1

Undrstanding Dalr conomics for TATA Tiscon Dalrs in

Nashik, Than and Raigarh

SIP projct rport submittd in partial fulfillmnt of th rquirmnts for th PGDM

Program
By
Vr Bra
2014320
Suprvisors:
Company Guid: Mr. Hormaz Todiwala, Snior Sals Managr, Sals &
Markting, TSL. Faculty Guid: Mr. Sanjay Shanbaugh, PGDM Program
Chairprson, IMT Nagpur.

Institut of Managmnt Tchnology, Nagpur

2014-16

Acknowldgmnt

Tll m and I forgt, tach m and I may rmmbr, involv m and I larn.
Bnjamin Franklin
Byond th books & classrooms too, thr xists a world of possibilitis & larning, all it taks is
th will to xplor. Th Summr Intrnship Program, 2015 was that on amazing xprinc for
m that confirmd to th abov lins. Ths two months of projct basd larning at TATA
Stl Ltd hav imbibd in m, a significant larning of th stl industry & hav also
providd som ky takaways as a marktr.
I would, first of all lik to xtnd a tokn of gratitud to my company guid Mr. Hormaz
Todiwala, Snior Sals Managr (Sals & markting), TATA Stl Ltd for his constant and
valuabl guidanc right through th intrnship program. It is also fitting for m to us this
opportunity to thank Mr. Himanshu Singh, Sals Managr (Sals & Markting), TATA Stl
Ltd for his support and guidanc at various stags of th projct. Hrby I would also lik to
convy my rgards to Ms. Mgha Bisht, Managr (HR), TATA Stl Ltd for providing much
ndd support from th HR dpt. whil projct.
Hrby, I would also lik to xprss my gratitud to my faculty guid Mr. Sanjay Shanbaugh,
Program Chairprson, PGDM, IMT Nagpur for his valuabl support and guidanc that
brought a lot of clarity to my approach of work during th Intrnship. Hrby I would also lik
to thank various facultis from th collg, officials & mmbrs of Placmnt Committ, APO
& collg managmnt for providing th rsourcs & support with which this summr intrnship
program would not hav bn th sam.
Vr Bra
2014320
IMT Nagpur

Contnts
1. xcutiv Summary4

2. Introduction and Objctiv of Study...5

TMT Bars....6

3. Distribution Modls.9

4. Brif Dscription of th concpts/modls introducd in th study11

5. Company Analysis and Rsarch....15

6. Intrprtation and Conclusion.26

7. Rcommndation27
8. Limitation of Study28
9. Appndics. 29

10. Bibliography34

Chaptr 1: xcutiv Summary

This projct is an attmpt to dtrmin th viability of th TATA Tiscon Dalrs in Nashik, Than
and Raigarh aras. Th projct attmpts to:
Chck th viability of th dalrs,
Undrstanding dalrs prcption of thir consumrs.
Undrstanding th channl profitability.
Undrstanding how a dalr can incras th Rturn on Capital mployd of TATA
Tiscon.
To rach th conclusion and bring in th suggstions, various framworks, modls and a dipstick
survy of 38 dalrs across Nashik, Than and Raigarh rgions was don in ordr to analys and
gt an ida of th whol scnario. Th study includd dtrmining th Working Capital Invstd in
TATA Tiscon and othr products by all th dalrs in th thr rgions, Spd of Sals of TATA
Tiscon and diffrnt products dalt in by th dalrs, Gross margin from th products and Rturn
on Capital mployd on TATA Tiscon and othr products. This was don in ordr to undrstand
th viability of dalrs and suggstions for th bttrmnt of th product in th markt. Th study
also includd 15 qustions to th dalrs as a dipstick survy and thn analyzing thir fdback in
th form of various paramtrs lik, Pric Snsitivity, Buying Pattrn, Push Factors, Product
Awarnss and Brand Awarnss, Prfrncs & ffct of Promotions.

Chaptr 2: Introduction & Objctiv of th Study

This projct during th Summr Intrnship Program 2015, titld as Undrstanding Dalr
conomics for TATA Tiscon dalrs in Nashik, Than and Raigarh, is an ffort to undrstand;
A. Th currnt ongoing trnds in TMT Rbars Markt,
B. Th playrs thr in,
C. Thir comparativ analysis,
D. Markt dynamics,
E. Conduct a dipstick markt survy and valuat viability of dalrs for TATA Tiscon, in
ordr to formulat a stratgy to ovrcom th challngs.
Bfor procding to th TMT Rbars and its markt, lts hav a build up by undrstanding th
significanc of stl and currnt scnario of Stl Industry. A nations conomic growth and
dvlopmnt ar drivn by two important paramtrs: Infrastructur & Industris. Stl is on of
th most ssntial commoditis much ndd for any nations infrastructural and industrial growth
and dvlopmnt. At this tim th sum total of production of stl world ovr is about 1607 MnT
pr annum.
Th following is th graph of top 5 countris by th stl production:

Russia

69.4

India

81.2

United States
Japan

87
110.6

People's Republic of China

779

Nippon
Steel &
Sumito Hebie
Arcelor mo Iron & Bao
Mittal Metals Steel Steel POSCO

Following is th list of top 5 companis by thir production of stl pr annum:

South Korea

39.9

China

42.7

China

42.8

Japan
Luxemberg

47.9
93.6

TMT Bars
History:
Th history of stl rbars gos back all th way to 18th cntury in tim. On of th first instancs
of rbars in us can b that of Carcass of th Laning Towr of Nvyansk in Russia. Th cast iron
usd for ths rbars was high quality & vn today thr is no corrosion on thm.
TMT bars ar suprior succssors of CTD (Cold Twistd Bars), which wr low on various
paramtrs lik Yild Strngth, Ultimat Tnsil Strngth tc. Thraftr TMT bars which wr
hardnd and hat tratd by Thrmo Mchanical Tratmnts cam into th markt and had a
typical valu of Yild Strngth of about 400N/mm2. Rcntly dvlopd tchnologis hav mad it
possibl for scintists and nginrs to improv th TMT bars to a Yild Strngth of
500N/mm2 plus, along with good ductility & safty faturs in us particularly in sismic aras.
Today, TMT bars ar a critical commodity in construction and a fair shar of total cost of
construction is spnt on th bars. TMT bars today ar a dfault standard for th construction of
rsidntial & commrcial structurs, flyovrs, bridgs, watr rtaining structur, industrial & powr
plants.

