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A report submitted towards the partial fulfillment of the requirements of the two years Full-time Post Graduate Diploma in Management.
Submitted by: UJJAL BANERJEE Post Graduate Diploma in Management (Marketing) Roll No: 2K91/M/62 Session: 2009-2011
STUDENTS DECLARATION
Is my original work and the same has not been submitted for the Award of any other Degree/ diploma/ fellowship or other similar titles or prizes.
ACKNOWLEDGEMENT
I am very thankful to my Institute Asia-Pacific Institute of Management, New Delhi for having prescribed an Internship and a Project as a part of the two year Post Graduate Diploma in Management (AICTE approved) full time course. I would also like to convey my sincere gratitude to SAIL-ISP, Burnpur and all the people there for having given me the opportunity to be a part of their esteemed organization. I also thank all the other people who helped make me to this project possible. I would specially like to thank my Project Guide Mr. M.K.A. Khan (DGM-Marketing) of SAIL-ISP, and my faculty guide of my institute, Dr. Mamta Kumari for their valuable guidance, time and patience, without whom, this project would not have been a success. I would also like to thank AGM (HRD) Mr.A.K.Mondal, Training Officer Mr. S. Roychowdhury & AGM of (Sales & Order) Mr. A.K.Das of ISP, Burnpur, for giving me the chance in this project & for their valuable suggestions and insights.
And I would also like to thank Mr. D.K. Banerjee, (Director) of Asiapacific Institute of Management, New Delhi for continuous guidance and support. And finally, I am thankful to all my friends, my family and all the staff members of ISP, Burnpur, for cooperating with me at every stage of the project. They acted as a continuous source of inspiration and motivated me throughout the duration of the project by helping me a lot in completing this project.
Executive Summary
SAIL, Steel Authority of India Ltd., a Maharatna Company is a Public Sector Unit is a real Steel Giant in India. It has five integrated steel plants within it, among which one is the IISCO Steel Plant, at Burnpur. IISCO Steel Plant was amalgamated with SAIL in February, 2006. The plant is set to undergo-modernization-cum capacity expansion through which its hot metal production capacity will be raised to 2.5MT by 2011-12. The modernization programme is going on with full pace and is likely to commence from 2012 after which its production capacity will be double with lesser number of man power.
In ISP-SAIL, I was assigned the task to find out the different marketing strategies which is being used in this company and also the marketing mix of ISP-SAIL. In this report there is the whole marketing procedure which is being followed. All the prime steel products are being marketed directly by Central Marketing Organization, and the Secondary and by-products are being marketed by the respective plants producing it.
I was given the role of observer by ISP Burnpur. My role was to collect information about the strategies used by ISP to market its secondary products and also to understand the Marketing Mix of ISP Burnpur, as a Management Trainee. From this project, I have got an amazing live experience. As I am a fresh Graduate, so I do not have any type of experience in a corporate work field. So, when I went to different types of departments in ISP for asking about their way of conducting their process, I was enjoying. I was quite surprised because of their friendly behavior. Moreover during my plant visit programme, I was really thrilled to see the different methodologies that are used to produce the material which is a necessary product in every bodies life and also for a growing nation, i:e STEEL.
I am also really greatful to work with many officers in the Marketing department, where I got my first practical knowledge in the field of marketing. I was really excited to apply my theoretical knowledge in practicality.
In the report, I have prepared two questionnaire formats, one for the executive staff members and the other for the potential customers of ISP-SAIL. All the details of interpretation have being discussed in the report. The actual results came out after preparation of the questionnaires and really it helped in sketching out a full detailed picture of the whole programme going in the company.
Subject
Brief history of SAIL-IISCO Steel Plant General Overview of SAIL-ISP Functional Departments Facilities at ISP-SAIL Other Facilities Other Supporting Units
Topic No.
1 2 3 3A 3B 3C 4 4A 4B 5 6 6A 6B 6C 6D 6E 6F 6G 6H 6I 7 7A 7B 7C
Page No.
10 11 13 14 23 23 25 26 27 33 40 41 42 43 43 44 47 49 50 52 53 54 55 56
4.
5. 6.
Marketing Mix of SAIL-ISP Marketing Setup of ISP-SAIL Before & After Merger Organizational Structure Marketing of Secondary Products Sales Procedure Marketing Process Central Marketing Organization Procedure of Order Procurement Distribution Network Handling Customer Complaints
7.
Discussion on Training Contribution Research design & Methodology Data Collection Methods Question for Understanding Marketing Strategies Analysis of data from questionnaire prepared for customers Summary Findings
7D
58
7E 7F
62 67
8A 8B 8C 9 10 11
68 68 69 70 71 72
10
11
Quality Policy:
IISCO is a quality company committed to build and sustain itself as an organization which is customer oriented, innovative and where excellence is achieved in every function through continual improvement. It is a company, committed to quality products and services for total customer satisfaction and achieves market leadership through continual improvement of processes and systems by active involvement of all employees.
