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PROJECT REPORT

ON

ONLINE MARKETING

AT

ROURKELA STEEL PLANT (RSP)

Under the guidance of:

MR I.M PANDA, MANAGER, MARKETING,

(IA &CDY)

ROURKELA STEEL PLANT.

Submitted by:Deepak Mohanta

3rd Semester MBA,G.M.College(Autonomous),

SAMBALPUR.


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DECLARATION

I do hereby declare that the project report entitled Online

Marketing in RSP has been prepared by me under the guidance of

my external guide Mr. I.M.Panda, Manager (Marketing), RourkelaSteel Plant (RSP), Orissa.

It is only for academic purpose and it has not been published or

presented any where else for the award of such degree.

DATE: Deepak Mohanta

PLACE: Dept. of ProfessionalCourses,

G.M College(auto),

SAMBALPUR


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ACKNOWLEDGEMENT

It is my privilege to thank all of them who have supported me in carrying

out this project successfully.

Firstly I would like to express my sincere thanks to two separate concerns

Department of Business Administration, G.M.COLLEGE and RSP, the former

for arranging and guiding me to start the project and the latter for

extending their noble help for its formation and completion.

I express my sincere gratitude to Mr. I. M. Panda, Manager (Marketing) RSP

for extending guidance and direction in preparing this project, without whose cooperation the project may not be completed.

I would also thank all the staff of Marketing Department, RSP, who havespared their valuable time and extended their kind cooperation for data

collection and preparation of this project.

Deepak MohantaDept. of Professional

Courses, MBA 3rd SEMG.M. COLLEGE


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C E R T I F I C A T E

This is to certify that the summer project entitled, Online

Marketing at Rourkela Steel Plant, is an original piece of work done and

submitted by Akankhya Parida has been carried out under my guidance and

supervision.

I wish her a successful career in future

Mr. I. M Panda Sr.Manager(Mktg)IA&CDYRourkela Steel Plant.


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CONTENTSCHAPTER 1

Introduction to Online Marketing

CHAPTER 2

Brief write-up on SAIL

CHAPTER 3

Objective of the Study

ROURKELA STEEL PLANT (company profile)

CHAPTER 4

Marketing Department of RSP

CHAPTER 5

Questionnaire

Data analysis

Interpretation

CHAPTER 6

Findings

RecommendationCHAPTER 7

Conclusion

Bibliography


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CHAPTER 1 IN TRODUCT I O N TO O NLIN E

MARKET ING


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INTRODUCTION

Online MarketingOnline- marketing, also referred to as i-marketing, web-marketing, Internetmarketing, Search Engine Marketing (SEM) or e-Marketing, is the marketingof products or services over the Internet.

Since the Internet has now become a primary tool for the delivery of information, businesses of all sizes are using online marketing to increaseawareness of their company's goods and services.

The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant response and elicitingresponses is a unique quality of the medium. Internet marketing is sometimesconsidered to have a broader scope because it not only refers to the Internet, e-mail, and wireless media, but it includes management of digital customer dataand electronic customer relationship management (ECRM) systems.

Internet marketing ties together creative and technical aspects of the Internet,

including: design, development, advertising, and sales.In its simplest form, the term online marketing refers to using the power of Internet advertising to generate a response from your audience. Also known asInternet marketing or web marketing, online marketing is used by companiesselling goods and services directly to consumers as well as those who operateon a business-to-business model.

Online marketing, regardless of the exact method a company chooses to use,

offers several benefits. It's convenient, affordable, and provides theopportunity for companies to track results as a campaign progresses. Inaddition, Internet marketing allows even the smallest of companies to competein a global marketplace. Online marketing is often related to public relations,customer service, sales, and information management.


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Common areas of interest within the field of online marketing include:

y Affiliate Marketing : In affiliate marketing, a business recruitsassociates to promote the company's products or services. Theassociates receive a commission or other similar rewards for every sale,visitor, subscriber, or customer they bring to the company.Amazon.com Associates Central is an example of an affiliate marketing

program that Amazon.com uses to encourage private website owners to bring traffic to its site.

y Display Advertising : Display advertising involves the use of web banners or banner ads placed on a third-party website to drive traffic toa company's own website and increase product awareness.

y Email Marketing : Companies that use email marketing send promotional emails directly to customers. However, it can often be hardto distinguish between spam and legitimate email marketing messages.

y Interactive Advertising : Interactive advertising involves the use of

animations and other graphic techniques to create ads that engage theviewer and invite participation.

y S earch Engine Marketing : Search Engine Optimization (SEO), paid placement, and paid inclusion are search engine marketing techniquesthat companies can use to increase their visibility in the search engine

page results from Google and its competitors.

y V iral Marketing : Viral marketing is a technique is which companies

encourage customers to pass along information about their products or services. Company websites that let visitors email interactive games or funny video clips to their friends are an example of a viral marketingeffort.


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Advantage of Online Marketing

i. Your store is open, 24 hrs a day, 7 days a week. Further, your customers are worldwide in reach, and can shop anytime that they

want to.ii. The cost of spreading your message is next to nothing. Emailing

your subscription base is more often cheaper than sending a letter through the mail.

iii. Updating your subscribers can be done almost instantly throughemail. Visitors to your website can get up to the minute informationon each visit. If you are having a sale, your customers can startshopping at the discounted prices literally as soon as they open their email.

iv. If you have an information sensitive business, such as a law firm,newspaper or online magazine, you can deliver your productsdirectly to your customers without having to use a courier.