TMT bars and Significanc:

TMT Bars or TMT Rbar (short for rinforcing
bar), also known as rinforcing stl and
rinforcmnt stl, is a common stl bar or msh
of stl wirs commonly usd as a tnsion dvic
in rinforcd concrt and rinforcd masonry
structurs, to strngthn and hold th concrt
in comprssion. Th surfac of th rbar may b
pattrnd to form a bttr bond with th concrt.
Th word TMT is prfixd bfor bars whn th
stl bars ar hardnd & hat tratd for bttr
strngth, softr cor and dsird mchanical
proprtis through a singl procss calld as
Thrmo Mchanical Tratmnt (TMT). This
tratmnt today has bcom a common standard tratmnt to b givn to th bar during th procss
of manufacturing th bar.
TMT bars bing a stl product ar prcivd and classifid as a commodity than a wll
diffrntiatd product. Howvr diffrnt producrs kp on promoting thir bars as wll
diffrntiatd product, highlighting various standardizd procsss & latst systms thy us in
producing th TMT bars.
Th us of rbars is mainly to rinforc th concrt structur and can b dividd into primary and
scondary. Primary Rinforcmnt is to mploy stl to guarant th ncssary rsistanc
ndd by structur as a whol to support th dsign load. Scondary Rinforcmnt howvr is
known also as Distribution/Thrmal Rinforcmnt & is mployd for durability & asthtic
rasons by providing nough localizd rsistanc to limit cracking & rsist strsss causd by
ffct of tmpratur chang and shrinkag. Othr significant uss of stl rbars ar that to confr
rsistanc to concntratd load by providing nough localizd rsistanc and stiffnss for load to
sprad through a widr ara. It also holds othr stl bars in thir position to

accommodat thir loads & rinforcs masonry structur. Stl has similar cofficint of thrmal
xpansion as concrt and thus xprincs minimal strss as a rsult of diffrntial xpansion.
As w talk of TMT bars sizs, diffrnt nations and continnts spcify diffrnt sizs namly
Amrican Sizs, Canadian Sizs, uropan sizs and Australian Sizs tc.
Whn it coms to grads thn thr ar many instituts lik Amrican Socity for Tsting &
Matrials (ASTM Intrnational) tc. who dfin various grads of TMT rbars. In India, Burau of
Indian Standards is th institut that has dfind th grads for TMT rbars on th basis of Yild
Strss (typical valus) and various grads ar classifid as F 500/500D, F 550/550D, F 600 tc.

Markt Scnario:
As of FY 2014-15 in India, out of th total stl production of around about 81.2 MnT pr yar,
73.42 MnT is that of Finishd Stl Products. TMT Bars form th around 30% of th total finishd
stl products producd in th country i..; around 22.26 MnT.
In th TMT bars markt, thr xist two kinds of producrs:

Primary Producrs/ Intgratd Stl Producrs: Ths ar giant companis from th

stl industry rcognizd by Joint Plant Committ undr Ministry of Stl, who produc
stl using thir own rsourcs i.. own mins, xtract iron ors, produc iron & go on
producing first th stl through this iron and thn procss that into th finishd stl
product. Ths companis gnrally follow th highst standard of manufacturing and
comply with various norms & spcifications of stl industry. Thir production is
powrd by stat of art facilitis; standardiz procsss & world class systms in plac &
thus produc a standard product with low lvl of impuritis & high strngth and bttr
longation providing valu for mony to thir customrs. Thy dlivr a quality product in
trms of chmical composition, bond strngth, uniformity of siz & rib pattrns and
suprior arthquak rsistanc. xampls from India can b that of SAIL, TATA Stl,
JSW, ssar, RINL, Jindal Stl & Powr Ltd tc.
Scondary Producrs: Scondary producrs ar thos who buy stl from outsid in th
form of billts and pncil ingots and thn procss that stl into th nd product lik TMT
bars. Thr is uncrtainty with th quality of matrial bing usd to produc th nd product
and thr ar also qustions about th kind of procsss followd as wll as th fficincy
of th systms in plac. Unlik th primary producrs, thir product has highr lvls of
impuritis lik Sulphur and Phosphorous, low strngth and lssr longation providing lss
valu for mony to thir customrs. Th quality of th product is lowr than that of primary
producrs in trms of chmical composition, bond strngth. Thr is non- uniformity of siz
& rib pattrns and infrior arthquak rsistanc. xampls: Gol TMT, Rathi Stlmax,
Kamdhnu Ispat. Out of th total TMT bars markt of India, Primary Producrs lik SAIL,
TATA Stl, JSW, Jindal Stl & Powr Ltd tc hav markt shar of 30 -32 %. Rst 70%
markt blongs to around 300- 400 Scondary Producrs.

Ral Sctor & Significanc of TMT Bars thr in:

Ral sctor or Ral stat Sctor is gnrally dfind as proprty consisting of land and building on
it along with various natural rsourcs such as crops, minrals, watr, immovabl proprtis of this
natur, an intrstd vstd in it and itms of ral proprty building & housing in gnral.
Typs of ral stat proprtis can b as undr:
Rsidntial: Bungalows, Row Houss, Colonis, Apartmnts, indpndnt houss.
Commrcial: Businss Parks, Hotls, Malls, Rstaurants, Cinma Hall, Multiplxs, Banks,
Financial instituts, Commrcial Complx tc.
Industrial: Mill, Plants, Factoris, Manufacturing Facilitis, Workshops.
Indian Ral stat sctor is a US $ 67 Billion industry that has grown at a pac of clos to 20% in
last 10 yars, from 2005-2015. India bing on of th fastst growing conomis in th world that
looks to stablish itslf in manufacturing sctor and mov towards massiv urbanization, its ral
stat sctor is a prominnt on. Up to 100% of Forign Dirct Invstmnt is allowd in this sctor
through automatic rout. Th shortag of housing spac in urban ara in yar 2014 is stimatd to
b around 21.7 Mn units whil that in rural ara is around 19.7 Mn Units in rsidntial sgmnt. In
th commrcial and industrial sgmnt howvr for 70 Mn sq. ft dmand, th supply has bn
around 75% only. Rtail ral stat sctor is xpctd to grow at a pac of 14% in th yars to
com and has pntratd into 7.3 % of markt shar. Howvr for a supply growing at th rat of
27%, th dmand has only grown at a rat of 14% ovr th last yar, majorly du to th thn
political uncrtainty on th scns. Howvr hospitality ral stat industry has sn th dmand
grow at 15% and supply at 6%. Som of th biggst Ral stat Companis in India ar: DLF Ltd,
DB Rality, Tata Housing Dvlopmnt Company, Obroi Rality tc.
India is th svnth largst country in th world by ara whil scond largst by population. Givn
th pac of its conomic and population growth, as th land bcoms mor and mor a scarc
rsourc by vry passing day, it calls for a bttr and biggr nginring structur and dsign in
th ral stat sctor, not only to accommodat popl but also to prsist with th pac of
infrastructural dvlopmnt. As building and its structur grows vrtically, mor & mor support is
ndd from th foundation all th way up to th top floor through various columns and walls. Th
floors & roofs at multistory buildings ar also hld togthr and supportd by th stl bars. This is
whr th quality of TMT rbars gts vry critical.

