a project report on creating brand awareness through advertisements

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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. Table of Contents Executive Summary An Overview of the Steel Industry o Global Scenario o Indian Scenario Imports and Exports Duties and Levies Indian Steel Rolling Scenario Rukminirama Steel Rollings Pvt. Ltd. o SWOT Analysis o Manufacturing Process o Product Range o Marketing Department Events Planned for Brand Awareness (Introduction to the Study) o Correspondence with various advertising agencies o Research & Findings of survey on Traders o Recommendations Babasabpatilfreepptmba.com Page 1

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Page 1: A Project Report on  Creating brand awareness through Advertisements

“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.

Table of Contents

Executive Summary

An Overview of the Steel Industry

o Global Scenario

o Indian Scenario

Imports and Exports

Duties and Levies

Indian Steel Rolling Scenario

Rukminirama Steel Rollings Pvt. Ltd.

o SWOT Analysis

o Manufacturing Process

o Product Range

o Marketing Department

Events Planned for Brand Awareness (Introduction to the Study)

o Correspondence with various advertising agencies

o Research & Findings of survey on Traders

o Recommendations

Annexure

o Questionnaire

o Abbreviations

o Bibliography

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Page 2: A Project Report on  Creating brand awareness through Advertisements

“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.

Executive summary

RSRPL was incorporated in the year 1997 and Belongs to the Karthik Group of

companies, promoted by Shri B. Gopala M.E. (Metallurgy) from Indian Institute of

Science, Bangalore. The company has its registered office & rolling mill at Counclim

Goa.

The Karthik Group has a turnover of more than Rs, 250 Cr and has its presence

felt in Ferro-Alloys, Karthik Inductions and other steel related projects. Rukminirama

Steel Rollings Pvt. Ltd. RSRPL rolls these ingots into quality steel bars (CTD, TMT,

Rounds & Squares) across range of diameters from 8mm to 32mm.

Each succeeding year has witnessed an increasing demand for the company’s

product, thereby testifying its quality and stability in the market. Products have been

successfully marketed in Southern Maharastra, Districts of Belgaum, Hubli-Dharwad,

Coastal Karnataka, Old Mysore area, Bellary District and coastal Kerala. The Company

has made rapid strides in technological up gradation within a short span of time. RSRPL

is currently engaged in the manufacture of new generation steel bars called TMT

(Thermo Mechanically Treated) bars.

RSRPL is an ISO 9000 company, it is been granted by the certification company

JAS-ANZ. All employees continuously strive and are committed not only in getting the

certification but also in maintaining it.

Here at RSRPL our first job was to beat the upcoming, huge capacity competition

from Kundil Group and Goa Ispat, a conglomerate that has introduced in the market a

brand named Kamdhenu Saria. There will be huge competition as these two have come

up together with large capacities. We have a much better quality and better relationships

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Page 3: A Project Report on  Creating brand awareness through Advertisements

“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.

with our traders with which we will face the competition. Our foremost job would be

towards creating Brand Awareness under the name RR TURBO TMT BARS through

advertisements. Some of the major activities that we planned in order to manage in

creating brand awareness are as follows: -

Our quest in creating brand awareness began with the collection of various

advertising agencies address that are into hoardings, wall paintings, media, newspapers,

art-work (designing and developing) etc.

A survey was conducted using a structured questionnaire on traders that would

elicit the benefits they received from other manufactures and suppliers who are our

present customers. Also included was to know the influence of advertisement in creating

brand awareness. The details of the survey are given later. Later I contacted all the

agencies and briefed them about the company’s details and our requirements. The first

thing that was to be done was to get a art-work designed that would be used for hoardings

for advertisements. Regarding this quotations were got from various agencies among

which Upasana Advantage from Bangalore was selected. Three samples copies were

conceptualized and given among which one was selected. This is being painted on a

hoarding, which will be finalized when it’s ready. Its overall appearance to appeal to the

customers will grant it its prize.

Second step was to call agencies that were dealing in hoardings and pole ads.

Again corresponding with them and detailing about the company and product was done.

Quotations were received. A hoarding near Verna Industrial Estate was selected to get the

painting done on trail basis. It was booked for advance of 26400/-, painting is underway

and will be finalized once it is approved. Next was to call up agencies that were into ad

films. Quotations are being coming and yet a final selection of agency has to be made.

Another work undertaken was preparations of glow signboards and M S boards on

which our company name and product will be highlighted. These will be distributed

among the traders to be lit in their shops. M S boards will be nailed on the vehicles,

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Page 4: A Project Report on  Creating brand awareness through Advertisements

“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.

which will constitute our transit advertisements. Negotiations are going with Kadamba

that is Goa State Transport and KSRTC that is Karnataka State Road Transport

Corporation for transit advertisement. Soon it will be accomplished.

Basic thing was to get scribbling pads and order pads designed and printed,

around 500 in numbers. They were got done from Agadi Prints, Gadag. Which will be

distributed to all the traders in Goa, Karnataka, and southern Maharastra. T-shirts and

Caps, 1000 in numbers were ordered from Tirchur, which will carry company name,

product name were got printed. These will be given to all employees of RSRPL and to all

the labourers. Discussion to make T-shirt compulsory for one day is going on. These T-

shirts will be given to all the traders and the loaders of trucks at traders point. Designing

of new brochures is underway and it will be approved soon once it is completed.

