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A STUDY ON MARKETING OF SECONDARY AND BY-PRODUCTS AT
SAIL (BOKARO)
SUMMER PROJECT REPORT
Submitted to
CT INSTITUTE OF MANAGEMENT AND TECHNOLOGY
In partial fulfilment of the requirement for the award of
BACHELOR OF BUSINESS ADMINISTRATION
2010-2013
BY
KISHOR KUMAR
Reg No : 105702461272
Project executed at
SAIL
(A Government of India Enterprise)
Bokaro Steel Plant
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Bokaro Steel City, Dist- Bokaro (Jharkhand)
Under the guidance of
Mr. N. J PANDEY
Asst. manager (Marketing)
(Project Guide)
Bokaro Steel Plant
Jharkhand
Mr. Gurpreet singh
(Faculty Guide)
CTIMT Jalandhar
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DECLARATION
I, Mr. kishor kumar, the undersigned, hereby declare that the project work titled the
Pricing and Sales strategy of Secondary and by-products at
Bokaro Steel Plant is bonafide work undertaken by me at SAIL (Bokaro) in Partial
fulfilment of theregulations of CTIMT for the award of the BBA .
I further declare that no part of this report has been replicated from any other
Project work, article or book.
Place: Bokaro steel City
Date: (KISHOR KUMAR)
Acknowledgement
An endeavor is not complete and successful till the people who make it possible are given
due credit for making it possible. I take this opportunity to thank all those who have made the
endeavor of mine successful for me and for all.
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First and foremost I am very thankful to all the officers of Bokaro steel plant who really
helped a lot and guided me throughout my training session, without their help I would have
been unable to complete my project. These people really been kind enough in providing me
all kind of available data and information.
I would like to thank to Mr. A.J. KACHHAP (DGM, STORE), K.K. SANYAL (AGM,
BPP), Mr. N. KHASNOBIS (Sr. Manager, SSD), Mr. A.K. MISHRA (AGM, S & C),
Mr. C. SRIKANTA (DGM, Marketing) and Mrs. MEENA KAMAL (Sr. Manager,
Marketing) and I must pay special thanks to Mr. N.J PANDEY (Asst. Manager,
Marketing). All are from Bokaro Steel Plant.
I extend my sincere thanks to Mr. GURPREET SINGH, Faculty Member, CTIMT, Jalandhar
for having spared his valuable time with me and for all
the guidance given in executing the project as per requirements.
So, be taking a great opportunity to thank those entire people who help throughout my
project.
I also express my thanks to the officers and staff of the training institute, Bokaro Steel Plant.
KISHOR KUMAR
CONTENTS PAGE
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CHAPTER 1
EXECUTIVE SUMMARY
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1.Executive Summary
This study investigates the Pricing and Sales strategy of Secondary and by-products at
Bokaro Steel Plant. This study is done for SAIL; BSL
The present study was undertaken to see the mode of sale and pricing methods ofSecondary
Product of SAIL. Marketing Department is the newest genesis from the SAIL and attempts
to reach their where no corporate has ever ventured so far.
The survey was conducted in Marketing Department and Sales Coordination
department. I was to find how auctions, fixed price and tenders are used for marketing
purpose BSL.
Various steps involved are as follows. To know about the e-auctions of marketing
department. How they use this technique and 90% marketing and selling is done through
auction and rest will be taken through fixed price selling and tenders.
Data were mainly collected from marketing department of BSL.
BSL is the largest Steel manufacturing sector of India and is top ranked in the global fortune
500 companies.
During my training I had to find out mode of sale of secondary products of BSL. Primary
products are sold by CMO, Delhi. I passed through various stages of problems and
difficulties to accomplish the task of project work but it was a privilege for me to take this
opportunity a challenging work to study and observe "pricing and sales strategy of secondary
and by-products in BSL", which is a unit of SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in competitive
environment; Customer's satisfaction like quality is a journey and not a destination. It is
essential that everyone in the company have a clear understanding of what customer
satisfaction means if the plant aim to achieve leadership in customer satisfaction. While
improved customer satisfaction is necessary for ensuring prosperity of the company must also
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be recognized that ability of the company to satisfy its customers would depend on its ability
to continuously improve its profit and growth.
The basic objective behind the study carried out by me is to study the major contribution of
Secondary product to total sales, which is pre-determining for the success of the company. By
selling the Secondary product in local market company is earning profits. It is also creating
an employment in small scale industries and developing the economy.
CHAPTER 2
INDUSTRY PROFILE
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India is the eighth largest producer of crude steel in the world, accounting for 3.37% of the
global steel production in 2005. Indias finished carbon steel production grew to reach an
estimated 42.63mmt in 2005-06; primary producers alone contributed about 38% whereas
secondary producers contributed the rest. With reference in changes in economy Indian steel
industry is poised for massive expansion. Dramatic consumption growth over the last few
years has stimulated enormous expansion plans, facilitated by a relatively unexploited iron
ore raw material base. India is now being hailed as the new China, where crude steel
production soared from less than 100m tonnes in 1995 to over 400m tonnes in 2006.This
report focuses on detailed study about the Indian Steel Industry. Steel became an integral part
of development. It discusses basic steel manufacturing processes like Blast Furnace and,
Electric arc Furnace, industry value chain with a special reference to major raw material
trends and price trends of steel products. Demand supply dynamics has been discussed along
with key growth drivers and Export-Import scenario. It also talks about Issues & challenges
of the steel industry, mergers and acquisitions, government policies and regulations. Top 10
Leading Players in steel Industry have been profiled namely Steel Authority of India (SAIL),
Tata Steel, ESSAR Steel and JSW Steel in this report and analyzed on the basis of financial
and operational performance and compares their Competitive Positioning along with future
outlook in the light of increasing trend in investments in the domestic industry .Steel Industry
in India is on an upswing because of the strong global and domestic demand. India's rapid
economic growth and soaring demand by sectors like infrastructure, real estate and
automobiles, at home and abroad, has put Indian steel industry on the global map. According
to the latest report by International Iron and Steel Institute (IISI), India is the seventh largest
steel producer in the world.
