“A

STUDY ON THE PRICING AND SALES STRATEGY OF SECONDARY AND BY-PRODUCTS AT SAIL (BOKARO)”

SUMMER PROJECT REPORT Submitted to

RAJAGIRI BUSINESS SCHOOL In partial fulfilment of the requirement for the award of POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) 2009-2011 BY

NITISH KUMAR SINGH ROLL NO: P09128

Rajagiri Business School Rajagiri Valley Kochi- 682 039
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Project executed at

SAIL (A Government of India Enterprise) Bokaro Steel Plant Bokaro Steel City, Dist- Bokaro (Jharkhand)

Under the guidance of Mr. Govind Barman Junior Manager (Marketing) (Project Guide) Bokaro Steel Plant Jharkhand Mr. K. Tharu Benny (Faculty Guide) Rajagiri Business School Kochi, Kerala
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DECLARATION

I, Mr. NITISH KUMAR SINGH, 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 the regulations of Rajagiri Business School for the award of the PGDM.

I further declare that no part of this report has been replicated from any other Project work, article or book.

Place: Bokaro steel City
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SSD). SANYAL (AGM. Manager. Marketing) and I must pay special thanks to Mr. MEENA KAMAL (Sr. I take this opportunity to thank all those who have made the endeavor of mine successful for me and for all. BPP). Mr. S & C). KOCHI Page 4 . Tharu Benny. Faculty Member. 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. Manager. SRIKANTA (DGM. Manager.K. All are from Bokaro Steel Plant. Rajagiri Business School. Mr. A. So. Marketing).Date: (NITISH KUMAR SINGH) Acknowledgement An endeavor is not complete and successful till the people who make it possible are given due credit for making it possible.J. I also express my thanks to the officers and staff of the training institute. RAJAGIRI BUSINESS SCHOOL.K. Mr. be taking a great opportunity to thank those entire people who help throughout my project. KHASNOBIS (Sr. A. Cochin for having spared his valuable time with me and for all the guidance given in executing the project as per requirements. MISHRA (AGM. K. K. I would like to thank to Mr. GOVIND BARMAN (Jr. KACHHAP (DGM. STORE). I extend my sincere thanks to Mr. Bokaro Steel Plant. N. Marketing) and Mrs. These people really been kind enough in providing me all kind of available data and information. C. without their help I would have been unable to complete my project.

NITISH KUMAR SINGH CONTENTS PAGE RAJAGIRI BUSINESS SCHOOL. KOCHI Page 5 .

KOCHI Page 6 .CHAPTER 1 EXECUTIVE SUMMARY RAJAGIRI BUSINESS SCHOOL.

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. During my training I had to find out mode of sale of secondary products of BSL.Executive Summary This study investigates “the Pricing and Sales strategy of Secondary and byproducts at Bokaro Steel Plant”. Marketing Department is the newest genesis from the SAIL and attempts to reach their where no corporate has ever ventured so far. fixed price and tenders are used for marketing purpose BSL. Various steps involved are as follows. Delhi. KOCHI Page 7 . Primary products are sold by CMO. Data were mainly collected from marketing department of BSL. The survey was conducted in Marketing Department and Sales Coordination department. BSL is the largest Steel manufacturing sector of India and is top ranked in the global fortune 500 companies. 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 RAJAGIRI BUSINESS SCHOOL. This study is done for SAIL. BSL The present study was undertaken to see the mode of sale and pricing methods of Secondary Product of SAIL.1. I was to find how auctions. To know about the e-auctions of marketing department.

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 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.

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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. India’s 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
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According to an estimate crude steel output at the biggest Indian steelmaker is roughly 144 tonnes per worker per year. ISPAT and JVSL. KOCHI Page 11 . The Indian steel industry is organized in three categories i.5 mT and utilize iron ore and coal/gas for production of steel.e. electric arc furnaces.000 tonnes. Structural Weaknesses of Indian Steel Industry Although India has modernized its steelmaking considerably. The main producers and other major producers have integrated steel making facility with plant capacities over 0. nearly 6% of its crude steel is still produced using the outdated open-hearth process. The main producers are Tata Steel. however. which belongs to the SAIL (Steel Authority of India Ltd.the construction of an integrated steelworks in Rourkela. but this was subsequently raised to 1 million tonnes.. The initial plan was an annual capacity of 500.) group. Labour productivity in India is still very low. and (3) Forward linkage with about 1. SAIL. RAJAGIRI BUSINESS SCHOOL. Orissa was signed between the Indian government and the German companies Fried Krupp und Demag AG. providing feedstock for steel producers. other major producers and the secondary producers. sponge iron and melting scrap to produce steel. while the other major producers are ESSAR. The capacity of Rourkela Steel Plant (RSP). main producers. and RINL. (2) Approximately 650 mini blast furnaces. 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. whereas in Western Europe the figure is around 600 tonnes. induction furnaces and energy optimizing furnaces that use iron ore. This 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. At a very early stage the former USSR and a British consortium also showed an interest in establishing a modern steel industry in India. is presently about 2 million tonnes.200 re-rollers that roll out semis into finished steel products for consumer use.

Strengths of Indian Steel Industry • Low labour wage rates • Abundance of quality manpower • Mature production base • Positive stimuli from construction industry • Booming automobile industry Outlook The outlook for Indian steel industry is very bright.India is deficient in raw materials required by the steel industry. KOCHI Page 12 . 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. It is also expected that steel industry will undergo a process of consolidation since industry players are engaged in an unfettered rush for scale. India's hard coal deposits are of low quality. Insufficient freight capacity and transport infrastructure impediments too hamper the growth of Indian steel industry. Iron ore deposits are finite and there are problems in mining sufficient amounts of it. 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. RAJAGIRI BUSINESS SCHOOL. This is evident from the recent acquisition of Corus by Tata.

