Marketing of By-products and secondary product at Bokaro Steel Plant Under Steel Authority of India Limited ROHAN SINHA REG.NO.- 10904030

INTRODUCTION

STEEL AUTHORITY OF INDIA LIMITED (SAIL)

IT IS THE LEADING STEEL MAKING COMPANY IN INDIA. IT IS FULLY INTEGRATED IRON AND STEEL MAKER PRODUCING BOTH STEEL FOR DOMESTIC, CONSTRUCTION, ENGINEERING, POWER, RAILWAY AUTOMOTIVE, AND DEFENCE INDUSTRIES AND FOR SALE IN EXPORT MARKETS.RANKED AMONGST THE TOP TEN PUBLIC SECTOR COMPANIES IN INDIA IN TERMS OF TURNOVER.

HEAD OFFICE – KOLKATA

INTEGRATED STEEL PLANTSBOKARO STEEL PLANT (BSL) IN JHARKHANDDURGAPUR STEEL PLANT (DSP) IN WEST BENGALROURKELA STEEL PLANT (RSP) IN ORISSABHILAI STEEL PLANT (BSP) IN CHHATTISGARH

BOKARO STEEL LIMITED

BSL is the largest Steel manufacturing subsidiary company of India and is ranked in the Global fortune 500 companies.

Location - BOKARO STEEL CITY [JHARKHAND] Year of establishment- 1964 Production capacity- 9 million tons of saleable steel.

MISSION OF SAIL

“ To be a respected world Class Corporation and the leader in the Indian steel business in quality, productivity and profitability through customer satisfaction.”

OBJECTIVES OF THE STUDY

To know what is secondary product and why it is necessary for sell

KNOWING MARKETING POLICIES AND STRATEGIES

TO KNOW ABOUT THE MARKETING PROCESS USED BY B.S.L. TO SELL ITS PRODUCTS. [ e-AUCTION]

TO UNDERSTAND CUSTOMER SATISFACTION IN DEALING WITH B.S.L.

RESEARCH METHODOLOGY

Research type- descriptiveData collection: Primary data-Methods adopted for surveys : 1. Personal meeting with sales executives 2. Analysis of response of customer and executives. 3.Questionnaire method Secondary data- company database. Sampling technique- simple random ,convenient and

judgment sampling. Sample size-100 Sample area-Bokaro Steel City.

WHAT ARE SECONDARY PRODUCTS? In the case of manufacturing process, in every stage of production, always there will be certain percentage of products, which do not confirm to the standard quality, size and specifications. Such products are termed as “Secondary Products.

WHAT ARE BY-PRODUCTS?These are the products which are not originally produced by Bokaro Steel Plant but are the outcomes while producing the prime product. 

 

MARKETING DEPARTMENT AT B.S.L Marketing Department is one of the

Departments Bokaro Steel Plant. It deals with the activities of marketing of By- products, Secondary products, Waste products, Idle products.

(a) Marketing of Prime products where sales activity are co-ordinated by Central Marketing Organization(CMO).

(b) Marketing of secondary products and coal chemicals are done directly by sale of product by B.S.L. The secondary section deals with the secondary products.

It includes scraps of iron and steel slag, coal and coke fractions, coal chemicals.

RESPOSIBILITY OF MARKETING DEPARTMENT BUILDING CUSTOMER RELATION MARKET DEVELOPMENT JIT DELIVERY PRODUCTION ACCORDING TO MARKET

NEEDS STOCK REDUCTION PRICE FIXATION

MARKETING POLICIES AND STRATEGIES

Committed delivery. (JIT DELIVERY) Competitive price. Quick complaint settlement. Product knowledge Market demand awareness and sensitivity Quick response to market situation and demands Direct contact with the customers Innovative strategy (e –auction) Attractive and competitive pricing Resource utilization Customer satisfaction Prompt after sales service, complaint, settlement

MODE OF SALE [E-AUCTION]Procedure of E-Auction Advertisement/posting of dates and types of materials to be

auctioned in SAIL website and various newspaper (Local & National) every 15th to 20th of the month for the next month.

Posting of details of lots to be auctioned one week prior to the date of auction, on the website of SAIL and metal Junction.com

Inspection of lots to be auctioned by customers. Auction is held on www.MetalJunction.com

Report of auction conducted is given by MetalJunction.com Meeting of reserve price opening committee and their

recommendation.

Approval for sale of lots recommended by RP opening committee. Issue of offer to the customers, based on approval of chief

Executives.

ANALYSIS OF DATA COLLECTED FROM THE CUSTOMERS OF BSL (BY QUESTIONNAIRE) • In which category of customer do you belong?