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Chaptr 3: Distribution Modls

What is a distribution modl?
Th mannr in which goods mov from th manufacturr to th outlt whr th consumr
purchass thm; in som marktplacs, it's a vry complx channl, including distributors,
wholsalr, jobbrs and brokrs
TATA Tiscons Distribution Modl:
Th convntional distribution modl has thr lvls: th producr, th wholsalr and th
rtailr. This is a tim-tstd systm with many wll-stablishd mmbrs at all lvls.
Th convntional distribution modl, howvr, calls for all partis in th channl to protct
thir own bst intrsts. Thus, rtailrs ar pittd against wholsalrs, and wholsalrs try to
bst producrs. This wb of conflicting intrsts somtims works to th dtrimnt of th ntir
systm. For instanc, a producr may try to bypass th wholsalr and go straight to rtailrs,
prompting th wholsalr to rtaliat by dropping th producr's products.
Thr ar many ways to modify traditional distribution.
TATA Tiscon uss a thr-lvl distribution framwork by Manufacturrs slling to th
rtailrs through th distributors.
TATA Stl Ltd

Distributors

Dalrs (Rtailrs)
Th company srvs a wid varity of consumrs, ranging from rputd contractors to rtail
usrs from th privat sctor organisation to th public sctor undrtakings. Ths consumrs
can b classifid into 3 major groups:
1) Govrnmnt
2) Rtailr (B TO C)
3) Privat sctor consumrs (B TO B)
To catr to th nds of all its consumrs, th company dos both (B to B slling) and rtail
outlts (B to C slling). Bulk ordrs com undr dirct slling and small ordr from rtail
outlts.

11

This projcts aims at studying th rtail markt of TMT bars and idntifying challngs and
viability of rtailrs by calculating and comparing th Rturn on Capital mployd of ach and
vry dalr and aggrgating it for Nashik, Than and Raigarh. Furthr, w look to provid
rcommndations to form a stratgy to ovrcom any challngs on th basis of qualitativ
analysis of a total of 38 rsponss to th Markt Rsarch Survy conductd through a
qustionnair containing 17 spcific quantitativ and qualitativ qustions across th dalrs
through mans of prsonal visits. In th nd, th fdback of th dalrs has bn analyzd on
th basis of fiv qualitativ paramtrs of Pric Snsitivity, Buying Pattrn, Push Factors,
Product Awarnss and Brand Awarnss, Prfrncs & ffct of Promotions.

12

Chaptr 4: Brif Dscription of th Concpts/Modls Introducd in th

Study
Th projct work uss various concpt and modls from th world of markting. Various
framworks of markting lik 7 Ps and 9 Cs hav bn applid to th product in hand to
undrstand th various opportunitis xisting, choics availabl and th actions that can b
takn rspctivly in ordr to formulat an ffctiv markting stratgy as to hlp th sal of
TMT bars for rtailrs and incras thir viability. Th projct uss framwork of 9 Cs to
undrstand th mindst of customrs of TATA Tiscon from th dalrs prspctiv, and th
srvics providd by th dalrs. Towards th backnd of th projct w ar to us various
paramtrs lik Pric Snsitivity, Buying Pattrn, Push Factors, Product Awarnss, and Brand
Awarnss, Prfrncs & ffct of Promotions, whos data had bn collctd as mdium of
Qualitativ Suurvy as a back up to th framwork of 9 Cs.
Hr is th brif introduction to th abov mntiond concpts and modls as undr:

1. 7 Ps (Framwork of Action):
Th back bon of a markting stratgy is th kind of markting mix it has that is its
crucial to dtrmin th products or brands offr. This aspct of markting is
gnrally associatd with 4 Ps for a product and is xtndd up to 7 Ps for srvics.
Hr is th 7 Ps framwork applid to th product kping in mind th valu addd
srvics on offr alongsid:
A. Product: An itm that satisfis a customrs dmands. It can b a tangibl good
or intangibl srvic or a combination of both.
B. Pric: It is th sum of mony that customr pays to gt a product or srvic.
Pricing in Indian markt is always a crucial factor as a company would though lik
to nsur an optimum profit margin but has to pric thir product to suit th pric
snsitiv Indian markt.
C. Plac: Rfrs to th distribution channls through which th customrs ar
providd th product and srvics. It may compris of xclusiv, non-xclusiv
authorizd dalrs, company ownd outlts tc.
D. Promotion: Promotions rfrs to th mthod of communication through
which company lts its customrs know about its offrings. It hlps in raising
customr awarnss of a product or brand, and crating brand loyalty hlp th sals.
E. Popl: Popl forms th first of th othr thr Ps mor rlvant in
srvic markting. It is th dfining factor particularly in th srvics as srvics
ar providd through th popl. This maks th xprinc of srvics
insparabl from th popl who provid it.
F. Procss: Th procsss bcom crucial as it nsurs that sam standard and
quality of srvics ar rpatdly dlivrd to th customrs. Thrfor its a must
for vry company to hav bluprint of its srvic dlivry procss which must b
wll known to vry prson associatd with this procss.
G. Physical vidncs: It is th tangibl lmnt incorporatd with th
intangibl srvics. For xampl a salon provids nwspaprs, magazins and plush
sofas for its customrs whil thy wait thir turn.

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2. 9 Cs of Dalr-Customr Rlationship:
This framwork tlls us how an organization rtains th clint it has srvd. It gts
important, kping in mind th institutional customrs. Dscribd as undr:
A. Communication: Communicating with th clint or th customrs on a rgular
basis through various mans lik tlphon, mail, SMS, nwslttrs, social ntworks
tc. is a must in this ag of information and modrn communication.
B. Convninc: Clint must b srvd as pr thir convninc. Th tim and plac
of srvic dlivry must b as pr customrs liking.
C. Choic: A wid varity and a rang of choic givn to th customrs, always hlps
th sal of a product. Th srvics must b dsignd as pr th customrs nds.
D. Consistncy: Consistncy in th quality of products or srvics providd to th
clint hlp crating a nam and rput for an organizations offrings. Th
consistncy can b masurd in trms of tim and quality.
E. Confidnc: Authoritativ knowldg, sns of profssionalism and prformanc
ar th thr pillars of confidnc imbibd in th customrs by a srvic providr. It
givs thm a fl that thir vndor undrstands thir problms thoroughly and has a
solution for th sam.
F. Car: A profitabl rlationship is basd upon th kind of car a company shows for
its clints. It is not only important to show gnuin car for th clint but it is dually
important that clints fl that you car for thm.
G. Control: It is of utmost importanc that a company kps th numbr of complaints
low and kps th clint happy. It should hav zro tolranc for th intrnal issus
and minimum tolranc towards th xtrnal factors impacting th businss.
H. Commitmnt: Th biggst strngth of businss units that hav volvd ovr th
yars is not thir rsourcs or facilitis thy ar quippd with. It in fact lis in th
kind of commitmnt thy hav shown to dlivr th bst of thir srvics to th
customrs ovr th yars.
I. Cancllation: Cancllation of an ordr on any givn day in any scnario is a hug
stback to a company spcially if its big playr known for its standards and
qualitis. spcially it taks a big toll on your imag amongst th Institutional
customrs who ovr th yars hav associatd quality with you. Th abov 8 Cs
whn takn car of prvnt th occurrnc of this inauspicious C that stands for
cancllation.