A power point presentation is made detailing about the company and its product.

It will highlight and explain them the benefits of using RR TURBO TMT bars and the

savings in cost and material that one can benefit from using it. This work is yet to be

green signaled by our M.D. This power point presentation will be made to

Engineers

Developers

Members of COC

Major traders in the city

Contractors

Government official (Developmental Department)AN OVERVIEW OF STEEL SECTOR

Global Scenario:

In 2003 World Crude Steel output at 945 million metric tons was 6.7% more than

the previous year. (Source: IISI)

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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.

China remained the world’s largest Crude Steel producer in 2004 also (220.12

million metric tons) followed by Japan (110.51 million metric tons) and USA

(91.36 million metric tons). India occupied the 8th position (31.78 million metric

tons). (Source: IISI)

USA remained the largest importer of semi-finished and finished steel products in

2002 followed by China and Germany. (Source: IISI)

Japan remained the largest exporter of semi-finished and finished steel products in

2002 followed by Russia and Ukraine. (Source: IISI)

Other significant recent developments in the global steel scenario have been:

o Under the auspices of the OECD the negotiations among the major steel

producing countries for a Steel Subsidy Agreement (SSA) continued. A

number of meetings of the Disciplines Study Group – a technical group

constituted to examine issues relating to steel capacities and marketing

distorting measures, were held in 2003 with the objective to agree on a

complete negotiating text for the SSA by the middle of 2004

o The global economy witnessed a gradual recovery from late 2003

onwards. While, the economies of USA, Japan and Europe continue on

course towards economic recovery, the growth in China has become one

of the major factors currently driving the world economy. With a projected

GDP growth of more than double of the other world economies, China has

by far become the fastest growing global economy.

o As a result of these economic developments IISI has projected an increase

by 6.2% or 53 million metric tonnes in 2004 in the global consumption of

finished steel products. IISI has split the growth into two separate areas,

China and the Rest of the World (ROW). Steel consumption in China has

been estimated to increase by 13.1% or 31 mmt in 2004.

Role of China in escalating demand of steel is paramount. China has focused all

its energies in its developmental work of its infrastructure. It’s pouring its energies to all

manufacturing sector and setting up huge bases of industries in manufacturing and

infrastructural facilities. China’s estimated demand of raw iron ore is nearly 1’00’000

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billion tonnes. It has the highest capacity of converting raw iron ore into finished steel of

more than 25000mtpa. Even then it is importing steel to meet its demand. Through India

it is importing iron ore from districts of Orissa and Karnataka. The 3 gorgeous dams that

are being raised in China will be coined as 8th wonders of the world. China is demanding

high quality steel which, local manufacturers fail to meet its requirements and many

agreements have been a failure. So the prime concern should be on quality to cater and

fructify from this mounting demand. This hyped demand for steel has placed Laxmi

Mittal in 3rd position among the richest persons in the world.

Market Scenario in INDIA:

After liberalization, there have been no shortages of iron and steel materials in the

country.

Apparent consumption of finished carbon steel increased from 14.84 Million

Tonnes in 1991-92 to 33.370 million tonnes in 2004-05.

Steel industry that was facing a recession for some time has staged a turnaround

since the beginning of 2002.

Efforts are being made to boost demand.

China has been an important export destination for Indian steel.

The steel industry is buoyant due to strong growth in demand particularly by the

demand for steel in China.

Demand - Availability Projection

Demand – Availability of iron and steel in the country is projected by Ministry of

Steel annually.

Gaps in Availability are met mostly through imports.

Interface with consumers by way of Steel Consumer Council exists, which is

conducted on regular basis.

Interface helps in redressing availability problems, complaints related to quality.

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Pricing & Distribution

Price regulation of iron & steel was abolished on 16.1.1992.

Distribution controls on iron & steel removed except 5 priority sectors, viz.

Defence, Railways, Small Scale Industries Corporations, Exporters of

Engineering Goods and North Eastern Region.

Allocation to priority sectors is made by Ministry of Steel.

Government has no control over prices of iron & steel.

Open market prices are generally on rise.

Price increases of late have taken place mostly in long products than flat products.

Production in India: Steel industry was delicensed and decontrolled in 1991 & 1992 respectively.

India is the 8th largest crude steel producer of steel in the world.

In 2004-05, production of finished carbon steel was 38.385 Million Tonnes.

Pig Iron production in 2004-05 was 3.171 Million Tonnes.

The share of Main Producers (i.e. SAIL, RINL, TISCO) and secondary producers

in the total production of finished (Carbon) steel was 40% and 60% respectively

during the year 2004-05.

Finished Carbon Steel Production:

The total production of finished carbon steel in the country has been 30.11 million

tonnes in 2001-02 as compared to 14.33 million tonnes in 1991-92, indicating an increase

of 110.12%. The high share of the secondary sector in finished steel production is largely

due to substantial supplies of semis, which forms the basic feed material for the main

producers for conversion to needed shapes by rolling.