Disadvantages of Online Marketing

i. Online marketing is not free. The cost of software, hardware, wedsite design, maintenance of your site, online distribution costs and of

course, time, all must be factored into the cost of providing your service or product.

ii. Easier to have outdated information on your site, thus timing of updates is critical

iii. There is no replacement for good old fashioned customer service.The majority of internet marketers lack customer service and inquiryresponse programs. The majority of websites also have poor navigation, which makes it difficult for your visitor to find what theyare looking for. Many sites were created with a marketing view, nota customer service point of view.


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CHAPTER 2 B RIEF WRITE-UP ON SAIL MAJOR UNITS PRODUCTS PRODUCED CENTRAL MARKETING

ORG.(CMO)


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S TEEL AUTHORITY OF INDIA LIMITED

SAIL is Indias largest steel producing company. With a turnover of Rs.48,681 crore, the company is among the top five highest profit earningcorporate of the country.

The year was 1973. The event formation of Indias largest steel companynamed steel Authority of India Limited (SAIL). A vibrant company, whichright from its inception, has dominated the Indian steel landscape.

At present, the Government of India has 86% ownership of SAIL. Thecompany owns and operates nine manufacturing plants, including twosubsidiaries. The four main integrated steel plants of SAIL producing carbonsteel are located at Bhilai, Bokaro, Durgapur and Rourkela, while three plantsat Durgapur, Salem and Bhadravati manufacture a variety of special and alloysteels. A subsidiary at Burnpur is a multi-product integrated plant; another atChandrapur is the country's largest bulk producer of ferro-alloys. SAIL hasthe second largest mining operations in India. Its iron ore, coal, dolomite andlimestone mines provide a competitive edge in terms of captive raw materialavailability

Today, SAIL is truly a market-driven company, making important structuralchanges and continuous process improvements to meet the expectations of asatisfied customer. It is now focusing on its business of carbon steel making,exiting from areas outside its core competence. Moreover, the company ismoving towards becoming a leaner and flatter organization, highly responsive

to changing market dynamics.Technological improvements in the area of steel making and modernization of the rolling mills have made the vast array of SAIL products a household namein the country. SAIL is also a global player, with its products like Hot RolledCoils and Plates, being well accepted in the most sophisticated world markets.


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SAIL has a well equipped Research and Development Center for Iron andSteel (RDCIS) at Ranchi, which helps to produce quality steel and developnew technologies for the steel industry. Besides, SAIL has its own in-houseCenter for Engineering and Technology (CET), Management Training

Institute (MTI) and Safety Organization at Ranchi. Our captive mines areunder the control of the Raw Materials Division in Calcutta. The EnvironmentManagement Division and Growth Division of SAIL operate from their headquarters in Calcutta. Almost all our plants and major units are ISOCertified.

Major Units :

Integrated Steel Plantsy Bhilai Steel Plant (BSP) in Chhattisgarh

y Durgapur Steel Plant (DSP) in West Bengal

y Bokaro Steel Plant (BSL) in Jharkhand

y Rourkela Steel Plant (RSP) in Orissa

Special Steel Plantsy Alloy Steels Plants (ASP) in West Bengal

y Salem Steel Plant (SSP) in Tamil Nadu

y Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Subsidiaryy Maharashtra Elektrosmelt Limited(MEL) in Maharashtra

y Indian Iron and Steel Company (IISCO) in West Bengal


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PRODUCTS PRODUCED:

SAILs product range semi-finished and finished material such as:

Hot Rolle d Sh eets and C oils Rails, Wh eels and Ax les Cold Rolle d Sh eets and C oils St ruc tura ls, Bar s and R ods

G a lvan ized Sh eets and C oils P ipes

P la tes Billets/ Blooms/ Slab s Elect r ica l Steel Sheets Sta in less/ Alloy Steels Tin P la tes P ig Iron

Product Production:

To achieve international production standards and extend the range of

specialty steel products, SAIL has recently modernized its integrated steel

plants at Durgapur, Rourkela and Bokaro. Adoption of the latest steel refining

technology and the globally preferred process of Continuous Casting have

resulted in increased availability of superior quality steels from SAIL.

Increased automation and adherence to rigorous quality norms have enabled

SAIL to produce steel for sophisticated user segments and thus enlarge its

market base. To gain wider international acceptance of its products, SAIL has

introduced quality management systems and practices in its work functions.

All major production processes and services of SAIL are certified to ISO:

9000 standards.

Product S ale:

With the largest marketing network among Indian steel producers, SAIL has

the most penetrative market reach. Besides offering the facility of direct

dispatch of material from its plants to customers doorsteps, SAIL maintains


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an extensive branch office and stockyard network at 44 locations and a

number of sales and customer contact offices spread all over the country.

Nodal stockyards with mechanized handling systems in select locations

provide SAIL with an edge over its competitors in making steel materials

readily available on just-in-time basis. Authorized dealers ensure supply of

SAIL steel in locations including those where stockyards do not exist.

Totally oriented towards customer care, SAIL has recently introduced new

processes like Key Account Management (KAM) in its marketing functions to

further strengthen customer relations and provide quality service. With long

and flat products being marketed by separate groups, customers now receive

focused attention and improved service. Every requirement of key customers

is fulfilled by specially formed groups comprising marketing and plant

personnel who have the responsibility of streamlining operations, from order

processing to fulfillment. This ensures that the customers receive their

supplies as per their requirements in time.

CENTRAL MARKETING ORGANIZATION(CMO)

All SAIL s products except alloy, special steels and stainless steels aremarketed directly by CMO through units in co-ordination with rail, roads andshipping sector to ensure quality and promote dispatch of products. The mainfunctions of CMO are as follows.

Marketing of Steel products and fertilizers.

P roduc tio n plann ing and d ispa tch c o-o rd ina tio n w ith plan ts. Expo rt of steel. Impo rt of coa l and ot he r consumab les. M ark et rese arch . Info rma tio n System.


