Part 3:- Design Detail Marketing strategy for any product using hypothetical brand name and selecting real industry data.

Product Name : Mango Slim(Android smart phone) Industry : Mobile Industry

Segment: All type of People Category: Cellular Mobile Industry

Mobile Industry

Few industries change at the pace mobile does. Whether it's the iPhone 5, the importance of LTE, or BYOD trends disrupting the enterprise, there are always new technologies, trends, and companies changing the way we define mobile. Here, Giga OM Pro highlights a few segments of the mobile industry that will be important to watch in the coming months.

Tara Seals points out new opportunities for handset OEMs to differentiate their devices and remain relevant, including social TV and emerging markets.

Derek Kerton discusses how the mobile app market is still dominated by Apple and Google but identifies trends that are making space for a third player to gain ground.

Giga OM Pro's mobile curator, Colin Gibbs, looks at new business models in the wireless service provider space, where the rise of unsubsidized handsets and non-cellular devices could disrupt traditional carriers.Monica Pauline outlines the transition from voice-to data-centric usage models and the challenges mobile networks face as they adapt to this change.

Certainly our list does not cover every single segment in the mobile industry, and we encourage readers to weigh in with their own thoughts, questions, and predictions in the comments section of this report.

The mobile phones industry in the UK in multiple ways. In a market that is dictated by technology, it is important to stay on top of the latest news and developments as well as to look for future trends that could affect the industry. Despite being an incredibly dynamic and fast-paced market, it is very robust and has signs of growth looking to the future.

In recent years the number of companies that have a solid foothold in the market has decreased as consumers invest in smart phones. Apple, HTC and Samsung have all strong market shares, while BlackBerry has failed to capitalise on its growth from a few years ago. Furthermore, companies such as Nokia and Motorola have found themselves struggling to compete in a market that is extremely fierce and it was easy for them to get left behind as technology advanced.

In recent years mobile phone applications (‘apps’) have been a new revenue stream for the industries and companies concerned with this sector have certainly capitalised on it. For example, the Angry Birds franchise has created huge profits from spin-offs such as soft toys and other children’s toys. These revenue

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streams would have been unheard of in the market 10 years ago, but tie-ins such as this have really outlined the potential there is in the mobile phone market.

The mobile phones industry saw a slight increase in mobile phone revenues in 2011. However, the share of the total mobile and landline industry accounted for by mobile retail increased by 0.9 percentage points in 2011 and now stands at 62.8%.

Fresh opportunities for the mobile handset market

The growth in the mobile handset market has created a hypercompetitive hardware market in which manufacturers must innovate and differentiate more than ever. Handset exclusivity has waned as an issue, given that the availability of the iphone has been extended across carriers and that most operators offer at least one high-end Android device. Also becoming more widespread is 4G, which means greater network compatibility.

All of this means OS providers and OEMs a like need to find new ways to differentiate their handsets in order to capture revenue premiums: namely through tighter integration with apps and content. Personalization continues to be an important issue for mobile users, who look to access their content and applications wherever and whenever.

Future analysis of Mobile industry in India

Looking to the future, the mobile phones industry is certainly going to be subject to more technological advances, which will no doubt drive the industry and convince consumers to continue to upgrade their hardware and ultimately result in high profits. Furthermore, the availability of 4G services will help the industry in upgrading technology.

SWOT ANALYSIS OF CELLULAR MOBILE INDUSTRY

Strength Opportunity • Huge wireless subscriber potential.• Fastest growing mobile market in the world.• Consumers are ready to pay for cutting edge services.• India possesses cheap labour to attract foreign investments.• Telecom software, telecom professionals, telecom infrastructure and telecom services are the key players in shaping today’s economy.• Revenue sharing strategies are leading to mergers and acquisitions, helping companies to enter new business opportunities, and generate employment, boosting the country’s economy.• Government has started relaxing rules for foreign participants• Lowest tariff rates in the world

India has Asia’s third largest economy is adding at least one million newmobile phone users every month• Mobile phone user’s base hitting a saturation point in big cities.• Income levels in the rural areas rising due to robust agricultural output.• Share of the rural market in the country’s mobile population is, however, lessthan 15%Cellular phone now being viewed as a common mans phone• Rapid growth expected in the telecom and related services• Foreign investment in form of equity or technology• Increased availability of bandwidth has open doors to new schemes making efficient usage, providing value added services and generating profits.

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Weakness Threats•Market strongly regulated by government body the telecom regulatoryauthority of India.• Existence of entry barriers for private companies.• High cost of service provision.• Low income countries like India cannot afford to replicate expensive telecom infrastructure.

• High level of risk uncertainty and cost associated with the cellular sector• Weak intellectual property right protection• Software and digital content piracy• Political instability• Cost of handset also deters a lot of buyers from opting for the service• Threat from WLL service providers and also from satellite phones

Company Profile

Founded in 2014, Mango built its reputation as the behind-the-scenes designer and manufacturer of many of the most popular OEM-branded mobile devices on the market.

