report on rural marketing strategy of sail

54
June 21, 2014 Final report on RSP rural dealership scheme  Page 1 ENHANCEMENT OF RSP (Rourkela Steel Plant) MARKET SHARE THROUGH RURAL MARKETING STUDY Summer project report submitted in partial fulfillment of the requirements for the post graduate diploma in management  By: Subhashree Mishra PG2013-076 SUPERVISORS: Mr. Shrikant Panda (Company guide) Prof. Chetan V Hiremath (Faculty guide) Mr. Akepati Prashanthi (Alumni guide) Kirloskar Institute for Advanced Management Studies, Harihar  2013-2015 

Upload: sushantimishra

Post on 02-Jun-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 1/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 2/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 3/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 3

TABLE OF CONTENT

Executive summary……………….………………………………………………………… 4-6

Introduction……………………….………………………………………………………….07

Objective………………………….…………………………………………………………..08

Concepts used in the rep ort……….……………………………………………………….09 -11

Brief about SAIL and RSP….……………………….…………………………………... ..12-14

Research methodology ... ………………………………………………………………..… 15-23

Tabulation and findings………………………………….…………………………………24 -38

Interpretation and conclusion…………………………………………………………… ....39-45

Recommendations …………………………………………………………………………….46

Limitations of this report……………………………………………………………………… .47

Scope for future improvements……………………………………………………………… ...47

Appendices …………………………………………………………………………………48 -50

Appendix A …………….…………………............................. ........... 48

Appendix B …...... ................................................................................ 49

App endix C …………………………………………………………...50

Appendix D ……………………………………………………………

Bibliography…………………………………………………………………… .……….…… ..51

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 4/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 4

EXECUTIVE SUMMARY

This report is prepared for Rourkela Steel Plant, Rourkela. This project is allabout developing an understanding about the steel market in Rourkela to provide RSP (RourkelaSteal Plant) with a blue print on the rural market segment and provide adequate information inorder to help the company for proper implementation of its new RURAL DEALERSHIPSCHEME (this scheme mainly aims at appointing a district dealer for collecting the orders of theentire rural dealers). It also aims at knowing rural steel traders’ expectations from the scheme , so

that the satisfaction level can be enhanced.

Currently CMO (Central Marketing Organization) department collects all theorders from the dealers of RSP through SAP (Software Application Program) as a result it is hardrather impossible for the rural steel traders to give their order. So in order to overcome thistechnological barrier for its new dealers i.e.; the rural dealers RSP is thinking about appointing adistrict dealer who will collect the orders of the entire rural dealers of Rourkela.

So this project requires making a survey in the steel market of Rourkela whichwill help determine the demand for RSP steel in the steel market of Rourkela, who the real

competitors are and what are the customers’ expect ations from RSP. This project requiresexplaining the rural dealers regarding the rural dealership scheme and collects information abouttheir views and expectation regarding the scheme and finally develops plans to help the companyimplement the scheme of appointing district dealer.

FINDINGS

A. High potential dealers The findings states that these High Potential Dealers have been lifting steel from RSP for

an average of 20years. 46% of these dealers lift steel from RSP due to its low price, 10% for quality, 7% for

brand name, 20% for both brand and low price & 17% for both quality and low price. The mode of payment to lift RSP steels is 100% advance payment.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 5/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 5

RSP sets the price within which the dealers have to sell the steels. 53% of the dealers’surveyed do not prefer selling at the price set by RSP.

27% of the dealers surveyed have no complaint against RSP whereas 73% have. Out ofthese 73%:- 55% complaint against quality, 18% against service and 27% for both qualityand service.

37% of the dealers surveyed sell steels to other rural traders and 63% to both other tradersand end users

Among all the companies these dealers deal with demand for RSP is high .

B. Targeted Rural Dealers(medium potential dealers) All the surveyed steel traders in this segment have been dealing in steel for an average of

20 years. 36% of these traders are not satisfied by the goods and services provided to them by the

High potential dealers of RSP whereas 64% are satisfied. Almost every trader do not lift steel directly from RSP due to technological problem

faced in ordering (as stated earlier RSP collects order through SAP), so it is not possiblefor these rural traders to use such an advanced technology. The other problem faced is the100% advance mode of payment

33% of these traders complained about quality, 22% against service and 45% against bothquality and service.

The other existing players in the target market i.e. the rural market are Bhushan, TATAand SR steels.

Coming to the RSP rural dealership scheme, 56% of the traders surveyed in this segmentare ready to connect with RSP as rural dealers as it will be convenient for them. 44% arenot sure for them it completely depends upon the benefits that will be provided to therural dealers from the scheme.

Expectations of the traders from this scheme are to be provided with quality steel and price and other commercial benefits.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 6/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 7/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 8/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 8

OBJECTIVE OF THE STUDY

Determining the demand for RSP (Rourkela Steel Plant, SAIL) steel products in thesteel market of Rourkela.

