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CONTENTS

SLNO TITLE Page no

1 EXECUTIVE SUMMARY 1

2 INTRODUCTION 2

4 PROFILE OF NALCO 4-10

5 REVIEW OF LITERATURE 11-25

6 ANALYSIS AND FINDINGS 25-30

9 PRICING PROCEDURE 31

12 CUSTOMER SATISFACTION 32

13 PROMOTIONAL PROCEDURE 37-38

14 SUGGESTIONS 39

15 CONCLUSION 40

16 BIBLOGRAPHY 41

EXECUTIVE SUMMARY

Aluminum represents the second largest metals market in the world. Growing demand

for the lightweight metal is fuelled largely by the booming Chinese economy which

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already consumes a quarter of the worlds aluminium production. Analysts predict

an annual growth rate of 8 to 16% in the Chinese automotive industry up to 2010, a 15%

increase in construction expenditure in 2011 and a minimum of plus 16 million annual

growths in urban population during the next 8 years. According to analysts these factors

will combine to see China consume 36% of worlds aluminium production as early

as 2010.

Aluminium Industries in India is one of the leading industries in the Indian economy. The

growth of the aluminum Metal industry in India would be sustained by the diversification

and exploration of new horizons for the industry. India has huge deposits of natural

resources in form of minerals like copper, chromites , iron ore, manganese, bauxite, gold,

etc. The India aluminum industry falls under the category of non iron based whichinclude the production of copper, tin, brass, lead, zinc, aluminum, and manganese.

The main operations of the of the India aluminum industry is mining of ores, refining of

the ore, casting, alloying, sheet, and rolling into foils. At present, Hindalco and Nalco are

one of the most economical in the production of aluminum in the world. For the

sustenance of the growth the aluminum industry in India has to develop research and

development units to assist the production and improve on the quality measures to keep a

stringent quality control.

Marketing strategy is one of the important parts of companys development. The

objective of this study was to help NALCO to know its own position in comparison to

its competitors; to know whether the strategy used by the company is effective; and to

provide a proactive, planed & informed approach to its own strategies in order to gain an

upper hand. The study on Marketing strategy is done by taking all aspects of strategy

very keenly like SWOT, BCG , 7S MODEL , 4Ps. and others procedures.

INTRODUCTION

In the present competitive world every company wants to be the best in their segment of

business. So, company identifies its competitors with whom it has to compete and

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according to it the company makes its strategy to survive in the market. If the company

cannot compete in the market then it will become a dog in the market. Now-a-days each

and every company is too aggressive to follow or lead the market. Therefore, it has

become imperative to study the

Marketing strategy of the company and renew it time and again.

Coming to the aluminium industry, this is one of the leading industries in the Indian

economy. The growth of the aluminum Metal industry in India would be sustained by the

diversification and exploration of new horizons for the industry. So the proper use of

marketing strategy is very much important and that to in a planed way. Keeping these

facts in view this study was conducted to know the growth of NALCO as well as to find

opportunities for expansion of business and capturing the present market. The analysis of

marketing strategy of NALCO was based on the following parameters: 1) The Marketing

Mix (The 4 P's of Marketing); 2) The BCG Growth-Share Matrix; 3) SWOT Analysis; 4)

7S Framework. And others...

OBJECTIVES OF THE STUDY

To help the company to understand its position with respect to its major

competitors in the market, and provide business competitive intelligence.

To understand the present Marketing strategy deeply so to provide a proactive,

planned and informed approach to its future strategies in order to gain an upper

hand.

To find out companys strengths and weakness and also the threats as well as

opportunities.

To find out the work style of man power.

To observe the action of competitors, that might help the company to learn more

about the market.

To show the company new ways of expanding the business

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The relevance of the topic for the company

Today is the age of competitions so each and every company is aggressive in capturing

new opportunities available to gain market share. If the company is aware of its position

respect to its major competitors in the market, and have business competitive intelligence

can act proactively to gain an upper hand. Also the company should have knowledge

about the effectiveness of their products. Apart from these this study also helps the

company to know its strengths and weakness and also the threats as well as opportunities;

its work style of manpower; its competitors; the procedure of pricing. Domestic

procedure, export procedure and show new ways of expanding the business. These are

quite pertinent aspects for the growth of the company.

Limitations of the Study

The limitations of the study are linked to information gathered from various sources and

the interpretation of the information. Also with the exception of a few information

sources like forecasted financial statements, this is particularly the case if there are a lot

of structural changes happening in the sector and all the players are expected to have

dynamic Marketing strategy to capture their market.

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PROFILE OF NALCO

Mission

"To develop and strengthen technology expertise pertaining to Bauxite, Alumina and

Aluminium in the next five years, which will enable NALCO to be self sustained in the

field of Bauxite mining, Alumina Refining and Aluminium Smelting technology.

To achieve growth in business with global competitive age providing satisfaction to the

customers, employees, share holders and community at large.

Vision

"To set up world class, state of the art research and development facilities to enable

NALCO to achieve excellence and sustainability in process, product and technology in

the field of Bauxites, Alumina, Aluminum, Power and allied areas including downstream

products.

Objectives

To maximize capacity utilization.To optimize operational efficiency and productivity.

To maintain highest international standards of excellent in product quality, cost efficiency

and customer service.

To provide a steady growth business by technology up gradation, expansion of

diversification.

To have global presence and earn foreign exchange.

To maintain leadership in domestic market.

To install financial discipline at all levels for achieving cost and budgetary controls ,

optimize utilization of working capital and effective cash flow management

To maximize return on investment

To develop a strong R&D base and increase business development activities.