Since January 2014 , we have regularly introduced many critically-acclaimed mobile devices under our own brand, and our portfolio includes smart phones and tablets powered by the Android and Windows Phone operating systems.

We are dedicated to creating a customized user experience and believe that each mobile device needs to fit its owner, and not the other way around. What we make is not merely the product of focus group tests, but of observing and honouring how individuals choose to interact with technology.Our customers guide everything we do at Mango, and it’s this commitment that defines the company.

Success Starts Where It Ends: With the Customer Strong recommendations from retailers, press reviews, consumer opinions, and friends and family, contribute to a high rate of product referrals, brand recognition and on-going momentum. Combined, these recommendation channels nourish the connection between Mango and its community as market share increases. And because we invest wholeheartedly in refining the personalized communications experience, we champion the customer as the hero through every stage of innovation.

Dedication to Experiential, Interactive Design

A focus on product design with performance, endurance, craftsmanship, and intuitive tools and interfaces, ensures an elegant experience in a beautiful, minimalist package. Mango contributes a variety of innovations that include an amazing camera — cameras that rival leading point-and-shoot models and HD video that turns mobile screens into intimate, state-of-the-art theaters. And we make authentic sound a priority — we integrate Beats technology because it’s not just the music you play that matters, but also the quality of the sound. We recognize that, for our customers, a mobile device isn’t just a smartphone but an A/V entertainment system, communications control center and important instrument of individual expression, all in one.

Innovation through Collaboration

Our longstanding working relationships with fellow technology leaders, such as Google, Microsoft and Qualcomm, are more than strategic partnerships: They serve as active labs of research and development

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and product evolution. At Mango, collaboration is a means to a very important end: creating a holistic experience for the customer. Our partnerships ensure that hardware, software, and content management and delivery systems are united in seamless and intuitive ways that give consumers control.

Empowering the Most Personal Experience

Discovering the best ways to integrate state-of-the-art technologies with effortless user experiences has always been, and will always be, our passion. New products simply improve and enhance these experiences. And when our customers share their personal experiences with our products, they speak with passion and conviction. That’s why we encourage, embrace and celebrate users sharing their perspectives. The strength of the Mango community lies in its authenticity; it’s the most accurate and honest voice of real-world understanding available. We insist on seeing through the eyes of this community, because doing so teaches, challenges and prods us to get better at what we do — empowering our customers through personal experience.

Swot analysis of Mango Mobile Corporation

Strength Opportunity Significant R&D capabilities enhances sales

growth and brand image Diversified revenue sources reduces

o Business risk and enhanceso operating performance.

Strong relationships with vendors enable it to address changing customer needs effectively

Mango chose the right partners (giant players in software industry, such as Microsoft) to cooperate with to enter the market with less risk.

Strength in hardware design and strong manufacture capacity: provides high quality products with high technology and innovation.

ODM saved cost and avoid market entry risk.

Operator business, operators buy product from Mango and promote the sales themselves, is good for Mango to enlarge sales volume and market share with less promotion cost.

ODM and operator business brought high margin (20%) compared to an industry average of 5%.

The brand Mango was recognized by end users.

Declining margins may affect its financial performance in the long run.

Smart phone category will seize 30% of the whole phone market in 2012.

Google’s system Android caught attention of end users, but Google has no device for it.

US market is critical for global smart phone industry while Mango only got 2% brand preference to buy.

3G tech. is booming in current years, and 4G is coming in the phone market.

Weakness Threats Strong growth in smart phone and tablet to boost Mango's revenues Positive trends in the tablets market is a

growth opportunity Strategic acquisitions enhance revenues

and product portfolio

Intense competition may lead to pricingpressures affecting profitability

Exchange rate fluctuations may adversely affect Mango’s operating results

Legal investigations may tarnish image and result in penalties

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Operator business requested customization module for Mango, and customization increased the cost of product and reduced margin (ASP).

Too related on Microsoft’s platform which was not mainstream in the smart phone system market.

Brand awareness is weak.

Other Taiwanese competitors were catching up in the ODM market

Lots of new entrants jumped into handset market. (Apple, Samsung, RIM…)

Lots of new entrants penetrated into system platform market. (Apple, RIM, Google)

More technology and innovation are used on smart phone.

Product cycles are getting short Price will come down

PRODUCT

Mango Slim

Description Mango Slim is an Android smart phone with 4.7 Inch Full HD 1080p display. It runs on Android 4.1.2 with Sense UI. It is powered by Snapdragon 600 1.7 GHz Quad Core processor and 2GB RAM.