12
Other Functional Areas There are quite a number of other functional areas, which play a very vital role to meet the various needs of the plant as well as its employees. They are as here under: Personal Department Material Management Department Medical Organization Education Department Town Administration Purchase Public Relation Department Production Planning & Control Department
13
These departments cater to the various needs of the plant personnel such as salary, finance, personnel grievance, education, hygienic sanitary condition, good living environment, selling the product & purchasing from outside parties, production planning, training of manpower etc. 3A. Facilities/Infrastructure at SAIL-ISP, Burnpur
The different types of coal and procurement areas are as follows: Primary Cooking Coal- from Chasnalla, Moonidih, Kakani, Bojudih, etc. Medium Cooking Coal- from Bokaro west, Kedla, Swang, Kargali, Begunia, Mohuda, Kathara. Blendable Cooking Coal- from Chinakuri and Ramnagar Depots. Imported Cooking Coal- from Broken Hill, South Australia through Haldia, Paradwip and Vizag ports.
Process:
Coal is received by trucks and wagons and then stored separately sources wise in Stockyard. It is then reclaimed from yard and is then processed in the coal preparation unit, finally sent to the batteries through coal charging car (capacity of 20 tonnes of coal at one time). Here high temperature carbonization is done, i:e heating in the absence of air. During this method, volatile matters are removed leaving behind residual mass, Coke. This coke is pushed out of ovens through Pusher car, quenched by water and sorted out for different fractions in the Coke handling plant. Coke oven gas is then passed through different recovery processes in the byproduct plant to get Coal chemicals.
Output:
Primary Output: Hard Coke (25-80 mm) Nut Coke (20-40 mm) Pearl Coke (12-25 mm) Fines Coke (0.12 mm) Coke oven gas (used as an important fuel in boilers, SMS, reheating furnaces, Rolling Mills, etc.) Secondary Output: Coal tar Dehydrated Tar Ammonium Sulphate (used in Fertilizer industry) Naphthalene Benzene products
15
Equipment:
Blast Furnace consists of four furnaces, out of which two are running now of production capacity 600 tons/day and 1200 tons/day. It also consists of Blast Furnace Stoves, Cast House, Ore handling Plant, Ladle House, Slag Bank and Gas cleaning plant.
Process:
Blast Furnace is the most important part of iron section. All the materials are put inside the blast furnace through the stripper cars in COOCC charging sequence. Hot air is injected into the furnace which reduces the iron ore into Molten Iron at around (800-1300)*C and settles down at the bottom being heavier and the Slag which is formed by reduction of the raw materials settle at the top of the hot metal. After that first the Slag is collected and then the hot metal is collected by two different notches. The whole process is controlled by software PLC (Process Logic Control). Through this software, different instructions are given for the charging process.
16
Output:
Primary Products Produced: PIG Iron Melted Iron By-Products Produced: Silicon and Calcium Oxide, known as SLAG used in cement factory. Aluminum Trioxide Blast Furnace gas.
17
Steel Melting Shop: The main function of Steel Melting Shop is:
To convert PIG Iron coming from Blast Furnace to molten Steel by segregating the unwanted materials.
Equipment:
Steel Melting Shop consists of two Twin Hearth Furnaces, one Mixer, casting area, ladles, Ingots mould, etc.
Process:
Molten Hot metal from Blast Furnace is sent to the twin hearth Furnace (comprising of two hearths, one left and one right; all under one roof.) To heat a maximum of 1680*C is needed. When any one of the Hearth is full, a certain amount f gas is let through specific outlets known as, gates. Each hearth comprises of specific pipes called lungs. These lungs have two pipes, one carries oxygen and the other contains water which helps to maintain the normal temperature of the lung pipes and prevents them from bursting. The pure form of steel is collected in Thimbles. Then it is poured into the Ingot Mould which after solidification moves to the rolling mills. The scrap form is collected in ladles. The slag produced is of two types, one is used in making Cement, and the other is of no use but contains minerals (mainly Iron), which is sorted out and sold in the market.
18
Output:
Primary products consist of Steel Ingots. Around 220 MT of Steel is produced in a single working day. Secondary products consist of Slag used in cement industry.