2. KOCHI Page 13 .1COMPANY PROFILE RAJAGIRI BUSINESS SCHOOL.

power. producing both basic and special steels for domestic construction.. Govt... SAIL was again recognized in the following manner. However. had a very clear vision about the role of Steel in the development of our country. West Germany and U. Rourkela Ispat Ltd. Hindustan Steel Ltd. was formed and three Steel Plants of 1 MT capacity each. Pt. engineering. our first Prime Minister. Accordingly. Jawaharlal Nehru. KOCHI Page 14 . when Hindustan Steel Ltd. (1918). (SAIL) and the same was incorporated on January 24. Rourkela and Durgapur with assistance from USSR. soon after independence.. wholly owned subsidiaries of SAIL merged into it and started functioning as Units of SAIL. 1973.. decided to abandon the holding company concept in 1978 and a bill was presented to the Lok Sabha. Govt...K. Durgapur Ispat Ltd. with an authorized capital of Rs. Although TATA Iron & Steel Company (TISCO) has been establishment in 1907 marking the beginning of Indian Steel Industry followed by Indian Steel Co. Bokaro Steel Ltd. respectively. Salem Steel Ltd.. During struggle for independence. RAJAGIRI BUSINESS SCHOOL. were established with provision of further expansion at Bokaro. Govt. they were too small to meet the development requirements of a big country like ours. work could be started at fast pace only in 1954.. Bhilai Ispat Ltd. decided to establish Steel Plants in Public Sector. railway.. automotive and defense industries and for sale in export markets. SAIL was formed by registration of a company under the companies Act and not by the Act of Parliament.2000 crores. in the 1st Industrial Policy Resolution of the Govt. To improve the functioning of Steel Industry.. SAIL International Ltd.Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker. which was named as Steel Authority of India Ltd. decided to form a holding company during 1972. Therefore.

plates. SAIL’s Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide. at present. CMO encompasses a wide network of 38 branch offices and 47 stockyards located in major cities and towns throughout India. Bhilai. limestone and dolomite mines. HSCL and NMDC become independent Companies and started functioning under Ministry of Steel. Two special steel plants at Durgapur and Salem produce a wide range of alloy and special steels. SAIL produces iron and steel at four integrated plants and three special steel plants. 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. electrical sheets. at Bokaro. railway products. With technical and managerial expertise and know-how in steel making gained over four decades. Management Training Institute (MTI) and Safety Organization at Ranchi. SAIL today is one of the largest industrial entities in India. Ranked amongst the top ten public sector companies in India in terms of turnover. also became independent under the Ministry of Steel and refractory units also came under them. including the Company’s iron ore. including hot and cold rolled sheets and coils. This vital responsibility is carried out by SAIL’s own Central Marketing Organization (CMO) and the International Trade Division. SAIL. bars and rods. SAIL has its own in-house Centre for Engineering and Technology (CET).MECON. 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. galvanized sheets. 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 steel industry. located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. stainless steel and other alloy steels. KOCHI Page 15 . Durgapur and Rourkela. Bharat Refectories Ltd. structural. However. SAIL’s wide range of long and flat steel products are much in demand in the domestic as well as the international market. SAIL manufactures and sells a broad range of steel products. is having capacity of 12 MT of crude steel through its four integrated Steel Plants. SAIL’s captive mines are under the control RAJAGIRI BUSINESS SCHOOL. Kiriburu and Meghatuburu Iron Ore Mines were attached with BSL as their Captive Mines. Besides. Thus.

Durgapur Steel Plant (DSP) in West Bengal 3. by virtue of its "Navratna" status. OWNERSHIP AND MANAGEMENT The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. Alloy Steel Plant (ASP) in West Bengal 2. Visvesvaraya Iron & Steel Plant (VISL) in Karnataka SUBSIDIARIES 1. Bokaro Steel Plant (BSL) in Jharkhand 2. However. RAJAGIRI BUSINESS SCHOOL. KOCHI Page 16 .of the Raw Materials Division in Calcutta. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Calcutta. Salem Steel Plant (SSP) in Tamil Nadu 3. Indian Iron & Steel Company Limited (IISCO) in West Bengal. Bhilai Steel Plant (BSP) in Chhattisgarh SPECIAL STEEL PLANTS 1. Rourkela Steel Plant (RSP) in Orissa 4. Almost all SAIL’s plants and major units are ISO Certified. SAIL. enjoys significant operational and financial autonomy INTEGRATED STEEL PLANTS 1.

2. West Bengal  Central Coal Supply Organization (CCSO) at Dhanbad. Jharkhand  Centre for Engineering & Technology (CET) at Ranchi. West Bengal  SAIL Consultancy Division (SAILCON) at New Delhi  Research & Development Centre for Iron & Steel (RDCIS) at Ranchi. Maharashtra Electrosmelt Limited (MEL) in Maharashtra OTHER UNITS  Raw Material Division (RMD) at Kolkata. Jharkhand RAJAGIRI BUSINESS SCHOOL. West Bengal  Growth Division (GD) at Kolkata. KOCHI Page 17 . Jharkhand  Management Training Institute (MTI) at Ranchi. West Bengal  Central Marketing Organization (CMO) at Kolkata. Orissa  SAIL Safety Organization (SSO) at Ranchi. Jharkhand  Environment Management Division (EMD) at Kolkata. Jharkhand  Central Power Training Institute (CPTI) at Rourkela.

• NTPC SAIL Power Company Pvt.JOINT VENTURE SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce. KOCHI Page 18 . Ltd RAJAGIRI BUSINESS SCHOOL.

KOCHI Page 19 .com Private Limited A joint venture between SAIL and Tata Steel on 50:50 bases. • SAIL-Bansal Service Center Pvt. a subsidiary of the US Steel Corporation. RAJAGIRI BUSINESS SCHOOL. SAIL has formed a joint venture with BMW industries Ltd. 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. • Metaljunction.Set up in March 2001. • Bokaro Power Supply Company Pvt. on 40:60 bases to promote a service centre at Bokaro with the objective of adding value to steel. 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 steam generation facilities at Bokaro Steel Plant. promotes information technology in the steel sector. • UEC SAIL Information Technology Limited This 40:60 joint venture between SAIL and USX Engineers & Consultants. this company promotes e-commerce activities in steel and related areas. • Bokaro Electric Supply Company Pvt. Ltd. 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.