Highlights

Snapdragon 600 1.7 GHz Quad Core Processor

2GB RAM

4.7 Inch 1080p Display

Android 4.1

32GB On-Board Storage

Mango Zoe Ultra pixel Camera

2MP Front Cam

HDR Video Recording

Micro SD Slot

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Micro SIM

2300 MAh. Battery.

Mango Slim Specifications

Network

Technology / Frequency Bands GSM : 850/900/1800/1900 MHz HSDPA : 850/900/1900/2100 MHz

Battery

Type Li – Po

Capacity 2300 mAh

Standby -

Talk time -

Built

Dimensions 137.4x68.2x9.3 mm

Weight 143 g

Colors Black and Silver

Display

Size 1920x1080 pixels

Type color : LCD

Camera / Imaging / Video

Camera Yes 5.0 Megapixel

Resolution 2592x1944 pixels

Flash Yes

Secondary Camera

Connectivity

Bluetooth Yes

Irda Yes

Wlan/Wi-fi Yes

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USB Yes

GPS Yes

Data

GPRS Yes

EDGE Yes

3G Yes

Software

Operating System Android 4.1

PRICE:RS 23990 (32GB)RS 18660 (16 GB)RS 12595 (8 GB)

PLACE: All Mango store All electrics retail shops

Croma 21 stores in over the IndiaVijay sales 50 stores in over the IndiaReliance digital 100 stores in over the IndiaOther Thousands in over the India

Online storeshttp://www.salesindia.comwww.ebay.in/Free-Shippingwww.snapdeal.com/Mobiles-online-shopwww.flipkart.com/mobileswww.themobilestore.in/www.naaptol.com/buy/mobile_phones.html

Target Market

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There is 13 carore people whose income level is 500000. So we can find our target from this People

Promotion

Branding

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Total People13,00,00,000

Lessthen 153,25,00,000

Non Userschildren

Youngsters6,50,00,000

Literate 4,65,00,000

male working and students

2,50,00,000

Female2,15,00,000

Corporate Working Women students

65,00,000

House wifes1,50,00,000

Non Users

Ill-literate 1,93,00,000

Non Users

morethan 503,25,00,000

Non Users Adults

Market potential is Corporate working people and young students.

3,15,00,000

In this market potential there is 30% of the people who is already a User of Mango.

30,00,000 People is Mango

We will use branding for Mango Slim to corporate people and modern age young people who just want quality, new generation features because It's a common stereotype that Android devices are only made for those who don't care about design like businessman, corporate people or build-quality.

Mango buying into that trend with its newest flagship Smartphone, the Mango, which is made from all metal and glass with some durable plastic accents. It's bigger and arguably more beautiful than the iPhone 5

An Android phone Mango slim that was just as solid and beautiful as anything Apple makes without being a blatant copy. The Mango Slim has a 4.7-inch HD display, meaning you can watch full HD video content. (There are only a handful of devices that can do that, and the iPhone isn't one of them.) The screen's resolution is also incredibly sharp, so text and images look like they're printed on the display.

We are targeting corporations and young people like student because corporate people don’t have time and Mango Slim give all service at time and young generation want to new trend.

IMC

Objective of IMC

To Increase Mango Slim’s awareness and recognition amongst Target Audience by 30 percent by three months

To Increase Customer engagement by 30% in three months To Increase Products Internal Branding by 40% within 3 months.

Communication

Theme: “Synchronize”

Everything is related and Integrated with one another

Mango Slim Sense allows the mobile itself to connect, fit in, and integrate with our self

Slogan: “Synchronize Your Sense”

Sense of Belonging, Sense of Direction, Sense of Excitement, Sense of Experience, Sense of securities.

We should prepare campaign for three months. Because our motive is Increase Mango Slim’s awareness and recognition amongst Target Audience by 30 percent by three months.

Campaign list for three months month

1. Interactive Employee orientationPlace: Delhi, Palm Court- In this orientation we can give the new Uniform to our employee. Inviting minimum 500 people.It’s like a Tea party and interaction with Employee ProductAware Employee about new technology

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2. Organize a Dealer Camp of two daysPlace: Goa, Martin’s Comfort Invitation to 200 PeopleWalk RelyChilling PartyMnago Sense workshopMaintain and build good Relationship with dealers over the India

3. Sponsorship of a technological Event SME Summit Which is organize by silicon India Events at 17 May

Place: PuneTarget Audience: Proprietor/ Owner/ Partner Chief Executive Office/ Managing Director Chief Technology Officer/ Chief Information Officer/ Chief Operations Officer President/ Vice President / General Manager Directors of Manufacturing/ Operations/ Engineering/ Production Plant/ Factory Managers Functional Heads of Technology, Operations, Production Quality

4. Sponsorship in IIM Event at 30 mayPlace: Goa Marriott Resort & Spa, Goa, India IIMC Event – emerging Issues in Management

5. Balloon day Organize a balloon Day in all major cities.There is a Nine Major Cities in over the IndiaAhmedabad, Pune, Banglore, Surat, Mumbai, Delhi, Calcutta, Chennai, Hyderabad.

6. Hoardings In over the IndiaIn Major cities: - Ahmedabad, Pune, Banglore, Surat, Mumbai, Delhi, Calcutta, Chennai, Hyderabad.