PRODUCTION OF FINISHED CARBON STEEL  (In million tonnes)

Year MainProducers

SecondaryProducers

GrandTotal

% of share ofSecondary Producers

1991-92 7.96 6.37 14.33 14.5%

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1992-93 8.41 6.79 15.20 44.7%

1993-94 8.77 6.43 15.20 42.3%

1994-95 9.57 8.25 17.82 46.3%

1995-96 10.59 10.81 21.40 50.6%

1996-97 10.54 12.18 22.72 53.6%

1997-98 10.44 12.93 23.37 55.32%

1998-99 9.86 13.24 23.82 57.32%

1999-2000 11.20 15.51 26.71 58.07%

2000-2001 12.51 17.19 29.7 57.88%

2001-2002 13.05 17.58 30.63 57.4 %

2002-2003 14.39 19.28 33.67 57.27 %

2003-04 15.19 21.00 36.19 58.03 %

2004-05 (Apr-Jan) 12.76 18.85 31.61 59.63 %

Imports of Iron & Steel

Iron & Steel are freely importable as per the extant policy.

India has been importing around 1.5 Million Tonnes of steel annually.

IMPORT OF IRON AND STEEL (In 000 tonnes)

Year Pig Iron SteelTOTAL (CARBON)

Total Value(Pig Iron + Steel)

(Rs. In Crores)

1991-92 152 1043 1441.32

1992-93 73 1115 1676.00

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1993-94 21 1153 1613.00

1994-95 1 1936 2536.00

1995-96 8 1864 3181.00

1996-97 15 1822 3053.00

1997-98 3 1815 2904

1998-99 2 1637 N.A.

1999-2000 3 2200 N.A.

2000-2001 2 1632 N.A.

2001-2002 2 1375 N.A.

2002-2003 1 1510 N.A.

2003-04 2 1650 .N.A.

2004-05 (Apr-Jan) 7 1650 N.A.

Exports of Iron & Steel

Iron & Steel are freely exportable.

 Advance Licensing Scheme allows duty free import of raw materials for

exports.

Duty Entitlement Pass Book Scheme (DEPB) introduced to facilitate

exports.  Under this scheme exporters on the basis of notified entitlement

rates, are granted due credits which would entitle them to import duty free

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goods.  The DEPB scheme was temporarily suspended from 27th March

2004 to 12 July 2004 for export of steel items.  The Scheme has since been

restarted.  The DEPB rates have also been substantially reduced.

EXPORT OF IRON AND STEEL (In 000 Tonnes)

Year Pig Iron Semis FinishedCarbon Steel

TotalSteel

Total Value(Rs. Crores)

1991-92 - 5 368 373 283

1992-93 16 154 741 895 708

1993-94 620 585 1020 1605 1678

1994-95 466 399 873 1272 1438

1995-96 502 395 925 1320 1939

1996-97 451 300 1622 1922 2231

1997-98 785 503 1880 2383 2512

1998-99 281 174 1770 1944 N.A.

1999-2000 290 328 2670 2998 N.A.

2000-2001 230 195 2805 3000 N.A.

2001-2002 242 270 2730 3000 N.A.

2002-2003 629 460 4506 4966 N.A.

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2003-04 576 701 5221 5922 N.A.

2004-05 (Apr-Jan) 132 183 2925 3108 N.A.

Although India started exporting steel way back in 1964, exports were not regulated and

depended largely on domestic surpluses. However, in the years following economic

liberalisation, export of steel recorded a quantum jump.

Duties & Levies on Iron & Steel:

Customs Duty

The customs duty on items falling under Chapter 72 has been reduced sharply

during the last five years. The customs duty on non-alloy steel and alloy steel was

brought down to the level of 5% and 15% respectively in 2004-05.  In the Union Budget

2005-06 customs duty on alloy steel has been further brought down to 10%.  Currently

the customs duty on prime non-alloy steel and prime alloy steel is 5% and 10%

respectively. The peak rate of customs duty on Chapter 72 items was brought down from

40% to 20% w.e.f. 1.1.2005, as a result the customs duty on seconds and defectives also

stands reduced from 40% to 20%.  In the Union Budget 2003-04 customs duty on

refractory and refractory making raw materials have also been reduced to 10%.  Some of

the other changes made during the last one year in the structure of customs duty on items

falling under Chapter 72 are as follows:

I. Customs duty on melting scrap reduced from 5% to Zero.

II. Customs duty on ships for breaking reduced from 15% to 5%.

III. Customs duty on steel making raw materials like non coking coal, met coke

and charged nickel have been reduced to 5%.

IV. Customs Duty on seconds & defectives has been reduced from 40% to 20%

w.e.f.1.1.2005.

V. Customs Duty on alloy steel and Ferro alloys reduced from 15% to 10% in

General Budget 2005-06.

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VI. Customs Duty on refractories (6902 & 6903) and refractory making inputs

reduced to 10% in the General   Budget 2005-06.           

Excise Duty:

Excise Duty on steel hike from 12% to 16% in the General Budget 2005-06.  

  Levies on Iron & Steel: SDF LEVY- this was a levy started for funding modernisation, expansion and

development of steel sector.

The Fund, inter-alia, supports:

I. Capital expenditure for modernisation, rehabilitation, diversification, renewal &

replacement of Integrated Steel Plants.

II. Research & Development.

III. Rebates to SSI Corporations.

IV. Expenditure on ERU of JPC.

Indian steel rolling scenario:

The economic reforms initiated by the Government since 1991 have added

new dimensions to industrial growth in   general and steel   industry   in   particular.

