PROJECT REPORT ON

´ONLINE MARKETING AT ROURKELA STEEL PLANT (RSP)µ

Under the guidance of:
MR I.M PANDA, MANAGER, MARKETING, (IA &CDY) ROURKELA STEEL PLANT. Submitted by: Deepak Mohanta 3rd Semester MBA, G.M.College(Autonomous), SAMBALPUR.

DECLARATION

I do hereby declare that the project report entitled ³Online Marketing in RSP´ has been prepared by me under the guidance of my external guide Mr. I.M.Panda, Manager (Marketing), Rourkela Steel Plant (RSP), Orissa. It is only for academic purpose and it has not been published or presented any where else for the award of such degree.

DATE: PLACE:

Deepak Mohanta
Dept. of Professional Courses, G.M College(auto), SAMBALPUR

ACKNOWLEDGEMENT

It is my privilege to thank all of them who have supported me in carrying out this project successfully. Firstly I would like to express my sincere thanks to two separate concerns Department of Business Administration, G.M.COLLEGE and RSP, the former for arranging and guiding me to start the project and the latter for extending their noble help for its formation and completion. I express my sincere gratitude to Mr. I. M. Panda, Manager (Marketing) RSP for extending guidance and direction in preparing this project, without whose cooperation the project may not be completed. I would also thank all the staff of Marketing Department, RSP, who have spared their valuable time and extended their kind cooperation for data collection and preparation of this project.

Deepak Mohanta
Dept. of Professional Courses, MBA 3rd SEM G.M. COLLEGE

CERTIFICATE

This is to certify that the summer project entitled, ³Online Marketing at Rourkela Steel Plant,´ is an original piece of work done and submitted by Akankhya Parida has been carried out under my guidance and supervision.

I wish her a successful career in future

Mr. I. M Panda Sr.Manager(Mktg)IA&CDY Rourkela Steel Plant.

CONTENTS
CHAPTER 1 Introduction to Online Marketing CHAPTER 2 Brief write-up on SAIL CHAPTER 3 Objective of the Study ROURKELA STEEL PLANT (company profile) CHAPTER 4 Marketing Department of RSP CHAPTER 5 Questionnaire Data analysis Interpretation CHAPTER 6 Findings Recommendation CHAPTER 7 Conclusion Bibliography

CHAPTER 1  INTRODUCTION TO ONLINE MARKETING .

Online marketing is often related to public relations. also referred to as i-marketing. and wireless media. and sales. the term online marketing refers to using the power of Internet advertising to generate a response from your audience. It's convenient. Online marketing. sales. Since the Internet has now become a primary tool for the delivery of information. and provides the opportunity for companies to track results as a campaign progresses. affordable. The interactive nature of Internet marketing in terms of providing instant response and eliciting responses is a unique quality of the medium. offers several benefits. and information management. customer service. businesses of all sizes are using online marketing to increase awareness of their company's goods and services. Internet marketing is sometimes considered to have a broader scope because it not only refers to the Internet. In its simplest form. regardless of the exact method a company chooses to use. web-marketing. Internet marketing. but it includes management of digital customer data and electronic customer relationship management (ECRM) systems. email. is the marketing of products or services over the Internet. . advertising.marketing. Search Engine Marketing (SEM) or e-Marketing. Also known as Internet marketing or web marketing. In addition.INTRODUCTION Online Marketing Online. Internet marketing allows even the smallest of companies to compete in a global marketplace. online marketing is used by companies selling goods and services directly to consumers as well as those who operate on a business-to-business model. Internet marketing ties together creative and technical aspects of the Internet. The Internet has brought media to a global audience. development. including: design.

and paid inclusion are search engine marketing techniques that companies can use to increase their visibility in the search engine page results from Google and its competitors. Search Engine Marketing: Search Engine Optimization (SEO). visitor. subscriber. The associates receive a commission or other similar rewards for every sale. y y y y y . However. Email Marketing: Companies that use email marketing send promotional emails directly to customers. Interactive Advertising: Interactive advertising involves the use of animations and other graphic techniques to create ads that engage the viewer and invite participation. Display Advertising: Display advertising involves the use of web banners or banner ads placed on a third-party website to drive traffic to a company's own website and increase product awareness. Company websites that let visitors email interactive games or funny video clips to their friends are an example of a viral marketing effort.com uses to encourage private website owners to bring traffic to its site. Amazon.Common areas of interest within the field of online marketing include: y Affiliate Marketing: In affiliate marketing.com Associates Central is an example of an affiliate marketing program that Amazon. Viral Marketing: Viral marketing is a technique is which companies encourage customers to pass along information about their products or services. a business recruits associates to promote the company's products or services. or customer they bring to the company. paid placement. it can often be hard to distinguish between spam and legitimate email marketing messages.

which makes it difficult for your visitor to find what they are looking for. such as a law firm. iii. online distribution costs and of course. If you are having a sale. not a customer service point of view. Visitors to your website can get up to the minute information on each visit. Many sites were created with a marketing view. Easier to have outdated information on your site. The cost of spreading your message is next to nothing. Your store is open. iv. all must be factored into the cost of providing your service or product. thus timing of updates is critical There is no replacement for good old fashioned customer service. Further. hardware. your customers can start shopping at the discounted prices literally as soon as they open their email. 7 days a week. your customers are worldwide in reach. time.Advantage of Online Marketing i. ii. Online marketing is not free. The majority of internet marketers lack customer service and inquiry response programs. Updating your subscribers can be done almost instantly through email. The majority of websites also have poor navigation. The cost of software. ii. and can shop anytime that they want to. newspaper or online magazine. If you have an information sensitive business. Emailing your subscription base is more often cheaper than sending a letter through the mail. . maintenance of your site. wed site design. 24 hrs a day. iii. Disadvantages of Online Marketing i. you can deliver your products directly to your customers without having to use a courier.

CHAPTER 2     BRIEF WRITE-UP ON SAIL MAJOR UNITS PRODUCTS PRODUCED CENTRAL MARKETING ORG.(CMO) .