19
Rolling Mills:
The steel produced in the plants as discussed earlier would be of no use if it is not given a final shape by making it a final finished product. Therefore, Rolling Mils is the ultimate plant where the ingot is given a final shape. It comprises of different sectors, which are as follows: Soaking Pits (32 nos.) Blooming Mill (0.9 Mtpa) Billet Mill (0.25 Mtpa) Heavy Structure Mill (0.25 Mtpa) Light Structure Mill (0.12 Mtpa) Merchant Mill (0.15 Mtpa)
Blooming and Billet Mill: Input material: Steel Ingots produced in Steel Melting Shop. Output Material: Blooms, Slabs, and Bloom Blanks, Billets. Use of this Mill: the products generated in this Mill, forms the inputs of Heavy
Structure, Light Structure and Merchant Mill.
Process: The steel ingots are first soaked in soaking pits for attaining a rollable
temperature. After that these ingots are rolled in between two rollers under high pressure where the ingots get converted into long blooms.
Pictures:
20
Heavy Structure Mill: Input Material: Blooms and Bloom blanks. Output Material: The range of products comprises of Joists, Channels, Angles,
Heavy Rails and special sections like Z-bar, Z-Pilling, Colliery Arch, etc.
Pictures:
Process:
The processesing includes various stands like roughing, intermediate and finishing, cooling and straightening. The standard length is 10 metres and above.
Pictures
21
Merchant Mill: Input Material: Billets imported from DSP and from Billet Mill Output material: Plain Rods (of size 16mm to 40mm) and TMT rods (of size 16mm
to 32mm).
Process:
In the Merchant Mill, the billets which are received are generally 100sq.m. and of 8.8-9 m in length. The cold billets are made usable through a reheating furnace. There are 10 burners in the furnace. The various stages are housing, roughing, intermediate and finishing.
Pictures:
22
Computer Services:
Computerized Integrated Maintenance and Materials Management System (IMMMS) based on CA-Open Ingres RDBMS under HP-UX. A Sun Solaris network running Oracle RDBMS in Finance department. Email and internet facilities.
Education:
ISP runs 3 Higher Secondary, 1 Secondary and 4 Primary schools providing subsidized education to more than 7000 students. Besides, 1 co-educational English medium CBSE school with 2000+ students is supported by the company.
Health Care:
A 500-bedded Central Hospital with facilities like modern OT, ICU, ICCU, Dialysis unit, Dental, isolation ward, blood bank, physiotherapy. Besides, there are Clinics in all townships and Occupational Health Centre in the plants.
Captive Plant
23
Traffic
Telecom
These departments help the plant run smoothly with rendering the services whenever needed. These departments work in conjunction with the works department for overall favourable growth in productivity of the plant. These departments provide auxiliary services and materials to production department of the plant for efficient functioning, without disrupting the smooth operation.
24
25
4.
Expansion Programme
Hot Metal
0.21
2.70
2.91
Crude Steel
2.50
2.50
Saleable Steel: -Heavy Structurals -Light Structurals -Wire Rods -TMT & Rounds -Billets for Sale TOTAL 0.15 0.10 0.18 0.43 0.60 0.50 0.75 0.09 1.94 0.75 0.10 0.50 0.93 0.09 2.37
PIG Iron
0.18
0.13
0.31
26
Sinter Plant for 80% Sinter Charge Blast Furnace of large volume with top pressure recovery turbine Torpedo Ladles to transfer Hot Metal of BOF BOF for Steel making Concast with Billet & Beam Blank casters Universal Heavy Section Mill with Tandem Reversing Rolling Wire Rod & Bar Mill with high speed finishing blocks
5. Continuous Casting which compromises of Billet caster of production capacity of 1.67 Mtpa and a Beam Blank caster with production capacity of 0.8 Mtpa. 6. Rolling Mills, which comprises of a Universal Heavy Section Mill of capacity 0.6 Mtpa and a Wire Rod & Bar Mill of capacity of 1.25 Mtpa.
27
Approved updated cost (net of CENVAT)- Rs. 14,443.20 crore Environmental clearance for the project obtained from MoEF on 07.08.2007.
28
Giprokoks, Ukraine(Leader) McNally Bharat Engg, India Bhilai engg. Corpn, India 13.10.07 29.5 27.03.10 537.53
2.
By-Product Plant(05)
12.10.07
29
11.03.10
231.31
3.
Sinter Plant(06)
13.10.07
29.5
28.03.10
704.19
4. 5.
16.10.07 13.10.07
30 24
15.04.10 12.10.09
1493.50 78.79
6.
METCO, India
09.10.07
24
08.10.09
48.26
7.
14.10.07
24
13.10.09
71.91
8.
11.10.07
30
10.04.10
447.93
9.
13.10.07
24
12.10.09
696.49
10.
Reheating Furnaces(15)
11.10.07
24
10.10.09
167.65
11.
Danielli &C, Italy & Shriram EPC, India Linde Germany, BOC India
13.10.07
26
12.12.09
698.97
12.
