Steel Retailing

Introduction Steel Market

India has now emerged as the eighth largest producer of steel in the world with a production capacity of 35MT. More than 3500 different varieties of steel are available in the steel industry of India
Flat Products Long Products

*MT Metric tons

HindSteel LTD

Steel Bazaar Retail Steel Store

Segmentation
Big - companies buying in bulk , need continuous supply e.g. Auto Spare part industry. Medium Companies having uniform requirement, but not in huge quantities. Small One off buyers, need based. E.g. individuals, small firms

Targeting
SME
Small scale utensil makers. Small scale steel products Tier2 & Tier 3 cities

Positioning
Convenience Low price Quality Assurance : ISO 9002, 14001

Cost Revenue Analysis

The demand can be seen to grow at over 11-12% p a. The revenue generated from this retail network would account to 30% of HindSteels revenue.

Advantage customer
No switching cost involved
No additional technical know-how. No changes reqd. In the way processes are carried out. No additional investment.

Offerings Cost

People to be influenced
Purchase Dept.
Initiator Purchaser

Line manager
Influencer

Board & CEO (Owner)

Decider

Finance Dept.
Approver

Any one who can help us to get us to right place

Gatekeeper

*Dept. Department

Current Relationship
Very strong Segment is highly driven by cost value analysis The Market is highly driven by

intermediaries

Buying Incentive
Reduction in cost Small SKU Flexible Credit period Increase in profit to purchaser Possible reduction of end products price

Risk Associated
Impairing relation with wholesaler. Major challenge can be logistics and supply of requisite steel product in a particular region.

Quick percolation of information

As size of SME is small the knowledge is easily assimilated. Different promotional activities have been chalked for the same.

Hurdle or Roadblocks
Age old relationship channel model. Creating awareness for new model. Matching demand with supply. Low barrier of entry for big players.

Promotion Mix

Brochure & Poster

Sales Pitch
Explanation of the concept
Advantages to the customer through points of parity and points of difference. Point of Parity : Core product remains the same. Points of Difference : Price similar to what a bulk customer pays, Quality Assurance : ISO 9002 , 14001. Answering any queries of the customer

Summarizing
Steel Bazaar is a store for all steel products. It houses a variety of steel products that catering to various industrial segments. Its product portfolio is backed by HindSteel a global steel producer with a presence in steel consuming markets like Asia and South America. Steel Bazaar also offers financing options like channel financing, letter of credit and bank guarantee facilities.

THANK YOU!!

QUESTIONS