a synopsis on bsp

8/7/2019 A SYNOPSIS ON bsp

1/15

Synopsis on

PROCESS OF MARKETING AND CUSTOMERSATISFACTION AT SAIL, BSP

Submitted to:

Rashtrasant Tukdoji Maharaj, Nagpur University

Partial fulfillment ofDegree of Master of Business Administration

For the academic year2008-2010

Submitted by

SANDEEP MOHAN BADOLE

Under the supervision of

PROF. K. S. MUKHERJEE

Department of management studiesG.H Raisoni College of Engineering, Nagpur.


2/15

Synopsis on

PROCESS OF MARKETING AND CUSTOMERSATISFACTION AT SAIL, BSP

Submitted to:

Rashtrasant Tukdoji Maharaj, Nagpur UniversityOn dated 15th September 2009

Partial fulfillment of

Degree of Master of Business AdministrationFor the academic year

2008-2010Time frame

July 2009-August 2009

Submitted by

SANDEEP MOHAN BADOLE

Under the supervision of

PROF. K. S. MUKHERJEE

Department of management studiesG.H Raisoni College of Engineering, Nagpur.


3/15

A SYNOPSIS ON

PROCESS FOR MARKETING AND

CUSTOMER SATIFACTION


4/15

A customer is the most important visitor on our premises.He is not dependent on us. We are dependent on him. He isnot an interruption on our work. He is the purpose of it. Heis not an outsider on our business. He is a part of it. We are

not doing him a favour by serving him. He is doing us afavour by giving us an opportunity to do so.

- Mahatma Gandhi


5/15


6/15

OVERVIEW OF THE PROJECT

Marketing Department of Bhilai Steel Plant is known as marketing andstrategic planning department. It deals with the activities of marketing ofprime products and secondary products etc.

The marketing is done in two ways.

1. Marketing of prime product where activities are co-coordinated bycentral marketing organization.

2. Marketing of secondary product and coal chemicals are donedirectly by sale of product by SAIL (BSP) marketing of these

products are conducted by various sections by marketingdepartment of Bhilai Steel Plant through e-Auction process.

Marketing Department of SAIL (BSP) is being dividedunder various sections as:-

Market Development and strategic planning

Secondary product

Coal chemicals

Merchant mill Wire rod mill

Rail and structural mill

Billet and bloom mill

Plate mill

Export.

Functions of Marketing Department

To monitor the orders issued by CMO so that these orders fulfilled in

time.

Coordinate with CMO to get orders for an underutilized mill.

To sell the entire secondary product directly i.e. directly by SAIL (BSP).


7/15

Steps in the Marketing Strategy

Functioning of Marketing & Strategic Planning

Department Of Bhilai Steel Plant

Defining the marketingobjectives

Selecting the target market

Generating alternativemarketing mix

option

Selecting best marketing mixoption

Creating condition forimplementation fthis mix


8/15

Marketing & Strategic planning department of BSP acts as an interfacebetween Plant & CMO for Co-coordinating marketing activities with CMO forsale of prime products. Apart from this, it also carries out direct sale ofsecondary products and by-products generated in plant. The activity frame

work is given below in Fig-1

M & SP department facilitates in effective implementation of various

strategies adopted by BSP in enhancing customer satisfaction that are

enlisted below.

Market segmentation Internal customer

Co-ordination

with CMO/ITDfor sale of Prime

Products

Direct Sale of

Secondary/byproducts

Key Activities of

M & SP deptt.

Sales

Planning

Order

Mgmt

Key A/c

Mgmt

Compl-

aintHandling

Secondary

I & S items

CoalChemical,

Fertilisers

Granu.slag,

Misc items


9/15

satisfaction New product development Quality Improvement Customization. Customer service through

IT Maximizing Value added products. Partnership with

customers Key Account Management

MARKETING AND STRATEGIC

PLANNING

1. Handling of customer complaints: In case of any complaint by the

customer the complaint is sent to the GM quality and the particular

mill. The CMO has an application engineer group for commercial

settlement which inspect the material and if found defective, the

adjustment are made in the payment or the material is taken back.