With a turnover of Rs. making important structural changes and continuous process improvements to meet the expectations of a satisfied customer. Bokaro.STEEL AUTHORITY OF INDIA LIMITED SAIL is India¶s largest steel producing company. with its products like Hot Rolled Coils and Plates. A vibrant company. SAIL has the second largest mining operations in India. Durgapur and Rourkela. including two subsidiaries. The four main integrated steel plants of SAIL producing carbon steel are located at Bhilai. SAIL is truly a market-driven company. coal. At present. The company owns and operates nine manufacturing plants. dolomite and limestone mines provide a competitive edge in terms of captive raw material availability Today. Salem and Bhadravati manufacture a variety of special and alloy steels. The year was 1973. while three plants at Durgapur. Moreover. being well accepted in the most sophisticated world markets. the Government of India has 86% ownership of SAIL. The event ± formation of India¶s largest steel company named steel Authority of India Limited (SAIL). . the company is among the top five highest profit earning corporate of the country. another at Chandrapur is the country's largest bulk producer of ferro-alloys. Its iron ore. 48. It is now focusing on its business of carbon steel making. exiting from areas outside its core competence. has dominated the Indian steel landscape. the company is moving towards becoming a leaner and flatter organization. which right from its inception. A subsidiary at Burnpur is a multi-product integrated plant. SAIL is also a global player.681 crore. Technological improvements in the area of steel making and modernization of the rolling mills have made the vast array of SAIL products a household name in the country. highly responsive to changing market dynamics.

Major Units : Integrated Steel Plants y Bhilai Steel Plant (BSP) in Chhattisgarh y Durgapur Steel Plant (DSP) in West Bengal y Bokaro Steel Plant (BSL) in Jharkhand y Rourkela Steel Plant (RSP) in Orissa Special Steel Plants y Alloy Steels Plants (ASP) in West Bengal y Salem Steel Plant (SSP) in Tamil Nadu y Visvesvaraya Iron and Steel Plant (VISL) in Karnataka Subsidiary y Maharashtra Elektrosmelt Limited(MEL) in Maharashtra y Indian Iron and Steel Co mpany (IISCO) in West Bengal . Management Training Institute (MTI) and Safety Organization at Ranchi. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Calcutta.SAIL has a well equipped Research and Development Center for Iron and Steel (RDCIS) at Ranchi. Almost all our plants and major units are ISO Certified. Our captive mines are under the control of the Raw Materials Division in Calcutta. SAIL has its own in-house Center for Engineering and Technology (CET). Besides. which helps to produce quality steel and develop new technologies for the steel industry.

Bars and Rods  Pipes  Billets/Blooms/Slabs  Stainless/Alloy Steels  Pig Iron Product Production: To achieve international production standards and extend the range of specialty steel products.PRODUCT¶S PRODUCED: SAIL·s product range semi-finished and finished material such as:  Hot Rolled Sheets and Coils  Cold Rolled Sheets and Coils  Galvanized Sheets and Coils  Plates  Electrical Steel Sheets  Tin Plates  Rails. Increased automation and adherence to rigorous quality norms have enabled SAIL to produce steel for sophisticated user segments and thus enlarge its market base. SAIL has recently modernized its integrated steel plants at Durgapur. To gain wider international acceptance of its products. Besides offering the facility of direct dispatch of material from its plants to customers¶ doorsteps. SAIL has introduced quality management systems and practices in its work functions. Wheels and Axles  Structurals. Rourkela and Bokaro. SAIL maintains . Product Sale: With the largest marketing network among Indian steel producers. SAIL has the most penetrative market reach. Adoption of the latest steel refining technology and the globally preferred process of Continuous Casting have resulted in increased availability of superior quality steels from SAIL. All major production processes and services of SAIL are certified to ISO: 9000 standards.

SAIL has recently introduced new processes like Key Account Management (KAM) in its marketing functions to further strengthen customer relations and provide quality service. customers now receive focused attention and improved service.      Production planning and dispatch co-ordination with plants. Totally oriented towards customer care. Every requirement of key customers is fulfilled by specially formed groups comprising marketing and plant personnel who have the responsibility of streamlining operations. Nodal stockyards with mechanized handling systems in select locations provide SAIL with an edge over its competitors in making steel materials readily available on just-in-time basis. Marketing of Steel products and fertilizers. CENTRAL MARKETING ORGANIZATION (CMO) All SAIL µs products except alloy. from order processing to fulfillment. . Market research. This ensures that the customers receive their supplies as per their requirements in time. special steels and stainless steels are marketed directly by CMO through units in co-ordination with rail. Authorized dealers ensure supply of SAIL steel in locations including those where stockyards do not exist. roads and shipping sector to ensure quality and promote dispatch of products. Information System. The main functions of CMO are as follows. Export of steel. With long and flat products being marketed by separate groups.an extensive branch office and stockyard network at 44 locations and a number of sales and customer contact offices spread all over the country. Import of coal and other consumables.

CHAPTER 3  OBJECTIVE OF THE STUDY  RESEARCH METHODOLOGY OF THE STUDY  ROURKELA STEEL PLANT(COMPANY PROFILE)  PRODUCT MIX (RSP)  PRODUCT & APPLICATION (of RSP)  MAJOR UNITS OF RSP  SPECIAL FEATURES OF RSP .

 Secondary Data: Internet.OBJECTIVE OF THE STUDY y To find the extent to which price affect the sales of secondary products. 2010.25 customers  Data analysis and interpretations using percentage analysis .  Sampling technique. y To find the customers dealing with RSP. y To find the effectiveness of e-marketing to the customer . previous and current records and magazines published by RSP. Questionnaires. RESEARCH METHODOLOGY OF THE STUDY  Type of Research.SUNDERGARH district  Population.Descriptive Research  Data Source Primary Data: Interview.marketing at RSP SCOPE OF THE STUDY The study was conducted over a period of one and half months from Mid April to May. y To find customer satisfaction on marketing process at RSP. The study includes the customers of secondary product in INDIA.Customers in INDIA  Sample Size.Questionnaire method  Area of study. y To find the view of customers on selling methods of secondary products adopted by RSP. y To find the procedure of e.Convenience sampling  Data collection Tools.

