1.

COMPANY PROFILE

1.1 GROUP PROFILE:

The Tata group comprises over 100 operating companies in seven business sectors:
communications and information technology, engineering, materials, services, energy, consumer
products and chemicals. The group has operations in more than 100 countries across six
continents, and its companies export products and services to 150 countries.
The revenue of Tata companies, taken together, was $103.27 billion (around Rs. 624,757 crore)
in 2013-14, with 67.2 percent of this coming from businesses outside India. Tata companies
employ over 581,470 people worldwide. Brand Finance, a UK-based consultancy firm, valued
the Tata brand at $21.1 billion and ranked it 34th among the top 500 most valuable global brands
in their Brand Finance® Global 500 2014 report.
The Tata name has been respected in India for more than 140 years for its adherence to strong
values and business ethics. The group has always believed in returning wealth to the society they
serve. Two-thirds of the equity of Tata Sons, the Tata promoter holding company, is held by
philanthropic trusts that have created national institutions for science and technology, medical
research, social studies and the performing arts.
Anchored in India and wedded to traditional values and strong ethics, Tata companies are
building multinational businesses that will achieve growth through excellence and innovation,
while balancing the interests of shareholders, employees and civil society.

1.2 COMPANY PROFILE:

Established in 1907 as Asia's first integrated private sector steel company, Tata Steel, the
flagship company of the Tata group, is among the top-ten global steel companies with an annual
crude steel capacity of nearly 30 million tonnes per annum. A Fortune 500 Company, the Group
recorded a turnover of US$ 24.81bn in FY 14.
World's second-most geographically diversified steel producer, the Tata Steel Group has
operations in 26 countries, commercial presence in over 50 countries and workforce comprising
80,000 employees across five continents. What sets the Tata Steel Group apart is not just extent
or magnitude of its operations - it is the excellence of its people, innovative approach, and
overall conduct.
Tata Steel's larger production facilities comprise those in India, the UK, the Netherlands,
Thailand, Singapore, China and Australia. Operating companies within the Group include Tata
Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel and Tata Steel
Thailand.
The Tata Steel Group's vision is to be the world's steel industry benchmark in "Value Creation"
and "Corporate Citizenship" through the excellence of its people, its innovative approach and
overall conduct. Underpinning this vision is a performance culture committed to aspiration
targets, safety and social responsibility, continuous improvement, openness and transparency.

1.3 HISTORY OF THE COMPANY:

The story of Tata Steel is a century old. And so is the story of steel in India. Etched with the
visions and hardships of a single man, the story has flowed through ages to redefine steel in
every way. The saga, which started in 1907, completes a century of trust in 2007. Over the years
this one company has exposed the various shapes and forms in which steel can be applied for
effective utilization. The story of Tata Steel: defines and redefines conventional wisdom in
myriad ways.

The Industrial Revolution in England ushered in an era of unparalleled peace and prosperity.
Modern science bore fruit in an unprecedented technological development and industrial
progress. This left countries like India, where industrialization was still in its infancy, feeling
slightly dazzled and overwhelmed. The leading Indian intellectuals of the 19th century believed
that if India were to keep pace with the world it would have to master the modern scientific
methods of the West. In these times was born Jamsetji Nusserwanji Tata. Within his lifetime,
Jamsetji was to witness the birth of a revolutionary Indian nationalism that would assist in the
emergence of independent India, which he helped to create and whose presence could already be
felt when he died in 1904.
1.4 TATA STEEL TODAY

As a result of innovations and technological up gradation, Tata Steel, has become a well-run
ultra modern plant - one of the best in the world. Fundamental changes in some metallurgical
parameters have brought about this remarkable transformation. Necessity became the mother of
invention and numerous innovations invoked improvement. The metallurgical changes
introduced were essentially centred around:

 Reducing alumina level in sinter from 4.4 to 2.5 %.

 Improving in coke quality.
 Making changes in the fluxes used in sinter making essentially to decrease the alkali
input.
 Adopting the optimum LD vessel configuration and blowing conditions to accommodate
the high slag volume required to deal with high silicon and phosphorus in Indian hot
metal.
 Increasing the yield during LD steelmaking.
 Introducing continuous casting (CC) instead of ingot casting to increase the net yield.

All these factors have made Tata Steel internationally cost competitive. In terms of hot metal
costs, Tata Steel is amongst the lowest in the world and has a clear advantage over other major
integrated producers. The cost of conversion from hot metal to a finished product such as hot
rolled coils where Tata Steel has not been very competitive so far would be taken care of in the
near future as investments already made to achieve the results foreseen. High ash in coke, poor
room temperature and high temperature strengths of coke, high alumina in the iron oxide feed,
high silicon in hot metal, low yields during steelmaking, low yield of finished products, high
energy consumption, high manpower, etc. have been the weaknesses not only of Tata Steel but of
the Indian Steel industry as a whole. Appropriate steps taken by the Company have already
resulted in better yield lower energy consumption, lower silicon in hot metal, lower silicon in hot
metal, lower lime consumption in steelmaking, higher vessel life, etc., all of which augur well for
the Steel Company in future.
Located at Jamshedpur, Tata Steel Ltd. was established in 1907 and was the first Integrated Steel
Plant in India. It commenced its operations in 1911, with a capacity of 1, 00,000 tonnes per
annum of ingots and expanded to a million tonnes per annum of saleable steel by the mid fifties.
Presently it has an annual capacity of 10 million tonnes at its Jamshedpur Plant. The plant,
equipped with the latest steel making facilities such as Basic Oxygen Furnaces, Vacuum
Degassing and Continuous Casting Units presents the very epitome of technological
advancement. A whole range of steels addressing the needs of the construction, engineering and
automotive sector, testify to Tata Steel’s capability in steel making. These products have found
acceptance not only in the domestic Market but all over the world.