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To promote a result oriented organizational ethos and work culture that empowers

employees and helps realization of individual and organizational goals.

AWARDS

Indra priyadarshini Vrikshamitra Award by Govt.of India-1994

First CAPEXIL Export Award-1988

London Metal Exchange Registration-May 1989

First EEPC Export Award-1998-99

Indra Gandhi Paryavaran puraskar by Govt. of India-2000

FIEO Niryat Shree Awartds-2005-06

Navaratna Status-2008

Premier Trading House Status-2009

500th shipment of Alumina from Vizag port-2010

Best listed CPSE Awards-2010

ISO 9001:2000,ISO 14001,OHSAS 18001 & SA 8000 Certifications

Nalco achieves record production and sales in 2010-11

Nalco Today

Today as an ISO 9001 company, Nalco has emerged as the largest integrated Bauxite-

Alumina-Aluminium complex in Asia enabling India to witness a quantum jump in

Alumina and Aluminium production. The company for the final time created exportable

surplus Alumina and Aluminum production. The company for the first created exportable

surplus in Alumina and helped India top focus on its massive Bauxite resources in the

east coast export oriented Aluminum plants.

Segments of Nalco

NALCO has emerged as the largest integrated Bauxite-Alumina-Aluminium complex in

Asia enabling India to witness a quantum jump in Alumina and Aluminium production.

The company for the final time created exportable surplus Alumina and Aluminium

production. The company for the first created exportable surplus in Alumina and helped

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India top focus on its massive Bauxite resources in the east coast export oriented

Aluminum plants. The integrated complex has five segments like Bauxite mine,

Aluminum refinery, Aluminum smelter, Captive power plant and port facilities.

Raw Materials Used

The basic raw materials required for the production of aluminum are electronic energy

alumina, CGM line white brand, caustic soda, hydrate alumina, some other raw materials

required for smelter like calcinade petroleum, coke and coal for pitch, available from

Baruni-Haladia-refineries and vizag steel plant respectively, the actual requirements of

other raw material of this plant as follows.

Calcined petroleum coke-87.100 tones

Coal tan pitch-27,000 tones

Heavy fuel oil 12,390 tones

Heal transper fluid- 3000

Process water- 20000M

Salient Features

Micro processor based burner management system for optimum thermal efficiency.

Computer controlled data acquisition system for online monitoring.

Automatic turbine run-up system

Specially designed barrel type high pressure turbine.

Electrostatic precipitators with advanced intelligent controllers.

Wet disposed of ash.

The raw water for the plant is drain from river Brahmani through a 7 KM long double

circuit pipe line, discharging 7200 m3 /hour of water. The coal demand is met from a

mine of 3.5 million tone capacity opened up for Nalco at bharatpur in talcher by

Mahanadi coal fields ltd. The power plant is interconnected with the static grid.

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Products

Aluminium Metal

(CG, EC&LME grades)

Ingots (Standard Ingots,sow Ingot,T-ingots)

Wire Rods

Billets (in 5 size)

Alloy wire rods

Cast strips

Alumina & Hydrate

1.Calcinated Alumina

2.Alumina hydrated

Specialty Alumina & Hydrates

Rolled products (coils & sheets)

(INGOTS) (SOWS INGOTS)

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(BILLETS) (T-INGOTS)

(WIRE RODS) (ROLLED PRODUCT)

Plant Location

Nalco Nagar is situated within 5km of Angul town. Angul was once a tidal state. It is

fairly big and bustlingly town on the national highway no.42 which is the main highway

connecting Bhubaneswar with Raipur (MP), sambalpur, sundarghar and Rourkela. Nalco

has established its smelter plant, captive power plant and its town ship close to the

national highway. The place is easily accessible from Cuttack and Bhubaneswar by road

and rail. Today in the vicinity of Angul a large number of industries have come up. The

other important industry in and around this place are heavy water of atomic energy,

Commission talcher, coal mines of mahanadi coal fields limited and thermal power plants

of NTPC.

The Nalco town ship known as Nalco nagar is modern and well planned. In addition to

2947 dwelling units and trainees hostel with 300 rooms, Nalco nagar may civic facilities

like community centres, clubs , stadium , swimming pool, market complexes etc. it has

establish 50 bedded hospital with ultra modern facilities.

Organizational Structure

Nalco is a govt. of enterprise under the administration control of the ministry of mines.

The company is managed by board of directors appointed by the president of India. The

board consists of 16 directors including the chair-cum managing director of the company.

There are 6 full time functional directors heading production, finance project & technical,

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personnel &administrative disciplines. There are our senior govt. officials nominated to

the board as directors on ex-officio basis. Besides there are 2 non official directors in the

board appointed to present the interest of financial institution, allied industry & R&D

objectives of the company. Thus the board of company is a full of highly experienced &

outstanding potentials drawn from various fields of specialization.

The management control system is based on delegation of authority & individual

accountability for results. The responsibility and authority to take decisions on various

matters are delegated by the chairman-cum-MD to different levels in the management.

Human Resource

About 7393 persons possessing a verity of skills, qualifications and competence are at the

services of Nalco, Nalco is truly youth with the average age of the employees being

below 40 years. Starting with a core group of 262 employees in the 1982, the progressive

growth in man power has taken place in a planned manner matching the different stages

of the project.

Composition of Manpower

Skilled personnel-3717

Semi skill & unskilled personnel- 1041

Executives-1783

Supervisors-852

TOTAL : 7393 (Human Resources)

Overall Industrial Relations Situation

There are trade unions operating in the organization. But they are much concerned with

their rights rather than duties. The trade union leaders are much interested in the training

tours and other benefits provided by the company and least concerned about the workers

problem and other activities for the development of the organization. They are guided by

their self interest. Common employees are not much committed towards trade unions.

