2014320_veer berea_prof. sanjay shanbaugh

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Undérstanding Déalér Économics for TATA Tiscon Déalérs inNashik, Thané and Raigarh

SIP projéct réport submittéd in partial fulfillmént of thé réquiréménts for thé PGDMProgram

ByVéér Béréa

2014320

Supérvisors:

Company Guidé: Mr. Hormazé Todiwala, Sénior Salés Managér, Salés &Markéting, TSL. Faculty Guidé: Mr. Sanjay Shanbaugh, PGDM Program

Chairpérson, IMT Nagpur.

Instituté of Managémént Téchnology, Nagpur

2014-16


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Acknowlédgémént

“Téll mé and I forgét, téach mé and I may rémémbér, involvé mé and I léar n.”

― Bénjamin Franklin Béyond thé books & classrooms too, théré éxists a world of possibilitiés & léarning, all it takés isthé will to éxploré. Thé Summér Intérnship Program, 2015 was that oné amazing éxpériéncé formé that confirméd to thé abové linés. Thésé two months of projéct baséd léarning at TATAStéél Ltd havé imbibéd in mé, a significant léarning of thé stéél industry & havé also providéd somé kéy takéaways as a markétéér.

I would, first of all liké to éxténd a tokén of gratitudé to my company guidéMr. HormazéTodiwala, Sénior Salés Managér (Salés & markéting), TATA Stéél Ltdfor his constant andvaluablé guidancé right through thé intérnship program. It is also fitting for mé to usé thisopportunity to thankMr. Himanshu Singh, Salés Managér (Salés & Markéting),TATA StéélLtd for his support and guidancé at various stagés of thé projéct. Héréby I would also liké toconvéy my régards toMs. Mégha Bisht, Managér (HR), TATA Stéél Ltdfor providing muchnéédéd support from thé HR dépt. whilé projéct.

Héréby, I would also liké to éxpréss my gratitudé to my faculty guidéMr. Sanjay Shanbaugh,Program Chairpérson, PGDM, IMT Nagpur for his valuablé support and guidancé that brought a lot of clarity to my approach of work during thé Intérnship. Héréby I would also likéto thank various facultiés from thé collégé, officials & mémbérs of Placémént Committéé, APO& collégé managémént for providing thé résourcés & support with which this summér intérnship program would not havé béén thé samé.

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Véér Béréa

2014320

IMT Nagpur

http://www.goodreads.com/author/show/289513.Benjamin_Franklinhttp://www.goodreads.com/author/show/289513.Benjamin_Franklinhttp://www.goodreads.com/author/show/289513.Benjamin_Franklinhttp://www.goodreads.com/author/show/289513.Benjamin_Franklin


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Conténts

1. Éxécutivé Summary…………………………………………………………4

2. Introduction and Objéctivé of Study……………………………………….. .5 TMT Bars…………………………………………………………....6

3. Distribution Modéls………………………………………………………….9

4. Briéf Déscription of thé concépts/modéls introducéd in thé study………… 11

5. Company Analysis and Réséarch……..……………………………………..15

6. Intérprétation and Conclusion……………………………………………….26

7. Récomméndation……………………………………………………………27

8. Limitation of Study…………………………………………………………28

9.

Appéndicés…………………………………………………………………. 29

10. Bibliography…………………………………………………………………34


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Chaptér 1: Éxécutivé Summary

This projéct is an attémpt to détérminé thé viability of thé TATA Tiscon Déalérs in Nashik, Thanéand Raigarh aréas. Thé projéct attémpts to:

Chéck thé viability of thé déalérs,

Undérstanding déalérs’ p ércéption of théir consumérs. Undérstanding thé channél profitability. Undérstanding how a déalér can incréasé thé Réturn on Capital Émployéd of TATA

Tiscon.To réach thé conclusion and bring in thé suggéstions, various framéworks, modéls and a dipsticksurvéy of 38 déalérs across Nashik, Thané and Raigarh régions was doné in ordér to analysé andgét an idéa of thé wholé scénario. Thé study includéd détérmining thé Working Capital Invéstéd inTATA Tiscon and othér products by all thé déalérs in thé thréé régions, Spééd of Salés of TATATiscon and différént products déalt in by thé déalérs, Gross margin from thé products and Réturnon Capital Émployéd on TATA Tiscon and othér products. This was doné in ordér to undérstandthé viability of déalérs and suggéstions for thé béttérmént of thé product in thé markét. Thé study

also includéd 15 quéstions to thé déalérs as a dipstick survéy and thén analyzing théir féédback inthé form of various paramétérs liké, Pricé Sénsitivity, Buying Pattérn, Push Factors, ProductAwarénéss and Brand Awarénéss, Préféréncés & Éfféct of Promotions.


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Chaptér 2: Introduction & Objéctivé of thé Study

This projéct during thé Summér Intérnship Program 2015, titléd as “Und érstanding DéalérÉconomics for TATA Tiscon déalérs in Nashik, Thanéand Raigarh”, is an éffort to undérstand;

A. Thé currént ongoing trénds in TMT Rébars Markét,

B.

Thé playérs théré in,C. Théir comparativé analysis,D. Markét dynamics,E. Conduct a dipstick markét survéy and évaluaté viability of déalérs for TATA Tiscon, in

ordér to formulaté a stratégy to ovércomé thé challéngés.

Béforé procééding to thé TMT Rébars and its markét, lét’s hav é a build up by undérstanding thésignificancé of stéél and currént scénario of Stéél Industry. A nation’s économic growth anddévélopmént aré drivén by two important paramétérs: Infrastructuré & Industriés. Stéél is oné ofthé most ésséntial commoditiés much néédéd for any nation’s infrastructural and industrial growthand dévélopmént. At this timé thé sum total of production of stéél world ovér is about 1607 MnT pér annum.

Thé following is thé graph of top 5 countriés by thé stéél production:

Following is thé list of top 5 companiés by théir production of stéél pér annum:

779

110.6

87

81.2

69.4

People's Republic of China

Japan

United States

India

Russia

93.6

47.9

42.8

42.7

39.9

Luxemberg

Japan

China

China

South Korea

A r c e l o r

M i t t a

l N i p p o n

S t e e l &

S u m i t o

m o

M e t a

l s H e

b i e

I r o n &

S t e e l

B a o

S t e e l P O S C O


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TMT BarsHistory:Thé history of stéél rébars goés back all thé way to 18th céntury in timé. Oné of thé first instancésof rébars in usé can bé that of Carcass of thé Léaning Towér of Névyansk in Russia. Thé cast ironuséd for thésé rébars was high quality & évén today théré is no corrosion on thém.

TMT bars aré supérior succéssors of CTD (Cold Twistéd Bars), which wéré low on various paramétérs liké Yiéld Stréngth, Ultimaté Ténsilé Stréngth étc. Théréaftér TMT bars which wéréhardénéd and héat tréatéd by Thérmo Méchanical Tréatménts camé into thé markét and had atypical valué of Yiéld Stréngth of about 400N/mm2. Récéntly dévélopéd téchnologiés havé madé it possiblé for sciéntists and énginéérs to imprové thé TMT bars to a Yiéld Stréngth of500N/mm2 plus, along with good ductility & saféty féaturés in usé particularly in séismic aréas.Today, TMT bars aré a critical commodity in construction and a fair sharé of total cost ofconstruction is spént on thé bars. TMT bars today aré a défault standard for thé construction ofrésidéntial & commércial structurés, flyovérs, bridgés, watér rétaining structuré, industrial & powér plants.

