BSRM

Industry Profile: The steel industry is an established and growing industry in Bangladesh,
Predominantly based in the port city of Chittagong, the industry has emerged as a major
contributor to the rational economy. According to the experts, Bangladesh is inspired by the
rapid expansion of the country's shipbuilding and real estate sector, as well as major
investment in various infrastructure projects across the country. Being a developing country,
Bangladesh is a verge of urbanization process which leads to more constructions, more
correction and more communication. So for the development of the country, it 's needed to
restructure the communication system, the housing and office - system and all that is to be
built. Without steel construction is impossible. That is why the demand of the steel is going
up and to meet the demand of a lot of steel mills are emerging. The process of urbanization
in this country started from the very British period. But from the year 1952 the steel
production took place firstly by the arrival of BSRM in Bangladesh.

Defining Marketing For The 21st Century

Intranet: An intranet is a local or restricted communication network, especially a private
network created using worldwide web software. It is designed to facilitate collaboration
where employees can create content, communicate, get stuff done and develop the company
culture.
Through the interview from the sales and marketing officer (Nayeem Hossain), we got to
know BSRM has a communication system within the company for the supply chain
management, payment, processing and all important works. It helps to increase their
employee engagement and steel productivity.
Core Competency: Core competency are special skills and responsibilities of the firm that
provides some competitive advantage in the market place. It helps in bridging the gap
between performance and opportunity. Thus helping a company in being a potential leader in
the industry .Steel is more or less similar everywhere but the brand image and its goodwill,
good ethics and commitment, persistent in quality, maintaining values, trustworthiness helps
to build a strong trust in customers. So, customers are willing to pay a premium price for the
steel. “We make premium, so we charge premium” is one of the mottos of BSRM. Their
source of competitive advantage, applications in a wide variety of market makes it difficult
for other substitute companies (such as KSRM, RSRM, AKSL) to imitate the steels of BSRM
completely. When a customer buys BSRM steels, it doesn‟t mean they are only buying the
product , they are also buying the brand image of the company . So, BSRM tries their hardest
to keep their brand image at its best.
Holistic Marketing: Holistic marketing is a business marketing philosophy which considers
business and all its parts as one single entity and gives a shared purpose to every activity and
person related to that business. A business is just like a human body, it has different parts, but
it‟s only able to functions properly when all those parts work together towards the same
objective. Holistic marketing concept enforces this interrelatedness and believes that a broad
and integrated perspective is essential to attain best results.
The process of holistic marketing takes into account the considerations of stakeholders,
customers, employees, suppliers and the community as a whole when creating and
implementing marketing strategies. Holistic marketing has gained in popularity due to the
high saturation rate and increased competition in the marketplace. Businesses realize they can
set themselves apart through a holistic marketing approach, all while creating a synergy
among organizational departments.

Relationship Marketing:

The objective of relationship marketing is to build strong, long-lasting relationships with

various stakeholders and other important parties connected to the business. Customers,
employees, financing entities, suppliers, vendors, regulatory agencies and competitive firms
are all necessary partners for BSRM to have and sustain, and each has a significant impact on
the success or failure of the company. BSRM aims to build a profitable long-lasting
relationship with their customer by providing exciting offers to their current customers and
build a high profit by capturing a larger share of the customer's expenditure.

Integrated Marketing:

Within the integrated marketing component of a holistic strategy, businesses work toward
making marketing decisions focused on creating value for stakeholders through a clear,
concise marketing message.
The product strategy and mix in BSRM Steel marketing strategy can be explained as follows:

BSRM Steel products mainly consist of products manufactured in Chittagong. All these
BSRM Steel products are a part of its marketing mix strategy.

BSRM Steel Products:

BSRM rolls and markets sectional steels such as angles, rods and ribbed wires which are
manufactured in different plants of the country. BSRM is country‟s first producer of 500 MPa
yield strength re-bar, branded and marketed as Xtreme 500W, proving BSRM‟s quest for
continuous innovation as nation building partner. Beside re-bar production, BSRM rolls and
markets sectional steels such as angles and channels and ribbed wire which
are manufactured in separate plants of BSRM. The bars, specially Xtreme 500 W and
sectional products ranging in various sizes conforming to ISO 6935-2:2015 and ISO 630-
3:2012(E) respectively which are the lawful standard of the country. Major products are:
 Xtreme
 Maxima
 Ultrima
 Xtrong
 Centura
Thus, all these show a diverse product range of BSRM Steel.

Price:
Their product prices-
 Xtreme – 48000 per ton.
 Maxima – 51800 per ton.
 Ultrima – 56000 per ton.
 Xtrong – 46000 per ton.
 Centura – 54400 per ton.
(These are the current market price. The information is collected from BSRM dealer Boalkali
branch.)

BSRM is a leading steel manufacturer in Bangladesh. In steel industries there are various
factors that affect the pricing of the products. Like other companies, the marketing mix
pricing strategy of BSRM is also dependent on various factors. Some of the major factors are
as follows:

1. Cost of production

2. Demand in the market

3. Government regulations

4. Competitions

BSRM is well known for keeping its production cost very high, that‟s why BSRM charges
are high price for its product. This gives BSRM a competitive advantage over others, they
provide premium products at higher prices for consumers who want safe steel products to be
used in building an infrastructure.