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There is no recognized trade union. Before 3/4 year there was a trade union was

recognized by secret- ballot method

Organizational Culture

Nalco being a profitable public sector unit concerned about good relationships among the

superior and subordinate, employee etc. in normal time people work loosely, thinking

that the company is fulfilling its target. So there is no need for hard work. But in 1998

while it was facing a bad situation people devoted their heart and soul to the organization.

The worked for day and night and brought the situation under control.

The employees of Nalco are given a very big package with number of incentives and

other facilities. But these actually do not motivate employees. Because incentives work

for a short time. It is the fear motivation which works behind every employees and makes

the employee motivated towards their respective jobs. Employees in Nalco are

individually accountable towards their work. If a task is given to them, they accomplish

the task in a proper manner and in a proper time.

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REVIEW OF LITERATURE

Marketing Strategy

A marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable

competitive advantage. A marketing strategy should be centered around the key concept

that customer satisfaction is the main goal.

A marketing strategy is most effective when it is an integral component of firm strategy,

defining how the organization will successfully engage customers, prospects, and

competitors in the market arena. Corporate strategies, corporate missions, and corporate

goals. As the customer constitutes the source of a company's revenue, marketing strategy

is closely linked with sales. A key component of marketing strategy is often to keep

marketing in line with a company's overarching mission statement.

Basic theory

The basic theory of marketing strategy is:

Target Audience

Proposition/Key Element

Implementation

The Five D's

Tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan

contains a set of specific actions required to successfully implement a marketing strategy.

For example: "Use a low cost product to attract consumers. Once our organization, via

our low cost product, has established a relationship with consumers, our organization will

sell additional, higher-margin products and services that enhance the consumer's

interaction with the low-cost product or service."

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A strategy consists of a well thought out series of tactics to make a marketing plan more

effective. Marketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketing objectives[5]. Plans and objectives are

generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and

action sequences (tactics) into a cohesive whole. Similarly, the various strands of the

strategy , which might include advertising, channel marketing, internet marketing,

promotion andpublic relations can be orchestrated. Many companies cascade a strategy

throughout an organization, by creating strategy tactics that then become strategy goals

for the next level or group. Each one group is expected to take that strategy goal and

develop a set of tactics to achieve that goal. This is why it is important to make each

strategy goal measurable.Marketing strategies are dynamic and interactive. They are

partially planned and partially unplanned. See strategy dynamics.

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual

business. However there are a number of ways of categorizing some generic strategies. A

brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance- In this scheme, firms are classified based on

their market share or dominance of an industry.

Typically there are three types of market dominance strategies:

Leader -

Challenger -

Follower

Porter generic strategies - strategy on the dimensions of strategic scope and strategicstrength. Strategic scope refers to the market penetration while strategic strength refers to

the firms sustainable competitive advantage.

Product differentiation

Market segmentation

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Innovation strategies - This deals with the firm's rate of the new product development

and business model innovation. It asks whether the company is on the cutting edge of

technology and business innovation. There are three types:

1.Pioneers 2.Close followers 3.Late followers

Growth strategies - In this scheme we ask the question, How should the firm grow?.

There are a number of different ways of answering that question, but the most common

gives four answers:

Horizontal integration

Vertical integration

Diversification

Intensification

A more detailed scheme uses the categories:

Prospector

Analyzer

Defender

Reactor

Marketing warfare strategies - This scheme draws parallels between marketingstrategies and military strategies.

Strategic models

Marketing participants often employ strategic models and tools to analyze marketing

decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad

understanding of the strategic environment. An Ansoff Matrix is also often used to

convey an organization's strategic positioning of their marketing mix. The 4Ps can then

be utilized to form a marketing plan to pursue a defined strategy.

The Consumer-Centric Business

There are a many companies especially those in the Consumer Package Goods (CPG)

market that adopt the theory of running their business centered around Consumer,

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Shopper & Retailer needs. Their Marketing departments spend quality time looking for

"Growth Opportunities" in their categories by identifying relevant insights (both mindsets

and behaviors) on their target Consumers, Shoppers and retail partners. These Growth

Opportunities emerge from changes in market trends, segment dynamics changing and

also internal brand or operational business challenges.The Marketing team can then

prioritize these Growth Opportunities and begin to develop strategies to exploit the

opportunities that could include new or adapted products, services as well as changes to

the 7Ps.

The Marketing Mix (The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:

Product

Price

Place (distribution)

Promotion

The term "marketing mix" became popularized after Neil H. Borden published his 1964

article, The Concept of the Marketing Mix. Borden began using the term in his teaching

in the late 1940's after James Culliton had described the marketing manager as a "mixer

of ingredients". The ingredients in Borden's marketing mix included product planning,

pricing, branding, distribution channels, personal selling, advertising, promotions,

packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome

McCarthy later grouped these ingredients into the four categories that today are known as

the 4 P's of marketing, depicted below:

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Fig 4.The Marketing Mix

These four P's are the parameters that the marketing manager can control, subject to the

internal and external constraints of the marketing environment. The goal is to make

decisions that center the four P's on the customers in the target market in order to create

perceived value and generate a positive response.

i) Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are

some examples of the product decisions to be made:

Brand nameFunctionality

Styling

Quality

Safety

Packaging

Repairs and Support

Warranty

Accessories and services

ii) Price Decisions

Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.)