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3. Rsarch Mthodology:
Rsarch is a procss of nquiry and invstigation of facts in a Systmatic,
Mthodical and thical way in ordr to solv som practical problms or incrasing
knowldg. Hr in this projct a combination of various kinds of rsarchs lik
Dscriptiv, Analytical & Prdictiv rsarch has bn usd to larn about mor th
quantitativ and qualitativ aspcts of th industry.
Dscriptiv Rsarch is a rsarch conductd to larn about various lmnts and
charactristics of th subjct. Analytical Rsarch is oftn an xtnsion of th
dscriptiv approach in ordr to know as to why or how somthing is happning on th
scns. Prdictiv Rsarch on th othr hand is conductd to gain knowldg to
prdict or spculat about a futur possibility intlligntly.
Th rsarch had both Primary and Scondary aspcts to it. Primary rsarch is a
rsarch prformd by collcting th original primary data about a subjct. It is oftn
undrtakn aftr rsarchr has gaind som knowldg of th issus by rviwing th
Scondary Rsarch which involvs th summary, collation and/or synthsis of xisting
rsarch rathr than primary rsarch, whr data is collctd from, for xampl,
rsarch subjcts or xprimnts conductd for som othr purpos. Th data gathrd
has bn analyzd quantitativly to figur out th viability of th dalrs of TATA
Tiscon and ways to improv furthr by calculating th Working Capital Invstd,
Spd of Sals, Margins for Diffrnt Products and Rturn on Capital mployd; and
qualitativly to undrstand th attitud of th customrs, thir prcptions, valus
of th markt and critria through which customrs slct givn product of a brand by
analyzing thm ovr fiv diffrnt critria of Pric Snsitivity, Buying Pattrn, Push
Factors, Product Awarnss and Brand Awarnss, Prfrncs & ffct of
Promotions.

Qualitativ
Pric Snsitivity:
It is th dgr to which th pric of a product affcts consumrs purchasing bhaviors.
It varis from on product to anothr and consumr to consumr.

Buying Pattrn:
It is th basic componnt of Consumr Bhavior and is dfind as th mannr in which
a consumr buys th product i.. how a consumr slcts, scurs, and disposs a
product srvic or an xprinc.

Push Factors:
It is th st of factors involvd in crating a push for product in th markt. That is
various promotional campaigns run by sllr, th influnc of thir collaborators i..
distributors, dalrs and various profssionals associatd with th company which hlp
push th information about companys product on to th customrs.

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Product Awarnss:
In th contxt of th projct this is dfind as th knowldg of th customrs about th
cor offring i.. th product and various faturs through which th product is
adjudgd, slctd and bought.

Brand Awarnss, Prfrncs & ffct of Promotion: Brand awarnss

is th xtnt to which a brand is rcognizd by potntial customrs, and is corrctly
associatd with a particular product. It is th primary goal of advrtismnt in th arly
months or yars of product launch.
Brand Prfrnc on th othr hand; tll us that which brands ar prfrrd undr
assumptions of quality in pric and availability and givn that th products
from diffrnt brands hav mor or lss th similar faturs.
ffct of Promotions is dfind as th dgr to which raising customr awarnss of a
product or brand, and crating brand loyalty hlp its sals. This can b in form of
advrtismnts, Sals promotions, dirct markting, publicity, prsonal markting or
spcial offrs and complmntary srvics.

16

Chaptr 5: Company Analysis: TATA Stl Ltd

stablishd in 1907 as Asia's first intgratd privat sctor stl company, Tata Stl Group is
among th top-tn global stl companis with an annual crud stl capacity of ovr 29
million tonns pr annum. It is now th world's scond-most gographically-divrsifid stl
producr, with oprations in 26 countris and a commrcial prsnc in ovr 50 countris. Th
Tata Stl Group, with a turnovr of Rs.1,48,614 crors in FY 14, has ovr 80,000 mploys
across fiv continnts and is a Fortun 500 company.
Tata Stls largr production facilitis compris thos in India, th UK, th Nthrlands,
Thailand, Singapor, China and Australia. Oprating companis within th Group includ
Tata Stl Limitd (India), Tata Stl urop Limitd (formrly Corus), Tata Stl Singapor
and Tata Stl Thailand.
Th Tata Stl Groups vision is to b th worlds stl industry bnchmark in Valu
Cration and Corporat Citiznship through th xcllnc of its popl, its innovativ
approach and ovrall conduct. Undrpinning this vision is a prformanc cultur committd to
aspiration targts, safty and social rsponsibility, continuous improvmnt, opnnss and
transparncy.
In 2008, Tata Stl India bcam th first intgratd stl plant in th world, outsid Japan, to
b awardd th Dming Application Priz 2008 for xcllnc in Total Quality Managmnt.
In 2012, Tata Stl bcam th first intgratd stl company in th world, outsid Japan, to
win th Dming Grand Priz 2012 institutd by th Japans Union of Scintists and
nginrs.
Th company in its corporat arm has as many as 8 dpartmnts that work in intgration with
ach othr;
Financ
Human Rsourcs
Sals & Markting
Stratgis
Logistics
Contract and Procurmnt
Intrnal Audit
Civil Constructions
Sals & Markting dpartmnt works to promot TSL offrings, products and srvics in both
institutional and B2C rtail sgmnts. Thy ar allocatd thir budgts and rsourcs by th
financ dpartmnt, providd th guidlins for thir activitis and talnt bas from Human
Rsourcs dpt., stratgiz as pr th plans of Stratgis dpt. to fit organization plans. Thy
also work in collaboration with dpt. lik Logistic to nsur th distribution and movmnt of
matrial and products to and fro company and clints. Thy promot th srvics of th
company in th sgmnt of institutional customrs to hlp Contract & Procurmnt dpt. win
contracts for Civil Construction. Thir collaboration with intrnal audit is vital to improv th
organizational valu chain.

17

Hr ar th aformntiond concpts, modls and framwork as thy find thir application to th

Rtail Markt of th brand, TATA Tiscon.

1. 7Ps (Framwork of Action):

Whil th product in focus hr is prcivd mor as a commodity than a wll
diffrntiatd product, producrs howvr, primary in particular, diffr in thir stratgy to
position TMT bars and prfr projcting it with th valu addd srvics complmnting
th cor product. Thus it maks sns to apply a framwork of action hr which can also
covr for th srvics on offr.