1.5 TUBES SBU:

Tata Steel - Tubes Strategic Business Unit (SBU) was established in 1985 after the merger of the
erstwhile Indian Tube Company Limited with Tata Steel. Over the years, Tubes SBU has
emerged as one of the leading manufacturers of welded pipes in the country, with an installed
production capacity of over 4,50,000 MT per annum.
With continuous expansion and growth propositions on the anvil, Tubes SBU presently has three
main lines of business -
 Commercial Tubes - These are used for the conveyance segment and sold under the brand
name of 'Tata Pipes'
 Structural Tubes - These are for the construction segment and sold under the brand name of
'Tata Structura'
 Precision Tubes - These are for the Automotive, Boiler and Engineering segments
Tubes SBU manufacture commercial, structural and precision tubes at its two plants, namely, the
Standard Tubes Plant and the Precision Tubes Plant. The plants are equipped with state-of-the-
technology and a high degree of customization is achieved through a comprehensive plant
modernization programme involving up-gradation of the plant, technology and process control.
Business excellence and customer satisfaction are at the core of Tubes SBU's operating
principles. The Unit functions efficiently through an organized network of sales offices across
the country along with the marketing headquarters in Kolkata, West Bengal. It reaches out to its
Vast and varied customer base with the best quality products that are achieved through
continuous improvement processes and ensure optimum customer satisfaction.

1.5.1 ABOUT TATA STRUCTURA:

Tata Steel - Tubes Strategic Business Unit (SBU) manufactures Structural Tubes under the brand
name of 'Tata Structura'. Tata Structura Steel Hollow sections are superior in quality and are
manufactured using raw materials that come from Tata Steel's world-class Hot Strip Mill.
Besides bearing the trust and value of the Tata Steel brand name, Tata Structura Steel Hollow
sections are advantageous from a techno-economic perspective. Structures made of Tata
Structura Hollow Sections are lightweight and therefore more resistant to seismic forces. These
ensure high structural durability and are preferred by architects and structural engineers for
Airports, Metro & Railway stations, Malls, IT & Industrial complexes, Conveyor galleries, Solar
support structures etc.
'Tata Structura' steel hollow sections are of four types -
 Rectangular Hollow Sections
 Square Hollow Sections
 Circular Hollow Sections
 Galvanized Hollow Sections
The sections are manufactured up to a maximum size of 250x250 mm for square hollow sections,
300x200 mm for rectangular sections and 300 mm NB for circular sections. The thickness of
these sections range between 2 - 10 mm.

1.5.2 Quality:

Tata Structura Steel Hollow Sections conform to IS: 4923 and IS: 1161 standards of
manufacturing. The quality of each Tata Structura Steel Hollow Section undergoes strict scrutiny
during the manufacturing process. It starts with slitting the strip edges, continues with speed,
temperature control during the high frequency induction welding and is followed by online non-
destructive eddy current testing directly after welding. Off-line drift and flattening tests are also
conducted. This is all within the IS 9000 Quality Management System.
The 5 Cs of Tata Structura (may be displayed in the form of an info graphic)
 Cost Effective
 Corrosion Resistant
 Concentric Strength
 Convenience of Fabrication
 Creativity

1.5.3 Advantages:

 Uniform material strength - All our products come with a test certificate and the material
strength is specifically mentioned
 Uniform thickness, dimensions and length as per Indian specifications
 100% of the material is tested for any defects along the weld line by non-destructive testing
method
 Easy to weld, bend and fabricate because of high ductile steel
 Long lasting and better resistance to corrosion because of high quality steel
 Enhance the aesthetic quotient of a structure

1.5.4 Cost Efficiency:

 Up to 30% reduction in steel consumption as compared to conventional sections

 Lower handling cost, transportation cost, overall fabrication and erection cost
 Lower cutting cost because of less cross-sectional area
 Lower welding cost due to direct connection without an additional gusset plate
 Smooth profile and less exposed surface acts as formidable barrier to rust
 Lesser painting and maintenance cost compared to traditional sections
 The lower dead weight of Tata Structura helps in reducing the design load, thereby reducing
the material cost of foundation
1.5.5 Applications of Tata Structura
The applications of Tata Structura have been classified under the following segments:

