PRESENTATION ON TATA STEEL

TATA STEEL

Name: Tata Steel

Founded: 1907
Founder: J N Tata
Headquarters: Jamshedpur in Bihar & India
Chairman: Ratan Tata
Parent: Tata Group
Logo:

Industry: Steel
 BRANDING OF STEEL

Branding steel would help Tata Steel in 2 big ways:

1.Stabilize flow of revenues
2.It would make premium pricing possible
Tata steel has been launching branded steel products
since 2000
 Take over

1973 – Flux mines And Collieries

1983 – Indian Tube Co.Ltd
1991 – Ferro-Chrome Unit of Alloys Ltd
Feb 2005 – Singapore Based Steel Ltd.
Dec2005 – Thailand Millennium Steel
 Group Today - 7 Business Sectors
Materials Energy
 Tata Power
 Tata Steel
 Tata BP Solar
 Advance Materials

Services
Chemicals
 Taj Hotels
 Tata AIG Life &  Tata Chemicals
General Insurance  Rallis
Companies

Consumer Products IT and Communications Engineering

 Tata Tea  Tata Motors

 Tata Consultancy
 Titan Services  TACO Group
 Trent  Tata Teleservices  Voltas
 VSNL

28 Listed Companies ; 280,000 employees

 Modernization program
• In 1980-initiated modernization program for its steel
plants
• 4 phases of modernization program with an
investment about 60 billion
• Phase-1(1981-85;Rs.2.3 billion)
• Phase-2(1985-92;Rs.2.69billion)
• Phase-3(1992-96;Rs.36billion)
• Phase-4(1996-2000;Rs12.62billion)
 Tata steel position
• 1990- Tata Steel was Asia's first and India's
largest(ISP) Integrated Steel Producer in the private
sector steel company.
• Tata Steel is the ranked sixth in the global steel sales. 
• In 2000 –ISO14001
• 5th phase in Apr2000
• Apr2001 Tata Steel was the lowest-cost producer of
steel.
 Cont….
WSD identified world class steel makers. They
identified 12 companies
Tata steel- 1st place with 131 points
In Aug2001- Mr.Muthuraman- managing director of
Tata Steel
He announced a new program known as Vision2007
aimed at Tata Steel’s (EVA)positive by the year 2007.
 Group Revenue
Rs. Cr
1,20,000

96,723

79,912

65,424

54,227
49,457
41,290
38,607
34,30034,59134,291
29,100
24,702
18,953
14,08715,995

91- 92- 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05 06
92 03 94 95 96 97 98 99 00 01 02 03 04 05 06 07
 BRANDING STEEL
• Steel companies registered heavy profits when
there was a boom in the economy.
• And profits were ERODED when there was a
depression.
 TWO PRONGED STRATEGY
• In the late 1990s the Indian steel industry was
experiencing a glut and this affected the profit
margins of players.
• TO reduce its dependence on the external
Environment,Tata steel adopted a two pronged
Strategy in this period.
1 branding its products
2 moving to high value added products
 STRONG CUSTOMER FOCUS
• Tata steel realized in order to get strong customer
focus.
• In the late 1990s in order to make its employees
more customer focused, the management initiated
internal campaigns emphasizing customer focus and
service.
• Tata steel launched campaigns with tag lines .
 TAG LINES
• Customer first - har haal mein (customer
comes first in all circumstances)
• Customer first - har haal mein (customer is
first in all circumstances and every year).
• Customer ki kasam - hain taiyaar hum (we are
ready for customer)
 functions
• In january 2000 Tata steel setup a branding task
force to explore the possibilities of branding its steel
products.
• The task force had evolved into a brand
management deparment by April 2000 .
• The company segregated functions
• 1)The market development
• 2)Order generation
• 3)order fullfillment
 CUSTOMER INTERACTION
• Tata steel also tried to improve customer
interaction.

• Their commitment is to interact with customers and

strive for customer enthusiasm and delight- instead
of just customer satisfaction.
• Another area of focus for TATA steel was moving
into high end products such as
• COLD ROLL PRODUCTS
 LAUNCED ITS FIRST BRANDED PRODUCT

• In April 2000,the company’s CRM Plant was

• Commissioned;coinciding with its commissioning
TATA STEEL launced its first branded product in
steel-
• TATA SHAKTEE GC SHEET used for roofing.
• The launch of Tata shaktee was followed by
• Launch of TATA TISCON REPARS (rods used in the
construction industry) in december 2000.
 Conti.,
• In february 2003,Tata steel launced another brand-TATA
STEELIUM.
• BY september 2003,TATA steel had three generic &three
product brands
• GENERIC BRANDS
• 1)Tata bearings , 2)Tata pipes , 3)Tata agrico

• PRODUCT BRANDS
• 1)Tata shaktee , 2)Tata tiscon , 3)Tata steelium
 HELP FROM FMCG
Tata steel also realized that its marketing
personnel were not aware of branding techniques
and themselves have doubts about the feasibility of
branding steel.

To overcome this obstacles this TATA STEEL sought

help from FMCG COMPANIES to give employees a
better understanding of how brands were built in
the FMGC sector.
 TRAINING PROGRAMS
• The company initiated training programs for its
marketing personnel & organized seminars and
workshops where speakers fro other sectors spoke to
the employees about the issues involved in branding.
• It also formed separate marketing teams for its ‘long’
and ‘flat’ products resulting in a focused approach
for both long and flat products.
 RETAIL VALUE MANAGEMENT
• Implemented a program of Retail value
Management by under which the company
• Provided training to sales people recruited by
retailers to help increase sales.
• The company realized, however that its
branding and marketing initiatives had to be
supported by an adequate network of
distributors.
 DISTRIBUTION REVAMP

 CUSTOMER SEGMENTS:
1. B2B
2. B2C
1.B2B:
– Industrial customer such as Maruti,Telco,Ford etc
– 80% of its total sales were from 200 large business
customers
– 20% sales are 5000-6000 customers who are B2C
 NEW STRATEGIES FOR B2B

 Customer Value Management Program:

 “Add value to how customer is using steel.”
 Tata Steel covered- Ashok Leyland, L&T by 2002 &
planned to cover Godrej and Boyce by 2003.

2. B2C:
 Problems:
 Lack of consumer awareness about brand name,
quality
 Product & price plays vital role
 Solution: Good Distribution System
 NEW STRATEGIES FOR B2C

 Housing & Construction Sector

 Reduction in distribution layers:

 Tata steel had 4 or 5 layers in distribution
 Examined FMCG companies
 Reduced layers for effective decision making

 Appointment of New Dealers in 2003

 Contd…

 Hired Booz Allen Hamilton

 Hub & Spoke Model:
 Reduce logistics cost
 By 2003-shut down 12 stockyards
 Hubs at- Sankrail, Vijayawada, Nagpur &
Delhi.
 Sub-hub- Faridabad to meet demand from
North India
Benefits Reaped
Year Flat Products Long Products FP+LP

FY’01 5 11 7

FY’02 6 15 9

FY’03 8 19 12
 Benefits Reaped
• Tata Steel succeeded capturing the mindshare of the customers

•Customers started asking Tata Steel products by name.

• Farmers specifically asked for Tata galvanized wire ropes.

•Able to build brands by capturing mind and heart share.

Future Prospects
• Co-branding with high end customers

•Focus on improving is product-mix

•OEM and construction sector

•Selling through distributors

•Extensive Market Research and channel management initiatives

Future Prospects
• 12% to 34% in 3 years of branding

•Aims to increase CR steel in automobile sector from 30% to 39%

•13% to 40% in white goods segment

•Clearly aiming on high end customers