Oxygen Plant(17)
12.10.07
27
11.01.10
377.99
13.
Top Pressure
Beijing Sino-Steel,
13.10.07
24
12.10.09
41.73
29
Recovery Turbine(18) 14. Power & Blowing Station(19) 15. Main Receiving Station(21) 16. 17. BOD Plant(27) Ore Handling Plant(01-A) 18. Coke Handling Plant & Pipe Conveyers(01-B) 19. Base Mix Handling Plant(01-C) 20.1 Wagon Tripplers & SAC(01-D GrI)
09.10.07
24
08.10.09
63.03
12.10.07 06.03.08
28 26
11.02.10 05.05.10
8.26 534.55
L&T, India
07.03.08
26
06.05.10
505.54
L&T, India
07.03.08
26
06.05.10
457.50
07.03.08
26
06.05.10
26.39
20.2
07.03.08
26
06.05.10
77.72
20.3
07.03.08
26
06.05.10
60.88
21.
SMS DEMAG Germany Cimprogetti, Italy F.L. Smidth, India Shapoorji Pallonji, India
19.03.08
29
18.10.10
1120.08
22.
18.04.08
24
23.04.10
105.82
23.
24.05.08
24
31.10.10
199.63
24.
22.05.08
22
29.01.11
278.91
25.
24.05.08
22
21.04.10
184.60
26.
Structural work
Nagarjuna
22.05.08
20
02.05.10
192.88
30
for Rolling Mills & Reheating Furnace (48B-2) 27. Hot Metal Desulphurisation (11A) 28. Secondary Refining System(11C) 29. EOT Cranes(1101A) 30. Coke Dry Cooling Plant (03B) 31. Add. Civil Works for BOF,CCp,LDCP & Rolling Mills 32. Add.Strctural Works for BOF, CCP, & LDCP
Construction, India
04.06.08
24
03.06.10
37.26
23.05.08
28
22.09.10
215.19
04.06.08
24
03.06.10
186.30
16.07.08
24
15.07.10
307.37
14.03.09
12
13.03.10
211.67
Simplex Infrastructure
11.08.09
11
10.07.10
115.66
TOTAL
11183.64
Therefore it is very clear that after the plant is fully expanded and run with its full capacity, the production and despatch figures in the upcoming years will be in a high tide which will definitely increase the market turnover ratio over previous years. Moreover, it will gradually turn out to be an integrated Steel Plant where all the products produced will be of high quality and all the by products and scraps will be fully recycled inside the plant, hence decreasing the volume of wastage to a large extent. In other words, waste product of one plant will be raw material of the other plant.
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32
Pig Iron: Foundry Pig Iron for general purpose are available for steel making is available in SAIL grade 1 and 2, with respect to low manganese content.
33
Moreover there are a huge number of Secondary products starting from Coke Production to finished Steel Production in different units.
The different types of Secondary and By-products are as follows: Light Solvent Naptha Benzene Toluene Whizzed Naptha Coal Tar Benzol Ammonium Sulphate Steel Crop ends Skull and Scrap
AREAS OF APPLICATION OF IISCO PRODUCTS IISCO products have a very well spread market. A high demand for these products is seen because of the quality of its products and IISCOs commitment towards its customers. The demand of the products is observed in the following areas of work. Construction of Bridges Construction of Roadways Construction of Ships Construction of Railway wagons and Railway platforms, Pillars and Posts Construction of Industrial plants, building flats
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Uses It is usually used in Paint and Varnishes Used as DDT; used as raw materials for various drugs and for discovering rubber; used in Resin intermediates; used to prepare Benzene Hex chloride which is a pesticide.
Whizzed Naphtha
Coal Tar
Used in tar distillation products; also used as electrodes to be used in Aluminum industries.
Used as a thinner in the dye and paint industry. Sent to the Steel Melting Shop for further processing and making steel.
Slag
Either sold away to the outside parties or they are Cobbles (Heavy Rail Spoils) again sent to the Steel Melting Shop for further processing and making steel.
SAIL-ISP uses Colour Codation Methodology for segregating their products according to their quality. The basic Colour Codes are: RED (For Defective material) WHITE (For Off Grade material) GREEN (For Prime Products of A and B grade, which are to be marketed by Central Marketing Organisation).
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Pricing of the Secondary and By-Products are set by the respective plant producing these items and has its own pricing committee.
