and household appliance
industries. A combination of technical expertise and sales service
fosters a close relationship between Bhushan Steel and its
customers. Clinching on its quest for excellence, the Group meets
the automotive and white goods industry expectations with new
products that are distinctive and ahead of the competition.
19. 19 TECHNOLOGY Bhushan Steel unwavering focus on acquiring
and leveraging the best available technology has engendered a
period of unprecedented growth and progress. The state of art
Khopali Plant has fully commenced and is playing pivotal role in
the tremendous growth of exports as well as in the production of a
much larger variety of value added Steel like coloured coated
sheet. High tensile Steel strapping, hardened & tampered
strips, spring Steel, precision tubes and the soon to be
manufactured for the first time in India Galume Value Added Steel.
The Sahibabad plant is operating at full capacity and giving a
substantial volume thrust to the organisation. The Khopoli plant
which operates with the very latest technology becomes fully
operational has the production capacity of 450000 MT per annum of
cold rolled Steel which includes 250000 MT of galvanised Steel.
Bhushan Steel is now Indias third largest secondary Steel producer
after SAIL and TISCO. BSSL had the distinction of being the only
producer of widest width of CR sheet. The biggest landmark on its
growth path is of course the Orissa plant. This integrated Steel
and power plant will put BSSL firmly in the path of progress
transforming BSSL into a completely self-reliant organisation.
BHUSHAN has set up the technology of manufacturing a very new
coated product called BHUSHAN GALUME being the brand name. This
alloy coating consists of 55% Aluminum and 43% Zinc and the balance
contains Silicon around 1.5% to affect excellent adhesion to the
Steel substrate. TECHNOLOGICAL BACKUP The coater technology is the
latest from GFG, USA and thermo Radiometric Germany and special
high jet cooling tower from UK. We have tie up with M/s Henkel
Chembond Surface Technologies Ltd for the supply of chromating
chemicals and acrylic coating and 0n line continuous monitoring for
the coating control and salt spray analysis in addition to our on
line monitoring by quality control dept.
20. 20 RESEARCH & DEVELOPMENT Company R&D activities
consists of carrying on normal qualities testing of its raw
materials , work in progress and finished goods . It does not
involve development of new products. We have full-fledged
laboratory with test equipments- Emission spectroscope for the
chemical analysis, computerized Universal testing machine with
stress-strain graph for tension tests, surface finish tester,
Hardness testers using both Vickers and Rockwell scales, LFQ
testing machine, Cupping tester, on line Radiometric and off line
chemical lab for coating mass, salt spray tester for corrosion
resistance, and Humidity chamber. The company has a latest state of
the art R&D Center and has many first to its credit including
development of panel grade material for Refrigerator, Visi Coolers
& chest Coolers of Coca- Cola & Pepsi, ultra-thin CR Steel
for Picture tube & battery application etc. For continuous
marketing of our product quality , we keep carrying out testing
from outside laborites. This has resulted in continuous upgrading
of the process parameters conforming to any international
standards. Further we have online backup SGS inspection for all
test parameters upto the point of dispatch. NEW PRODUCT DEVELOPMENT
Bhushan Steel is pioneer in the industry to develop new products
which can substitute the imported material to reduce cost of
purchase/sourcing for domestic industry. In this direction Bhushan
has developed new products, viz., Outer Skin Panels for cars, HLGP
Coated material for fuel tanks and High Tensile Strength Colled
Rolled and Galvanized Steel for Automobile Industry.
21. 21 OUTER SKIN PANELS FOR CARS Bhushan Steel has emerged as
leading supplier to all passenger cars, multi utility vehicles
manufacturers car skin panels which call for a combination for
mechanical properties shape and dent free surface of leading
automobiles are made from our product which result in lesser
inventories. The basic raw material i.e. HR Coils used to produce
skin panels imported from Japan, Korea, France & UK. HIGH
TENSILE STEEL FOR AUTOMOBILE INDUSTRY Reduction in automobile
weight and thereby improvised fuel economy and passenger safety
required Steel that could offer high degree of formability with
increased strength. Interstitial free high strength Steel offered
by Bhushan Steel combine these factors. Bhushan Steel offers
Interstitial free-high strength Steel with tensile strength as high
as 550MPa. The common grades used by Automobiles are SPRC 340, SPRC
390, SAPH 390, SAPH 410, and SAPH 450. Bhushan Steel is also in the
Bake Hardening Steel and TRIPP Steel.