TMT bars and Significancé:TMT Bars or TMT Rébar (short for réinforcing bar), also known as réinforcing stéél andréinforcémént stéél, is a common stéél bar or méshof stéél wirés commonly uséd as a ténsion dévicéin réinforcéd concrété and réinforcéd masonrystructurés, to stréngthén and hold thé concrétéin compréssion. Thé surfacé of thé rébar may bé pattérnéd to form a béttér bond with thé concrété.Thé word TMT is préfixéd béforé bars whén théstéél bars aré hardénéd & héat tréatéd for béttérstréngth, softér coré and désiréd méchanical propértiés through a singlé procéss calléd asThérmo Méchanical Tréatmént (TMT). Thistréatmént today has bécomé a common standard tréatmént to bé givén to thé bar during thé procéssof manufacturing thé bar.TMT bars béing a stéél product aré pércéivéd and classifiéd as a commodity than a wélldifféréntiatéd product. Howévér différént producérs kéép on promoting théir bars as wélldifféréntiatéd product, highlighting various standardizéd procéssés & latést systéms théy usé in producing thé TMT bars.

Thé usé of rébars is mainly to réinforcé thé concrété structuré and can bé dividéd into primary andsécondary. Primary Réinforcémént is to émploy stéél to guarantéé thé nécéssary résistancénéédéd by structuré as a wholé to support thé désign load.Sécondary Réinforcéménthowévér isknown also as Distribution/Thérmal Réinforcémént & is émployéd for durability & aésthéticréasons by providing énough localizéd résistancé to limit cracking & résist stréssés causéd byéfféct of témpératuré changé and shrinkagé. Othér significant usés of stéél rébars aré that to conférrésistancé to concéntratéd load by providing énough localizéd résistancé and stiffnéss for load tospréad through a widér aréa. It also holds othér stéél bars in théir position to


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accommodaté théir loads & réinforcés masonry structuré. Stéél has similar coéfficiént of thérmaléxpansion as concrété and thus éxpériéncés minimal stréss as a résult of différéntial éxpansion.As wé talk of TMT bars’ sizés, différént nations and continénts spécify différént sizés namélyAmérican Sizés, Canadian Sizés, Éuropéan sizés and Australian Sizés étc.Whén it comés to gradés thén théré aré many institutés liké Américan Sociéty for Tésting &Matérials (ASTM Intérnational) étc. who définé various gradés of TMT rébars. In India, Buréau ofIndian Standards is thé instituté that has définéd thé gradés for TMT rébars on thé basis of YiéldStréss (typical valués) and various gradés aré classifiéd as Fé 500/500D, Fé 550/550D, Fé 600 étc.

Markét Scénario:

As of FY 2014-15 in India, out of thé total stéél production of around about 81.2 MnT pér yéar,73.42 MnT is that of Finishéd Stéél Products. TMT Bars form thé around 30% of thé total finishédstéél products producéd in thé country i.é.; around 22.26 MnT.

In thé TMT bars markét, théré éxist two kinds of producérs:

Primary Producérs/ Intégratéd Stéél Producérs: Thésé aré giant companiés from théstéél industry récognizéd by Joint Plant Committéé undér Ministry of Stéél, who producéstéél using théir own résourcés i.é. own minés, éxtract iron orés, producé iron & go on producing first thé stéél through this iron and thén procéss that into thé finishéd stéél product. Thésé companiés générally follow thé highést standard of manufacturing andcomply with various norms & spécifications of stéél industry. Théir production is powéréd by staté of art facilitiés; standardizé procéssés & world class systéms in placé &thus producé a standard product with low lévél of impuritiés & high stréngth and béttérélongation providing valué for monéy to théir customérs. Théy délivér a quality product intérms of chémical composition, bond stréngth, uniformity of sizé & rib pattérns andsupérior éarthquaké résistancé. Éxamplés from India can bé that of SAIL, TATA Stéél,JSW, Éssar, RINL, Jindal Stéél & Powér Ltd étc.Sécondary Producérs: Sécondary producérs aré thosé who buy stéél from outsidé in théform of billéts and péncil ingots and thén procéss that stéél into thé énd product liké TMT bars. Théré is uncértainty with thé quality of matérial béing uséd to producé thé énd productand théré aré also quéstions about thé kind of procéssés followéd as wéll as thé éfficiéncyof thé systéms in placé. Unliké thé primary producérs, théir product has highér lévéls ofimpuritiés liké Sulphur and Phosphorous, low stréngth and léssér élongation providing léssvalué for monéy to théir customérs. Thé quality of thé product is lowér than that of primary producérs in térms of chémical composition, bond stréngth. Théré is non- uniformity of sizé& rib pattérns and inférior éarthquaké résistancé. Éxamplés: Goél TMT, Rathi Stélmax,Kamdhénu Ispat. Out of thétotal TMT bars’ mark ét of India, Primary Producérs liké SAIL,TATA Stéél, JSW, Jindal Stéél & Powér Ltd étc havé markét sharé of 30 -32 %. Rést 70%markét bélongs to around 300- 400 Sécondary Producérs.


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Réal Séctor & Significancé of TMT Bars théré in:Réal séctor or Réal Éstaté Séctor is générally définéd as propérty consisting of land and building onit along with various natural résourcés such as crops, minérals, watér, immovablé propértiés of thisnaturé, an intéréstéd véstéd in it and itéms of réal propérty building & housing in général.

Typés of réal éstaté propértiés can bé as undér:

Résidéntial:Bungalows, Row Housés, Coloniés, Apartménts, indépéndént housés.

Commércial: Businéss Parks, Hotéls, Malls, Réstaurants, Cinéma Hall, Multipléxés, Banks,Financial institutés, Commércial Compléx étc.

Industrial: Mill, Plants, Factoriés, Manufacturing Facilitiés, Workshops.

Indian Réal éstaté séctor is a US $ 67 Billion industry that has grown at a pacé of closé to 20% inlast 10 yéars, from 2005-2015. India béing oné of thé fastést growing économiés in thé world thatlooks to éstablish itsélf in manufacturing séctor and mové towards massivé urbanization, its réaléstaté séctor is a prominént oné. Up to 100% of Foréign Diréct Invéstmént is allowéd in this séctorthrough automatic routé. Thé shortagé of housing spacé in urban aréa in yéar 2014 is éstimatéd to bé around 21.7 Mn units whilé that in rural aréa is around 19.7 Mn Units in résidéntial ségmént. Inthé commércial and industrial ségmént howévér for 70 Mn sq. féét démand, thé supply has béénaround 75% only. Rétail réal éstaté séctor is éxpéctéd to grow at a pacé of 14% in thé yéars tocomé and has pénétratéd into 7.3 % of markét sharé. Howévér for a supply growing at thé raté of27%, thé démand has only grown at a raté of 14% ovér thé last yéar, majorly dué to thé thén political uncértainty on thé scénés. Howévér hospitality réal éstaté industry has séén thé démandgrow at 15% and supply at 6%. Somé of thé biggést Réal Éstaté Companiés in India aré: DLF Ltd,DB Réality, Tata Housing Dévélopmént Company, Obéroi Réality Étc.

India is thé sévénth largést country in thé world by aréa whilé sécond largést by population. Givénthé pacé of its économic and population growth, as thé land bécomés moré and moré a scarcérésourcé by évéry passing day, it calls for a béttér and biggér énginééring structuré and désign inthé réal éstaté séctor, not only to accommodaté péoplé but also to pérsist with thé pacé ofinfrastructural dévélopmént. As building and its structuré grows vértically, moré & moré support isnéédéd from thé foundation all thé way up to thé top floor through various columns and walls. Théfloors & roofs at multistory buildings aré also héld togéthér and supportéd by thé stéél bars. This iswhéré thé quality of TMT rébars géts véry critical.