Company Profile ROURKELA STEEL PLANT (RSP) Rourkela Steel Plant (RSP). 1. ERW and SW Pipe Plants. Most of the old units were also revamped for effecting substantial improvement in the quality of products. reducing cost and ensuring cleaner environment. Subsequently. Hot Strip Mill. The plant was modernized in the mid-1990s with a number of new units having state-of-the-art facilities. including its Personnel Department and Steel Township. RSP was the first plant in India to incorporate LD technology of steel making.67 million tonnes of saleable steel. Plate Mill.9 million tonnes. Environment Engineering Department. are certified to ISO: 9001 standards. It is also the first steel plant in SAIL and the only one presently where 100% of slabs are produced through the cost-effective and quality-centric continuous casting route.9 million tonnes of crude steel and 1. its capacity was enhanced to 1. Sintering Plant II. Almost all major units of the plant. high quality pipes for the oil & gas sector and tin plates for the packaging industry. Special Plate Plant as well as Steel . RSP¶s Silicon Steel Mill. the first integrated steel plant in the public sector in India. was set up with German collaboration with an installed capacity of 1 million tonnes. It is SAIL¶s only plant that produce silicon steels for the power sector. tubular and coated products. RSP presently has the capacity to produce 2 million tonnes of hot metal. Its wide and sophisticated product range includes various flat.

It has a special plate plant where special alloy Steel Plates are shaped to different shapes as per requirement in the defense sector. 4.000 73. It has got an electrical sheet mill capable of producing both Dynamo and Transformer grade electrical sheet. SPECIAL FEATURES OF RSP 1.60.500 16. Finest Plant in India to adopt L.71. 6. 2.000 1.000 . 7.D.000 92. 3.000 75. It has two captive power plants (CPP-I & CPP-II) with a generation capacity of around 120 mw.000 55. Exclusively producing flat products.33. Process of Steel making. 5.000 85.98. 1st Public Sector integrated Steel plant to be set up in the country. PRODUCT MIX TONNES/ANNUM Plate Mill Plates HR Plates HR Coils ERW Pipes SW Pipes CR Sheets & Coils Galvanized Sheets (GP& GC) Electrolytic Tin-Plates Silicon Steel Sheets Total Saleable Steel 2. RSP has the distinction of being the unique Steel Plant in India with an integrated Fertilizer Complex.500 3.99.000 4.Township have been awarded ISO: 14001 certification for Environment Management.

High pressure transportation of oil & water. automobile. water supply. stators for high efficiency rotating equipment and relays. ERW Pipes . air conditioner ducting and structural Containers for packaging of various products including e Major Units Electrolytic Tin Raw materials play the most vital role in RSP¶s production Plates of 1. railway coach paneling. 1. Steel furniture.Products and its Application Products HR Coils Plates Chequered Plates CR Sheets & Coils Galvanized Sheets Applications LPG cylinders. etc. The annual input requirement of the plant includes 2.3 MT of coking coal.8 MT of iron ore dible oils. High pressure transportation of crude oil. etc. vegetables and confectionary items. Silicon Steel sheets & Coils Spiral Weld pipes Small generators. natural gas and slurry transportation. industrial sheeting. Roofing.5 MT of boiler coal. etc. drums. deep drawing and extra deep drawing. sewage disposal. Pressure vessels. washing machines.9 million tonnes (MT) of steel per annum. railway platforms. etc. grain silos. paneling. civil engineering pilings. etc. sewage disposals. railway wagon chasis and all types of high strength needs. barrels. white goods like refrigerators. ship building and engineering structures Flooring & staircases in the industrial installations. tube wells. 1. automobile bodies.

y Ore Bedding and Blending Plant RSP¶s Ore Bedding & Blending Plant (OBBP) has a base mix preparation system with on-ground bedding. The coke ovens are equipped with wagon tipplers.9 million tonnes (MT) of steel per annum. y Coke Oven RSP has five 4.8 MT of iron ore lumps.07 MT per annum. coke wharfage crushing together with screening and conveying systems.3 MT of coking coal. automatic handling and conveying facilities.6 MT of fluxes and other materials like tin. rod mills and roll crushers for flux and coke crushing.000 tonnes of material. 1. The facilities in OBBP include major installations like wagon unloading (tipplers & track hoppers). aluminium and Ferro-alloys. 1. Set up under the earlier modernization programme to provide pre-mix feedstock to Sinter Plant-I & -II. Sinter Plant-II is operating at more than its rated capacity since the year 2000.Major Units Raw materials play the most vital role in RSP¶s production of 1. zinc. raw material storage yard. The annual input requirement of the plant includes 2. iron ore crushing and screening system. 1. proportioning bins and elaborate conveying systems. 1.5-metre-tall coke oven batteries (COBs) that produce coke as the input for blast furnaces. . y Sintering Plant RSP¶S two sinter plants feed sinter to the blast furnaces with a combined capacity of 3. blending and conveying facilities.5 MT of iron ore fines. the plant has an annual dispatch capacity of 500. This has facilitated the increased usage of sinter in blast furnace burden.5 MT of boiler coal. coal blending provisions.