Licensing requirement for capacity creation   has been abolished,

except for certain locational restrictions. Steel industry has been removed from the list of

industries reserved for   the   public   sector. Automatic   approval of foreign equity

investment upto 100% is now available. Price and distribution controls have been

removed from January 1992, with a view to make the steel industry efficient and

competitive. Restrictions on external trade, both in import and export    have been

removed. Import duty rates have been reduced drastically. Certain other policy

measures such as reduction in import duty of capital goods, convertibility of rupee on

trade account, permission to mobilise resources from overseas financial markets and

rationalisation of existing tax structure for a period of time have also benefited the Indian

Steel Industry.

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The New Industrial policy has opened up the iron and steel sector for private

investment by (a) removing it from the list of industries reserved for public sector and (b)

exempting it from compulsory licensing. Imports of foreign technology as well as foreign

direct investment are freely permitted up to certain limits under an automatic route.

Ministry of Steel plays the role of facilitator, providing broad directions and assistance to

new and existing steel plants, in the liberalized scenario.

There are approximately 2600 Re-rolling Mills in India out of which

approximately 1800 Re-rolling Mills are working inclusive of scrap re-rollers in India.

Out of total 1800, 1167 re-rolling mills are on the list of the Government whether States

or Central. But the rest of the mills have not been enlisted with the State Governments or

the Central Governments specially because the Governments does not provide any

facilities or benefits to Industry. The capacity of the re-rolling industry was assessed by

the then Development Commissioner for Iron & Steel in the year 1981-82 at 20 million

tones which has gone to approximately 24 million tones. As per the comprehensive

survey of Steel Re-rolling Industry Volume I, 1996 by Development Commissioner for

Iron & Steel a total of 1213 Re-rolling Mills responded to their questionnaire. The Steel

Re-rolling industry engaged in the supply of its finished products to the Government,

Semi Government and other big Projects and Housings have installed quality control

arrangements in their Mills and produce the Steel Products confirming to the relevant

standards.

This sector has to face several regulations from the Government in the shape of

Pollution Control, ESI, RPF, Central Excise Duty, Custom Duty, Auxilliary Duty, Sales

Tax, Laws under Factory Act, Trade License, Health License, Fire License etc. etc.

Regarding subsidies this area is decreasing day by day. The subsidies in Excise

Duty is more or less eliminated, so is the case of Sales Tax. Some subsidies are there for

the new units as well as for the sick units. Those are Interest Subsidy, Capital Investment

Subsidies, Stamp Duty Exemptions, and Electricity Subsidies. The industry proposes

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some of the changes, which may bring revolution in the industrial environment of India.

These may be narrated as follows:

I. The Subsidies and Benefits, which are provided to sick units, should immediately

be withdrawn as it is seen generally that none of these sick units could survive

even after several subsidies and benefits.

II. The subsidies and benefits should only be provided to the existing units, which

have never been benefited with any subsidy since its inception.

III. Finance should be provided to the existing units at the negligible rate of interest or

at the interest rate prevailing in developed countries. As the industry does not see

any benefit where existing units become sick and the new units fulfills the

vaccum under the umbrella of Incentives and Subsidies.

IV. The Government should disinvest or dispose off such Public Undertakings in

which the total accumulation of losses since their installation has gone more than

25% of the total capital investment.

The shape of Rerolling industry in Secondary Sector is very bad in comparison with

its counter parts in the world. The main reason is that Government of India has given

importance to only main steel producers specially SAIL. It never paid heed to the

requirements of the Secondary Steel Rerolling Industry.

The industry has been responding very well with the help of highly qualified

Structural Designers and the Institutions like IIT’s, Engineer Colleges, Universities etc.

Most of the steel Rerollers who consume Pencil Ingots and Billets have installed their

own quality control devices and necessary infrastructure to test chemical properties as

well as physical strength of the structurals being produced in their factories. Many of

them are on the approved list of BIS, RITES, Defence, Railways etc. etc. Many of them

feed the Indigeneous Engineering Industry like Bright Bar Manufacturers, Pipes & Tubes

Manufacturers, Rolling Shutter Manufacturers, Steel Window & Doors Manufacturers,

Wire Manufacturers, Products for Tele Communications, Transmission Towers etc. etc.

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We have the pleasure to state that 68% of the total requirement of the country is fed by

Secondary Steel Producers.

Excepting the last year, the long slump in the steel market for the previews 5 years

or so have broken the backbone of Steel Rerolling Industry, which in turn has very bad

effects on the concerned associations inclusive of SRMA. Whatever the small resources

are with SRMA it tries to spread the quality awareness among the Rerolling industry. We

at SRMA have organised several Seminars, Workshops and Dialogues with NISST

(National Institute of Secondary Steel Technology), Joint Plant Committee, Institute for

Steel Development & Growth, Small Industries Service Institute, India Society of

Engineers, Various Chambers of Commerce’s, Several Management and Metallurgical

Consultants, Indian Institute of Metal, India Chapter etc. etc. The result is very good and

our units are competing the main producers in almost all priority sectors.

In addition to the above points SRMA sought the help of the Media like you

towards the much needed labour reforms specially in the unorganised sector like

Rerolling mills with the labour employment below 500. The industry must have the right

to dismiss the inefficient, rude, or the violent workers paying their due compensation as

per the Law of the Land. The fear of unemployment can only bring smooth production in

the factories. The rate of interest by the Bankers and the Financial Institutions must not

be charged more than 3% above the interest rate which they pay to the Depositors in

average. In SRMA’s view this will not increase in such case more than 7%. The

Government should not exploit the industry in the name of Trade License, Health

License, Storage Charges, other Municipal Taxes on the basis of size of the land of the

factory and of the capital invested with the factory. The complexity of the laws and

regulations should be simple. For example while VAT is to be implemented why other

relevant taxes like CST, Excise, Auxilliary Duty, Octroi, Goods Storage Taxes,

Professional Tax etc. are allowed to remain.