With reference to development which revised Indian infrastructure, the origin of the modern
Indian steel industry can be traced back to 1953 when a contract for the construction of an
integrated steelworks in Rourkela, Orissa was signed between the Indian government and the
German companies Fried Krupp und Demag AG. The initial plan was an annual capacity of
500,000 tonnes, but this was subsequently raised to 1 million tonnes. The capacity of
Rourkela Steel Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group,
is presently about 2 million tonnes. At a very early stage the former USSR and a British
consortium also showed an interest in establishing a modern steel industry in India. This
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resulted in the Soviet-aided building of a steel mill with a capacity of 1 million tonnes in
Bhilai and the British-backed construction in Durgapur of a foundry which also has a million
tonne capacity. The Indian steel industry is organized in three categories i.e., main producers,
other major producers and the secondary producers. The main producers and other major
producers have integrated steel making facility with plant capacities over 0.5 mT and utilize
iron ore and coal/gas for production of steel. The main producers are Tata Steel, SAIL, and
RINL, while the other major producers are ESSAR, ISPAT and JVSL. The secondary sector
is dispersed and consists of: (1) Backward linkage from about 120 sponge iron producers that
use iron ore and non-coking coal, providing feedstock for steel producers; (2) Approximately
650 mini blast furnaces, electric arc furnaces, induction furnaces and energy optimizing
furnaces that use iron ore, sponge iron and melting scrap to produce steel; and (3) Forward
linkage with about 1,200 re-rollers that roll out semis into finished steel products for
consumer use.
Structural Weaknesses of Indian Steel Industry
Although India has modernized its steelmaking considerably, however, nearly 6% of its crude
steel is still produced using the outdated open-hearth process.
Labour productivity in India is still very low. According to an estimate crude steel output at
the biggest Indian steelmaker is roughly 144 tonnes per worker per year, whereas in Western
Europe the figure is around 600 tonnes.
India is deficient in raw materials required by the steel industry. Iron ore deposits are finite
and there are problems in mining sufficient amounts of it. India's hard coal deposits are of
low quality.
Insufficient freight capacity and transport infrastructure impediments too hamper the growth
of Indian steel industry.
Strengths of Indian Steel Industry
Low labour wage rates
Abundance of quality manpower
Mature production base
Positive stimuli from construction industry
Booming automobile industry
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OutlookThe outlook for Indian steel industry is very bright. India's lower wages and
favourable energy prices will continue to promise substantial cost advantages compared to
production facilities in (Western) Europe or the US. It is also expected that steel industry will
undergo a process of consolidation since industry players are engaged in an unfettered rush
for scale. This is evident from the recent acquisition of Corus by Tata. The deployment of
modern production systems is also enabling Indian steel companies to improve the quality of
their steel products and thus enhance their export prospects.
2.1COMPANY PROFILE
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Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a
fully integrated iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and defense industries and for sale in
export markets.
During struggle for independence, Pt. Jawaharlal Nehru, our first Prime Minister, had a very
clear vision about the role of Steel in the development of our country. Although TATA Iron
& Steel Company (TISCO) has been establishment in 1907 marking the beginning of Indian
Steel Industry followed by Indian Steel Co. (1918), they were too small to meet the
development requirements of a big country like ours. Therefore, in the 1st Industrial Policy
Resolution of the Govt., soon after independence, Govt. decided to establish Steel Plants in
Public Sector. However, work could be started at fast pace only in 1954, when Hindustan
Steel Ltd., was formed and three Steel Plants of 1 MT capacity each, were established with
provision of further expansion at Bokaro, Rourkela and Durgapur with assistance from
USSR, West Germany and U.K. respectively.
To improve the functioning of Steel Industry, Govt. decided to form a holding company
during 1972, which was named as Steel Authority of India Ltd., (SAIL) and the same was
incorporated on January 24, 1973, with an authorized capital of Rs.2000 crores.
SAIL was formed by registration of a company under the companies Act and not by the Act
of Parliament. Govt., decided to abandon the holding company concept in 1978 and a bill was
presented to the Lok Sabha. Accordingly, SAIL was again recognized in the following
manner.
Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International Ltd., Bhilai
Ispat Ltd., Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly owned subsidiaries of SAIL
merged into it and started functioning as Units of SAIL.
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MECON, HSCL and NMDC become independent Companies and started functioning under
Ministry of Steel. However, Kiriburu and Meghatuburu Iron Ore Mines were attached with
BSL as their Captive Mines.
Bharat Refectories Ltd. also became independent under the Ministry of Steel and refractory
units also came under them.
Thus, SAIL, at present, is having capacity of 12 MT of crude steel through its four integrated
Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Two special steel plants at Durgapur
and Salem produce a wide range of alloy and special steels. Marketing of the products from
these plants is done through a country wide distribution network consisting of a chain of
Stock Yards and distribution network.
SAIL today is one of the largest industrial entities in India. Its strength has been the
diversified range of quality steel products catering to the domestic as well as the Export
markets and a large pool of technical and professional expertise.
Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL
manufactures and sells a broad range of steel products, including hot and cold rolled sheets
and coils, galvanized sheets, electrical sheets, structural, railway products, plates, bars and
rods, stainless steel and other alloy steels. SAIL produces iron and steel at four integrated
plants and three special steel plants, located principally in the eastern and central regions of
India and situated close to domestic sources of raw materials, including the Companys iron
ore, limestone and dolomite mines.
SAILs wide range of long and flat steel products are much in demand in the domestic as wellas the international market. This vital responsibility is carried out by SAILs own Central
Marketing Organization (CMO) and the International Trade Division. CMO encompasses a
wide network of 38 branch offices and 47 stockyards located in major cities and towns
throughout India.
With technical and managerial expertise and know-how in steel making gained over four
decades, SAILs Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steelindustry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET),
Management Training Institute (MTI) and Safety Organization at Ranchi. SAILs captive
mines are under the control of the Raw Materials Division in Calcutta. The Environment
Management Division and Growth Division of SAIL operate from their headquarters in
Calcutta. Almost all SAILs plants and major units are ISO Certified.
OWNERSHIP AND MANAGEMENT
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The Government of India owns about 86% of SAIL's equity and retains voting control of the
Company. However, SAIL, by virtue of its "Navratna" status, enjoys significant operational
and financial autonomy
INTEGRATED STEEL PLANTS
1. Bokaro Steel Plant (BSL) in Jharkhand
2. Durgapur Steel Plant (DSP) in West Bengal
3. Rourkela Steel Plant (RSP) in Orissa
4. Bhilai Steel Plant (BSP) in Chhattisgarh
SPECIAL STEEL PLANTS
1. Alloy Steel Plant (ASP) in West Bengal
2. Salem Steel Plant (SSP) in Tamil Nadu
3. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka
SUBSIDIARIES
1. Indian Iron & Steel Company Limited (IISCO) in West Bengal.
2. Maharashtra Electrosmelt Limited (MEL) in Maharashtra
OTHER UNITS
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Raw Material Division (RMD) at Kolkata, West Bengal
Central Marketing Organization (CMO) at Kolkata, West Bengal
SAIL Consultancy Division (SAILCON) at New Delhi
Research & Development Centre for Iron & Steel (RDCIS) at Ranchi, Jharkhand
Centre for Engineering & Technology (CET) at Ranchi, Jharkhand
Management Training Institute (MTI) at Ranchi, Jharkhand
Central Power Training Institute (CPTI) at Rourkela, Orissa
SAIL Safety Organization (SSO) at Ranchi, Jharkhand
Environment Management Division (EMD) at Kolkata, West Bengal
Growth Division (GD) at Kolkata, West Bengal
Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand
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JOINT VENTURE
SAIL has promoted joint ventures in different areas ranging from power plants to e-
commerce.