• 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. Likely to commence operations by March'2010. • Romelt-SAIL (India) Ltd Romelt Technology developed by Russia for reducing of iron bearing materials. BOKARO STEEL PLANT A PARTNER IN NATION BUILDING RAJAGIRI BUSINESS SCHOOL. National Mineral Development Corporation (NMDC) and Russian promoters for marketing stage reactor with the use of oxygen. Jalpaiguri for supply of Dolomite to DSP and other plants. which is carried out with carbon in single A joint venture between SAIL. KOCHI Page 20 .2 MT cement plant at Bhilai. • Bhilai JP Cement Ltd SAIL has also incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.

the fourth integrated plant in the Public Sector . first as a subsidiary and then as a unit. through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. RAJAGIRI BUSINESS SCHOOL. The construction work started on 6thApril 1968.started taking shape in 1965 in collaboration with the Soviet Union. and was later merged with SAIL.INTRODUCTION Bokaro Steel Plant . It was originally incorporated as a limited company on 29th January 1964. KOCHI Page 21 .

Tin Mill Black Plates (TMBP) and Galvanized Plain and Corrugated (GP/GC) Sheets.5 MT of liquid steel. 1997 and the Continuous Casting Machine on 25th April. material and know-how. Hot Rolled Plates. Bokaro is producing top quality hot rolled products that are well accepted in the global market. 1998. All units of 4 MT stage have already been commissioned and the 90s' modernization has further upgraded this to 4. LPG cylinder. Hot Rolled Sheets. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1. work roll bending. KOCHI Page 22 . pipe and tube.The Plant is hailed as the country’s first Swadeshi steel plant. A new hydraulic coiler has been added and two of the existing ones revamped. The modernization of the Hot Strip Mill saw addition of new features like high pressure de-scalers. Directions RAJAGIRI BUSINESS SCHOOL. Bokaro has provided a strong raw material base for a variety of modern engineering industries including automobile. New walking beam reheating furnaces are replacing the less efficient pusher type furnaces. hydraulic automatic gauge control. built with maximum indigenous content in terms of equipment. The new features added in modernization of SMS-II include two twin-strand slab casters along with a Steel Refining Unit. quick work roll change. laminar cooling etc. Cold Rolled Coils. The Steel Refining Unit was inaugurated on 19th September. With the completion of Hot Strip Mill modernization.7 MT ingots steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. Cold Rolled Sheets. Bokaro is designed to produce flat products like Hot Rolled Coils. barrel and drum producing industries.

CORE VALUES OF SAIL Core Values RAJAGIRI BUSINESS SCHOOL. The modernization plans are aimed at increasing the liquid steel production capacity. VISION To be a respected world–class corporation and the leader in Indian Steel business in quality. coupled with fresh rolling and coating facilities. Brand Bokaro will signify assured quality and delivery. productivity.Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in India. KOCHI Page 23 . The new facilities will be capable of producing the most premium grades required by the most discerning customer segments. profitability and customer satisfaction. offering value for money to the customers.

02 tones/man/year as on 30. SSD has a dual role to play in RAJAGIRI BUSINESS SCHOOL. the department works with Ferrous [Iron & steel] scrap to salvage it & make it useful by adding value to it. 2010 stood at around 26. KOCHI Page 24 .10 Scrap and Salvage Department As the name signifies. The company’s labor productivity 244.04.Satisfaction Customer Concern for People Profitability Consistent of Excellenc e Commitment HUMAN RESOURCE SAIL’s total manpower at the end of 30 April.288.

g. In a nut shell SSD’s role is to ensure that all Iron and Steel Scrap (unwanted at place production) are transported to site processed and transformed to usable shape. In the shape of fish tails or irregular edge trimming or produce which are below the planned size. mechanically or by size and shape. the finished products are categorized into three parts: RAJAGIRI BUSINESS SCHOOL. Secondly. damaged structure or equipment or may be process arising. Primarily it has to supply Iron and Steel scrap to Steel Melting Shop (SMS) as a technological input in the Steel Melting process. broken or worn out parts. This may be in the form of maintenance waste e. The prime products continue on their production flow towards the final defined output.overall scheme of things in the works division. Every department of the plant from Coke Oven to Cold Rolling Mill produce mental waste termed scrap. 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. TYPES OF PRODUCTS In Bokaro Steel Plant. size and quality (free of slag etc. while the arising has to drop out as they are not suitable chemically.) and transported SMS Magnetic Scrap Yards for using as coolant in the converter bath. KOCHI Page 25 . Surplus scrap after supplying the requirement of scrap is offered for external sale to generate cash resources for the Company.

By-Products: These products are not originally produced by Bokaro Steel Plant. rounds. MS SLAB END CUTTING WITHOUT FISH TAIL RAJAGIRI BUSINESS SCHOOL. 3. Prime Products: These are the actual products. Rail cutting. channels. 2.1. KOCHI Page 26 . Scrap etc. Secondary Products: These are the defectives or rejected materials due to improper mixing of chemical components or fail to meet the optimum requirements. billets. Rod cutting. 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. which are originally produced for example. but are outcomes while producing the prime products. Following Items fall under the category of Secondary Products:- (A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG 1. angles etc. blooms. Defective Rails. Scraps generated inside plant are also termed as Secondary products.

NG TOLUENE 3.TURNING & BORING. KOCHI Page 27 . HP NAPHTHALENE 6. (C) COAL CHEMICALS AND BY PRODUCT 1. MG BENZENE 2. U/R AMC/MCB BRICKS. ANTHRANCENE OIL 7. 10. (B) OTHERS 1. 3. HARD MEDIUM PITCH – LIQUID STATE RAJAGIRI BUSINESS SCHOOL. CARBIDE SLUDGE. 3. LIQUID ARGON. 4. BE GRNAULATED SLAJ (BOTH BY FIXED PRICE AND TENDER). 8. U/R MAJ CHROME MAJ BRICKS. LIQUID NITROGEN. 9. PIG TRON. HARD MEDIUM PITCH – SOLID STATE 9. EXTRA HARD PITCH 8. 7.FR. MS THICLE PLATE CUTTING (25-40 MM) MIXED W. 5. LS NAPTHA 4. SB OIL 5. SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS. FERROUS SIELPHATE – LOOSE.2. 2. 6. FINE IRON CHIPS FROM IMP (FE-70% APP).

use these as a raw materials for different finished products making huge profits.15200 cores of money every year. By-Products and coproducts of BSL is around Rs. Out of this Steel Scarp arising itself brings about Rs. By selling secondary Products to the Local market new industries are developed for re-rolling the Secondary materials to make finished products. the plant is also not losing anything. Last year average price of scrap product were between Rs. the management plant decided to sell it to the local market.12000/ton to Rs. By selling it to the different Mills/traders/Processors the plant earn around Rs. secondary products requires re-melting it again for the required composition of the materials as per the desired specification. It has also increased the small-scale industries and employment opportunities.NECESSITY OF SELLING THE ''SECONDARY PRODUCTS" The net sales realization from all the Secondary products. Profit is the main aim of every business. KOCHI Page 28 . Re-production of main products from the. and when the realization of these products for the finished products proves to be costlier. The traders /processors/re-rollers.600 crores which is quite more than money the big industries.4000 per tones of the direct profit than by re-producing it to the main product.16000/ton RAJAGIRI BUSINESS SCHOOL.