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Rukminirama Steel Rolling Pvt. Ltd.

RSRPL was incorporated in the year 1997 and Belongs to the Karthik Group of

companies, promoted by Shri B. Gopala M.E. (Metallurgy) from Indian Institute of

Science, Bangalore. The company has its registered office & rolling mill at Counclim

Goa.

The Karthik Group has a turnover of more than Rs, 250 Cr and has its presence

felt in Ferro-Alloys, Karthik Inductions and other steel related projects. The group’s main

strength lies in its quality products, competitive price and the versatility and foresight of

its promoters, the Bhupal brothers who have lots of experience in steel Industry.

The Group has made immense progress by venturing into other steel related

projects in the form of Karthik Inductions Ltd., which is engaged in manufacturing of

pencil ingots. The ingots produced are high quality and they adhere to a strict Quality

Control process and the same forms as the basic raw material for its associate concern-

Rukminirama Steel Rollings Pvt. Ltd. RSRPL rolls these ingots into quality steel bars

(CTD, TMT, Rounds & Squares) across range of diameters from 8mm to 32mm.

Each succeeding year has witnessed an increasing demand for the company’s

product, thereby testifying its quality and stability in the market. Products have been

successfully marketed in Southern Maharastra, Districts of Belgaum, Hubli-Dharwad,

Coastal Karnataka, Old Mysore area, Bellary District and coastal Kerala. The Company

has made rapid strides in technological up gradation within a short span of time. RSRPL

is currently engaged in the manufacture of new generation steel bars called TMT

(Thermo Mechanically Treated) bars.

Our company has been granted the license from bureau of Indian Standard (BIS),

Mumbai to manufacture CTD/HSSD bars in the sizes 8mm to 32mm as per IS : 1786/85

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in grade. To keep up with the latest trends in technology, the company has started

manufacturing TMT bars in the grade of Fe415, Fe500 and Fe550 recently using latest

German based Evcon Turbo Technology. TMT bars, considered to be new generation

steel bars, are superior in strength, more ductile, corrosion resistant, earthquake resistant,

cost effective and easily workable at site compared to CTD/HSSD bars. Every one-meter

of the TMT bar manufactured by RSRPL carries a mark RR as a stamp of quality.

RSRPL is an ISO 9000 company, it is been granted by the certification company

JAS-ANZ. All employees continuously strive and are committed not only in getting the

certification but also in maintaining it.

RSRPL’s policy on Quality is: -

Customer Satisfaction

Continuous Technology Up-Gradation

Competitive Prices

In support of the above policy, we have defined the following Objectives: -

To adhere to strict sampling and testing of the products to reduce the customers

complaints.

To ensure timely dispatches to the customer.

To improve quality of products by up-grading technology.

To supply products to the customer at competitive prices.

To maintain volume of production by ensuring proper working practices and systems

in the mill.

To build highly motivated team to meet the challenges of the company and

competition.

SWOT analysis of RSRPL:

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Strengths

ISO 9001:2000 certified Company

ISI certification for the products

Good will with the distributors

New Evcon based Technology

Own Raw material supply chain

Quality Control Department

Company owned transportation

Weakness

No brand image

Contract labourers

Low market coverage

Non-Availability of skilled labors

Maintenance of finished products

Improper Co-ordination between

marketing and production

department

Production capacity is very less as

compare to competitors.

Opportunities

Market expansion

Growing market (increasing

demand for steel)

Expansion of product line

Increase production capacity

Collaboration with other small or

big manufacturers

Participating in contracts and other

major construction projects

Threats

Entry of National players (increase

in competition)

Change in Government rules &

regulations

Daily fluctuation of prices

RSRPL product range: -

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RR TURBO TMT Sizes: 8, 10, 12, 16, 20, 25mm.

RR CTD barsSizes: 8, 10, 12, 16, 20, 25mm

RR Round BarsSizes: 10, 12, 16mm

RR Square Bars

Sizes: 10, 12mm

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MANUFACTURING PROCESS: -

PRODUCT: CTD Bars, TMT Bars, MS Squares & Round bars.

RAW MATERIAL: M.S. Ingots / M.S. Billets

PROCESS: -

After unloading the raw materials from the truck, heat 2-3 drilled samples are

drawn from each heat number and tested for Chemical composition.

Physical inspection for dimensional conformity, slag inclusion, piping is also

carried out and the quality Ingot/Billets are separated from the defective ones.

Ingots/Billets are unloaded on to the charging platform by crane. These are then

fed through the conveyor to the mechanical pusher, which pushes Ingots/Billets into the

reheating furnace.

Reheating furnace is equipped with low air pressure (2000 mtr. /hr.) Schieldrop

burners, Air blowers, Recuperator, Oil preheating pumping unit Pt., Pt. Rh Thermocouple

and Temperature Indicator.

Ingots / Billets slowly advance in the furnace towards the Burners and are heated

upto 1150°C + 50°C by oil firing. After attaining temperature of 1100°C, material as

pulled out of the furnace manually on the discharge table and then manually fed in to the

first pass of Roughing Mill.