22. 22 Manufacturing Process RAW MATERIAL Remove Surface
Impurities. To get desired Thickness H.R. COIL (HOTROLLED COIL)
PICKLING H.R. COIL PICKLED COLD ROLLING C.R. COIL COLD ROLLED
COIL
23. 23 Cycle-1 Cycle-2 Cycle -3 Soft Hard C.R. COIL COLD ROLLED
COIL Annealing (To get desiredphysical & chemical properties)
C.R.C.A. COIL (Cold Rolled Coil Annealed Cut to length Packaging
Dispatching Galvanizing (Zn , Al Alloy ) G.P. Coil (Galvanized
plane Coil) Galvanized Corrugated Sheet Packaging Dispatching
G.P.Sheet G.P.Coil Packaging Packaging Dispatching Dispatching Cut
to length C.R. SHEET ---F/H-------- Annealing (To get
desiredphysical & chemical properties) B.P. SHEET Packaging
Dispatching Cut to Length Cut to Length Corrugate
24. 24 OVERVIEW OF THE 5Ps OF MARKETING FOR BHUSHAN STEEL
LTD.
25. 25 A BRIEF ABOUT 5Ps OF BSL (3.1) PRODUCT:- Its Product can
be classified as below: PRODUCTS Long ProductsFlat Products Cable
Tapes Precision Tubes Black Pipes G P Coil G P Sheets Wire Rods Bar
MillsSteel Coil Corrugated Sheets Cold Rolled sheets Galvanized
Coil Narrow C R Coil Galume
26. 26 FLAT PRODUCTS:- 1. Cable Tapes:- These Tubes are widely
used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and
General Engineering Applications etc. Precision Tubes are made at
our Chandigarh and Kolkata plants. 2. GP Coils:- These Tubes are
widely used for Power and Industrial boilers, Transformers, Super
heaters, Automobiles and Bicycles, Railway Electrification,
Furniture and General Engineering etc. 3. Steel Coils :-
27. 27 These Tubes are widely used for Power and Industrial
boilers, Transformers, Super heaters, Automobiles and Bicycles,
Railway Electrification, Furniture and General Engineering
Applications etc. 4. GP Coil Sheets :- Applications: Galvanised
Coils and Sheets are used to make Boxes, Containers, Ducting,
Cooler Body, etc. GP Coils are manufactured at our Kolkata Plant.
5. Corrugated Sheets:- Corrugated sheets are extensively used for
Industrial sheds, housing, temporary structures etc. Corrugated
Galvanized Sheets are manufactured at Our Kolkata plant.
28. 28 6. Cold Rolled Sheets :- Cold Rolled Sheets are used in
the manufacture of Automobiles, White Goods, Electrical Panels,
Furniture, Transformers, Oil barrels and drums and general
engineering products. CR Sheets are produced at our Chandigarh,
Kolkata and Orissa plants 7. Narrow CR Coils:- Narrow Cold Rolled
Coils are used in the manufacture of Automobiles, Precision Tubes,
Cable Tapes, White Goods, Electrical Panels, Furniture,
Transformers, Oil barrels and drums and general engineering
products. Narrow CR Coils are produced at our Chandigarh, Kolkata
and Orissa Plants. 8. Galvanized Pipes:-
29. 29 Galvanized Pipes find its uses in a number of
applications including domestic, agriculture and Industrial.
Galvanized Pipes are available in the sizes ranging from 10mm NB to
100 mm NB, Strip thickness 1.80 mm 5.40 mm We manufacture GI Pipes
at our Derabassi (Punjab) Plant. 9. Black Pipes:- Black pipe is
used for transportation of air, gas, fabrication of structure,
automobiles, cycles and general furniture industries. Varnished
pipes are used for general engineering industries. Black pipe is
manufactured at our Chandigarh, Derabassi and Kolkata plants. 9.
Precision Tubes :- These Tubes are widely used for Power and
Industrial boilers, Transformers, Super heaters, Automobiles and
Bicycles, Railway Electrification, Furniture and General
Engineering Applications etc. Precision Tubes are made at our
Chandigarh and Kolkata plants.
