JSW CASE STUDY

Differentiating the Business Models and Advantages of the New Model

Previous Model:
● Transactional: Focus on selling steel products to existing dealers.
● Low Dealer Engagement: Limited training and support provided to dealers.
● Indirect Customer Relationship: No direct interaction with end-users.
● Weak Brand Image: Limited brand awareness and differentiation.
New Model (JSW Shoppe):
● Relationship-Based: Emphasis on building long-term relationships with both dealers and
end-users.
● Enhanced Dealer Training and Support: Comprehensive training programs on
customer relationship management, product knowledge, and sales techniques.
● Direct Customer Interaction: JSW Shoppe outlets allow direct engagement with
end-users.
● Stronger Brand Image: Consistent brand experience across all JSW Shoppe outlets
strengthens brand recognition and builds customer trust.
Advantages of the New Model:
● Increased Market Penetration: Reaches new customer segments beyond traditional
channels.
● Improved Brand Image: Creates a positive brand experience and enhances customer
perception.
● Enhanced Dealer Relationships: Fosters collaboration and mutual benefit between JSW
and its dealers.
● Valuable Customer Insights: Gains direct feedback from end-users to improve product
development and marketing strategies.
Critical Role of Salesperson:
The salesperson's role becomes crucial in the new model. They need to shift from order-takers
to relationship builders, focusing on:
● Understanding customer needs and preferences.
● Providing expert advice and product recommendations.
● Building trust and long-term relationships with customers.
● Actively promoting JSW Shoppe brand and offerings.
The salesperson's success directly impacts dealer performance and ultimately, JSW's overall
success with the new model.

Issues and Challenges Faced by JSW in the Transition

● Transforming Dealer Mindset: Shifting dealers to a new approach required significant
training and overcoming resistance to change.
● Performance Measurement: Lack of a system to track dealer performance made it
difficult to measure effectiveness and provide targeted support.
● Sales Cannibalization: Concerns existed that JSW Shoppe might negatively impact
sales from existing dealers.
● Implementation and Expansion: Managing the rollout across diverse regions and
ensuring consistent brand experience posed logistical challenges.
Adequacy of Marketing Initiatives and Additional
Measures
Existing Initiatives:
● JSW Shoppe brand building: Creating a distinct brand identity and communication
strategy.
● Dealer training and support: Providing training programs and ongoing support to
enhance sales capabilities.
● Customer engagement initiatives: Organizing promotional events, loyalty programs,
and customer service initiatives.
Additional Short-Term Measures:
● Targeted marketing campaigns: Focus on specific customer segments with customized
messaging and promotions.
● Digital marketing: Leverage online platforms for brand awareness, lead generation, and
customer engagement.
● Performance management system: Implement a robust system to track dealer
performance and provide data-driven insights.
Additional Long-Term Measures:
● Expand product offerings: Develop new products and services catering to diverse
customer needs.
● E-commerce platform: Develop an online platform for customers to purchase products
and access information.
● Technology integration: Implement digital solutions to streamline operations, improve
communication, and enhance customer experience.
● Franchisee selection and development: Implement a rigorous process for selecting
franchisees and provide ongoing support for their success.
Conclusion:
The shift to the JSW Shoppe model signifies a bold move towards a customer-centric approach.
While existing marketing initiatives are laying the foundation, additional short- and long-term
measures are crucial to sustain success. By addressing challenges, adapting to market
dynamics, and continuously innovating, JSW can solidify its position as a leader in the steel
industry.