Place:

BSRM has its own distribution channel all over the country. Moreover, it is continuously
expanding its distribution network. It has around 449 authorized dealers to sell its products to
the end-users. Apart from this, they have own sales and customer service offices in 8 districts
including Dhaka, Comilla, Sylhet, Bogura, Khulna, Barishal, Rangpur and Rajshahi to ensure
prompt supply of its products to the customers along with dedicated & quality services. Since
it is spread out in so many areas, there are special geographical advantages. It can reach out
to potential customers all over the country, thus increasing chances of sales compared to its
competitors, who have not managed to reach out their services in the similar way.

Promotion:

BSRM has equal concentration on their promotional campaign as well. They ensure proper
communication by creating the market and their media of advertisement. The market is
created by:
Providing advertisement
Providing agent ship
Giving dealership
Through the wholesalers and retailers of the product media for advertisement:
Publication
 -Satellite channels
-Neon signboard
-Billboard
-Newspaper ads

Internal Marketing:

Internal marketing is aimed at catering to the specific needs of the business's own employees.
Internal marketing ensures that employees are satisfied with the work they perform each day
as well as the philosophy and direction of the organization as a whole. Greater satisfaction
among employees leads to increased customer satisfaction over time, making internal
marketing a key aspect of the holistic approach.

Their KEY MANAGEMENT:

Tapan Sengupta, Deputy Managing Director
Hasan Zafar Chowdhury, Chief Strategic Project Officer
Kazi Anwar Ahmed, General Manager Corporate Affairs & Dhaka Corporate Office
Shekhar Ranjan Kar FCA, General Manager Finance & Accounts and Company Secretary
Sunil Kumar Das, General Manager India Office
Md. Azizul Haque, General Manager Manufacturing
Jamil Ahmed, General Manager Human Resources
Mohinder Singh Hanspal, General Manager Rolling
Bharat Tank, General Manager Recycling & Melting
Bipin Sharma, General Manager QMCI & Risk Management
Mohammad Imtiaz Uddin Chowdhury, Deputy General Manager Sales & Marketing
Mohammad Monir Hossain, Assistant General Manager Corporate Strategy & Projects
Ruhi Murshid Ahmed, Assistant General Manager CSR
A. K. M. Saifuddin Khan, Assistant General Manager Administration
Md. Bazal Ahmed, Assistant General Manager Estates
Mohammed Tamim Wahid Al-Helal, Senior Manager Information Technology
Murtaza Zoher Bengali, Senior Manager Internal Audit
Sanjoy Kumar Ghosh, Senior Manager Supply Chain Management.

Hires:
BSRM hires through
Newspaper
Websites
Social Media.

Motivates:
BSRM provides many motivational activities such as:
Bonus
Transport facilities
Attractive environment

Societal Marketing:

The last component of holistic marketing is societal or socially responsible marketing. This
component extends a company's reach beyond the customers consuming its product or
service to society in general. Societal marketing is aimed at creating marketing initiatives that
are based on ethically sound business practices, such as environmentally friendly production
or meaningful interaction with the surrounding community. Marketing campaigns that are
intentionally socially responsible provide another method for businesses to build long-lasting,
beneficial stakeholder and partner relationships. Taking the ownership of corporate
responsibility is an ethical and moral decision that BSRM take seriously; a business impacts
lives – and through their CSR activities, they aim to support, care, and develop our society.
They commit resources, with the aim to create the maximum value, in a set of strategically
planned efforts that are consistent with BSRM's corporate strengths. Their motto is:

"We care.
We are committed.
And our CSR vision is to contribute to the development of our motherland."

Their areas of focus are education, environment protection, building self-reliant communities,
health, and women empowerment, to name a few, and their partners are some of the best
private and government organizations, as well as international and national NGOs and
foreign aid agencies.

BSRM believe that all of their departments should focus towards one single goal which is a
great customer experience .All of their services, processes, communications and other
business activities are directed towards that common goal. All of their activities are designed
and integrated in such a very so as to create a unified, consistent and seamless customers. It
helps them to attract new visitors to their company turning these leads to customers then
turning these customers into brand advocates. One month they try to focus on social media,
next month they focus on email marketing and the next month they focus on the next big
shiny object. So, it brings all of the company‟s efforts into one functional plan, helping the
company keep focus and more forward together. The marketing department aligns with goals
and resources available in the company which let them work more efficiently. It helps BSRM
to know their customers. Knowing the customer helps them to shape their holistic plan and
create the most efficient possible outcome because they know the customers they are creating
marketing for.
 Developing Marketing Strategies And Plans.

