Economic growth of world economy

The economic slowdown in India is one of the world's biggest economic stories, but it is commanding only a modicum of attention in the United States. It may not even look like a slowdown because by developed standards, India's growth - estimated by the International Monetary Fund at 6.9 percent for 2012 - is still strong. But a slowdown it is: The economy has decelerated from projected rates of more than 8 percent, and negative momentum may bring a further decline. The government reported year-over-year growth in the Octoberthrough-December quarter of only 6.1 percent.

Indian economy
Confirming fears of a slowdown, India's economy grew by just 7.8 per cent in the fourth quarter ending March this year, mainly due to poor performance of the manufacturing sector, as against 9.4 per cent in the same three-month period of the previous fiscal. However, economic growth, as measured by the Gross Domestic Product, improved to 8.5 per cent in 2010-11 from 8 per cent in 2009-10 due to better farm output and construction activities and financial services performance

Steel industries in india
Role of Iron and Steel Industry in India GDP:The Role of Iron and Steel Industry in India GDP is very important for the development of the country. In India the visionary Shri Jamshedji Tata set up the first Iron and Steel manufacturing unit called Tata Iron and Steel Company, at Jamshedpur in Jharkhand. Iron and steel are among the most important components required for the infrastructure development in the country.

Role of Iron and Steel Industry in India GDP-Facts:•The Iron and Steel Industry in India is one of the fastest growing sectors •The demand drivers for the Indian Iron and Steel industry are increase in the activities of the automobiles industry, real estates industry, transportation system, aircraft industry, ship building industry, etc. •India ranks 5th in the world in terms of production of steel •The amount of crude steel produced in 2006-07 was 50.71 million tonnes •The amount of finished steel produced in 2006-07 was 51.9 million tonnes •The production of finished steel was increased by 16.52% •The production of finished carbon steel was 24.8 million tonnes in the year 2006-07 •It is expected that India would become the second biggest producer of steel within the year 2016 and the production per year would be 137 million tonnes •The exports pertaining to the steel industry was 6.26 % during the period 2006-07

Role of Iron and Steel Industry in India GDP-Consumption:•The domestic consumption of steel has grown by12.5% in the past three years •The domestic steel consumption in the year 2006-07 was 41.14 million tonnes •The average growth rate of the Indian Iron and Steel Industry is 11.36% •The construction projects all over India are major consumer of steel •The per capita consumption of steel in India is 35kgs •As the per capita consumption of steel is lower than other countries, so the steel industry has huge opportunities in the future

Role of Iron and Steel Industry in India GDP-Growth in Future:•The Arcelor Mittal, which is the largest steelmaker in the world, has plans of establishing two Greenfield steel projects with capacity of 12 million tonnes annually, in India •Acerinox SA, one of the important stainless steel manufacturers in collaboration with Nisshin Steel, Japan is setting up a steel plant in India •The Tata Steel ranks 5th in the world steel production and the company have plans of expanding its capacity by the year 2015 •SAIL, India's biggest producer of steel has plans of increasing the production to 24.98 million tonnes annually •Sinosteel Corp, China are planning to invest US$ 4 billion to set up a 5 million tonnes capacity Greenfield steel plant •The acquisition of the Corus, the Anglo-Dutch steel manufacturer by the Tata Steel •The Algoma Steel, Canada was acquired by Essar Global for US$ 1.63 billion