KOCHI Page 29 .18511 Rs.42900 Rs.39603 Rs.6000 Rs.13200 Rs.18000 “ROLE OF MARKETING DEPARTMENT” RAJAGIRI BUSINESS SCHOOL.32392 Rs.20533 2008-2009 Rs.31029 Rs.16628 ------Rs.47864 Rs.38354 Rs.35300 Rs.30961 Rs.Latest Price of different By-Product which BSL were sold in April & May 09 with previous year price Item Hard Med Pitch Ferrous Sulphate Naphthalene Anthracene oil Benzene Toluene LS Naphtha S Boil 2007-2008 Rs.39080 Rs.23331 ------Rs.31050 Rs.42793 Rs.13805 Rs.19588 2009-2010 -----Rs.32900 Rs.

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 RAJAGIRI BUSINESS SCHOOL. KOCHI Page 30 .

with marketing of Primary Products for home sale or export through CMO. it includes scraps of iron and steel slag. It is engaged. The secondary section deals with the secondary Products. coal and coke fractions. The Marketing development section deals with the MIS and strategic Planning activity come under this section. The Marketing Departments sales procedures are covered by the guidelines given by SAIL Corporate office DELHI. The 4. and is given by CMMG (CORPORATE MATERIAL MANAGEMENT GROUP). coal chemicals. As a matter of fact. By-Products/Waste Products. Now this section has got ISO 9002 certificate. ORGANISTATION CHART OF MARKETING DEPARTMENT (BSL) GM (Marketing) RAJAGIRI BUSINESS SCHOOL. 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 SAIL’s plant including BSL is done by CMO (Central Marketing Organization) which is a unit of SAIL.0 Million tones section known as plate mill section dealing with plates. and Idle Assets etc.responsibilities to sell BSL’s Secondary Products. (b) Marketing of secondary products and coal chemicals are done directly by Marketing Department of BSL. the Secondary & ByProducts are marketed by the individual Plants only. KOCHI Page 31 . The Export section deals with the activities of the exports in respect of Iron and Steel items produced by Bokaro steel plant. Marketing of these products are conducted by various sections by marketing department of Bokaro Steel plants.

) Slag. Mgr. QC. RTI. Cord. (Mktg. Waste. Safety Officer Jr. Steel Ad & Est.Jr. Scheme Sr. (Mktg. Mgr. Iron. Mgr. (Mktg. Smug. Price Monitoring. HK.) Reports. & other queries reply. (Co-ordn. Surplus Sr.) Audit. Ammonium Sulphate & Ferrous Sulphate Manager (Mktg. Sec. Mgr.) Sec. (Mktg. KOCHI Page 32 . Contract Cell(MM). Mgr. MIS Jr. Sales AGM(Mktg. U&S. Zinc Dross. & Est.) FUNCTION OF MARKETING DEPARTMENT RAJAGIRI BUSINESS SCHOOL.)/Mktg. Vigilance. Mgr. DCA. (Mktg. Admn.) Idle Assets.) Secondary Steel. Contract Cell(MM) Sr. ISO. Training Officer DGM (Mktg..) Coal& Chem.

cancellation of orders etc. this section carries out product pricing and related activities.1. policies and procedures are as follows:- I) Positioning the product a value based place in customer mind.e. directly by BSL and by CMO. to get orders for an underutilized mill. VII) Development of new qualities of steel. modification of product scheduling till the orders are completed. sections. RAJAGIRI BUSINESS SCHOOL. All the risky developments. On day to day basis it takes care of the dispatches i. monthly. some of the programmes. III) Optimizing the product-mix by proper utilization of available stocks. To sell all the secondary products directly i. development of new Profiles. VI) Co-ordinations with CMO from stages of enquiry. IV) Receiving Enquiries and complaints. for exports. To monitor the orders issued by CMO.e. Put pressure on CMO. 3. and daily rolling programme of Rolling mills in consultation with CMO and mills. 4. V) Coordinating the works of mills and traffic department so as to maximize dispatches. This plan is based on the sales forecast receive from JPU SPL/ Iron and steel controller. So that these orders can fulfilled in time. VIII) Periodical market surveys of products to analyze the market position. II) Finalize annual sales plan and quantity. 2. weekly. KOCHI Page 33 . taking out solution to cripple `situations. daily dispatch are checked. POLICIES OF MARKETING Marketing Planning has responsible function in the working of marketing department.

IX) Implementation of suggestions received from the customers’ feedback. Coal chemicals are the main product which is to be marketed by the Marketing Department of Bokaro Steel Plant. X) Ensure customer satisfaction by meeting customers regularly. 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 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. Managing director's approval. the larger the quantity purchased lower will be the prices. Price list also indicates the sales tax and Excise duty to be levied. Quantity of material to be lifted. On this 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. Almost all the products are sold on the fixed price basis. 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. KOCHI Page 34 .e. Finally the managing director approves the prices set by the pricing committee. Further the techniques of break-up-pricing are adopted i. a price list is prepared for all the potential buyers. The various factors taken into consideration while pricing the re-rollable items can be enumerated as follows: (a) (b) (c) Prices offered in the auction sales. 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. provide redress to their problems and fulfillment of demand. Thus the interested parties place their orders with the marketing RAJAGIRI BUSINESS SCHOOL. This technique encourages the buyers to purchase larger quantity.

member  DGM (BPP).1 lakh. Chairman  GM (Marketing). RAJAGIRI BUSINESS SCHOOL. KOCHI Page 35 .  Forecast of next month.  General market condition. It holds meeting at least once in a month. The payment for the material required is to be in advance. member  DGM (Sales Coordination).  Material in stock. member For Scrap goods the DGM (SSD) replaces the DGM (BPP). Every customer is required to have a security deposit amount of Rs.department on the basis of price list reviewed every month. Standing Pricing Committee: The committee reviews the price of various products and takes decision in favor of maximizing the profit. Convener  DGM (Finance). if there is any increase in subsequent month. Rests of all the members are always present in all the meetings. While deciding the price following points are kept in mind:  Dispatch of the last month. The committee consists of:  GM (Utility). But the volatility of the market and pool of different products lead to a number of meeting of the committee in quick succession. member  DGM (Stores). 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.