NTPC SAIL Power Company Pvt. Ltd
Set up in March 2001, this 50:50 joint venture between SAIL and the National Thermal
Power Corporation (NTPC) operates and manages the Captive Power Plants-II of the
Durgapur and Rourkela Steel Plants which have a combined capacity of 240 MW.
Bokaro Power Supply Company Pvt. Limited
This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in
January 2002 is managing the 302-MW power generation and 1880 tons per hour steamgeneration facilities at Bokaro Steel Plant.
Bokaro Electric Supply Company Pvt. Limited
150 Another SAIL-NTPC joint venture on 50:50 basis formed in March 2002 manages
the 74 MW Power Plant-II of Bokaro Steel Plant which has additional capacity of
producing tones of steam per hour.
UEC SAIL Information Technology Limited
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This 40:60 joint venture between SAIL and USX Engineers & Consultants, a subsidiary
of the US Steel Corporation, promotes information technology in the steel sector.
Metaljunction.com Private Limited
A joint venture between SAIL and Tata Steel on 50:50 bases, this company promotes e-
commerce activities in steel and related areas.
SAIL-Bansal Service Center Pvt. Ltd.
SAIL has formed a joint venture with BMW industries Ltd. on 40:60 bases to promote a
service centre at Bokaro with the objective of adding value to steel.
North Bengal Dolomite Limited
A joint venture between SAIL and West Bengal Mineral Development Corporation ltd on
50:50 basis was formed for development of Jayanti Dolomite Deposit, Jalpaiguri for
supply of Dolomite to DSP and other plants.
Romelt-SAIL (India) Ltd
Romelt Technology developed by Russia for reducing of iron bearing materials, which is
carried out with carbon in single A joint venture between SAIL, National Mineral
Development Corporation (NMDC) and Russian promoters for marketing stage reactor
with the use of oxygen.
Bhilai JP Cement Ltd
SAIL has also incorporated a joint venture company with M/s Jaiprakash Associates Ltd
to set up a 2.2 MT cement plant at Bhilai. Likely to commence operations by March'2010.
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BOKARO STEEL PLANT
A PARTNER IN NATION BUILDING
INTRODUCTION
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape in
1965 in collaboration with the Soviet Union. It was originally incorporated as a limited
company on 29th January 1964, and was later merged with SAIL, first as a subsidiary and
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then as a unit, through the Public Sector Iron & Steel Companies (Restructuring &
Miscellaneous Provisions) Act 1978. The construction work started on 6thApril 1968.
The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum
indigenous content in terms of equipment, material and know-how. Its first Blast Furnace
started on 2nd October 1972 and the first phase of 1.7 MT ingots steel was completed on 26th
February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage
have already been commissioned and the 90s' modernization has further upgraded this to 4.5
MT of liquid steel.
The new features added in modernization of SMS-II include two twin-strand slab casters
along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on 19thSeptember, 1997 and the Continuous Casting Machine on 25th April, 1998. The
modernization of the Hot Strip Mill saw addition of new features like high pressure de-
scalers, work roll bending, hydraulic automatic gauge control, quick work roll change,
laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient
pusher type furnaces. A new hydraulic coiler has been added and two of the existing ones
revamped. With the completion of Hot Strip Mill modernization, Bokaro is producing top
quality hot rolled products that are well accepted in the global market.
Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot
Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and
Galvanized Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material
base for a variety of modern engineering industries including automobile, pipe and tube, LPG
cylinder, barrel and drum producing industries.
Directions
Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in India.
The modernization plans are aimed at increasing the liquid steel production capacity, coupled
with fresh rolling and coating facilities. The new facilities will be capable of producing the
most premium grades required by the most discerning customer segments.
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Brand Bokaro will signify assured quality and delivery, offering value for money to the
customers.
VISION
To be a respected worldclass corporation and the leader in Indian Steel business in quality,
productivity, profitability and customer satisfaction.
CORE VALUES OF SAIL
HUMAN RESOURCE
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CustomerSatisfaction
Concernfor
People
ConsistentProfitability
Core Values
CommitmentofExcellence
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SAILs total manpower at the end of 30 April, 2010 stood at around 26,288.
The companys labor productivity 244.02 tones/man/year as on 30.04.10
Scrap and Salvage Department
As the name signifies, the department works with Ferrous [Iron & steel] scrap to salvage it &
make it useful by adding value to it. SSD has a dual role to play in overall scheme of things
in the works division. Primarily it has to supply Iron and Steel scrap to Steel Melting Shop
(SMS) as a technological input in the Steel Melting process. Secondly, the role of SSD is to
collect all the Ferrous Scrap (waste for the place of origin) and bring it to the department to
transform it into a useful product. Every department of the plant from Coke Oven to Cold
Rolling Mill produce mental waste termed scrap. This may be in the form of maintenance
waste e.g. broken or worn out parts, damaged structure or equipment or may be process
arising. The prime products continue on their production flow towards the final defined
output, while the arising has to drop out as they are not suitable chemically, mechanically or
by size and shape. In the shape of fish tails or irregular edge trimming or produce which are
below the planned size. In a nut shell SSDs role is to ensure that all Iron and Steel Scrap
(unwanted at place production) are transported to site processed and transformed to usable
shape, size and quality (free of slag etc.) and transported SMS Magnetic Scrap Yards for
using as coolant in the converter bath. Surplus scrap after supplying the requirement of scrap
is offered for external sale to generate cash resources for the Company.
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TYPES OF PRODUCTS
In Bokaro Steel Plant, the finished products are categorized into three parts:
1. Prime Products: -
These are the actual products, which are originally produced for example, blooms, billets,
channels, rounds, angles etc.
2. By-Products: -
These products are not originally produced by Bokaro Steel Plant, but are outcomes while
producing the prime products.
3. Secondary Products: -
These are the defectives or rejected materials due to improper mixing of chemical
components or fail to meet the optimum requirements. Scraps generated inside plant are also
termed as Secondary products. The secondary products used here in after will mean ferrous
materials generated from various production units which can either suitably be used for re-
melting to produce iron and products or offered for sale if rendered surplus in production
process for example Defective Heavy blooms, Defective Rails, Rail cutting, Rod cutting,
Scrap etc.
