Case overview

• The Tata group is the oldest, largest, and highly respected corporate brand in India. Established in 1907, Tata
Steel is the group’s flagship company with a current market cap of USD 13.7 billion

• This Case presents a situation wherein a leading Indian business house launches yet another brand adding to
its existing list of successful brands and strengthens its position as a leading supplier of steel.

• Brand is a concept that exists in the mind of consumers.

• Tata steel decided to launch world’s first cold rolled steel (CRS) by the name ‘TATA Steelium’.

• The basic idea was to create a brand out of a commodity.

• Branding inevitably leads to commodity differentiation and hence creates customer preference.

• Tata Steel conducted an intensive market research to understand the market behaviour and consumer needs.
Conclusion and future challenges
• Technological advantages such as production of cold rolled steel , Batch annealing, Skin passing, Machine
packing with thin plastic film, Electrolytic cleaning helped company in achieving
• Gaining strategic advantage over competitors by providing superior quality products with high
customisation and reliability.
• Helped customers in realising utility of price by providing 100% performance at customer’s end and
support services.
• 42% revenue growth in 2004-05 and 14% revenue growth in the year 2005-06.
• Technological advantages helped Steelium in gaining the market share of small customer
• CRS suitable for deep drawing, bending, forming and artistic use
• Excellent quality, Impermeable and highly protective packaging and Customization of size.
• However Steelium may not be able to command a premium on the price in future due to
• Increased competition from likely entry of Essar Steel, SAIL, Jindal and international players.
• Limited availability with increasing demand