DISTRIBUTION For the purpose of distribution of steel (as per JPC) policy in fashion. Defense. CHANNELS Bokaro steel plant has zero level channels as it directly sells to the customers. as per the need. Availability of transport facility. B. On the other hand for sale of scraps there is no such policy adopted by Bokaro Steel Plant. Railways etc. and ED (Works). Minute report of all the meetings is prepared and it contains the existing price and the proposed price. The balance 40% is kept for the category B. Priority sector customer e. are under category A and about 60% of the product allotted to them. There is no intermediate among producer and consumer. The final price is moved to the MD through the official channel including GM (Marketing). C & D. Marketing Department always remains in contact with the customers’ extracts information about the current market situation on the basis of interaction between them. As a part of promotional activities. GM (Marketing). After the MD’s approval the price becomes applicable and the circular indicating the revised price is printed.g. SALES PROMOTION Sales Promotion consists of a diverse collection of incentive tools designed to stimulate quicker or greater purchase of particular product. GM (Finance and Accounts). BSL is employing following activities: a) Discount slabs is provided to boost the sales. customers are categorized into A. issued and distribution to the customers and all the concerned departments. Executive Director (MM). decides the frequency and time of meetings to be held. description of which is given below: RAJAGIRI BUSINESS SCHOOL. KOCHI Page 36 . C & D. Customers are served on first come first served basis.

000 tones • 10. It induces market research visiting customer premises attending to customer complaints.15% Discount ----. KOCHI Page 37 . c) Sometimes when new item is to be sold sales notice is given in the newspaper. Customer Satisfaction BSL adopts following practices for customer satisfaction. MARKETING STRATEGIES OF BSL Steel being an industrial commodity it is very necessary to maintain customer relationship for profitability and smooth running of company.000 • Above 15. Procedure / process adapted to access current / future expectation of customers.• Up to 10. c. a. RAJAGIRI BUSINESS SCHOOL. But most of the time local customers get informed from other customers. CMO has Market Management Group where specialists monitor changing demand pattern and development in each Market segment is carried on.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. 1. b.000 to 15.000 ----- No Discount ----. Best among the application is accepted with a view to get the best revenue.

It has posted market development officers at various locations that are its eyes and ears for monitoring current and future expectation of its customer. Major product modifications are done as per their specific needs of the Market segment thereby creating product differentiation packages. PRODUCTION ACCORDING TO MARKET NEEDS BSL is always in touch in market and try to produce according to market needs. To understand customer needs seminars and workshops are also organized by BSL. The Business-planning department is exclusively meant to study customer's changing demand scenario and assess current and future expectation. KOCHI Page 38 . e. RAJAGIRI BUSINESS SCHOOL. Easy access to customers to seek assistance makes proposals send comments and compliments.d. Building Customer Relationship BSL has adopted the philosophy of recognizing segment of the market and identifying key customer in segment and giving them preferential treatment. MARKET DEVELOPMENT BSL has valued customers group in identifying their specific needs Specific to that group thus segmenting and developing market segment for our products. f. CMO sales executives have been trained to use direct selling as tool for building long lasting relationship with the customers. BSL tries to produce quality products / new products which fulfill the need of market.

certain percentage of profit.authorities is made. Therefore there was no scope for marketing in other words it was not economical. pricing is COST PLUS PRICING. The plant capacity has been increased from 2. 3 PRICE FIXATION Pricing is done basically by the CMO. Taking into consideration cost of production. The product will be then released to the concerned person after proper and complete payment to the pay-in.5 million tons to 4 million tones in the late sixties.5 million-tonnes capacity respectively. Certain receipts and bills quoting the material code.e. 4 DESPATICH As the product is manufactured. MARKETING OF SECONDARY PRODUCTS During the seventies and sixties when the plant was one million-tones and2.2. STOCK REDUCTION Giving facilities like door delivery. KOCHI Page 39 . and all expenses are sent to connected stockyard. government steps on pricing. credits facility and rounds the clock stockyard operation. road dispatches. nature. New technology has been adopted while increasing the capacity of the plant where by RAJAGIRI BUSINESS SCHOOL. quantity. price of raw material fright charges etc. this department directs the stockyards the mode of transport to the destination with reference to dispatch program and dispatch advice is mode. i. 5 DOCUMENTATION With the dispatch of product the Finance department calculates the total cost of product as per demand order. arising of secondary products was limited and such arising was recycled for re-melting.

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. There by the plant also has geared up its strategy towards this end. The plant extends all types of facilities and assistance to these small-scale units.the use of arising for re-melting drastically reduced. RAJAGIRI BUSINESS SCHOOL. These small scales Sector need the "Secondary products" as input raw material for their production. Committed delivery. The company has engaged in educating them the use of secondary products for different kinds of end products for consumption of general public. in turn gives scope for more employment opportunities. In the nineties we have seen lot of changes in the economic scenario of the country. The plant for marketing has adopted following strategy: 1. Competitive price Quick complaint settlement. 3. The concept of more employment in Public Sector Enterprises has changed to more profits. 2. This has given more impact to the making of secondary product. 4. It is necessary to mentioned here that the companies' profit consists of 10% turnover of secondary products for the Last two years. Culture of customer service. This. KOCHI Page 40 .

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 at the 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.