30. 30 11. GALUME:- BHUSHAN has set up the technology of
manufacturing a very new coated product called BHUSHAN GALUME being
the brand name. This alloy coating consists of 55% Aluminum and 43%
Zinc and the balance contains Silicon around 1.5% to affect
excellent adhesion to the Steel substrate. Galume Production
Technology: This coating is given on the cold rolled substrate
processed from selective Hot rolled coils with selective chemistry
for getting the desired mechanical properties specified by the
customers. The Galume product is made by the continuous hot dip
process. The cold rolled coils are welded end to end and passes
through 3 stage degreasing section for achieving excellent cold
rolled strip surface. The coating system is 2 pot system-
premelting pot and the main coating pot. The bath chemistry is
continuously controlled and monitored at the pre melting pot which
continuously feeds the main coating pot through the refractory
tunnel. Galume market We have produced about 50000 MT as on date
from the commissioning of our Galume production. Our line is fully
booked and hopes to produce continuously about 15000 MT per month.
In India, we are supplying Galume and Pre-painted Galume to reputed
companies. To mention few of them, we supply to Kirby, Trigger
Steels, Lloyds Insulation, Multicolor, GSP Power, ERA Metal, Unimet
Profiles, Isolloyds Engineering, Color Roofing, Havels India Ltd,
MG Industries, Ganga roofers, Century wells and others . Our 80 %
of production is exported to various counties all over the world,
USA, European Countries and Spain, South Africa, Italy and South
East Asian countries. There are no Indian
31. 31 standards for this product. We have established our
product in international market against ASTM / EURO and AS
standards. It is imperative to mention to you that now our product
or brand is preferred over Arcelor and Blues cope. Some of our
Global direct customers are Defer co-USA, NOVO Steel USA, Toyota
Tshuho, America Nialco SA Belgium, Savogni Italy, Gibbs Steel,
South Africa, Arcelor Barba DOS, Global Roofing-Durban and others.
GALUME Properties: Due to bright surface & fine spangles,
excellent heat reflectivity up to 315 c, & due to high Aluminum
content, Galume has heat (oxidizing) resistance up to > 320 c
without discoloration and without impairment of its alloy coating.
PRE-PAINTED GALUME SHEETS Coil coating is the most advanced
techniques used in the continuous application of an organic coating
on to a flat metal substrate in the coil form Bhushan Steel is the
only company in India which is producing colored sheet first time
in India. Coil Coating Process: * CLEANING OF SHEET * CHEMICAL
COATING * DRYING * PRIMER APPLICATION (ON BOTH TOP & BOTTOM) *
CURING OF PRIMER * TOP COAT & BACK COAT APPLICATION * CURING OF
TOP & BACKING COAT
32. 32 LONG PRODUCTS:- 1. Wire Rod and Bar Mill:- With the
introduction of most technologically advanced special and alloy
steel long product rolling complex for manufacture of value added
bars and coils, a new dimension has been added in BPSL's long
history in the steel business. The Long Product Rolling Complex
consists of a most modern 0.5 million tpa multiproduct Wire Rod and
Bar Mill (18 pass Horizontal & Vertical Continuous Mill)
supplied by Danieli Morgardshammar, Italy and KOCKS, Germany (4
pass mill). The state of the art Wire Rod & Bar Mill, one of
the most modern plants of this type in the world, will produce:
Straight Bars Bar in Coil form Wire rods
33. 33 (3.2) PRICE:- Price is one of the most crucial elements
behind a successful product. It is more pragmatic & fact
oriented in industrial marketing as compared to pricing for
consumer product. Factorinfluencing pricing strategyof Bhushan
SteelLtd are:- 1. Production cost:- It includes the cost of the raw
materials, cost of transportation, cost of all other things which
are involved in the production of the various products. Production
cost highly influences the pricing policy of various goods at
Bhushan Steel. Bhushan Steel aims at reducing its production cost
by having its own power plant and its own raw material which helps
as a major factor in reducing the overall production cost and
supplies goods at the best price in market. The production units of
BSL are situated at very good locations and near to the consumer
centers of North and South so its distribution cost is thereby
reduced. 2. Market demand:- The demand of the various products in
the market also plays a key role in developing the pricing policy
of bhushan steel as if market demand is huge then there will be
bulk production of goods which will reduce the overall cost and if
the market demand is less and then production cost per unit
increases. 3. Competition:- Bhushan Steel also keep in mind the
competitors price of the products while formulating its pricing
policy. Bhushan steel provides goods at reasonable rates than its
competitors
34. 34 as it has its own material and electricity which plays a
vital role of steel production process. 4. Government regulations:-
Price also fluctuates by various government rules and regulations.