Here the target markets are the steel traders including. So I conducteda survey going to different areas in Rourkela (Udit Nagar, Ved Vyas, Ambagani… etc )targeting the steel dealers.

Identifying the real competitors of RSP in market segment .For this purpose I conducted a survey to estimate the demand for the

steels from other companies and for identifying what is good about that company and dothe dealers prefer other company’s product over RSP.

Determining whether it will be better implement the RURAL DEALERSHIPSCHEME.

I have clearly explained the rural dealers regarding this scheme proposed by RSP and made a market survey in order to determine whether this idea will be accepted/ preferred by the rural dealers and make planning for its properimplementation which will ultimately result in connecting more dealers to RSP i.e. more

penetration of RSP steel in the Rourkela steel market.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 9/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 9

CONCEPTS USED IN THIS REPORT

MARKETING CHANNEL CONCEPT

Marketing channels are the pipes that connect the organization/ company with the customers inthe target market through agents or dealers. The marketing channel of RSP is as follows:

Rourkela Steel Plant

High Potential Dealers

RURAL DEALERS

CONSUMER/USER (INDUSTRIAL /COMMERCIAL

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 10/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 10

With the help of this marketing channel of RSP contacts of the target market i.e. of the RuralDealers have been found out. These Rural Dealers who do not lift steel directly from RSP due tosome problem but lift the good from the high potential dealers of RSP, their problems can be

identified and solved and they can be converted into potential dealers of RSP. Thus this will helpin connecting more dealers and PENETRATION OF RSP IN THE RURAL MARKET.

SELECTIVE ATTENTION

It is been said that a person will respond to the stimuli to which he/she can relate his/her needsthe most. Thus, company’s brand name and the benefits under the rural dealership scheme that itis thinking of coming up was one of the major attention seekers.

BELOW THE LINE SALES PROMOTION

The whole model given by this report is based on BTL promotions. Either it is the rural dealersor the low potential dealers, the whole concept is to target those steel traders who are suspectsand by doing BTL promotions they can become prospects and further be changed into loyaldealers. This is important for the following reasons:

To provide awareness about RSP Rural Dealership Scheme. To provide more information about benefits that will be provided to the rural dealers

under this scheme. To provide such offers, so that, it can induce them to lift steel from RSP.

MULTIVARIATE ANALYSIS

This involves various statistical tools such as correlation and regression which will be performedwith the help of IBM SPSS. It provides a clear view about the data and provides us with areliable analysis on the basis of which we can make interpretations easily and accurately.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 11/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 11

BRIEF ABOUT SAIL AND RSP

STEEL AUTHORITY OF INDIA LIMITED

CHAIR MAN: Mr. Chandra Shekhar Verma.

Steel Authority Of India Limited is a leading steel making company in India set up on19 th January 1954.It is a fully integrated iron and steel maker, producing both basic and special steel fordomestic construction, engineering, power railway, automotive and defense industriesand for sale in export market.It is the largest steel producer in India with 13.4 million tons of crude steel in FY’13. It’s annual turnover in FY’13 – Rs. 49,350 crore.Major units:

Five integrated steel plants at BHLAI, DURGAPUR, BOKARO, ROURKELAand BURNPUR

Three special steel plants at SALEM, DURGAPUR, and BHADRAVATI. One Ferro alloy plant at CHANDRAPUR.

ROURKELA STEEL PLANT

Vision: “To be a respected world Class Corporation and the leader in Indian steel business inquality, productivity, profitability and customer satisfaction .”

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 12/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 12

Established in the mid fifties, it is the first integrated steel plant in Public sector in Indiaset up in German collaboration.The initial production limit of the plant was 1 million tons of Steel per annum which wassubsequently increased to 1.8 million.It proudly is the first plant in India to adopt modern technique in Steel production byincorporation LD Technology of steel making.It is also the 1 st steel plant under SAIL and the only one presently where 100% of theslabs rolled out are produced through a cost effective and quality centered ContinuousCasting Route .It is the only plant under SAIL that produces Silicon Steel for the power sector, highquality pipes for the Oil and Gas sector, Tin Plates for the packaging industry and SpecialPlates for the Defense.All the major production departments and some service departments of RSP are certified to ISO9001:2008 QMS With its reputation for continuous innovation and ever increasing desire for improvementand development has gifted RSP with an impressive track record.

Major Units in Rourkela Steel Plant

Raw materials play the most vital role in RSP’s production of 1.9 million tons(MT) of ste el perannum. The annual input requirement of the plant includes 2.3 MT of Coking Coal, 1.5 MT ofBoiler Coal, 1.8 MT of Iron Ore Lumps, 1.5 MT of Iron Ore Fines, 1.6 MT of Fluxes and othermaterials like Tin, Zinc, Aluminum and Ferro-alloys.