Trader Manufacturer Processor Others0%

10%

20%

30%

40%

50%

60%

70%

Customers Belong From

INTERPRETATION- this graph shows that manufactures constitute 60% of the total customers because steel is the backbone of any manufacturing sector.

0 to 5 5 to 10 Above 100%

10%

20%

30%

40%

50%

60%Percentage

Percentage

INTERPRETATION-the above graph shows that 50% of customers are engaged in dealing with b.s.l. for more than 10 years which meant that customers are quite satisfied with the company and they think that products of the company are reliable which is quite good sign.

• Since when are you dealing with BSL?

•Why do you prefer to purchase from BSL?

72%

8%

16%4%

Preference for Purchages

qualitycheap transportationLocal MarketOther

INTERPRETATION-the result of the survey shows that customers are highly satisfied with the quality of the products ie. 72% of customers deal with b.s.l because of the quality of the products.

• Are you satisfied with the quality of product?

90%

10%

Satisfaction Level

Yes No

INTERPRETATION-customers of b.s.l are highly satisfied which is depicted in the above graph as 90% of the customers have said that they are satisfied.

•What type of products do you purchase from BSL?

Primary20%

Secondary30%

By-products40%

Scraps10%

Products Purchased from BSL

INTERPRETATION-in the above graph we can clearly see that the main product purchased from BSL are the by products and the secondary products almost 70% of the products sold are the by products and the secondary products.

• Are you dealing with any other company?

35%

65%

Dealings with another company

YesNo

INTERPRETATION-Its clear from the above graph that customers who deal with b.s.l are not tilted highly to deal with other companies. Only 35% of the current customers deal with other companies along with b.s.l

• Have you faced any difficulties while dealing with BSL?

15%

85%

Faced Difficulties while dealing

YesNo

INTERPRETATION-when asked about difficulties while dealing with the company only 15% of the customers said that they faced difficulties while 85% said there was no problem while dealing with the company

• • Did you complain about the problem faced?

Yes No0%

10%20%30%40%50%60%70%80%90%

Complained about problem

Complained about problem

INTERPRETATION-from the above graph we can see that most of the people who have faced problems do not complain about their problems. This means although less people have complains do not complain which is not good practice .if they would complain the company would be more responsive to their problems. This could help a lot in the operation of the customers.

• Did your complaints get executed?

85%

15%

Complains Get Executed

YesNo

INTERPRETATION-although complains are not made most of the times but 20% customers who complain out of them 85% get their problems solved .this means complains get treated very well. This shows good feedback system.

FINDINGSPolicies and strategies to create awareness among the customers about the product are not effective.All marketing procedure of prime products are decide by SAIL and carried out by the Central Marketing Organization (CMO)Customers are largely satisfied with the company.E –auction has totally revolutionized the process of marketing of steel and others are following the trend.It has increased transparency in the whole process and it is a big reason for customer high satisfaction.The organization is more concerned with larger orders of steel products by ignoring the smaller orders.Due to improper packing, the materials reach the stockyards often in damaged condition, which is attracting criticism from the customers and these damaged materials are sold with loss.Export is considered Secondary to domestic selling as BSL is a govt. undertaking and its first priority is domestic market.

SUGGESTIONS The pricing as we well as the distribution policies should be framed by keeping in mind the requirements of the complete range of manufactures and not only the bulk consumers. This will encourage the new re-rolling mills to approach BSL for the material.

The representative holds the complete picture of the products as placed in the market and the prices fixed with his consent will be on rational grounds and acceptable to all.

Price of the material for which 100% payment has been received as advance should

not be changed if the delay in the lifting of the material by the party is due to some fault of BSL but if is due to deliberate delay in lifting the material by the customer than the same policy should be applicable.

Induction of computers in marketing department. Proper packing is to be done to safeguard the materials from damage, which is occurring due to multistage handling and transportation.

Creating product awareness through print media, hoarding, industrial magazines etc.

CONCLUSION

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CONCLUSIONBokaro Steel Plant recognizes that leadership is essential for survival in competitive environment. Customer’s satisfaction like quality is a journey and not a destination. It is a essential that everyone in the company have a clear understanding of what customer satisfaction means if the plant aim to achieve leadership in customer satisfaction. While improved customer satisfaction is necessary for ensuring prosperity of the company must also be recognized that ability of the company to satisfy its customers would depend on its ability to continuously improve its profit and growth.

Customer’s satisfaction would happen when the management fulfils the the following dimensions. Delivery in time Product mix according to customer satisfaction requirement Flexible pricing policies Complaint settlement Culture of customer service

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