The Value Chain:

Primary Activities: Primary activities of BSRM are those activities, directly involved in the
conversion process of basic raw materials into final output/products including the receipt of
basic raw materials from suppliers and marketing of output/ products to customers. They are
grouped into two types of activities related to product and market. Product related activities
are the activities, performed by the organization to add value to the product and services
itself. Market related activities are the activities, performed by the organization to transfer the
finished product or services to the customers.
 Inbound Logistics: These include receiving the basic raw materials required for the steel
making process, stacking and reclaiming the materials, and distribution of materials to
various departments etc.
 Operations/Production Management: These include raw material handling and processing
(receiving and handling of major raw materials like coking coal, iron ore, fluxes, boiler coal
etc., crushing, lump ore crushing and screening), making of coke, sinter, lime and calcined
dolomite, pitch bonded magnesia bricks, production of iron, steel, wire rods, TMT bars,
rounds, squares, structural (angles, channels and beams), blooms, billets etc. and preparation
and repair of rolls.
 Outbound Logistics: These include planning and despatch, distribution management,
transportation, warehousing, and order fulfilment.
  Marketing and Sales: These include product management, price management, placement
(distribution) management, promotion management, domestic sales (project sales, actual user
sales, retail sales), export sales, sale of special steels, by products sales, planning and
despatch, pricing and policy, contracts, customer relations management etc.
 Service after Sales: These include commercial terms, quality aspects, delivery aspects,
pre/post sales contact, and complaint settlement procedure.
 Support Activities: Support activities are those activities, not directly involved in the
conversion process but support the primary activities in their functions. These activities are
classified as:

 Materials Management: It includes vendor development, purchase management, logistics

management and store management.
 Technology Development: These include quality assurance and technology development
(QA&TD), research and development (R&D), processes automation etc.
 Human Resource Management: These include corporate coordination (manpower planning,
recruitment, executive establishment, rules & policies, welfare, parliament cell), Human
resources - non works (human resource development, non works personnel, mines, industrial
relations, SC&ST cell, sports), Human resources - plant (plant personnel), Management
services (quality circles, suggestion schemes, awards, incentive schemes), Corporate social
responsibility, Medical, Town administration, Administration (general administration, law,
hospitality, RTI, Liaison Office, Agro Forestry), Human Resources Development (training,
management development, Hindi cell, HR information systems).
 Services Management: These include corporate offices (CMD and Directors‟ offices),
corporate strategic management, corporate communications, company affairs, information
technology (process control, materials management system, marketing system, payroll system
and financial accounting system).
 Finance Management: These include treasury management, budgeting, costing, corporate
accounts, raw material accounts, sales finance, operations & general accounts and works
accounts, central excise and insurance, pay sections (payments to present employees i.e.
employees on rolls and payments to retired and expired employees), stores accounts,
purchase bills (payments to indigenous and imported materials), project accounts, mines
accounts, internal audit and stock verification.
 Projects Management: These include the activities of Design & Engineering for the
existing plant and the activities of Design & Engineering, Project Contracts, Construction and
Project Monitoring for plant expansion.

The Value Delivery Approach

Value Delivery is the manner in which a company design their products in such a way that it
gives maximum value to the customers using it. The value delivered to customers can be in
the form of products, attributes, etc. Anything which creates value for customers should be
involved in our value delivery process.
The value delivery approach of BSRM is divided into three phases:

1. Choosing the value: The first phase for the BSRM before developing any steel product is
to follow the Segmentation, Target Marketing and Positioning (STP model). The
marketing staff at first segment the market based on demographic, geographic and
behaviourism. After segmenting the market and analysing the sales and Rate of Return,
BSRM decided to serve the business sector who are financially solvent. The company
starts targeting the corporate sector who are willing to pay huge prices for their goodwill
and positions itself as the supreme steel industry for customers for whom safety is the
main concern.

2. Providing Value: After the top management at BSRM sets a corporate strategic plan,
marketing department in BSRM decides about the specific features, setting prices and
distribution for steel.

3. Communicating the value: BSRM informs and promotes their steel to the mass audience
using sales force, advertising, print media, social media platforms, billboards, TVCs and
other communication tools .

Levels of a Marketing Plan:

A marketing plan generally begins with an executive summary, in which briefly states the
major points in the plan. The situation analysis describes the needs and happenings within
your business and with your customers to determine what should go into the high marketing
plan.

There are two levels of marketing plan-

1. Strategic: Strategic market planning is an ongoing process through which the company
creates marketing strategies and plans its implementation in the target market.

Currently BSRM holds 33% of total steel industry. Their objective is to maximize it up to
60% of steel industry. They want to strengthen their current relationship with the customers
so that they can understand their needs better and deliver the benefits.

2. Tactical Planning: Tactical marketing planning takes company's strategic plan and sets
forth specific short-term actions and plans, usually by company department or function.

The sales and marketing department is trying to increase their promotions in order to expand
their market share and they are also following different promotional strategies for those areas
where people have not adopted BSRM products. Such as roadshow, field activities etc. They
are introducing new features in steels such as steels for saline area, earthquake friendly Steel.

The Strategic Planning: In strategic planning there are three types of truth-
1. Intensive
2. Integrative
3. Diversification
Intensive: In intensive growth, there are four types of dimensions.

