Marketing Management

Tata BlueScope Ltd.

Case discussion

Term II – GMP Tata Steel (Team members)

Abhinav Prakash (CGT19001)

XLRI
Bhavani Shankar (CGT19009)
Mrinal Gautam (CGT19013)
Group 3
Prashant Priyadarshi (CGT19020)
Date: Sristy Raj (CGT19028)
INDUSTRY OUTLOOK

32 3.24 MT 2% 6.5% 51%

CAGR
Paint Lines Capacity MS in Total steel Expected growth Overall Capacity
Sales Utlisation

Year 20xx

2
Major Market Players

 TATA BlueScope Steel

 JSW Steel Coated Products Ltd.
 Uttam
 Essar Steel
 Kamdhenu Steel
 Local Roll Formers (800+)

3
About TBSL : Major Milestones

Tata Steel and BlueScope establish their Joint Venture

2006- First Roll Forming facility gets inaugurated in Pune , Bhiwandi Facility was set up.
2014 Chennai Plant was set up .First Flagship Brand DURASHINE was launched

Sets up its own manufacturing unit in Jamshedpur for Metal and Color Coated Steel

Forayed into Solar Mounting Steel Structures, Launched EZYBUILD® smart building
2015
solutions

ILIOS™ ; Solar Module Mounting Solutions is launched

2017
Durashine becomes No. 1 Brand

2018 DURASHINE® recognized as Asia’s Most Promising Brand 2018

4
2019 Received Green Pro Certification from CII-Green
TSBS: Products and Brands

COATED STEEL Building Products

.

PRE ENGINEERED BUILDINGS SMART BUILDINGS

.

5
Company Sales: Last 7 Years

3
2.39 2.34 2.34 2.45
2.5 2.2
1.92
Sales (in Lakh Ton)

2
1.53
1.5 1.32 1.31 1.4
1.2 1.23
1.1 1.07 1.11 1.03 1.05
0.985 1
1 0.82
0.545
0.5

0
FY13 FY14 FY15 FY16 FY17 FY18 FY19
B2B Sales B2C Sales Total Sales
6
Problem statement

 How to reach sales goal of Rs 5000 cr. in 3 years from current Rs 2000 cr.?

 How to achieve CAGR growth of 37.5% when industry is expected to be

around 6-10% ?

 How TBSL could sustain its premium brand positioning for coated sheets ?

7
Challenges

 If needed, to be copied from Prabhat sir’s ppt

8
Proposed Alternatives

1. The Nirma Way

2. Slow and Steady Wins the race

3. Create more price points

4. Focussed approach – select the niches

9
1. The Nirma way
(Salient points of this strategy)

Mass Marketing  Focuses on high sales volume

 Products appeals to the whole market

Low Price  Catering to the need of price sensitive customer segment

 Value for money product
Outside-In-View  Guided by the belief that customer value creation,
customer orientation & customer experience are the keys
to success.

Roll Farmers are major  Roll farmers can’t be avoided

competitors  They are essential to serve a wide variety of possibilities
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2. Slow & steady wins the race
(Salient points of this strategy)

 No compromise with Quality

 Consistent with philosophy of Parent Companies

 No Price War

 Maintain Premium Pricing Policy

 Partnership with credible roll farmers

 Continue strengthening Company Brands

 Target CAGR = 15%

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3. Create more price points

(Salient points of this strategy)

Market share VIP has retained ~ 50 to 60% Market share for last 40 years
using this strategy

Fight to Unorganized Alpha range – huge volumes even after competing with
sector unorganized sector

Premium product Elenza – topmost brand – competes with world leader

Strategy Brand at each price point – heled to maintain leadership

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4. A focused Approach: Select the Niches

(Salient points of this strategy)

Huge scope for niche • Thousands of end users

marketing • Many end usage for TBSL product

Excellent growth • Selection of niches

opportunity • Focused approach on every niche

Government supported • Rural housing

projects • Solar panels
• Railways
• Indian Post-Offices
High profitability • New product
• Replacement
• Renovation 13
Evaluating different Strategies

High Perceived Price

The Focused
approach

Low Perceived Quality High Perceived Quality

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Low Perceived Price
Proposed strategy

1. Roll Former acquisition and branding

2. Forward integration in B2B

3. Enhancing production capacity to 7 Lac Ton

4. Target 5000 Cr sales after 3 years with CAGR 37.5%

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Strategy (cont.)

Generalist in B2C Increase volume in B2C sector through:

• acquisition of roll formers, standardizing work processes
• branding their products

Specialist in B2B Forward Integration in B2B marketing.

This will help in getting large and niche projects with high
margin.
Production Capacity Currently, full capacity is being utilized. To commensurate with
Enhancement our marketing strategy own production capacity enhancement is
required

Mergers and Capacity Growth and forward integration can be achieved by

Acquisitions acquiring roll formers and EPCs .
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 Capacity Projection (2022)

Roll Formers Merger

2 LT

OWN CAPACITY
4 LT

SMALL PLAYERS
AQUISITION
1 LT
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 Integrated Marketing Plan (1/2)

Product Promotion Place (Dist.) Price

• Entire TBSL product • Segment specific • Indirect distribution • Multi-pricing

range Advertising • Increase dealer

network penetration
• High quality • Bundled • Channel financing
• Logistic and
• Multiple brands Accessories network analysis

• Segmented • Sponsoring social • Special packaging

for premium
positioning events
products

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ALPINE SKI HOUSE
 Integrated Marketing Plan (2/2)

People Process & Structure Policies Paisa (Money)

• Trained and • B2C segment- 64% • Integrity • CAGR of 37.5% in

experienced • B2B segment-36% • Excellent quality three years

salesperson • Increase of • Excellent service

• High number of production capacity

service • Focus on B2B-

personnel’s premium pricing

• Technical services • B2C- Generic

ALPINE SKI HOUSE 19
Projected Financials

FY17 FY18 FY19 FY20 FY21 FY22

SALES (LT) 2.34 2.34 2.45 3.19 4.38 6.35
Revenue (Rs Cr) 1614.00 1707.00 1969.00 2559.70 3519.59 5103.40
B2C Sales (LT) 1.23 1.31 1.40 1.82 2.55 4.08
B2B Sales (LT) 1.11 1.03 1.05 1.37 1.83 2.27
B2C Sales (%) 53% 56% 57% 57% 58% 64%
B2b Sales (%) 47% 44% 43% 43% 42% 36%

Sales Forecast B2B Vs B2C Growth

7.00 5103 6000.00 7.00
6.00 5000.00 6.00
5.00 5.00 2.27
3520 4000.00
4.00 2560 4.00
1969 3000.00 1.83
3.00 1614 1707 6.35 3.00
4.38 2000.00 1.37
2.00 2.00 1.11 1.03 1.05 4.08
3.19 2.55
1.00 2.34 2.34 2.45 1000.00 1.00 1.82
1.23 1.31 1.40
0.00 0.00 0.00
FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22
SALES (LT) Revnue (Rs Cr) B2C Sales (LT) B2BALPINE
Sales (LT) SKI HOUSE 20
THANK YOU