Provision for inspection by customer¶s nominees. This facilitates production of special steels for application in electrical machines. pipe making. with a combined capacity of 2 MT. secondary refining (ladle furnace and argon rinsing) facilities and two single-strand slab casters to produce 1. SMS-II Provided with the latest steel making. the shop is equipped with automation through three levels of computerized control.355. power distribution system.000 tonnes of steel slabs annually. SMS-I produces slabs through casting machines. y Plate Mill RSP¶s 3. y Steel Melting Shops SMS-I Apart from a computerized LD process which has enhanced shop capability. However. The Plate Mill also has a walking beam-type furnace with a capacity of 100 tones/hour for slab heating. boilers and auto chassis members.y Blast furnaces The four blast furnaces of RSP. the LA Vacuum Metallurgy Technique has been also adopted for secondary refining of steel. The mill has a production capacity of 299. . LD gas cleaning and recovery. produce hot molten metal for steel production. tin plate.1 meter wide. online ultrasonic testing and checking ensure dispatch of higher quality plates to customers. The shop was originally designed to produce ingots for conversion to slabs through the Slabbing Mill route.000 tones per annum. after the discontinuation of the ingot route. water and utility services. 4 high reversing mills are equipped with online thickness measurement facilities.

data logging and thyristorisation.y Hot Strip Mill The facilities of the 1. sampling and conveying systems. y Cold Rolling Mill Produces about 678. The tinplate shearing lines are equipped with sensitive pinhole detectors and an automatic sorting system. y Electrolytic Tinning Line The continuous electrolytic tinning line produces a shining tin-coated surface in a variety of coating thicknesses. y Silicon Steel Mills This unit produces steel for the electrical industry through various operations carried out in sophisticated. . There are 2 multi-roller-corrugating machines as well which produce corrugated sheets. RSP¶s Cold Rolling Mill has a modern 5-stand tandem mill and a 4-high 1700mm reversing mill.000 tonne of cold rolled sheets per annum. The tandem mill is equipped with automatic gauge control. y Galvanizing Lines Two continuous hot-dip galvanizing lines are equipped with jet-coating facilities.44 MT per annum mill has: ‡ Two new walking beam type reheating furnace (225 TPH) ‡ Roughing/sizing stand RoVo with automation ‡ Automated coil box ‡ Quick roll change system in Roughing Stand-1 and finishing mills ‡ Coil marking. x-ray gauge. continuous/semi-continuous processing lines and a 4-high reduction mill. Advanced process control and product testing facilities ensure product quality.

ultrasonic testing and eddy current testing are some of the features which ensure quality control. auditoriums. developed and executed in-house. The HRDC has received ISO 9001:2000 QMS certification. It consists of a Management Development Programme wing. skill upgradation shops. well-equipped workshops. internal movement of in-process and other material from one unit to another and dispatch of finished products in railway wagons to outside parties or SAIL warehouses. 40 locomotives and a network of 240 kms rail tracks across the plant. . This plant has been recently upgraded to enable it to produce API grade pipes. y Human Resource Development Centre (HRDC) The Human Resources Development Centre (HRDC) of Rourkela Steel Plant was set up in the late 1950s. The Electric Resistance Weld (ERW) Pipe Plant caters to the smaller diameter pipe consumers. and lecture halls for apprentices and a wellequipped library on a plethora of technical and managerial subjects. connects various functional departments of RSP into a single network. The department maintains 350 wagons. Hydrostatic pressure testing. y Computerization Rourkela Steel Plant¶s online Production Planning & Control (PPC) system.y Pipe Plants A highly sophisticated Spiral Welded (SW) Pipe Plant is equipped with submerged arc welding process and produces large diameter pipes. y Traffic & Raw Material The Traffic & Raw Material Department deals with procurement and supply of raw materials to various user departments.

providing healthcare facilities to improving infrastructure. SPECIAL FEATURES: COMMUNITY Caring. promoting advanced techniques of agriculture to skill enhancement. The objective of µspreading samriddhi¶ finds its true expression in the myriad activities taken up by the plant for the people living in its periphery. From education to women's empowerment. . Going beyond the realms of philanthropy or charity. Villagers from nearby areas are being trained in various income generation activities in this institute. Taking a unique step forward. Sharing and Spreading Smiles Rourkela Steel Plant has imbibed a credo to make quality steel and spread lasting smiles amongst the people living in its neighborhood. Certified with ISO 9001:2000 QMS.y Central Power Training Institute (CPTI) RSP¶s Central Power Training Institute (CPTI) is a CEA-certified category-1 institute that meets the statutory training needs of power engineers of SAIL. land and water management to livestock development ± the multifaceted approach of RSP aims at touching and shaping every aspect of life and living of its community neighbors. CPTI conducts training largely for operation and maintenance personnel of SAIL¶s captive power plants and Power Distribution Network departments. the plant has set up the Institute for Periphery Development that is functioning as the nerve centre of all the activities taken up under periphery development. RSP has adopted a strategy of ushering in sustainable development in its peripheral villages.

Adoption of 16 villages as Model Steel Villages is another significant stride taken up by RSP to create sustainable models of economic development. The hospital has several exclusive facilities like Burn Centre. Dialysis Unit. Partners in Progress Rourkela Steel Plant has always considered the small scale industries (SSI) operating in its neighborhood as its partners in progress. a 685-bed hospital run by RSP for its employees is a premier medical centre in the eastern region. and a musical fountain enthralling visitors. Creating a Healthy Environment Rourkela Steel Plant¶s concern for a healthy environment is symbolized by its wide network of Medical & Health Services. Ispat General Hospital (IGH). Nuclear Medicine. MRI Scan. In IGH the doctor-to-bed ratio is 1:4. Thyroid Clinic. A zoo in the park is the second biggest of its kind in the state and is home for a diverse variety of animals and birds. The hospital has a WHO-recognized Malaria . Scenic Steel Township Rourkela¶s Steel Township is a modern industrial habitation characterized by extensive green coverage and aesthetic installations. CT Scan. A number of artistically crafted monuments not only add significant grace to the sylvan landscape of the township but also showcase the innovative usage of steel for creating objects of art. etc.8 and occupancy rate is 87%. Intensive Care. The Indira Gandhi Park in the heart of the steel city is another effort made to highlight nature in all its glory and grandeur. Bio-Medical Waste Management System. Cardiac Clinic. Blood Transfusion Centre. An exclusive wing ± Peripheral Industries and Vendor Development (PIVD) ± has been set up in RSP under its Materials Management Department for catering to the development needs of local SSI units. Efforts to beautify the township and upgrade its facilities never cease here.

