Case study on METAL PRODUCTS INDIA LTD.

4Ps
 PRODUCT MS (mild steel) metal sections  Usage: construction, furniture, rolling shuters, industrial shades.

 PRICE  Volume discount of 7% to BMT(Bangalore Metal Traders)  BMT keeps 3% & gives away 4% to subdealers  Other dealers volume discounts varying from 3% to 7%  Price to dealers were decided by manufacturer

 Dealers marked up the prices by 7% to 8%  Manufacturer have no control over price charged by dealers to the customers.

PROMOTION  Savings in freight coupled with better availability Of Material

 PLACE  Distribute product through dealers  Also sold their products to OEMs(Original Equipment Manufacturers)  Dealers have sub-dealers located at different places to penetrate the market

FACTS
 BMT the largest dealers of south India offtake  20% of MPIL s production  Other dealers off-take 80% of MPIL s production  In year 1996-97 , 2050 MT lifted by BMT  In year 1997-98 , 850 MT lifted by BMT

PROBLEMS
Market share decrease in Hubli and Belgaum which is less than 30% AM(Adarsh Metals) & MMS(Mahavir Metal Sections) hold more than 50% of market share BMT get order of only those sizes which were not readily available with AM & MMS

REASONS
 New entrants AM & MMS started offering discounts of 6 % to7% to the sub-dealers of BMT whereas they got only 4% from BMT

SUGGESTIONS
 Distribution channel should be made shorten  More emphasis should be given on personal selling