Ore Bedding and Blending Plant (write little description) Coke Oven Sintering Plant Blast Furnace Steel Melting Shops Plate Mill Hot Strip Mill

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 13/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 13

Cold Rolling Mill Electronic Tinning Line Galvanizing Lines

Silicon Steel Mills Pipe Plants Traffic & Raw Material Environmental Management Computerization Human Resource Development Department(HRDC) Central Power Training Institute(CPTI)

Product Mix Tones/AnnumPlate Mill Plates 2,99,000HR Plates 92,500HR Coils 3,98,000ERW Pipes 75,000SW Pipes 55,000CR Sheets & Coils 4,33,000Galvanized Sheets( GP& GC) 1,60,000Electrolytic Tin Plates 85,000Silicon Steel Sheets 73,500Total Saleable Steel 16,71,000

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 14/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 14

RESEARCH METHODOLOGY

First step for this report is to provide a blue print for conducting this research. The following blue print provides with the 6 steps that have been taken for the successful completion of the project.

Step 1 : For making this report it is needed much information like about the rural market, contacts of steel dealers, andcompetitors of RSP.

Step 6 : After doing all this finally collected data and its information should be analyzed. This is done by using SPSSand M-Excel.

Step 5 : Then required sample size is calculated which should be enough to represent the whole population if it is possible and the survey is conducted.

Step 2 : This report is classified into two parts exploratory and conclusive research. In exploratory the key objectiveis to conduct survey to determine the demand of RSP, who are the real competitors, what are the problems faced by thesteel traders and what are their expectation. This also requires explaining the traders i.e. the rural dealers about the ruraldealership scheme and collect information about their views and expectation from the scheme.

Step 4 : Questionnaire design is made according to the need.

Step 3 : In the conclusive side the object is to analyze the problems and provide a model to overcome it andalso to meet their expectations.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 15/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 15

PRIMARY DATA

This is the raw data which implies it is the data being collected for the first time. This involvessurveys through questionnaires, personal interviews etc. Thus survey was conducted personallyi.e. face-to-face survey, in order to get fresh and non-manipulated data so as get accurate andreliable results.

QUANTITATIVE RESEARCH

It gathers numerical data. This approach can be used to identify the size of market and how muchit might be worth to the business. Quantitative research often produces a lot of statistics. Thusmy research involves gathering responses from the target population in quantitative terms whichwill support statistical analysis. These are useful as an overview but the research cannot be done

by solely relying on it.

QUALITATIVE RESEARCH

It is used to gather views and attitudes of the people we survey. It is been performed with thehelp of informal conversations with the target population and by observing the market. Thus onthe basis of view of the steel traders analysis has been made.

SAMPLE SIZE

The sample size is not fixed as the number of dealers available is not definite. Survey is has beencarried out in different areas of Rourkela. In a span of 40 days I covered as many dealers as

possible. Around every steel market is covered and 88 samples have been collected. Thesesamples include those steel traders both who lift RSP steels and who do not lift.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 16/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 17/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 17

TABULATION AND FINDINGS

As stated earlier the analysis of this report has been classified into three categories of dealers, thehigh potential dealers, rural dealers & low potential dealers.

A. Tabulation and findings based on the data collected by the survey made on the basis ofquestionnaire prepared for the high potential dealers who lift steels direct from RSP .

TABULATIONS

Q5. For how many years have u been dealing with RSP?

Q6. Reason for dealing in RSP steel

46%

20%7%

17%

10%

Q6. Low price

Low price &Brand NameBrand Name

Quality &Low priceQuality

Average number of years comes out to be 20.033yrs

Low price 46%Quality 10%Brand name 7%Low price & brand name 20%

Quality & low price 17%

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 18/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 18

Q7. What is the mode of payment?

Q8. Is it preferable to sell by the price set by RSP?

100%

0%

Q7

Advance

Credit

47%

53%

Q8

Yes No

100 % Advance payment

Yes 47%No 53%

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 19/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 19

Q9. Demand for which steel is high in the market

Q10.Any complaint ever received against RSP steels

a. No b. Yes, complaint regarding what

0

5

10

15

20

25

Coils Sheets TMT bar Others

73%

27%

Q10.Yes No

55%18%

27%

Q10.Quality

Service

Quality &Service

Demand for coils and sheets are high in the steel market of Rourkela.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 20/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 20

Q11.Whom do you sell

a. Other steel traders (Rural dealers)

b. End users

c. Both

Q13.Which other company products you sell

Bhushan, Tata & SR steels are the other players existing in the market.

37%

63%

Q11

Other steeltraders

Both

0%

10%

20%

30%

40%

Bhushan & Tata Bhushan & SR Steels Tata, Bhushan & SRSteels

37% of the dealers sell to other steel traders and63% sell to both other steel traders & end users

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 21/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 22/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 22

FINDINGS

Within this segment the report tries to estimate the demand for which product ismore in the market and identifies who are the existing players and the demand for whichcompany is high and who are the real competitors of RSP and find the contacts of other dealerswho can be connected to RSP as its potential rural dealers.