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CHAPTER 3 OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY OF THE STUDY ROURKELA STEEL PLANT(COMPANY PROFILE) PRODUCT MIX (RSP) PRODUCT & APPLICATION (of RSP) MAJOR UNITS OF RSP SPECIAL FEATURES OF RSP


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Company Profile

ROURKELA STEEL PLANT (RSP)

Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India, was set up with German collaboration with an installed capacity of 1million tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes.

The plant was modernized in the mid-1990s with a number of new unitshaving state-of-the-art facilities. Most of the old units were also revamped for effecting substantial improvement in the quality of products, reducing costand ensuring cleaner environment.

RSP was the first plant in India to incorporate LD technology of steel making.It is also the first steel plant in SAIL and the only one presently where 100%of slabs are produced through the cost-effective and quality-centric continuouscasting route.

RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9million tonnes of crude steel and 1.67 million tonnes of saleable steel. It isSAILs only plant that produce silicon steels for the power sector, high quality

pipes for the oil & gas sector and tin plates for the packaging industry. Itswide and sophisticated product range includes various flat, tubular and coated

products.

Almost all major units of the plant, including its Personnel Department andSteel Township, are certified to ISO: 9001 standards. RSPs Silicon SteelMill, Sintering Plant II, Environment Engineering Department, Plate Mill, HotStrip Mill, ERW and SW Pipe Plants, Special Plate Plant as well as Steel


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Township have been awarded ISO: 14001 certification for EnvironmentManagement.

S PECIAL FEATURE S OF R S P

1. 1st Public Sector integrated Steel plant to be set up in the country.

2. Exclusively producing flat products.

3. Finest Plant in India to adopt L.D. Process of Steel making.

4. It has got an electrical sheet mill capable of producing both Dynamoand Transformer grade electrical sheet.

5. It has a special plate plant where special alloy Steel Plates are shaped todifferent shapes as per requirement in the defense sector.

6. RSP has the distinction of being the unique Steel Plant in India with anintegrated Fertilizer Complex.

7. It has two captive power plants (CPP-I & CPP-II) with a generationcapacity of around 120 mw.

PRODUCT MIX TONNE S/ ANNUM

Plate Mill Plates 2,99,000

HR Plates 92,500

HR Coils 3,98,000

ERW Pipes 75,000

SW Pipes 55,000

CR Sheets & Coils 4,33,000

Galvanized Sheets (GP& GC) 1,60,000

Electrolytic Tin-Plates 85,000

Silicon Steel Sheets 73,500

Total Saleable Steel 16,71,000


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Products and its Application

Products Applications

HR Coils LPG cylinders, automobile, railway wagon chasis and all types of high strength needs.

Plates Pressure vessels, ship building and engineering structures

ChequeredPlates

Flooring & staircases in the industrial installations, railway platforms, etc.

CR S

heets &Coils

Steel furniture, white goods like refrigerators, washing machines,automobile bodies, railway coach paneling, drums, barrels, deepdrawing and extra deep drawing, etc.

GalvanizedS heets

Roofing, paneling, industrial sheeting, air conditioner ducting andstructural

Electrolytic Tin

Plates

Containers for packaging of various products including e MajorUnits

Raw materials play the most vital role in RSPs production

of 1.9 million tonnes (MT) of steel per annum. The annualinput requirement of the plant includes 2.3 MT of cokingcoal, 1.5 MT of boiler coal, 1.8 MT of iron ore dible oils,vegetables and confectionary items.

S ilicon S teelsheets & Coils

Small generators, stators for high efficiency rotating equipmentand relays, etc.

S piral Weldpipes

High pressure transportation of crude oil, natural gas and slurrytransportation, water supply, sewage disposals, grain silos, civilengineering pilings, etc.

ERW Pipes High pressure transportation of oil & water, sewage disposal, tubewells, etc.


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Major UnitsRaw materials play the most vital role in RSPs production of 1.9 milliontonnes (MT) of steel per annum. The annual input requirement of the plantincludes 2.3 MT of coking coal, 1.5 MT of boiler coal, 1.8 MT of iron ore

lumps, 1.5 MT of iron ore fines, 1.6 MT of fluxes and other materials like tin,zinc, aluminium and Ferro-alloys.

y Ore Bedding and Blending Plant

RSPs Ore Bedding & Blending Plant (OBBP) has a base mix preparation system with on-ground bedding, blending and conveyingfacilities. Set up under the earlier modernization programme to provide

pre-mix feedstock to Sinter Plant-I & -II, the plant has an annualdispatch capacity of 500,000 tonnes of material.The facilities in OBBP include major installations like wagon unloading(tipplers & track hoppers), iron ore crushing and screening system, rawmaterial storage yard, rod mills and roll crushers for flux and cokecrushing, proportioning bins and elaborate conveying systems.

y Coke Oven

RSP has five 4.5-metre-tall coke oven batteries (COBs) that producecoke as the input for blast furnaces. The coke ovens are equipped withwagon tipplers, automatic handling and conveying facilities, coal

blending provisions, coke wharfage crushing together with screeningand conveying systems.

y S intering Plant

RSPS two sinter plants feed sinter to the blast furnaces with a

combined capacity of 3.07 MT per annum. Sinter Plant-II is operatingat more than its rated capacity since the year 2000. This has facilitatedthe increased usage of sinter in blast furnace burden.