(A) Market Penetration: Market penetration refers to the successful selling of a product or
service in a specific market. It is measured by the amount of sales volume of an existing good
or service compared to the total target market for that product or service.

To enter untapped market, BSRM educate consumers from the root level through workshop,
field activities and training programs for successful selling of the product in the specific
market.

(B) Market Development: Market development is a growth strategy that identifies and
develops new market segments for current products. A market development strategy targets
non-buying customers in currently targeted segments.

BSRM is trying to identify new demo-graphical and geographical markets with their current
product. They export their steels to India to expand their market share.

(C) Product Development: Product development may involve modification of an existing

product or its presentation, or formulation of an entirely new product that satisfies a newly
defined customer want or market niche.

BSRM is trying to add new features to their steel. They have a plan to to introduce

1. Steel Fencing Wire

2. Welding Electrode
3. Different Purpose Wire
4. New Graded Steel

(D) Diversification: Diversification is a corporate strategy to enter into a new market or

industry in which the business doesn't currently operate, while also creating a new product for
that new market.

Through the primary data (from the interview) we got to know that currently BSRM isn't
interested in expanding a new business apart from steel.

Integrative Growth: In integrative growth BSRM follows forward integration.

To strengthen the competitive advantage of the company and to minimize the dependency on
distributors BSRM follows forward integration and provide steel to customers directly, thus
BSRM is continuously expanding the capacity to maintain its strategy that involves a form of
vertical integration whereby business activities in BSRM are expanded to include control of
the direct distribution or supply of a company's products. BSRM implements forward
integration strategies to realize economies of scale.
SWOT Analysis.

Strength:

Market Leader of a Monopolistic Industry: BSRM is the number one steel brand in
Bangladesh.

They hold 33% of market share of the total steel market in Bangladesh. Among over 400
active firms in the industry, 5 companies own more than fifty percent market share. BSRM
owns highest market share among those 5 companies.

Highly Skilled Employees: The employees and labours of BSRM are highly skilled

Widespread Distribution Network: Distribution of BSRM is very strong. They have 600
dealers and 11 offices all over Bangladesh

Successful Implementation of Government Project: Successfully implementing

government projects boosts BSRM‟s credibility and image

Weakness:

High Price: Price asked by BSRM for its products are higher than that of other steel
companies of Bangladesh

Dependency on Supplier: Though BSRM has own sources of materials, BSRM is still
dependent on suppliers for some raw materials.
 Strict Working Condition of Ship Breaking Yards: Scrap, which is a raw material of
steel, is collected through the process of ship breaking. Workers employed by BSRM for ship
breaking are not happy with the salary, toxic working environment and working hours. This
issue has built negative perception for the brand

Opportunity:

Huge Scope to Increase Market Share through Acquisition: BSRM can acquire struggling
small manufacturers to serve the growing demand.

New Types of Steel Products: Due to its overall capability, BSRM has great potential to
introduce new steel products.

International Scope: As BSRM is internationally renowned company. So it has a strong

possibility to export steel products in India, Nepal, Myanmar, South Korea, Vietnam, japan
etc.

Booming Bangladeshi Economy: Booming economy of Bangladesh is an opportunity for

BSRM as it is increasing the number of construction projects.

Threat:

New competitors: In recent days there are some new companies have started their steel
production, and they are becoming stronger. For example: AKS steels, KSRM etc. are doing
well in steel industry and planning to expand capacity

Probability to Lose Skilled Employees: The competitors are trying to take away all the
skilled employees from BSRM

High Commissions Given by Competitors: The competitors are giving more commissions
to the dealers and suppliers

Power Crisis: Electricity and gas are significant inputs and considered as lifeline for the steel
industry. But currently Bangladesh is facing severe power crisis

Creating Long term Loyalty Relationships

LOYALTY

Customer satisfaction refers to the degree to which customers are happy with products and
services provided by a business. For a business like BSRM gaining a very high levels of
customer satisfaction is very important for them because satisfied customers are most likely
to be loyal and make repeated purchase. BSRM‟s vision is to maintain leadership position
by producing the best quality steel products. They focus on delighting external and internal
customers at every stage of interaction with them by understanding their needs and offering
them with most excellent products & services. BSRM creates products and services valued
by customers by investing in technology & developing and nurturing highly capable
workforce. They have set a benchmark through their products, processes and people by
ensuring steady improvement and increasing their efficiency.

