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Synopsis on

“PROCESS OF MARKETING AND CUSTOMER


SATISFACTION AT SAIL, BSP”

Submitted to:

Rashtrasant Tukdoji Maharaj, Nagpur University

Partial fulfillment of
Degree of Master of Business Administration
For the academic year
2008-2010

Submitted by

SANDEEP MOHAN BADOLE

Under the supervision of

PROF. K. S. MUKHERJEE

Department of management studies


G.H Raisoni College of Engineering, Nagpur.
Synopsis on
“PROCESS OF MARKETING AND CUSTOMER
SATISFACTION AT SAIL, BSP”
Submitted to:

Rashtrasant Tukdoji Maharaj, Nagpur University


On dated 15th September 2009
Partial fulfillment of
Degree of Master of Business Administration
For the academic year
2008-2010
Time frame
July 2009-August 2009

Submitted by
SANDEEP MOHAN BADOLE
Under the supervision of

PROF. K. S. MUKHERJEE

Department of management studies


G.H Raisoni College of Engineering, Nagpur.
A SYNOPSIS ON

“PROCESS FOR MARKETING AND


CUSTOMER SATIFACTION”
“A customer is the most important visitor on our premises.
He is not dependent on us. We are dependent on him. He is
not an interruption on our work. He is the purpose of it. He
is not an outsider on our business. He is a part of it. We are
not doing him a favour by serving him. He is doing us a
favour by giving us an opportunity to do so. “

- Mahatma Gandhi
OVERVIEW OF THE PROJECT

Marketing Department of Bhilai Steel Plant is known as marketing and


strategic planning department. It deals with the activities of marketing of
prime products and secondary products etc.

The marketing is done in two ways.

1. Marketing of prime product where activities are co-coordinated by


central marketing organization.

2. Marketing of secondary product and coal chemicals are done


directly by sale of product by SAIL (BSP) marketing of these
products are conducted by various sections by marketing
department of Bhilai Steel Plant through e-Auction process.

Marketing Department of SAIL (BSP) is being divided


under various sections as:-

• Market Development and strategic planning


• Secondary product
• Coal chemicals
• Merchant mill
• Wire rod mill
• Rail and structural mill
• Billet and bloom mill
• Plate mill
• Export.

Functions of Marketing Department

• To monitor the orders issued by CMO so that these orders fulfilled in


time.

• Coordinate with CMO to get orders for an underutilized mill.

• To sell the entire secondary product directly i.e. directly by SAIL (BSP).
Steps in the Marketing Strategy

Defining the marketing


objectives

Selecting the target market

Generating alternative
marketing mix
option

Selecting best marketing mix


option

Creating condition for


implementation f this mix

Functioning of Marketing & Strategic Planning


Department Of Bhilai Steel Plant
Marketing & Strategic planning department of BSP acts as an interface
between Plant & CMO for Co-coordinating marketing activities with CMO for
sale of prime products. Apart from this, it also carries out direct sale of
secondary products and by-products generated in plant. The activity frame
work is given below in Fig-1

Key Activities of
M & SP deptt.

Co-ordination Direct Sale of


with CMO/ITD Secondary/by
for sale of Prime products
Products

Sales Order Key A/c


Planning Mgmt Mgmt

Compl- Secondary Coal Granu.slag,


aint I & S items Chemical, Misc items
Handling Fertilisers

M & SP department facilitates in effective implementation of various


strategies adopted by BSP in enhancing customer satisfaction that are
enlisted below.
 Market segmentation  Internal customer
satisfaction
 New product development  Quality Improvement
 Customization.  Customer service through

IT
 Maximizing Value added products.  Partnership with
customers
 Key Account Management

MARKETING AND STRATEGIC


PLANNING

1. Handling of customer complaints: In case of any complaint by the


customer the complaint is sent to the GM quality and the particular
mill. The CMO has an application engineer group for commercial
settlement which inspect the material and if found defective, the
adjustment are made in the payment or the material is taken back.

2. Customer Feedback: Customer feedback is taken by this section on a


periodic basis in the form of customer satisfaction feedback reports. A
four point feedback is taken for increasing market share and for
customer retention. The basis pointer of the report is past
performance, sector growth, financial performance and purchases from
other supplier of steel. For major customer there is key “Account
Manager” who handles them. This is done to provide a single window
service to these customers.

3. ISO Activities: The various documents pertaining to ISO activities are


handled and managed here.

4. Training: This section overviews the training of new recruits, summer


trainees in the marketing department.

5. Product Development: The management research group at CMO


Kolkata studies the market demand and supplies feasibility which is
checked at the plant and further for the approval.

6. Strategic Planning: This section ascertains the product mix, quantum


exports, monthly tonnage and other parameters for plant according to
the demand.
7. Audit Applies: This division also coordinates the various audits that are
undertaken.

MARKETING SCENARIO

Without a perfect market goods can neither be purchased nor be sold.


Marketing is one of the major and crucial department pillars of every
organization and it is the case with SAIL. “CUSTOMER SATISFACTION AND
QUALITY ASSURANCE”, these are the two motives of SAIL for achieving their
goals and establishing their marketing division. It savings it’s CMO for its
marketing division. Its headquarters is situated in Kolkata. BSP is one of the
most important integrated steel plants of SAIL, which is earning profits for
last 45 years. It has established its position through a better service. BSP has
several departments among which marketing division plays a key role. Every
department has its own Branch Sale Office (BSO) who looks upon the order
of CMO. These orders are then sent to the plant for checking the availability
and production for dispatch. All departments are linked through MIS from
CMO to each and every division of plant.
The whole procedure of BSP for marketing is: customer sends their enquiries
including their requirement to CMO who looks at the order by the order
management system, which further sends these requirements to the
regional office. Regional office sends the order according to the different to
the BSP of each region. After checking the material against TDC booklets by
the BSO and marketing division of plant, it is send to the customer according
to the quantity demanded, with the same channel through wagons and
trucks as the case may be. The copies of invoice are sent to the customer
and regional office concerned which is ultimately deposited in the bank to
get in case of credit sale.