1) Architectural

Applications
Attributes
Shopping Malls
Canopies/Atrium Lightweight
Glass Curtain Wall Frames Flexible and easy to form shapes
Partition Frames Smooth surface finish
Space Frames Appealing aesthetics
Guard Rails & Staircases Contemporary

2) Infrastructural

Applications

Airport Terminal Buildings

Bridges Attributes
Bus Stands
Sign Supporting Structures High strength
More column free space
Larger & thicker sections
Lightweight

3) Industrial

Applications
Industrial Sheds Attributes
Material Storage Racks Free from sharp edges
Conveyor Gantries, Trestles Ease of fabrication and erection
Steel & Power Plants High strength to weight ratio
 4) General Engineering

Applications
Attributes
Automobile Chassis
Truck & Bus Body Members Lightweight
Exhibition Stalls Ease of fabrication
Furniture Minimal painting area
Solar Power Plant Structures High torsional resistance
Scaffolding
Greenhouse Structures

1.6 Vision and Values:

Our Vision
We aspire to be the global steel industry benchmark for Value Creation and Corporate
Citizenship.
Our Core Values
 Integrity - We must conduct our business fairly, with honesty and transparency. Everything
we do must stand the test of public scrutiny.
 Understanding- We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.
 Excellence - We must constantly strive to achieve the highest possible standards in our day-
to-day work and in the quality of the goods and services we provide.
 Unity - We must work cohesively with our colleagues across the group and with our
customers and partners around the world, building strong relationships based on tolerance,
understanding and mutual cooperation.
 Responsibility - We must continue to be responsible, sensitive to the countries, communities
and environments in which we work, always ensuring that what comes from the people goes
back to the people many times over.
What helps us make a difference-
Our People - By fostering teamwork, is nurturing talent, enhancing leadership capability and
acting with pace, pride and passion.
Our Offer - By becoming the supplier of choice, delivering premium products and services and
creating value for our customers.
Our Innovative Approach - By developing leading edge solutions in technology, processes and
products.
Our Conduct - By providing a safe workplace, respecting the environment, caring for our
communities and demonstrating high ethical standards.

1.7 Tata Code of Conduct:

Ethical business practices have been the key differentiator of the Tata group and Tata Steel since
the time of their inception. In the year 1998, the Tata group developed its first Code of Conduct
which was the formal articulation of its values and business principles. The comprehensive
document since then has been serving as the ethical roadmap for all Tata employees and Group
companies across the globe.
Tata Code of Conduct is a testament to Tata Steel's determination to help its employees in every
way to understand their duties and commitments towards shared values and principles. Over the
years, with Tata Steel's increasing global presence, the Tata Code of Conduct has been reviewed
to accommodate required and appropriate modifications.

1.8 Awards and Recognitions:

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 Tubes SBU recognized for innovation & technology at the Tata Motors vendor meet in
Macau in September 2013.
 These were the photographs taken at the "Construction Awards event organized by
Kattumana Thozhil". Kattumana Thozhil is a local language (Tamil) magazine which writes
about the construction industry. They have a readership of 25,000. The event was attended by
experts in the field and had a footfall of 700. One of the photographs has our RSM receiving
an award from the governor of Tamil Nadu. The award is given for bringing innovative
material into the market for launching the 355 grade steel tubes.
 2 RESEARCH METHODOLY

A research design means the arrangement of conditions for collection and analysis of data in a
fashion which aspires to combine relevance to the research purpose. As such the design consists
of an overview of what a company wants in terms of results and the analytical work on the
gathered data that will convert into useful findings. This study is a descriptive research and, by
and large, a field and desk research which involved the following procedures:
 Scanning through standard marketing textbooks to understand the theoretical background
for this research.
 Collection of company’s specific literature.
 Drafting a questionnaire to generate responses.
 Analysis of the data collected and illustrating it through graphs and thereby, interpreting
the results.
 Finally, forwarding certain recommendations, strategy and conclusions to the company.

2.1 Title of the Study

A Project report on understanding the market potential of Steel Hollow section thinner section
pipes through Retail segment.
2.1.1 Projects Covered

 A survey on go to marketing strategies for thinner steel hollow section pipes.

2.2 Scope of Study

This research aims at understanding the retail distribution model of thinner hollow section pipes
in biggest distribution centre of Karnataka, Bangalore.
2.3 Objective of the study

2.3.1Primary Objective:

 To find out the most preferred brand and reasons for the same in the Bangalore area.
 Understanding the various promotional mixes of different Companies.
 To provide with recommendations, suggestions and future strategies.

2.3.2 Secondary Objective:

 To identify fastest running sizes.

 To understand the logistical and distributional network.

2.4 Geographical area of study

The research was conducted at the biggest consumption centre in Karnataka, Bangalore.
Following are the major manufacturer of thinner hollow section pipes with their respective
manufacturing capacity (in and around the consumption centre of Bangalore):
 Appollo- 28,000 MT
 Cal Tubes- 5,000 MT
 KPTL- 2,000 MT
 Jindal Belari- 3,000 MT
 Rajdhani- 2,000 MT
 Purva- 3,000 MT
 Shankara- 8,000 MT
 Miscellaneous- 5,000 MT
*MT (Metric Tonnes)
2.5 Methods of Data Collection
Primary data was collected through personal survey method, questions were developed aimed at
target customers (dealers, manufacturers, distributors), and secondary data was collected through
brochures, websites etc.