Government policies keep changing from time to time which affects
the pricing strategy and principles of Bhushan Steel. (3.3) PLACE:-
Place represents the location where a product can be purchased. But
in industrial marketing place is often referred to as the
distribution channel. Channels of Distribution:- Direct Marketing
Channel (or Zero Level):- This type of channel has no
intermediaries. In this distribution system, the goods go from the
producer directly to the consumer, e.g., Eureka Forbes Indirect
Marketing Channel:- 1. One-level Channel: In this type of channel
there is only one intermediary between producer & consumer. 0
Level Producer Consumer 1 Level Producer ConsumerRetailer
35. 35 Distribution Channel at BSL OEM (0 Level) DOMESTIC
TRADING (1 Level) EXPORT (0 Level) Delivering of Schedule Order
Payment in form of L.P. Totally based on projections. No Payments
No Order Payment as per agreement Order in form of schedule
36. 36 MARKETING NETWORK
37. 37 MAJOR CUSTOMER AND CLIENTELE
38. 38 (3.4) PROMOTION The promotional activities at Bhushan
Steel Ltd. are done basically through advertisements, personal
selling and Direct Marketing. BSL give advertisements in the power
and steel magazine of India and also in some of the newspapers.The
public relation of BSL is also high as it has build trust and
goodwill over the years among their customers which leads to good
word of mouth and which also helps in promoting their products. At
BSL Direct marketing is involved in which the customers contact BSL
directly and place orders of the products .This direct marketing
takes place through the image and goodwill of BSL. (3.5) PACKAGING
HIGH TENSILE STEEL STRAPPING -FOR PACKAGING The Cold Rolled High
Tensile Steel strapping is specially heat treated to provide high
strength and toughness for packaging application. On this high
speed and high precision online heat treatment line, the special
strap paints are applied for strapping and cured by wave curing
system using quartz lamps. For tension transmission high gloss wax
is applied and cured by infrared wave curing system. The allied
products such as whole variety of metal seals and strapping tools
are also available to our customers, confirming to the
International Standards ASTM D-3953 All variety of seals like,
Snap-on seals, Push type seals, Nestack seals are available for
various applications
39. 39 APPLICATIONS Flat springs for automobile clutches,
Woodworking saws, Masonry & Argo. Tools, Gang saws blades, for
marble cutting, Doctor Blades, for paper industries, leather
splitting knives, Drop pins for textile industries etc. BENEFITS TO
CUSTOMERS 1. EXCELLENT SURFCE FINISH Auto shape control on both
side of the mill. Mill clean system with a synthetic coolant to
avoid any coolant mark on the strip. Electrolytic cleaning line to
remove IRON FINES form strip, which helps in improving the life of
salt-spray test after painting and avoids carbon soot completely.
It also increases the tools life in Press shop. Latest and
sophisticated EDT machine from Waldrich Siegen, Germany, to provide
controlled texture for better paint adhesion and to achieve surface
roughness in close tolerances. On-line Tension-Leveling equipment
for better flatness and controlled elongation. Computerized
Inventory Control Management and independent skin-pass mill to
avoid any unwanted storage in between annealing and skin-pass
process. KATHABAR STORAGE SYSTEM is commissioned to avoid oxidation
through dehumidifier to prevent rusting during storage.
Electro-static rust preventive oil spray for controlled oil coating
on CRCA surface. Oil coating can be maintained in between
0.50gms/m2 to 4.0gms/m. 2. EXCELLENT MECHANICAL PROPERTIES
Practically, no variation in mechanical properties due to HICON
100% Hydrogen annealing furnace from EBNER, Austria.