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Following Items fall under the category of Secondary Products:-
(A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG
1. MS SLAB END CUTTING WITHOUT FISH TAIL
2. MS THICLE PLATE CUTTING (25-40 MM) MIXED W.FR.
3. SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS.
4. LIQUID NITROGEN.
5. FINE IRON CHIPS FROM IMP (FE-70% APP).
6. FERROUS SIELPHATE LOOSE.
7. BE GRNAULATED SLAJ (BOTH BY FIXED PRICE AND TENDER).
8. LIQUID ARGON.
9. PIG TRON.
10. TURNING & BORING.
(B) OTHERS
1. CARBIDE SLUDGE.
2. U/R AMC/MCB BRICKS.
3. U/R MAJ CHROME MAJ BRICKS.
(C) COAL CHEMICALS AND BY PRODUCT
1. MG BENZENE
2. NG TOLUENE
3. LS NAPTHA
4. SB OIL
5. HP NAPHTHALENE
6. ANTHRANCENE OIL
7. EXTRA HARD PITCH
8. HARD MEDIUM PITCH SOLID STATE9. HARD MEDIUM PITCH LIQUID STATE
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NECESSITY OF SELLING THE ''SECONDARY PRODUCTS"
The net sales realization from all the Secondary products, By-Products and co-products of
BSL is around Rs.600 crores which is quite more than money the big industries. Out of this
Steel Scarp arising itself brings about Rs.15200 cores of money every year. Re-production of
main products from the; secondary products requires re-melting it again for the required
composition of the materials as per the desired specification.
By selling it to the different Mills/traders/Processors the plant earn around Rs.4000 per tones
of the direct profit than by re-producing it to the main product. The traders /processors/re-
rollers, use these as a raw materials for different finished products making huge profits, the
plant is also not losing anything.
Profit is the main aim of every business, and when the realization of these products for the
finished products proves to be costlier, the management plant decided to sell it to the local
market.
By selling secondary Products to the Local market new industries are developed for re-rolling
the Secondary materials to make finished products. It has also increased the small-scale
industries and employment opportunities.
Last year average price of scrap product were between Rs.12000/ton to Rs.16000/ton
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Latest Price of different By-Product which BSL were sold in April & May 09 with
previous year price
Item 2007-2008 2008-2009 2009-2010
Hard Med Pitch Rs.16628 Rs.23331 ------
Ferrous Sulphate ------- ------- Rs.6000
Naphthalene Rs.47864 Rs.42793 Rs.42900
Anthracene oil Rs.13805 Rs.18511 Rs.13200
Benzene Rs.38354 Rs.30961 Rs.32900
Toluene Rs.39603 Rs.39080 Rs.35300
LS Naphtha Rs.32392 Rs.31029 Rs.31050
S Boil Rs.20533 Rs.19588 Rs.18000
ROLE OF MARKETING DEPARTMENT
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MARKETING DEPARTMENT OFBOKARO STEEL PLANT
Marketing Department is one of the Departments under Materials Management Division of
Bokaro Steel Plant. Marketing Department is entrusted with the responsibilities to sell BSLsSecondary Products, By-Products/Waste Products, and Idle Assets etc.
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The Marketing Departments sales procedures are covered by the guidelines given by SAIL
Corporate office DELHI, and is given by CMMG (CORPORATE MATERIAL
MANAGEMENT GROUP), the objective of which is To sell the materials in a fair and
transparent manner to achieve maximum possible revenue to the company
(a) Marketing of prime products of SAILs plant including BSL is done by CMO (Central
Marketing Organization) which is a unit of SAIL.
(b) Marketing of secondary products and coal chemicals are done directly by Marketing
Department of BSL. As a matter of fact, the Secondary & By-Products are marketed by the
individual Plants only.
Marketing of these products are conducted by various sections by marketing department of
Bokaro Steel plants. It is engaged, with marketing of Primary Products for home sale or
export through CMO. The 4.0 Million tones section known as plate mill section dealing with
plates. Now this section has got ISO - 9002 certificate.
The secondary section deals with the secondary Products, it includes scraps of iron and steel
slag, coal and coke fractions, coal chemicals.
The Marketing development section deals with the MIS and strategic Planning activity come
under this section.
The Export section deals with the activities of the exports in respect of Iron and Steel items
produced by Bokaro steel plant.
ORGANISTATION CHART OF MARKETING DEPARTMENT
(BSL)
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GM (Marketing)
Jr. Mgr. (Co-ordn.)/Mktg.
Cord, HK, Admn. & Est. Training
Officer DGM (Mktg.)
Audit, Vigilance, RTI, & other queries
reply, Contract Cell(MM), Sec. Sales
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FUNCTION OF MARKETING DEPARTMENT
1. To monitor the orders issued by CMO, So that these orders can fulfilled in time.
2. Put pressure on CMO, to get orders for an underutilized mill.
3. To sell all the secondary products directly i.e. directly by BSL and by CMO.
4. On day to day basis it takes care of the dispatches i.e. daily dispatch are checked.
POLICIES OF MARKETING
Marketing Planning has responsible function in the working of marketing department. All the
risky developments, taking out solution to cripple `situations, this section carries out product
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AGM(Mktg.)
Sec. Steel Ad & Est, QC, ISO,
DCA, Contract Cell(MM)
Sr. Mgr.
(Mktg.)
Slag, Waste,
Iron,
Smug. Scheme
Sr. Mgr. (Mktg.)
Idle Assets, U&S, Surplus
Sr. Mgr. (Mktg.)
Coal& Chem., Zinc
Dross, Ammonium
Sulphate & Ferrous
Sulphate
Manager
(Mktg.)
Reports, Price
Monitoring, MIS
Jr. Mgr.
(Mktg.)
Secondary
Steel, Safety
Officer
Jr. Mgr.
(Mktg.)
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pricing and related activities, some of the programmes, policies and procedures are as
follows:-
I) Positioning the product a value based place in customer mind.
II) Finalize annual sales plan and quantity, monthly, weekly, and daily rolling programme
of Rolling mills in consultation with CMO and mills. This plan is based on the sales
forecast receive from JPU SPL/ Iron and steel controller.
III) Optimizing the product-mix by proper utilization of available stocks.
IV) Receiving Enquiries and complaints, cancellation of orders etc.
V) Coordinating the works of mills and traffic department so as to maximize dispatches.
VI) Co-ordinations with CMO from stages of enquiry, for exports, development of new
Profiles, sections, modification of product scheduling till the orders are completed.
VII) Development of new qualities of steel.
VIII) Periodical market surveys of products to analyze the market position.
IX) Implementation of suggestions received from the customers feedback.
X) Ensure customer satisfaction by meeting customers regularly; provide redress to their
problems and fulfillment of demand.