About JSW steel
JSW is part of US $15 billion O.P.Jindal Group. It has grown to US$ 9 billion in little over a decade and has presence across various sectors – Steel, Energy, Minerals, Port & Infrastructure, Cement, Aluminium. JSW Steel, the flagship company of the JSW Group, is today an integrated steel manufacturer. JSW Steel is the largest private sector steel manufacturer in terms of installed capacity. The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired Piramal Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The Jindals, who had wide experience in the steel industry, renamed it as Jindal Iron and Steel Co. Ltd. (JISCO). In 1994, in order to achieve the vision of moving up the value chain and building a strong, resilient company, Jindal Vijayanagar Steel Ltd. (JVSL) was setup, with its plant located at Toranagallu in the Bellary-Hospet area of Karnataka, the heart of the high-grade iron ore belt and spread over 3,700 acres of land. It is just 340 kms from Bangalore, and is well connected with both the Goa and Chennai ports. In 2005, JISCO and JVSL merged to form JSW Steel Ltd. JSW Steel is one of the lowest cost steel producers in the world. It has established a strong presence in the global value-added steel segment with the acquisition of steel mill in US and a service center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in Georgia. The Company has also tied up with JFE Steel Corp, Japan for manufacturing the high grade automotive steel. JSW Steel has acquired a majority stake in Ispat Industries Ltd. Making JSW Steel India’s largest steel producer with a combined capacity of 14.3 MTPA by March 2011. The Company has also acquired mining assets in Chile, USA and Mozambique. JSW Steel offers the entire gamut of steel products – Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds & Blooms. JSW Steel has

manufacturing facilities at Toranagallu in Karnataka, Vasind & Tarapur in Maharashtra and Salem in Tamil Nadu. By 2020, the Company aims to produce 34 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal and Jharkhand.

Products offered

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Hot Rolled Coils & Sheets Hot Rolled Plates Cold Rolled Closed Annealed Coils & Sheets Galvanised Coils & Sheets JSW Vishwas G.C. Sheets Galvalume Coils and Sheets JSW Vishwas Plus G.C. Sheets JSW Pragati Colour Coated Sheets Pre-Painted Products JSW TMT Plus Bars Wire Rods & Special Steel - RCS, Rounds & Spring Steel Flats

Concept of jsw shoppe
In an endeavor to expand retail base and ensure the easy availability of quality and branded steel in all its market, JSW Steel has setup 350 exclusive JSW Shoppes across the length and breadth of the country till 2012. It has launched JSW Shoppe all over india in 2 years and at present there are more than 400 shoppes in the country Mr. Sajjan Jindal, vice chairman and managing director, JSW steel has inaugurated two exclusive JSW Shoppe in Hubli, Karnataka on December 4, 2007. The concept originated from the fact that the company wants the end consumer to get the right quality of product at competitive prices at the right place. It will help in building trust with the end user and provide them steel at their doorstep. All technical specification and details on manufacturing ranges are available in JSW Shoppe. Information of all types of JSW steel product, ranging from HR coils to Colour Coated Steel and Long Products would help in enhancing the awareness on wide usage of steel among cross section of society & industries.

At JSW Shoppe, end consumer will also know about different applications of different steel products being manufactured by M/s JSW Steel through actual components and pictures from Automobile, White Goods Sectors, Construction.

The major objectives of establishing JSW Shoppe’s Could be enlisted as follows:  To have an organized retails network  Branding of distribution channels  Consumer awareness on product ranges and influence their decision making  Establish long-term association with dealers  Provide a pleasurable shopping experience to the customers  Provide customers with value for their money

In the words of Mr. Sajjan Jindal VC & MD, JSW Steel Ltd., "The concept of the Shoppe originates from the fact that we want the customer to get the right quality of product at the right price and at the right place." This novel marketing initiative will go a long way in creating brand awareness about the superior product quality and will ensure that the customers get full value for money.

Organized retailing

With organized retail growing by the day in the country, can manufacturers of steel be far behind? Seems not. JSW Steel has come up with a unique steel-retailing format in the form of JSW Shoppe, to forge a PAN-India presence and to de-commoditise steel. Being the country’s largest private steel producer JSW Steel has decided to brand its product and sell it through its exclusive retail outlets called JSW Shoppe, so that consumers not only have a pleasant buying experience but in the process steel also gets a brand status. Such retail outlets would stock all the products and also educate the customers about the various end-applications of Steel. Combining innovation with functionality, and versatility with style, JSW Shoppe will provide a one-stop destination for consumers intending to go steel shopping. JSW Shoppe envisions creating a unique organised, retail experience that displays the versatility of steel — from its functionality, to its aesthetics. Further, it will bring innovation to steel products and make steel buying pleasurable. JSW Shoppe is a mid-size specialty store, which will retail a range of steel oriented products, all under one roof. It will offer:      better shopping experience better quality of products greater time and money value to the customer comprehensive range customer delight through its, services, and in-store facilities

Well-displayed and stocked shelves, signage, and competitive prices will help them browse and choose. New designs and innovative products will engage them. Information, consultancy service, and advice, will facilitate right selection. Concept kiosks and displays, which showcase the product, will enable them to visualise and promote impulse buying.