40. 40 The raw material selection is done by dedicated software
for different applications. 3. CLOSE TOLERANCE TO THICKNESS, WIDTH
& LENGTH X-RAY thickness gauge to measure thickness in fraction
of a micron from DMC, U.S.A. X-RAY thickness scanner across control
from DMC, U.S.A Shim less tooling on slitting lines with
computerized setting correct width in close tolerance, form
Germany. Precision Cut-to-length lines to ensure length tolerances
better then +/-0.75mm. Automatic Electromagnetic Stacker on
shearing lines to produce scratch free,. OTHER ADVANTAGES Better
width combination facility to customers. Higher yield in standard
width material, i.e., up to 92.45%. Thickness, length & width
tolerances as per customer requirements. The equipment is capable
enough to maintain all these tolerances in the lower side of
International Standards like JIS, BIS, ASTM and EN. The largest
service center in the country available with Bhushan Steel enables
it to accept the orders in different sizes and service the same in
the shortest possible time. Well located on the map of the country
for smooth supply of finished Goods.
41. 41 RESEARCH METHODOLOGY
42. 42 RESEARCH OBJECTIVES To understand the Marketing mix of
Bhushan Steel Ltd. Sales analysis of the flat Steel products of
Bhushan Steel Ltd. To do competitor analysis in comparison to the
brand preferred in the market in terms of product range, pricing,
availability, supply, quality and after sales services. To know
about Dealers Perception for flat steel products. Why are we doing
competitors analysis? Competitor analysis is an essential component
of corporate strategy, we are doing competitor analysis to know the
market share of Bhushan Steel Ltd among the major producer of flat
Steel products in the Indian Steel industry. This competitor
analysis will show the major areas of strength and weakness of the
Bhushan Steels Ltd and other major producers. This will reveal the
major opportunities in the industry that can help in the
improvement of the Bhushan Steels Ltd. Competitor analysis will
also show that which companys flat Steel product is mostly
preferred by the customer.
43. 43 RESEARCH METHODOLOGY Methodology is the specifications
of the method for acquiring the information needed to structure the
study. 1. Problem Formulation: - This refers to transformation of
the management problems into a research problem. 2. ResearchMethod:
- It involves choosing Experimental or Non Experimental Research.
This research was non experimental. 3. ResearchDesign: - It is the
plan structure and strategy of investigation convinced so as to
obtain answer research question. It is purely and simply the
framework or plan for study that guides the collection of analysis
of data. It is a blue print that is followed on completing the
study. Designing of a research plan calls for decision on the Data
sources, Research approaches, Research instruments, sampling plan.
For this Research the Descriptive Research method was used. This is
because it is marked by the prior formulation of specific research
questions. It has a preplanned and structure design. For
Descriptive Research study proposed data analysis and project
output are critical aspects. SAMPLE DESIGN Sampling Method:- The
Basic idea of sampling is that by selecting some of the element in
a population in order to get first hand information of study. There
are 2 types of sampling, probability sampling & non-probability
sampling and in this research, Researcher has taken probability
sampling.
44. 44 Simple Random Probability Sampling Method- Probability
sampling is the most commonly associated with survey based research
where you need to make inferences from your sample about a
population to answer your research question or to meet your
objectives. The process of probability sampling can be divided into
4 stages :- 1. Identifying a suitable frame based on your research
questions or objectives. 2. Decide on a suitable sample size. 3.
Select the most appropriate sampling technique and select the
sample. 4. Check that the sample is representative of the
population. The objective of probability sampling depends on the
research questions & on the objectives Sampling Location:- Our
Target population was the steel distributors and the companies
where steel is used as a raw material We collected the information
from the dealers located mainly in the Delhi/NCR region namely
Ghaziabad, Faridabad and Naraina. Sampling Size :- The data for the
sampling was collected from 100 people- 60 Customers & 40
Dealers Sampling Unit :- Dealers and customers which use and sell
flat steel products.
45. 45 METHODS OF COLLECTION OF DATA Data collection is a key
activity of Research. Data collection method is the backbone of
research design. Collection of Primary Data :- Data was collected
from the dealers and customers. Data was collected through
questionnaires, Observations and Interviews. Questionnaire was made
according to our requirements i.e. type of data required in our
research. Analysis and Interpretation of Data Data which has been
obtained are seldom useful to anyone, if it is not analyzed and
interpreted in order, the breaking down of constituent parts are
the manipulating of the data and to obtain answer to the research
questions. Interpretations involves taking the result of analysis,
making inferences relevant to the research relationship studied and
drawing conclusions about these relationships. Technique used for
analysis & Interpretation of data :- Pie - Charts Percentage
analysis Research Report The culmination of the research process is
research report. Methodology, report and recommendation for course
of action are presented. The 2 critical attributes of reports are
completeness and conciseness.