Suggested retail price

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Volume discounts and wholesale pricing

Cash and early payment discounts

Seasonal pricing

Bundling

Price flexibility

Price discrimination

iii) Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution

decisions include:

Distribution channels

Market coverage (inclusive, selective, or exclusive distribution)

Specific channel members

Inventory management

Warehousing

Distribution centers

Order processing

Transportation

Reverse logistics

iv) Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of

marketing communication, that is, the communication of information about the product

with the goal of generating a positive customer response. Marketing communication

decisions include:

Promotional strategy (push, pull, etc.)

Advertising

Personal selling & sales force

Sales promotions

Public relations & publicity

Marketing communications budget

Limitations of the Marketing Mix Framework

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The marketing mix framework was particularly useful in the early days of the marketing

concept when physical products represented a larger portion of the economy. Today, with

marketing more integrated into organizations and with a wider variety of products and

markets, some authors have attempted to extend its usefulness by proposing a fifth P,

such as packaging, people, process, etc. Today however, the marketing mix most

commonly remains based on the 4 P's. Despite its limitations and perhaps because of its

simplicity, the use of this framework remains strong and many marketing textbooks have

been organized around it.

The BCG Growth-Share Matrix

The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce

Henderson of the Boston Consulting Group in the early 1970's. It is based on the

observation that a company's business units can be classified into four categories based

on combinations of market growth and market share relative to the largest competitor,

hence the name "growth-share". Market growth serves as a proxy for industry

attractiveness, and relative market share serves as a proxy for competitive advantage. The

growth-share matrix thus maps the business unit positions within these two important

determinants of profitability.

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Fig 5. BCG Growth-Share Matrix

This framework assumes that an increase in relative market share will result in an

increase in the generation of cash. This assumption often is true because of the

experience curve; increased relative market share implies that the firm is moving forward

on the experience curve relative to its competitors, thus developing a cost advantage. A

second assumption is that a growing market requires investment in assets to increase

capacity and therefore results in the consumption of cash. Thus the position of a business

on the growth-share matrix provides an indication of its cash generation and its cash

consumption.

Henderson reasoned that the cash required by rapidly growing business units could be

obtained from the firm's other business units that were at a more mature stage and

generating significant cash. By investing to become the market share leader in a rapidly

growing market, the business unit could move along the experience curve and develop a

cost advantage. From this reasoning, the BCG Growth-Share Matrix was born.

The four categories are:

Dogs - Dogs have low market share and a low growth rate and thus neither generate nor

consume a large amount of cash. However, dogs are cash traps because of the money tied

up in a business that has little potential. Such businesses are candidates for divestiture.

Question marks - Question marks are growing rapidly and thus consume large amounts

of cash, but because they have low market shares they do not generate much cash. The

result is a large net cash comsumption. A question mark (also known as a "problem

child") has the potential to gain market share and become a star, and eventually a cash

cow when the market growth slows. If the question mark does not succeed in becomingthe market leader, then after perhaps years of cash consumption it will degenerate into a

dog when the market growth declines. Question marks must be analyzed carefully in

order to determine whether they are worth the investment required to grow market share.

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Stars - Stars generate large amounts of cash because of their strong relative market share,

but also consume large amounts of cash because of their high growth rate; therefore the

cash in each direction approximately nets out. If a star can maintain its large market

share, it will become a cash cow when the market growth rate declines. The portfolio of a

diversified company always should have stars that will become the next cash cows and

ensure future cash generation.

Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is

greater than the market growth rate, and thus generate more cash than they consume.

Such business units should be "milked", extracting the profits and investing as little cash

as possible. Cash cows provide the cash required to turn question marks into market

leaders, to cover the administrative costs of the company, to fund research anddevelopment, to service the corporate debt, and to pay dividends to shareholders. Because

the cash cow generates a relatively stable cash flow, its value can be determined with

reasonable accuracy by calculating the present value of its cash stream using a discounted

cash flow analysis.

Under the growth-share matrix model, as an industry matures and its growth rate

declines, a business unit will become either a cash cow or a dog, determined soley by

whether it had become the market leader during the period of high growth.

While originally developed as a model for resource allocation among the various business

units in a corporation, the growth-share matrix also can be used for resource allocation

among products within a single business unit. Its simplicity is its strength - the relative

positions of the firm's entire business portfolio can be displayed in a single diagram.

Limitations

The growth-share matrix once was used widely, but has since faded from popularity as

more comprehensive models have been developed. Some of its weaknesses are:

Market growth rate is only one factor in industry attractiveness, and relative market share

is only one factor in competitive advantage. The growth-share matrix overlooks many

other factors in these two important determinants of profitability.

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The framework assumes that each business unit is independent of the others. In some

cases, a business unit that is a "dog" may be helping other business units gain a

competitive advantage.

The matrix depends heavily upon the breadth of the definition of the market. A business

unit may dominate its small niche, but have very low market share in the overall industry.

In such a case, the definition of the market can make the difference between a dog and a

cash cow.

While its importance has diminished, the BCG matrix still can serve as a simple tool for

viewing a corporation's business portfolio at a glance, and may serve as a starting point

for discussing resource allocation among strategic business units.

SWOT Analysis

SWOT analysis is a simple framework for generating strategic alternatives from a

situation analysis. It is applicable to either the corporate level or the business unit level

and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS)

stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT framework

was described in the late 1960's by Edmund P. Learned, C. Roland Christiansen, Kenneth

Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood, IL:

Irwin, 1969). The General Electric Growth Council used this form of analysis in the

1980's. Because it concentrates on the issues that potentially have the most impact, the

SWOT analysis is useful when a very limited amount of time is available to address a

complex strategic situation.The following diagram shows how a SWOT analysis fits into

a strategic situation analysis.