In the 16” roughing Mill the raw material is rolled in several passes to reduce the

size and shape of the material to the desired parameters for further rolling in 12”

intermediate Mill, the rolling form 1st stand to 2nd and 2nd to 3rd is through automatic

repeaters.

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The rolling material leaving the 16” roughing mill is cut at the front and back

ends by means of fixed type rotary shears before entering the 12” intermediate mill.

25mm CTD Bars are finished from the roughing mill. The rolling in 12”

intermediate is totally automatic. 20mm CTD bars are finished from the 2nd mill stand and

16mm CTD bars are finished from the 4th mill stand of intermediate mill. From the 12”

automatic intermediate mill, the hot material passes into the 10” finishing Mill through a

set of repeaters, guides and funnels. 12mm and 10mm CTD bars/ Rounds are finished

from 10” finishing Mill 2nd and 4th stands respectively.

From the 10” finishing mill the hot material passes on to the 10” continuous mill

through set of guides and funnels and 8mm CTD bar is finished from this mill.

From continuous mill 2nd stand, finishing mill 4th stand and finishing 4th stand and

finishing mill 2nd stand, the finished bars 8mm, 10mm, & 12mm respectively goes on to

the pinch roll through delivery pipe and cast iron funnels and then on to the Rotary shear.

Where bars, rounds and square are cut to a length of 33/44 mtrs. In the rotary shear, cut

bars moves on the cooling bed through the W-Channels.

After reaching the W-Channels of cooling bed the material is manually shifted to

cooling bed platform. From cooling bed platform, Inspection will be carried out for

section weight. Visual observation for longitudinal rib, transverse ribs and size of bars is

done.

After conforming to quality and size material is transferred to conveyer, which is

used to convey the materials to cold shear for end cutting and also to cut the material in

11 meters length for rounds CTD Bars and 5.5 meters for square bars. After cutting, it is

allowed to cool on the rail platform.

After cooling, CTD Bars are shifted to twisting machine. Here they are twisted to

the desired pitch in the twisting machine to increase the elongation strength. After which

they are bundled with the help of steel rings and a single “U” bend is done.

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From the stack, inspection will be carried out for bend test, nominal mass and

mechanical properties. After conforming the quality of finished materials are made lot

and but the Batch number and kept for storage to despatch.

Thermo Mechanically Treated (TMT) Bars. As per IS : 1786/85 and Fe-415

Special features of TMT bars:

1. Higher strength with better elongation

2. Excellent weld-ability

3. Resistance to fire hazards

4. Excellent ductility

5. Higher fatigue strength

6. Easy workability at site

7. Better bonding strength

8. Better corrosion resistance

9. Achieves better results than BIS standards

Advantages of RR TURBO TMT bars:

1. Savings upto 14-19% steel

2. Reduction in costs

3. Better safety of structures

4. Easy working at site owning to better ductility and bend-ability

5. Better corrosion resistance

6. Good weld-ability

7. Resistance to fire hazards

Comparison chart of CTD bars with RR TURBO TMT bars:

Properties CTD bars RR TURBO TMT

Strength High (normally upto grade Very high as grades of Fe-500 &

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Fe-415) Fe-550 are easily available

Elongation As per IS : 1786/85 Very high in all grades and over

achieves the elongation

requirement in the recent

amendment to IS : 1786 for

earthquake resistance

Weld-ability Preferably avoided as welded

joints are weak

Better and no loss of strength

Formability Bend 3D-5D, Re-bend 5D-

8D

Excellent due to uniform

elongation, bend 1D and re-

bending 4D

Ductility and Fatigue

strength

High Very high, most suited for

earthquake resistance structures

Fire hazards Loss of strength on

temperature rise

Negligible loss in strength upto

500 deg. C.

Corrosion resistance Scales fall down during cold

twisting

Better corrosion due to non

twisting

Work-ability Easy working at site Pre-welded meshes can be used

Overall economy Achieves better results and saves

steel

Savings in weight & cost of construction with RR-Turbo TMT bars

Characteristics CTD 415 RR-Turbo TMT500

RR TMT 550

Design Strength 415 N/sq.mm 500 N/sq MT 550 N/sq.mm

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Quantity Required 1000MT 0.854 MT 0.809 MTOver CTD 415% of Savings in weight

14.6% 19.15%

415/MT reinforcement(%) Savings in cost w.r.t CTD

Rs 986.006.8%

Rs 1,740.00 12.0%

Marketing and sales department:

The spinal chord of RSRPL is the marketing department that strives all moment to

roll out the products into the market. The elite force behind this department is committed

in completing the schedules and meeting the deadline, marketing department and other

departments of RSRPL are committed and are working towards achieving 100% growth

in the coming 2 years. Headed by Mr. Prakash and his elite personnel they have proved

that through commitment achieved results can be surpasses. They believe in building

relationships and build network. The marketing and production department mutually fix

up the production schedule. The marketing department books orders well in advance and

places accordingly with production department to meet the order. Major parts of orders

are booked over the phone and meager of part of them are booked through procedures.

Once an order is taken from a particular trader/ buyer his records are checked and if

proved satisfactory the order is booked. If the purchaser is new, he has to go through the

procedure and produce all the relevant documents if he is buying on credit.