2.6 Sources of Data Collection

The data collected for this study has provided the base for its analysis and interpretation. The
data collected during the survey has been used to draft charts, illustrate through graphs and thus
which at the end provides us with adequate interpretation to propose future strategies. In this
research, Primary data as well as Secondary data has been used.

2.6.1 Primary Sources of Data

• Meeting with the concerned dealers, manufacturers and distributors of various steel hollow
sections pipes.
• Telephonic conversations with the with the concerned person/decision maker of various
organizations.

2.6.2 Secondary Sources of Data

• Internet websites
• Newspapers and magazine articles
• Product brochure

2.7 Methodological Assumptions

 The data provided by various target customers that were surveyed is assumed to be true
and unbiased.
  The questions selected for the questionnaire are adequate to reflect the satisfaction and
awareness levels.
 The measurement of awareness and satisfaction level is the ultimate index for deciding
whether the company uses adequate marketing strategies and what future strategies can
be opted to for increasing market share.
 The sample set of the interview is assumed to be exhaustive and extrapolated to draw
inference on the total market

2.8 Plan of Analysis

1. For the purpose of analysis the data collection from question has been classified and
tabulated.
2. Percentages have been taken to get a better picture of the analysis.
3. The set of the analysis have been formed on the basis to draw inferences.
4. Conclusion and suggestion have been made on the inference and analysis drawn.

2.9 Limitations of the study

1. There was scope of biased response. Organizations could be biased regarding opinions
towards certain factors while answering the questionnaire.
2. The sample size is limited due to the time and cost factor.
3. The research was to be completed within a set deadline. It suffered from time
constraints. Evidently, more time would have resulted in more effectiveness of the
research.
4. Since the topic was very vast and difficult it was not possible to cover each and every
aspect of the topic in a short time period.
5. The study is limited to Bangalore city only.
6. Qualitative responses like the perception and preferences have been classified, the exact
measurement of such factor is not possible and hence responses are subjective.
 3. MARKET POTENTIAL ASSESSMENT OF TATA
STEEL
(TUBES SBU)

3.1 SWOT ANALYSIS

STRENGTHS:
 TATA Pipes are known for their superior quality. Hence the dealers tend to recommend
and sell it to customers and hence keep a good amount of stocks.
 TATA Pipes has a good brand image and good brand equity. It is a brand which sells by
name. Therefore dealers do not hesitant to stock it.
 TATA Pipes distribution network is most transparent among the steel pipes companies.
Anyone can view the distribution of Tata pipes in their brochures or in websites.
 Tata pipes works with its 3C’s which updates its product from time to time.

WEAKNESSES:
 The biggest weakness of Tata pipes distribution network is its distribution monopolistic
approach.
 A good number of retailers/ dealers complaint about the lack of transparency in dealings,
communication gaps, not clear about the various schemes available for them.
 Due its high price middle and lower class family can’t afford it.

OPPORTUNITY:
 The biggest opportunity for Tata pipes is in government supplies. With rapid
industrialization of the state, Tata pipes have immense potential in future.
 Another big opportunity for Tata pipes is the brand image and goodwill, which it carries.
No another company was found matching it in the city and it can be enchased if exploited
properly.
  Introduction of its new product line. Tata structura which is specifically used for
architectural purpose.

THREATS:
 The biggest threat for Tata pipes is tendency of customers to switch over to other brands
due to lack of transparency in price, offers and unavailability, lower prices of other
brands, greater margin and quick availability is a threat.
 Some dealers refused to stock Tata pipes for similar reasons.
 The upcoming PVC pipes which are in great demand now a day, and is cheap as
compared to steel pipes.
 Import from China - tubes and tubular components.

3.2 MICHAEL PORTER’S 5 FORCES ANALYSIS

Threat of new entrants

 Many big Manufacturers are in hard competition.
 It is very easy to set up new tube mill; hence threat of new entrants is always high.
Bargaining power of customer

 It’s a buyer market and given the aggressive competition and easy availability of
materials there is always pressure on prices and margins.

Bargaining power of suppliers

 All raw materials procured from within TATA STEEL only which limits the availability
of required raw material leading to high lead times in tubes dispatches and deliveries.

Threat of substitutes

 The steel pipes are generally used for the general engineering applications like making
grills, gates etc and also in roofing structures.
 There is no imminent threat of substitution for this product in market.

Competitive rivalry within an Industry

 Highly matured market with more than 10 competing brands.
 Equal footing, not much rivalry.
 However Tata’s main competitor is Apollo tube which is the single biggest sales brand by
volume and Shankara tubes which has vast distribution network across south India
market.