A. Product:
Th product in qustion is th TMT Bar, of brand TATA Tiscon. Its a finishd product
that coms undr Long Products and th typ is Rbar. Its principal nd usag is to
provid structural support in construction. Long Products sold by TSLs Indian
oprations ar sold principally to th Indian
Long
construction and automotiv industris.
Produc
In India, TATA Stls total production is of
ts
9.7MnT. Out of this, 4.3MnT is th production
31%
Other
of th Long Products. Including in 4.3MnT is
produc
ts
Rebar
1.3MnT for th Rbar Rtail Markt.
56%

Th 1.3MnT (13%) production for th Rbar

Rtail Markt is furthr distributd in all th four dirctions across India.

South
22%

Sinc this projct is mainly focusing on th

dalrs of Maharashtra, w ar intrstd in th
9% which compriss of Wst.

West
9%

Furthrmor, th Wst is thn distributd

btwn Gujarat, Maharashtra, Madhya Pradsh
and Chhattisgarh. Maharashtra compriss of
52% of th total production in th Wst.

East
46%

North
23%

Retail
13%

North - 288 KT
South - 278 KT
ast - 566KT
Wst - 108 KT

Gujarat
25%

Maharas
htra
52%

Madhya
Pradesh
16%

Chhattisg
arh
7%

G - 2.4K
M - 5K
MP - 1.6K
C - 0.7K

18

B. Pric:
Th pricing stratgy adoptd by TATA Stl for TATA Tiscon, is th Markt
Pntration Stratgy. This stratgy is basd on th assumption that dmands for th
product is highly lastic. By stting rlativly low pric in comparison to th primary
comptitors, TATA Stl has managd to obtain larg markt shar. Th advantag of
this kind of pricing is that it discourags comptition sinc thr is lss opportunity to
rap unusual bnfits on invstmnts. Sinc TATA Stl is in control of larg iron or
dposits, it has incrasd its capacity manifold and so njoys conomis of scal.
Th dalrs sll TATA Tiscon TMT bars commanding 20% of pric prmium. Thy
sll on RCP (Rcommndd Consumr Pric), to avoid fluctuating prics that is
gnrally th cas with scondary producrs.

C. Plac:
Tata Tiscon, th rbar brand from Tata Stl, a prominnt ISP, controls about 14% of
th markt. This is a commndabl achivmnt; mor notabl in viw of th fact that
th construction industry is a highly pric-snsitiv businss whr scors of lssr
pricd brands of scondary producrs jostl for th buyrs attntion.
Th brand slls through an stablishd ntwork of 31 distributors and 1700 dalrs
across India. Almost a third of its sals manat from xclusiv countrs.

D. Promotion:
Th dalrs of TATA Tiscon promots th brand through convntional and nonconvntional mans. Thy us wall paintings, hoardings, promotional bills along with
onlin promotions through Facbook pag and group, twittr account and vidos on
lctronic mdia.

E. Popl:
In this sction w focus on customrs and th srvics providd to thm. Th customrs
of TATA Tiscon ar providd with svral attractiv srvics lik
Fr Hom Dlivry
Slling by Pic vry TATA Tiscon rbar is sold in a standard lngth of 12
mtrs, thrby rmoving th hassl of wighmnt.
TATA Tiscon rbars ar sold products only on Company Rcommndd
Consumr Pric, this hlps th consumrs to trust th dalrs on not charging
xtra amount.
Thr ar uniqu brandd showrooms for th consumrs calld th xprinc
Zons. An xprinc Zon would sll stl in a nw way, allowing consumrs
to actually gt a fl of th product and th baskt of srvics availabl from th
outlt. Th xprinc Zons would also provid xprt advic and information
rlatd to th product, providing not only customrs with th product but also
much ndd support and hlp. This is xpctd to incras companys shlf
spac and hlp it ducat th customr about its product and products
criticalitis. Th outlts ar gnrally in th placs wll accssibl for th
buyrs.

19

F. Procss:
Th dalrs of a crtain ara contact th sals officrs of that ara to ordr th
invntory. Th distributors thn gt notifid from th sals officrs of th ordrd
quantity & spcifications and aftr chcking for th availability of th ndd stock in
thir warhous, thy dispatch th stock to th dalrs and unload th stock at th
dalrs warhous. On an avrag a dalr is providd with 20 days of crdit to pay
for th ordr. Th dalr thn slls th stock to consumrs at RCP, provids with fr
hom dlivry and on an avrag provids consumrs with 20-30 days of crdit.

G. Physical vidncs:
Th vidnc to th abov findings is th data collctd from th dalrs on a slf- visit
basis, and th customrs tstimony aftr buying th product.

2. 9 Cs of Dalr-Customr Rlationship:
This framwork tlls us about how a dalr trats his customrs and th srvics that ar
providd to thm to build th bond and loyalty. It gts important, kping in mind th
institutional customrs.

A. Communication:
Th dalrs of TATA Tiscon ar asily availabl to th customrs. Sinc th majority
of th customrs ar rgional, th dalrs communicat to th customrs in th rgional
languag. This provids comfort to th customrs and thr ar no languag barrirs. A
customr can communicat to th dalrs through Calls, Mssags, -mails or othr
applications lik Whatsapp. If thr is a complain about th dalr or th product, th
distributor provids with a toll fr customr car numbr on th wbsits for th
customrs.

B. Convninc:
Th dalrs of TATA Tiscon rbars, provid convninc to customrs whrvr thy
can. First of all, sinc TATA Tiscon has ampl numbr of dalrs availabl, thy ar
asily availabl for th customrs. TATA Tiscon customrs ar providd with fr
hom dlivry and list of rputd masons for a smooth xprinc. Sinc th Bars ar
sold at RCP and at a standard 12m lngth, thr ar lss hassls of pric fluctuations
and wighmnt.

C. Choic:
A wid rang of grads & sizs and shap of rbars customizd to clints liking and
nds ar a fw things that talk about th kind of choics givn by th dalrs to th
customrs.

D. Consistncy:
Thrs consistncy providd to th customrs in th form of dalrs always having th
rquird stock in hand. Th quality of bars and valu addd srvics offrd by th
dalrs to th customrs of Tiscon ar not sasonal and has provd itslf ovr th yars.

E. Confidnc:
Th brand and its rput is nough for th customrs to rly upon, but th addd on
srvics and trust by th dalrs has hlpd th customrs to b confidnt in daling

20

with th rtailrs for TATA Tiscon. Svral factors lik, Slling on RCP, Suprior
Quality, Communication with th dalrs, asy availability of dalrs, tctra, all add
up to building th confidnc of th customrs towards TATA Tiscon.