The findings states that these High Potential Dealers have been lifting steel from RSP foran average of 20years. 46% of these dealers lift steel from RSP due to its low price, 10% forquality, 7% for brand name, 20% for both brand and low price & 17% for both quality

and low price. Thus, majority of these dealers deal in RSP due to low price. The mode ofpayment to lift RSP steels is 100% advance payment. RSP sets the price within which thedealers have to sell the steels. 53% of the dealers’ surveyed do not prefer selling at the priceset by RSP.

27% of the dealers surveyed have no complaint against RSP whereas 73% have. Out ofthese 73%:- 55% complaint against quality, 18% against service and 27% for both qualityand service.

37% of the dealers surveyed sell steels to other rural traders and 63% to both othertraders and end users. Contacts of these rural traders were taken from these dealers whocan be connected to RSP as potential rural dealers under the RSP rural dealership scheme.

Information regarding the existing players in the steel market of Rourkela was found.These are Bhushan Steel, Tata Steel and SR Steels. These company products are acceptedin the market due to their good quality and better service.

Among all the companies these dealers deal with demand for RSP is high with 43%preference due to its low pricing and brand name, followed by Bhushan steel with 30%,Tata with 17% ans SR steels with 10%.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 23/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 23

B. Tabulation and findings based on the data collected by the survey made on the basis ofquestionnaire prepared for the medium potential dealers who do not lift steels directlyfrom RSP but deal in RSP steels indirectly by purchasing it from the high potentialdealers. These dealers can are the target dealers as they can be converted into RSP ruraldealers through the RSP rural dealership scheme.

TABULATIONS

Q5.For how many years have you been dealing in steels?

Average number of years comes out to be 20.05 years

Q8.Are you satisfied with the goods and services provided by the dealers?

a. YES, reason …………………………………………….. b. NO, reason ……………………………………………....

36%

64%

Q8.

No

Yes

Yes 64%

No 36%

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 24/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 24

Q9.Why don’t you lift steel directly from RSP?

Most of these steel traders do not lift steel directly from RSP due to thetechnological problem in giving order and the 100% advance payment mode.

Q10.Any Complaint ever received against RSP

a. No b. Yes, complaint regarding what?

0% 10% 20% 30% 40% 50%

Technological Problem

Mode of payement

Both

R e a s o n

f o r n o t

l i f t i n g s t e e l

d i r e c t l y

f r o m R

S P

Q9.

100%

0%

Q10.

Yes No

33%

22%

45%

Q10Quality Service Both

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 25/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 25

Q11.Which other company products you sell?

The existing players in the rural market are Bhushan steels, Tata and SR Steels.

Q13.Will you deal with RSP if it appoints a district dealer for collecting the entire ruraldealers order

a. Yes b. Noc. May be

Q14.Reason for question no. 13

39%

28%

33%

Bhusan & Tata Bhushan & SR Steels Tata, Bhushan & SR Steels

56%

44%

Q13,14 . Yes - Convinient

May be - Depend on the benefits provided under the scheme

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 26/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 26

Under the rural dealership scheme of appointing a district dealer for taking the order of theentire rural dealers of RSP 56% of the rural traders agree to take the dealership of RSP andthe remaining 44% traders says it would depend on the benefits offered o the rural dealersunder the scheme.

Q15. What are your expectations from RSP regarding this rural dealership scheme?

Quality improvement 24%

Price & Other commercial benefits 30%

Quality improvement & Price benefits 46%

0% 20% 40% 60%

Quality improvement

Price & other commercial benifits

Quality improvement & Price benefits

E x p e c t a t i o n s

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 27/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 27

FINDINGS

In this segment the project aims at finding out the problems faced by the rural steel traders, arethey in favor of the rural dealer ship scheme, who are the real competitors in this segment andwhat the expectations of the traders from this scheme are.

Findings in this segment show that all the surveyed rural traders have been dealing in steelfor an average of 20 years. 36% of these traders are not satisfied by the goods and servicesprovided to them by the High potential dealers of RSP whereas 64% are satisfied.

Almost every trader do not lift steel directly from RSP due to technological problem facedin ordering (as stated earlier RSP collects order through SAP), so it is not possible for theserural traders to use such an advanced technology. The other problem faced is the 100%advance mode of payment

These rural traders who sell RSP steel by purchasing it from other dealers have complaintregarding quality and service. 33% of these traders complained about quality, 22% againstservice and 45% against both quality and service.

The finding shows that the companies which can give a tough competition to RSP in thetarget market i.e. the rural market are Bhushan, TATA and SR steels.

Now coming to the RSP rural dealership scheme, 56% of the traders surveyed in thissegment are ready to connect with RSP as rural dealers as it will be convenient for them.44% are not sure for them it completely depends upon the benefits that will be provided tothe rural dealers from the scheme.

Expectations of the traders from this scheme are to be provided with quality steel and priceand other commercial benefits.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 28/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 28

C. Tabulation and findings based on the data collected by the survey made on the basis ofquestionnaire prepared for the low potential dealers who do not deal in RSP steels.

TABULATIONS

Q5.For how many years have you been dealing in steels?

The average comes out to be 22.18 years

Q7.Have you ever in past dealt with RSP?

a. NO b. YES, why did you stop lifting steels from RSP?

