In the early 1900s, when the Tatas were laying the foundations for a nascent Steel Industry in India, a sceptic British bureaucrat Sir Frederick Upcott, then Chairman, Railway Board of India said: “Do you mean to say that the Tatas propose to make steel rails up to British specification? Why, I will undertake to eat every pound of rail they succeed in making…”
The then Chairman of Tata Sons, Sir Dorabji Tata retorted: “If Sir Upcott were to carry out his undertaking, he would be left with quite a bit of indigestion…”
Tata Steel acquires Corus – formerly British Steel and once the Crowning Glory of British Industrialization
Welcome to the New millennium's New order of
Globalized suite of Major facilities
Products • Tata Steel's products include: – – – – – – –
hot and cold rolled coils and sheets galvanised sheets tubes, wire rods construction re-bars rings Bearings
• The products are targeted at automobiles, white goods, construction and infrastructure markets.
Brands • In an effort to de-commoditize steel, the company has introduced brands like : – Tata Wiron (wire rods for farming and fencing segment) – Tata Steelium (cold rolled steel for auto ancillaries and the general engineering segments) – Tata Shaktee (corrugated galvanized sheets for rural house builder segments) – Tata Tiscon (re-bars for individual house-builder semi-urban segment) – Tata Pipes (pipes for individual house builder and farming segments) – Tata Bearings (bearings for original equipment manufacturer and replacement market) – Tata Agrico (agricultural equipment for farming and construction segment).
Guiding Principle followed by Tata
Establishing a B2B Brand- Branding steel based on customer focus • Establishing B2B brands encompasses creating trust, confidence and comfort for all partners in the buying process • Even commodities can be branded- This was successfully demonstrated by Tata Steel • Tata Steel successfully branded its products and moved to high value added products (through internal Marketing focused on customers).
Distribution Channels
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Selling Channels– Dealer Sale – Consignment Sale – Direct Sale
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Key Automative Customers:
Competitor Competition
Pricing of Tata Tiscon • Billing – Rs. 29,000 pmt • This includes– Primary Freight – VAT – Handling Charge – Sales Promotion Discount – Onward Freight – Advertisement Expenses – Excise Tax
Types of Discounts given • • • • • •
Cash Discount Quantity Discount Special Discount Administration Annual Monthly Credit
e-procurement
e-sales
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MetalJunction is a unit of mjunction services ltd that focuses on streamlining the selling processes for steel manufacturers and allied industries by applying innovative selling strategies, buyer discovery processes and utilizing tools like eAuctions.
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Metaljunction is now the largest e-marketplace for steel in the world, having sold over 4 million tonnes of steel for its clients and currently selling at an average rate of 150,000 tonnes per month. The buyer community of 5400 plus buyers comprising traders, fabricators, re-rollers and end-users have placed their confidence on metaljunction because of the operational efficiency, transparency and equal access that the platform provides. Metaljunction's clients have experienced significant benefits on migrating to online selling. Immediately on migration, from their traditional sale process, to the metaljunction online process, their price realizations increased by up to 23%.
• India’s first organized steel retail store. – To catalyse steel consumption in emerging mass markets of India – To build downstream retailing excitement for steel as a category
• A unique shopping experience • A one stop shop
Tata Steels 3C model for excellence
Retail Value Management • Tata Steel has redefined steel retailing in the country through its RVM initiative. • Has brought order and discipline into the hitherto disorganized retail steel business.
TBEM
Sales Management Training
Approach: Retail Management Control System Forecast
Plan
Control
Report
Review
Segment Mgr Monthly Segment Mgr Score Card Review Weekly Score Segment Mgr Card Daily Score Review Card Retail Mgr Monthly Review Score Card Retail Mgr Review Weekly Score Retail Mgr Card Daily Score Card Review
Review
Segment Manager
Segment Sales Target
Manager Retail
Territory Sales Target
Retail Manager Contact Plan Direct Sales input
Distributor
Distributor Sales Target
Review
Distributor Coverage Target
Review Distributor Daily Score Card
DSM Target
Review
DSM Monthly Score Card
DSM Weekly Score Card
Market Intelligence Retail Mgr
DSM Daily Score Card
Contact Plan
Customer / Retail Card
Distributor Quarterly ROI Analysis
Review
Review
Route plan
DSM Retailer / Customer Sales Plan
Distributor Weekly Score Card
Distributor Monthly Score Card
Marketing Department
Marketing Ride with
Retail Mgr Ride with
“Tata Steel believes that the primary purpose of a business is to improve the quality of life of people. Tata Steel will volunteer its resources, to the extent it can reasonably afford, to sustain and improve a healthy and prosperous environment and to improve the quality of life of the people in the areas in which it operates.”
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Each member of Tata Steel Parivar will be given a smart identity card, which would contain all relevant information about the family members and would help to track each displaced family
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The members of the displaced families would be tracked at regular intervals for a period of five years to ensure proper rehabilitation and improvement in the quality of their lives.
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The team apart from ensuring that each member of the ‘Parivar’ receives its due compensation and Rehabilitation and Resettlement benefits, is focusing on following activities for ushering in a new sunshine to the lives of each member of Tata Steel Parivar
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Increase in income levels of the family
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Improvement in their quality of life
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Strengthening the cultural fibre of the community
We could have just built a Steel Plant Instead , we built Tata Steel Parivar
THANK YOU