Pricing policy and Sales Procedure:
PRICING:
Fixing the price of a product is the most vital function in the whole process of the marketing
and it should be done after proper market study and requires decision making ability. If price
is too low the company will lose revenue and if the price is too high it will lose customers
resulting in loss of revenue valuable customers. Coal chemicals are the main product which isto be marketed by the Marketing Department of Bokaro Steel Plant. Almost all the products
are sold on the fixed price basis. This is due to the fact that the company does not enjoy
monopoly in the said market and the price is totally market driven.
The policy adopted by the marketing department for pricing of materials is largely guided by
the price offered by the bidders during the auction. The various factors taken into
consideration while pricing the re-rollable items can be enumerated as follows: -
(a) Prices offered in the auction sales.
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(b) Quantity of material to be lifted.
(c) Managing director's approval.
The average of the prices offered by the bidder during auction is taken as the basis to fix the
prices of materials to be sold through marketing department. Further the techniques of break-
up-pricing are adopted i.e. the larger the quantity purchased lower will be the prices. This
technique encourages the buyers to purchase larger quantity. Finally the managing director
approves the prices set by the pricing committee. On this basis, a price list is prepared for all
the potential buyers. Price list also indicates the sales tax and Excise duty to be levied. Thus
the interested parties place their orders with the marketing department on the basis of price
list reviewed every month. Every customer is required to have a security deposit amount of
Rs.1 lakh. The payment for the material required is to be in advance. The material is
supposed to be lifted on the specified date on account of delay the party has to pay the
difference in the prices, if there is any increase in subsequent month.
Standing Pricing Committee:
The committee reviews the price of various products and takes decision in favor of
maximizing the profit. It holds meeting at least once in a month. But the volatility of the
market and pool of different products lead to a number of meeting of the committee in quick
succession.
The committee consists of:
GM (Utility), Chairman
GM (Marketing), Convener
DGM (Finance), member
DGM (Sales Coordination), member
DGM (Stores), member
DGM (BPP), member
For Scrap goods the DGM (SSD) replaces the DGM (BPP). Rests of all the members are
always present in all the meetings.
While deciding the price following points are kept in mind:
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Dispatch of the last month.
Material in stock.
Forecast of next month.
General market condition.
Availability of transport facility.
GM (Marketing), as per the need, decides the frequency and time of meetings to be held.
Minute report of all the meetings is prepared and it contains the existing price and the
proposed price. The final price is moved to the MD through the official channel including
GM (Marketing), Executive Director (MM), GM (Finance and Accounts), and ED (Works).
After the MDs approval the price becomes applicable and the circular indicating the revised
price is printed, issued and distribution to the customers and all the concerned departments.
DISTRIBUTION
For the purpose of distribution of steel (as per JPC) policy in fashion, customers are
categorized into A, B, C & D. Priority sector customer e.g. Defense, Railways etc. are under
category A and about 60% of the product allotted to them. The balance 40% is kept for the
category B, C & D.
On the other hand for sale of scraps there is no such policy adopted by Bokaro Steel Plant.Customers are served on first come first served basis.
CHANNELS
Bokaro steel plant has zero level channels as it directly sells to the customers. There is no
intermediate among producer and consumer. Marketing Department always remains in
contact with the customers extracts information about the current market situation on the
basis of interaction between them.
SALES PROMOTION
Sales Promotion consists of a diverse collection of incentive tools designed to stimulate
quicker or greater purchase of particular product. As a part of promotional activities, BSL is
employing following activities:
a) Discount slabs is provided to boost the sales, description of which is given below:
Up to 10,000 tones ----- No Discount
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10,000 to 15,000 ----- 15% Discount
Above 15,000 ----- 20% Discount
b) To find new customers and to inform customers at far distant areas Tender Notice
given in the newspaper for sale of scraps. Best among the application is acceptedwith a view to get the best revenue.
c) Sometimes when new item is to be sold sales notice is given in the newspaper. But
most of the time local customers get informed from other customers.
MARKETING STRATEGIES OF BSL
Steel being an industrial commodity it is very necessary to maintain customer relationship for
profitability and smooth running of company.
1. Customer Satisfaction
BSL adopts following practices for customer satisfaction.
a. Procedure / process adapted to access current / future expectation of customers.
b. It induces market research visiting customer premises attending to customer complaints.
c. CMO has Market Management Group where specialists monitor changing demand pattern
and development in each Market segment is carried on.
d. It has posted market development officers at various locations that are its eyes and ears for
monitoring current and future expectation of its customer.
e. The Business-planning department is exclusively meant to study customer's changing
demand scenario and assess current and future expectation.
f. To understand customer needs seminars and workshops are also organized by BSL.
Building Customer Relationship
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5 DOCUMENTATION
With the dispatch of product the Finance department calculates the total cost of product as
per demand order. Certain receipts and bills quoting the material code, nature, quantity, and
all expenses are sent to connected stockyard. The product will be then released to the
concerned person after proper and complete payment to the pay-in- authorities is made.
MARKETING OF SECONDARY PRODUCTS
During the seventies and sixties when the plant was one million-tones and2.5 million-tonnes
capacity respectively, arising of secondary products was limited and such arising was
recycled for re-melting. Therefore there was no scope for marketing in other words it was not
economical. The plant capacity has been increased from 2.5 million tons to 4 million tones in
the late sixties. New technology has been adopted while increasing the capacity of the plant
where by the use of arising for re-melting drastically reduced. This has given more impact to
the making of secondary product.
In the nineties we have seen lot of changes in the economic scenario of the country. The
concept of more employment in Public Sector Enterprises has changed to more profits. There
by the plant also has geared up its strategy towards this end. One of the strategies adopted by
the plant for increasing the profit is marketing of secondary products.
In the recent years a number of foundries and re-rolling Mills come into existence throughout
the country. These small scales Sector need the "Secondary products" as input raw material
for their production. The company has engaged in educating them the use of secondary
products for different kinds of end products for consumption of general public. The plant
extends all types of facilities and assistance to these small-scale units. This, in turn gives
scope for more employment opportunities.
The plant for marketing has adopted following strategy:
1. Committed delivery.
2. Competitive price
3. Quick complaint settlement.
4. Culture of customer service.
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It is necessary to mentioned here that the companies' profit consists of 10% turnover of
secondary products for the Last two years.
PLANNING FOR SALE OF SECONDARY PRODUCT
1. Marketing Recovery Department (MRD) works out the quantum of different types of scrap
available for sale on monthly basis. This is determined by ascertaining the total scrap stock atthe beginning of the month. Scrap arising during consumption. The remaining quantity is
considered for sale. A, monthly report on availability of scrap is prepared by MRD and sent
to marketing department.