SWOT Profile

The internal and external situation analysis can produce a large amount of information,

much of which may not be highly relevant. The SWOT analysis can serve as an

interpretative filter to reduce the information to a manageable quantity of key issues. The

SWOT analysis classifies the internal aspects of the company as strengths or weaknesses

and the external situational factors as opportunities or threats. Strengths can serve as a

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foundation for building a competitive advantage, and weaknesses may hinder it. By

understanding these four aspects of its situation, a firm can better leverage its strengths,

correct its weaknesses, capitalize on golden opportunities, and deter potentially

devastating threats.

Internal Analysis

The internal analysis is a comprehensive evaluation of the internal environment's

potential strengths and weaknesses. Factors should be evaluated across the organization

in areas such as:

Company culture

Company image

Organizational structure

Key staff

Access to natural resources

Position on the experience curve

Operational efficiency

Operational capacity

Brand awareness

Market share

Financial resources

Exclusive contracts

Patents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of strengths and

weaknesses.

External Analysis

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An opportunity is the chance to introduce a new product or service that can generate

superior returns. Opportunities can arise when changes occur in the external environment.

Many of these changes can be perceived as threats to the market position of existing

products and may necessitate a change in product specifications or the development of

new products in order for the firm to remain competitive. Changes in the external

environment may be related to:

Customers

Competitors

Market trends

Suppliers

Partners

Social changes

New technology

Economic environment

Political and regulatory environment

The last four items in the above list are macro-environmental variables, and are addressed

in a PEST analysis.

The SWOT analysis summarizes the external environmental factors as a list of

opportunities and threats.

SWOT Profile

When the analysis has been completed, a SWOT profile can be generated and used as the

basis of goal setting, strategy formulation, and implementation. The completed SWOT

profile sometimes is arranged as Fig

When formulating strategy, the interaction of the quadrants in the SWOT profile becomes

important. For example, the strengths can be leveraged to pursue opportunities and to

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avoid threats, and managers can be alerted to weaknesses that might need to be overcome

in order to successfully pursue opportunities.

Strengths Weaknesses

1.

2.

1.

2.

3.

Opportunities Threats

1.

2.3.

1.

2.3.

Fig 5. SWOT profile

Multiple Perspectives Needed

The method used to acquire the inputs to the SWOT matrix will affect the quality of the

analysis. If the information is obtained hastily during a quick interview with the CEO,

even though this one person may have a broad view of the company and industry, the

information would represent a single viewpoint. The quality of the analysis will be

improved greatly if interviews are held with a spectrum of stakeholders such as

employees, suppliers, customers, strategic partners, etc.

SWOT Analysis Limitations

While useful for reducing a large quantity of situational factors into a more manageable

profile, the SWOT framework has a tendency to oversimplify the situation by classifying

the firm's environmental factors into categories in which they may not always fit. The

classification of some factors as strengths or weaknesses, or as opportunities or threats is

somewhat arbitrary. For example, a particular company culture can be either a strength or

a weakness. A technological change can be a either a threat or an opportunity. Perhaps

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what is more important than the superficial classification of these factors is the firm's

awareness of them and its development of a strategic plan to use them to its advantage.

7S FRAMEWORK

It's all very well devising a strategy, but you have to be able to implement it if it's to do

any good. The Seven S Framework first appeared in "The Art Of Japanese Management"

by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese

industry had been so successful, at around the same time that Tom Peters and Robert

Waterman were exploring what made a company excellent. The Seven S model was born

at a meeting of the four authors in 1978. It went on to appear in "In Search of

Excellence" by Peters and Waterman, and was taken up as a basic tool by the global

management consultancy McKinsey: it's sometimes known as the McKinsey 7S model.

Managers, they said, need to take account of all seven of the factors to be sure of

successful implementation of a strategy - large or small. They're all interdependent, so if

you fail to pay proper attention to one of them, it can bring the others crashing down

around you. Oh, and the relative importance of each factor will vary over time, and you

can't always tell how that's changing. Like a lot of these models, there's a good dose of

common sense in here, but the 7S Framework is useful way of checking that you've

covered all the bases. The Seven Factors are:

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Fig 6. 7s Model

Strategy A set of actions that you start with and must maintain

Structure How people and tasks / work are organised

Systems All the processes and information flows that link the organisation together

Style How managers behave

Staff How you develop managers (current and future)

Superordinate Goals Longer-term vision, and all that values stuff, that shapes the

destiny of the organisation

Skills Dominant attributes or capabilities that exist in the organisation

There's a lot more to the 7S framework of course, especially how you apply it in practice.

It may appear as an outmoded concept in today's environment of "constant change and

learning", but the basic principle that you've got to watch a lot of factors all the time as

you implement any strategy still applies. Just don't let the apparent rigidity of the

framework make you heavy on your feet.

For more about strategy and strategic management in general, look out "Strategic

Management" by Dess & Miller (McGraw Hill 1993). It's not a bedtime read, but is a

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useful reference work of ideas and case studies. If you want more on the 7S model, read

Richard Pascale's subsequent "Managing on the Edge" (1990).

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ANALYSIS AND FINDINGS

Marketing Strategy Analysis of NALCO

4PS of NALCO

i) Products

Calcined alumina.

Alumina metal.

Zeolite.

Special products.

Alumina hydrate.

Rolled products.

ii) Pricing

The pricing strategy of NALCO is based on:

LME (London Metal Exchange). So, the price changes according to the changes in the

LME.

Demand of the( Al )market or demand of the customers.

Pressure from competitors. As Nalco also has some strong competitors , pricing is done

by keeping a keen view on the competitors.