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y Blast furnaces

The four blast furnaces of RSP, with a combined capacity of 2 MT, produce hot molten metal for steel production.

y S teel Melting S hops

S M S- IApart from a computerized LD process which has enhanced shopcapability, the LA Vacuum Metallurgy Technique has been alsoadopted for secondary refining of steel. This facilitates production of special steels for application in electrical machines, pipe making, tin

plate, boilers and auto chassis members. The shop was originallydesigned to produce ingots for conversion to slabs through the SlabbingMill route. However, after the discontinuation of the ingot route, SMS-I

produces slabs through casting machines.S M S- II Provided with the latest steel making, secondary refining (ladle furnaceand argon rinsing) facilities and two single-strand slab casters to

produce 1,355,000 tonnes of steel slabs annually, the shop is equipped

with automation through three levels of computerized control, LD gascleaning and recovery, power distribution system, water and utilityservices.

y Plate Mill

RSPs 3.1 meter wide, 4 high reversing mills are equipped with onlinethickness measurement facilities. Provision for inspection by

customers nominees, online ultrasonic testing and checking ensuredispatch of higher quality plates to customers. The Plate Mill also has awalking beam-type furnace with a capacity of 100 tones/hour for slabheating. The mill has a production capacity of 299,000 tones per annum.


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y Hot S trip Mill

The facilities of the 1.44 MT per annum mill has:

Two new walking beam type reheating furnace (225 TPH) Roughing/sizing stand RoVo with automation Automated coil box Quick roll change system in Roughing Stand-1 and finishing mills Coil marking, sampling and conveying systems.

y Cold Rolling MillProduces about 678,000 tonne of cold rolled sheets per annum, RSPs

Cold Rolling Mill has a modern 5-stand tandem mill and a 4-high 1700-mm reversing mill. The tandem mill is equipped with automatic gaugecontrol, x-ray gauge, data logging and thyristorisation.

y Electrolytic Tinning Line The continuous electrolytic tinning line produces a shining tin-coatedsurface in a variety of coating thicknesses. The tinplate shearing linesare equipped with sensitive pinhole detectors and an automatic sorting

system.

y Galvanizing Lines Two continuous hot-dip galvanizing lines are equipped with jet-coatingfacilities. There are 2 multi-roller-corrugating machines as well which

produce corrugated sheets.

y S ilicon S teel Mills

This unit produces steel for the electrical industry through variousoperations carried out in sophisticated, continuous/semi-continuous

processing lines and a 4-high reduction mill. Advanced process controland product testing facilities ensure product quality.


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y Central Power Training Institute (CPTI)

RSPs Central Power Training Institute (CPTI) is a CEA-certifiedcategory-1 institute that meets the statutory training needs of power engineers of SAIL. Certified with ISO 9001:2000 QMS, CPTI conductstraining largely for operation and maintenance personnel of SAILscaptive power plants and Power Distribution Network departments.

SPECIAL FEATURES:

COMMUNITY

Caring, S haring and S preading S miles

Rourkela Steel Plant has imbibed a credo to makequality steel and spread lasting smiles amongstthe people living in its neighborhood. Going

beyond the realms of philanthropy or charity,RSP has adopted a strategy of ushering insustainable development in its peripheral villages.The objective of spreading samriddhi finds itstrue expression in the myriad activities taken up by the plant for the peopleliving in its periphery. From education to women's empowerment, providinghealthcare facilities to improving infrastructure, promoting advancedtechniques of agriculture to skill enhancement, land and water management tolivestock development the multifaceted approach of RSP aims at touchingand shaping every aspect of life and living of its community neighbors.

Taking a unique step forward, the plant has set up the Institute for PeripheryDevelopment that is functioning as the nerve centre of all the activities takenup under periphery development. Villagers from nearby areas are beingtrained in various income generation activities in this institute.


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Adoption of 16 villages as Model Steel Villages is another significant stridetaken up by RSP to create sustainable models of economic development.

Partners in Progress

Rourkela Steel Plant has always considered the small scale industries (SSI)operating in its neighborhood as its partners in progress. An exclusive wing Peripheral Industries and Vendor Development (PIVD) has been set up inRSP under its Materials Management Department for catering to thedevelopment needs of local SSI units.

S cenic S teel Township

Rourkelas Steel Township is a modern industrial habitation characterized byextensive green coverage and aesthetic installations. Efforts to beautify thetownship and upgrade its facilities never cease here. A number of artisticallycrafted monuments not only add significant grace to the sylvan landscape of the township but also showcase the innovative usage of steel for creatingobjects of art. The Indira Gandhi Park in the heart of the steel city is another effort made to highlight nature in all its glory and grandeur, and a musical

fountain enthralling visitors. A zoo in the park is the second biggest of its kindin the state and is home for a diverse variety of animals and birds.

Creating a Healthy Environment

Rourkela Steel Plants concern for a healthy environment is symbolized by itswide network of Medical & Health Services. Ispat General Hospital (IGH), a685-bed hospital run by RSP for its employees is a premier medical centre inthe eastern region. In IGH the doctor-to-bed ratio is 1:4.8 and occupancy rateis 87%. The hospital has several exclusive facilities like Burn Centre, BloodTransfusion Centre, Intensive Care, Dialysis Unit, Nuclear Medicine, MRIScan, Cardiac Clinic, CT Scan, Thyroid Clinic, Bio-Medical WasteManagement System, etc. The hospital has a WHO-recognized Malaria


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Research Centre. It also has the distinction of imparting postgraduate DNBtraining in 11 disciplines.

S ports Hub

RSP strongly believes that one of the most fruitful investments that can bemade in the present generation is in the field of sports. The Biju Patnaik Hockey Stadium in Rourkela is a full-fledged hockey stadium equipped with astate-of-the-art synthetic turf. The Sports Department of Rourkela Steel Planthas conducted several national, regional, steel plant, district and even school-level tournaments to impart a fresh impetus to sporting activities, hone

budding talents and make Rourkela a sporting hub.