FOR MARKETING OF DIFFERENT ITEMS THE THREE


TYPE OF POLICY ADOPTED BY THE BSP ARE
 MEMORANDUM OF UNDERSTANDING: It is an agreement signed
between the plant, the customer for assured quality and quantity.

 ANNUAL BOOKING SELLING: It is an informal agreement where


customers assure the plant for purchase of certain amount throughout
the year.

 SPOT SELLING: In this case BSP releases the tender and asks for
quotation from different customers.

MARKETING STRATEGIES

Any organization before setting up the marketing strategies must be clear


with some of the main points such as, business, mission, external
environment analysis, internal environment analysis, program formation,
goal formulation implementation and feedback.
The marketing strategy for an industrial product is quite different from that
of a consumer product. Therefore, marketing strategy of BSP product is very
different. Certain strategies like advertising door-door survey a product
demonstration not viable. The main aim is to maximize the recovery of
realization. More consideration is given to:-
 Potential customer

 Feasible price

 Production goods survey

Thus marketing is used to accomplish the goals of the organization. The


various marketing strategies used by the BSP are as follows:

Shifting focus from Tonnage to Profit: BSP is now laying emphasis on


profits rather than on mass production. It has taken to production of
product/ goods according to the customer needs and demand.

Cost control and cost reduction: An intensive cost reduction drive


yielded a saving of Rs 900 cr. in fiscal 1998-99 over and above the Rs 732
cr. Achieved in the previous year. This was primarily due to improvement
in operational year. This was primarily due to improvement in operational
efficiencies increase in productivity at all SAIL. Plans and better purchase
management of critical inputs.

Production according to market needs.

Improvement in techno economics better product mix, yield and


quality: BSP has brought about improvement in techno economics leading
to better product mix yield and quality.

Production of High value products: Goods of high value are produced


in BSP which are in great demand by the market.

Better sales realization: Goods produced are to be immediately sold for


the smooth function of the organization. The marketing department tries
to sell most of the goods produced in the stipulated time; the quality and
price of the products are good therefore there is better sales realization.

Just In Time delivery: BSP is able to make delivery just in time because
it takes orders after consulting the production department so that they can
be delivered in the right time.

Better Project Management: Modernization at BSP has been integrated


with the business strategy of the composed five projects at cost of approx.
153.5 cr. was completed during the last year.

Waste management, diversification, Joint ventures etc: besides the


introduction of environmental friendly technologies like coal dust system in
blast furnace commissioning of centralized dusting system etc. for waste
management has been carried out by BSP. BSP is also diversifying in the
areas like cement and power. It has also launched successfully joint
venture in e-technology with the USA.

Negotiated Pricing: BSP has started this strategy of fixing the price by
negotiation with the customers thus giving them a voice in the process.

Direct Dispatch: Direct dispatches from the plant constituted 50% of


total sales with over 3.6 million tons door to door delivery to customer.

Appointment of Authorized dealers: Appointment of authorized


dealers to service the small, far flung and rural demands helped in
enlarging the steel marketing and distribution network.

Marketing of new product: Taking advantage of the modern facilities


installed at its plant BSP marketed new product during the year like
thinner, gauge, Hr coils, and TUV certified plants, rails with less than 3
ppm hydrogen.

Multiple production Units: As SAIL has no. of units/steel industries,


customers can be assured about the delivery. Even if BSP fails to produce
what is has promised to the customer, it can get it from its sister concern
and deliver it to the customer.

Competitive Price: BSP prices are very competitive. It produces quality


products and they are priced accordingly.

Product Development: BSP brings about continuous development in its


product to suit the needs and demands of customer like change in
chemistry, specification, composition etc.. It also makes use of new
technology for production.

International Standards: BSP follows the standard set up by


international standardization organization like ISO: 9000 quality
management.

Customer product mix: BSP has a better product mix, which is also
customized.

Export as a strategy: The Company has taken to exporting some of its


products to create new market and demand for itself. Total export
shipments by the SAIL in the year 1998-99 crossed 4.9 lakh tons of iron
and steel yielding foreign exchange earnings of Rs 585 Crores

Sales Promotion: The Company offer rebate to its regular customers and
the customer with whom it has an MOU. But this is not the case always.

Market Research: BSP has its own research laboratory. It is modest but
well equipped research and control laboratory development many new
products every year.

Other Measurement: Other measures include complete package offering


to project authorities and increasing presence in the cold rolling segment,
large dia-pipes segment etc.

CONCLUSION
We will conclude with the SWOT analysis. In my view the best
conclusions can be made by writing a SWOT analysis:

SWOT ANALYSIS OF BSP:

STRENGTH

1. It has country wide network of stockyard and dockyard.

2. Consistency in quality.

3. Customer perception.

4. SAIL product has international standard.

5. SAIL maintains a better customer relationship approach.

WEAKNESS

1. Quality of the product is slightly inferior as compared to the


competitors who are having the latest technology.

2. Not consistent to meet the market demand with its supply.

3. Inconsistent delivery of secondary steel products.


OPPORTUNITIES

1. Due to its wide network, SAIL can easily fulfil the demand of the
customer.

2. SAIL has a very strong base; it can diversify into production of different
goods as per the market requirement.

THREATS

1. Main threats are its competitors like:-TISCO, RINL, ESSAR STEEL, JINDAL
STEEL, etc.

2. Obsolescence of existing technology.

3. High cost of input materials.

4. Tight money market situation.