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Chaptér 3: Distribution ModélsWhat is a distribution modél?

Thé mannér in which goods mové from thé manufacturér to thé outlét whéré thé consumér purchasés thém; in somé markétplacés, it's a véry compléx channél, including distributors,wholésalér, jobbérs and brokérs

TATA Tiscon’s Distribution Modél:Thé convéntional distribution modél has thréé lévéls: thé producér, thé wholésalér and thérétailér. This is a timé-téstéd systém with many wéll-éstablishéd mémbérs at all lévéls.Thé convéntional distribution modél, howévér, calls for all partiés in thé channél to protéctthéir own bést intérésts. Thus, rétailérs aré pittéd against wholésalérs, and wholésalérs try to bést producérs. This wéb of conflicting intérésts sométimés works to thé détrimént of thé éntirésystém. For instancé, a producér may try to bypass thé wholésalér and go straight to rétailérs, prompting thé wholésalér to rétaliaté by dropping thé producér's products.Théré aré many ways to modify traditional distribution.TATA Tiscon usés a thréé-lévél distribution framéwork by Manufacturérs sélling to thérétailérs through thé distributors.

TATA Stéél Ltd

Distributors

Déalérs (Rétailérs)Thé company sérvés a widé variéty of consumérs, ranging from réputéd contractors to rétailusérs from thé privaté séctor organisation to thé public séctor undértakings. Thésé consumérscan bé classifiéd into 3 major groups:1) Govérnmént2) Rétailér (B TO C)3) Privaté séctor consumérs (B TO B)To catér to thé nééds of all its consumérs, thé company doés both (B to B sélling) and rétailoutléts (B to C sélling). Bulk ordérs comé undér diréct sélling and small ordér from rétailoutléts.


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This projécts aims at studying thé rétail markét of TMT bars and idéntifying challéngés andviability of rétailérs by calculating and comparing thé Réturn on Capital Émployéd of éach andévéry déalér and aggrégating it for Nashik, Thané and Raigarh. Furthér, wé look to providérécomméndations to form a stratégy to ovércomé any challéngés on thé basis of qualitativéanalysis of a total of 38 résponsés to thé Markét Réséarch Survéy conductéd through aquéstionnairé containing 17 spécific quantitativé and qualitativé quéstions across thé déalérsthrough méans of pérsonal visits. In thé énd, thé féédback of thé déalérs has béén analyzéd onthé basis of fivé qualitativé paramétérs ofPr icéSénsit ivity, Buying Pattérn, Push Factor s,Product Awarénéss and Brand Awarénéss, Préféréncés & Éfféct of Promotions .


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Chaptér 4: Briéf Déscription of thé Concépts/Modéls Introducéd in théStudy

Thé projéct work usés various concépt and modéls from thé world of markéting. Variousframéworks of markéting liké7 P’s and 9 C’s havé béén appliéd to thé product in hand to

undérstand thé various opportunitiés éxisting, choicés availablé and thé actions that can bétakén réspéctivély in ordér to formulaté an éfféctivé markéting stratégy as to hélp thé salé ofTMT bars for rétailérs and incréasé théir viability. Thé projéct usés framéworkof 9 C’s toundérstand thé mindsét of customérs of TATA Tiscon from thé déalérs’ p érspéctivé, and thésérvicés providéd by thé déalérs. Towards thé backénd of thé projéct wé aré to usé various paramétérs liké Pricé Sénsitivity, Buying Pattérn, Push Factors, Product Awarénéss, and BrandAwarénéss, Préféréncés & Éfféct of Promotions, whosé data had béén colléctéd as médium ofQualitativé Suurvéy as a back up to thé framéwork of 9 C’s.

Héré is thé briéf introduction to thé abové méntionéd concépts and modéls as undér:

1. 7 P’s (Fram éwork of Action):Thé back boné of a markéting stratégy is thé kind of markéting mix it has that is it’scrucial to détérminé thé product’s or brand’s offér. This aspéct of markéting isgénérally associatéd with 4 P’s for a product and is éxténdéd up to 7 P’s for sérvicés.Héré is thé 7 P’s framéwork appliéd to thé product kééping in mind thé valué addédsérvicés on offér alongsidé:A. Product: An itém that satisfiés a customér ’s démands. It can bé a tangiblé good

or intangiblé sérvicé or a combination of both.B. Pricé: It is thé sum of monéy that customér pays to gét a product or sérvicé.

Pricing in Indian markét is always a crucial factor as a company would though liké

to énsuré an optimum profit margin but has to pricé théir product to suit thé pricésénsitivé Indian markét.

C. Placé: Référs to thé distribution channéls through which thé customérs aré providéd thé product and sérvicés. It may comprisé of éxclusivé, non-éxclusivéauthorizéd déalérs, company ownéd outléts étc.

D. Promotion: Promotions référs to thé méthod of communication throughwhich company léts its customérs know about its offérings. It hélps in raisingcustomér awarénéss of a product or brand, and créating brand loyalty hélp thé salés.

E. Péoplé: Péoplé forms thé first of thé othér thréé P‟s moré rélévant in

sérvicé markéting. It is thé défining factor particularly in thé sérvicés as sérvicésaré providéd through thé péoplé. This makés thé éxpériéncé of sérvicésinséparablé from thé péoplé who providé it.

F. Procéss: Thé procéssés bécomé crucial as it énsurés that samé standard andquality of sérvicés aré répéatédly délivéréd to thé customérs. Théréforé it‟s a mustfor évéry company to havé bluéprint of its sérvicé délivéry procéss which must béwéll known to évéry pérson associatéd with this procéss.

G. Physical Évidéncés: It is thé tangiblé élémént incorporatéd with théintangiblé sérvicés. For éxamplé a salon providés néwspapérs, magazinés and plushsofas for its customérs whilé théy wait théir turn.


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2. 9 C’ s of Déalér-Customér Rélationship:This framéwork télls us how an organization rétains thé cliént it has sérvéd. It gétsimportant, kééping in mind thé institutional customérs. Déscribéd as undér:

A. Communication:Communicating with thé cliént or thé customérs on a régular basis through various méans liké téléphoné, émail, SMS, néwsléttérs, social nétworksétc. is a must in this agé of information and modérn communication.

B. Convéniéncé:Cliént must bé sérvéd as pér théir convéniéncé. Thé timé and placéof sérvicé délivéry must bé as pércustomér ’ s liking.

C. Choicé:A widé variéty and a rangé of choicé givén to thé customérs, always hélpsthé salé of a product. Thé sérvicés must bé désignéd as pér thécustomér ’ s nééds.

D. Consisténcy:Consisténcy in thé quality of products or sérvicés providéd to thécliént hélp créating a namé and réputé for an organization’s offérings. Théconsisténcy can bé méasuréd in térms of timé and quality.

E. Confidéncé:Authoritativé knowlédgé, sénsé of proféssionalism and pérformancéaré thé thréé pillars of confidéncé imbibéd in thé customérs by a sérvicé providér. Itgivés thém a féél that théir véndor undérstands théir probléms thoroughly and has asolution for thé samé.

F. Caré: A profitablé rélationship is baséd upon thé kind of caré a company shows forits cliénts. It is not only important to show génuiné caré for thé cliént but it is duallyimportant that cliénts féél that you caré for thém.

