Chapter – 4

Marketing Department

ESSAR STEEL

4.1. List of Products and Services

Products List

1. Essar Steel Hot Rolled

2. Essar Steel Cold Rolled
3. Essar Steel Galvanised
4. Essar Steel Colour Coated Sheets
5. Essar Steel Plate
6. Essar Steel Pipe
7. Essar Steel Shot Blasted And Primed Plates
8. Essar Steel Factory Welded Beams
9. Essar Steel Burnt-To-Shape Plates
10. Essar Steel Trapezoidal Plates

4.2. Number of Customers / Overseas Customers

Essar Steel is a global producer of steel with a footprint in India, the Middle East and
Asia. Essar Steel sales their products & services to other companies as a manufacturing
material or as a necessary needs; that’s why company doesn’t know the actual number of
consumers.

Essar Steel is one of India's largest exporters of flat products, exporting to the highly
demanding US and European markets, and to the growing markets of South East Asia
and the Middle East.

A number of major client companies have approved our steel for their use, including
Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway, and Maruti Suzuki. Essar
Steel has acquired extensive quality accreditations and our lean team gives us one of the
highest productivities and lowest manpower costs among steel plants internationally.

4.3. Specific Distribution Channel

 Steel Distribution

Essar Steel is the first steel company to set up an end user distribution chain for steel
products under the brand names Essar Hypermart and Essar Expressmart. Hypermart is
the world's largest steel retail chain with a network of over 375 retail outlets across India,
Indonesia, Nepal and the Middle East.

Essar Steel's processing and distribution facilities are the largest in India with an
aggregate annual capacity of 4 million tonnes from its facilities in Pune (Maharashtra),
Hazira (Gujarat), Bahadurgarh (National Capital Region), Chennai (Tamil Nadu), Bhuj
(Gujarat) and Dubai (UAE)
  Distribution Outlets

Essar Steel is the first steel company to set up an end user distribution chain for steel
products under the brand names Essar Hypermart and Essar Expressmart. It has a strong
network of over 600 steel retail outlets. These outlets are conveniently located across the
length and breadth of the country to cater to the customized requirements of small and
medium enterprises.

Hypermarts offer a comprehensive range of flat and long steel products for a variety of
applications. Other product lines, such as structural and tubular products, are also being
developed to make Essar Hypermart a one-stop shop for steel products.

4.4. PLC – associate the product with respect to the PLC Stage
The term product life cycle refers to the length of time a product is introduced to
consumers into the market until it's removed from the shelves. The life cycle of a product
is broken into four stages—introduction, growth, maturity, and decline.

Products, like people, have life cycles. A product begins with an idea, and within the
confines of modern business, it isn't likely to go further until it undergoes research and
development (R&D) and is found to be feasible and potentially profitable. At that point,
the product is produced, marketed, and rolled out.

4.5. Market Segmentation

Essar Steel aims to achieve 25 per cent market share in auto-grade steel over the next
couple of years through strategic alliances and new product development.

Automotive high strength steel grades maintain the safety standards of vehicles, while
improving fuel efficiency through lightweighting.

The company has developed the new product for automotive manufacturers in response
to market requirements for stronger and lighter steels.

"Currently, we enjoy 18-20 per cent of market share and aim to achieve market share of
25 per cent in auto-grade steel over the next couple of years. We plan to achieve this
target through strategic alliances, new product development and Value Analysis Value
Engineering (VAVE) to comply with the new emission norm for auto sector," a company
official said here.

The domestic auto sector is at the cusp of massive growth and is projected to manufacture
5 million cars in the next 3-4 years. Even the commercial vehicle segment is growing at
over 10 per cent. The new steel policy envisages that the steel demand for auto industry
will be in the band of 10 MT by 2030.
The steel ministry has also highlighted that the value addition for auto should be fast-
tracked in the country.

Essar Steel has the first mover advantage, having set up seven steel processing facilities
in major auto hubs, including Gujarat. It has developed various new high-strength
products for auto sector to reduce weight of vehicles and increase fuel efficiency.

The company has developed new-generation crash resistant steel, high-strength cold
rolled steel and dent-resistant steels. High-strength hot rolled steel for long members
were developed for the first time and used by major auto-makers, giving them 17-20 per
cent reduction in weight.

4.6. Positioning Strategies

Essar Steel marketing strategy helps the brand/company to position itself competitively in
the market and achieve its business goals & objectives.

Essar Group has a wide geographic presence. Essar Steel has presence in India, US,
Canada. Essar Steel focuses on producing high quality iron and steel products.

The Essar Steel has located more than 1000 places across India. Essar Steel has its own
stations throughout the country at various locations. Apart from that, the various
production units are located in Mehsana, Cambay; Raniganj, West Bengal and Offshore
Mumbai. Various exploration sites are located in Jharkhand, Orissa, Madhya Pradesh,
and Assam.
4.7. Promotion Tools Used

Essar group has a strong workforce and it provides the best high quality services. Essar is
highly dedicated towards maintain a high customer base by participating actively in
promotions through social media both digital and through means of advertisements in
newspapers, magazines, hoardings, etc. This active participation of the Essar group helps
them in promoting the brand in a positive manner and portrays their continuous
dedication and efforts towards maintain the best image before the customers.