Crafting Brand Equity

Building customer- based brand equity

A brand is a product, service or concept that is publicly distinguished from others products,
so that it can be easily communicated and usually marketed. In a brand there are a lot of
elements such as names logos symbols etc. each of the elements play very important role to
make popular and differentiate the brand from other company.
If anyone asks from an individual about BSRM and about their products, there is a high
chance they‟ll get a positive reply. As BSRM is renowned because of their best brand in steel.
Every consumers first preference is BSRM in steel world And every consumer recommends
each other to purchase BSRM in the case of purchasing steel. BSRM steel means people
believe that it is premium quality product. In a nutshell people believe it is best. Thus BSRM
gains success from choosing proper brand elements.
(Interview from BSRM Dealer Boalkhali branch and also interview from other Dealer who
sell every companies steel, both interview are similar.)
There are 6 things a company have to follow to establish a brand .
1. Memorability
2. Meaningfulness.
3. Likability.
These three things are under marketer‟s offensive strategy and build brand equity.
4. Transferability.
5. Adaptability.
6. Protectability.
These three things are under defensive role for leveraging and maintaining brand equity.
Memorability
A brand name should be memorable so that every segment of people can easily memorise it.
Here BSRM is memorable name and its meaning (Bangladesh still re-rolling mills). and
People are very familiar with this name from past.
Meaningfulness
A brand name has to be meaningful. So that a brand name mean any good things or indicate
any awareness. Here BSRM (Bangladesh still re-rolling mills) has a good meaningfulness
brand name.
Likability
It means ability to convince the customer by using brand elements. Here the logo of BSRM
help the company to convince the consumer .
Transferability
It means the pros of brand elements which help the company to extend the product line or
introduce new product to market.
Here BSRM pros in case of extending product line such as steel related things. On the other
hand it has cons in case of introducing new product. And the marketing officer of BSRM
interviewed that they have no plan to introduce new product which is not related with steel.
But in future they will introduce many steel related products.

Adaptability
it Means adaptable and flexible brand elements which is easier to update and helpful to
changes customer values and opinions. Here BSRM has advantage to using their flexible
brand elements.

Protectability
Here BSRM trademarked their brand name and elements. So that no one can use their brand
or brand elements. And if anyone will try to using their brand and brand elements BSRM can
take a legal action against them.

Crafting The Brand Positioning

Segmentation:
Market segmentation is the process of dividing a market of potential customers into groups,
or segments, based on different characteristics. The segments created are composed of
consumers who will respond similarly to marketing strategies and who share traits such as
similar interests, needs, or locations. Market segmentation makes it easier for marketers to
personalize their marketing campaigns.

By arranging BSRM's target market into segmented groups, rather than targeting each
potential customer individually, marketers can be more efficient with their time, money, and
other resources than if they were targeting consumers on an individual level. Grouping
similar consumers together allows marketers to target specific audiences in a cost effective
manner.
Market segmentation also reduces the risk of an unsuccessful or ineffective marketing
campaign. The market for BSRM is segmented based on: demographic, geographic and
behaviouristic variables.

Bases of segmentation:-

(1) Demographic Segmentation:- BSRM uses this segmentation to get the right
population to start using their products. It depends on many variables such as Age,
Gender, Family size , Income and occupation.

The market researches segmented the market among three variations: -

(A)Age

Criterion Age

Youth Younger than 18

Getting started 18-35
Builders 35-50
Accumulators 50-60
Preserve Over 60

(B) Income (BDT)

Criterion

Below 25,000
25,000-40,000
40,000-60,000
60,000-80,000
Above 10,000

(C)Occupation)
Criterion
 Students
Service Holders
Housewives
Engineers
Developers
Architects
Retired Professionals

(2)Geographic Segmentation:- This type of market segmentation divides people on the

basis of geography. The potential customers will have different needs based on the
location.
Therefore BSRM segmented their markets across different region in Bangladesh :-
Criterion

Dhaka
Khulna
Chittagong
Sylhet
Barisal
Rajshahi
Rangpur

Target Market:
Target market is a group of consumers or organizations most likely to buy a company‟s
products or services. Because those buyers are likely to want or need a company‟s offerings,
it makes the most sense for the company to focus its marketing efforts on reaching them.
Marketing to these buyers is the most effective and efficient approach. After studying the
sales and profits, BSRM decided to target the following segment:

(A) Demographics:-
1)Age

Criterion Age
 Builders 35-50
Accumulators 50-60

2)Income(BDT)

Criterion

80,000-100,000
Above 1,00,000

3)Occupation Criterion

Service Holders
Engineers
Developers
Architecture
Retired Professionals

B)Geographic Segmentation

Criterion

Dhaka
Khulna
Chittagong
Sylhet

Mostly the company is aimed at satisfying and targeting people who have sufficient funds
to procure steel from BSRM and are located in areas where they can be served after studying
the current customer base, checked its competitors and thus have decided to target specific
demographics and geographic segments
Positioning:
BSRM positions itself as the best steel a consumer can ever get for construction. They
maintain their leadership position in the steel industry, by continuously innovating and
producing best steel for customers.

When it comes to BSRM, customers think of the effect of steel, they think of the pillars of
strength, the roof over our heads and the metal that binds together the progress of humanity
and its dreams. BSRM has positioned itself in the consumer's mind as the ultimate symbol of
strength, endurance and of safety.

Perceptual map:
A perceptual map is a visual representation of the perceptions of customers or potential
customers about specific attributes of an organization, brand, product, service, or idea. This
diagrammatic technique (perceptual mapping) asks participants to place products relative to
one another along 2 or more axis.