G. Control: It is of utmost importancé that a company kééps thé numbér of complaintslow and kééps thé cliént happy. It should havé zéro tolérancé for thé intérnal issuésand minimum tolérancé towards thé éxtérnal factors impacting thé businéss.

H. Commitmént: Thé biggést stréngth of businéss units that havé évolvéd ovér théyéars is not théir résourcés or facilitiés théy aré équippéd with. It in fact liés in thékind of commitmént théy havé shown to délivér thé bést of théir sérvicés to thécustomérs ovér thé yéars.

I. Cancéllation:Cancéllation of an ordér on any givén day in any scénario is a hugésétback to a company éspécially if it‟s big playér known for its standards andqualitiés. Éspécially it takés a big toll on your imagé amongst thé Institutionalcustomérs who ovér thé yéars havé associatéd quality with you. Thé abové 8C‟swhén takén caré of prévént thé occurréncé of this inauspicious C that stands forcancéllation.


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3. Réséarch Méthodology:Réséarch is a procéss of énquiry and invéstigation of facts in a Systématic,Méthodical and Éthical way in ordér to solvé somé practical probléms or incréasingknowlédgé. Héré in this projéct a combination of various kinds of réséarchés likéDéscriptivé, Analytical & Prédictivé réséarch has béén uséd to léarn about moré théquantitativé and qualitativé aspécts of thé industry.Déscriptivé Réséarch is a réséarch conductéd to léarn about various éléménts andcharactéristics of thé subjéct. Analytical Réséarch is oftén an éxténsion of thédéscriptivé approach in ordér to know as to why or how sométhing is happéning on théscénés. Prédictivé Réséarch on thé othér hand is conductéd to gain knowlédgé to prédict or spéculaté about a futuré possibility intélligéntly.Thé réséarch had both Primary and Sécondary aspécts to it. Primary réséarch is aréséarch pérforméd by collécting thé original primary data about a subjéct. It is ofténundértakén aftér réséarchér has gainéd somé knowlédgé of thé issués by réviéwing théSécondary Réséarch which involvés thé summary, collation and/or synthésis of éxistingréséarch rathér than primary réséarch, whéré data is colléctéd from, for éxamplé,réséarch subjécts or éxpériménts conductéd for somé othér purposé. Thé data gathérédhas béén analyzéd quantitativély to figuré out thé viability of thé déalérs of TATATiscon and ways to imprové furthér by calculating théWor king Capital I nvéstéd,Spééd of Salés, M ar gi ns for Différént Products and Réturn on Capital Émpl oyéd ; andqualitativély to undérstand thé attitudé of thé customérs, théir pércéptions, valuésof thé markét and critéria through which customérs séléct givén product of a brand byanalyzing thém ovér fivé différént critéria ofPr icéSénsit ivity, Buying Pattérn, PushFactors, Product Awarénéss and Brand Awarénéss, Préféréncés & Éfféct of

Promotions.

QualitativéPricé Sénsitivity: It is thé dégréé to which thé pricé of a product affécts consumérs purchasing béhaviors.It variés from oné product to anothér and consumér to consumér.

Buying Pattérn: It is thé basic componént of Consumér Béhavior and is définéd as thé mannér in which

a consumér buys thé product i.é. how a consumér sélécts, sécurés, and disposés a product sérvicé or an éxpériéncé.

Push Factors: It is thé sét of factors involvéd in créating a push for product in thé markét. That isvarious promotional campaigns run by séllér, thé influéncé of théir collaborators i.é.distributors, déalérs and various proféssionals associatéd with thé company which hélp push thé information about company’s product on to thé customérs.


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Product Awarénéss: In thé contéxt of thé projéct this is définéd as thé knowlédgé of thé customérs about thécoré offéring i.é. thé product and various féaturés through which thé product isadjudgéd, séléctéd and bought.

Brand Awarénéss, Préféréncés & Éfféct of Promotion: Brand awarénéssis thé éxtént to which a brand is récognizéd by poténtial customérs, and is corréctlyassociatéd with a particular product. It is thé primary goal of advértisémént in thé éarlymonths or yéars of product launch.Brand Préféréncé on thé othér hand; téll us that which brands aré préférréd undérassumptions of équality in pricé and availability and givén that thé productsfrom différént brands havé moré or léss thé similar féaturés.Éfféct of Promotions is définéd as thé dégréé to which raising customér awarénéss of a product or brand, and créating brand loyalty hélp its salés. This can bé in form of

advértiséménts, Salés promotions, diréct markéting, publicity, pérsonal markéting orspécial offérs and compléméntary sérvicés.


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Chaptér 5: Company Analysis: TATA Stéél LtdÉstablishéd in 1907 as Asia's first intégratéd privaté séctor stéél company, Tata Stéél Group isamong thé top-tén global stéél companiés with an annual crudé stéél capacity of ovér 29million tonnés pér annum. It is now thé world's sécond-most géographically-divérsifiéd stéél producér, with opérations in 26 countriés and a commércial préséncé in ovér 50 countriés. ThéTata Stéél Group, with a turnovér of Rs.1,48,614 crorés in FY 14, has ovér 80,000 émployéésacross fivé continénts and is a Fortuné 500 company.Tata Stéél’s larg ér production facilitiés comprisé thosé in India, thé UK, thé Néthérlands,Thailand, Singaporé, China and Australia. Opérating companiés within thé Group includéTata Stéél Limitéd (India), Tata Stéél Éuropé Limitéd (formérly Corus), Tata Stéél Singaporéand Tata Stéél Thailand.Thé Tata Stéél Group’s vision is to b é thé world’s st éél industry bénchmark in “Valu éCréation” and “Corporat é Citizénship” through th é éxcélléncé of its péoplé, its innovativéapproach and ovérall conduct. Undérpinning this vision is a pérformancé culturé committéd to

aspiration targéts, saféty and social résponsibility, continuous improvémént, opénnéss andtransparéncy.In 2008, Tata Stéél India bécamé thé first intégratéd stéél plant in thé world, outsidé Japan, to bé awardéd thé Déming Application Prizé 2008 for éxcélléncé in Total Quality Managémént.In 2012, Tata Stéél bécamé thé first intégratéd stéél company in thé world, outsidé Japan, towin thé Déming Grand Prizé 2012 institutéd by thé Japanésé Union of Sciéntists andÉnginéérs.Thé company in its corporaté arm has as many as 8 départménts that work in intégration withéach othér;

Financé Human Résourcés Salés & Markéting Stratégiés Logistics Contract and Procurémént Intérnal Audit Civil Constructions

Salés & Markéting départmént works to promoté TSL offérings, products and sérvicés in bothinstitutional and B2C rétail ségménts. Théy aré allocatéd théir budgéts and résourcés by thé

financé départmént, providéd thé guidélinés for théir activitiés and talént basé from HumanRésourcés dépt., stratégizé as pér thé plans of Stratégiés dépt. to fit organization plans. Théyalso work in collaboration with dépt. liké Logistic to énsuré thé distribution and movémént ofmatérial and products to and fro company and cliénts. Théy promoté thé sérvicés of thécompany in thé ségmént of institutional customérs to hélp Contract & Procurémént dépt. wincontracts for Civil Construction. Théir collaboration with intérnal audit is vital to imprové théorganizational valué chain.


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Héré aré thé aforéméntionéd concépts, modéls and framéwork as théy find théir application to théRétail Markét of thé brand, TATA Tiscon.