46. 46 DATA ANALYSIS AND FINDINGS
47. 47 DATA ANALYSIS 1. Interested in which Flat Steel
products? a). CR COILS b). CR SHEETS c).GP & GC d). OTHERS
PRODUCTS INTERESTED IN (Fig. no. 1) Interpretation It is found that
68% of people are interested in GP & GC products .These
products are the most preferred and highly demanded products in the
market. Then comes 22% of people are interested in CR SHEETS , 8%
in CR COILS and 2% Others. 68% 22% 8% 2% PRODUCTS GP AND GC CR
SHEETS CR COILS OTHERS
48. 48 2. Which aspect of product do you give most priority?
a). PRICE b).PRODUCT RANGE c). QUALITY d).SUPPLY ON WHAT BASIS
BRAND IS SELECTED (Fig. no. 2) Interpretation It is found that 29%
of people select the brand on the basis of Price, 26% on basis of
supply, 24% on basis of Quality and 21% on basis of Product range.
Most of the people select the brand on basis of the price. 29% 26%
21% 24% BASIS OF SELECTION OF BRAND PRICE SUPPLY QUALITY PRODUCT
RANGE
49. 49 3. Which companys flat Steel products you sell maximum
annually? a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL SALE
PERCENTAGE OF MAJOR PRODUCERS (Fig. no. 3) Interpretation It is
found that dealers sell maximum Flat steel products of SAIL i.e.
38% which is the highest sales share. Then comes Bhushan Steel with
29% sales share, then TATA Steel with 20% sales share and last
Jindal steel with 13% sales share. 20% 29% 13% 38% SALES SAIL
JINDAL STEEL TATA STEEL BHUSHAN STEEL
50. 50 4. Rank 1-4 the following brands in terms of product
range (1 max variety and 4 min variety) a). TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS OF PRODUCT RANGE
(Fig. no. 4) Interpretation It is found 48% of people prefer
Bhushan Steel in terms of product range. It has the largest product
range available in the market. Then comes TATA Steel on 2nd rank
with 22% , then SAIL on 3rd rank with 18% and the 4th rank is of
Jindal steel with only 12% of product range available in market.
22% 2nd Rank 48% 1st Rank 12% 4th Rank 18% 3rd Rank PRODUCT RANGE
BHUSHAN STEEL JINDAL STEEL SAIL TATA STEEL
51. 51 5. Selectthe brands in terms of best price offered.
a).TATA b).BHUSHAN STEEL c). JINDAL STEEL d).SAIL BRAND PREFERRED
IN TERMS OF BEST PRICE OFFERED (Fig. no. 5) Interpretation It is
found that SAIL offers the best price to its customers and the
brand preferred in terms of price is 39% which signifies that it is
the most preferred brand in terms of price, then comes 29% for TATA
steel, then 20% for Bhushan steel and lastly 12% for JINDAL steel.
29% 20% 12% 39% BEST PRICE JINDAL STEEL BHUSHAN STEEL TATA STEEL
SAIL
52. 52 6. Select the brands in terms of better Supply. a).TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS
OF SUPPLY (Fig. no. 6) Interpretation It is found that Bhushan
Steel is the most preferred brand in terms of better supply with
percentage share of 47%, then comes SAIL with 34% share, then TATA
steel with 11%, then JINDAL steel with 8%. 11% 47% 8% 34% SUPPLY
BHUSHAN STEEL SAIL TATA STEEL JINDAL STEEL
53. 53 7. Select the brands in terms of quality of flat Steel
products. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND
PREFERRED IN TERMS OF QUALITY (Fig. no. 7) Interpretation It is
found that Bhushan Steel and TATA steel are the most preferred
brand in terms of Quality of Product with 30% of market share on
basis of quality, then comes SAIL with 26%, then JINDAL steel with
14%. 30% 30% 14% 26% QUALITY JINDAL STEEL SAIL TATA STEEL BHUSHAN
STEEL
54. 54 8. Rank 1-4 in terms of the after sale services and
complaint handling. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL
d).SAIL BRAND PREFERRED IN TERMS OF AFTER SALE SERVICES (Fig. no.
