global marketing strategies for indian firms
Post on 22-Nov-2014
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EXECUTIVE SUMMARY Global marketing offers a way for companies of all sizes to grow by expanding their customer base beyond the domestic market. However, the complexities of global marketing demand careful planning and proper implementation. This study has been conducted to gain knowledge about the potential strength of Stainless Steel exports of China. The supply demand scenario, domestic steel industry and the present and possible role of India was analyzed in case of China. To start with the Indian and the world Iron and steel Industry is studied and comparative study of the performance of Exporting Countries and Indian industry is analyzed. Indias positioning in the global perspective will depend upon cost competitiveness of the Indian. Besides the continuous developed, emphasis productivity is to given on new quality
improvement. The Chinese steel market is one of the most active markets in the world. China is a country with a dynamic economy whose annual growth rate has stayed at 7-8 percent in the last five years. After this China Customer are segmented, and the most attractive segments for Indian Exporters are selected as target markets. The company studied is Jindal Steel Ltd. Jindal Stainless is among the top twelve stainless steel producers in the world along with Arcelor, KTS, Acerinox, Avesta Polarit, and POSCO etc. The company itself has two offices in China and is a well-known brand in the Chinese Stainless Steel Industry. It is a pioneer in the production of Chrome Manganese Stainless Steel and last year 90% of Jindal Stainless exports were to China.
OBJECTIVES OF THE STUDY
Indian business firms are facing problems on the international marketing front and the possible strategies that can employ for going global and maintain their stride with global scenario
MARKETING MIX OF GLOBAL MARKETING
Marketing planning helps you decide what products or services are required in your market, then how to sell them and what price to put on them. So focus on the seven Ps of marketing people, planning, product, positioning, pricing, place and promotion. People The personal, cultural, social and psychological attitudes of your customers are important. If you are going to meet their needs; do some basic market research. Planning Your market research needs to be analyzed and evaluated. You can then start to predict the requirements of your customers. Product (or service) What makes your product different from that of your competitor? Can you develop any brand values for your product? Decide what your unique selling point is and work out how the customer will benefit from your product or service. Positioning Differentiate your product from that of your competitors. Look for the gap in the market for your product; work out why this gap exists. How big is this market? Does it have short and/or long term growth potential? Decide who your competitors are and how they will react to your plans. What makes your product special? How will you develop and exploit competitive advantage; work out the best time to launch your product. Pricing What people feel about a product is reflected in what they are prepared to pay for 4
it. Identify what value your customers place on your product. Then decide which market segment you will attack e.g. premium or budget. What discount structure (if any) will you offer for volume. What will be your pricing policy for agents, wholesalers and retailers? Place You may need to work out how your goods will move from where they are produced to where they are sold. You may want to use wholesalers, retailers or your own premises. Or will you use direct marketing, telemarketing, or ecommerce via the Internet? Promotion This is the most visible aspect of marketing. It pulls together various communication elements- Corporate identity; Branding; Advertising strategy; Public relations, internal and external; Direct marketing; Sales promotion and merchandising; Sales and sales management; Exhibitions.
DEVELOPING MARKETING STRATEGIES Positioning and differentiating the market offerings through the product lifecycle Developing new market offerings Designing global market offerings
This study will also be conducted to gain knowledge about the potential strength of Stainless Steel exports of China. The supply demand scenario, domestic steel industry and the present and possible role of India was analyzed in case of China. To start with the Indian and the world Iron and steel Industry is studied and comparative study of the performance of Exporting Countries and Indian industry is analyzed. In the next step, the environmental analysis of China is done. The environments selected included macro-micro economic environment, legal environment, social environment, and business environment, of China. Indias positioning in the global perspective will depend upon cost competitiveness of the Indian. Besides the continuous developed, emphasis productivity is to given on new quality
improvement. The Chinese steel market is one of the most active markets in the world. China is a country with a dynamic economy whose annual growth rate has stayed at 7-8 percent in the last five years. The Iron and Steel Industry is one of the major foreign exchange earners, despite of important role it plays in balancing Indias international trade. Steel has pervaded our daily lives from the kitchen to hospital and industry. Because of its ability to withstand corrosion, steel has found an indispensable slot even in the medical world. 7
Extensively used, steel is sudden in a wide assortment of container industry, galvanizing units, engineering industry electrical industry, re-rolling industry and heavy industry. Hence we can say that: There is a little bit of steel in everyones life Iron containing less than 2% carbon and less than 1-% silicon and not more than a trace of phosphorus is what is usually termed steel. Carbon is the principal hardening element in steel. The increment of carbon % within steel increases the hardness of steel. The hardness becomes correspondingly less in steel containing more than 85% carbon than low carbon ranges. PRODUCTION PROCESS There are two primary methods of making steel, differing in terms of the process and raw materials used : the blast furnace route (BF) and the electric arc furnace (EAF) route. In the BF process, the iron is first reduced with coke in a blast furnace and then refined to produce molten steel, while in the EAF process a mix of scrap and sponge iron is melted using electricity in an electric are furnace to produce long and flat products. Stainless steel is gaining recognition and it is considered as the friendly and sustainable material because of its corrosive resistance and for its easy to clean / hygienic surfaces. Its versatility, durability and its supraliminal quality makes stainless steel the exceptional material of a choice for the new millennium. Initially stainless steel found its applicability in cutlery and gradually into textile, chemical and other engineering industries. Today its application has created wonders in the Architecture, Building and Construction (ABC) and Automobile, Railways and Transportation (ART). Stainless steel usage in the building and construction sector would increase in the coming years. If the potential of the market is fully realized in terms of the prospective end use
sectors mentioned above along with the continuing growth of the utensil market, the future growth rate of stainless steel can even be higher than witnessed in the last decade. INDIAN STEEL INDUSTRY Indian Steel Industry is now going through a speedy growth path. In the global scenario, China remains the worlds largest crude steel producer in 2008. Chinas steel sector has been following an upward trend, with sale of steel product reaching their highest levels in recent years. Increased imports and decreased export have combined to bring great pressure to bear upon chinas steel market. The Antidumping Measure taken by the United States against China HR Plates has seriously helped up Chinas export. In china the volatile Nickel price create uncertainty in the stainless steel market. Chinas Metal Sector has been enjoying a period of astonishing growth. Trend of production and consumption are further elaborated with respect to category of products like cold rolled flat, bars, wire rods and pipes. Stainless steel world has a department specialized in research and intelligence to help meet the markets increasing need for the resolution of complex technological and informational problem. Stainless steel production in India is speedily increasing since the last three decades. Initially India had to depend on foreign markets to meet its requirement of stainless steel. Today India is self sufficient enough to make stainless steel of all grades, shapes & sizes and is also a major exporter of stainless steel of utensil grade. In the Public Sector, the special steel plants of Steel Authority of India Limited (SAIL) at Durgapur and Salem have made significant contribution for the growth of this industry. Mukand Limited, Panchmahal Steel Limited, Shah Alloys Industries Ltd., Jindal Strips Limited have also contributed significantly in making India self-sufficient in stainless steel production. (William A. Johnson, 2001) 9
Most (around 75%) of the Indian stainless steel market is still in the kitchen segment. Indian Railways is switching over to manufacture their passenger coaches which will require 15 mt stainless steel per coach in coming 5 years. The Indian government is using Ferric cold rolled stainless steel strips for making coins. The main focus of Indian stainless steel industry is China which still imports 90% of sta