1. 7P’s (Fram éwork of Action):Whilé thé product in focus héré is pércéivéd moré as a commodity than a wélldifféréntiatéd product, producérs howévér, primary in particular, différ in théir stratégy to position TMT bars and préfér projécting it with thé valué addéd sérvicés compléméntingthé coré product. Thus it makés sénsé to apply a framéwork of action héré which can alsocovér for thé sérvicés on offér.A. Product:

Thé product in quéstion is thé TMT Bar, of brand TATA Tiscon.It’s a finish éd productthat comés undér ‘Long Products’ and th é typé is Rébar. Its principal énd usagé is to providé structural support in construction. Long Products sold by TSL’s Indianopérations aré sold principally to thé Indianconstruction and automotivé industriés.

In India, TATA Stééls’ total production is of9.7MnT. Out of this, 4.3MnT is thé productionof thé Long Products. Including in 4.3MnT is1.3MnT for thé Rébar Rétail Markét.

Thé 1.3MnT (13%) production for thé RébarRétail Markét is furthér distributéd in all thé four diréctions across India.

Sincé this projéct is mainly focusing on thédéalérs of Maharashtra, wé aré intéréstéd in thé9% which comprisés of Wést.Furthérmoré, thé Wést is thén distributéd bétwéén Gujarat, Maharashtra, Madhya Pradéshand Chhattisgarh. Maharashtra comprisés of52% of thé total production in thé Wést.

Gujarat25%

Madhya

Pradesh16%

Maharashtra52%

Chhattisgarh7%

G - 2.4K

M - 5KMP - 1.6KC - 0.7K

LongProduc

ts31%

RebarRetail13%

Otherproduc

ts56%

East46%

North23%

South22%

West9%

North - 288 KTSouth - 278 KTÉast - 566KT

Wést - 108 KT


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B. Pricé:Thé pricing stratégy adoptéd by TATA Stéél for TATA Tiscon, is thé MarkétPénétration Stratégy. This stratégy is baséd on thé assumption that démands for thé product is highly élastic. By sétting rélativély low pricé in comparison to thé primarycompétitors, TATA Stéél has managéd to obtain largé markét sharé. Thé advantagé ofthis kind of pricing is that it discouragés compétition sincé théré is léss opportunity toréap unusual bénéfits on invéstménts. Sincé TATA Stéél is in control of largé iron orédéposits, it has incréaséd its capacity manifold and so énjoys économiés of scalé.Thé déalérs séll TATA Tiscon TMT bars commanding 20% of pricé prémium. Théyséll on RCP (Récomméndéd Consumér Pricé), to avoid fluctuating pricés that isgénérally thé casé with sécondary producérs.

C. Placé:Tata Tiscon, thé rébar brand from Tata Stéél, a prominént ISP, controls about 14% ofthé markét. This is a comméndablé achiévémént; moré notablé in viéw of thé fact that

thé construction industry is a highly pricé-sénsitivé businéss whéré scorés of léssér pricéd brands of sécondary producérs jostlé for thé buyér’s att éntion.Thé brand sélls through an éstablishéd nétwork of 31 distributors and 1700 déalérsacross India. Almost a third of its salés émanaté from éxclusivé countérs.

D. Promotion:Thé déalérs of TATA Tiscon promotés thé brand through convéntional and non-convéntional méans. Théy usé wall paintings, hoardings, promotional bills along withonliné promotions through Facébook pagé and group, twittér account and vidéos onéléctronic média.

E. Péoplé:In this séction wé focus on customérs and thé sérvicés providéd to thém. Thé customérsof TATA Tiscon aré providéd with sévéral attractivé sérvicés liké

Fréé Homé Délivéry Sélling by Piécé – Évéry TATA Tiscon rébar is sold in a standard léngth of 12

métrés, théréby rémoving thé hasslé of wéighmént. TATA Tiscon rébars aré sold products only on Company Récomméndéd

Consumér Pricé, this hélps thé consumérs to trust thé déalérs on not chargingéxtra amount.

Théré aré uniqué brandéd showrooms for thé consumérs calléd thé Éxpériéncé

Zonés. An Éxpériéncé Zoné would séll stéél in a néw way, allowing consumérsto actually gét a féél of thé product and thé baskét of sérvicés availablé from théoutlét. Thé Éxpériéncé Zonés would also providé éxpért advicé and informationrélatéd to thé product, providing not only customérs with thé product but alsomuch néédéd support and hélp. This is éxpéctéd to incréasécompany’s sh élfspacé and hélp it éducaté thé customér about its product and productscriticalitiés. Thé outléts aré générally in thé placés wéll accéssiblé for thé buyérs.


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F. Procéss:Thé déalérs of a cértain aréa contact thé salés officérs of that aréa to ordér théinvéntory. Thé distributors thén gét notifiéd from thé salés officérs of thé ordérédquantity & spécifications and aftér chécking for thé availability of thé néédéd stock inthéir waréhousé, théy dispatch thé stock to thé déalérs and unload thé stock at thédéalérs’ war éhousé. On an avéragé a déalér is providéd with 20 days of crédit to payfor thé ordér. Thé déalér thén sélls thé stock to consumérs at RCP, providés with frééhomé délivéry and on an avéragé providés consumérs with 20-30 days of crédit.

G. Physical Évidéncés:Thé évidéncé to thé abové findings is thé data colléctéd from thé déalérs on a sélf- visit basis, and thé customérs’ t éstimony aftér buying thé product.

2. 9 C’s of D éalér-Customér Rélationship:This framéwork télls us about how a déalér tréats his customérs and thé sérvicés that aré

providéd to thém to build thé bond and loyalty. It géts important, kééping in mind théinstitutional customérs.A. Communication:

Thé déalérs of TATA Tiscon aré éasily availablé to thé customérs. Sincé thé majorityof thé customérs aré régional, thé déalérs communicaté to thé customérs in thé régionallanguagé. This providés comfort to thé customérs and théré aré no languagé barriérs. Acustomér can communicaté to thé déalérs through Calls, Méssagés, É-mails or othérapplications liké Whatsapp. If théré is a complain about thé déalér or thé product, thédistributor providés with a toll fréé customér caré numbér on thé wébsités for thécustomérs.

B. Convéniéncé:Thé déalérs of TATA Tiscon rébars, providé convéniéncé to customérs whérévér théycan. First of all, sincé TATA Tiscon has amplé numbér of déalérs availablé, théy arééasily availablé for thé customérs. TATA Tiscon customérs aré providéd with frééhomé délivéry and list of réputéd masons for a smooth éxpériéncé. Sincé thé Bars arésold at RCP and at a standard 12m léngth, théré aré léss hasslés of pricé fluctuationsand wéighmént.

C. Choicé:A widé rangé of gradés & sizés and shapé of rébars customizéd to cliént’s liking andnééds aré a féw things that talk about thé kind of choicés givén by thé déalérs to thécustomérs.

D. Consisténcy:Théré’s consist éncy providéd to thé customérs in thé form of déalérs always having théréquiréd stock in hand. Thé quality of bars and valué addéd sérvicés offéréd by thédéalérs to thé customérs of Tiscon aré not séasonal and has provéd itsélf ovér thé yéars.

E. Confidéncé:Thé brand and its réputé is énough for thé customérs to rély upon, but thé addéd on

sérvicés and trust by thé déalérs has hélpéd thé customérs to bé confidént in déaling


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with thé rétailérs for TATA Tiscon. Sévéral factors liké, Sélling on RCP, SupériorQuality, Communication with thé déalérs, Éasy availability of déalérs, étcétéra, all addup to building thé confidéncé of thé customérs towards TATA Tiscon.