8) Interpretation It is found that SAIL is the most preferred brand
in terms of after sales service followed by Bhushan steel, followed
by TATA steel and JINDAL steel at the last rank in terms of after
sales service. 21% 3rd Rank 30% 2nd Rank17% 4th Rank 32% 1st Rank
AFTER SALE SERVICE SAIL BHUSHAN STEEL TATA STEEL JINDAL STEEL
55. 55 9. Select the brands in terms of overall satisfaction
level. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND
PREFERRED IN TERMS OF OVERALL SATISFACTION (Fig. no. 9)
Interpretation It is found that Bhushan steel is the most preferred
brand in terms of overall satisfaction to its consumers with 51%,
then comes SAIL with 29%, then TATA Steel with 12%, then JINDAL
steel with 8%. 12% 51%8% 29% OVERALL SATISFACTION JINDAL STEEL
BHUSHAN STEEL SAIL TATA STEEL
56. 56 10. Rank 1-4 the following brand in terms of the product
availability. (1 most preferred and 4 least preferred) a). TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL BRAND PREFERRED IN TERMS
OF PRODUCT AVAILABLITY Interpretation It is found that Bhushan
steel is the most preferred brand in terms of Product availability
to its consumers with 36%, then comes SAIL with 30%, then TATA
Steel with 21%, then JINDAL steel with 17%. 21% 3rd Rank 36% 1st
Rank 17% 4th Rank 30% 2nd Rank PRODUCT AVAILABILITY JINDAL STEEL
BHUSHAN STEEL SAIL TATA STEEL
57. 57 11. Select the brands with whom you are dealing the
most. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL
Interpretation It was found that Bhushan steel was the most
preferred brand for the dealers whom they was dealing with due to
its wide range of products at cheaper rates, then comes SAIL, then
TATA steel followed by JINDAL steel. 20% 35% 15% 30% JINDAL STEEL
BHUSHAN STEEL SAIL TATA STEEL
58. 58 SALES AND PRODUCTION ANALYSIS PRODUCTION STATSOF FLAT
STEELPRODUCTS IN 000 TONNES IN INDIA *ESTIMATED FIGURE (Table no.1)
YRS COMPANY 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
2012-2013 TATA STEEL 3193 3231 3192 3586 3671 3798* SAIL LTD 9849
10288 9846 9736 9931 10403* JINDAL STEEL 2246 2361 2178 2321 2540
2610* BHUSHAN STEEL 2416 2498 2331 2357 2554 2663* OTHERS 7193 7765
7278 10504 10253 9154*
60. 60 PRODUCTION AND SALES CHART OF THE YEAR 2007-2008 (Fig.
no. 1) PRODUCTION AND SALES CHART OF THE YEAR 2008-2009 (Fig. no.
2) 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL
STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT 0 2000 4000 6000
8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL
OTHERS PRODUCTION SALES EXPORT
61. 61 PRODUCTION AND SALES CHART OF THE YEAR 2009-2010 (Fig.
no. 3) PRODUCTION AND SALES CHART OF THE YEAR 2009-2010 (Fig. no.
4) 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL
STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT 0 2000 4000 6000
8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL
OTHERS PRODUCTION SALES EXPORT
62. 62 PRODUCTION AND SALES CHART OF THE YEAR 2011-2012 (Fig.
no. 5) PRODUCTION AND SALES CHART OF THE YEAR 2012-2013 (Fig. no.
6) 0 2000 4000 6000 8000 10000 12000 TATA STEEL SAIL LTD JINDAL
STEEL BHUSHAN STEEL OTHERS PRODUCTION SALES EXPORT 0 2000 4000 6000
8000 10000 12000 TATA STEEL SAIL LTD JINDAL STEEL BHUSHAN STEEL
OTHERS PRODUCTION* SALES* EXPORT
63. 63 FINDINGS BSL is the most efficient Flat steel producer
from 2010-2013. In 2008-2009, Steel industry faced a downfall in
their production and sales due to the great recession of 2011-2013.
Bhushan Steel performed well in domestic sales during recession.
Industry has minimized the gap between production and sales and
thus reducing the wastage and inventory level thus improving the
efficiency of the Steel industry. It was found that BSL makes a
large variety of products with better technology and advancements
strategies. BSL plants are situated near to the consuming centers
which help in BSL in easy and fast delivery of products. The
tie-ups that BSL has with the foreign companies for research and
development is very beneficial for the BSL. BSL is also improving
its image in terms of quality, supply, and price and after sales
service. BSL wide range of products is a major advantage which
helps them to be a market leader. GP & GC are the products
which are most demanded in the market. SAIL is the largest producer
of steel from 2008-2013.