For BSRM we are using two determinant attributes:

1. High Quality - Low quality
2. High Price - Low Price
 Addressing Competition And Driving Growth
ADDRESSING COMPETETION AND GROWTH

Growth strategy
Growth strategies of a firm to building market share ,developing committed customer and
stakeholder , building a powerful brand , innovating new products , service and experiences ,
international, expansion, acquisitions, merges and alliances , building and outstanding
reputation for social responsibility and partnering with government and NGOs .
Here, BSRM is increasing their market share through ensuring best quality of the product
with different features and they customized the product according to requirement of the
customers. They are also trying to innovate new products. Thus building a committed
relationship with customers and stakeholders. Because of their premium quality of products
their brand becomes a powerful brand . They are trying to extend their market share in India.
It‟s ensuring the international expansion . On the other hand BSRM also perform social
responsibility . They perform for women empowerment , free education for underprivileged
children, helps victims who were abused or human trafficking to other places. For
environment they planted a lot of trees every year and they also perform for reducing traffic
jam. Most of the social activities they perform with help of NGO. They have no partnership
with government.
Growing the core
Make the core of brand as distinctive as possible. BSRM uses different features and raising
quality which make their core product different from other competitors.
They use their own channels it means they directly supply the consumers and directly take
the order and they also sell their product by the help of dealer by which BSRM ensuring drive
distribution though both existing and new channels .
BSRM‟s core product is steel and they don‟t have this core product steel in new format but in
future they will introduce the steel doors, steel windows and other steel related products
which will may ensure the core product in new formats or versions.
Protecting Market Share
Protecting market share is an element of competitive strategies for market leaders. Protecting
market share is very important task for a firm. Firm has to be flexible in this types of case. If
the firm move any mistake the firm has to suffer a lot in future. It may be the reasons for
firms shut down. There are 2 dimension of protecting market share
1) Defensive Marketing
2) Attack Strategy
Defensive Marketing: Defensive marketing means the type of defence which a firm can use
to protect the firm from the attack of competitors .
There are 6 types of defensive marketing:-
1) Position defence
2) Flank defence
3) Pre-emptive defence
4) Counter offensive defence
5) Mobile defence
6) Contraction defence
From this defence strategy BSRM has position defence. Because of their good quality and
features directly helps to achieve their position and their social activity is also indirectly helps
the company to gain this position
Attack Strategy: It means types of possible attack strategy which will may adapted by the
competitors the market challenges adopted attack strategy .
These are 5 types of attack strategy :
1) Frontal Attack
2) Flank Attack
3) Encirclement Attack
4) Bypass Attack
5) Gorilla Attack
Most of the time BSRM face Frontal attack. this Frontal Attack may create problem for the
company for a short term .When the company face Frontal Attack after they again use Frontal
Attack to competitor .
1.5 years ago when BSRM faced Flank Attack by the KSRM when KSRM introduced Saline
friendly steel. The Saline friendly steel first introduce by KSRM in Bangladesh that time
price of this product was 56000 per ton . Then when BSRM introduce their Saline friendly
steel they change 52000 per ton. Which has created a financial problem for BSRM and the
selling of product was reduced by price skimming of BSRM.
Setting Product Strategy
A product is any good, service, or idea that can be offered to a market to satisfy want or need
of market. According to customer value hierarchy a product has five levels. They are core
benefit, basic product, expected product, augmented product, potential product. From these
five hierarchy BSRM Products belongs to augmented product.
An augmented product has been enhanced by its seller with added features and service in
order to distinguished it from the same product offered by competitors. The additions do not
change the actual products but they add value to the purchase. An augmented product may
have a perceived value that gives the customer a reason to buy it and may give seller an
opportunity to command a premium price.

BSRM added new features to differentiate their core product (steel) its. Such as earth quick
friendly steel and will be bringing new products such as Steel Fencing Wire, Welding
Electrode, Different Purpose Wire and New Graded Steel.
When consumers observe these features with their core products, they expect that this new
products has the ability to meet their needs and demands and as a result the consumers
automatically convince to inker premium price.

Strategy Formulation (Porter’s Generic):

Differentiation
In the process of business development differentiations of products and service its really
important. It allows to stand out in a market, differentiating the company from its
competitors. The differentiations of a product or service is particularly important nowadays,
since the marketers extremely is in a competitive due to the limited number of customer to
offer more increasingly is important. A company that wants to stay long in its market and a
dominant position must approach to develop new products. And move forward in order to
maintain its position in its market and maintain a lead on its competitors over a long period.
Basically a product can be differentiate in 10 ways. They are form, features, customization,
mass customization, performance, quality, conformance, quality, durability, reliability,
reparability, and style.
BSRM differentiate their product by introducing new form of product such as BSRM has
from 8mm steel bar to 50mm still bar. If we have a look to other competitors they have max -
35-40mm steel bar. BSRM also added new features with products which have different
capabilities. For example BSRM Xtrong which is an angle steel brand, BSRM Ultra which is
used for heavy construction, BSRM Xtreme which is light construction steel, and BSRM
Maxima it is saline water friendly and BSRM Centura it is most unique steel bar of BSRM it
is earth quick free steel and very flexible in nature. On the other hand BSRM also provide
customized steel according to customers‟ requirements. BSRM also focus on field
performance of their products which ensure the best performance of product. Because of their
heavy research and development their product achieve durability and reliability.
Now in the market there are two deigns of BSRM steel available. One is steel angle and
others are steel bar. The BSRM Ultima, BSRM Centura, BSRM Xtreme, BSRM Maxima are
the steel bar and BSRM Xtrong is one of the steel angle.
Product system and Mixes
Product system means a group of diverse but related items that function in a compatible
manner product and mixes.
Product mix also known as product assortment is the total number of product lines that a
company offers to its customers. The product lines may range from one to many and the
company may have many products under the same product line as well. As of these product
lines when group together from the product mix of the company. The product mix is a subset
of the marketing mix and is an Important Part of the business model of a company. In a
product mix there are 4 dimensions
A)Width B)Length C)Depth D)Consistency