7. Advertising: Television Advertisement occasionally, 20 times in a month. Newspaper Times of India: Ahmedabad – 2

8. Direct Marketing: Website For Mango Slim Face book Popup Face Book Page Mango Slim Blogs

9. Sales Promotion: EMI Facility Free Insurance 1.5 Years warranty Free Mobile Cover(MRP: 1199)

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Budget

Event

Events City TotalOrientation Campaign Delhi 50000Dealer camp Goa 1000000Sponsorship Pune 200000IIIM Event Goa 100000Balloon Campaign all Over the India 50000

Total14,00,000

Hoardings

Cities Name Price Per Hording No. of Hoardings Total

Ahmedabad 10000 15 150000Banglore 100000 5 500000Chennai 70000 5 500000Delhi 70000 5 500000Hyderabad 70000 5 500000Kolkata 70000 5 500000Mumbai 70000 5 500000Pune 70000 5 500000Surat 10000 10 100000

Total 4545000

Advertisement

1, 20,000 × 20 = 24, 00,000 Per Advertisement (20 Advertisement per month)

2, 30,000 Advertisement Making Expense

Total Expense = 26, 30,000

Newspaper

Cities Name Price Per Add No. of Add Total

Ahmedabad 174000 1 174000Banglore 1044000 2 2088000Chennai 590000 2 1180000Delhi 1278000 2 2556000Hyderabad 372000 1 372000Kolkata 428000 2 856000

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Mumbai 41600 1 41600Pune 560000 1 560000Surat 896000 1 896000

Total 8723600

Total Budget

Event: 14,00,000Hoarding 45,45,000Advertisement 26, 30,000Hoardings 87,23,600Total 1,72,98,600

Competitors

There is a strong competition in the Market. But the Major Competitors are the following:

1. Samsung: Galaxy Note 22. Black berry: Z10 3. Nokia: Nokia Lumiya9204. Apple: Iphone 4S, Iphone5

SWOT Analysis of Samsung Note 2

Strength

Their Marketing Orientations is Strong.This orientation is in line with Samsung’s billion dollar research investments and 40000 employees dedicated to develop the world’s greatest technology products.Also their Marketing Concept is in line with their huge marketing budget starting with understanding customer needs integrated marketing and customer satisfaction. Business Review Weekly in November 2004 claimed that Samsung was the world’s 4th largest advertiser in the world.Samsung’s Total Quality Management approach drives Galaxy Note II customer perception as a reliable product backed by a worldwide brand and huge media presence.

Weakness

One of the weaknesses of Samsung is that their costs are relatively high as compared to the competition.Also the fact that Samsung operates in a very competitive market, another weakness is lack of penetration in the Business Mobile market being outperformed by Blackberry an even Apple.With the rapid changes of technologies today, Samsung has to manage the company in a very efficient manner to be even more productive.Although Samsung is already one of the most profitable and one of the leaders in the market, still the competition is huge; Samsung must take it into consideration.

Opportunity Opportunity for the Galaxy Note II is that the current market is operating in a Full Demand environment for smart phones and portable devices. Full Demand market is defined when their volume of business and operation is close to current capacity.According with the Australian Interactive Media Association report 2012 11%

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of all Australian mobiles are Samsung. With the end of customers mobile contractsGalaxy Note II has the opportunity to drive more sales by upgrading their 1.8 million existing customers to Galaxy Note II. Locally they also have great opportunities with the Korean Government to invest billions more in engineering that will benefit them as they currently employ 50% of Koreans engineers. Also the 2012 London Olympic Games also are a major opportunity for the Galaxy brand as Samsung is one of the major sponsors and visibility for all Samsung products will be high in the Olympics.

Threats

The Threats of the Galaxy Note II are the competition. While Samsung faces a good quarter for Q1 this year with 60 million units sold worldwide. Analysts believe Q2 wasn’t has great due to strong performance of Apple Iphone 4.

Also they are up against fierce competition from Motorola Atrix, HTC Desire S, LG Optimus, Sony Ericson

Expedia Arc and Nokia as the leaders of the market. Another two big threats also are building up in the horizon; Nokia’s billion dollar partnership with software giant Microsoft, that lately acquired communications leader Skype, and Apple’s release of the Iphone 5. The Nokia-Microsoft deal should produce a device by the last quarter of 2011 the same time that the Iphone 5 should be launch.

5. Apple: Iphone 4S, Iphone5

strength

1. Entire iPhone ecosystem2. Perceived to be the most stable OS3. Best designed phone in the market resulting in novelty factor for

the phone4. Excellent branding and marketing5. Lots of apps and feature

Weakness

1. Very expensive2. Comes without Expandable memory3. Battery is Fixed4. Expensive accessories5. Lacks features e.g.- Bluetooth transfer , SMS forwarding, FM

radio6. Comes only in one form factor

Opportunity

1. Huge untapped market2. More innovation, features and models

Threats

1. Mobile manufacturers using Android OS2. Lack of choice for consumers3. Threat from cheaper substitutes

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Part 4:- Various Tools

1. Porter Five Forces Model of Steel Industry

In this case we have analyzed the domestic steel sector through Michael Porter’s five force model so as to understand the competitiveness of the sector as well as pointed out the initiatives taken by Tata Steel to safeguard its position from all the five forces of threats, namely:

1. Entry barriers: High

Industry is already been crowded because of the many big private players such asTATA, MITTAL steel and also the public enterprises such as SAIL, HSCL and VSPso it is very difficult for any new organization to enter in to this industry.