2. Customer Feedback: Customer feedback is taken by this section on a

periodic basis in the form of customer satisfaction feedback reports. A

four point feedback is taken for increasing market share and for

customer retention. The basis pointer of the report is past

performance, sector growth, financial performance and purchases from

other supplier of steel. For major customer there is key Account

Manager who handles them. This is done to provide a single window

service to these customers.

3. ISO Activities: The various documents pertaining to ISO activities are

handled and managed here.

4. Training: This section overviews the training of new recruits, summer

trainees in the marketing department.

5. Product Development: The management research group at CMOKolkata studies the market demand and supplies feasibility which is

checked at the plant and further for the approval.

6. Strategic Planning: This section ascertains the product mix, quantum

exports, monthly tonnage and other parameters for plant according to

the demand.


10/15

7. Audit Applies: This division also coordinates the various audits that are

undertaken.

MARKETING SCENARIO

Without a perfect market goods can neither be purchased nor be sold.Marketing is one of the major and crucial department pillars of everyorganization and it is the case with SAIL. CUSTOMER SATISFACTION ANDQUALITY ASSURANCE, these are the two motives of SAIL for achieving their

goals and establishing their marketing division. It savings its CMO for itsmarketing division. Its headquarters is situated in Kolkata. BSP is one of themost important integrated steel plants of SAIL, which is earning profits forlast 45 years. It has established its position through a better service. BSP hasseveral departments among which marketing division plays a key role. Everydepartment has its own Branch Sale Office (BSO) who looks upon the orderof CMO. These orders are then sent to the plant for checking the availabilityand production for dispatch. All departments are linked through MIS fromCMO to each and every division of plant.The whole procedure of BSP for marketing is: customer sends their enquiriesincluding their requirement to CMO who looks at the order by the order

management system, which further sends these requirements to theregional office. Regional office sends the order according to the different tothe BSP of each region. After checking the material against TDC booklets bythe BSO and marketing division of plant, it is send to the customer accordingto the quantity demanded, with the same channel through wagons andtrucks as the case may be. The copies of invoice are sent to the customerand regional office concerned which is ultimately deposited in the bank toget in case of credit sale.

FOR MARKETING OF DIFFERENT ITEMS THE THREE

TYPE OF POLICY ADOPTED BY THE BSP ARE


11/15

MEMORANDUM OF UNDERSTANDING: It is an agreement signed

between the plant, the customer for assured quality and quantity.

ANNUAL BOOKING SELLING: It is an informal agreement where

customers assure the plant for purchase of certain amount throughout

the year.

SPOT SELLING: In this case BSP releases the tender and asks for

quotation from different customers.

MARKETING STRATEGIES

Any organization before setting up the marketing strategies must be clearwith some of the main points such as, business, mission, externalenvironment analysis, internal environment analysis, program formation,goal formulation implementation and feedback.The marketing strategy for an industrial product is quite different from thatof a consumer product. Therefore, marketing strategy of BSP product is verydifferent. Certain strategies like advertising door-door survey a productdemonstration not viable. The main aim is to maximize the recovery of

realization. More consideration is given to:- Potential customer

Feasible price

Production goods survey

Thus marketing is used to accomplish the goals of the organization. Thevarious marketing strategies used by the BSP are as follows:

Shifting focus from Tonnage to Profit: BSP is now laying emphasis on

profits rather than on mass production. It has taken to production ofproduct/ goods according to the customer needs and demand.

Cost control and cost reduction: An intensive cost reduction drive

yielded a saving of Rs 900 cr. in fiscal 1998-99 over and above the Rs 732

cr. Achieved in the previous year. This was primarily due to improvement

in operational year. This was primarily due to improvement in operational


12/15

efficiencies increase in productivity at all SAIL. Plans and better purchase

management of critical inputs.