Environment Management

RSP has provided air pollution control equipment like ESPs, Bag Houses, DryFog Dust Suppression systems & Wet Scrubbers in different units. RSP hasalso provided dedicated Waste Water Treatment Units in different plant unitsfor treatment of wastewater. The treated wastewater is recycled back to the

process and blow down water is discharged only into drains for final treatmentat Lagoon before discharging into river. RSP has established a full-fledgedEnvironmental Engg. Department way back in 1989, along with EnvironmentLaboratory which is certified with IS/ISO14001. RSP has adopted 4R (Reduce, Reuse, Recover & Recycle) strategy for enhancing the utilization of wastes. With the dedicated efforts of RSP collective the pollutant levels haveshown drastic reduction.


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CHAPTER 4 MARKETING DEPARTMENT OF RSP SECONDARY STEEL STOCK YARD(SSSY) CENTRAL DISPOSAL YARD SECONDARY PRODUCTS MARKETING PROCESS AT RSP MARKETING PROCESS AT RSP ONLINE AUCTION OF MATERIALS Metaljunction.com & RSP OPEN SALE PROCESS


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MARKETING DEPARTMENT OF R S P

The marketing department of RSP was earlier called as the Order Department.It is only deal with the secondary product of RSP.

The Managing Director Mr. B.N S ingh heads the marketing department of RSP, General Manager Mr. A.P Mohanty and other executives are also incharge of the department. During past few years the Marketing Department of RSP had a huge work force of employees. But due to modernization andintroduction of the computer technology the work force have been reduce toless number of employees.

After the implementation of Single Window System the work process isminimized. This system is a new system and it has been introduced in 1 st April2004 and for last two years it has been running successfully. There are twomajor departments under RSP as the Secondary Steel Stockyard and centraldisposal yard.

MARKETING S ECTION S

Marketing section of RSP has four major sections they are as follows.

y Secondary Steel Stockyard

y Central Disposal Yard.

A) SECONDARY STEEL STOCK YARD (SSSY)

The secondary steel stockyard is the main stockyard of RSP where thesecondary products are kept for sale. It is constructed outside the grill gatealong the Bisra Road with an initial investment of about 1.5 crores in the year 1991-92 and it came into operation on 02/03/1992. Subsequently, the yard has

been expanded suiting to the requirement and necessity of RSP.


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ALLOTMENT OF MATERIAL S AT SSS Y

Everyday SSSY sends the lists of plots/lots available for allotment .The plots/lots are fed to the computer. All the items and valid sale orders of those products are separately randomized through computer on that day and lists aregenerated. Based on random list the senior plot/lot of the senior. Item isallotted to the senior valid sale order. There are certain things, which are takeninto account. After all the customers have been considered the next round for allotting materials is started.

The following aspects are checked through computer: The concerned sale order should be valid w.r.t to expiry date,

suspension of sale order, cancellation etc. The party should have submitted the revised price acceptance. The sale order should be sufficient (i.e. minimum 10 tonne) for

allotment of one wagon. A unique SSSY no. is assigned (5 digits) to the materials on entry to the

stockyard. The materials coming through truck (10 tonnes) are allotted lot nos. thatis of 4 digits.

The materials coming through wagons are more in quantity and areallotted plot nos. that are of three digits.

For entry of trucks into the stockyard identification of the driver, helper & R.C no. of the vehicle is required.

A private contractor is appointed for loading and unloading the materialat SSSY.

After the payments have been made the release order is issued, which isa financial document of sale. This contains party name, award price,details, and last date of lifting.


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Materials going out of SSSY, an invoice will be made-then dispatchadvice will be given on which one can take out the material.

On the last day lifting the material DCR (delivery completion report) isissued for each lot, which comes to the finance department.

This DCR is required for refunding EMD money to the customer.

B) CENTRAL DISPOSAL YARD

Central disposal yard indicates the area where the materials of different shapeand size declared as scrap of unserviceable or absolute are stored. Thematerials are collected from different units of plants as per Executive Director (Works) procedure order; these are collected daily basis and recorded in a

registered called DAY BOOK. The scope of this procedure order isrestricted to all arising of RSP except for those which are sold by marketingdepartment to ancillary industries and unused arising of RSPs own products. These materials are collected & complete lots are formed. Theselots are offered to disposal. The pricing committee of RSP fixesthe prices for lots. These items are spare parts, surplus andobsolete items. There are thousands of these types of products intwo different ways (a) store in open air (b) store in close air,looking at the behavior of the items.


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SECONDARY PRODUCTS

IRON STEEL SCARPS:

CR Steel Items Def. HR Coils HR Steel Items Def. CR Coils Scar p of pipes Def. GP Sheets Semi Rolle d P la tes Def. P la tes/H R P la tes Sho rt pla tes Def. CRNO Sheets

Coil E nd cu tti ng Def. ch eq ue re d P la tes P ig Iron

SPECIAL PLATES:

M isc Iron and S teel Items BF G ranu la te d S lag

COAL CHEMICALS:

HP Na ph tha lene LCO G R-II Anthrac ene Oil Car solic O il

FERTILIZ ER:

AMM . Sulpha te

WASTE PRODUCTS:

Fe rr ous Su lpha te Cal. Dolofine U/ R FCLY Bricks Cal. Lime-10mm M ag Carb on Br icks LD Slag


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Marketing Process at RSP

Process Followed: ONLINE AUCTIONING PROCESS

FORWARD AUCTIONING REVERSE AUCTIONING

OPEN SALE PROCESS

ONLINE AUCTIONING :

Online auctioning is the process whereby users log onto a website and bid for items or services posted on this website by other users. The way onlineauctioning works is similar to normal auctioning outside the cyber world, buthas allowed the auction to reach a much greater audience.

