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SUBMITTED TO: Prof. 

SUBMITTED BY
À Tabassum N. 34
À Nikhil Pokle 36
À Talhah Patel 40
À Abdul K. Shaikh 46
Introduction to TATA STEEL
@Tata Steel was established in 1907 by J N Tata at Jamshedpur in Bihar, India.

@The company commenced production in 1911 with a capacity of 0.1mn tonne of

mild steel.

@By 1958, its capacity had increased to 2 mn tonnes. Over the years, Tata Steel

acquired many companies.

@In 1973, it acquired some flux mines and collieries near Jharia, West Bokaro.

@In 1983, it acquired the Indian Tube Co. Ltd., a manufacturer of seamless and

welded tubes.
@In 1991, it acquired the ferro-chrome unit of OMC Alloys Ltd near Bamnipal in

Orissa.

@ By April 2001, Tata Steel was the world's lowest-cost producer of steel.

@Today, Tata Steel produces a wide range of products including hot rolled/cold rolled

(HR/CR) coils and sheets, tubes, construction bars, forging quality steel, rods,

structural, strips and bearings. It also manufactures material handling equipment,

ferro alloys and other minerals, software for process controls, and provides cargo-

handling services.
Branding Steel
@For initiating the branding strategies, R.Gopalakrishnan, executive director, TATA

SONS, who had experience in branding in Hindustan Lever.

@To get the branding exercise right, it is essential to acquire strong customer focus.

For the same they initiated internal campaigns emphasizing customer focus and

service.

@The company segregated the µmarket development¶, µorder generation¶ and µorder

fulfillment¶ functions.

These 3 functions were computerized, enabling the company to reduce its

customer response time significantly.


@ Introduced µcustomer accounts managers¶ who are empowered to take decisions

relating to customer grievances.

@ Also improved customer interaction in order to learn what customers wanted and

whether the company was meeting their expectations.

@ In April 2000, the company¶s CRM plant was commissioned and coinciding

launched its first branding product --- TATA SHAKTEE GC

@ Later other brands like TATA TISCON REBARS (Dec 2000), TATA STEELIUM

(Feb 2003)
Tata 6teel Brands
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Generic Brands Tata Bearings, Tata Pipes, Tata Agric

Pr dt Brands Tata 6haktee, Tata Tis n, Tata 6teeli


6 rce : .tatasteel.c 
Benefits of Branding

!  !  &!' !$ !

"   #  $ "  %

   
%

FY 01 5 11 7

FY 02 6 15 9

FY 03 8 19 12
Source : MD¶s Presentation to Press, April 2003, TATA Steel
Future Prospects
@Tata Steel has announced that the company would be focusing on co-branding

initiatives with its high-end customers such as Telco, Ashok Leyland

@Focus on improving its product mix, by introducing high end products

@Focus on OEM and construction sector

@Interested in branding all its Flat Products and selling them through retail

distributors

@Undertake extensive market research and channel management initiatives along

with branding activities


Expected Profits
  
 
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Case Study Q & A
Q 1. Discuss the reasons for TATA Steel¶s decision to embark on aggressively
marketing and branding of their products ?

@ It would help stabilize the flow of revenues even during business downturns.

e.g. In late 1990¶s the Indian Steel Industry was experiencing a glut, and this

affected the profit margins of the players.

@ It would make premium pricing possible

@ It will help increase the profitability of the company

@ Using the generic name of µTata¶, the association the customers would confuse

identity of various products.


@ There is not much differentiation factors available for steel industries for B2B,

but in B2C branding would pave a way for easy customer acquisition.

@ Capturing the mindshare of customers in the retail segment, with customers

starting to ask for TATA Steel products by name.


Q 2. Tata Steel wanted to de-commoditize steel and make it less vulnerable to
swings in the business cycle. Do you think the company¶s branding initiatives
would help them achieve these objectives. Explain with reasons ?

@Commenting on gains of branding H.M. Nerurkar ± VP (flat products) TATA

Steel said ³We are getting Rs 1000 to Rs 2500 premium per tonne´

@In 2003, TATA Steel declared a turn over of Rs 98.44 bn with profit after tax of

Rs 10.12 bn, it was the most profitable steel company in India.

@The company¶s success was attributed to its focus on operational excellence and

its branding initiatives.

@Though the steel industries in India was experiencing slow growth, TATA Steel

was able to post high profits because of its strong B2B and B2C sales.
!  !  &!' !$ !

"   #  $ "  %

   
%

FY 01 5 11 7

FY 02 6 15 9

FY 03 8 19 12

Source : MD¶s Presentation to Press, April 2003, TATA Steel


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