F. Car:
A widsprad ntwork of dalrs and distributors nabls th distributor and th
company to rach to th customrs at th hour ndd. This also hlps to provid thm
propr customr car as and whn ndd. Customrs hav th option to connct with
th distributor or company through mail id and toll fr numbrs xclusivly providd
to srv th customrs bttr and support thm. On can dirctly gt connctd with
MD and Group CO and also book thir ordrs onlin.

G. Control:
With adquat facility of transportation, workforc and warhous, th dalrs hav a
strong control ovr thir businss. Thr ar survys takn plac by th company and
th distributors vry now and thn to nsur control of th dalrs ovr th markt and
th comptitors.

H. Commitmnt:
Th dalrs show commitmnt to dal in TATA Tiscon than any othr brand bcaus
of th margin, rturn on capital mployd and th schms providd to thm by th
distributor and th company. Th customrs ar also providd with various srvics so
as to mak thm committd towards th brand and it has shown ovr th yars with
TATA Tiscon grabbing 14% of th markt shar. Th dalrs, distributors and th
company, all aim to provid th customrs with th bst valu for mony.

I. Cancllation:
To nsur that no or rar cas of cancllation taks plac, th abov 8 Cs of dalrcustomr rlation ar followd by th dalrs. Cancllation can b a hug stback for
th dalrs and its th sam for th customrs. Th dalrs, with adquat rsourcs in
hand, hav rar cass of cancllation for th customr or by th customr.

3. Rsarch:
Th rsarch was conductd on both Primary and Scondary basis by th mans of
product brochurs mad availabl by th company, various contnt articls on th wb
and rfrring to th matrial prtaining to ral stat sctor, stl industry, TMT bars
markt. Furthr a Markt Rsarch Survy was don across 38 outlts through prsonal
visits, undr th distributor, Indu Corp, across Nashik, Than and Raigarh using a
qustionnair containing 17 spcific qustions jumbld togthr to crat an aggrgat
flow. This qustionnair gathrd rsponss, through which th Rturn on Capital
mployd has bn calculatd for ach and vry dalr for ach and vry product dalt
in and th aggrgat of ach product for ach ara has bn calculatd for comparison.
Qualitativ analysis of th fdback and suggstions by th dalrs as a back up vidnc
for th abov framworks on aformntiond paramtrs has bn don on th sction
aftr.

21

A. Dalr conomics
Working Capital Invstmnt:
Working capital is th amount of liquid assts which an organization has at hand. Working capital
invstmnts ar rquird to pay for unxpctd and plannd xpnss, to build a businss and mt
th businsss short-trm dutis and obligations. Working capital invstmnt is th amount of
mony you rquir to xpand your businss, mt short-trm businss rsponsibilitis and covr
businss xpnss.
Th working capital invstmnt mad in TATA Tiscon by dalrs of Nashik, Than and Raigarh:

Working Capital Invstd in ach

Product in a Month pr Dalr
Nashik

Thane

Raigarh

512997

39400 67145
19760
TATA Tiscon

76389

37689

Local TMT

48856 45283 30690

Cement

In th graph, w can s that th Working capital invstd by dalr in TATA Tiscon ovr a
month, is highst in th Than rgion and lowst in Raigarh. Th dalrs in Raigarh invst th
lowst amount of capital in TATA Tiscon in comparison to any othr product.
Th Working Capital Invstd in Local TMT is highst for th Than rgion, Rs. 5,12,996. This
mans that th dalrs from Than district prfr invsting mo on Local TMT than any othr
product.

22

Spd of Sals:
Sals vlocity (or sals spd) is an important indicator on th halth of your sals capabilitis. A
highr sals vlocity (assuming othr factors as constant), hlps in th following mannr:
Intrst of a prospct OR a lad is a highly prishabl matrial.
Making th bst us of sasonality OR sals campaign.
Fastr rturn on sals xpnss.
Mor prdictability of sals.
Th spd of sals or th Sals Vlocity for th thr products, for th rgions ar hr undr:
(Tim takn by th avrag dalr to sll 1 truck, 9 Tonns, of matrial.

Spd of Sals in Days

Nashik
30

Thane

Raigarh

33

30

27

26

25

23

14
10

TATA Tiscon

Local TMT

Cement

In this graph w can s that TATA Tiscons spd of sals is ranging from 27 33 days
across all th dalrs of th thr rgions. It is showing a pattrn of 3 days hr and thr.
Sinc TATA Tiscon is comparativly having lowr spd of sals as compard to th othr
two products, w can assum that th dalrs of TATA Tiscon hav slowr rturn on sals
xpnss and lss prdictability of sals.
Local TMT on th othr hand has quit a fluctuating sals vlocity and its difficult to
dtrmin th pattrn. Though Local TMT has th highst spd of sals, Raigarh (10
days), its not th sam in Than (25 days).
Cmnt has a comparativly stady spd of sals to Local TMT. Though th spd of
sals is slow, w can assum that thr ar slowr rturns on sals xpnss and lss
prdictability
of
sals

23

Gross Margins from Diffrnt Products:

Th purpos of margins is to dtrmin th valu of incrmntal sals, and to guid pricing and
promotion dcision.
Margin on sals rprsnts a ky factor bhind many of th most fundamntal businss
considrations, including budgts and forcasts. All managrs should, and gnrally do, know
thir approximat businss margins. Managrs diffr widly, howvr, in th assumptions thy
us in calculating margins and in th ways thy analyz and communicat ths important
figurs.
Th gross margins from TATA Tiscon, Local TMT and Cmnt for Nashik, Than and
Raigarh:

Gross
Margins on Diffrnt Products in %
Nashik

3.26

3.26

Thane

3.72

3.26
2.65

TATA Tiscon

Raigarh
4.14
3.63

3.51

2.80

Local TMT

Cement

From th abov graph w can s that, sinc TATA Tiscon prics its product on RCP, and
according to pr pic, thr is a static margin of 3.26%, for th dalrs across th thr
rgions. Hnc th risk whil daling in TATA Tiscon is low. Th budgt and forcast could
b asily dtrmind.
Whras, th TMT bars from scondary producrs is sold at a pric pr kg basis which is not
fixd. Hnc w can s that thr ar fluctuations in th margin in all th thr rgions,
highst bing in Raigarh. This can b risky for th dalrs as thy wont b abl to dtrmin
th budgt and do th accurat forcast for th futur.
Cmnt howvr, is lss fluctuating than th TMT from th scondary producrs. Th margin
basically rangs from 3.5% to 4.2%, which is not as risky to b dalt in as th Local TMT.

24

Rturn on Capital mployd:

Rturn on Capital mployd xamins how fficintly a company uss availabl capital.
ROC is vry usful whn it coms to comparing th us of capital by diffrnt ntrpriss
or companis ngagd in th sam businss, particularly in rgard to capital intnsiv
industris.
Th thumb rul of ROC is, ROC of 20% or mor is considrd to b vry good.
Givn blow is th avrag rturn on capital mployd of ach dalr of Nashik, Than and
Raigarh.