Advance payment is pressed only to new traders or small quantity purchasers,

orders less than 1tonne are not entertained as steel prices are continuously under

fluctuations the earlier prices at the time of booking an order fixed so either parties share

equal amount of risks if prices varies.

In coming trucks in the factory premises are weighted accordingly and details are

maintained, when the material gets loaded, it is measured again and the difference will

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aggregate as the weight of the material. The material is loaded according to the daily

sales transactions are feed into a computer and annuals are maintained for audit purpose.

Marketing personnel, continuously visits the traders to maintain congenial

relationship and redress their queries. He is involved in attending to their quires and

studies the trends in the purchasing pattern of the customers. He records and maintains all

the data and produces to the marketing department who will have a discussion with the

production department and improve on the shortcomings to serve the market in a better

and improved manner.

Karthik group has its own transporting facility to meet the demand on time. Ex-

works payment terms are included in calculating the total amount else the trader sends his

own vehicle for processing the material with its own facility of transport, RSRPL claims

to meet the demand of Goa state within 5 hours from the time order is booked.

Branding is the most essential part in today’s cutthroat competition. Creating

brand awareness is the initial step in building brand. Steel being a technical product, the

onus lies on the part of the company to make people knowledgeable about the product

features, the company has to come and show itself in the public. If regular interactions

are there like- Sponsorships, Trade shows, Advertisements, Press meet, Press releases,

Charities, and Promotional campaigns- then general public will be aware of the

company’s name and likewise it will remember the product that the company propagates.

So branding is an essential part in marketing a particular product when it operates in an

oligopoly market. If it was to be a monopoly then forget branding because the only

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available product would get sold in the market at any given price. Monopoly market is in

restriction now and competition has increased manifold so to have a cut in mind of the

customer, any marketer should focus on creating brand awareness to be heard in this

crowded place of brands.

Here at RSRPL our first job was to beat the upcoming, huge capacity competition

from Kundil Group and Goa Ispat, a conglomerate that has introduced in the market a

brand named Kamdhenu Saria. There will be huge competition as these two have come

up together with large capacities. We have a much better quality and better relationships

with our traders with which we will face the competition.

Our foremost job would be towards creating Brand Awareness under the name

RR TURBO TMT BARS through advertisements. Some of the major activities that we

planned in order to manage in creating brand awareness are as follows: -

Events planned

1) Survey using questionnaire on

a) Traders: Role of traders in creating brand awareness & increasing sales.

b) End users: Buyers preferences & impact of advertisement on the purchase

of steel.

2) Presenting seminars about the company featuring benefits of using RSRPL’s RR

TURBO TMT Steel. Audience will be

Engineers

Developers

Members of COC

Major traders in the city

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Contractors

Government official (Developmental Department)

3) Designing of brochures and pamphlets.

4) Collect price list of various media and plan accordingly to the reach & visibility

Cable television.

Hoardings

Pole ads

Newspapers.

Wall paintings.

5) Make arrangements for transit advertisements

Buses-Kadamba, KSRTC etc.

Auto rickshaws- Local and major cities

Tempo’s etc

6) Sponsoring sports meet (Foot ball) in Goa & major events having lot of visibility

& reach in other cities.

7) T-shirts with company logo, made compulsory for loaders, also given to drivers,

cleaners and traders loaders etc.

8) Expand traders base to have more coverage.

Our quest in creating brand awareness began with the collection of various

advertising agencies address that are into hoardings, wall paintings, media, newspapers,

art-work (designing and developing) etc.

A survey was conducted using a structured questionnaire on traders that would

elicit the benefits they received from other manufactures and suppliers who are our

present customers. Also included was to know the influence of advertisement in creating

brand awareness. The details of the survey are given later.

Later I contacted all the agencies and briefed them about the company’s details

and our requirements. The first thing that was to be done was to get a art-work designed

that would be used for hoardings for advertisements. Regarding this quotations were got

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from various agencies among which Upasana Advantage from Bangalore was selected.

Three samples copies were conceptualized and given among which one was selected.

This is being painted on a hoarding, which will be finalized when it’s ready. Its overall

appearance to appeal to the customers will grant it its prize.

Second step was to call agencies that were dealing in hoardings and pole ads.

Again corresponding with them and detailing about the company and product was done.

Quotations were received. A hoarding near Verna Industrial Estate was selected to get the

painting done on trail basis. It was booked for advance of 26400/-, painting is underway

and will be finalized once it is approved.

Next was to call up agencies that were into ad films. Quotations are being coming

and yet a final selection of agency has to be made.

Another work undertaken was preparations of glow signboards and M S boards on

which our company name and product will be highlighted. These will be distributed

among the traders to be lit in their shops. M S boards will be nailed on the vehicles,

which will constitute our transit advertisements. Negotiations are going with Kadamba

that is Goa State Transport and KSRTC that is Karnataka State Road Transport

Corporation for transit advertisement. Soon it will be accomplished.

Basic thing was to get scribbling pads and order pads designed and printed,

around 500 in numbers. They were got done from Agadi Prints Gadag. Which will be

distributed to all the traders in Goa, Karnataka, and southern Maharastra.

T-shirts and Caps, 1000 in numbers were ordered from Tirchur, which will carry

company name, product name were got printed. These will be given to all employees of

RSRPL and to all the labourers. Discussion to make T-shirt compulsory for one day is

going on. These T-shirts will be given to all the traders and the loaders of trucks at traders

point.