Place
Being a Maharatna Company, SAIL has a very huge distribution network along the whole country. It has Five integrated Steel Plants, which are: Bhilai Steel Plant Bokaro Steel Plant Durgapur Steel Plant Rourkella Steel Plant IISCO Steel Plant
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It also has a Special Steel Plant known as ,Alloy Steel Plant in Durgapur. Subsidiary units under SAIL in Maharashtra Elektrosmelt Ltd, which is the largest Manganese, based Ferro Alloy Producer. Other unit of SAIL is the SAIL Consultancy Division (SAILCON), which is a single window in SAIL catering to clients across the world, providing design, engineering, technical, management, and training consultancy and service available from various Sail plants and units.
Promotion
SAIL still lags behind when it comes to promotional activities. It does not follow dynamic ways of promotion. There is Public Relation department, which takes care of promotional activities. They take help of leaflets, hoardings, handouts. Sail Hoardings and posters are now seen in all the walls of trains and highways, buses. Campaigns are being scheduled in rural areas to attract the rural customers to use these products for their small requirement. Online add is also being used.
People
SAIL generally has a market all over the country and is with dealings with many huge construction and other organizations. But now it is trying to capture the rural market also. The rural people usually have very little use and according to a survey, the rural consumption of Steel is only 2 kg o an average. For this purpose SAIL has started a programme to install around 1800-2000 shops all over the rural districts of India, where the rural man can come and have their daily requirement as per their choice.
IISCO Steel Plant also has a number of rural customers for its by-products and secondary products. The customers are: Adhunik Company (Kolkata) Swarnamangalam Company (Durgapur) Steel Centre (Punjab) Banik Punching Works Meera Traders Burnpur Iron Foundry Ma Lilori
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Production Performance
Here is a tabular presentation of production(Tonnes) in SAIL-ISP over a span of Five years: Period 2005-06 2006-07 2007-08 2008-09 2009-10 Hot Metal Production 7,79,560 7,75,266 6,39,800 5,97,729 5,02,133 Pig Iron Production 2,12,928 1,68,394 93,352 97,766 36,583 Ingot Steel Production 4,33,522 4,69,323 4,58,221 4,16,556 4,00,029 Saleable Steel Production 3,13,796 4,03,196 4,11,970 4,02,390 4,13,939
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1,21,306 1,33,524 1,31,990 1,39,790 6,192 2,899 1,129 2,189 3,95,815 4,07,822 3,79,514 4,28,967
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6B. Organizational Structure of ISP Marketing (dealing with Secondary and Scrap items)
General Manager (Marketing)
42
the core product or prime saleable steel products are marketed by its marketing hub CMO. At present, ISP is the market leader of products like Z-bar, Z-Pilling, Colliery Arch, Benzene , Toluene, LS Naphtha.
Standing Pricing Committee:
This committee takes the decision to fix the new price list of various items to be sold in the market. Committee meets at least once a month generally more often in a month. It is also necessary for the following committee to meet more often because the price of some products is volatile (i:e Naphthalene). Sometimes, huge imports bring the price down very quickly and a higher price can be uncompetitive. So regularly price reviewing is very necessary. The committee consists of the following members: GM (Chairman) GM (Marketing) DGM (Marketing & Finance) AGM (Sales & Order) DGM (Store Member)
Then the products are held for auctioning with the help of METAL JUNCTION, a 50:50 joint venture unit by SAIL and TISCO for holding the auction programmes.
44
First of all the interested bidders have to pay an EMD (Earnest Money Deposit) which is 5% of the material value for participating in the bidding process.
A requisite amount of training is given to the respective bidders so that they can ensure a fair auctioning process. The bidding process starts on the mentioned date, when all the bidders make their bid and after the bidding process is over, the highest bidder (H1) is taken into account.
Now the highest bidding price is matched with the reserve price If it is more, then it goes for approval process by another committee comprising of different sets of hierarchical personals for having a transparent touch and finally recommended by the GM to finalise the approval process. If the bid price is less than the reserve price, then re-auction is done.
After the approval process, offer is made to the bidder making the highest bid for making the payment within 4 days from the date of offer. After 4 days 3 days grace period is allowed to make payment, only under the circumstances that have to pay a fine of Rs. 10 per day per tonne.
The payment has to be made through demand draft to the cash section, which sends it to the SBI Burnpur Branch for checking the auctioning of the drafts. After checking, they issue the money receipt. Following, the issuing of delivery order is made (approximately within 2 days from the date of making payment.) and along with the terms and conditions the customers along with the lifters will have to follow throughout.
After issuing of the delivery order, the lifter has to issue 3 copies of signed authorisation letter from the customers according to which the next procedures are taken forth.
Generally delivery order is not extended, but any DO extension, whenever required, prior permission is required from GM (Marketing). Now, once the delivery orders are issued, the job of the marketing department is to now chase the lifters for completion of the delivery in time. Against the total DO quantity, 1% extra excess loading is allowed.