.Research Centre. Dry Fog Dust Suppression systems & Wet Scrubbers in different units. The Biju Patnaik Hockey Stadium in Rourkela is a full-fledged hockey stadium equipped with a state-of-the-art synthetic turf. Reuse. RSP has also provided dedicated Waste Water Treatment Units in different plant units for treatment of wastewater. Bag Houses. The treated wastewater is recycled back to the process and blow down water is discharged only into drains for final treatment at Lagoon before discharging into river. steel plant. hone budding talents and make Rourkela a sporting hub. RSP has established a full-fledged Environmental Engg. district and even schoollevel tournaments to impart a fresh impetus to sporting activities. Environment Management RSP has provided air pollution control equipment like ESPs. The Sports Department of Rourkela Steel Plant has conducted several national. Sports Hub RSP strongly believes that one of the most fruitful investments that can be made in the present generation is in the field of sports. It also has the distinction of imparting postgraduate DNB training in 11 disciplines. regional. RSP has adopted 4R (Reduce. Recover & Recycle) strategy for enhancing the utilization of wastes. With the dedicated efforts of RSP collective the pollutant levels have shown drastic reduction. Department way back in 1989. along with Environment Laboratory which is certified with IS/ISO14001.

CHAPTER 4  MARKETING DEPARTMENT OF RSP  SECONDARY STEEL STOCK YARD(SSSY)  CENTRAL DISPOSAL YARD  SECONDARY PRODUCTS  MARKETING PROCESS AT RSP  MARKETING PROCESS AT RSP  ONLINE AUCTION OF MATERIALS  Metaljunction.com & RSP  OPEN SALE PROCESS .

.P Mohanty and other executives are also in charge of the department. the yard has been expanded suiting to the requirement and necessity of RSP. The Managing Director Mr. There are two major departments under RSP as the Secondary Steel Stockyard and central disposal yard. A. This system is a new system and it has been introduced in 1st April 2004 and for last two years it has been running successfully. MARKETING SECTIONS Marketing section of RSP has four major sections they are as follows. It is constructed outside the grill gate along the Bisra Road with an initial investment of about 1. But due to modernization and introduction of the computer technology the work force have been reduce to less number of employees.5 crores in the year 1991-92 and it came into operation on 02/03/1992.MARKETING DEPARTMENT OF RSP The marketing department of RSP was earlier called as the Order Department. After the implementation of ³Single Window System´ the work process is minimized. Subsequently. B. A) SECONDARY STEEL STOCK YARD (SSSY) The secondary steel stockyard is the main stockyard of RSP where the secondary products are kept for sale.N Singh heads the marketing department of RSP. General Manager Mr. y Secondary Steel Stockyard y Central Disposal Yard. During past few years the Marketing Department of RSP had a huge work force of employees. It is only deal with the secondary product of RSP.

The sale order should be sufficient (i. There are certain things.ALLOTMENT OF MATERIALS AT SSSY Everyday SSSY sends the lists of plots/lots available for allotment .The plots/lots are fed to the computer. The party should have submitted the revised price acceptance. This contains party name. is assigned (5 digits) to the materials on entry to the stockyard. suspension of sale order. helper & R. The materials coming through wagons are more in quantity and are allotted plot nos. which are taken into account. For entry of trucks into the stockyard identification of the driver. All the items and valid sale orders of those products are separately randomized through computer on that day and lists are generated. cancellation etc. A private contractor is appointed for loading and unloading the material at SSSY. After all the customers have been considered the next round for allotting materials is started. that is of 4 digits. and last date of lifting.C no. A unique SSSY no. After the payments have been made the release order is issued. Based on random list the senior plot/lot of the senior. of the vehicle is required.r.t to expiry date. which is a financial document of sale. The following aspects are checked through computer:          The concerned sale order should be valid w. . that are of three digits. Item is allotted to the senior valid sale order. The materials coming through truck (10 tonnes) are allotted lot nos. award price.e. details. minimum 10 tonne) for allotment of one wagon.

On the last day lifting the material DCR (delivery completion report) is issued for each lot. There are thousands of these types of products in two different ways (a) store in open air (b) store in close air. surplus and obsolete ite ms. These materials are collected & complete lots are formed.   Materials going out of SSSY. which comes to the finance department. The pricing co mmittee of RSP fixes the prices for lots. these are collected daily basis and recorded in a registered called ³DAY BOOK´. These ite ms are spare parts. This DCR is required for refunding EMD money to the customer. an invoice will be made-then dispatch advice will be given on which one can take out the material. The materials are collected from different units of plants as per Executive Director (Works) procedure order. . These lots are offered to disposal. looking at the behavior of the items. The scope of this procedure order is restricted to all arising of RSP except for those which are sold by marketing department to ancillary industries and unused arising of RSP¶s own products. B) CENTRAL DISPOSAL YARD Central disposal yard indicates the area where the materials of different shape and size declared as scrap of unserviceable or absolute are stored.

GP Sheets Def.SECONDARY PRODUCTS IRON STEEL SCARPS: Def. HR Coils Def. chequered Plates CR Steel Items HR Steel Items Scarp of pipes Semi Rolled Plates Short plates Coil End cutting Pig Iron SPECIAL PLATES: Misc Iron and Steel Items COAL CHEMICALS: HP Naphthalene Anthracene Oil FERTILIZER: AMM. Sulphate WASTE PRODUCTS: Ferrous Sulphate U/R FCLY Bricks Mag Carbon Bricks BF Granulated Slag LCO GR-II Carsolic Oil Cal. Plates/HR Plates Def. CRNO Sheets Def. Dolofine Cal. Lime-10mm LD Slag . CR Coils Def.