RAJAGIRI BUSINESS SCHOOL, KOCHI

Page 41

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 respective parties. 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.
RAJAGIRI BUSINESS SCHOOL, KOCHI Page 42

THE STRUCTURE OF THE PROCESS OF SALES AND MARKETING

PRODUCTS

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)

STEEL

CHEMICAL & BYE-PRODUCTS

SLAGS & WASTE PRODUCTS

IDLE ASSETS

PRICING

RAJAGIRI BUSINESS SCHOOL, KOCHI

Page 43

2. KOCHI Page 44 . submission of “Die Registration Certificate “etc. Sale of material made to re-rolling mills and scrap processing units and the lots of sale between them maintained at 67:33. 3.DEMAND REGISTRATION OF BSL Marketing department of BSL sales homogeneous steel scrap at fixed price.g. which are actual customer. which has been lifted by them during the last preceding year or allocated by the state industries. Department. In the offer letter party is advised to complete commercial formalities e. For this purpose the procedure for registration of demand and offers is as below: 1. RAJAGIRI BUSINESS SCHOOL. Preference for sale of material given to local parties and those. Based on the above consideration “offer letter” issued to the party offering a quantity. Material is not sold for trade.

RAJAGIRI BUSINESS SCHOOL. KOCHI Page 45 .

KOCHI Page 46 . 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.Selling of Secondary & By-Product This involves a direct marketing process. Different modes of selling are used for these products MODE OF SALE Fixed E-auction Price Sale Inter Plant Transfer Tender RAJAGIRI BUSINESS SCHOOL.

KOCHI Page 47 .CHAPTER 3 PROBLEM FORMULATION RAJAGIRI BUSINESS SCHOOL.

KOCHI Page 48 .3. The company has to identify what all improvement should be done to increase the sales of its secondary and by-products and where the products of BSL are lacking as compared with the competitor.1 BACKGROUND OF THE STUDY Bokaro Steel Plant is the largest steel plant in India. offering value for money to the customers. It is hailed as India’s first swadeshi steel plant. 3. Brand Bokaro signify assured quality and delivery. It is situated in Jharkhand. built with maximum indigenous content in terms of equipment. Ispat) in the market. Essar. 3.2 RESEARCH PROBLEM Though Steel Authority of India Limited (SAIL) is the leading steel maker company in India. material and know –how. the customers of secondary and by-products prefer other steel company for purchasing secondary and by-products due to the higher price of secondary and by-products of Bokaro steel plant. RAJAGIRI BUSINESS SCHOOL. to provide information that will help SAIL to improve its service and be competitive with other brands (Tata.3 SIGNIFICANCE OF THE STUDY To know the customer preference of different secondary and byproducts brands with their corresponding prices and selling procedures among customers Hence on. It is the fourth integrated public sector steel plant in India built with Soviet help.

CHAPTER 4 RESEARCH PROCESS RAJAGIRI BUSINESS SCHOOL. KOCHI Page 49 .

2010. • To find the selling methods preferred by the customers.1 OBJECTIVE OF THE STUDY • To find the extent to which price affect the sales of secondary and by-products.3 RESEARCH METHODOLOGY OF THE STUDY  Type of Research. KOCHI Page 50 . 4.2 SCOPE OF THE STUDY The study was conducted over a period of one and half months from Mid April to May. • To find the view of customers on the pricing and selling methods of secondary and by-products adopted by BSL.  Secondary Data: Internet.4. • To find the extent to which price affect the sales of secondary and by-products.Descriptive Research  Data Source Primary Data: Interview. previous and current records and magazines published by BSL. • To find the reasons for brand preference. Questionnaires. The study includes the customers of secondary and by-products in Bokaro district 4. RAJAGIRI BUSINESS SCHOOL.

merchandising strategies and price on the shelves of Secondary and Byproducts taking into consideration the strategy of its competitors. consumer demand.Customers in the towns of Bokaro district  Sample Size. 2.Bokaro district  Population. PRICING STRATEGY: Pricing strategy is the price planning that takes into view factors such as firm’s overall marketing objectives. competitor’s pricing and. market and economic trends OPERATIVE DEFINITION: The term pricing strategy here means the link between BSL objectives. sales presentation and order generation aimed at achieving a firm’s sales quotas or targets. Sampling technique.4 DEFINITIONS 1.25 customers  Data analysis and interpretations using percentage analysis 4. product attributes. RAJAGIRI BUSINESS SCHOOL. SALES STRATEGY: Sales strategy is the planned approach. KOCHI Page 51 .Questionnaire method  Area of study. financial goals.Convenience sampling  Data collection Tools. brand promise. policy formation.management. prospect identification and qualification.

prospect identification. Their aim to achieve sales targets of Secondary and Byproducts is studied here. KOCHI Page 52 . CHAPTER 4 DATA ANALYSIS RAJAGIRI BUSINESS SCHOOL.OPERATIVE DEFINITION: The sales strategy in this research is referred to as the sales presentation. order generation of BSL aimed at achieving BSL sales targets. policy formation.

AND INTERPRETATION Classification of customers Trader 6 Manufacturer 14 Processor 3 others 2 RAJAGIRI BUSINESS SCHOOL. KOCHI Page 53 .

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. KOCHI Page 54 . Reason for purchase from BSL Quality 11 Cheap transportation 7 Local market 5 price 2 RAJAGIRI BUSINESS SCHOOL.

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 23 No 2 RAJAGIRI BUSINESS SCHOOL. KOCHI Page 55 .

Types of products purchased by customers Secondary steel 10 By-products 11 Slag 3 Idle assets 1 RAJAGIRI BUSINESS SCHOOL. KOCHI Page 56 .Interpretation Most of the customers of secondary and by-products of Bokaro Steel Plant are satisfied with the quality of the product.

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 18 No 7 RAJAGIRI BUSINESS SCHOOL. KOCHI Page 57 .

Most of the customers are dealing with BSL and TATA steel both. Some customers are dealing with BSL and ISPAT steel and ESSAR steel. KOCHI . Reason for selecting more than one company Low price 4 High quality 7 Better service 5 Page 58 better selling methods 1 others 1 RAJAGIRI BUSINESS SCHOOL.Interpretation The customers of secondary and by-products are dealing mainly with two brands.