3.3 MARKETING MIX

Marketing is the process by which a product or service originates and is then priced, promoted,
and distributed to consumers. The principal marketing functions involve market research and
product development, design, and testing. It is the business activity of presenting products or
services in such a way as to make them desirable. One has to consider promotion that is balanced
with a suitable product
Available at a reasonable price, provided at all places to maximize the sale of one’s product.

4P’S OF MARKETING:

PRODUCT:
Steel hollow section thinner pipes. Market potential of about 60000 MT in Karnataka and widely
used in various general engineering applications. TATA STEEL Tubes division has developed
standard products in these domain promising standardized weight, good surface finish and exact
length which differentiates it with competition.

PRICE:
The product is placed as a premium product in the otherwise commoditized market. The
premium is justified on the basis of above product attributes and string brand recall for TATA
STEEL products.

PLACE:
The product is to be sold through retail channel across the state territory. The distribution model
is made to ensure reach at an appropriate taluka level to ensure maximum visibility to the
product.

PROMOTION:
Extensive ATL and BTL marketing campaigns to be planned time to time to enable high
visibility and sales for the product.
 4. MARKET RESEARCH AND DATA ANALYSIS

4.1 MARKET RESEARCH

Market Research attempts to understand why we buy a particular product or service. Consumers
are becoming more demanding and Markets for products and services are becoming increasingly
competitive. It is a very important component of business strategy. The term is commonly
interchanged with marketing research; however, expert practitioners may wish to draw a
distinction, in that marketing research is concerned specifically about marketing processes, while
market research is concerned specifically with markets.
Businesses at this stage require a sophisticated Marketing Intelligence. A Good Market research
is critical for businesses to study Markets and Marketing strategies for new products and
services. It is a key factor to maintain competitiveness over competitors. It provides important
information which helps us to identify and analyze the market need, market size and competition.
It also provides data needed to maintain Market Share and Sales Volume. Our choices of
products and even our attitudes to Political and Social issues, like Drunken Driving – are
evidences of successful Marketing Strategies.
The data used to conduct the following research are:
 Primary Data- The primary data is obtained from primary source i,e Direct interview,
Questionnaire, Telephonic conversation. In this report mainly primary data is used for
data interpretation.
 Secondary Data- The secondary data is obtained from brochures, book and online
websites etc.
To conduct a survey we created a database of organizations in and around Bangalore out of
which few organizations responded to our survey and remaining didn’t turn up.

No. of
organiztions
which did not
respond, 4

No. of
organizations
which
responded, 12

Out of the 16 prospects surveyed we had prospects from 3 different verticals.

Table:
Sl.no Vertical No. of prospects

1 Dealer 10

2 Manufacturer 1

3 Distributor 1
Graph:

Distributors, 1

Manufacturers, 1

Dealers, 10

4.2 MARKET SURVEY REPORT TATA STRUCTURA

THINNER STEEL HOLLOW SECTION PIPES

4.2.1 BRAND DISTRIBUTION

Table
Which brand are you selling?

Sl. no Particulars Nos. Percentage

1 Tata 4 12%
2 Jindal 9 22%
3 Appollo 15 37%
4 Nezone 5 13%
5 CAL tubes 5 13%
6 Bhusan 1 3%
Graph
Bhusan
3%

CAL Tata
Tubes 12%
13%

Nezone
13% Jindal
22%

Appollo
37%

Interpretation: A total of 6 different brands of steel hollow section pipes were dealt across 12
organizations. Apollo emerges as the market leader with 37% of the market share, followed by
Jindal and others acting as a market challengers. A Nezone and CAL tube rests on the third spot
but with only a market share of 13% followed by Bhusan with 3% market share.
4.2.2 STOCK KEEPING

Table
How much stock are you keeping?
Sl.no Particulars Nos. Percentage (%)
1 Less than 100MT 1 8%

2 100 to 500 MT 5 42%

3 600 to 1000 MT 4 34%

4 1100 to 1500 MT 1 8%
5 No stocking 1 8%
Total 12 100%
Graph
Less than
1100 to No stocking 100 MT
1500 MT 8% 8%
8%

600 to 1000 100 to 500

MT MT
34% 42%

Interpretation: Out of the 12 organizations surveyed 42% of the firm i.e. 5 of the total
organizations have 100 to 500 MT of stocking in their organization. 34% of organizations i.e. 4
out of 12 organizations have 600 to 1000 MT of stocking.
Whereas only one organization have 1100 to 1500 MT of stocking, less than 100 MT of stocking
and no stocking respectively.
 4.2.3 CURRENT RUNNING SIZES AND PRICES
MS ROUND TUBE
TATA
Thick 15 NB 20 NB 25 NB 32 NB 40 NB 50 NB 65 NB 80 100 125 150
NB NB NB NB
1.6MM 48850 48850 48850 48850 48850 48850 X X X X X