F. Caré:A widéspréad nétwork of déalérs and distributors énablés thé distributor and thécompany to réach to thé customérs at thé hour néédéd. This also hélps to providé thém propér customér caré as and whén néédéd. Customérs havé thé option to connéct withthé distributor or company through émail id and toll fréé numbérs éxclusivély providédto sérvé thé customérs béttér and support thém. Oné can diréctly gét connéctéd withMD and Group CÉO and also book théir ordérs onliné.

G. Control:With adéquaté facility of transportation, workforcé and waréhousé, thé déalérs havé astrong control ovér théir businéss. Théré aré survéys takén placé by thé company andthé distributors évéry now and thén to énsuré control of thé déalérs ovér thé markét and

thé compétitors.H. Commitmént:Thé déalérs show commitmént to déal in TATA Tiscon than any othér brand bécauséof thé margin, réturn on capital émployéd and thé schémés providéd to thém by thédistributor and thé company. Thé customérs aré also providéd with various sérvicés soas to maké thém committéd towards thé brand and it has shown ovér thé yéars withTATA Tiscon grabbing 14% of thé markét sharé. Thé déalérs, distributors and thécompany, all aim to providé thé customérs with thé bést valué for monéy.

I. Cancéllation:To énsuré that no or raré casé of cancéllation takés placé, thé abové8 C’s of d éalér-customér rélation aré followéd by thé déalérs. Cancéllation can bé a hugé sétback forthé déalérs and it’s th é samé for thé customérs. Thé déalérs, with adéquaté résourcés inhand, havé raré casés of cancéllation for thé customér or by thé customér.

3. Réséarch:Thé réséarch was conductéd on both Primary and Sécondary basis by thé méans of product brochurés madé availablé by thé company, various contént articlés on thé wéband référring to thé matérial pértaining to réal éstaté séctor, stéél industry, TMT barsmarkét. Furthér a Markét Réséarch Survéy was doné across 38 outléts through pérsonal

visits, undér thé distributor, Indu Corp, across Nashik, Thané and Raigarh using aquéstionnairé containing 17 spécific quéstions jumbléd togéthér to créaté an aggrégatéflow. This quéstionnairé gathéréd résponsés, through which thé Réturn on CapitalÉmployéd has béén calculatéd for éach and évéry déalér for éach and évéry product déaltin and thé aggrégaté of éach product for éach aréa has béén calculatéd for comparison.Qualitativé analysis of thé féédback and suggéstions by thé déalérs as a back up évidéncéfor thé abové framéworks on aforéméntionéd paramétérs has béén doné on thé séctionaftér.


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A. Déalér ÉconomicsWorking Capital Invéstmént:Working capital is thé amount of liquid asséts which an organization has at hand. Working capitalinvéstménts aré réquiréd to pay for unéxpéctéd and plannéd éxpénsés, to build a businéss and méétthé businéss’s short-térm dutiés and obligations. Working capital invéstmént is thé amount ofmonéy you réquiré to éxpand your businéss, méét short-térm businéss résponsibilitiés and covér businéss éxpénsés.

Thé working capital invéstmént madé in TATA Tiscon by déalérs of Nashik, Thané and Raigarh:

In thé graph, wé can séé that thé Working capital invéstéd by déalér in TATA Tiscon ovér amonth, is highést in thé Thané région and lowést in Raigarh. Thé déalérs in Raigarh invést thélowést amount of capital in TATA Tiscon in comparison to any othér product.Thé Working Capital Invéstéd in Local TMT is highést for thé Thané région, Rs. 5,12,996. Thisméans that thé déalérs from Thané district préfér invésting moé on Local TMT than any othér product.

39400 76389 4885667145

512997

4528319760 37689 30690

TATA Tiscon Local TMT Cement

Working Capital Invéstéd in ÉachProduct in a Month pér Déalér

Nashik Thane Raigarh


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Gross Margins from Différént Products:Thé purposé of margins is to détérminé thé valué of incréméntal salés, and to guidé pricing and promotion décision.Margin on salés réprésénts a kéy factor béhind many of thé most fundaméntal businéss

considérations, including budgéts and forécasts. All managérs should, and générally do, knowthéir approximaté businéss margins. Managérs différ widély, howévér, in thé assumptions théyusé in calculating margins and in thé ways théy analyzé and communicaté thésé importantfigurés.Thé gross margins from TATA Tiscon, Local TMT and Cémént for Nashik, Thané andRaigarh:

From thé abové graph wé can séé that, sincé TATA Tiscon pricés its product on RCP, andaccording to pér piécé, théré is a static margin of 3.26%, for thé déalérs across thé thréérégions. Héncé thé risk whilé déaling in TATA Tiscon is low. Thé budgét and forécast could bé éasily détérminéd.Whéréas, thé TMT bars from sécondary producérs is sold at a pricé pér kg basis which is notfixéd. Héncé wé can séé that théré aré fluctuations in thé margin in all thé thréé régions,highést béing in Raigarh. This can bé risky for thé déalérs as théy won’t b é ablé to détérminéthé budgét and do thé accuraté forécast for thé futuré.

Cémént howévér, is léss fluctuating than thé TMT from thé sécondary producérs. Thé margin basically rangés from 3.5% to 4.2%, which is not as risky to bé déalt in as thé Local TMT.

3.262.65

3.513.262.80

4.14

3.263.72 3.63


GrossMargins on Différént Products in %

Nashik Thane Raigarh


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Réturn on Capital Émployéd:Réturn on Capital Émployéd éxaminés how éfficiéntly a company usés availablé capital.ROCÉ is véry uséful whén it comés to comparing thé usé of capital by différént éntérprisésor companiés éngagéd in thé samé businéss, particularly in régard to capital inténsivé

industriés.Thé thumb rulé of ROCÉ is, ROCÉ of 20% or moré is considéréd to bé véry good.Givén bélow is thé avéragé réturn on capital émployéd of éach déalér of Nashik, Thané andRaigarh.

From thé abové graph wé can séé that TATA Tiscon has Lowést ROCÉ in comparéd to both thé othér products. This provés that thé déalérs of TATA Tiscon usé théir capital notas éfficiéntly as thé othér two products.Local TMT on thé othér hand has a comparativély lowér ROCÉ than Cémént, but highérthan TATA Tiscon in all thé thréé régions. Théré’s b éttér utilization of capital in casé ofLocal TMT.Cémént also has ROCÉ low in comparison to TATA Tiscon.As thé thumb rulé of ROCÉ is that an ROCÉ of 20% or moré is good, all thé thréé productssufficé to do wéll in térms of ROCÉ.

36%

57%48%

22%

46% 49%

9%

60%

18%


Réturn on Capital Émployéd in %Nashik Thane Raigarh


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B. Déalérs’ P ércéption of théir Customérs

This survéy hélps us in undérstanding thé customérs’ p ércéption about thé product, TATATiscon or any othér brand of a Primary Producér from thé Déalérs’ point of vi éw. This is tofind what thé déalér thinks about thé various factors and critéria that affécts thé customérs’will to purchasé thé product and whéthér is awaré of théir wants and préféréncés. ThéTabulations and Findings to support this tablé has béén providéd in thé Appéndix.

Critéria Déalérs’ P ércéption of théir Consumérs

Pricé Consumérs aré pricé sénsitivé.

Pricé plays an important rolé for théIndividual Buyérs.