Difference in price between BSL and other steel plants Yes 20 RAJAGIRI BUSINESS SCHOOL. 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.Interpretation The diagram indicates the reason for selecting more than one company for purchase of secondary and by-products. KOCHI No 5 Page 59 .

Difficulties while dealing with BSL Yes 14 RAJAGIRI BUSINESS SCHOOL. cost conscious customers always go for a brand that serves his purpose at a minimum cost. Since. KOCHI No 11 Page 60 . BSL has to decrease its price of products. to be in competition with other steel plants secondary and by-products.Interpretation This clearly indicates that there is a price difference between BSL secondary and by-products to other steel plants. Hence.

Any better selling adopted by other steel plants? Yes 3 RAJAGIRI BUSINESS SCHOOL.Interpretation Most of the customers find difficulties while dealing with Bokaro Steel Plant. KOCHI No 22 Page 61 . Some customers also want better customer service. Most of them find lack of single window system while dealing with BSL. This leads to slow process of trading.

Complain registered Yes 11 RAJAGIRI BUSINESS SCHOOL.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. KOCHI No 14 Page 62 .

Interpretation Most of the customers do not complain about the problem they faced while trading with BSL because they don’t feel management will be serious about their problems. So. customer’s confidence towards management of BSL should be increased. Complaints executed Yes 7 RAJAGIRI BUSINESS SCHOOL. KOCHI No 4 Page 63 .

Naptha 2 RAJAGIRI BUSINESS SCHOOL.oil 3 Hard medium pitch 1 Page 64 L. KOCHI . Out of which 7 said that their problems are executed. Types of by-products purchased Benzene 9 toluene 5 S. So.S.Interpretation Only 11 customers said that they registered their complaints about the problem they faced in trading with BSL. BSL is friendlier towards customers.B.

KOCHI Page 65 . Since. No. Most of the customers buy more than one by-products. each customer buys different types of by-products.Anthracene oil 2 Ammonium sulphate 9 extra hard pitch 1 Interpretation To get the information about types of by-products purchased by customers is also very important. Of years while trading Below 2 years 2years-4years above 4 years RAJAGIRI BUSINESS SCHOOL.

This may be the reason for the large customer base of BSL in secondary and by-products market. Pricing method preferred Fixed price RAJAGIRI BUSINESS SCHOOL. KOCHI e-auction Page 66 .4 5 16 Interpretation Of the customers of Bokaro steel plant secondary and by-products most of them are trading with more than 4years.

KOCHI roadways Page 67 .4 21 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 RAJAGIRI BUSINESS SCHOOL.

7 18 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 local market. Main benefits received from BSL Quality Price Availability Transportation Page 68 discount structure RAJAGIRI BUSINESS SCHOOL. KOCHI .

KOCHI . Most of them receive a combination of benefits from BSL. Availability of products is 2nd major benefits that are received by customers. Does volume limit satisfy needs of customers? Yes No Page 69 Somewhat RAJAGIRI BUSINESS SCHOOL.15 3 9 7 4 Interpretation The main benefits customers receive while trading with Bokaro steel plant is quality of secondary and by-products.

KOCHI .7 13 5 Interpretation The above graph shows the satisfaction level of customers regarding volume limit for the purchase of secondary and by-products. Experience with marketing personnel Good Bad Page 70 Excellent RAJAGIRI BUSINESS SCHOOL. Most of the customers are not satisfied with the volume limit of products.

KOCHI . Most of the customers are having good experience with the marketing personnel. Few customers are having bad experience with marketing personnel.22 2 1 Interpretation This indicated the experience of customers with the marketing personnel while trading with BSL. Accessibility of Information about bids to be taken place Highly dissatisfied dissatisfied neutral Page 71 satisfied highly satisfied RAJAGIRI BUSINESS SCHOOL.

2 4 5 13 1 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 market becomes competitive. KOCHI . Most of the customers are satisfied about the accessibility of the information. Order handling procedure of BSL Good bad poor Page 72 excellent RAJAGIRI BUSINESS SCHOOL.

20 2 2 1 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 byproducts. Satisfaction with price of secondary and by-products Yes RAJAGIRI BUSINESS SCHOOL. KOCHI no Page 73 . for being in the competition with other steel plants BSL is having good order handling procedure and that will make his customers happy. So.

BSL should decrease its price of the products. KOCHI no Page 74 . From the survey it was found that customers are not happy with the price of the product. Hence.12 13 Interpretation Price is one of the most important factors which customers are taking in consideration while purchasing products. Satisfaction with the current selling methods of BSL Yes RAJAGIRI BUSINESS SCHOOL.

Some of the customers are not satisfied with the current selling methods of BSL but they are not able to give proper reason for their dissatisfaction.21 4 Interpretation The customers of secondary and by-products in Bokaro steel plant are satisfied with the current selling methods of Bokaro steel plant. Overall Experience while dealing with BSL Highly dissatisfied dissatisfied neutral Page 75 satisfied highly satisfied RAJAGIRI BUSINESS SCHOOL. KOCHI .

there are a large number of customers who also said that they are not happy with BSL. Most of the customers said that they are satisfied with the experience while trading with BSL. RAJAGIRI BUSINESS SCHOOL. But. KOCHI Page 76 .2 3 8 10 2 Interpretation The above graph shows the experience of customers while dealing with Bokaro steel plant.

KOCHI Page 77 .CHAPTER 5 SUMMARY OF FINDINGS RAJAGIRI BUSINESS SCHOOL.

2. 3. 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. Low price.e. 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. 4. Of the four major types of products produced by BSL in Secondary and by-products division. RAJAGIRI BUSINESS SCHOOL. 5. 6. Most of the customers deal with Bokaro steel plant and TATA steel for purchase of secondary and by-products. KOCHI Page 78 . most of the customers are purchasing secondary steel and by-products from BSL. Most of the customers belong to the category of manufacturers i.SUMMARY OF FINDINGS 1. 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. they are using secondary and by-products of BSL as a raw material.