. Q8.Can you name few companies you deal in?

64%

36%

Q7

Yes

No

27%

37%

36%

Q8Bhusan & Tata

Bhushan & SR Steels

Tata, Bhushan & SRSteels

YES 64%

NO 36%

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 29/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 30/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 31/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 32/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 33/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 33

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 10.163 a 8 .254

Likelihood Ratio 12.680 8 .123

Linear-by-Linear Association .003 1 .958

N of Valid Cases 30

a. 13 cells (86.7%) have expected count less than 5. The minimum expected count is .40.

In the above crosstab table Assym.Sig value is more than α = 0.05. So, null hypothesis is

accepted and alternate hypothesis is rejected. Thus the reason for which dealers lift steel fromRSP is proportionate to the demand of the companies.

As it has already been stated in findings that the reason for dealers lifting steel from RSP is itslow price-46%, quality-10%, Brand name-7%, Low price & Brand name-20% and Quality & low

price-17%. Overall if we see 83% go for low price. Thus it clearly indicates the Demand for RSPsteel is high for its low pricing and it should maintain this low pricing

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 34/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 34

DETERMINING THE REAL COMPETITORS OF RSP

High Potential Dealers

In this segment 34% of the dealers surveyed alongwith RSP also deal with Bhushan & Tata, 30% dealwith Tata, Bhushan & SR steels and the rest 36%deal with Bhushan & SR steels. Almost every dealerdeal with Bhushan, Tata and SR steel.

Targeted Rural Dealers (MediumPotential Dealers)

In this segment too along with RSP dealerslift steel from Bhushan, Tata and SR steels.

Low Potential Dealers

In this segment traders deal with Bhusha, Tataand SR steel.

Thus the other existing players in the market who are the real competitors of RSP are BhushanSteel, TATA steel and SR steels.

34%

36%

30%

Other company you deal with

Bhushan & Tata

Bhushan & SR Steels

Tata, Bhushan & SRSteels

39%

28%

33%

Bhusan & Tata

Bhushan & SR Steels

Tata, Bhushan & SRSteels

27%

37%

36%

Bhusan & Tata

Bhushan & SR Steels

Tata, Bhushan & SRSteels

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 35/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 35

IMPLEMENTATION OF RURAL DEALERSHIP SCHEME

A. Targeted Rural Dealers (Medium Potential Dealers)

WhydontyoudirectlyliftsteelfromRSP * WillyoudealwithRSPifitappointsadistrictdealerforcoll Crosstabulation

Count

WillyoudealwithRSPifitappointsadistrictd

ealerforcoll

Total

Yes May be

WhydontyoudirectlyliftsteelfromRSP

Technological Problem 14 1 15

Mode of Payment 3 6 9

Both 3 9 12

Total 20 16 36

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 15.008 a 2 .001

Likelihood Ratio 17.160 2 .000

Linear-by-Linear Association 12.822 1 .000

N of Valid Cases 36

a. 1 cells (16.7%) have expected count less than 5. The minimum expected count is 4.00.

It has been found out from above data that p- level is alm ost zero and it is less than α =0.005. Inthis case null hypothesis will be rejected and alternate hypothesis will be accepted. It means thereexists no relation between the reasons why dealers do not directly lift RSP steels and will thesedealers lift steel directly from RSP if RSP comes up with rural dealership scheme.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 36/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 36

As it has been already stated that these traders face technological problem in ordering steels fromRSP (RSP collects order from dealers through SAP), so if RSP appoints a district dealer who willcollect the orders of the entire rural dealers of Rourkela then it will be convenient for thesetraders to connect themselves with RSP as rural dealers.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 37/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 37

yourexpectationsfromRSPregardingthisruraldealershipsche * WillyoudealwithRSPifitappointsadistrictdealerforcoll

Crosstabulation

Count

WillyoudealwithRSPifitappointsadi

strictdealerforcoll

Total

Yes May be

yourexpectationsfromRSPregardin

gthisruraldealershipsche

Price & other commercial

benefits

0 4 4

Price & other commercial

benefits

5 4 9

Quality improvement 7 1 8

Quality improvement & Price

benefits

7 7 14

Quality improvement, Price

benefits

1 0 1

Total 20 16 36

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 9.281 a 4 .054

Likelihood Ratio 11.659 4 .020

N of Valid Cases 36

a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is .44.

It has been found out from above data that asymp.sig is al most .054 and it is greater than α=0.05.In that case null hypothesis will be accepted. It means the relation exists between whether these

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 38/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 38

dealers will deal with RSP if it comes up with rural dealership scheme and what are theirexpectations from this scheme.

The chart shows the expectations of these traders from RSP rural dealership scheme: - qualityimprovement, price and other commercial benefits. Thus RSP must provide them with price

benefits like credit payment, good service, quality etc.