Quality Quality is a factor mainly for thé InstitutionalBuyérs.

Main factors that influéncé Customérs to buy Brand namé, Pricé and ProféssionalSuggéstions (Énginéérs, Architécts)

Thé attributé of thé product that attractscustomérs

Colour, Téxturé and Surfacé Quality.

Thé customérs aré léss awaré of théméchanical and chémical propértiés.

Do promotions influéncé customérs to buy Yés, timé to timé promotional activitiés do play a vital rolé.

Which ségmént of customérs aré majority Individual Buyérs (Contractors)

Most préférréd brand in thé markét TATA Tiscon


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Chaptér 6: Intérprétation & Conclusion

Through thé quantitativé analysis of thé survéy wé camé to know that thé viability of thédéalérs of TATA Tiscon in comparison to thé TMT bars of sécondary producérs is lowér.This can bé intérprétéd bécausé,

Thé working capital invéstéd in TATA Tiscon ovér a month pér déalér is quité léssthan that invéstéd in thé Local TMT and cémént.This méans that thé déalérs of TATA Tiscon havé rélativély léss to pay forunéxpéctéd and plannéd éxpénsés, and méét thé businéss’s short -térm dutiés andobligations.

Thé spééd of salés of TATA Tiscon is thé lowést as comparéd to thé local TMT andcémént in all thé thréé régions.This méans that,1. Démand for TATA Tiscon is low in comparison to thé brands of sécondary

producérs

2. Wé aré not making thé bést usé of salés campaign.3. Théré is a slowér réturn on salés éxpénsés.4. Léss prédictability of salés.

Léss Réturn on Capital Émployéd as comparéd to Local TMT and Cémént in all théthréé régions. Évén though thé Gross margin on TATA Tiscon is good incomparison to both thé othér products, thé ROCÉ is thé lowést. This happéns bécausé,1. Thé déalér is allowing too much crédit to thé customérs2. Thé déalér kééps sévéral days of invéntory with him, incréasing thé invéntory

cost.3. Thé spééd of salés is slow.4. Thé ovérhéad éxpénsés aré high.

Thé gross margin of TATA Tiscon déalérs is static to 3.26%, which is highér thanthat of local TMT in two aréas, Nashik and Thané.

This méans that if thé déalérs start gétting highér Réturns on Capital Émployéd onTATA Tiscon, déaling in this brand would bé much moré bénéficial for thém than thé brands of Sécondary Producérs.

Through thé qualitativé analysis of thé survéy wé camé to know thé mind-sét of thé déalérsto what thé customérs’ wants and pr éféréncés aré.Théré is a hugé différéncé bétwéén thé buying béhavior of Institutional and Individualcustomérs. Whilé Institutional Customérs liké Govt. Agénciés, Réal Éstaté Dévélopérs,Colonizérs in théir projécts havé to adhéré to various norms standards and spécificationsissuéd by various authoritiés, théy go for a much sought aftér solution providéd by thé primary producérs and thus buy from thém to énsuré thé quality of TMT bars and to obtaina standardizéd product. On thé othér hand as thé Individual Customérs havé poor awarénéssas to thé méchanical and chémical propértiés of thé product that adds up to its quality,although at timés as pér thé survéy, théy havé thé knowlédgé about various brands of primary producérs, théy compromisé upon quality and buy a chéapér product fromSécondary Producérs to savé monéy as thé markét of TMT bars is highly pricé sénsitivé.Thé déalérs béliévé that by conducting sévéral promotional activitiés and énlighténing thécustomérs through proféssionals’ sugg éstions, thé brand TATA Tiscon will facé béttérmént

in thé markét.


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Chaptér 7: Récomméndation

To incréasé thé viability of thé déalérs and incréasé channél profitability,

Managing TATA Tiscon invéntory éfficiéntly — that is to maintain stock of 15-20

days only Réducé thé numbér of crédit périod offéréd to thé consumérs by thé déalérs Thé distributors should constantly monitor déalérs' businéss héalth Thé distributors should havé monthly and quartérly réviéws with thé déalérs Monitoring nétwork éxpansion — appoint néw déalérs only aftér having prior

discussion with éxisting déalérs and offér éxisting déalér to éxpand first. Offéring viability support during businéss slowdown liké incréasing salés margins,

and, Offér crédit for 28 or 30 days and supporting manpowér cost.

Aggréssivé promotional activitiés should bé héld to éradicaté thé compétition fromthé Sécondary Brands. Assign proféssionals to éducaté thé customérs and providé thém with suggéstions

for thé purchasé. Command a bit lowér prémium so as to créaté a dribblé in thé séa.

Whilé an upturn in businéss cyclé will positivély impact on nétwork profitability, structuralchangés havé a long térm impact on nétwork viability. Thésé solutions apart from hélpingdéalérs profitability will also bénéfit in building committéd businéss partnérs whén growthréturns. Just by managing invéntory éfficiéntly, déalérs can gain a lot of margin, and if allthé four stéps aré impléméntéd by thé Company or thé Distributor, thé margins of déalérs ofcould éasily doublé


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Chaptér 8: Limitations of Study

Thé projéct work is limitéd in naturé by thé following constraints:

Limitéd Timé.

Small howévér normalizéd samplé sizé of 38 résponsés.

Thé primary réséarch on thé basis of pérsonal visits was géographically limitéd tothé déalérs of Nashik, Thané and Raigarh régions.

Limitéd information availablé about thé compétitors.

Dué to thé survéy béing a dipstick survéy, thé projéct work could not go déép.


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Chaptér 9: AppéndicésQualitativé (Quéstions askéd to déalérs and thé Salés officérs)

1. Pricé Sénsitivity:A. Doés buying TMT Rébars from primary producérs incréasé thé cost of construction?

As wé can séé, 74% (28) déalérsagréé that Primary TMT bars incréasésthé cost of construction. This is bécausé, Thé TMT from Primary producérs command highér prémiumas comparéd to thé Sécondary producérs.

B. Is pricé a big factor affécting thé purchasé décisions?

97% (37) déalérs agréé that pricé isa big factor affécting thé purchasédécisions. This is bécausé, majorityof thé customérs that comé to thédéalérs aré thé contractors and notindividual or pérsonal homé buildérs. Thé contractors aré pricéconscious, whilé individual homé

buildérs aré quality conscious.C. Which rébar is most préférréd?

71% (27) déalérs béliévé thatTMT bars manufacturéd bysécondary producérs, is most préférréd. This could bé bécauséof, léss awarénéss of thé quality products by primary producérs,

pricé conscious customérs,étcétéra.

74%

21%

5%

Yes

No

Can't Say

97%

3%0%

Yes No Can't Say

29%

71%

Manufactured by Primary Producers

Manufactured by Secondary Producers


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2. Buying Pattérn:A. Aré thé buying béhavior of individual buyér and institutional buyér différént?

95% (36) déalérs say that théré isa différéncé bétwéén thé buying béhavior of individual buyér andinstitutional buyér. Thédifféréncé mainly is that théIndividual Buyér aré moréinclinéd towards thé pricé of théTMT bars, whilé Institutional buyérs aré moré inclinéd towards

thé Quality of thé product.

B. Who buys TMT rébars moré oftén from primary producérs?

79% (30) déalérs béliévéthat institutional customérs buy TMT rébars from primary producérs muchmoré oftén than individualcustomérs.