Like the traditional auctions, there is an auctioneer (the hosting website) thatreceives a cut of the sale, there is a minimum bid that bidders must reach to

buy the product, there are people who fraudulently cheat the system, and eachday sales are made all over the world.

The process of both online auctioning and traditional auctioning, however, isfundamentally different. For both the first step of the process is usually for theseller to identify a product or service they want to sell, and then to find acompany to host the auction and act as the auctioneer.

This is where the process splits. The person opting to use a company based onthe web as the selling tool must log on, post a picture and description of theitem, and then conducts all transactions online or by phone. Although mostsites do provide a general tutorial helping new users set up an auction, mostlikely these users will not receive any direct help from the auctioneer.


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FORWARD AUCTIONING

Forward auction are electronic auctions, which can be used by sellers to selltheir items to many potential buyers. Sellers and buyers can be individuals,organizations etc.

Two types of forward auctions are common:

a) Liquidate auction - Here buyers seek to obtain the lowest price for an itemthey are interested in.

b) Marketing efficiency auction .-Here buyers wish to obtain a unique item.

Its offer effective mechanisms for offloading excess stock or capacity.Bidders in these auctions can source non-critical goods cheaply.

ADVANTAGES:

1 . For the auction holders:

Many types of business supply goods through online auctions. Retailers,distributors, manufacturers and liquidators all benefit in different ways.

Forward auctions can help them to:

y acquire new customers and extend geographic reach

y test new products and establish price points

y dispose of excess inventory quickly

y price according to demand and stock levels

y reduce sales costs by minimizing marketing spend.

2 . For bidders:


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Buying through forward auctions reduces procurement costs.

Businesses can use them to:

y source non-critical supplies, like stationery and office furniturey acquire specialist, second-hand equipment inexpensivelyy reduce the time spent on procurement by setting up automated searches

and bid alerts

RE V ER S E AUCTIONING

A reverse auction is a type of auction in which the roles of buyers and sellersare reversed. In an ordinary auction (also known as a forward auction), buyers

compete to obtain a good or service, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and pricestypically decrease over time.

Reverse Auctioning refers to when a buyer submits a request for a product or service and sellers submit bids. The buyer then chooses the cheapest or bestquality product out of the bids made from the sellers.

It generally results in quicker and cheaper procurement. Well-managedauctions significantly reduce the time between the issuing and awarding of contracts.

ADVANTAGES:

1 . For the auction holder

The mechanism favors buying power - the bigger the business, the better thesaving.

y The auction mechanism replaces time-intensive negotiations withsuppliers.


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y Procurement departments save time sourcing and negotiating withsuppliers.

y Materials can be sourced from a larger pool of suppliers.y Cost reductions can be significant: 10%+ cost savings are frequently

reported.

2 . For suppliers

Reverse auctions aren't just a popular cost-cutting option for large businesses.

y They are popular with major customers who have large budgets.y Competing on price isn't the only way to win business - factors like

service, quality and reliability can count in your favor.y You gain access to customers who are ready to buy quickly, without

having to launch a sales campaign.y Bidding aggressively can be a quick way to offload stock or build

market share.y Even unsuccessful bidders gain valuable market information.

B enefits of online auctions:

An online auction is a dynamic pricing environment. There are advantages for purchasers and suppliers:

y The process is open and builds mutual trust.y As it is a transparent process, under/over pricing is less likely.y Buyers and sellers have access to global markets, irrespective of their

location.y Participants have to specify their requirements very precisely.y Enables sellers to promote their goods to an extremely large and diverse

range of customers.y Easier to find information and records containing details of the previous

history of the seller.


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ONLINE AUCTIONING AT R S P

This Online Forward Auction is being conducted for Rourkela Steel plant,Steel Authority of India on the Auction Platform of mjunction services ltd.

The materials after getting their respective plot and lot numbers are placed for the auction. It includes the secondary and scrap products. For scrap items theyare invited open tenders from the venders and for the secondary products theyare taking the help of the Metaljunction.com, which is doing auction through,online.Before this online auction process they used to followed the Order BookingSystem, in this process 50% of the secondary product material is placed for auction to small scale Industries (SSI) of ORISSA, while the remaining 25%for open sale and 25% for registered traders. In this system the venders werenot in a position to accept the material at any cost and RSP was forced to salethe less defective secondary product at a cheaper rate. Due to limited capacityof stock RSP sale the chemicals at a very cheap rate to the local venders. RSPstill follow the open sale auction in some cases, if secondary items are fails tomake raise any demand then those material are sale through open auctions.

AUCTION OF THE MATERIAL S

The materials after getting their respective plot and lot numbers are placed for the auction. It includes the secondary and scrap products. For scrap items theyare invited open tenders from the venders and for the secondary products theyare taking the help of the Metaljunction.com, which is doing auction through,online.

METAL JUNCTION S ER V ICE S LIMITED

Metaljunction.com private Ltd (MJ) is a 50:50 joint venture of TATA S teeland S AIL. Founded in February 2001, it is today Indias largest e-commerce


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company (with e-transactions worth Rs 9,131 crore) and runs the worldslargest e-market place for steel. The steel supply chain in India has beentransformed by the company, which has improved the efficiency, transparencyand convenience with the way in which steel, especially secondary steel, is

bought and sold.Over 3,500 buyers and scores of public sector and private

sector companies today buy and sell products using the convenience,transparency and efficiency offered by metaljunction. In September 2005,metaljunction was awarded ISO 9001:2000 certification by Det NorskeVeritas, Netherlands. The certification covers the quality management systemstandards of the company for e-sales, e-sourcing, channel financial servicesand software solution services.

y P rovides e-selli ng se rvices fo r the follo w ing ma te ria ls: Steel Fe rr o a lloys, mine ra ls and met a llics. Non-fe rr ous met a ls Ob solete ca pit a l goo ds(id le assets)

y Also provides e-selli ng se rvices on a B P O mo de. y Has sold 3 million to nes fo r its clien ts, sinc e inc eptio n u p to Septem be r

30, 2005. y P rovides financ e to d ist r ibu tio n chann els/ d irect e nd s use rs in

asso cia tio n w ith lead ing bank s. Has arran ge d financ e of Rs 28 .7 b illiontill Septem be r 3 0, 2005.