This is where the process splits. however. post a picture and description of the item. but has allowed the auction to reach a much greater audience.Marketing Process at RSP Process Followed:  ONLINE AUCTIONING PROCESS  FORWARD AUCTIONING  REVERSE AUCTIONING  OPEN SALE PROCESS ONLINE AUCTIONING : Online auctioning is the process whereby users log onto a website and bid for items or services posted on this website by other users. there are people who fraudulently cheat the system. Like the traditional auctions. is fundamentally different. . Although most sites do provide a general tutorial helping new users set up an auction. For both the first step of the process is usually for the seller to identify a product or service they want to sell. and then to find a company to host the auction and act as the auctioneer. and then conducts all transactions online or by phone. The person opting to use a company based on the web as the selling tool must log on. The way online auctioning works is similar to normal auctioning outside the cyber world. there is a minimum bid that bidders must reach to buy the product. there is an auctioneer (the hosting website) that receives a cut of the sale. The process of both online auctioning and traditional auctioning. and each day sales are made all over the world. most likely these users will not receive any direct help from the auctioneer.

FORWARD AUCTIONING Forward auction are electronic auctions. 2. Its offer effective mechanisms for offloading excess stock or capacity. which can be used by sellers to sell their items to many potential buyers. manufacturers and liquidators all benefit in different ways. Sellers and buyers can be individuals. For bidders: . For the auction holders: Many types of business supply goods through online auctions. organizations etc. ADVANTAGES: 1.-Here buyers wish to obtain a unique item. b) Marketing efficiency auction. Forward auctions can help them to: y y y y y acquire new customers and extend geographic reach test new products and establish price points dispose of excess inventory quickly price according to demand and stock levels reduce sales costs by minimizing marketing spend.Here buyers seek to obtain the lowest price for an item they are interested in. Two types of forward auctions are common: a)Liquidate auction. Bidders in these auctions can source non-critical goods cheaply. distributors. Retailers.

and prices typically decrease over time. second-hand equipment inexpensively reduce the time spent on procurement by setting up automated searches and bid alerts REVERSE AUCTIONING A reverse auction is a type of auction in which the roles of buyers and sellers are reversed. The buyer then chooses the cheapest or best quality product out of the bids made from the sellers. and the price typically increases over time.the bigger the business. It generally results in quicker and cheaper procurement. . Reverse Auctioning refers to when a buyer submits a request for a product or service and sellers submit bids. y The auction mechanism replaces time-intensive negotiations with suppliers. the better the saving.Buying through forward auctions reduces procurement costs. In a reverse auction. Businesses can use them to: y y y source non-critical supplies. sellers compete to obtain business. ADVANTAGES: 1. In an ordinary auction (also known as a forward auction). buyers compete to obtain a good or service. like stationery and office furniture acquire specialist. Well-managed auctions significantly reduce the time between the issuing and awarding of contracts. For the auction holder The mechanism favors buying power .

factors like service. Enables sellers to promote their goods to an extremely large and diverse range of customers. Materials can be sourced from a larger pool of suppliers. y y y y y They are popular with major customers who have large budgets. without having to launch a sales campaign. Even unsuccessful bidders gain valuable market information. You gain access to customers who are ready to buy quickly. irrespective of their location. under/over pricing is less likely. There are advantages for purchasers and suppliers: y y y y y y The process is open and builds mutual trust. Cost reductions can be significant: 10%+ cost savings are frequently reported. As it is a transparent process. Bidding aggressively can be a quick way to offload stock or build market share. Easier to find information and records containing details of the previous history of the seller. Participants have to specify their requirements very precisely. Competing on price isn't the only way to win business . For suppliers Reverse auctions aren't just a popular cost-cutting option for large businesses.y y y Procurement departments save time sourcing and negotiating with suppliers. Buyers and sellers have access to global markets. 2. . Benefits of online auctions: An online auction is a dynamic pricing environment. quality and reliability can count in your favor.

Due to limited capacity of stock RSP sale the chemicals at a very cheap rate to the local venders. online. For scrap items they are invited open tenders from the venders and for the secondary products they are taking the help of the Metaljunction. in this process 50% of the secondary product material is placed for auction to small scale Industries (SSI) of ORISSA. Before this online auction process they used to followed the ³Order Booking System´. For scrap items they are invited open tenders from the venders and for the secondary products they are taking the help of the Metaljunction. METAL JUNCTION SERVICES LIMITED Metaljunction. if secondary items are fails to make raise any demand then those material are sale through open auctions.com private Ltd (MJ) is a 50:50 joint venture of TATA Steel and SAIL.com. it is today India¶s largest e-commerce . Steel Authority of India on the Auction Platform of mjunction services ltd. online. RSP still follow the open sale auction in some cases. Founded in February 2001. while the remaining 25% for open sale and 25% for registered traders. It includes the secondary and scrap products.ONLINE AUCTIONING AT RSP This Online Forward Auction is being conducted for Rourkela Steel plant. which is doing auction through. It includes the secondary and scrap products. The materials after getting their respective plot and lot numbers are placed for the auction. AUCTION OF THE MATERIALS The materials after getting their respective plot and lot numbers are placed for the auction. which is doing auction through. In this system the venders were not in a position to accept the material at any cost and RSP was forced to sale the less defective secondary product at a cheaper rate.com.

metaljunction was awarded ISO 9001:2000 certification by Det Norske Veritas. Netherlands. . 3. channel financial services and software solution services. minerals and metallics. The certification covers the quality management system standards of the company for e-sales. Has arranged finance of Rs 28. Though Rourkela Steel Plant does not have the system of online auction facility they are going through this process. 2.500 buyers and scores of public sector and private sector companies today buy and sell products using the convenience. transparency and efficiency offered by metaljunction. y Provides finance to distribution channels/direct ends users in association with leading banks.company (with e-transactions worth Rs 9. 2005. which has improved the efficiency. Defining of bidding rules for each auction in consultation with the client. Finalization of the auction items in consultation with the client. In September 2005. ³Service Provider¶ is the agency (operator) primarily providing the service of the Forward auction to the ³client´. y Provides e-selling services for the following materials: Steel Ferro alloys. The steel supply chain in India has been transformed by the company. e-sourcing. is bought and sold.131 crore) and runs the world¶s largest e-market place for steel. ROLE OF SERVICE PROVIDER 1. especially secondary steel. 2005.7 billion till September 30. transparency and convenience with the way in which steel. Over 3. y Has sold 3 million tones for its clients. since inception up to September 30. METAL JUNCTION AND RSP Now RSP is doing their secondary stock marketing online through Metaljunction.com. Non-ferrous metals Obsolete capital goods(idle assets) y Also provides e-selling services on a BPO mode.

