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STRATEGIC MARKETINGSTRATEGIC MARKETING

Rajkumar Sharma AVP- MarketingRajkumar Sharma AVP- Marketing

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WHAT IS MARKETING

• Marketing is an organizational function and a

set of processes for creating, communicating,and delivering value to customers and formanaging customer relationships in waysthat benefit the organization and its

stakeholders

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WHAT IS MARKETING

• Integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return .

• The management process responsible for identifying, anticipating and satisfying customer requirements profitably.

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STRATEGIC MARKETING

• Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe.

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• Must have a clearly defined market • Must have a good match between

corporate strengths and market needs• Must have significant positive

differentiation in the key success factors of the business.

• Should lead to a sustainable competitive advantage.

A Viable Marketing Strategy

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Strategic Marketing

•Strategic Marketing requires–Detailed understanding of market

needs, and

–Proactive use of competitive intelligence at the corporate as well as SBU’s levels.

•Strategic Marketing –Focuses on what the firm do best at the

SBU level

–To secure and maintain a sustainable competitive advantage

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Inputs for Developing Marketing StrategyGlobal ScenarioGlobal Economic Scenario:• Global Economy slated to improve = 3.9%• Advanced World slated to revive = 2.1%• Emg. World (RoW) slated to survive = 6.0% World Trade - Goods / Services • Global Trade slated to improve 5.8% • Advnaced World Exp. slated to revive 5.9%• RoW Exp. slated to survive 5.4%

JSW Marketing Strategy : INPUTS

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Inputs for Developing Marketing StrategyCommodity Price-Lines • Coking-Coal = $-225-250 FOB from $-128-129

FOB • Iron-Ore = $-82-87 FOB pmt from $-57-62 FOB Steel-Demand :• World = 1,206-MnT @ +9.2% from est. 1,104-

MnT.• Advanced World = 280-MnT @ +15% from est.

243-MnT.• Emerging World = 926-MnT @ +7.6% from

est. 861-MnT

JSW Marketing Strategy : INPUTS

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Inputs for Developing Marketing Strategy Domestic Scenario 2010-11 Est• GDP-Growth : 8.2% v/s 7.2% Y-o-Y• Agr.=+5%; Ind.=8.7%; Serv.=8.8%• GDP = $-1,557-Bn v/s $-1,312-Bn • Investment. : GDP = 33.7% v/s 33% Domestic Steel Consumption • Prod. = 48.8-MnT(+3.3%)• Imp. = 5.9-MnT (+18.5%) ; • Exp. = 2.4-MnT (-34%)• Consump. = 45.9-MnT (+7.9%)

JSW Marketing Strategy : INPUTS

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Indian Steel Scenario Increased Competition . • Increasing Capacity additions.( eg JSW Steel,

TATA Steel, Bhushans new plant etc )• India entry plans from Major global ( Arcilor

Mittal at Bellary , Jharkhand: POSCO at Orissa, XIndia at Hospet etc).

• Increased Imports ( Lower Tariff rates , Indian Rupee getting appreciated making imports cheaper)

All the above factors are leading to Oversupply and Increased Competition.

JSW Marketing Strategy : INPUTS

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Customer Demands• Focussed marketing : Customization of

Products( Changing face of Steel from Commodity to Branding to Customized products).

• Complete Solution Provider : Having all the products in the Basket so that the customer need not go to another producer for catering small requirements( eg Meeting Wheels India reqt of HRC from Vijaynagar, Plate reqt from Vasind ).

• Price Competiveness : Prices at par with International supplies.

• Timely Deliveries ( Auto Companies requires JIT supplies, Project people want timely deliveries at there construction sites etc)

JSW Marketing Strategy : INPUTS

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Maximize Value-Addition• Expand Outsourcing opportunities for maximising

Value-Addition.• Develop Service Centres near Plant.• Tie up with Service Centres for Local Supplies to Auto

OEMs ( eg Ramanashekhar at Chennai, Magnum at New Dehli / Faridabad etc.).

• Develop value added products like, dual phase, TRIP Steel, IF Steel, Coated Products.

• Enhance Value Chain : Setting up Downstream units ( CRM Facility at Tngl, Galvalume at Downstream facility, United Galva for galvanising etc).

Marketing Strategy :

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Timely Deliveries.• Focus on Stock yard deliveries ( which will not only dec

the lead time but also increase the product mix availability to the customer).

• Develop strong Distribution network Leverage growing demand opportunities from Semi-

Urban / Rural India• Increasing Market penetration thru JSW Shoppe.• Focus on Branding.• Develop Dealer network. Substitute Imports :• Develop strong and sustainable OEM / Project &

Distribution base for expanding production.• Volume Expansion

Marketing Strategy :

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THANK YOU