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After loading the trucks, permission from marketing department is required to convince 60MT weighbridge. After that, if there is some extra loading, the payment has to be made accordingly. After completion of delivery process, customers generally apply to marketing department for refund of their earnest money deposit (which is generally 5% of the material value)
For getting their refund, the customers have to submit their original documents: like Delivery Order, Money Receipt and also a document should be prepared showing date wise delivery of materials taken by the customers.
After verifying all the documents, the marketing department advices the accounting department along with the documents submitted by the customers for refunding the required amount of money.
Hence, all the process from auctioning, bidding and completion of delivery process comes to an end.
46
The different Stockyards of the eastern region are at : Durgapur Dankuni Bokaro Rourkela Bhubaneshwar Guwahati
There is also a Transport and Shipping Department (TDS) which looks after the transport and shipping of products. The products are mainly dispatched through 3 docks: Haldia Paradwip Vizag
47
There is also a division known as Internal Trade Division (ITD) looks after the export of products. The domestic market of SAILs product has two wings: Long Products Flat Products Competitors for Long Products are RINL and TISCO; and competitors for Flat Products are ESAR.
Almost everywhere plant under SAIL manufactures some unique products such as: Durgapur Steel Plant Wheel and Axle Bhilai Steel Plant Long Rails IISCO Steel Plant Z Pilling and Z Bar. The above mentioned products have a monopoly market which helps CMO in various ways to target the different customer segment and thus also have a large customer target base. ISP-Sail also is the sole producer of many specialty products such as Z-Pilling and Z-Bar, and therefore due to its monopolistic nature, SAIL enjoys a competitive edge over other private or public sectors.
48
Pricing Policy:
The pricing part is dealt by CMO- it is based on the market conditions and the cost of production. After considering railway freight, excise, handling and stockyard expenses; a base price or a listed price is fixed, which helps to earn good revenue. The process of market generation, informing the respective plants, production according to the requirement and finally dispatching the finished product involves the following steps:
Product Manager (For each type of Prime Product) Sales Resident Manager Movement Plan
Dispatch of materials
49
Verification of Signature
Order Department
50
6I. Customer Satisfaction To achieve consistent customer satisfaction, the following steps would be helpful to SAIL-ISP.: Consistent Quality Committed Delivery Customized Product Mix Contemporary Product Competitive Price Complaint Settlement Culture of customer service
51
Review of Effectiveness Review of head of RCL on the taken complaints Feedback to concerned HODs
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Discussion On Training
53
7. DISCUSSION ON TRAINING
STUDENTS WORK PROFILE (ROLE AND RESPONSIBILITIES) Role: I was given the role of observer by ISP Burnpur. My role was to collect information about the strategies used by ISP to market its secondary products and also to understand the Marketing Mix of ISP Burnpur, as a Management Trainee. Responsibilities: During the period of this project my company (ISP) has given me so many responsibilities. They are as follows Survey, Collection of data by preparing questionnaires, Analysis of the situation and Marketing procedures Reporting to the officer
DESCRIPTION OF LIVE EXPERIENCE From this project, I have got an amazing live experience. As I am a fresh Graduate, so I do not have any type of experience in a corporate work field. So, when I went to different types of departments in ISP for asking about their way of conducting their process, I was enjoying. I was quite surprised because of their friendly behavior. Moreover during my plant visit programme, I was really thrilled to see the different methodologies that are used to produce the material which is a necessary product in every bodies life and also for a growing nation, i:e STEEL. I am also really greatful to work with many officers in the Marketing department, where I got my first practical knowledge in the field of marketing. I was really excited to apply my theoretical knowledge in practicality. 7A. STUDENTS CONTRIBUTION TO ORGANIZATION Gathering the product knowledge of SAIL for its knowledge bank. Collect the data of actual monthly production and sale of ISP products
and byproducts in every trading. Help to promote the catalog of ISP as a small part of sales promotion. Find out the problems that the dealer are facing while selling the ISP
product.
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Find out the consumer response for the ISP product by asking the dealers
of the relevant product. Presenting a detailed report on marketing strategies and marketing mix
in ISP-SAIL.
STATEMENT OF RESEARCH OBJECTIVES Primary objective The main objective of field survey during the project was to find out the market mix of ISP-SAIL. Find out the different methods by which the marketing of secondary
products are carried out. The main objective of research was to identify the strategy which is
being used in ISP-SAIL. Secondary objective While purchasing the ISP-SAIL products which parameter is most
important for the consumer? To make a comparative data analytical report for the production and
dispatch of various steel products within ISP-SAIL. To enhance the knowledge of Iron and Steel products market. To enhance the knowledge about the marketing set up of a Public Sector.
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survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods
Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.