Width: width represents how many types of product a company have. From this concept
BSRM has 2 types of product.
 1) BSRM steel bar
2) BSRM Steel angle
Length: Length represents that total number of item in the mix . Currently BSRM steel angle
has 1 type of length- BSRM Xstrong, but BSRM steel bar has 4 type of length-
1) BSRM Maxima
2) BSRM Ultima
3) BSRM Centura
4) BSRM Xtreme
ALL these products are steel but they are different in additional matters which is used to
transform the raw materials in final goods and the features of all products are different.
Depth: Depth represents that number of varieties offered of each product in the line. Here
BSRM does not have product depth.
Consistency: BSRM has no consistency. Consistency refers to how closely related the
various product lines are in end use production requirement distribution channels or some
other way.
Product Line Length: A product line is a group of interrelated products fulfilling the
identical needs and wants of the customers under a single brand sold by the same company .
Company often expand their offerings by adding to existing product line, because consumers
are more likely to purchase product from brands with which they are already familiar. A
product line is composed of related products of various size, types, colour, qualities or prices.
Here BSRM compose their product line by producing various size steel with different
features which are almost different from each other and here the prices and qualities are also
different.
Basically there are three objective for product line strategy.
1)To introduce upselling: BSRM products strategy is similar with this strategy because it
always introduce new premium qualities products which is more expensive from the past one
. They delivered premium qualities and earn the premium price.
2)To facilitate cross selling: BSRM doesn‟t follow cross selling strategy. All of their steels
have premium features so they charge a high price.
3)To protect against economic ups and downs: Through the interview from BSRM
Marketing Department we came to know that, within few years they will cover this objective.
Because within few years they will introduce Steel Fencing Wire, Different Purpose Wire,
New Graded Steel, Welding Electrode which will may help BSRM to fulfil this objective.
Line Strategy: Line strategy occurs when a company lengthens its product line beyond its
current range .
There are three types of line strategy :
1) Up market stretch
 2) Down market stretch
3) Two way stretch
BSRM follow up market stretch . Up market stretch means stretching the market for higher
margins or more growth .The new premium features products and policy indicates that
BSRM following up market stretch strategy.
Line Filling: Adding more items within the present range for incremental profits to utilize
excess capacity to own a full line. 13 months ago, BSRM took initiative for line filling . They
will introduce more steel related new products. Such as Steel Fencing Wire, Different
Purpose Wire, New Graded Steel, Welding Electrode which may fill this product line within
5-7 years .
Product mix pricing
Pricing for a product line involves various demands and cost inter-relationship. Objective
remains to maximize profits on the total market mix. Pricing is an important part of a
company‟s marketing mix strategies. Pricing strategy helps to increase a company‟s product
or service sales in selected market. It also has direct impact on growing company‟s market
share. So we can say that pricing is one of the most important factors of a company‟s
marketing mix strategy.
There are 6 types of product mix pricing. They are product line pricing, optional-feature
pricing, captive-product pricing, two part pricing, by-product pricing, product bundling
pricing.
From this various types of product mix pricing. BSRM follows optional feature pricing.
Optional feature pricing means pricing steps based on optional products, features and services
offered along with the main product. BSRM‟s core product is steel and they add different
features in the steel and offer it to market. Here because of different or extra features they
charge extra price which indicates to BSRM‟s optional feature pricing.
Labelling: Labelling is the identity of a product. Without labelling a consumer could not
recognize from which company the product belong. BSRM use their logo and brand names in
the body of steel and by labelling the size of steel in the body of steel.

Developing Pricing Strategies & Programs

Price Skimming

Price skimming strategy is adopted by BSRM , in which the marketing staff in BSRM sets a
relatively high initial price on steel for the construction industry, which has important product
liability implications. BSRM‟s steel products are inside buildings, bridges all of which are
intentionally accepted. The material follows legal standards which are enforced by a
government authority in all countries. For making premium high-end products BSRM
charges high prices when new steel products are introduced. The objective of price skimming
is to capture the consumer surplus early in the product life style and to attract those customers
who are willing to pay high prices. As the demand of the customers is satisfied, the firm
lower the price to attract another more price-sensitive segment.
Reasons for Price Skimming:-
1) Price skimming is used when BSRM introduces new product in the market. The
business is able to charge high prices as some customers would want to be first to buy
the product.
2) The top segment of the market which are willing to pay the highest price are skimmed
off first, later when the product steel enters the maturity stage, the price is then
gradually lowered.