B. Other steel dealers (Low Potential Dealers)

Correlations

Haveyoueverinpastde

altwithRSP

WillyoudealwithRSPifitcomesupwithrur

aldealershipscheme

HaveyoueverinpastdealtwithRSP

Pearson Correlation 1 -.266

Sig. (2-tailed) .231

N 22 22

WillyoudealwithRSPifitcomesupwit

hruraldealershipscheme

Pearson Correlation -.266 1

Sig. (2-tailed) .231

N 22 22

In the above correlation table p value is more than α = 0.05. So, null hypothesis is accepted andalternatel hypothesis is rejected which means there exist a negative relationship between dealerswho have dealt with RSP in the past and those who will connect with RSP as rural dealers.

24%

30%

46%

Epections from RSP rural dealershipscheme

Quality improvement

Price & other commercialbenifits

Quality improvement &Price benefits

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 39/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 39

ReasonfornotdealinginRSPthoughpresentinlocalmarket * WillyoudealwithRSPifitappointsadistrictdealerforcoll

Crosstabulation

Count

WillyoudealwithRSPifitappointsadistrictdealerforcoll T

ot

al

No Yes May be

ReasonfornotdealinginRSPthoughpre

sentinlocalmarket

Inferior quality & Service 0 0 5 5

Inferior quality 6 0 0 6

Technological Problem 0 4 0 4

Technological Problem &Mode of payement

0 2 5 7

Total6 6 10 2

2

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 35.619 a 6 .000

Likelihood Ratio 38.576 6 .000N of Valid Cases 22

a. 12 cells (100.0%) have expected count less than 5. The minimum expected count is 1.09.

In the above table Asym.Sig is less than α = 0.05. So, the alternate hypothesis is accepted and thenull hypothesis is rejected. Thus there exists no relationship between the reasons for which thetraders do not deal with RSP though the manufacturer itself is present in the local market andwhether they will connect themselves to RSP as dealers or not if RSP comes up with the ruraldealership scheme.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 40/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 40

yourexpectationsfromRSPregardingthisruraldealershipsche * WillyoudealwithRSPifitappointsadistrictdealerforcoll

Crosstabulation

Count

WillyoudealwithRSPifitappointsadistrictdealerforcoll Tot

alNo Yes May be

yourexpectationsfromRSPregardingth

isruraldealershipsche

Price & other commercial

benefits

1 0 1 2

Price & other commercial

benefits

1 3 3 7

Quality improvement 2 2 0 4

Quality improvement & Price

benefits

2 1 6 9

Total 6 6 10 22

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.170 a 6 .305

Likelihood Ratio 9.298 6 .157

N of Valid Cases22

a. 12 cells (100.0%) have expected count less than 5. The minimum expected count is .55.

Here the p- value is greater than α = 0.05, thus the null hypothesis is accepted and the alternatehypothesis is rejected. There exist a proportionate relation between the expectations of thesedealers from RSP rural dealership scheme and whether these dealers will deal with RSP as ruraldealers.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 41/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 42/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 42

SWOT ANALYSIS

SWOT analysis of RSP:-

Brand name and Low cost is the main strength of RSP. The weaknesses are low investment in promotion and inferior quality. So RSP should work on appointing a marketing team for buildingup strategies for its promotion and it also need to work on improving its quality as demanded bythe customers. Coming to the opportunity the target market i.e. the rural market is a greatopportunity for RSP. The rural steel traders can be converted into potential Rural Dealers ofRSP. The threat of RSP are the other existing players in the market like Bhushan Steel, TATAsteel, Vedanta etc. as they provide quality product and service.

Strength• Brand name• Low cost• Abundance of

quality manpower• Mature production base

Weakness• Low investment

in promotion• Quality

detoriation

Opportunity• Unexplored rural

market• Growing domestic

demand• Export market

penetration

Threat• China becoming

net exporter• Threats of

substitueCompetitors

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 43/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 44/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 44

LIMITATIONS OF THE STUDY

It is very tough to calculate sample size these sample size may or may not adequate forsweet shops, hotels, caterers & suppliers.

This report could not target all the users. End users consumers could not be targeted..

SCOPE FOR FUTURE IMPROVEMENTS

The limitations of this report should be overcome in future. Sample size should be chosen on some statistical parameters. Area for survey should not be chosen randomly but can be done on the basis of postal pin

codes or some other relevant parameter.

In future other local brands should also be targeted and surveyed in order to know their markettoo which will help in comparative analysis.

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 45/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 46/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 46

9. Demand for which steel is high

a. Coils b. Sheetsc. TMT bard. Wire roadse. Structural steelf. Others ………………………………………..

10. Any complaint ever received against RSP steels

a. NO

b. YES, complaint regarding what……………………………………………………..

11. Whom do you sell

a. Other steel traders (Rural dealers)

b. End users

c. Both

12. Can you name some traders who buy steel from you……………………………………………………………. ……………………………………………………………. …………………………………………………………….

13. Which other company products you sell……………………………………………………………….................................................................................................................................................................................................

