Abul Khair Steels

Formed in 2009 Pioneer of steel products Single largest most advanced steel mill in

Bangladesh Known for quality, excellent personalized customized support service Used the TMT technology for the 1st time in Bangladesh Production capacity of 1.2 million metric ton

AKS mission statement

The Mission of the Company is to make life of the people secured and safe by providing quality products and to be a partner in the nation building activities

Vision
By

2030 Abul Khair Steel would like to become a brand name throughout the World in steel industry

Psychographic Variables

Loyalty Status

Benefits

Behavioral

User Rates

User Status

Target market

High price

AKS Baizid Steel KSRM

Low technology RSRM GPH Low price

High technology

Marketing Mix

product

price

Marketing mix
promotion place

What is TMT bar?

TMT = thermo mechanical treatment use the technology of Oxygen Lancing before the

procedure of TMT bar. Procedure for TMT bar: tempering, quenching ,slitting , chilling Due to this technology , both mechanical and chemical quality of the steel is improved. Which enables the product to bear extreme weight.

Steel billets, Square bars, Scrap steels

Scraps steels are

Raw material

collected from local market

Rest of the raw

materials are imported from China. Japan, South Korea, Iran and Thailand

Production process

Production Procedures
Oxygen Lancing: The raw materials are refined to get a

controlled mixtures of carbon, silicon, manganese, sulfur etc. Tempering: billets are heated at 1200 degree Celsius to make it ready for quenching. Quenching: after tempering, the outer surface of the billets are cooled. Slitting: the billets are cut down with heavily pressurized water. Chilling: final process of TMT bar production where the steel bars are given the actual shape of TMT bar

Production procedure
Tempering Quenching

Slitting

Chilling

Quality
The latest technology for graded steel bars. It is made from 100% purified steel billets. Maintains national and international bar standards: BDS ISO 6935: BANGLADESH BS4444: Great Britain ASTM: USA DIN 488: Germany NFA 350 16:France JIS 3112:Japan AUS 4671: Australia NSZ 4671: New Zealand GOST 10884: Russia Tested and approved by BUET

Continued
Skilled stuff.
Full automation. Have a full, highly skilled team of 12 persons from BAO steel", China , which is one of the finest steel mill in the world. Gets training and technological support from Cumming steel mill

Features of TMT bar

Features of TMT bar

Service level
Whenever there is a complaint, the sales and

marketing department goes there with a team of 50 people. The team call back the products to their research center and verify the problem. Every month they do a survey on their quality acceptance from the customers.

Pricing
Average selling price is 73000 Tk per ton and

Average cost is 70000 Tk per ton. The main competitor BSRMs average selling price is 77000 Tk No pricing list for retailer and middleman.

Pricing Policy
BSRM selling price is 77000tk per ton where AKS

selling price is 73000 tk. AKS selling price is comparatively low because they enjoy economies of scale Due to high sales volume which leads to more use raw materials, self established power plants and as well as has a agreement with Govt. for supply of gas.

 Allowance policy: 500 to 1000 tk per ton to

wholesalers. Credit term: no specific credit terms. In special cases, gives 15 to 30 days of credit term to loyal customers. Payment period: Depending on letter of credit (LC), pays within 1 to 6 months to suppliers.

Place
Channel: 8 to 10 depots Coverage: Whole Bangladesh Assortments: All the depots are in convenient

position Locations: Depots are in the main regions Inventory: keep total 30% inventory Transportation: Has own transportation Logistics: Well positioned

Channel
Depots are located in Dhaka, Chittagong, Khulna, Faridpur, Sylhet, Jessore, Barisal, Rajshahi, Rangpur, and Coxs Bazar.

Coverage
Depots are situated in such a way that it is easy to

cover whole of Bangladesh. AKS factory is in Chowdhury Ghata, Barowalia, CTG which is covering the whole Bangladesg according to their demand.

Inventory
Keeps 30% on hand. In

case of emergency AKS use this 30%. These inventories are kept in all the warehouse. Inventory is also kept for special purposes such as order form loyal customers, additional need for real states.

Location
As we can see, depots are in the main regions of

Bangladesh. Depots are in places where it is more populated.

Depots are supporting AKS to give desired service to

the customers.

Transportation

AKS has their own

transportation for delivery of goods to depot. They have many trucks to make moving of goods time effective. Though after delivering goods to the depot AKS plays no further role in transportation

Logistics
People

can visit the depots easily. They are easy to access and people does not have to go through any hassle. Transfer of goods from the factory to selected depots is suitable.

Sales promotion
Pull strategy: Spends a lot on advertising. Every year

they spend around 30 cores for advertising. Seminars with BUET engineers Taking the sponsorship of various reunion program of school and colleges AKS do sales promotion in rehab fair by using leading real estate companies

Advertising

Web sites
Electronic media

Printing media
Billboards

Outdoor

Sites
Face book

Electronic media
TV

Twitter
Alibaba.com

Radio
Websites

Print Media
Newspaper Selective magazines

Public Relation
Open air concerts- Last year on 31st December they

held the biggest concert in Bangladesh. Environmental work.

Conclusion
So far AKS has done excellent work in steel industry. They gained the trust of consumers in short period of time through high quality and service. They have already 25% loyal customers. As far as we can see the 4 ps of AKS are quiet good enough to support its mission and vision and which is helping to achieve its target profit. It is easy to say that Abul Khair Steels has become a key player in steel industry.