Buying steel for one’s home in India has often not been very pleasurable or memorable. The place from where the purchase is made is not always comfortable and may lack credibility. The customer is always worried about the quality of the product, and bargaining is no guarantee that one has got a fair deal. Therefore, purchase of steel items is mostly outsourced to fabricators, masons and other influencer groups. Consumers may end up paying more but that is the "price" of convenience of not having to buy directly. And shopping with the family for steel products is quite unthinkable. However, the boom in real estate coupled by the retail revolution has seen most categories in the home market explore new retail formats and give the end consumer more choice, convenience and comfort. This will be achieved by understanding consumer needs and help vendors innovate and develop such products. This store will also showcase steel as a material of choice that is environmentally friendly, aesthetically pleasing, and functionally resilient.

In addition to this, it is recommended that JSW Shoppe should come up with an “Info Centre”, which will spearhead dissemination of information on a wide range of subjects related to steel for a discerning audience. It will also provide a platform to learn and understand buyer needs and behaviour, and develop systems and processes that would be shared with retailers and distributors of steel products to help enhance the steel retail environment at large.

Dealers

Need for branding in steels

To beat the industry trend in a situation of over-supply we felt the need to move away from selling commodities into marketing brands. Even as we will continue to leverage and take to greater heights the value of the JSW brand, there will be efforts to create new images and associations for our services and products in current as well as new businesses. Branding will give rise to customized products in terms of value, performance and pricing; it will meet our customers' needs better. Branding will go a long way in meeting the challenge of gaining a sustainable competitive edge. We feel that branding Steel would help JSW Steel in three big ways: 1) it would help stabilize the flow of revenues even during business downturns, 2) it would make premium pricing possible and 3) this JSW Shoppe format will help in developing long term relationship with dealers. Prior to launching branded steel products, through organized retailing format, JSW Steel took necessary steps to become more customer-focused. There are several benefits that come from branding and marketing a product as opposed to just distributing a commodity. Apart from tangible benefits such as a better price, players can also build a loyal customer base. If the brand is positioned and developed, it will create a segment in the market that is loyal to the brand. This, in turn, will offset the uncertainties brought about by that segment of customers who buy products on price considerations alone. The loyal customer is able to build a stable relationship with the brand, thus reducing the vagaries of price for the supplier while assuring himself of a good product. Branding products will synergise with the company's brand image. The economic benefits of branding lie both in the protection of the price lines of a company's products, as well as in the protection of the company's market capitalization. This creates a Win-Win situation for all…     The Customers The dealers JSW Steel and The Steel Industry as a whole

Before and After distribution channel

Existing Distribution Channel Channel

Post JSW Shoppe Distribution

JSW Steel

JSW Steel

Dealer

Dealer + JSW Shoppe

Value Addition

Retailer

Retailer

Consumer

Consumer

Performance analysis

Flow Chart- JSW Shoppe Project
Defining Objectives of JSW Shoppe (Exclusive Retail Outlet)

Incorporation of Architect for Creating Design for JSW shoppe

Identification of Dealers

Visit to respective dealers and their location

Consent from dealer for JSW shoppe

Confirmation of Location

Measurement & Layout from Dealer

First Cut Design to Dealer for Approval

Feedback & Approval to freeze the layout

Appointment of local civil contractor

Other designs to Dealers

Start of work

Purchase order for Elements

Samples from Plants

Products / End application from vendors

Inspection of site by designer

Dispatches to site

Elements (Furniture)

Stationery

Steel card

Brochures

LCD & DVD

Others

Installation of all elements

Final Inspection

Inauguration of JSW Shoppe

Dealer Selection Criterion (Min. Requirements)
A. B. C. Available space of min. 300-500 sq. ft. with frontage of min. 15ft. Suitability of location / infrastructure. Existing retail base / sales / staff etc.