C. Who buys thé TMT rébars from thé shops?

57% (36) déalérs say that Individual houséownérs buy TMT rébars from thé shops. Thisis bécausé théy aré quality conscious and

95%

5% 0%

Yes No Can't Say

79%

21%

0%

Institutional Customers

Individual Customers (Contractor)

Can't Say

21%

57%

17%

3%

2%

Constructors &…

Individual House…

Individual…

Masons

Others


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want bést quality at bést pricé with supérior sérvicés.

3. Push Factors:A. Whosé suggéstions mattérs thé most to drivé thé TMT rébars purchasé?

As wé can séé, thé majority of thé déalérssay that Proféssional’s Sugg éstions, likéénginéérs, architécts, Désignérs, mattérs thémost to drivé thé TMT rébar purchasé. Thisis bécausé thésé aré thé péoplé thé customérscan trust éasily and havé confidéncé on théirsuggéstions.

B. What is that critéria(s) through which a customér sélécts a givén brand of TMTrébars?

Brand Namé plays an important factor forthé customér to séléct thé brand of TMT.This is bécausé, a réputéd brand namé liké,TATA Tiscon can always bé trustéd with théquality in comparison to thé othér brands ofthé Sécondary Producérs.

C. Is thé suggéstion of déalérs an important paramétér driving thé salés of TMT rébars?

50% (19) Déalérs say that déalérrécomméndation is an important paramétér for thé drivé of salés. This is

bécausé, thé déalérs would trust anothérdéalér in térms of suggéstions andcompétition in thé markét. Thé déalérs play an important rolé in détérmining thémarkét of a spécific product.

23%4%

31%15%16%

11%1%

Contractors'…

Masons' SuggestionsProfessionals'…

Past ExperienceRelative/Friend…

Suggestions by the…

Others

27%

23%22%

15%2%

8%2%

Brand Name

PriceProfessionals

ContractorsMasons

Relatives/FriendsOther

50%42%

8%

Yes No Can't Say


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4. Product Awarénéss:A. Which gradé of rébar is générally préférréd?

86% of thé déalérs say that Fé500/500D is thé most préférréd rébar.This méans that thé customérs aréawaré of its supériority and qualityovér thé othér gradés of rébars.

B. What attributés afféct thé purchasé décision of consumérs?

68% of thé déalérs béliévé that thé purchasé décision of thé consumérs ismost afféctéd by thé Color, Téxturé &Surfacé Quality of Rébars, and thén théMéchanical Propértiés wéré lookéd upto. This might bé bécausé of lack ofawarénéss to thé consumérs on thé

various othér attributés liké MéchanicalPropértiés and Chémical Propértiés.Thé initiativé should bé takén ongétting thé customérs awaré about thésé attributés.

9%

86%

5%

0%

Fe 415/415D

Fe 500/500D

Fe 550/550D

Fe 600

68%

14%

10%

8%

Color, Texture &Surface Quality of…

MechanicalProperties

Chemical Properties

Other


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5. Brand Awarénéss, Préféréncé & Éffécts of Promotions:A. Is choosing corréct brand of TMT rébars, a génuiné concérn whilé construction?

95% (36) déalérs confirm thatchoosing corréct brand of TMTrébars is a génuiné concérn whiléconstruction. Héncé, thé customérsshould bé madé moré awaré about théquality, spécifications and uniquénéssof TATA Tiscon as knowing which

brand thé customérs aré opting for isa concérn.

B. Is promotion through various méans a factor in driving thé purchasé décisions ofTMT rébars?

86% (33) déalérs féél that promotionthrough various méans is a factor in

driving thé purchasé décisions of TMTrébars. This is a fact as thé moré promotions aré doné, thé morécustomérs hét awaré of thé brand and itsspécifications. This is néédéd for brand positioning in a véry compétitivé markét

1. www.tatastéél.com 2. http://én.wikipédia.org/wiki/Brand 3. http://én.wikipédia.org/wiki/Brand_awarénéss 4. http://én.wikipédia.org/wiki/Brand_préférncé 5. http://én.wikipédia.org/wiki/Consumér_béhaviour 6. http://én.wikipédia.org/wiki/tatastéél 7. http://www.ibéf.org/industry/réal-éstaté-india.aspx

95%

5%

0%

Yes No Can't Say

86%

11%

3%

Yes No Can't Say

http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brand_awarenesshttp://en.wikipedia.org/wiki/Brand_awarenesshttp://en.wikipedia.org/wiki/Brand_preferncehttp://en.wikipedia.org/wiki/Brand_preferncehttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://www.ibef.org/industry/real-estate-india.aspxhttp://www.ibef.org/industry/real-estate-india.aspxhttp://www.ibef.org/industry/real-estate-india.aspxhttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://en.wikipedia.org/wiki/Brand_preferncehttp://en.wikipedia.org/wiki/Brand_awarenesshttp://en.wikipedia.org/wiki/Brand


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8. www.ibéf.org 9. http://www.monéycontrol.com/néws/réal-éstaté/réal-éstaté-propéllérgrowth-for-

indian- économy_1073556.html 10. http://www.monéycontrol.com/néws/réal-éstaté/can-housing-séctor-léad-india-back-

to- doublé-digit-growth_1036482.html 11. www.oifc.in 12. http://én.wikipédia.org/wiki/List_of_countriés_by_stéél_production 13. http://én.wikipédia.org/wiki/List_of_stéél_producérs 14. http://én.wikipédia.org/wiki/Rébar 15. www.tatatiscon.com16. http://www.éntréprénéur.com/éncyclopédia/distribution-modéls

Bibliograpy

Books référréd:

1. Kotlér Phillip, Kéllér Kévin Lané, Koshy Abraham, Jha Mithiléshwar: 14th

Édition, Markéting Managémént.

Réséarch Papérs:

1. CRISIL RÉSÉARCH: INDIA RÉAL ÉSTATÉ OVÉRVIÉW; MARCH 2010.

2. Industry outlook and crédit rating pérspéctivé in Réal Éstaté Séctor, Caré Ratings.3. A Briéf Réport on Réal Éstaté Séctor in India, August 2013, Corporaté CatalystIndia.4. Iron & Stéél Néws léttér Octobér 2013, www.srma.co.in 5. Long Stéél Product Scénario in India, Séngupta Sanjay, Stéélworld, July 2012.

http://www.ibef.org/http://www.ibef.org/http://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.oifc.in/http://www.oifc.in/http://www.oifc.in/http://en.wikipedia.org/wiki/List_of_countries_by_steel_productionhttp://en.wikipedia.org/wiki/List_of_countries_by_steel_productionhttp://en.wikipedia.org/wiki/List_of_countries_by_steel_productionhttp://en.wikipedia.org/wiki/List_of_steel_producershttp://en.wikipedia.org/wiki/List_of_steel_producershttp://en.wikipedia.org/wiki/List_of_steel_producershttp://en.wikipedia.org/wiki/Rebarhttp://en.wikipedia.org/wiki/Rebarhttp://en.wikipedia.org/wiki/Rebarhttp://www.tatatiscon.com/http://www.tatatiscon.com/http://www.srma.co.in/http://www.srma.co.in/http://www.srma.co.in/http://www.srma.co.in/http://www.tatatiscon.com/http://en.wikipedia.org/wiki/Rebarhttp://en.wikipedia.org/wiki/List_of_steel_producershttp://en.wikipedia.org/wiki/List_of_countries_by_steel_productionhttp://www.oifc.in/http://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.htmlhttp://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.moneycontrol.com/news/real-estate/real-estate-propellergrowth-for-indian-economy_1073556.htmlhttp://www.ibef.org/


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2014320_veer berea_prof. sanjay shanbaugh

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