1.8MM X X X X X X X X X X X

2.0MM 47700 47700 47700 47700 47700 47700 47700 X X X X

2.2MM X X X X X X X X X X X

2.5MM 47100 47100 47100 47100 47100 47100 47100 47100 47100 X X

2.8MM X X X X X X X X X X X

3.2MM & above 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000

NON TATA
Thick 15 NB 20 NB 25 NB 32 NB 40 NB 50 NB 65 NB 80 100 125 150
NB NB NB NB
1.6MM 49500 47500 46700 46700 46500 46700 47200 X X X X

1.8MM 48500 46500 45700 45700 45500 45500 46500 46500 47000 47000 49500

2.0MM 48000 46000 45200 45200 45000 45000 45500 45500 46000 46000 48500
2.2MM 48000 46000 45200 45200 45000 45000 45500 45500 46000 46000 48500

2.5MM 48000 46000 44800 44800 44400 44700 45000 45000 45500 45500 48000

2.8MM 48000 46000 44800 44800 44400 44700 45000 45000 45500 45500 48000

3.2MM 48000 46000 44800 44800 44400 44400 45000 45000 45500 45500 48000
 MS SQUARE TUBE
TATA
Thick 20x20 25x25 32x32 40x40 50x50 60x60 72x72 80x80 91.5x91.5 100x100

1.6mm Rs.49400 Rs.49400 Rs.49400 Rs.49400 Rs.49400 x X x X X

1.8mm x x X x X x X x X X
2.0mm 48250 48250 48250 48250 48250 48250 X x X X
2.2mm x x X x X x X x X X
2.5mm 47700 47700 47700 47700 47700 47700 47700 47700 47700 47700
2.9mm 47700 47700 47700 47700 47700 47700 47700 47700 47700 47700
3.2&above 50000 50000 50000 50000 50000 50000 50000 50000 50000
NON TATA
THICK 20x20 25x25 30x30 38x38 48x48 60x60 72x72
1.6mm 48100 47300 47300 47100 47300 47800 X
1.8mm 47100 46300 46300 46100 46100 47100 47100
2.0mm 46600 45800 45800 45600 45600 46100 46100
2.2mm 47000 46200 46200 46000 46000 46500 46500

2.5mm 47000 45800 45800 45400 45700 46000 46000

2.8mm 47000 45800 45800 45400 45700 46000 46000

3.2mm 47000 45800 45800 45400 45400 46000 46000

 MS RECTANGULAR TUBE
TATA
Thick 21x21 26x26 40x20 50x25 60x40 80x40 96x48 122x61 145x82 172x92 200x100
1.6mm x X 49400 49400 49400 49400 49400 x X X X
1.8mm x X x x x x X x X X X
2.0mm x X 48250 48250 48250 48250 48250 x X X X
2.2mm x X x x x x X x X X X
2.5mm x X 47700 47700 47700 47700 47700 47700 X X X
2.9mm x X 47700 47700 47700 47700 47700 47700 47700 X X
3.2&above x X x 5000 5000 5000 5000 5000 5000 5000 51100
NON TATA
Thick 21x21 26x26 40x20 50x25 60x40 80x40 96x48 122x61 145x82 172x92 200x100
1.6mm 48100 47300 47300 47100 47300 47800 X x X X X
1.8mm 47100 46300 47300 46100 46100 47100 47100 x X X X
2.0mm 46600 45800 45800 45600 45600 46100 46100 x X X X
2.2mm 47000 46200 46200 46000 46000 46500 46500 x X X X
2.5mm 47000 45800 45800 45400 45700 46000 46000 x X X X
2.9mm 47000 45800 45800 45400 45700 46000 46000 x X X X
3.2 47000 45800 45800 45400 45400 46000 46000 x X X X

4.2.4 SCHEMES OFFERED

Table
What are the schemes offered by various companies?
Sl.no Particulars Nos. Percentage (%)

1 Gift coupons 1 8%
2 Gold coins 4 34%
3 Foreign tour tickets 4 33%

4 Quantity discounts 1 8%

5 No schemes 2 17%
Total 12 100%
 Graph
Gift coupons
No schemes
8%
17%
Quantity
discounts
8%
Gold coins
34%
Foreign tour
tickets
33%

Interpretation: The above pie chart reveals that 33% and 34% of organizations get foreign tour
tickets and gold/silver coins respectively as a scheme from different companies. Whereas 8% of
organizations gets quantity discounts and gift coupons respectively as a promotional scheme. No
schemes are being received by 17% of organizations.

4.2.5 MAJOR CATCHMENT AREA

Table
Sl.no Particulars Nos. Percentage (%)

1 Attend all cash customers 3 25%

2 Bangalore and surroundings 1 9%

3 Fabrication, projects and L&T( in L&T 1 8%

specifically Tata pipes)
4 bus bodies manufacturing, builders etc. 1 8%

5 Industrial, architectural, infrastructural 1 8%

6 Retailers 1 8%

7 No specified catchment area 4 34%

Total 12 100%
Graph

Attend all cash customers

Bangalore and surroundings

25%
34%

9% Fabrication, projects and L&T(

in L&T specifically Tata pipes)
8% 8% bus bodies manufacturing,
8% 8% builders etc.