64. 64 SUGGESTIONS The recommendations which are to be
suggested is as follows:- Overseas expansion of their business
Focus on New Research and Development Increase the Sales network
and sales promotional activities in India and outside India.
Improve its transportation facilities and after sales service BSL
should focus on generating more power Retail outlets in India and
abroad BSL should improve its quality and pricing strategy to be a
sole leader in market Offer replacement of defected products
instead of settlement. Increase s production of GP and GC Company
should focus on making new dealers. And giving them more advantage
Time-to-Time survey to be conducted
65. 65 Limitations Every study has its own limitations in terms
of methodology and the resources available for its conduct. This
study has no expectations to it and has been carried under
following limitations:- There arose difficulty in collecting data
as people were not there at their respective places, so we had to
meet them even twice or thrice the same place. There were some
companies who denied filling the questionnaires A number of dealers
were biased towards a particular brand which was giving them better
returns. Respondents lack of time to give information and their
casual attitude was a big hindrance in the study. As 100% accurate
data is not possible, and we have to rely on the information
received through questionnaire, than 0.2-0.4% of error was
allowed.
66. 66 SWOT ANALYSIS WITH REGARDS TO BHUSHAN STEEL LTD.
STRENGHTS Adopting latest world class technologies. Technical
tie-up with Sumitomo Metals, Japan. Location Advantage.
Availability of its own iron ore and coal. Abundance of quality
manpower at low cost. WEAKNESSES BSL lacks aggressive sales
promotion activities. Lack of export market activities.
Unscientific mining. Low productivity. Inadequate infrastructure.
Low R&D investments. Power shortage is there at BSL.
OPPORTUNITIES Since BSL is a major consumer of electricity which is
almost 30 % of total product costing, it should have power plants
which can produce a large amount of electricity for its own
consumptions. Export Market Penetration Consolidation
67. 67 THREATS Government policies, this results in up and down
in Steel prices. Technological change. Price sensitivity &
Demand volatility. Slow Industry Growth.
68. 68 BIBLIOGRAPHY BOOK REFERENCE 1. Aaker,D.A. Marketing
Research Johnwiley Publications, 7th Edition. 2. Philip Kotler
Marketing Management Pearson Publications, 12th Edition. 3. Bery
G.C Marketing Research Tata Macgraw hill Publications 3rd Edition
WEB SITES 1. http://en.wikipedia.org/wiki/Bhushan_Steel 2.
http://www.bhushan-group.org/ 3. http://www.bpsl.net/ 4.
http://economictimes.indiatimes.com/bhushan-steel-ltd/stocks/companyid-
10434.cms
69. 69 ANNEXTURE QUESTIONNAIRES Dear respondent, I am a student
and conducting a survey for consumers preference and competitors
analysis for Steel products of major Steel producing companies in
Delhi and NCR regions. We request you to answer the following
questions. The information provided will be used for academic
purpose only . Thank you 1. Interested in which Flat Steel
products? a). CR COILS b).CR SHEETS c).GP & GC d). OTHERS 2.
Which aspect of product do you give most priority? a). PRICE
b).PRODUCT RANGE c).QUALITY d).SUPPLY 3. Which companys flat Steel
products you sell maximum annually? a).TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL 4. Rank 1-4 the following brands in terms
of product range (1 max variety and 4 min variety) a). TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 5. Select the brands in
terms of best price offered. a).TATA b).BHUSHAN STEEL c). JINDAL
STEEL d).SAIL DATE - .. NAME - .. ADDRESS - ..
70. 70 6. Select the brands in terms of better Supply. a).TATA
b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 7. Select the brands in
terms of quality of flat Steel products. a).TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL 8. Rank 1-4 in terms of the after sale
services and complaint handling. a).TATA b).BHUSHAN STEEL c).JINDAL
STEEL d).SAIL 9. Select the brands in terms of overall satisfaction
level. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL d).SAIL 10. Rank
1-4 the following brand in terms of the product availability. (a
most preferred and 4 least preferred) a). TATA b).BHUSHAN STEEL
c).JINDAL STEEL d).SAIL 11. Select the brands with whom you are
dealing the most. a).TATA b).BHUSHAN STEEL c).JINDAL STEEL
d).SAIL