e) Providing access to the approved bidders to participate in the Auction. the bidder shall commit to fulfill outlined obligations under the contract. ROLE OF BIDDER 1. from the willing bidders and forwarding the same to the Client. d) Collection of EMD. Bidders hereby confirm that they shall commit to lift the item (being bid for) at the price entered by them in the auction engine AND at the terms and conditions specified herein by the Client. f) Summarizing the Auction proceedings and communicate the outcome to the Client. The bidder would be provided access to the Auction through a ³User ID´ protected by a ³Password´.a) Enhancing bidder awareness of and comfort with the auction mechanism and bidding rules. c) Enlarging the customer base by introducing new bidders. Bidders are also requested to change the password allocated to them by the ³Service Provider´ to keep their confidentiality. The bidder needs to ensure that the ³User ID´ and ³Password´ is not revealed to unauthorized persons. Letter of Interest etc. Access to the auction mechanism shall be provided to all the approved bidders subsequent to obtaining their written consent to the General Rules & Regulations and the Letter of Interest. The bidder would participate in the auction with the aim of bidding to secure the auctioned item in the auction 2. 3. . All Prices entered shall be legally binding on the bidders. In the event of winning an allotment in the auction mechanism. b) Input of the Auction items and defining the bidding rule in the auction engine. 4. Payment of Earnest Money Deposit (EMD) as decided by the client before the start of the Forward auction will be one of the necessary conditions for participating in the auction.

However. the functioning of the Auction Engine (launch. The bidders shall bid on the terms specified by the client & place their bid in the auction engine in the manner specified by ³Service Provider´.e. Duration of the Auction. The duration of the auction would normally be for a pre-specified period of time. for that there are some conditions. and closure) would be guided by the Server Time. Timings of the Online Bid. Terms and Conditions for Online Auction: a) In online auction every one can take participate in India.GMT + 0530 hrs. so there is a big chance of false registration. the bidding rules may state the conditions when the pre-specified duration may be curtailed/ extended. . in the event of any deviations between the Server Time and the Indian Standard Time.5. Bidders are advised to refresh both the windows of the Auction Module check the exact Server Time (displayed in both the windows). All the timings of the Online Bid shall be based on the time indicated by the Server hosting the Auction Engine. However. It refers to the length of time the price discovery process is allowed to continue by accepting bids from competing bidders. The conditions include: y Curtailment of auction duration in the event of no bids for a specified period of time (Inactivity Time) y Automatic extension in the event of bids being entered towards the end of the scheduled duration to facilitate the other bidders to view and react to the bid. operation. It shall be the endeavor of "Service Provider" to ensure that the Server Time reflects as closely as possible the Indian Standard Time (IST) i.

.)/ Banker¶s Cheque ( B. f) In the event of the Tenderer having submitted more than one quotation against an Invitation to Tender. . d) Bidders shall bid for the TOTAL LOT VALUE basis e) All quotations submitted by the Supplier/his authorized agent/representative by logging on to the above web site for Enterprise Procurement System using the User Identification provided by the Service Provider and password by which the person logging into the Enterprise Procurement System is authenticated and filling up the structured on-line forms available against each Invitation to Tender. who will submit required EMD and the documents stated above. c) The Service provider will provide a ³user ID´ and a ³Password´ to each individual customer.) drawn on any schedule bank.C.D.)/ Pay order (P. All earlier quotations submitted in the Enterprise Procurement System shall be deemed to be superseded and invalid and will remain un-opened in the System and also not available for viewing the details by the Tenderer or the company or the Service Provider once the valid quotations against the said Invitation to Tender are opened on the scheduled date and time by the company¶s authorized representative. to enable them to participate in the dynamic auctioning process of the items / lots of their choice to be conducted in the Website. in favor of Steel Authority of India Ltd. Rourkela Steel Plant. 00. shall be considered as legal and binding documents having in all opinions the same legal validity as a physically signed quotation by the Tenderer/His authorized agent/representative. only the latest quotation submitted by him shall be considered as the valid quotation for consideration of opening of the quotation and issuance of Acceptance of Tender by the company.000 as security deposit that is called earnest money deposit (EMD) in the form of Demand draft (D.b) Before take participate in the auction the vender should deposit Rs 1.O.

m) PAYMENT PROCEDURE After receive the sale order. and dispatch date. l) In case any customer backs out for one or more number of lots after issue of sale order. payment conditions. the method of settlement shall be through the process of Arbitration by a Sole Arbitrator appointed by the MD/Chief Executive of Steel Authority of India Limited.1% penalty . vender name.   10 Days for lifting Next 7 days with .) will be issued to the successful bidders whose bids are acceptable to the Management.No penalty . which contains the detail information about the materials. j) In case where the bids given by the customers in Online auction process are not acceptable. EMD deposited by the party will be forfeited and the party will be banned for a period of 3 months from participation in FA. The venders get some stipulated period for lifting the materials as followed. i) For any disputes arising during the course of submission of the quotations online or for any matters subsequent to acceptance of such on-line quotations. Rourkela Steel Plant. the EMD for the one time participants shall be refunded within 10 (Ten) days. h) Management reserves the right to accept or reject any or all the bids or to apportion the materials in any manner deemed fit and this decision shall be final.g) Final Bids given by the successful bidders in the Online Auction process shall be kept valid for 60 Days from the date of auction for the acceptance by the Management.O. EMD of the permanent Customers shall be retained by RSP for their participation in future Auctions k) Letter of Acceptance / Sale Order (S.