There has been a downfall in the prices of the steel so to survive in this situation for any new organization is very difficult.

The cost of capital required to enter this industry is also very high and to invest in this industry in current situation where the prices of steel are falling is very dangerous.

The industry is mainly dependent on the customer and supplier loyalty and the players such as Tata steel, it is difficult for any new company to break the relationships between them.

2. Competition: High

The steel industry is truly global in terms of competition with large producing countries like China

Significantly influencing global prices through aggressive exports.

Steel, being a commodity it is, branding is not common and there is littledifferentiation between competing products.

The 4 major domestic rivals are SAIL, JSW, ISPAT & ESSAR STEEL. Rest are allsmallish mills which together accounts for 30 % of the total market share.

3. Bargaining power of suppliers: Low

Supplier power is likely to be low for the Tata steel

After the acquisition with the Corus, Tata steel has increased the bargaining power of suppliers for the raw material the one reason for the acquisition was to improve thenegotiating power of the suppliers.

Thus the power of suppliers over the Tata steel is to be low after the acquisition of Corus.

4. Bargaining power of buyers: Low

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Buyers power is likely to be low in this type of industry though there prevail a largenumber of small and big players but in this industry mainly the product is sold on thetrust on quality so there are only few big players on which we can trust so the bargaining power of buyers is likely to be low

The cost of switching to other supplier is also low because in this industry there prevails very long term relations between the organization and the buyers.

In order to safeguard itself from the high bargaining power of the buyers, Tata Steelhas forayed much earlier into the strategy of ‘Backward Integration’.

5. Threat of substitutes: Low

The threat of substitutes depends upon the quality that is a substitute better , buyerswillingness to buy, the relative price and performance of substitute

The steel industry has always faced competition from aluminum, other metals andalloys, plastic, paper and composites, and it will continue to compete against newer materials as new technologies emerge.

The challenge is to keep on improving steel itself and becoming more costcompetitive. It is also believed that steel has scope for many more applications thathave not as yet been thought of

2. PESTEL Framework of Steel Industry

Political:

Tata committed a huge amount of investment in politically unstable country like Bangladesh, Iran, Mozambique and Thailand. The entire process of setting up plan is getting delayed in question of gas supply (in Bangladesh), Iron ore mine lease in Iranis escalating the Project cost.

Impact of Liberalization: The economic reforms initiated by the government in 1991 have added new dimensions to the industrial growth in general, and steel industry in particular. Some of the important features due to liberalization are:

Licensing requirement for capacity creation has been abolished.

Steel industry has been removed from the list of industries reserved for the state sector.

Automatic approval granted for foreign equity investment in steel has been increased up to 74%

Price and distribution controls were removed from January 1992

Restrictions on external trade, both in import and export, have been removed.

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Import tariff reduced from 105% in 1992/93, to 30% in 1996-97.

Other policy measures like convertibility of rupee on trade account, permission to mobilize resources from overseas financial markets, and rationalization of existing tax structure.

The Government plays a key role in the economics of TATA Steel. It has a role as are source allocator (the mining policies of the Government), as Competitor (the public sector steel companies) and as Regulator. In volatile times the regulatory risk rises with measures like reduction in import duties, levy of export duties and withdrawal of DEPB benefits, threats of price curbs etc. Tata Steel counters this risk by being a role-model corporate citizen and playing an important role in contributing to the Nation building. Tata Steel is the second largest steel producer in terms of Geographical spread of its facilities.

Economic:

The steel industry is highly cyclical, receptive to general economic conditions and reliant on the condition of a number of other industries, including the automotive, appliance, construction and energy industries. If these industries experience adown turn, Tata Steel too would too take a hit, thus negatively impacting its rating.

Tata Steel became 6th biggest Steel Producer in the World after acquiring Corus, but the cost of the integration goes much more beyond the financial aspect.

Corus follows the policy of entering into long term supply contracts with raw materials vendors. Thus there can be a huge time gap between variation in prices under purchase contracts and the time when Corus can make a corresponding price change under its sales contacts with its consumers. Moreover, Corus may not be able to pass on the increased raw materials costs to its customers. Such developments would lead to a downside in our rating.

Steel production processes are energy dependent and price movements in the energy market would accordingly affect Tata Steel’s bottom line.

Social:

While talking about the Socio cultural factors for the steel industry such as population demographics, income distribution, and social mobility these all have somewhat some impact on the steel industry.