Overall, the pricing strategy of Nalco generally updated at a monthly basis but it changes

according to the situation.

iii) Promotion

As the companys present market is a buyers market, So its not required to spend

money. but some where as a global company it need some promotion, NALCO use to do

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some small promotional activities, which we can see in form of CSR (Corporate Social

Responsibility) like organizing cricket matches, funding journals etc

iv) Place

Under this segment we will consider about how company move its products from place

of production to place of consumption. For this NALCO has its stockyards almost all

around the country which makes its logistics more efficient.The current stockyard are

1. BADDI

2. Bangalore

3. Biwandi

4. Chennai (SY)

5. Faridabad

6. Jaipur

7. Kolkata

8. Silvassa

9. Vizag

BCG GROWTH-SHARE MATRIX OF NALCO

STAR

T.Ingots

QUSTION MARK

Billets

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CASH COW

Aluminum sows

Calcined alumina

Alumina hydrate

DOG

Rolled products

Special products

Zeolite

Fig 7. BCG Growth-Share Matrix of Nalco

SWOT ANALYSIS OF NALCO

Strengths

It has a very rich bauxite mine.

Nalco is one of the lowest cost procedure in its segment .

It is one of the pioneer in the field of aluminium

It has a strong technical man power.

It uses one of the fully integrated operations

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Strong cash reserves with no debt

Robust volume growth on back of recent expansion plans.

Being a Navratna company it has a very strong good will.

Weakness

Being a public sector company , it has a slow decision making process compare to any

private sectors.

Shortage in coal linkages has lead to higher share of imported coal at relatively much

higher price.

The conservative policy like debt-free company during an major bull run also may

hampered the Growth in long run.

Its product mix basically targeting to primary product segments.

As Nalco is now in 30th year it needs new technologies to compete.

Opportunities

Despite current crisis, India is likely to remain second fastest growing economy

Government thrust on infrastructure would also continue albeit at modest pace

Automobile, consumer durables and engineering sectors are at very nascent stage

compare to global scale

Low per capita housing and booming retail industry would drive construction demand

Low per capita aluminum consumption compare with other countries offers a higher

growth

Rich Geological Resource base

Growing Skilled and Technical Human Capital.

Threats

Instability in LME aluminum price (currently at five year low) will affect margin badly

Significant disruption in demand in developed countries from key consumer segment

Competition from scrap imports and very high threat from substitute materials particular

plastics

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Progressive reduction in aluminum import tariffs

Bureaucratic nature of Government - Socio-Political interventions (in leasing mines)

Deficit infrastructure

7S STRATEGY MODEL DESCRIBING (NALCO)

Structure: How people and tasks / work are organized. NALCO is one of the well

organized organization. The role of every employee is very clear to them. They are

aware of the performance expected from them, So according to that they perform.

Strategy: A set of plan for the future actions that you start with and must maintain.

Strategy applied by NALCO is basically a long term strategy.

System: A set of actions that is according to the strategy. In system we will consider the

flow of information. Here the flow of information is from top to bottom i.e. the decision

is taken at the upper level.

Style: How managers behave. As NALCO is one of the navaratna certified organization,

it is very simple to say the upper level employees are very much cooperative to their

subordinates, because of which they are today at this stage.

Staff: How you develop managers (current & future ). The staffing in NALCO is very

good every department is headed by different chief manager, who are really deserving ,

and further more they are again provided with junior managers who are there to provide

cooperation. So we can say the span of control is wide for the director but it is very easy

to handle because of this staffing.

Superordinate Goals: Long term vision , and all that values stuff that shapes the destiny

of the organization . Super ordinates goals in case of NALCO is same as that of the

mission of the organization.

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Skills: Dominant attributes or capabilities that exist in the organization. As the selection

procedure of NALCO is very stringent, quality people are selected as employees.

Therefore NALCO has a good reservoir of skills.

PRICING PROCEDURE OF NALCO,INDIA

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The pricing committee of Nalco(domestic),fix the price of all the products according to

the demand & supply of market, prevailing LME price, Exchange rate, Inventory status

of NALCO,Govt. Policy (Tax, Duty) along with all the term & conditions of company.

CMD (Chairman-cum-Managing Director) is authorized to make appropriate changes in

the sale of the companys products as and when necessary based on the recommendation

of pricing committee to be constituted by CMD consisting of senior officers who would

review the market situation periodically and put it recommendations for approval.

CMD has constituted a pricing committee, consisting the following officer :

Executive Director (Marketing)

General Manager (Marketing)

Dy.General Manager (Marketing-Finance)

Dy General Manager (Marketing-Domestic)

CUSTOMER SATISFACTION OF NALCO

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The very success of any enterprise depends largely on its ability to satisfy and retain their

customers. Any business without a focus on customer satisfaction is at the mercy of the

market. Without loyal customers eventually a competitor will take away your customers

and your customer retention rate will decrease. A successful enterprise knows very well

what the key drivers of satisfaction are, the areas that will have the grea test impact in

improving cus tomers overal l percept ion of our service. Bes t practice

companies also monitor customer feedbacks over time and communicate a strong

message about their commitment to serve their customer. A s p e r t h e m a r k e t i n g

c o n c e p t , a f i r m c a n r e a l i z e a l l i t s b u s i n e s s g o a l s b y

g e n e r a t i n g c u s t o m e r satisfaction. The idea may sound somewhat utopian. In

reality, it is an eminently workable proposition.