Rturn on Capital mployd in %

Nashik

Thane

Raigarh
60%

57%
46%

48%

49%

36%
22%

18%
9%

TATA Tiscon

Local TMT

Cement

From th abov graph w can s that TATA Tiscon has Lowst ROC in compard to
both th othr products. This provs that th dalrs of TATA Tiscon us thir capital not
as fficintly as th othr two products.
Local TMT on th othr hand has a comparativly lowr ROC than Cmnt, but highr
than TATA Tiscon in all th thr rgions. Thrs bttr utilization of capital in cas of
Local TMT.
Cmnt also has ROC low in comparison to TATA Tiscon.
As th thumb rul of ROC is that an ROC of 20% or mor is good, all th thr products
suffic to do wll in trms of ROC.

25

B. Dalrs Prcption of thir Customrs

This survy hlps us in undrstanding th customrs prcption about th product, TATA
Tiscon or any othr brand of a Primary Producr from th Dalrs point of viw. This is to
find what th dalr thinks about th various factors and critria that affcts th customrs
will to purchas th product and whthr is awar of thir wants and prfrncs. Th
Tabulations and Findings to support this tabl has bn providd in th Appndix.
Critria

Dalrs Prcption of thir Consumrs

Pric

Consumrs ar pric snsitiv.

Pric plays an important rol for th
Individual Buyrs.

Quality

Quality is a factor mainly for th Institutional

Buyrs.

Main factors that influnc Customrs to buy

Brand nam, Pric and Profssional

Suggstions (nginrs, Architcts)

Th attribut of th product that attracts Colour, Txtur and Surfac Quality.

customrs
Th customrs ar lss awar of th
mchanical and chmical proprtis.
Do promotions influnc customrs to buy

Ys, tim to tim promotional activitis do

play a vital rol.

Which sgmnt of customrs ar majority

Individual Buyrs (Contractors)

Most prfrrd brand in th markt

TATA Tiscon

26

Chaptr 6: Intrprtation & Conclusion

Through th quantitativ analysis of th survy w cam to know that th viability of th
dalrs of TATA Tiscon in comparison to th TMT bars of scondary producrs is lowr.
This can b intrprtd bcaus,
Th working capital invstd in TATA Tiscon ovr a month pr dalr is quit lss
than that invstd in th Local TMT and cmnt.
This mans that th dalrs of TATA Tiscon hav rlativly lss to pay for
unxpctd and plannd xpnss, and mt th businsss short-trm dutis and
obligations.
Th spd of sals of TATA Tiscon is th lowst as compard to th local TMT and
cmnt in all th thr rgions.
This mans that,
1. Dmand for TATA Tiscon is low in comparison to th brands of scondary
producrs
2. W ar not making th bst us of sals campaign.
3. Thr is a slowr rturn on sals xpnss.
4. Lss prdictability of sals.
Lss Rturn on Capital mployd as compard to Local TMT and Cmnt in all th
thr rgions. vn though th Gross margin on TATA Tiscon is good in
comparison to both th othr products, th ROC is th lowst. This happns
bcaus,
1. Th dalr is allowing too much crdit to th customrs
2. Th dalr kps svral days of invntory with him, incrasing th invntory
cost.
3. Th spd of sals is slow.
4. Th ovrhad xpnss ar high.
Th gross margin of TATA Tiscon dalrs is static to 3.26%, which is highr than
that of local TMT in two aras, Nashik and Than.
This mans that if th dalrs start gtting highr Rturns on Capital mployd on
TATA Tiscon, daling in this brand would b much mor bnficial for thm than th
brands of Scondary Producrs.
Through th qualitativ analysis of th survy w cam to know th mind-st of th dalrs
to what th customrs wants and prfrncs ar.
Thr is a hug diffrnc btwn th buying bhavior of Institutional and Individual
customrs. Whil Institutional Customrs lik Govt. Agncis, Ral stat Dvloprs,
Colonizrs in thir projcts hav to adhr to various norms standards and spcifications
issud by various authoritis, thy go for a much sought aftr solution providd by th
primary producrs and thus buy from thm to nsur th quality of TMT bars and to obtain
a standardizd product. On th othr hand as th Individual Customrs hav poor awarnss
as to th mchanical and chmical proprtis of th product that adds up to its quality,
although at tims as pr th survy, thy hav th knowldg about various brands of
primary producrs, thy compromis upon quality and buy a chapr product from
Scondary Producrs to sav mony as th markt of TMT bars is highly pric snsitiv.
Th dalrs bliv that by conducting svral promotional activitis and nlightning th
customrs through profssionals suggstions, th brand TATA Tiscon will fac bttrmnt
in th markt.

27

Chaptr 7: Rcommndation
To incras th viability of th dalrs and incras channl profitability,

Managing TATA Tiscon invntory fficintly that is to maintain stock of 15-20

days only
Rduc th numbr of crdit priod offrd to th consumrs by th dalrs
Th distributors should constantly monitor dalrs' businss halth
Th distributors should hav monthly and quartrly rviws with th dalrs
Monitoring ntwork xpansion appoint nw dalrs only aftr having prior
discussion with xisting dalrs and offr xisting dalr to xpand first.
Offring viability support during businss slowdown lik incrasing sals margins,
and,
Offr crdit for 28 or 30 days and supporting manpowr cost.
Aggrssiv promotional activitis should b hld to radicat th comptition from
th Scondary Brands.
Assign profssionals to ducat th customrs and provid thm with suggstions
for th purchas.
Command a bit lowr prmium so as to crat a dribbl in th sa.

Whil an upturn in businss cycl will positivly impact on ntwork profitability, structural
changs hav a long trm impact on ntwork viability. Ths solutions apart from hlping
dalrs profitability will also bnfit in building committd businss partnrs whn growth
rturns. Just by managing invntory fficintly, dalrs can gain a lot of margin, and if all
th four stps ar implmntd by th Company or th Distributor, th margins of dalrs of
could asily doubl

28

Chaptr 8: Limitations of Study

Th projct work is limitd in natur by th following constraints:

Limitd Tim.

Small howvr normalizd sampl siz of 38 rsponss.

Th primary rsarch on th basis of prsonal visits was gographically limitd to

th dalrs of Nashik, Than and Raigarh rgions.

Limitd information availabl about th comptitors.

Du to th survy bing a dipstick survy, th projct work could not go dp.

29

Chaptr 9: Appndics
Qualitativ (Qustions askd to dalrs and th Sals officrs)
1. Pric Snsitivity:
A. Dos buying TMT Rbars from primary producrs incras th cost of construction?
As w can s, 74% (28) dalrs
agr that Primary TMT bars incrass
th cost of construction. This is
bcaus, Th TMT from Primary
producrs command highr prmium
as compard to th Scondary
producrs.