The people are getting very much quality conscious about the steel.

The income which they spend on these type of products is very rarely while some constructions so they spend a high amount on this product but very rarely

Mostly the customers for the Tata steel would be the manufacturing companies suchas car manufacturing companies and the construction companies.

The steel industry is indirectly been affected by the income which the people is going to spend on cars or constructions and the spending depends upon the income distribution.

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Tata Steel Ltd has been awarded the Golden Peacock Global Award for Corporate Social Responsibility (CSR) for the year 2009. The award looks for continual commitment by business to ethical behavior, to economic development and to improving the quality of life of employees and their families, as well as to engagement with local communities and society at large.

From policies on corporate accountability, drugs and alcohol, and HIV prevention, to a Code of Conduct that extends to its stakeholders, ethics and responsibility are interwoven in the daily course of Tata Steel's business. CSR is an integral component of Tata Steel's business strategy, and constitutes one of the company's key enterprise processes. Tata Steel aims to create a favorable social environment in its areas of operation by improving health, education and economic well-being, as well as nurturing young talent in sports.

Technological Factors:

Government spending on technology:

Though the choice of technology will be determined by entrepreneurs based on techno-economic considerations, the Government encourages adoption of technologies, which have synergy with the natural resource endowments of the country. Are conducive to production of high-end and special steel required for sophisticated Industrial and scientific applications. Minimize damage to the environment at various stages of steel making and mining. Optimize resource utilization. Facilitate modernization of the steel industry so as to achieve global standards of Productivity and efficiency. Development of front end and strategic steel based materials.

India’s expenditure on Research and Development has been negligible not only in absolute terms but also as a percentage of GNP at 0.86 percent. This can be compared to the developed world with an average ratio of 2.5 percent. In the case of steel industry, the ratio of expenditure on R&D as a percentage of turnover is only 0.26 percent.

Speed of technology transfer

A consolidated steel industry will seek to deploy new technologies asrapidly and widely as possible, potentially limiting any first mover benefits. While the early entrant will be first on the learning curve, the supplier will seek to share as much of that learning as possible

Environmental:

Energy consumption:

The steel industry uses energy to turn iron ore and scrap metal in to steel. Hundreds of products we use every day are made of steel. It is very hard durable metal and it is heated at very high temperatures to manufacture it. Producing this at high temperatures needs lot of energy. The cost of energy in the steel industry is 15 to 20% of the total cost of making the steel. Most of this energy comes from the coal or electricity generated from the coal.

Since 1973, the steel industry has reduced its energy consumption by45 percent per tone of steel. New technologies has made steel stronger so thatless steel is needed for many uses

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The use of recycled steel also saves energy. It requires 33 percent less energy to recycle steel than to make it from iron ore. Today, two third of new steel is made from recycled scrap, making steel the nations leading recycled product

Waste disposal:

Plant waste, about two tonnes of solid waste per tonne of finished steelis generated in steel plants. Handling and disposal of this huge quantity of solid waste is not only difficult, it is also a costly affair. Accordingly, Tata Steel has developed and implemented schemes and strategies for controlled disposal of pollutants and wastes. Wastes are segregated as per their characteristics using uniform colour coded waste bins placed at different generating points across the Company and disposed of as per laid down procedure under the Environment Management System (EMS).

Town Waste: All the solid and liquid wastes generated in the township are disposed of in a scientific and sanitary manner. A fleet of 37 hydraulically operated state-of-the-art vehicles and equipment are engaged in hauling about300 MT of garbage generated every day. The Company maintains a free flow of the sewage across the sewer network measuring over 450 km, and 771,000running feet of surface drains in the township.

Medical waste: Medical wastes are mostly hazardous to human health and environment, having serious consequences if not handled properly. Therefore, the Company has instituted strict guidelines for proper handling and disposal of medical wastes.

Legal:

Health and safety In the manufacturing industries such as Tata steel health and safety of the employees matters the

most. There are more chances of accidents in these big manufacturing companies. There are also many laws laid down by the ministry of India steel industry regarding to the health and safety of the employee in the manufacturing industries.

Tata Steel’s safety and occupational health responsibilities and driven by commitment to ensure zero harm to people with whom they work with andsociety at large and integral to the way they do business. Our fundamentals belief is that all injuries can be prevented.

Tata steel has also laid down the policies in accordance with the ministry of Indian steel industry. These policies are detailed below:

I. We will identify, assess and manage our S & OH hazard/ risks.II. We will regularly monitor, review the progress and report.III. We will ensure WILL and SKILL buildup among employees/contractor partners to

demonstrate their involvement, responsibility and accountability to achieve sound S & OH performance.

IV. We are committed to continual improvement in our S & OH performance.V. We will set objectives – targets, develop, implement and maintain management standards

and systems, and go beyond compliance of the relevant industry standards, legal and other requirements.