E-auction is the most reliable selling method and majority of customers are happy with it. Most of the Customers responded that they find difficulties while dealing with BSL. 10.7. So.Most of the customers don’t register complain about the problem they faced during purchase but majority of customers who registered their complain get solution for that. BSL has to increase the confidence of customers on them.Among by-products category of products Benzene. 12. Majority of customers responded that other steel plants are providing secondary and by-products at a lower rate. fixed price are same as the other steel plant and customers are satisfied with those selling methods. RAJAGIRI BUSINESS SCHOOL. 8. 9. Toluene and Ammonium sulphate are having highest number of customers.Most of the customers are loyal to BSL because most of the customers are dealing with Bokaro steel plant for more than 4 years. 11. The other methods of selling adopted by BSL like tender. KOCHI Page 79 .

16.Quality. Only few customers responded that price and discount are the benefits they receive from BSL. Some of the customers are using Railways for the transportation because by-products are mainly transported through railways.Majority of the customers responded that that they are satisfied with the overall experience while dealing with Bokaro Steel Plant.Most of the customers are not happy with the volume limit that they receive from BSL.13.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.Roadways are the most common mode of transportation used by customers because all belongs to local market. 14. availability and transportation are main benefits that the customers of secondary and by-products of BSL receive from Bokaro steel plant. 15.Majority of the customers responded that they are happy with the order handling procedures of BSL. RAJAGIRI BUSINESS SCHOOL. KOCHI Page 80 . 18. 17.

KOCHI Page 81 .RAJAGIRI BUSINESS SCHOOL.

BSL should have to work on decreasing the price of its secondary and by-products and also increase its quality. Since. RAJAGIRI BUSINESS SCHOOL. customers are now conscious about cost cutting measures so they other brands over BSL. 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. 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.CHAPTER 6 CONCLUSIONS AND RECOMMENDATION 6. KOCHI Page 82 . Local market is one of the most important advantages than BSL is enjoying over a period of time but.

products of mainly these by-products have to be increased. Hence. So. Since. So. Bokaro steel plant should have to work on to provide better service for customers. BSL should have to work on to improve confidence of customers on them. Toluene and Ammonium sulphate are having highest consumption among by-products. majority of customers don’t register complain about the problem they faced during trading although most of the problem that are registered got executed. 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. Benzene. KOCHI Page 83 . So.Since. from the survey it was found that most of the customers are purchasing secondary steel and by-products from BSL. RAJAGIRI BUSINESS SCHOOL. The BSL secondary and by-products customers are having faith in the quality of these products. 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. 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. So.

Koshy Abraham. Published by Dorling Kindersley (India) Pvt.Marketing Research. • Malhotra N. KOCHI Page 84 .An applied orientation. RAJAGIRI BUSINESS SCHOOL.K. Ltd. New Delhi. Keller Kelvin. Marketing Management. New Delhi. Jha Mithileshwar.CHAPTER 7 BIBLIOGRAPHY BIBLIOGRAPHY Books referred • Kotler Philip.. Prentice Hall of India Private Ltd.

in • www.sail.com RAJAGIRI BUSINESS SCHOOL. KOCHI Page 85 .metaljunction.• Magazine published by SAIL • Training manual • Books of organization Websites referred • www.co.

CHAPTER 8 ANNEXURE RAJAGIRI BUSINESS SCHOOL. KOCHI Page 86 .

KOCHI Page 87 .QUESTIONNAIRE 1. Why do you prefer to purchase from BSL? a) Quality b) Cheap transportation c) Local market d) price 3. In which category of customer do you belong? a) Trader b) Manufacturer c) Processor d) Others 2. Are you satisfied with the quality of the product? a) yes b) no RAJAGIRI BUSINESS SCHOOL.

KOCHI Page 88 . Are you dealing with any other company other than BSL? a) Yes………………………………. 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. 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) 8.4. 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 RAJAGIRI BUSINESS SCHOOL. What type of products do you purchase from BSL? a) Secondary steel b) By-products c) Slag d) Idle assets 6. (please specify the name) b) No 7.

Since when you are dealing with BSL? a) Below 2 years RAJAGIRI BUSINESS SCHOOL.. Naphtha g) Anthracene oil h) Ammonium sulphate 14. KOCHI Page 89 .B. (please name that method) b) no 11.Did you complain about the problem faced? a) Yes b) No 12.Do you find better selling methods adopted by other plants for selling of secondary and by-products? a) Yes……………………………………. Oil d) Hard medium pitch e) Extra hard pitch f) L.Did complains get executed? a) Yes b) No 13.9. Have you faced any difficulties while dealing with the BSL? a) Yes…………………………………… (Please specify the reason) b) No 10.Which types of by-products do you deal with? a) Benzene b) Toluene c) S.S.

KOCHI Page 90 .What type of pricing method preferred by you while you are dealing with the BSL? a) Fixed price b) E.What is your experience with the marketing personnel? 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) RAJAGIRI BUSINESS SCHOOL.What mode of transportation are you using? a) Railways b) Roadways 17.b) 2years-4 years c) Above 4 years 15.What are the main benefits which you receive from BSL? a) Quality b) Price c) Availability d) Transportation e) Discount structure 18.auction 16.Does the volume limit of secondary products. help satisfy your needs? Yes No Somewhat 19. for bidding.

How do you rate the order handling procedure of the BSL? Good Bad Poor Excellent 22.1 2 3 4 5 21.Are you satisfied with the current selling methods of BSL? a) Yes b) No……………………………………(please specify the reason) 24. KOCHI Page 91 .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: RAJAGIRI BUSINESS SCHOOL.Are you satisfied with the price of the secondary and by-products? a) Yes b) No 23.

. . .TATA Iron and Steel Company. TISCO 4.. Page 92 3.National Mining Development Corporation ltd. .Central Power Training Institute. CPTI . . KOCHI . HSCL 5. . .………………………………………………… PLACE. RDCIS 7. NMDC 6. CET 8.Thank you for your sincere co-operation.Centre of Engineering and Technology..Metrological & Engineering consultants’ ltd. CONTACT NO..Hindustan steel works consultants Ltd.……………………………………………….………………………………………………………………………….Steel Authority of India Limited. NAME OF THE CUSTOMER. RAJAGIRI BUSINESS SCHOOL. DATE.Research and Development Centre for Iron and Steel. SAIL 2. MECON .……………………………………… ABBREVIATION 1.

BFGS . KOCHI Page 93 .Marketing Recovery Department.Blast Furnace Granulated Slag.9. MRD 10. . RAJAGIRI BUSINESS SCHOOL.

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