Types of research used: Primary Research - Here the data is collected directly from the respondents using various data collecting techniques. In this method although the rate of getting responses and feedback is slower, then also it is much more accurate as direct conversation with the population is being conducted here. Secondary Research It is being done generally with the data already existing which is been collected by some other person or organization.
7C. Data collection methods: Primary data: For primary data collection, I have used different data collecting methods such as conducting survey interviews, distributing questionnaires, direct observation, and telephonic interviews with mainly executive officers, dealers, employers, etc. Secondary Data:
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It is being collected from different Journals at ISP-SAIL, financial data from Finance Department, Production and Dispatch data from PPC department at ISP-SAIL, Burnpur.
Data analysis and interpretation: Questionnaires (Two sets of it.) Bar chart
Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.
Sampling Methodology: Details of the sampling methodology, I have made 2 sets of questionnaires, one for the Executive and Non-Executive staff at ISP-SAIL; and the other for the persons who are a potential customer with the organization.
No. of questions in questionnaires for Ex. and Non-Excutive staff members are : No. of questions in questionnaires for customer: No. of question related to ISP-SAIL product: No. of people met during the research: No. of respondents during the research:
40 10 03 150 100
Sample unit
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7D. Questionnaire for Understanding Marketing Strategies at IISCO Steel Plant- SAIL Market:
1. What is the market opportunity? What is the market size? Market size with respect to geography and to industry.
3. What are the industry trends that are fueling our success? And what are the trends that are inhibiting our success?
4.
According to you, what is the economic climate now and how will it be in the upcoming two years?
6. Is the market or our business is affected by seasons and climate? If so, then how?
Target audience:
1. What marketing segments are we targeting? What segments we are not targeting?
3. Why would someone prefer our products and offerings versus that offers by the competitors?
4. Are there any issues or concerns that the target audience might have regarding this type of product or offering?
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Competition:
1. What categories of competition threaten our success? Prioritize the categories?
2. Which are the companies which poses greatest threat to us? And how do they differentiate themselves?
4. Which competitors have the largest market share within our target market segments?
5. What are the barriers which we are creating for ourselves to entry into the market place?
Offering:
1. What need is our offering or product designed to fill? Identify the need for each target audience?
4. Of all these features, which one is of that extra value that differentiates us from our competitors?
5. What improvements can we make to our offering to better meet customer needs?
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2. Who is involved, both from our company and from our sales channel partners, in each step of the sales process?
5. What purchase process steps do we follow with our customers? Does the process vary with respect to different vendors? If yes, then how?
Pricing:
1. What are the main criteria which are followed in setting the price of the products?
2. What is the current price structure? Including discounts, rebates and so on. Do our customers understand it?
3. Which of the competitors is considered the Price Leader? What is their offering?
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7. What industry trends are going to drive prices down? And what are the trends which are going to drive prices up?
Media:
1. What are the primary forms of communication your competition use to promote and communicate to your target audience?
3. What other forms of media have you used in the past to promote products and services and what has been the success/response rate experienced?
4. Do you currently market over the Internet or have marketing links with other sites?
5. Do you attend trade shows or other industry events to promote your business?
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7E. ANALYSIS OF DATA from the questionnaire prepared for the customers along with the graphical representation of the answers.
Q1. Use of Iron and steel in your life ---------- Extremely Important Very Important Somewhat important Not very Important Not at all Important.
Q2. Business with ISP ---------- Extremely Important Very Important Somewhat important Not very Important Not at all Important .
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Q3. Product quality of ISP-SAIL ---------- Excellent Very good Good Fair Poor
Q4. Process of buying products of ISP-SAIL ---------- Excellent Very good Good Fair Poor
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Q5. Price of the products are same as market price ---------- Strongly disagree Disagree Neither agree nor Disagree Agree Strongly Agree
Q6. ISP-SAIL satisfy your needs and demands ----- Strongly disagree Disagree Neither agree nor Disagree Agree Strongly Agree
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Q7. ISP-SAIL gives better service than other steel plant -- Strongly disagree Disagree Neither agree nor Disagree Agree Strongly Agree
Q8. You will continue buying products of ISP-SAIL for next five years --- Strongly Disagree Disagree Neither agree nor Disagree Agree Strongly Agree
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Q10.What is the first word that comes to your mind when you hear the following? Steel Industry IISCO. Steel Plant
consumers are very price sensitive. They give more importance to price over the brand. 26% give importance to brand. So price and Brand matter a lots for the
costumers. And they are also want best brand in best price. 19% to product feature Service 16% and durability 9% Service is also a
big factor for the customer they are less interested in the durability.