2. Marketing Department finalizes the plan for actual quantity of scrap to be sold in
consultation with MRD. Marketing department finalizes mode of sale, terms and conditions
for sale, locations and commercial aspects.
3. The pricing committee consist of Managing Directors fixes the price of each type of scrap.
4. Marketing department obtains MD's approval on price fixed by pricing committee.
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PROCEDURE APPLIED FOR SALE OF SECONDARY PRODUCTS
1. After obtaining approval of quantity and price for sale, Marketing department scrutinizes
the demand from various parties, examine the Priorities and issue "offer letters" to respectiveparties. The terms and conditions for sale are also enclosed with the "offers Letter"
2. About one third of the quantity of material to be sold during the year is offered to the
actual users, subject to registration of demand.
3. For the balance quantity to be sold at prices fixed by pricing committee, preference is
given to actual users over traders. If there are no actual users, the material may be offered to
traders giving preference to registered traders over others.
4. First preference is given to the actual users for allotment of scrap against particular
category of users. Scrap processing units are given second preference for such allotments.
5. The amount received from the party towards advance payment and security deposit is
forwarded to finance department by marketing department after recording the details in the
register.
6. Parties are allowed to visit the respective location disposals site, and inspect the scrap
offered for sale.
7. Marketing department prepares sale order for the parties who have accepted the offer. Sale
orders are issued party wise and category wise i.e. individual sale order covers such
categories like C I scrap, steel scrap, re-rollable, slag and waste products.
8. Based on the deposit made by the party, finance department intimates to marketing
department about release of requisite scrap for supply.
THE STRUCTURE OF THE PROCESS OF SALES AND MARKETING
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PRODUCTS
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DEMAND REGISTRATION OF BSL
Marketing department of BSL sales homogeneous steel scrap at fixed price. For this purposethe procedure for registration of demand and offers is as below:
1. Preference for sale of material given to local parties and those, which are actual customer.
Material is not sold for trade.
2. Sale of material made to re-rolling mills and scrap processing units and the lots of sale
between them maintained at 67:33.
3. Based on the above consideration offer letter issued to the party offering a quantity,
which has been lifted by them during the last preceding year or allocated by the state
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PRIMARY (SPECIFIC PARAMETER) SECONDARY/BY-PRODUCTS
CMO (KOLKATA) UNITS- BSL, BSS, RSP, DSP etc
BSL MARKETING
METHOD OF SELLING
E-AUCTION SALE TENDER FIXED PRICE SALE
BSL MARKETING (MAIN
SECTION)
STEELCHEMICAL &
BYE-PRODUCTS
SLAGS & WASTE
PRODUCTSIDLE ASSETS PRICING
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industries, Department. In the offer letter party is advised to complete commercial formalities
e.g. submission of Die Registration Certificate etc.
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Selling of Secondary & By-Product
This involves a direct marketing process. The management of BSL in consultation with the
official of the market development and customer service department work as group for the
sale of these items. Different modes of selling are used for these products
MODE OF SALE
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Fixed
Price
Sale
E-auction
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CHAPTER 3
PROBLEM FORMULATION
Page 39
Tender
Inter
Plant
Transfer
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3.1 BACKGROUND OF THE STUDY
Bokaro Steel Plant is the largest steel plant in India. It is the fourth integrated public sector
steel plant in India built with Soviet help. It is hailed as Indias first swadeshi steel plant, built
with maximum indigenous content in terms of equipment, material and know how. Brand
Bokaro signify assured quality and delivery, offering value for money to the customers. It is
situated in Jharkhand.
The company has to identify what all improvement should be done toincrease the sales of its secondary and by-products and where the products of BSL are
lacking as compared with the competitor.
3.2 RESEARCH PROBLEM
Though Steel Authority of India Limited (SAIL) is the leading steel maker
company in India, the customers of secondary and by-products prefer other steel company forpurchasing secondary and by-products due to the higher price of secondary and by-products
of Bokaro steel plant.
3.3 SIGNIFICANCE OF THE STUDY
To know the customer preference of different secondary and by-products brands
with their corresponding prices and selling procedures among customers
Hence on, to provide information that will help SAIL to improve its service and
be competitive with other brands (Tata, Essar, Ispat) in the market.
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CHAPTER 4
RESEARCH PROCESS
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4.1 OBJECTIVE OF THE STUDY
To find the extent to which price affect the sales of secondary and by-
products.
To find the view of customers on the pricing and selling methods of
secondary and by-products adopted by BSL.
To find the reasons for brand preference.
To find the extent to which price affect the sales of secondary and by-products.
To find the selling methods preferred by the customers.
4.2 SCOPE OF THE STUDY
The study was conducted over a period of one and half months from
Mid April to May, 2010. The study includes the customers of secondary and by-products
in Bokaro district
4.3 RESEARCH METHODOLOGY OF THE STUDY
Type of Research- Descriptive Research
Data Source-
Primary Data: Interview, Questionnaires.
Secondary Data: Internet, previous and current records and magazines
published by BSL.
Sampling technique- Convenience sampling
Data collection Tools- Questionnaire method
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Area of study- Bokaro district
Population- Customers in the towns of Bokaro district
Sample Size- 25 customers
Data analysis and interpretations using percentage analysis
4.4 DEFINITIONS
1. PRICING STRATEGY:
Pricing strategy is the price planning that takes into view factors such as firms
overall marketing objectives, consumer demand, product attributes, competitors
pricing and, market and economic trends
OPERATIVE DEFINITION: The term pricing strategy here means the link
between BSL objectives, financial goals, brand promise, merchandising strategies andprice on the shelves of Secondary and By-products taking into consideration the
strategy of its competitors.
2. SALES STRATEGY:
Sales strategy is the planned approach- management, policy formation, prospect
identification and qualification, sales presentation and order generation aimed atachieving a firms sales quotas or targets.
OPERATIVE DEFINITION: The sales strategy in this research is referred to as
the sales presentation, prospect identification, policy formation, order generation
of BSL aimed at achieving BSL sales targets. Their aim to achieve sales targets of
Secondary and By-products is studied here.
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CHAPTER 4DATA ANALYSIS
AND
INTERPRETATION
Classification of customers
Trader Manufacturer Processor others
6 14 3 2
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Interpretation
The above graph shows the different category of customers for secondary and by-products. Manufacturers were found to be highest among the different types of customers.
Reason for purchase from BSL
Quality Cheap transportation Local market price
11 7 5 2
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Interpretation
It was found from survey that most of the customers of secondary and by-products
prefer to purchase from BSL because of local market and quality.
Satisfaction with respect to quality
Yes No
23 2
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Interpretation
Most of the customers of secondary and by-products of Bokaro Steel Plant are
satisfied with the quality of the product.