14. What is good about the company mentioned in question 13?………………………………………………………………………………………………

15. Demand for which company product is high & why?………………………………………………………………………………………………………………………………………………………………………………………………

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 47/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 48/54

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 49/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 49

………………………………………………………………………………………………

2. Name of the person talked to………………………………………………………………………………………………

3. Ph. No.………………………………………………………………………………………………

4. Registered Address of the institute………………………………………………………………………………………………

5. For how many years have you been dealing in steels?………………………………………………………………………………………………

6. Do you lift RSP steels?………………………………………………………………………………………………

7. Have you ever in past dealt with RSP?

a. NO

b. YES, why did you stop lifting steels from RSP? .....................................................………………………………………………………………………………………

8. Can you name few companies you deal in?................................................................................................................................................................................................................................................................................................

9. What is good about the company/is mentioned in question 8?………………………………………………………………………………………………………………………………………………………………………………………………

10. Reason for not dealing in RSP though the manufacturer is present in local market?………………………………………………………………………………………………………………………………………………………………………………………………

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 50/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 50

11. Will you deal with RSP if it appoints a district dealer for collecting the entire ruraldealers order?

a. Yes

b. No

c. Can’t say

12. Reason for the same (question 11)………………………………………………………………………………………………………………………………………………………………………………………………

13. Your expectations from RSP regarding this rural dealership scheme?………………………………………………………………………………………………………………………………………………………………………………………………

Thank you for the time spared ……….

APPENDIX B

Contact details of the high potential dealers

Registered NAME Ph. No. AddressM/s S.S Mittal Steels 9437045014 Udit Nagar, near Rourkela Market

M/s Neha Steels 0661-2521988 Farm road, RourkelaM/s Nangram Agarwal 0661-2522221 Kundanmal, Totwa Complex, Sasan

M/s Gupta Steel Fabricators 0661-2507358 Brahmani Tarang, Ved Vyas

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 51/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 51

M/s Jagdish Prasad Garwal 0661-2660221 Opp: Pahadi Kanta, Ved VyasM/s Sachdeva Steels 0661-2660788 Brahmani Tarang, Ved Vyas

M/s Rourkela Steel Corpn. 0661-2510997 Brahmani Tarang, Ved Vyas

M/s Samtai Nath Enterprise(P) ltd. 0661-6990468 Brahmani Tarang, Ved VyasM/s Orissa Steel Corporation 0661-2400325 Brahmani Tarang, Ved VyasM/s Reliable Industries 0661-2615244 Brahmani Tarang, Ved Vyas

Chandrasteels & Metallices 9437045292 Brahmani Tarang, Ved VyasKedar Kadiya 9437049974 Brahmani Tarang, Ved Vyas

GSF Pipes 0661-2505720 Brahmani Tarang, Ved VyasSri Jagannath Engineers 9437044449 IDC Kalumga,Rourkela

Reliable Hi-tech & Infrastructures(P) ltd 9437960322 Panpos Road, near hero honda show roomReliable Sponge (P) ltd 9437042232 Dua Complex, Panposh Road

Shapoorji Pullonji & Co. ltd 9238491457 Near NIT buildingMc Nally Bharat Engineering Co. ltd 7894417422 IPTP Building, near NIT

Wheel Board & Co. Udit Nagar, near Rourkela MarketChetak Steel Corporation 9437116941 Udit Nagar, near Rourkela Market

Maa Mangala Traders 9861206272 Shop No A 256, Sector 19, Ispat MarketKrishna Iron & Steel Traders 9040314106 Near Uma Talkies, Bisra Road,

Ambika Iron & Steel PVT LTD 661-2523346 Bisra Road, Rourkela 4Arya Steel 9437961297 Near Hyundai Service, Ved Vyas,

Bhaskar Steel & Ferro Alloy Ltd 9230066128 Civil Township, Rourkela HOK V Steel 661-2522216 Rourkala, Market, Bisra Road,

M/S Nandini Steel Pvt Ltd 9437196709 Bisra Chowk, RourkelaPepson Steels Pvt Ltd 9438307794 Near Uma Talkies, Bisra Road,Santosh Steel & Co 9437116202 Vedvyas Chowk, Near Pahadi Bar

Rahmani Steel 9238857841 Main Road, Plant Site Road

APPENDIX C

Contact details of Rural Traders

Registered Name Ph No. AddressShiva Steel Centre 9438515116 Agrasen Bhawan, Gandhi Road

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 52/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 52

Ashok Ispat Udyog 9437116941 Uditnagar, near Rourkela marketSri Badrinarayan Steel 9238980201 Porohit Market Complex, Main Road

Bajrang Steel 661-6539959 Bishra Chowk, traffic road

Sourav Steels 9437056720 Pamposh Road, RourkrlaSarita Steels 9841909225 Pamposh Road, RourkrlaJagannath Steel Traders 661-2615961 Bishra Chowk, traffic road

Shree Durga Steels 661-2660144 Bishra Chowk, traffic roadBeepti Steels 661-2501713 Pamposh Road, Rourkrla