The satisfaction is a function of perceived performance and expectations. If the

performance falls short of expectations , the customer is dissatisfied. If the performance

matches the expectations , the customer is satisfied. If the performance exceeds the

expectations, the customer is highly delighted. Many companies aim for high customer

satisfaction, because the customers who are just satisfied find it better to switch to other

companies when a better offer comes along. Those who are highly satisfied are much less

ready to switch. High satisfaction or delight creates an emotional bonding with the brand.

The result is high cu stomer loyalty. Xerox s senior managemen t believes that

a very satisfied or delighted customer is worth ten times as much to the company as

a satisfied customer. A very satisfied customer is likely to stay with Xerox many more

years and buy more than a satisfied customer will.

Benefits of Measuring Customer Satisfaction

Learning strategies for improving services

Learning customer expectations

Identifying common reasons for customer dissatisfaction

Improving customer retention

Making customers feel valued

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Uncovering missed opportunities to demonstrate your capacity to solve

pro blems and win back customers confidence

Improved competitive position

Helping to decide where best to spend improvement dollars to make sureyou spend it where it matters the most.

Major Customers of NALCO ( Domestic

NALC O plays a vit al role in the In dian Alumi nium industry. The Alumi niu m

pro ducing capacity of th e country has witn esse d a quantum jump afte r the

entry of NALCO. Through its quality products it gets about 800 direct reputed

customers and some of them are cited below:

JINDAL ALUMINIUM LTD

NATIONAL SMALL INDUSTRIES CORPORATION

HINDUSTAN SEALS LTD

BAJAJ AUTO LTD

GOETZE INDIA LTD

TATA MOTORS LTD

GANGA JAMUNA LTD

HIREN ALUMINIUM LTD

STERLITE INDUSTRIES LTD

METAL POWER COMPANY LTD

SUNDARAM CLAYTON LTD

INDIA PISTONS LTD

ORDNANCE FACTORY AMBAJHARI

HINDUSTAN AERONAUTICS LTD

BHILAI STEEL PLANT

ROURKELA STEEL PLANT

VISAKHAPATNAM STEEL PLANT

BOKARO STEEL PLANT

Customer Satisfaction Strategy Overview

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When we t alk about cus tomer service or sat is fact ion, we t alk about

creat ivity. It allows us to hand le or diffuse problems at hand or later on in the

process of conducting everyday business. We talk about how or rather what the

organization has to do to gain not only the sale but also the loyalty of the customer. He

wants to know the pay of the transaction both in the short and long term. We

want to know wha t the customer wants; we want to know if our customers are

satisfied. Satisfaction of course means that what we delivered to the customer met his /

her approval. We want to know if the customer is delighted and is willing to come back.

Measuring customer satisfaction is a sound business strategy because:

It is expensive to win new customers and customer retention is critical for business

success.

It is less expensive to sell additional products and services to existing, satisfied

customers.

Problems encountered by customers negatively impact their loyalty; if we

disappoint them they may start looking for alternatives.

The customer contact centre has significant impact on customer loyalty, and in many

businesses the call centre has more contact with the customer than any other part of the

business.

Most customers will not take the initiative to complain; they will not tell

you, they will tell their friends and co-workers how good or bad you were.

Word of Mouth is the best and the least expensive way of advertising and customers

are much more likely to tell others about negative experiences than positive experiences.

Tools For Tracking Customer Satisfaction Strategy

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Customer satisfaction surveys:

Studies show that although customers are dissatisfied with one out of every four

purchases, less than five percent will complain. Most customers will buy less or switch

suppliers. Responsive companies measure customer satisfaction directly by including

periodic surveys. While collecting customer satisfaction data, it is also useful to ask

additional question to measure repurchase intention and to measure the likelihood

or willingness to recommend the company and brand to others.

Complaint & Suggestion System:

A customer-centered organization makes it easy for customers to register

sugges tions and compl aints .Some customer-centered companies establish hotlines

with toll free numbers. Companies are also using websites and e-mails for quick two-way

communication

Ghost Shopping:

Companies can have people to pose as potential buyers to report on strong and weak

points experienced in buying the companys and competitors products. These mystery

shoppers can even test how the the companys sales personnel handle various situations.

Customer Complaints

When you receive a customer complaint, you know exactly where you stand

with the cus tome r. Thi s is especially true if the organization broadly interprets

customer complaints as any negative feedback that the organization receives. Whether

the complaint is justified or not is irrelevant; perception becomes the customers reality.

But trouble starts when organizations rely on customer complaints as their jointly gauge

of customer perceptions. The weakness inherent in relying solely on complaints is two

fold. First, many dissatisfied customers simply do not bother to complain.

They have decided that it is not worth the time and effort for them to communicate

the problem. In fact, they might just decide that it is not worth the risk of placing another

order. The organization might lose a customer and not even under stand what went

wrong. And it is much more expensive to regain a customer that to retain one. Second,

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complaints, by definition provide only negative feedback. An organization cannot

understand the full range of customer perceptions based on negative feedback alone. A

system for gathering customer perceptions should present a balanced picture of where the

organization stands, which does not happen when customer complaints are isolated from

other aspects of customer relations. That being said, customer complaints can be an

effective part of an overall system for gathering data on customer perceptions. The trick

is to pair this method with at least one other, the combination of which will give an

organization a more accurate view of its status in customers minds. Two specific types

of complaints can be especially useful in maintaining an organizations success repeat

complaints (eg. Complaints about the same product, for the same reason or from the same

customer) and complaints that pose significant r isk to the organization.