The penalty will be charged to the total amount of material left in the stockyard. 00. Those who do not get any allotment for the material their EMD has refunded by RSP.3% penalty n) CONDITIONS UNDER REFUND OF MONEY The EMD has to pay by the customer to take part in the auction. If the party fails to make payment in respect to the total amount of material. .  Better consumer satisfaction because all the activities done under one roof that is called ³Single Window System´. Since they can participate any where across India. but for those who got allotted of material but failed to make payment for them some penalties are there.  Through this online auction Rourkela Steel Plant getting good price for their secondary products and it helps to create a good and healthy competition.  This process is very useful as compared to order booking system.  Through this they are able to generate very high revenue. Another 7 days with .000 and the rest amount will be refunded to the vender after deduct the 5% penalty. then the party will be banned for a period of 3 months to take any part in the online auction plus from the financial aspects 5% will be charged on the total lot value subject to Rs 1. ADVANTAGES OF THIS SYSTEM  More customers are created through this online auction.

installment in multiples of RS 10.00 lakhs. single Installment.Rs 50000/. .for Group B Last date of submission of EMD is 23.co.000/.7 days from DSO.EXAMPLE OF AN ON-LINE AUCTI ON Synopsis of Catalogue:: FA Number FA Date Item Description Quantity & No.in For further details.00 lakh up to 10.metaljunction.00 lakhs.5 PM in all working days All customers may kindly furnish their TIN/SRIN no before making payment or lifting/dispatches for incorporation of TIN/SRIN in the VAT invoices so that they may avail input Tax credit wherever applicable Sale is governed by SAIL-FA-1.04.20 08 Spares from CD Y 13 L ots EMD Amount & Last 1.0 4.14 days Thereafter equal installments of 10 lakhs every 10 days 20 days fro m release orde r date late 1% per week or part there of Delivery Time Penalty for payment Penalty For Delay in Lifting Inspection Time Special remarks 1% per week or part there of 9AM .sailtenders.00 lakh.00 Lakhs For DSO values.00 lakhs: 1st installment 10. -more than Rs 10. -up to Rs1.com Visit us at www.Rs 5000/. -up to Rs 1.for Group A date of Submission 2. -up to Rs 10. For further details please log on to: www. please go through the terms & condition. of Lots FA /08-09/ 005 24.08 Security Deposit EMD will be retai ned as SD in case o f in stallm ent payment & will be adj usted in the last in stallment Payment in Installment(s) Payment Date/Schedule For DSO values.14 days from DSO -MORE THAN 10.00 lakhs.

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If secondary items are fails to make raise any demand then those material nare sale through open auction. . Price is fixed depending on the market demand and supply curve. The tender notice issued through leading newspapers. Price is fixed by a Price Fixation Committee. Those customers who bids in auction sale. RSP still follow the open sale auction in some cases.000 as security before 7 days of the auction sale. chambers of commerce etc.OPEN SALE PROCESS It refers to all the parties throughout the India. so that all the venders who are interested in auction can participate. they have to deposit Rs 50.

CHAPTER 5  QUESTIONARE  DATA ANALYSIS  INTERPETATION .

CHAPTER 6  FINDINGS  RECOMMENDATION .

E-auction is the most reliable selling method and majority of customers are happy with it. 5. 4. The other methods of selling adopted by RSP like tender. Most of the customers belong to the category of manufacturers i.e. 6. fixed price are same as the other steel plant and customers are satisfied with those selling methods. they are using secondary and by-products of RSP as a raw material. 7.SUMMARY OF FINDINGS 1. Most of the Customers responded that they find difficulties while dealing with RSP. Majority of customers prefer to purchase secondary and by-products from Rourkela steel Plant because of local market and quality but they find price is higher compared to the quality. Low price. Majority of the customers are satisfied with the quality of the secondary and by-products of RSP and that is a big advantage for RSP. 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. 3. 2. . Majority of customers responded that other steel plants are providing secondary and by-products at a lower rate.

Roadways are the most common mode of transportation used by customers because all belongs to local market. 13. 9. 12. Majority of the customers responded that they are happy with the order handling procedures of RSP. 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. Most of the customers are not happy with the volume limit that they receive from RSP. So. Majority of the customers responded that that they are satisfied with the overall experience while dealing with Rourkela Steel Plant.8. 11. 10. RSP has to increase the confidence of customers on them. . Some of the customers are using Railways for the transportation because by-products are mainly transported through railways. Most of the customers responded that they are satisfied with the information provided by RSP about the bids to be taken place but few customers are also not happy with the information provided by RSP.

RECOMMENDATION:  Some of the suggestions are given below:  The marketing strategy of RSP should be customer oriented.  RSP should develop its production units so that it will help to reduce productions of secondary products and produce more primary products .  Continuous efforts should be made to develop the marketing system and policies in order to satisfy the customers and maintaining their reliability.  RSP should develop its sales promotion strategy to attract more customers.  Proper measures should be taken to identify and avoid fake bidders in the process of Auction.  RSP should concentrate on minimization of the inventories and need proper planning and scheduling. So it has to be improved more.

CHAPTER 7  CONCLUSION  BIBLIOGRAPHY .

online auctioning. The various works are systematically executed and also documented by the marketing division. use of dealer channel and improving its effectiveness. Greater market orientation has percolated across the organization. lots of innovations of products have been made to occupy an important market share. bifurcation of sales and warehousing functions. New players have entered into the steel market. As a forward step. Many new technologies have been introduced like.CONCLUSION: RSP has taken lots of steps in marketing quality steel. . The marketing division of RSP is doing lot of credit worthy job in handling various customers oriented and market oriented problems. Each player would like to gain in terms of market share. They have acquired a lot of talents and those are able to deal with various customers diplomatically. through which it can market its products throughout the country through Internet marketing. RSP gives priorities to various customers problem. RSP¶S now emphasis is making oriented strategies. its pricing and distribution policy. The marketing set up itself has undergone change with re-organization along product lines.

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