Puspanjali Steels 661-2660166 Bishra Chowk, traffic roadRajnikanth Bros. 661-2665021 Bishra Chowk, traffic road

Kailash Steels 9437040369 Opposite Pahadi Weigh Bridge, Ved VyasMAA Gouri Devi 9040157803 Brahmani Tarang, Ved VyasTirupati Traders 8093131332 Bishra Chowk, traffic road

B K Steel 9437144861 Shiv Kali Mandir, Rourkela 13Shree Shyam Dealers 9437049191 Uditnagar, near Rourkela market

Sahoo Steels 9437048410 Brahmani Tarang, Ved VyasSushree Steels 611-3209990 Brahmani Tarang, Ved VyasSubham Steels 661-2482187 Bishra Chowk, traffic road

Garg Steels 9861056872 Brahmani Tarang, Ved VyasSree Ganesh Steels 661-2470496 IDC Kalumga,Rourkela

Suyash Steel Dealers 661-2511090 Panpos Road, near hero honda show roomPragati Steels 661-2661159 Opposite Pahadi Weigh Bridge, Ved Vyas

RoadSurjeet Iron & Steel Co 9937486047 Near NIT building

Rudra Steels 661-2501008 IPTP Building, near NITPrajapati Steel 9861139991 Shop No. 84 Vss Market, Chhend ColonyAbinash Steel 9937108456 D Block Market, Koyel Nagar, Rourkela

K.C Steels & Co 661-24626050 Near Uma Talkies, Bisra RoadBalaji Steels 966772307 Bisra Road, Rourkela 4Patra Steels 9937604452 Near Hyundai Service, Ved Vyas

Aparupa Steels 661-2511151 Civil Township, Rourkela - 769001Joy Steels 611-2560902 Rourkala, Market, Bisra Road,Arun Steel 9437633333 Bisra Chowk, Rourkela

Sampark Traders 611-2552549 Near Uma Talkies, Bisra Road

Lipika Steels 661-2661333 Vedvyas Chowk, Near Pahadi BarPanda Steels 9432398560 Main Road, Plant Site Road

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 53/54

June 21, 2014 Final report on RSP rural dealership scheme

Page 53

APPENDIX D

Contact details of other steel traders

BIBLIOGRAPHY

Registered NAME Ph. No. AddressOmkar Steels (P) ltd 9937238002 Brahmani Tarang, Ved Vyas

MAA Shakubari Sponge Pvt Ltd 661-3294365 Civil Township, Rourkela Nixon Steel & Power Ltd 661-2665016 Civil Township, Rourkela

Dayal Steel Center 9437199008 Rourkela Kutchery RoadSteel Plaza 9040128358 Rourkala Market, Main Road

Singhal Trader 9437157220 Near Shanti Memorial Hospital, UditnagarShiv Shakti Traders 9861010070 Opposite Pahadi Weigh Bridge, Ved Vyas

GAJANAND STEEL 661-2470496 Opposite Pahadi Weigh Bridge, Ved VyasSri Ram Steels Pvt. Ltd. 661-2500243 Brahmani Tarang, Ved Vyas

Bhawani Traders 661-2562241 Shop No-5, Jeet Complex Rangoli ChowkM/S. Sachdeva Steels 661-2660788 Brahmani Tarang, Ved VyasGAJANAND STEEL 9937721517 Opposite Pahadi Weigh Bridge, Ved VyasJAY Iron & Steels Ltd 9337402212 Opposite Pahadi Weigh Bridge, Ved Vyas

Berlia Steels 9437048105 Opposite Pahadi Weigh Bridge, Ved VyasJAI Balaji Jyoti Steels LTD 661-2450162 Tainsar, Near Birkera, RourkelaM. M. Dutta Steels (P) ltd 9937495408 Main Market Road, Fertilizer Township

Kalinga Steels 9437961605 ITI Chowk, Rourkela, Panposh RoadDua & Dua Traders 9938104689 ITI Chowk, Rourkela, Panposh Road

Ajhim Steels 9040424013 ITI Chowk, Rourkela, Panposh RoadAmbaly Steels 611-2563430 ITI Chowk, Rourkela, Panposh RoadAnand Steels 661-2522733 Gurudwara Road, Rourkela

Dadibamana Steel Traders 661-2560129 Gurudwara Road, Rourkela

8/11/2019 report on rural marketing strategy of SAIL

http://slidepdf.com/reader/full/report-on-rural-marketing-strategy-of-sail 54/54

June 21, 2014 Final report on RSP rural dealership scheme

A. BOOKS

1. Principles of marketing , 12 th Edition, Pearson Publishers, by Philips Kotler

2. Research Methodology Methods & Techniques, 2nd

Edition, C.R. Kothari, NewAge International Publishers.

3. Business Research Methods, 10 th Edition, Donald .Cooper, Pamela S. Schindler,McGraw-Hill Higher Education 2008.

B. Internet linkswww.sail.co.in http://www.quickmba.com/marketing/plan/

http://sociology.about.com/od/Research/a/sampling-designs.htm