METAL JUNCTION AND R S P Now RSP is doing their secondary stock marketing online throughMetaljunction.com. Though Rourkela Steel Plant does not have the system of online auction facility they are going through this process.

ROLE OF S ER V ICE PRO V IDER

1 . Service Provider is the agency (operator) primarily providing the serviceof the Forward auction to the client.2 . Finalization of the auction items in consultation with the client.3. Defining of bidding rules for each auction in consultation with the client.


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a) Enhancing bidder awareness of and comfort with the auctionmechanism and bidding rules.

b) Input of the Auction items and defining the bidding rule in the auctionengine.

c) Enlarging the customer base by introducing new bidders.d) Collection of EMD, Letter of Interest etc. from the willing bidders and

forwarding the same to the Client.e) Providing access to the approved bidders to participate in the Auction.f) Summarizing the Auction proceedings and communicate the outcome

to the Client.

ROLE OF BIDDER

1 . The bidder would participate in the auction with the aim of bidding tosecure the auctioned item in the auction

2 . The bidder would be provided access to the Auction through a User ID protected by a Password.The bidder needs to ensure that the User ID and Password is not revealedto unauthorized persons.Bidders are also requested to change the password allocated to them by theService Provider to keep their confidentiality. Access to the auction mechanism shall be provided to all the approved bidderssubsequent to obtaining their written consent to the General Rules &Regulations and the Letter of Interest.Payment of Earnest Money Deposit (EMD) as decided by the client before thestart of the Forward auction will be one of the necessary conditions for

participating in the auction.

3. Bidders hereby confirm that they shall commit to lift the item (being bidfor) at the price entered by them in the auction engine AND at the terms andconditions specified herein by the Client.All Prices entered shall be legally binding on the bidders.4. In the event of winning an allotment in the auction mechanism, the bidder shall commit to fulfill outlined obligations under the contract.


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5 . The bidders shall bid on the terms specified by the client & place their bidin the auction engine in the manner specified by Service Provider.

Timings of the Online Bid.

All the timings of the Online Bid shall be based on the time indicated by theServer hosting the Auction Engine. It shall be the endeavor of "ServiceProvider" to ensure that the Server Time reflects as closely as possible theIndian Standard Time (IST) i.e.GMT + 0530 hrs. However, in the event of anydeviations between the Server Time and the Indian Standard Time, thefunctioning of the Auction Engine (launch, operation, and closure) would beguided by the Server Time. Bidders are advised to refresh both the windows

of the Auction Module check the exact Server Time (displayed in both thewindows).

Duration of the Auction.

It refers to the length of time the price discovery process is allowed tocontinue by accepting bids from competing bidders. The duration of theauction would normally be for a pre-specified period of time. However, the

bidding rules may state the conditions when the pre-specified duration may becurtailed/ extended. The conditions include:

y Curtailment of auction duration in the event of no bids for a specified period of time (Inactivity Time)

y Automatic extension in the event of bids being entered towards the endof the scheduled duration to facilitate the other bidders to view andreact to the bid.

Terms and Conditions for Online Auction:

a) In online auction every one can take participate in India, so there is a big chance of false registration, for that there are some conditions.


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g) Final Bids given by the successful bidders in the Online Auction process shall be kept valid for 60 Days from the date of auction for theacceptance by the Management.

h) Management reserves the right to accept or reject any or all the bids or to apportion the materials in any manner deemed fit and this decisionshall be final.

i) For any disputes arising during the course of submission of thequotations online or for any matters subsequent to acceptance of suchon-line quotations, the method of settlement shall be through the

process of Arbitration by a Sole Arbitrator appointed by the MD/Chief Executive of Steel Authority of India Limited, Rourkela Steel Plant.

j) In case where the bids given by the customers in Online auction processare not acceptable, the EMD for the one time participants shall berefunded within 10 (Ten) days. EMD of the permanent Customers shall

be retained by RSP for their participation in future Auctions

k) Letter of Acceptance / Sale Order (S.O.) will be issued to the successful bidders whose bids are acceptable to the Management.

l) In case any customer backs out for one or more number of lots after issue of sale order, EMD deposited by the party will be forfeited andthe party will be banned for a period of 3 months from participation inFA.

m) PAYMENT PROCEDUREAfter receive the sale order, which contains the detail information aboutthe materials, vender name, and dispatch date, payment conditions. Thevenders get some stipulated period for lifting the materials as followed.

10 Days for lifting - No penalty Next 7 days with - 1% penalty


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Another 7 days with - 3% penalty

n) CONDITION S UNDER REFUND OF MONEY

The EMD has to pay by the customer to take part in the auction. Thosewho do not get any allotment for the material their EMD has refunded

by RSP, but for those who got allotted of material but failed to make payment for them some penalties are there. The penalty will be chargedto the total amount of material left in the stockyard. If the party fails tomake payment in respect to the total amount of material, then the partywill be banned for a period of 3 months to take any part in the onlineauction plus from the financial aspects 5% will be charged on the total

lot value subject to Rs 1, 00,000 and the rest amount will be refunded tothe vender after deduct the 5% penalty.