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capacity of the store and how much product can they sale. It helps us to know that weather dealer is capable of being a direct dealer
of ISP-SAIL or not and it also helps to find out the new dealer who are capable of being the dealer of ISP-SAIL. We also came to know while visiting the shops that there was big
problem of after sale service. Many dealers were facing the problem of after sale service because there
is no follow up calls from ISP-SAIL. There is high growth of sale in market due to booming in new
technology and better service. Word of mouth plays a vital role in awareness among customer. This is
one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer.
CUSTOMER SURVEY FINDINGS Secondary products play an important role in the customers mind and
create awareness among the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors. Customers want to buy from the showrooms or from co. showrooms. For
them service is important .Beside convenience and other factors service is key factor. Also majority of customers do not want any financing scheme for
purchasing the Iron and Steel. There was heavy rush on weekends. Customers are also now very choosy in buying the product and it is
important for the company to make loyal customer of their brand. The product is well aware and it is on top of mind of customer.
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Most of the times many of the customers are not aware of the bidding
system they have to follow. Some of the customers are not satisfied with the service they get from
8A. Limitations
ISP-SAIL is a huge organisation and so it was not possible to cover the entire organisation. Time factor for the staff is a big problem. To get certain official and technical data is a real problem as they are highly confidential. The marketing policies of ISP-SAIL change from time to time and from product to product. The product range of ISP is numerous and so it is not possible to cover each and every product. Lack of proper guidance during specific situations.
8B. Observations
The following observations were made from the graphical representation as well as the responses of the customers: Quality of Steel is inconsistent. At times test certificates do not justify quality of the material. Consumers prefer lowering of prices. For structural materials, prompt response is expected, attention to small customers just like big customers or others. Maintenance of fast delivery schedule Improvement in post sale services.
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8C. Suggestions
Modernization of the plant should be completed in less than a year. More integration with the clients is needed Stability of prices Should be more prompt to response against any requirement and settlement of
accounts
Each individual from top management to worker should be made aware of cost
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9. CONCLUSION
After the formation of the present UPA Government, initiatives were taken by Shri Ram Vilas Paswan, the Honble Minister for Chemicals & Fertilizers and Steel for merger of IISCO with SAIL. On June 16, 2005, the Union Cabinet cleared the decks for the merger, authorizing Ministry of Steel to initiate the official procedures. IISCO has been merged with SAIL on Feb 16, 2006 and is renamed as IISCO Steel Plant, the fifth integrated Steel Plant under SAIL after RSP (Rourkela), BSP (Bhilai), BSL (Bokaro) and DSP (Durgapur). Now timely completion of each project will depend on IISCOs ability in the next few years to mobilize the resources and ensure that these are used to create planned capacity in the system. Ultimately successful implementation of the modernization and expansion will determine whether or not IISCO Steel Plant becomes a new centre of gravity for Indian Steel. But clearly, it is advantage steel and it is for employees to demonstrate that they can rise to the challenge and fulfill their aspirations. If just three years back somebody had said that one day IISCO would become the engine of growth for economic recovery of this region, he would have been regarded as either wildly optimistic or clinically insane. Today, howsoever unbelievable it may seem, it is heading towards just that. In its new avatar, IISCO Steel Plant is now on the cusp of growing at a precipitous pace. From the ubiquitous roadside hoarding proclaiming Marching Ahead to the new contracts being signed every month, calling IISCO Steel Plants modernization and expansion as the biggest reality shoe ever would not be far off the mark.
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10. BIBLIOGRAPHY
SAIL All the major Departments of IISCO Steel Plant, Burnpur www.sail.co.in www.wikipedia.com/iisco_home/org Business world magazine www.scribd.com/ppt/steel-production Business today Magazine SAIL-ISP monthly magazine, Faithfully Economics times News paper Times of India Newspaper CMO news- A House Magazine of Central Marketing Organization of
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Q2. Business with ISP ---------- Extremely Important Very Important Somewhat important Not very Important Not at all Important
Q3. Product quality of ISP-SAIL ---------- Excellent Very good Good Fair Poor
Q4. Process of buying products of ISP-SAIL ---------- Excellent Very good Good Fair Poor
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Q5. Price of the products are same as market price ---------- Strongly disagree Disagree Neither agree nor Disagree Agree Strongly Agree
Q6. ISP-SAIL satisfy your needs and demands ----- Strongly disagree Disagree Neither agree nor Disagree Agree Strongly Agree
Q7. ISP-SAIL gives better service than other steel plant -- Strongly disagree Disagree Neither agree nor Disagree Agree Strongly Agree
Q8. You will continue buying products of ISP-SAIL for next five years --- Strongly Disagree Disagree Neither agree nor Disagree Agree Strongly Agree
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Q10.What is the first word that comes to your mind when you hear the following? Steel Industry IISCO Steel Plant
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