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A power point presentation is made detailing about the company and its product.

It will highlight and explain them the benefits of using RR TURBO TMT bars and the

savings in cost and material that one can benefit from using it. This work is yet to be

green signaled by our M.D. This power point presentation will be made to

Engineers

Developers

Members of COC

Major traders in the city

Contractors

Government official (Developmental Department)

Designing of new brochures is underway and it will be approved soon once it is

completed.

Research Work:

“To Study the Role of Traders and Advertisements in Marketing of Steel”

Objectives of the study:

1) To know the role of traders in pushing a particular brand.

2) To know the benefits that the manufacturer provides to the traders.

3) To study the feasibility of advertisement.

Research Methodology:

In order to achieve the above objectives the following research design was adopted

Sample profile:

Sample Size: 30 respondents

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Sample feature: 75 Traders belong to different parts of Goa & Karnataka state, so that

their role in creating brand awareness & increasing sales can be understood. Researcher

took enough care so that the sample selected was representative. The selection of the

respondent was done using convince sampling technique.

Source of data and tools for data collection:

Both primary and secondary data was used for the study; the secondary data were

collected in form of company reports, brochures, policy documents, web page content

etc. Primary data was collected using a well-structured questionnaire. The primary data

was also collected through discussion with sales & marketing department.

Data analysis:

A simple grid was prepared to collect the data provided in the completed

questionnaire. Percentages were used to analyze the data, Pie charts and Frequency charts

were used to illustrate them.

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1. Which company steel do you sell in your trading house?

The purpose to include this question is to know whether the trader is selling only

our brand or other company steel. Through this we will get to know who are our

major competitors and in what areas they are operating.

2. Which state steel is stocked more by you?

Through this we can come to know the degree of competition that is prevailing in

the market. Who are the players that are trying to woo the customers? From which ends

the players are entering

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3. Which state steel is the highly demanded in the market?

To this we can come to know the degree of awareness of the product in the

market. What is the stretch that players are having? What are the markets they are

operating in? Etc.

4. What are your sales strategies?

Through we know how the traders market the product, what are their sales

strategies? How can we help them? What assistance can be given to push the product so

that both of us can be benefited?

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5. Who are your major buyers?

With this question we will get to know where our product lies at the end. They

can be contacted directly to fetch more sales and use them to propagate our

product by giving them recognition and awards.

6. Whom do you want to target for more sales?

By this answer we will get to know whom traders want to attract for more sales,

likewise the same strategy can be used to gain more market by calling the same

clientele

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7. The bulk buyers negotiate their purchases in terms of

Through this we will get to know what are the needs of the bulk buyers, how ad

what attraction and benefits they are looking, in what way can we commit ourselves so

that we can win their confidence for a perpetual relationship.

8. Do customers prefer a particular Brand of steel?

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Through this we get to know the preferred brand in the market. Are customers

aware of the available products? Are they knowledgeable about the brands?

o If Yes, why?

This answers why a particular brand is preferred in the

market. How are customers made know about the availability of the product? What is the

basic thing that attracts customers? What is the reason that a particular brand has gained

momentum in the market?

9. Do you recommend customers for a particular brand of steel?

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Does trader plays a role in recommending a particular product, is he interested in

pushing a product, can he propagate if he is give benefits?

If yes, why?

Why is that a trader is pushing a particular product is there a genuine reason in

pushing a particular reason?

10. What benefits does the company provide to you?

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This is the focal point of our study. By this we understand why does trader pushes

a product? What at large he is receiving to propagate a product? What are the

special incentives and benefits he need so that we can have a better relationship

and market our product? What are others giving him?

11. What benefits do you provide to your customers?

How do the traders carry their business profitably? What are the benefits they

pass on to the customer that they have received from the manufacturer? Are they will to

pass? What methods and strategies they employ to clinch on to customers?

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12. Do you advertise your trading company?

With this question we would get to know whether the trader advertised his trading

house to have a name in the market and to attract customers. What are the media

through he is advertising? What is the frequency and reach he is using? Will he be

able to cove the target customers by using these tactics? Is it necessary to

advertise to have a foothold in the market?

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13. Would you like to advertise locally with a particular company name?

Through this we will get to know whether the trader is interested to clud his

advertising strategy with ours? Is he willing to advertise with our brand? So that

both can have a large reach and publicly focus each other at large.

14. Are you willing to share the expenses of advertisements with the company?

As advertising in local area would be an expensive move for either of the parties,

are the traders willing to share expenses if their advertising is club with our

advertising. This will be only in the local area where the trader is operating.

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Recommendations

1. Create Brand Awareness Immediately.

2. Advertise in all the prime locations of each and every city where traders are

operating.

3. Increase margins to traders, as they are the channels through which steel is sold.

4. Increase the number of company owned distribution vehicles.

5. Increase Production capacity if feasible, as competition has come up in giant size.

6. Increase traders base to have more coverage of the areas in which we are not

operating.

7. Staging of steel material in the mill has to be taken care as lots of material gets

mixed up and will consume time in dispatching.

8. Build shelters for slotting of finished steel, so that steel doesn’t catch rust during

rainy season.

9. Production and marketing should club together and schedule properly so that

there is no shortage of material when required.

10. Try to minimize labour turnover, which, is increasing.

11. Create an HR department so that labour problems can be attended professionally.

12. Arrange for traders recreation once in a year to have a congenial relationship with

them.

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