Product safety

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Ministry of Indian steel has laid down some laws regarding to the product safety of steel products. According to the laws laid down on the steel companies , the steel companies have to follow highest safety standards for the products, maintaining an excellent standard of technical know how involving the following initiatives:

i. Adherence to/exceeding both national and international design standardsii. Rigorous and extensive product testing including computerized modeling and simulationsiii. Inducting and nurturing the best brain in the field

3. BCG Matrix Analysis of Tata Steel Ltd

STAR:

The Ferro alloys and minerals division in TATA in the TATA STEEL LTD would fall into the category of stars of the BCG Matrix. The production in this division is 1.302millions tones and the overall sales has exceeded to 1.508 millions tones. Infrastructural investment in Asia resulted in improvement in the demand for stainless steel. Chrome Alloys exports (including charge chrome from TATA Steel KZN PTE LTD) touched anall time high and the division recorded its highest ever global market share of 6% inFY10. The first oversees hub of TSL was established in South Korea. In India our Ferro Alloys and minerals division is the market leader in Ferro Chrome Business with a market share of around 27%. Manganese Alloys sales recorded an all time high in the financial year 2009-2010 and TATA Steel attained the status of being the largest producer of Manganese Alloys in India.

CASH COW:

The steel division of the company falls into the category of cash cow of the BCG Matrix. The production is 6.439 million tones but the over all sales are 6.170 million tones. Despite sales being lower than the production in the FY 10. The over all sales grew by18% over last year (5.232 million tones in the FY09).

QUESTION MARK:

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The bearing division and the tubes division fall into the category of question mark in theBCG Matrix. They are growing rapidly but have low market product share. They have the potential to gain market share and become a star. It can also become cash cow when the market growth slows.

DOG:

None of the divisions of the TATA Steel can be classified into dogs. All of them have good market share and good market growth.

4. SWOT Analysis of TATA Steel

Strength:

Tata Steel’s Indian operations are self-sufficient in the case of its major raw material iron ore through its captive mines.

Tata had a strong retail and distribution network in India and SE Asia. Tata was major supplier to the Indian auto industry and the demand for value added steel products was growing in this market.

The Company is on its way to reach a crude steel capacity of 10 million tonnes per annum by FY 2011. The first phase of reaching the crude steel capacity of 6.8 million tonnes per annum, Brown field projects, is nearing completion.

Tata Steel has been on a path of accelerated growth with foray into several geographies and markets through aggressive mergers and acquisitions.

Tata Steel now is in the process of implementing a structured approach in risk management called Enterprise Risk Management (ERM). The key objectives of the Company through ERM are:

To enshrine the process of ERM as a usual Business Process and integrate into all decision making and planning processes.

To ensure that all levels of Management identify and monitor risks through a properly defined framework.

To provide periodic information and updates to the Board and the Shareholders on the significant risks and the ways of mitigating the same.

Tata Steel with its modernisation plans has ensured that it deploys the besttechnologies to ensure quality, cost-efficiency and environment-friendly processes.Through acquisition of Corus and with new Greenfield ventures, Tata Steel hasensured that it has diversified the concentration risk in single technology of Iron &Steel making.

Weakness:

Steel production in India is also hampered by power shortages

Insufficient freight capacity and transport infrastructure impediments to hamper the growth of Indian steel industry.

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Raw materials for steel production are rapidly depleting and are non-renewable; company has to come up with sustainable methods in steel production.

Low Labour Productivity: In India the advantages of cheap labour get offset by low labour productivity.

High Cost of Basic Inputs and Services: High administered price of essential inputs like electricity puts Indian steel industry at a disadvantage; about 45% of the input costs can be attributed to the administered costs of coal, fuel and electricity.

Opportunities:

The biggest opportunity before Indian steel sector is that there is enormous scope for increasing consumption of steel in almost all sectors in India.

It is estimated that world steel consumption will double in next 25 years. Quality improvement of Indian steel combined with its low cost advantages will definitely help in substantial gain in export market.

The Tata Steel Group is leveraging the Group’s collective Research and Development experience in the Group’s various geographies to further enhance the Group’s performance and also the integration process.

Corus acquisition brings in a tremendous technological advantage by access to best practices in global steel industry.

Booming infrastructure has opened up high demand for steel worldwide

Threats:

In the developed world, industries have been facing rising environmental costs due tothe increased concerns on Global Warming. It is, therefore, a challenge and responsibility for the Steel industry to be the trustee in conservation of nature for future generations.

It is recognized that the steel and aluminium industries are significant contributors toman-made greenhouse gas emissions as the manufacture of steel produces carbon dioxide (CO2), and the manufacture of primary aluminium generates both CO2 and per fluorocarbons (PFCs).

High raw material input cost and scarcity of non- renewable raw materials are a threat to the industry.

Threat of Substitutes

Plastics and composites pose a threat to Indian steel in one of its biggest markets automotive manufacture.

Steel has already been replaced in some large volume applications large diameter water pipes (RCC pipes), small diameter pipes (PVC pipes).