Industrial, architectural,
infrastructural

Retailers

INTERPRETAION:
Out of 12 organizations approached 25%said that they attend all cash customers i.e. 3 out of 12.
Other catchment areas of organizations differs individually like Bangalore and surroundings,
fabrication & project, bus bodies manufacturing, builders, retailers, industrial, architectural and
infrastructural etc. Whereas 34% i.e. 4 out of 12 organizations have no specified catchment area
as such.
4.2.6 DELIVERY TYPE
Table
How do you make delivery to your customers?
Sl.no Particulars Nos. Percentage
1 Trucks 10 63%

2 Tempo 4 25%

3 Mini trucks 1 6%

4 Canters 1 6%

Graph
Canters
Mini trucks 6%
6%

Tempo
25%
Truck
63%

INTERPRETATION:
Out of all the organizations surveyed the maximum percentage of them i.e. 63% preferred
Truckloads for making the delivery happen to their customers. While 25% chose Tempo and the
remaining percentage of organizations preferred Mini trucks and Canters. However combinations
of the above mentioned vehicles was also found in certain cases.
4.2.7 PERIOD OF CREDIT

Table
How many days of credit do you extend on a regular basis?
Sl.no Particulars Nos. Percentage
1 0-15days 1 8%

2 16-30days 5 42%
3 31-45days 1 8%
4 46-60days 4 34%

5 More than 1 8%
60days
Total 12 100%

Graph
More than 0-15days
60days 8%
8%

46-60days
34% 16-30days
42%

31-45days
8%

INTERPRETATION:
42% of the organization i.e. 5 out of 12 organizations surveyed gives credit for 16-30days to
their customers, and 34% of organizations i.e. 4 out of 12 organization gives credit for 46-
60days. Whereas 8% of the organizations offers credit for 0-15days, 31-45days and more than
60days respectively.
4.2.8 PROMOTIONAL MATERIALS
Table

What are the promotional materials you see from

different companies?
Sl.no Particulars Nos. Percentage
1 Radio 2 25%
2 Posters 3 37%
3 Hoardings 2 25%
4 Print/Magazines 1 13%

Graph
Print/Magazi
es
13%
Radio
25%

Hoardings
25%

Posters
37%

INTERPRETATION:
Though it came out of the survey that this industry is based on demand, supply and availability,
so promotion is not required much. However From all the organizations surveyed it revealed that
37% of the companies use Posters, 25% of
Companies used Hoardings and radio respectively, while the rest 13% preferred Magazines as a
mean of promotions.
4.2.9 ULTIMATE SELLING STRATEGY

The companies on their part do promotional activities through advertisements. It also

encourages its dealers to do promotion and provides financial support to those expenditures.
Promotional activity normally carried out are, issue of pens, pads, diaries and putting up
hoardings. Also they share costs of any local or regional advertisements costs.
However on being asked about what strategies dealers/ distributors take up to enhance their sell,
they all concluded that this industry is based on demand, supply and availability, so promotion is
not required much on their end, hence offering best quality, required quantity and instant
availability is their ultimate selling strategy.
 5. A COMPARISON OF WEBSITES OF TATA
STRUCTURA AND ITS LEADING COMPETITORS

Attributes Tata Jindal Apollo Nezone CAL Shankara Bhusan

structura tube
Products &
specification
Clients/Projects

News &
updates
CSR Activities

E-brochures

Language
selection
Follow on
Social
networking
Display of
awards and
certification
Stock price

Enquiry/
feedback form
 6 INFERENCES

 Apollo emerges as the market leader with 37% of the market share, followed by Jindal
and others acting as a market challengers.
 Nezone and CAL tube rests on the third spot but with only a market share of 13%
followed by Bhusan with 2% market share.
 On an average 20% of stocking is kept by the various prospects.
 Structura Products are technologically advanced but at the same time they are expensive
with a high premium level as per the pricing table.
 Much marketing literature is not available in market for any brand in terms of hoardings,
flyers, posters, etc.
 7. RECOMENDATIONS

 The Internet has become the nerve centre for the global economy, hence the company
need to Increase online presence A well-designed website is not only an Internet identity
for your organization; it is an essential part of the success and future of your company in
the 21st Century. Additions for attributes like Clients/Projects, CSR Activities, Language
selection, follow on Social networking and display of stock prices should be addressed.
 Tata’s premium level is high so to sustain such high premium level there should be much
more brand awareness. In my view robust ATL marketing activities should be taken to
increase brand awareness and generate customer side demand.
 There are not many marketing campaigns runned by the company so specific market
campaign should be done.
 Stock should be made available by the company for all sizes to meet full product basket.
 While interviewing, many prospects revealed that not much schemes are being offered by
the company from past 1 year, hence in order to sustain in the market some beneficial and
attractive schemes can be offered.
 8. REFERNCES
1. TATA STRUCTURA STEEL HOLLOW SECTIONS- the Shape of Things to Come, A
world of benefits in structural tubes.
2. TATA STRUCTURA STEEL HOLLOW SECTIONS- the Shape of Things to Come,
Rectangular, Square and Circular hollow sections.
3. TATA STRUCTURA STEEL HOLLOW SECTIONS- the Shape of Things to Come,
Coated products from Tata steel.
4. http://www.tatastructura.com/home.aspx
5. http://www.aplapollo.com/index.html#
6. http://nezonesteel.com/index.php
7. http://www.shankarainfra.com/contact_us.php
8. http://www.jindal.com/msl/index.html
9. http://www.bhushan-group.org/index.asp
10. https://en.wikipedia.org/wiki/Main_Page
 9. ANNEXURE
QUESTIONNAIRE
I am Nishi Kumari, student of Birla Institute of Technology, Mesra. Doing my Summer
Internship from TATA STEEL LTD. (TUBES SBU). Kindly help me to fill the below mentioned
questionnaire from the best of your knowledge so that I can successfully complete my SIP.