Designing and Managing Integrated Marketing Communications

The role of Marketing communication :- Marketing communication means by which a firms

attempt to inform, persuade, and remind customers directly or indirectly about the products
and brands that they sell. Marketing communication helps to move products, services and
ideas from manufacturers to end users or builds and maintains relationships with customer ,
prospects and other important stakeholders in the company.
By the way Marketing communication represents the voice of the brand by which firm
established a dialogue that “The Ultimate Steel”. Which helps the BSRM to communicate
with the customer that BSRM is the ever best steel company in Bangladesh and it also helps
the company to build the a strong relationship with the consumers who look for a standard
quality steel.
Marketing communications performs many functions for consumers ,such as : telling the
customers how and why a product is used .Here BSRM told their customer about the use of
product ,such as BSRM Maxima , here they position that “Innovating safety”, which indicates
that Maxima is safe for heavy construction . On the other hand marketing communication
performs the function „‟by the kind of person‟‟. But the BSRM have not yet adapted other
functions which is “ where and when “. It means they advertise their product with biggest
project , where their product is used ,such as BSRM steel is used in Karnaphuli Bridge .This
types of advertising helps facing the consumers that BSRM is the best.
Sometime BSRM arranges roadshow by which they communicate the market about their
company why it stands for or about their production activities and most of the time they
communicate with consumers directly to know about the feelings of consumers or in
construction season(January to April) .They give discount in their product which also creates
a positive or strong relationship with consumers . BSRM marketing department
communicates to contribute to brand equity by establishing the brand in memory and crafting
a brand image.
Marketing Communications ,Brand Equity and Sales.
Brand equity and sales are the most important elements in a company in which a company is
able to ensure strong brand equity . They will get a long term benefit from it and their sells
are automatically increases because of brand equity.
There are a lots of strategies to build brand equity . Advertising is the most popular strategy
,because now a days people passes most of their free time by watching tv or you tube videos
,that is why BSRM do not miss their chance.
They have advertisement in tv and online which helps the company to extend brand equity
and driving sales .
But without advertising there 7 types of marketing communications mix ,such as:-
1)Sales promotion 2)Events and experiences 3) Public relation and publicity 4) Direct
marketing 5)Interactive marketing 6)Word of mouth marketing 7)Personal selling
Here BSRM use sales promotions in construction season .They gives discount every year
from January to April . BSRM most of the time use direct marketing in North Bengal where
people are aware too much about BSRM. On the other hand they use Interactive marketing or
word of mouth marketing which keeps high contribution in communication mix .Most of the
people naturally believes on others word . If anyone shares that he got benefitted from this
product then others also set their mind to adopt that product . That is why word of mouth
marketing is the best and BSRM word of mouth is positive that‟s why it is a big asset for the
company
Elements in the communication process:

 Here BSRM is the sender .They communicate to make that they have premium
standard product in the market . They are transforming their message into a
advertisement which is known as encoding. They pass their message through
television or billboard which is known as media. Then after watching their
advertisement , what the consumers recognize, are the consumer understand what
the company wants to understand .Here the consumers are the receivers . If the
consumer understand that what they want to understood and react positively and
consumer purchase their product that known as RESPONSE and if the seller
increase and company gain profit that is known as Feedback .

The Communication Process Model

Learn-Feel-Do it means that after learning about the product or after collecting and analysing
the information of the product if any consumer comes to purchase the product. BSRM has
most of the consumers belong from this segment. This information we got from the dealer of
the BSRM , Boalkhali Branch .He tells us that most of the consumer without any argument
,they are asking for BSRM products and most of the time when the dealer review the BSRM
the consumers automatically purchase the product which indicated the learn-feel-do .
Do-Feel-Learn means after purchasing the product the consumer learn about the product.
Have less number of customers belong from this dimensions. This types of consumers keep
tendency to purchase higher range of product .They do it because of social attitude .BSRM
has lower number of customer from this type.
Learn-Do-Feel means here the consumers at first learn about the product then they adapted it
.After adapted the product the consumer feel the benefit and loss of the product.

Conclusion:- At present in our country the level of construction is increasing rapidly . To

ensure the safety of the nation those steel industries need to continuously improve their
manufacturing process and should have to improve their product quality so that the Safety
can be ensured . On the other hand the soil of our country is not same in different places. For
different locations it needs different category of steel . As our country is in a developing
process, financial ability is not same for all. So the industry should produce according to the
different financial levels. So BSRM is working from very earlier for all these steps.

References:

1. Information collected through primary data source ( Nayeem Hossan- Sales and Marketing
officer of BSRM)

2. Annual report of BSRM for the year 2017-2018

3. Information collected through secondly dara source-

a. https://bsrm.com/corporate-social-responsibility/
b. https://bsrm.com
c. https://bsrm.com/about-us/management-team/
d. https://bsrm.com/products/