AD V ANTAGE S OF THI S S YS TEM

More customers are created through this online auction. Since they can participate any where across India. Through this online auction Rourkela Steel Plant getting good price for

their secondary products and it helps to create a good and healthycompetition.

Better consumer satisfaction because all the activities done under oneroof that is called Single Window System.

Through this they are able to generate very high revenue. This process is very useful as compared to order booking system.


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EXAMPLE OF AN ON-LI NE AUCTI ONSyn opsis of Ca t a log u e::

Sale is governed by SAIL-FA-1.For further details please log on to : www.metaljunction.comVisit us at www.sailtenders.co.inFor further details, please go through the terms & condition.

FA Number FA /0 8-09/ 005

FA Date 24 .0 4 . 2 00 8

Item Description Sp ar es f r om CD Y

Quantity & No. of Lots 1 3 Lots

EMD Amount & Lastdate of Submission

1.Rs 5000/- for G roup A2 .Rs 50000/- for G roup BLast da te of sub missio n of EM D is 23 .04.08

Security Deposit EM D w i l l b e r et a in e d a s SD in ca se o f in st a l lme n t p a yme n t & w i l l b e adju ste d in t h e la st in st a l lme n t

Payment inInstallment(s)

For DSO va lues; -up to Rs1.00 lakh u p to 10.00 lakh , single Inst a llme n t. -mo re than R s 10,000/- inst a llme n t in mu ltiples of RS 10.00 Lakhs

PaymentDate/Schedule

For DSO va lues; -up to Rs 1.00 lakh s- 7 da ys f rom DSO, -up to Rs 10.00 lakh s- 14 da ys f rom DSO-M ORE THAN 10.00 lakh s: 1st inst a llme n t 10.00 lakh s- 14 da ys The rea fte r eq ua l inst a llme n ts of 10 lakh s eve ry 10 da ys

Delivery Time 2 0 da ys f r o m r ele a se o rd e r da t e

Penal ty for la tepayment

1% pe r w ee k o r p ar t t h e r e of

Penalty For Delay inLifting

1% pe r w ee k o r p ar t t h e r e of

Inspection Time 9AM - 5 PM in a ll working da ys

Special remarks All cu stome rs may kind ly f urn ish their TIN/ SRIN no befo re mak ing payme n t orlifting/ d ispa tch es for inc orpo ra tio n of T IN/ SRIN in the VAT invoices so tha t they may ava il inpu t Tax cr ed it wh e reve r a pplicab le


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CHAPTER 5 QUESTIONARE DATA ANALYSIS INTERPETATION


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CHAPTER 6 FINDING S RECOMMENDATION


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S UMMARY OF FINDING S

1. Most of the customers belong to the category of manufacturers i.e. theyare using secondary and by-products of RSP as a raw material.

2. Majority of customers prefer to purchase secondary and by-productsfrom Rourkela steel Plant because of local market and quality but theyfind price is higher compared to the quality.

3. Majority of the customers are satisfied with the quality of the secondaryand by-products of RSP and that is a big advantage for RSP.

4. Low price, better service and high quality are the major concerns that thecustomers looks into for preferring a particular steel plant for secondaryand by-products.

5. Majority of customers responded that other steel plants are providingsecondary and by-products at a lower rate.

6. Most of the Customers responded that they find difficulties while dealingwith RSP.

7.

E-auction is the most reliable selling method and majority of customersare happy with it. The other methods of selling adopted by RSP liketender, fixed price are same as the other steel plant and customers aresatisfied with those selling methods.


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8. Most of the customers dont register complain about the problem theyfaced during purchase but majority of customers who registered their complain get solution for that. So, RSP has to increase the confidence of customers on them.

9. Roadways are the most common mode of transportation used bycustomers because all belongs to local market. Some of the customers areusing Railways for the transportation because by-products are mainlytransported through railways.

10. Most of the customers are not happy with the volume limit that theyreceive from RSP.

11. Most of the customers responded that they are satisfied with theinformation provided by RSP about the bids to be taken place but fewcustomers are also not happy with the information provided by RSP.

12. Majority of the customers responded that they are happy with the order handling procedures of RSP.

13. Majority of the customers responded that that they are satisfied with theoverall experience while dealing with Rourkela Steel Plant.


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RECOMMENDATION:

Some of the suggestions are given below: The marketing strategy of RSP should be customer oriented. So it has to be

improved more.

Proper measures should be taken to identify and avoid fake bidders in the

process of Auction.

RSP should develop its sales promotion strategy to attract more customers. RSP should concentrate on minimization of the inventories and need proper

planning and scheduling.

Continuous efforts should be made to develop the marketing system and

policies in order to satisfy the customers and maintaining their reliability.

RSP shou ld d evelop its produc tio n un its so tha t it w ill help to reduc e produc tio ns of se condar y produc ts and produc e mo re primar y p roduc ts


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CHAPTER 7

CONCLUSION BIBLIOGRAPHY


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CONCLU S ION:

RSP has taken lots of steps in marketing quality steel. New players have enteredinto the steel market. Each player would like to gain in terms of market share. As a

forward step, lots of innovations of products have been made to occupy an

important market share. RSP gives priorities to various customers problem, its

pricing and distribution policy. RSPS now emphasis is making oriented strategies.

The marketing division of RSP is doing lot of credit worthy job in handling various

customers oriented and market oriented problems. They have acquired a lot of talents and those are able to deal with various customers diplomatically. The

various works are systematically executed and also documented by the marketing

division. Greater market orientation has percolated across the organization. The

marketing set up itself has undergone change with re-organization along product

lines, bifurcation of sales and warehousing functions, use of dealer channel and

improving its effectiveness.

Many new technologies have been introduced like- online auctioning,

through which it can market its products throughout the country through Internet

marketing.


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BIBLIOGRAPHY

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