Name of the organization

Name of the contact person

Contact No.

1) Are you a Manufacturer/ Distributor/ Dealer?

2) Which brands are you dealing with?

(a) Tata
(b) Jindal
(c) Nezone
(d) Cal tubes
(e) Bhusan

3) How much stock do you keep on an average?

(a) Less than 100MT
(b) 100 to 500 MT
(c) 600 to 1000 MT
(d)1100 to 1500 MT
(e) No stocking

4) What are the regular running sizes offered?

5) What are the schemes offered by various companies?
(a) Gift coupons
(b) Gold coins
(c) Foreign tour tickets
(d) Quantity discounts
(e) No schemes

6) How big is your catchment area?

7) How do you make delivery to your customers?

(a) Trucks
(b) Tempo
(c) Mini trucks
(d) Canters

8) How many days of credit do you extend on a regular basis?

(a) 0-15days
(b) 16-30days
(c) 31-45days
(d) 46-60days
(e) More than 60days

9) What are the promotional materials you see from different companies?
(a) Radio
(b) Posters
(c) Hoardings
(d) Print/Magazines

10) What is your ultimate selling strategy?

A PROJECT REPORT ON RETAIL MARKET STRATEGY FOR
TATA STRUCTURA AT TATA STEEL, BANGALORE

A project

Submitted in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By

NISHI KUMARI

( IMBA/40089/11 )

DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY

MESRA- 835215, RANCHI

 ABSTRACT

This Final report includes the work done during the time period of 6 weeks
of the Summer Internship Program. It consists of the detailed information of
the work done at TATA STEEL (Tubes SBU) and the steps followed to
achieve the objectives given by the company.

TATA STRUCTURA deals with manufacturing of welded pipes in the

country having an installed capacity of over 4, 50,000 MT per annum.
In this Project I had to do a market survey on go to marketing strategies for
thinner steel hollow section pipes. The next step involved meeting the
various dealers, manufacturers and distributors of steel hollow sections
pipes in Bangalore in order to fill the questionnaire from their responses,
generating leads, Collecting Data, Analyzing & interpreting the data.
In this way will be able to understand the buying pattern of the product,
potential customers of the company, the market share of the company &
their competitors.

The project assigned to me is “A Project report on Retail market

strategy for Tata Structura” My job at the company was to understand
the various brands available in market, their marketing efforts and the sales
potential. The report is generated through primary research by data
collection from various traders / dealers / distributors and manufacturers,
which will help to, which will help to identify and suggest strategies for
TATA STEEL.
Primary data have been collected through a structured questionnaire.
Simple, specific and direct questions to be marked were included in the
questionnaire to solicit information. Questions were designed in such a way
to maintain a high degree of objectivity and consistency. The questionnaire
contains both close ended and open ended questions. Also, certain
secondary data is collected by website, brochures etc.
Overall the project comprises of data collection, analysis, presentation,
suggestions to the problem and finally a strategy that could be suggested
accordingly.
 TABLE OF CONTENTS

Serial no. Topic Page no.

1. Company profile 1-10
1.1 Group profile 1
1.2Company profile 1
1.3 History of the company 2
1.4 Tata steel today 3
1.5 Tubes SBU 4
1.6 Vision and Values 8
1.7 Tata code of conduct 9
1.8 Awards and Recognitions 9
2. Research Methodology 11-14
2.1 Title of the study 11
2.2 Scope of the study 11
2.3 Objective of the study 12
2.4 Geographical area of study 12
2.5 Methods of Data Collection 13
2.6 Sources of Data Collection 13
2.7 Methodological Assumptions 13
2.8 Plan of analysis 14
2.9 Limitations of the study 14
3. Market potential assessment of Tata steel 15-18
( tubes sbu )
3.1 SWOT analysis 15
3.2 Michael porter’s 5 forces analysis 16
3.3 Marketing mix 17
4. Market research and data analysis 19-32
4.1 Market research 19
4.2 Market survey report Tata structura thinner 21-32
 steel hollow section pipes

5. A comparison of website of Tata structura and 33

its leading competitors
6. Inferences 34
7. Recommendations 35
8. References 36
9. Annexure 37-38