Essar group also believes in giving back to the society through its CSR activities and
environment friendly operations. Safety and environment are its top most priorities and
the company meets all the standards in achieving those.

4.8. Pricing Methods

Essar Group is one of the largest companies in India, with a strong revenue and profit
across its subsidiaries.

The recent takeover of Essar Steel might improve its financial condition more and
increase its profits. The prices of the consumer products in India are set by the
government and the companies have to abide by them. There is hardly any difference in
the price margins between various competing organisation because of this standard
regulation by government of India. For the retail brands, the prices are kept competitive
to fight against existing competitor retailers and ecommerce platforms.
4.9. Sales Force Management

Essar Steel addressed the Spartans and briefed them about how & what happens at Essar
Steel, their marketing strategy and how they differentiate themselves and innovate !

Managing the sales force involves the implementation of personal selling strategy. The
two key decisions in personal selling strategy are on selling styles and sales-force size.
The decisions on selling styles determine the range and nature of activities required for
management of sales-force. The decision on size of sales-force determines the magnitude
of these activities. These key decisions result from planning how to achieve the sales
volume and related company goals.

Once the sales people have been appointed the task of managing the sales force begins.
Managing the sales force is very important because the sales job is very dynamic and
there are no fixed predictions. Consumer thinking keeps changing from time to time and
from one situation to another.

There are targets that need to be achieved in a fixed time period, customers need to be
satisfied, reports need to be prepared, market intelligence is to be gathered and many
more activities need to be done by the sales people.

4.10. CRM Practices

Essar Steel has commissioned its new 1.2 million tpa cold rolling mill complex at Hazira
in Gujarat. The mill is scheduled for inauguration on 2 September 2005.

The Rs.1,000 crore CRM unit will produce high quality cold rolled and galvanized
products for application in the automotive, construction and white goods industries.
Meanwhile, Essar Steel's hot rolled steel mill capacity expansion, taking capacity to 4.6
million tpa, is scheduled for completion in 2006.

The CRM project was launched in 2003 by Steel Corporation of Gujarat -- a joint venture
between Stemcor of UK and Essar Steel. In June 2005, Essar Steel acquired the entire
equity holding of Stemcor in SCGL and another joint venture Hy-Grade Pellets that was
formed to set up an iron ore pelletization unit at Vizag in Andhra Pradesh.

4.11. List of Products Exported and in which country(s)

Per
Quanti Uni
HS Destinati Port of Value
Date Description ty t
Code on Loading (INR)
(Unit) (IN
R)
Aug 2601 IRON ORE China Paradeep 51,187, 258,97 5
09 1210 PELLETS (EXP. 500 1,776
2016 UNDER EPCG LIC (KGS)
NO 0330023748 DT
11.09.2009)THIS
EXP. UND.3RD
PARTY A/C
ESSAR STEEL
INDIA LTD.
Aug 2601 IRON ORE China Paradeep 51,555, 227,58 4
04 1210 PELLETS (EXP. 000 6,528
2016 UNDER EPCG LIC (KGS)
NO 0330023748 DT
11.09.09 & EXP
 UNDER
3RDPARTY A/C
ESSAR STEEL
INDIA LTD
Jul 05 2601 IRON ORE China Paradeep 75,845, 316,60 4
2016 1210 PELLETS(EXP. 000 7,264
UNDER EPCG LIC (KGS)
NO0330024271DT1
2.11.2009
&EXP.THRG. 3RD
PARTEXP ONA/C
OF ESSAR STEEL
INDIA LIMITED
Jun 2601 IRON ORE China Paradeep 54,175, 222,68 4
02 1210 PELLETS (EXP. 000 0,512
2016 UNDER EPCG LIC (KGS)
NO5230007436 DT
27.08.2010 & EXP
THRG. 3RDPARTY
EXP. ON A/C
ESSAR STEEL
INDIA LTD)
Jun 7318 ESSAR United Ludhiana 306 51,715 169
01 1500 EXPANSION Arab (KGS)
2016 WITH J BOLTS Emirates
MADE OFNON
ALLOY STEEL ( 6
MM, 8 MM, 10 MM
& 12MM )
Jun 7318 ESSAR United Ludhiana 329 51,715 157
01 1500 EXPANSION Arab (KGS)
2016 WITH I BOLTS Emirates
MADE OFNON
ALLOY STEEL ( 6
MM, 8 MM, 10 MM
& 12MM )
May 7208 PLATES Indonesia Nhava 1 0 0
25 5110 JINDAL/ESSAR/JS Sheva (NOS)
2016 PL/ACRONI AND Sea
FORPIPE AND
 FITTINGS
EVERGREEN
STEEL.
Jan 7318 ESSAR United Ludhiana 253 37,142 147
25 1500 EXPANSION Arab (KGS)
2016 WITH I BOLT Emirates
MADE OF
NONALLOY
STEEL ( 8 MM, 10
MM & 12 MM )
Jan 7318 ESSAR United Ludhiana 174 24,808 143
25 1500 EXPANSION Arab (KGS)
2016 WITH J BOLT Emirates
MADE OF
NONALLOY
STEEL ( 8 MM, 10
MM & 12 MM )