Types of products purchased by customers
Secondary steel By-products Slag Idle assets
10 11 3 1
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Interpretation
Most of the customers of secondary and by-products in Bokaro district deals with
the secondary steel and by-products. Though idle assets and slag also generate huge revenue
to Bokaro Steel Plant but there are only few customers of idle assets and Slag are in Bokaro
district.
Brand familiarity
Yes No
18 7
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Interpretation
The customers of secondary and by-products are dealing mainly with two brands.
Most of the customers are dealing with BSL and TATA steel both. Some customers are
dealing with BSL and ISPAT steel and ESSAR steel.
Reason for selecting more than one company
Low price High quality Better service better selling methods others
4 7 5 1 1
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Interpretation
The diagram indicates the reason for selecting more than one company for
purchase of secondary and by-products. Most of the customers prefer due to high quality of
secondary and by-products in other steel plant while some prefer other steel plant because of
better service that they get in other steel plants.
Difference in price between BSL and other steel plants
Yes No
20 5
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Interpretation
This clearly indicates that there is a price difference between BSL secondary and
by-products to other steel plants. Hence, to be in competition with other steel plants
secondary and by-products, BSL has to decrease its price of products. Since, cost conscious
customers always go for a brand that serves his purpose at a minimum cost.
Difficulties while dealing with BSL
Yes No
14 11
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Interpretation
Most of the customers find difficulties while dealing with Bokaro Steel Plant. Most
of them find lack of single window system while dealing with BSL. This leads to slow
process of trading. Some customers also want better customer service.
Any better selling adopted by other steel plants?
Yes No
3 22
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Interpretation
Most of the customers believe that the current selling methods adopted by Bokaro
Steel Plant are good. Only 3 customers found better selling methods adopted by other steel
plants.
Complain registered
Yes No
11 14
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Interpretation
Most of the customers do not complain about the problem they faced while
trading with BSL because they dont feel management will be serious about their problems.
So, customers confidence towards management of BSL should be increased.
Complaints executed
Yes No
7 4
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Interpretation
Only 11 customers said that they registered their complaints about the problem
they faced in trading with BSL. Out of which 7 said that their problems are executed. So,
BSL is friendlier towards customers.
Types of by-products purchased
Benzene tolueneS.B.oil Hard medium pitch L.S. Naptha
9 5 3 1 2
Anthracene oil Ammonium sulphate extra hard pitch
2 9 1
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Interpretation
To get the information about types of by-products purchased by customers is also
very important. Since, each customer buys different types of by-products. Most of the
customers buy more than one by-products.
No. Of years while trading
Below 2 years 2years-4years above 4 years
4 5 16
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Interpretation
Of the customers of Bokaro steel plant secondary and by-products most of them are
trading with more than 4years. This may be the reason for the large customer base of BSL insecondary and by-products market.
Pricing method preferred
Fixed price e-auction
4 21
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Interpretation
Most of the customers prefer e-auction because it is easy and fast method for
trading unlike other methods. Customers get their value for the time they spent in trading
in e-auction
Mode of transportation
Railways roadways
7 18
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Interpretation
From the survey it was found that most of the customers of BSL are using
roadways for transporting materials from Bokaro steel plant because most of them are
purchasing secondary steel and that are mostly transported through roadways in localmarket.
Main benefits received from BSL
Quality Price Availability Transportation discount structure
15 3 9 7 4
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Interpretation
The main benefits customers receive while trading with Bokaro steel plant is
quality of secondary and by-products. Availability of products is 2nd major benefits that are
received by customers. Most of them receive a combination of benefits from BSL.
Does volume limit satisfy needs of customers?
Yes No Somewhat
7 13 5
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Interpretation
The above graph shows the satisfaction level of customers regarding volume limit
for the purchase of secondary and by-products. Most of the customers are not satisfied with
the volume limit of products.
Experience with marketing personnel
Good Bad Excellent
22 2 1
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Interpretation
This indicated the experience of customers with the marketing personnel while
trading with BSL. Most of the customers are having good experience with the marketingpersonnel. Few customers are having bad experience with marketing personnel.
Accessibility of Information about bids to be taken place
Highly dissatisfied dissatisfied neutral satisfied highly satisfied
2 4 5 13 1
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Interference
The accessibility of the information about the bids to be taken place is very
important because it increases the number of customers in the bids and hence marketbecomes competitive. Most of the customers are satisfied about the accessibility of the
information.
Order handling procedure of BSL
Good bad poor excellent
20 2 2 1
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Interpretation
From the survey it was found that most of the customers of Bokaro steel plant are
happy with the order handling procedures of Bokaro steel plant. Since, there is a lot of
competition in market for selling of secondary and by-products. So, for being in the
competition with other steel plants BSL is having good order handling procedure and that
will make his customers happy.
Satisfaction with price of secondary and by-products
Yes no
12 13
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Interpretation
Price is one of the most important factors which customers are taking in
consideration while purchasing products. From the survey it was found that customers are not
happy with the price of the product. Hence, BSL should decrease its price of the products.
Satisfaction with the current selling methods of BSL
Yes no
21 4
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Interpretation
The customers of secondary and by-products in Bokaro steel plant are satisfied
with the current selling methods of Bokaro steel plant. Some of the customers are notsatisfied with the current selling methods of BSL but they are not able to give proper reason
for their dissatisfaction.
Overall Experience while dealing with BSL
Highly dissatisfied dissatisfied neutral satisfied highly satisfied
2 3 8 10 2
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Interpretation
The above graph shows the experience of customers while dealing with Bokaro
steel plant. Most of the customers said that they are satisfied with the experience whiletrading with BSL. But, there are a large number of customers who also said that they are not
happy with BSL.
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CHAPTER 5
SUMMARY OF FINDINGS
SUMMARY OF FINDINGS
1. Most of the customers belong to the category of manufacturers i.e. they are using
secondary and by-products of BSL as a raw material.
2. Majority of customers prefer to purchase secondary and by-products from Bokaro
steel Plant because of local market and quality but they find price is higher
compared to the quality.
3. Majority of the customers are satisfied with the quality of the secondary and by-
products of BSL and that is a big advantage for BSL.
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4. Of the four major types of products produced by BSL in Secondary and by-
products division, most of the customers are purchasing secondary steel and by-
products from BSL.
5. Most of the customers deal with Bokaro steel plant and TATA steel for purchase
of secondary and by-products.
6. Low price, better service and high quality are the major concerns that the
customers looks into for preferring a particular steel plant for secondary and by-products.
7. Majority of customers responded that other steel plants are providing secondary
and by-products at a lower rate.
8. Most of the Customers responded that they find difficulties while dealing with
BSL.
9. E-auction is the most reliable selling method and majority of customers are happy
with it. The other methods of selling adopted by BSL like tender, fixed price aresame as the other steel plant and customers are satisfied with those selling
methods.