Documents filed for dealership contract

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Initial survey field report (form 1) Initial survey rating report(form 2) Dealer registration form(form 3 with annexure A, B, C Statutory requirements  Annual audited accounts for the proceeding 3 years  Annual return under section 159 of the companies act 1956(as amended)  Annual return of income u/s 139 of income tax act 1961  Tax audit report u/s 44AB of the income tax act 1961(if applicable)  Permanent account number u/s 139A of income tax act 1961  Tax deduction account number(TAN)U/S 203A of income tax act 1961  Tax identification number(TIN) under sales tax act  CST Registration number u/s 7 of central sales tax act 1959  BST Registration number u/s 22 of Bombay sales tax act 1956  Annual return u/s 32 of Bombay sales tax act 1959  Excise Registration number u/s 6 of the central excise act 1944  Monthly RT 12 Returns under rule 173G(3)of the central excise rules, 1944 for the preceding one year

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Due diligence review form (form 4) Recommendation letter/note from consignment Agent/Branch Blank cheques Security deposit Dealership agreement Product specification agreement Appointment letter Data entry in customer directory

Ordering process

Brand development activities
New Identity of JINDAL VISHWAS

Jindal Company since corporated was known as Jindal vishwas with the development of the company and increasing customer base and customer trust the company took a step forward to modernize. With this in mind the company came to be known as JSW VISHWAS. To continue with the customer trust and its image in the corporate the company only modified a bit with its logo which signifies that the company still continues with the same goodwill. The minute change in the logo signifies:ella, in the old logo, has been retained which symbolizes the trust that the billions have placed on us. colours & make the logo more vibrant

Structural Advantages
The structural advantages of JSW Shoppe, the organized retail format, are manifold, likely:

 Builds a long-term association with the dealers.  Direct interaction with the end consumer becomes possible  Generates awareness about our existence among the end-users  Develops loyalty in the minds of the customer by building confidence and trust  Focused promotional activities can be undertaken  The pulse of the market can be monitored  Promotes direct marketing and selling  Gives a platform to showcase our products  All the products are available under one roof  We get an opportunity to not only showcase our products but also to exhibit our service and commitment towards our customers  Customers not only get the products but also the experience

Bottlenecks

Recommendations for the loopholes

Promotional activities undertaken trough Shoppe
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Leaflets/brochures Retailers boards Hoardings Bus branding Van creative Wall painting Standee Gate branding Banners Bus queue shelter Advertisements

some positioning statements
        ―pehchaan nayi vishwas wahi‖ ―badlo zamaney k saath‖ ―kal agar suraksha chahiye toh aaj apni dhal banaiye‖ ―Kal sunehra banega agar aaj main rang bharogey‖ ―Kal ki mazbooti k liye aaj ki neevmazboot karo‖ ―naye bharat ki buniyad‖ ―Creating life long bonds‖ ―Quality beyond words‖

Effectiveness of the promotional activities

Recommended promotional activities

Benefits to the dealer
 Differentiating you from the others  Growth prospects will increase  Structured and Organised Business  Presence in the market will be pronounced  Scope of business will widen  Well-equipped infrastructure  Value addition to business through JSW collaboration  Additional business opportunities

Benefits to JSW

 Steel market becomes organized  Streamlining the supply chain  Records can be maintained in a scientific manner  Developing a Brand status for itself and its products  Long-term association with dealers  Data is available for analysis and projections  Gives opportunity to communicate its product differentiation  Its presence in the market will be pronounced  Environmental Analysis could be possible  Consumer analysis could be possible  It would be easy to plan products

Benefits to the Steel Industry
 De-commoditisation of steel  Steel acquires a brand identity  Immunity from seasonal and market fluctuations  Can position themselves in the minds of the consumer  Steel will no longer be purchased, it will be aspired  Market becomes organized  Data sharing could be possible  Can charge premium prices  Steel shopping will be an enjoyable and memorable experience  Direct interaction with the end consumer possible  Elimination of middlemen  Women can also be targeted for steel shopping  Can induce impulse buying  Enables market research

Performance comparison with competitors

Other valuable activities undertaken

Conclusion

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