Production according to market needs.

Improvement in techno economics better product mix, yield andquality: BSP has brought about improvement in techno economics leading

to better product mix yield and quality.

Production of High value products: Goods of high value are produced

in BSP which are in great demand by the market.

Better sales realization: Goods produced are to be immediately sold for

the smooth function of the organization. The marketing department tries

to sell most of the goods produced in the stipulated time; the quality and

price of the products are good therefore there is better sales realization.

Just In Time delivery: BSP is able to make delivery just in time because

it takes orders after consulting the production department so that they can

be delivered in the right time.

Better Project Management: Modernization at BSP has been integrated

with the business strategy of the composed five projects at cost of approx.

153.5 cr. was completed during the last year.

Waste management, diversification, Joint ventures etc: besides the

introduction of environmental friendly technologies like coal dust system inblast furnace commissioning of centralized dusting system etc. for waste

management has been carried out by BSP. BSP is also diversifying in the

areas like cement and power. It has also launched successfully joint

venture in e-technology with the USA.

Negotiated Pricing: BSP has started this strategy of fixing the price by

negotiation with the customers thus giving them a voice in the process.

Direct Dispatch: Direct dispatches from the plant constituted 50% of

total sales with over 3.6 million tons door to door delivery to customer.

Appointment of Authorized dealers: Appointment of authorized

dealers to service the small, far flung and rural demands helped in

enlarging the steel marketing and distribution network.

Marketing of new product: Taking advantage of the modern facilities

installed at its plant BSP marketed new product during the year like


13/15

thinner, gauge, Hr coils, and TUV certified plants, rails with less than 3

ppm hydrogen.

Multiple production Units: As SAIL has no. of units/steel industries,

customers can be assured about the delivery. Even if BSP fails to produce

what is has promised to the customer, it can get it from its sister concernand deliver it to the customer.

Competitive Price: BSP prices are very competitive. It produces quality

products and they are priced accordingly.

Product Development: BSP brings about continuous development in its

product to suit the needs and demands of customer like change in

chemistry, specification, composition etc.. It also makes use of new

technology for production.

International Standards: BSP follows the standard set up by

international standardization organization like ISO: 9000 quality

management.

Customer product mix: BSP has a better product mix, which is also

customized.

Export as a strategy: The Company has taken to exporting some of its

products to create new market and demand for itself. Total export

shipments by the SAIL in the year 1998-99 crossed 4.9 lakh tons of iron

and steel yielding foreign exchange earnings of Rs 585 Crores

Sales Promotion: The Company offer rebate to its regular customers and

the customer with whom it has an MOU. But this is not the case always.

Market Research: BSP has its own research laboratory. It is modest but

well equipped research and control laboratory development many new

products every year.

Other Measurement: Other measures include complete package offering

to project authorities and increasing presence in the cold rolling segment,

large dia-pipes segment etc.

CONCLUSION


14/15

We will conclude with the SWOT analysis. In my view the best

conclusions can be made by writing a SWOT analysis:

SWOT ANALYSIS OF BSP:

STRENGTH

1. It has country wide network of stockyard and dockyard.

2. Consistency in quality.

3. Customer perception.

4. SAIL product has international standard.

5. SAIL maintains a better customer relationship approach.

WEAKNESS

1. Quality of the product is slightly inferior as compared to the

competitors who are having the latest technology.

2. Not consistent to meet the market demand with its supply.

3. Inconsistent delivery of secondary steel products.


15/15

OPPORTUNITIES

1. Due to its wide network, SAIL can easily fulfil the demand of the

customer.

2. SAIL has a very strong base; it can diversify into production of different

goods as per the market requirement.

THREATS

1. Main threats are its competitors like:-TISCO, RINL, ESSAR STEEL, JINDAL

STEEL, etc.

2. Obsolescence of existing technology.

3. High cost of input materials.

4. Tight money market situation.

a synopsis on bsp

Documents