10. Most of the customers dont register complain about the problem they faced
during purchase but majority of customers who registered their complain get
solution for that. So, BSL has to increase the confidence of customers on them.
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11. Among by-products category of products Benzene, Toluene and Ammonium
sulphate are having highest number of customers.
12. Most of the customers are loyal to BSL because most of the customers are dealing
with Bokaro steel plant for more than 4 years.
13. Roadways are the most common mode of transportation used by customersbecause all belongs to local market. Some of the customers are using Railways for
the transportation because by-products are mainly transported through railways.
14. Quality, availability and transportation are main benefits that the customers of
secondary and by-products of BSL receive from Bokaro steel plant. Only few
customers responded that price and discount are the benefits they receive from
BSL.
15. Most of the customers are not happy with the volume limit that they receive from
BSL.
16. Most of the customers responded that they are satisfied with the information
provided by BSL about the bids to be taken place but few customers are also not
happy with the information provided by BSL.
17. Majority of the customers responded that they are happy with the order handling
procedures of BSL.
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18. Majority of the customers responded that that they are satisfied with the overall
experience while dealing with Bokaro Steel Plant.
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CHAPTER 6
CONCLUSIONS
AND
RECOMMENDATION
6. CONCLUSIONS AND RECOMMENDATION
The main issue attached with Bokaro Steel Plant secondary and by-products is that most of
the customers finds its price higher than the other brands of secondary and by-products
available in the market. Since, customers are now conscious about cost cutting measures so
they other brands over BSL.
Local market is one of the most important advantages than BSL is enjoying over a
period of time but, due to set up of new steel plants in nearby places few years from now it
will no longer be an advantage for BSL. So, BSL should have to work on decreasing the priceof its secondary and by-products and also increase its quality.
Since, from the survey it was found that most of the customers are purchasing
secondary steel and by-products from BSL. So, BSL should have to work on the increase of
production of these products and also decrease the price of those products to be competitive
in the market.
Most of the customers are also purchasing secondary and by-products from TATA
steel because of the lower price and easy method of purchase although TATA steel is far
from Bokaro district because of better service. So, Bokaro steel plant should have to work onto provide better service for customers.
Since, majority of customers dont register complain about the problem they faced
during trading although most of the problem that are registered got executed. Hence, BSL
should have to work on to improve confidence of customers on them.
Benzene, Toluene and Ammonium sulphate are having highest consumption among
by-products. So, products of mainly these by-products have to be increased.
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The BSL secondary and by-products customers are having faith in the quality of these
products. So, this should be maintained at any cost and BSL should have to decrease the price
of its secondary and by-products to maintain its customer base.
CHAPTER 7
BIBLIOGRAPHY
BIBLIOGRAPHY
Books referred
Kotler Philip, Keller Kelvin, Koshy Abraham, Jha Mithileshwar; Marketing
Management; New Delhi, Published by Dorling Kindersley (India) Pvt. Ltd.
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Malhotra N.K.,Marketing Research- An applied orientation, New Delhi, Prentice Hall
of India Private Ltd.
Magazine published by SAIL
Training manual
Books of organization
Websites referred
www.sail.co.in
www.metaljunction.com
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CHAPTER 8
ANNEXURE
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QUESTIONNAIRE
1. In which category of customer do you belong?
a) Trader
b) Manufacturer
c) Processor
d) Others
2. Why do you prefer to purchase from BSL?
a) Quality
b) Cheap transportation
c) Local market
d) price
3. Are you satisfied with the quality of the product?
a) yes
b) no
4. If No then what would be the reason for such a decision?
a) High cost
b) Low quality
c) Poor distribution
d) Others(please specify)
5. What type of products do you purchase from BSL?
a) Secondary steel
b) By-products
c) Slag
d) Idle assets
6. Are you dealing with any other company other than BSL?
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a) Yes. (please specify the name)
b) No
7. If Yes then what would be the reason for selecting other company?
a) Low price
b) High quality
c) Better service
d) Better selling methods
e) Others. (please specify)
8. Do you find any difference in price of secondary and by-products of BSL with other
plants that you are dealing with?
a) Yes
b) No
9. Have you faced any difficulties while dealing with the BSL?
a) Yes (Please specify the reason)
b) No
10. Do you find better selling methods adopted by other plants for selling of secondary
and by-products?
a) Yes.. (please name that method)
b) no
11. Did you complain about the problem faced?
a) Yes
b) No
12. Did complains get executed?
a) Yes
b) No
13. Which types of by-products do you deal with?
a) Benzene
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b) Toluene
c) S.B. Oil
d) Hard medium pitch
e) Extra hard pitch
f) L.S. Naphtha
g) Anthracene oil
h) Ammonium sulphate
14. Since when you are dealing with BSL?
a) Below 2 years
b) 2years-4 years
c) Above 4 years
15. What type of pricing method preferred by you while you are dealing with the BSL?
a) Fixed price
b) E- auction
16. What mode of transportation are you using?
a) Railways
b) Roadways
17. What are the main benefits which you receive from BSL?
a) Quality
b) Price
c) Availability
d) Transportation
e) Discount structure
18. Does the volume limit of secondary products, for bidding, help satisfy your needs?
Yes No Somewhat
19. What is your experience with the marketing personnel?
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Good Bad Excellent
20. Overall how will you rate the accessibility about bids to be taken place?
(Rank on scale on 1-5 in which 1 means highly dissatisfied and 5 represents highly satisfied)
1 2 3 4 5
21. How do you rate the order handling procedure of the BSL?
Good Bad Poor Excellent
22. Are you satisfied with the price of the secondary and by-products?
a) Yes
b) No
23. Are you satisfied with the current selling methods of BSL?
a) Yes
b) No(please specify the reason)
24. Overall how will you rate your experience while dealing with the BSL?
(Rank on scale on 1-5 in which 1 means highly dissatisfied and 5 represents highly satisfied)
1 2 3 4 5
Any suggestions for further improvement:
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Thank you for your sincere co-operation.
NAME OF THE CUSTOMER-
PLACE- .
DATE- ....
CONTACT NO. -
ABBREVIATION
1. SAIL - Steel Authority of India Limited.
2. TISCO - TATA Iron and Steel Company.
3. MECON - Metrological & Engineering consultants ltd.
4. HSCL - Hindustan steel works consultants Ltd.5. NMDC - National Mining Development Corporation ltd.
6. RDCIS - Research and Development Centre for Iron and Steel.
7. CET - Centre of Engineering and Technology.
8. CPTI - Central Power Training Institute.
9. MRD - Marketing Recovery Department.
10. BFGS - Blast Furnace Granulated Slag.
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