tata steelium.pptx

Sachin Kumar_ Viva IMS_ Virar

A Success Story in B2B Branding

Presented to: Prof. Nitin Joshi

Presented by: Sachin Kumar

Sachin Kumar_ Viva IMS_ Virar

TATA Steelium world's first branded Cold Rolled Steel Largest private sector steel marketer in India.

Jamshedpur (India)

Crude steel production capacity of 6.8 million tonnes per annum.

Sachin Kumar_ Viva IMS_ Virar

Sachin Kumar_ Viva IMS_ Virar

Branding Blueprint

Branding for credibility and comfort

A physical and accountable distribution system

Branding by de-commoditizing steel

Dealing with a professional organization

On February 27, 2003, ‘TATA STEEL’ launched theworld’s first branded cold rolled steel (CRS) called‘TATA Steelium’ in Goa.

Sachin Kumar_ Viva IMS_ Virar

Benefits of branding

Branding will give rise to a customized product in terms of value

•performance

•pricing

•Help to meet our customers’ needs better.

•Branding will go a long way in meeting the challenge of gaining a

sustainable competitive edge.

•It will add value to the product and help in highlighting it in the

otherwise fragmented market for cold-rolled steel.

•It will not only help in product identification, but will also boost

the element of brand recall, thereby creating a niche”

Sachin Kumar_ Viva IMS_ Virar

Prior to brand launchVolume-wise, the Indian CRS market was almost equally divided between

Small - less than 60 tonne a month

Large - above 60 tonne to 1,500 tonne a month

The large number of customers were generally neglected and served small by a few wholesalers.

The chemical composition, mechanical properties, and surface finish of the CRS that were suitable only for simplistic applications and not for deep drawing, bending, forming and artistic uses. Superior quality materials available from import were beyond the reach of small customers. Several compromises like local annealing, heat treatment, cutting, welding, etc., were necessary before use.

First

Sachin Kumar_ Viva IMS_ Virar

Second Small customers were having little access to the manufacturer of CRS. They had to move from shop to shop to buy their regular requirements as availability ofmaterials with the retailers was never certain. Such retailers usually did not entertain quality complaints from customers as they did not receive support from wholesalersor manufacturers. Accordingly, the need for transacting with a professional organization instead of market-based retailers was strongly felt by the small customers.

ThirdIdentity and quality of CRS purchased from the retailers were often doubtful. Other manufacturers apparently sold identical CRS of different specificationsincluding inferior grades at lucrative price and terms. Manufacturer’s name and other details were usually marked only on the packaging materials that could beeasily manipulated by a dishonest retailer. In spite of being aware about these problems, a small customer had little option but to rely on these retailers.

Sachin Kumar_ Viva IMS_ Virar

FourthFrequent non-availability of required items, searching for alternate availability, negotiatingprice and other terms, taking the hassle of lifting the coil from a retailer/wholesaler, delivering the same to a cutter and closely following up with them for the desired size and shape. These customers were in fact willing to pay little more to get the materials in the manner required by them. Customers, in general, were annoyed with the sales techniques of retailers/ wholesalers/brokers and felt that most of them tried to push them into buying odd-sized CRS

Sachin Kumar_ Viva IMS_ Virar

BRAND ENGINEERING FOR ‘TATA STEELIUM’

ProductPackaging

PricingCommunication

Salespersons

Channel Design

Distributor Selection

Sachin Kumar_ Viva IMS_ Virar

Sachin Kumar_ Viva IMS_ Virar

Key Facilities Advantage over CompetitionCoupled shallow bath • Lower idle time and improved productivityhydrochloric acid pickling • Less damage of the strips• Uniform product quality• Low acid and energy consumptionTandem cold rolling mill • Better gauge and shape accuracy• No damage during storage• Lower cost in terms of investment, manpower, and consumables• Less off-gauge and higher yieldBatch annealing • Can take care of orders in small lots which is the characteristic of Indian retail market• Can get close to customer’s requirement of draw- ability, ductability along with strengthSkin passing • Precise amount of surface roughness is imparted,

Sachin Kumar_ Viva IMS_ Virar

• Possibility of surface defects like stretch marks, etc., are eliminated• No need for the customer to prepare the coil before deformation100% inspection under strobe lights • 100% performance at customer’s end and not merely a specification guarantee by trained inspector and with • Matching precise oil requirement of the customer and thus ensuring smooth operation electrostatic oiling capability at customer’s end.Machine packing with thin • No damage due to moisture or loss of oilplastic film • Increased protection to handling damageElectrolytic cleaning • Removes dirt or contaminations from the grooves and deepening on strip surfaceElectro discharge texturing machine • Matte, bright and mirror bright finish depending on the customer’s end use requirementsSource: Tisco News, 1999 and Kharkar et al., 1997.TATA STEELIUM

Sachin Kumar_ Viva IMS_ Virar

Quality

Mkt

Penetration

Availa

bility o

f CRS

Packa

ging

Gauge

& Sh

ape

Higher e

nd applic

ation

Surfa

ce finish

Integrated St

eel plan

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Authenticit

y of m

ateria

l

Wide Vari

ety of p

roduct

0

1

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Brand Engineering

Market Prior Branding Tata Steelium

Sachin Kumar_ Viva IMS_ Virar

Tata steel would not be through brand preference or brand image advertising, but by communicating its product and service strategy to a large number of small customers of cold rolled steel , mainly through the well-established network of distributors and dealers. Brand management teams carry outelaborate studies of customer segments and send customized direct mail, brochures, and other relevant information through distributors to position the brandfavorably in the minds of the customers.

TATA STEEL B2B brand strategy

Sachin Kumar_ Viva IMS_ Virar

THANK YOU