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Part 5:- Summary of Five Marketing Strategy Articles

1. Everest plans new marketing strategy

Eternit Everest Limited, a ACC subsidiary company and a market leader in the fibre cement roofing industry with its popular brand name Everest was come up with new and aggressive marketing strategy and their aim was to increase market share. The company had done joint venture between Etex Group of Belgium (50%) and the cement giant ACC (26%) in near by 2001-2002. These all activities are geared towards the growth of the company and increasing profitability of the company as well as streamlining production processes to increase efficiency and reduce costs.

2. Dabur plans marketing strategy for southern states

One of the major players of FMCG sector, Dabur India has planned an agressive marketing strategy to increase its sales in the four southern states. The company, which currently has 10 per cent sales of consumer care products in the south, will rename them in local languages and also come out with special products with distinct local flavour to capture a larger market share. The company is adopting every trick in the book to drive deeper into the south Indian markets. The idea is to give the brands a local flavour to make them easily understandable to the Tamil speaking people. An Ayurvedic product called Dabur Shwaasamrit, for chronic cough and bronchitis, is currently under test marketing in Karnataka.

3. New marketing strategy to increase sales of coir products

The Coir Board, which is targeting a Rs 3,000 crore sales turnover from the domestic market during the 12th Plan period, has drawn up a new marketing strategy to boost sales by appointing stockiest, franchisees and canvassing agents throughout the country. The board was eyeing a turnover of Rs 100 crore through this new scheme. As part of the scheme, stockiest would be appointed in each zone. The first stockiest was appointed 5th June 2013 and an MOU in this regard signed. Around 500 stockiest are expected to be appointed throughout the country. As per the new strategy, coir and coir products would be displayed in small shops and furniture shops also.

4. How IKEA uses social media to emerge a marketing success

IKEA, the world's largest home furnishing retailer, is one of the early adopters of the digital mode of

marketing and has made maximum use of the social media clubbed with massive emphasis on its digital

catalogue which forms the core of the retailer's marketing strategy. With 345 operational stores across the

world (as of year 2013), IKEA's digital marketing strategy remains almost uniform - extensive use of social

media with separate country pages for respective markets and an ever increasing stress on digital

catalogue applications which can be downloaded on app stores such as Google Play and the Apple store.

"The 2013 edition of the IKEA catalogue application was downloaded almost 10 million times!" IKEA

informs.

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Facebook: There are a minimum of 1.5 lakh fans on each of IKEA's country pages.

Twitter: IKEA has separate twitter feeds for all its country-specific twitter pages. The US page alone has 2,

22,000 followers while IKEA Canada page has 6, 66,000 followers

Google +: IKEA's USA page entered Google + only recently (January, 2014) and has the lowest following

out of all of its pages

Outdoor Campaigns: While promotion of its catalogue through online mode constitutes almost 70 percent

of its annual marketing spend, IKEA also makes judicious use of OOH (Out of home) by creating high

engagement outdoor campaigns

Indoor Garden, London: Besides outdoor bathrooms in Paris, IKEA also created indoor gardens in

London.

5. Mysore Sandal Soap maker 'Karnataka Soaps and Detergents Limited' to foray into Maharashtra, Gujarat

One of the major FMCG player Karnataka Soaps and Detergents Limited (KSDL), manufacturers of Mysore

Sandal Soap and sandalwood oils, are all set to foray into the Maharashtra and Gujarat regions.

They are predominant south Indian player. They have a strong foothold in the Karnataka, Tamil Nadu and

Andhra Pradesh. 75% of the turnover come from these region only. Now the strategy is to enter into new

market which are Gujarat and Maharashtra. As a part of marketing strategy they have spent about Rs five

crore in 2011 on Advertising. Kumar, who was here to unveil the company's costliest soap the 'Millenium,'

priced at a whopping Rs 720 per piece, said they aim to sell about six lakh units this year. The Millenium

soap was a Jewel among all soap and it was serving a niche market. The target audience is who spend

around Rs 1000 per day. Before now they were not giving any advertisement, they were believed in direct

marketing only. The growth of the company is around 25-30 percent per year. On their export, the company

was a strong player in Gulf, Singapore and Malaysian markets.

(http://articles.economictimes.indiatimes.com/2002-12-29/news/27358458_1_etex-group-acc-

hindustan-sanitaryware)

(http://articles.economictimes.indiatimes.com/2007-05-20/news/28422557_1_dabur-india-marketing-

strategy-dabur-shwaasamrit)

(http://articles.economictimes.indiatimes.com/2013-06-05/news/39764359_1_coir-and-coir-products-

board-chairman-g-balachandran-stockists)

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(http://articles.economictimes.indiatimes.com/2014-03-03/news/47859301_1_largest-home-furnishing-

retailer-catalogue-own-friends-day)

(http://articles.economictimes.indiatimes.com/2012-02-28/news/31108121_1_mysore-sandal-soap-

karnataka-soaps-marketing)

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