Analysis of complaint data can identify these phenomena, and management can

then take appropriate action on the underlying issues. In these cases, the complaint

system becomes a critical survival barometer for the organization. When complaints are

not promptly resolved, frustrated customers seek redress in different agencies or at

different parts or levels of the same agency, resulting in duplicate effort and

compounding costs. There are costs associated with a poor complaint system and there

are benefits associated with a good one. Studies have shown that handling

customer complaints well can be a critical part of a turn around strategy. If a

complaint is handled well, it sustains and strengthens customer loyalty and the

companys image as a leader. It also tells the customer that the company

cares and can improve because of their contact. In government agencies, it

promotes public confidence in government services. Customer complaints strategies also

represent valuable information about recurrent problems. They can point the way to

understanding the root causes of customer problems.

Promotional procedure of NALCO, India :

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Basically NALCO is not spending its money in Various Advertising & promotional

activities, rather it spends money for the development of people as well as the

development of society.

Corpotate social responsibility of NALCO,India :

At Nalco, when we started our activities in Orissa 30 years ago, there was no such

nomenclature like Corporate Social Responsibility or CSR. All that we knew was our

Moral Responsibility towards the society.

But today, CSR has become a buzzword in the corporate world. More and more

organizations are waking up to this belated realization that beyond productivity and

profitability, it is the social accountability that determines their image.

Presently, even before the land is acquired and foundation-stone laid for a project, the

company launches its CSR activities in the area. It is presumed that on a solid CSR

foundation, a strong business empire can be built.

As a policy, Nalco has been allocating 1% of its net profit of the year for periphery

development activities of the succeeding year

Out of this allocable fund:

40% is for Damanjodi sector, where the companys Mines & Refinery are located;

40% is for An gul sector, where the companys Smelter & Power Plant are located;

and 20% is for other areas.

Mobile medical units of Nalco visit peripheral villages in Angul and Damanjodi sectors

and hold health camps round the year, distributing free medicines.

To foster scientific temper among rural students, Nalco takes them to Bhubaneswar and

shows them Pathani Samant Planetarium, Regional Museum of Natural History and

Regional Science Centre

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Soon after the Super Cyclone in Orissa in the year 1999, Nalco has constructed 197

Primary Schools-cum-Cyclone Shelters, under Prime Minister's National Relief Fund

Scheme.

1999: To National Defence Fund during Kargil War Rs.1.18 Cr

1999 For the victims of Super Cyclone in Orissa Rs.1.39 Cr

2001: To PM's National Relief Fund for the victims of Gujarat Earthquake Rs.1.70 Cr

2004: To Sports Authority of India towards training of Indian Contingent for Athens

Olympics Rs.1.00 Cr

2005: To PM's National Relief Fund for the victims of Tsunami Rs.2.44 Cr

2005: To PM's National Relief Fund for the victims of J&K Earthquake Rs.2.98 Cr

2008: To Chief Minister Relief Fund for the victims of Flood in Orissa Rs.5.00 Cr

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SUGGESTIONS

No body in this world is perfect. Every body needs a feedback/suggestion for their

development.

NALCO is not an exception. So, in spite of many good things there are still areas where

Nalco could improve more. Like as a public sector its decision making process is a bit

slow. Here the organization should think to make it faster to compete with the

competitors especially from private sectors. Coal and electricity one of the must needed

resources for the organization. As coal is a natural resources and now a days its amount is

decreasing so, company should think about alternatives.where as NALCO has been

already allocated Utkal-E coal blog,Orissa,for its expansion unit. Even the project was

allocated but still it not work properly.if NALCO will work in this project as soon as

possible it would have an extera advantage to the company and company may add

another new product.

Regarding electricity NALCO has signed a MOU with NTCIL (Nuclear Power

Corporation of India) for setting of Nuclear power plant in India. In joint venture for

generating and selling electric power, If this project will exercise in time then NALCO

can play a pivotal role in the power market.

NALCOs market share it has good position in its primary segment but it should modify

its product mix which will help itself to gain a good position other than primary product

segment. As NALCO is a quite old organization, it needs some technological

improvement also.

As NALCO is a cash reserve organization so the company has the opportunity to expand

its business in different segments. As now the global economic recession has affected

world business very deeply. So, the company should be always prepared to face such

kind of satiation in future.

In our report we have seen almost all of the NALCOs products are in cash cow segment,

accept T-ingots, here company has some areas of improvement and they should be

observed keenly.

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CONCLUSION

Jules Verne, the father of modern science fiction, wrote "From Earth to the Moon",

describing a manned trip to the moon over 100 years before the Apollo landings. The

protagonists' space craft is to be fired from a giant gun and they decide there is one

material which is ideally suited to the application - aluminium: "This valuable metal

possesses the whiteness of silver, the indestructibility of gold, the tenacity of iron, the

fusibility of copper, the lightness of glass.

It is easily wrought, is very widely distributed, forming the base of most of the rocks, is

three times lighter than iron, and seems to have been created for the express purpose of

furnishing us with the material for our projectile."

Aluminium industry in general and NALCO in particular have very bright future. It is

quite sure that NALCO will prove its worth and cement a good position for itself in near

future. Proper identifications of new business opportunity in the international market can

help it gain its market share. It has already taken the required measures for this purpose.

All its expansion program are the vital examples of achieving its goal of securing a good

status at the international level.

Hence the strategy part of Nalco will defiantly play a vital role in its goal achievingprocess. So, we hope this project will help full in order to increase its reputation as well

as also to fulfill the demands of the customers.

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16.0.BIBLOGRAPHY

Marketing Management Arun Sharma

Annual report of NALCO (Month, Year). Publisher.

Parichaya

www.google.co.in

www.netmba.com

www.wikipedia.com

www.nalcoindia.com

www.moneycontrol.com

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