5%
21%
Yes

74%

No
Can't Say

B. Is pric a big factor affcting th purchas dcisions?

97% (37) dalrs agr that pric is
a big factor affcting th purchas
dcisions. This is bcaus, majority
of th customrs that com to th
dalrs ar th contractors and not
individual or prsonal hom
buildrs. Th contractors ar pric
conscious, whil individual hom
buildrs ar quality conscious.

Yes
0%

No

Can't Say

3%

97%

C. Which rbar is most prfrrd?

71% (27) dalrs bliv that
TMT bars manufacturd by
scondary producrs, is most
prfrrd. This could b bcaus
of, lss awarnss of th quality
products by primary producrs,
pric
conscious
customrs,
tctra.

Manufactured by Primary Producers

Manufactured by Secondary Producers

29%
71%

30

2. Buying Pattrn:
A. Ar th buying bhavior of individual buyr and institutional buyr diffrnt?
95% (36) dalrs say that thr is
a diffrnc btwn th buying
bhavior of individual buyr and
institutional
buyr.
Th
diffrnc mainly is that th
Individual Buyr ar mor
inclind towards th pric of th
TMT bars, whil Institutional
buyrs ar mor inclind towards
th Quality of th product.

Yes

No

Can't Say

5%

0%

95%

B. Who buys TMT rbars mor oftn from primary producrs?

Institutional Customers

79% (30) dalrs bliv

that institutional customrs
buy TMT rbars from
primary producrs much
mor oftn than individual
customrs.

Individual Customers (Contractor)

Can't Say
0%
21%

79%

C. Who buys th TMT rbars from th shops?

57% (36) dalrs say that Individual hous

ownrs buy TMT rbars from th shops. This
is bcaus thy ar quality conscious and

Others

2%

Masons

3%

Individual

17%

Individual House
Constructors &

57%
21%

31

want bst quality at bst pric with suprior srvics.

3. Push Factors:
A. Whos suggstions mattrs th most to driv th TMT rbars purchas?

As w can s, th majority of th dalrs

say that Profssionals Suggstions, lik
nginrs, architcts, Dsignrs, mattrs th
most to driv th TMT rbar purchas. This
is bcaus ths ar th popl th customrs
can trust asily and hav confidnc on thir
suggstions.

Others

1%

Suggestions by the

11%

Relative/Friend

16%

Past Experience

15%

Professionals'

31%

Masons' Suggestions

4%

Contractors'

23%

B. What is that critria(s) through which a customr slcts a givn brand of TMT
rbars?

Brand Nam plays an important factor for

th customr to slct th brand of TMT.
This is bcaus, a rputd brand nam lik,
TATA Tiscon can always b trustd with th
quality in comparison to th othr brands of
th Scondary Producrs.

Other

2%

Relatives/Friends

8%

Masons

2%

Contractors

15%

Professionals

22%

Price

23%

Brand Name

27%

C. Is th suggstion of dalrs an important paramtr driving th sals of TMT rbars?

50% (19) Dalrs say that dalr

rcommndation
is
an
important
paramtr for th driv of sals. This is
bcaus, th dalrs would trust anothr
dalr in trms of suggstions and
comptition in th markt. Th dalrs
play an important rol in dtrmining th
markt of a spcific product.

Yes

No

Can't Say

8%

50%
42%

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4. Product Awarnss:
A. Which grad of rbar is gnrally prfrrd?

86% of th dalrs say that F

500/500D is th most prfrrd rbar.
This mans that th customrs ar
awar of its supriority and quality
ovr th othr grads of rbars.

Fe 600
Fe 550/550D

0%
5%

Fe 500/500D
Fe 415/415D

86%
9%

B. What attributs affct th purchas dcision of consumrs?

68% of th dalrs bliv that th
Other
purchas dcision of th consumrs is
most affctd by th Color, Txtur & Chemical Properties
Surfac Quality of Rbars, and thn th
Mechanical
Mchanical Proprtis wr lookd up
Properties
to. This might b bcaus of lack of
Color, Texture &
awarnss to th consumrs on th
Surface
Quality of
various othr attributs lik Mchanical
Proprtis and Chmical Proprtis.
Th initiativ should b takn on
gtting th customrs awar about ths attributs.

8%
10%
14%
68%

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5. Brand Awarnss, Prfrnc & ffcts of Promotions:

A. Is choosing corrct brand of TMT rbars, a gnuin concrn whil construction?

Yes

95% (36) dalrs confirm that

choosing corrct brand of TMT
rbars is a gnuin concrn whil
construction. Hnc, th customrs
should b mad mor awar about th
quality, spcifications and uniqunss
of TATA Tiscon as knowing which
brand th customrs ar opting for is
a concrn.

No

Can't Say
0%

5%

95%

B. Is promotion through various mans a factor in driving th purchas dcisions of

TMT rbars?
Yes

86% (33) dalrs fl that promotion

through various mans is a factor in
driving th purchas dcisions of TMT
rbars. This is a fact as th mor
promotions ar don, th mor
customrs ht awar of th brand and its
spcifications. This is ndd for brand
positioning in a vry comptitiv markt

1.
2.
3.
4.
5.
6.
7.

www.tatastl.com
http://n.wikipdia.org/wiki/Brand
http://n.wikipdia.org/wiki/Brand_awarnss
http://n.wikipdia.org/wiki/Brand_prfrnc
http://n.wikipdia.org/wiki/Consumr_bhaviour
http://n.wikipdia.org/wiki/tatastl
http://www.ibf.org/industry/ral-stat-india.aspx

No

Can't Say

3%
11%

86%

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8. www.ibf.org
9.
http://www.monycontrol.com/nws/ral-stat/ral-stat-propllrgrowth-forindian- conomy_1073556.html
10. http://www.monycontrol.com/nws/ral-stat/can-housing-sctor-lad-india-backto- doubl-digit-growth_1036482.html
11. www.oifc.in
12. http://n.wikipdia.org/wiki/List_of_countris_by_stl_production
13. http://n.wikipdia.org/wiki/List_of_stl_producrs
14. http://n.wikipdia.org/wiki/Rbar
15. www.tatatiscon.com
16. http://www.ntrprnur.com/ncyclopdia/distribution-modls

Bibliograpy
Books rfrrd:
1.

Kotlr Phillip, Kllr Kvin Lan, Koshy Abraham, Jha Mithilshwar: 14th
dition, Markting Managmnt.

Rsarch Paprs:
1. CRISIL RSARCH: INDIA RAL STAT OVRVIW; MARCH 2010.
2. Industry outlook and crdit rating prspctiv in Ral stat Sctor, Car Ratings.
3. A Brif Rport on Ral stat Sctor in India, August 2013, Corporat Catalyst
India.
4. Iron & Stl Nws lttr Octobr 2013, www.srma.co.in
5. Long Stl Product Scnario in India, Sngupta Sanjay, Stlworld, July 2012.

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