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Graduate School of Business & Management
Gr.Noida, Uttar Pradesh
AProject Report On
A STUDY ON MARKETING OF SECONDRY & BY
PRODUCT OF BSL
(SAIL)
BOKARO STEEL CITY
Under the Supervision of: Submitted By:
GOBINDA BARMAN Prashant Kumar Jha
(Jr. Manager) Marketing (PGDBM 2nd Year)
BSL (SAIL) Roll no.-201012
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DECLARATION
I hereby declare that this Project Report titled A STUDY ON
MARKETING OF SECONDRY & BY PRODUCT OF BSL submitted
by me to the Graduate School of Business and Administration is a
bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma /
certificate or published any time before.
Prashant Kumar Jha
Roll No. 201012
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ACKNOWLEDGEMENT
I take the opportunity to express my gratitude to all of them who in some orthe other way helped me to accomplish this project. The study cannot be
completed without their guidance, assistance, inspiration and co-operation.
I would like to thank Mr. C. Srikantha (DGM, Marketing), Mr. K.K.
Sanyal (AGM, BPP),Mr. C. Prasad (C.M.M., Stores), Mr. N. Khasnobis
(Sr. Manager, SSD),Mr. A.K Mishra(AGM, S&C), Mr. N. Thakur (Sr.
Manager, Marketing), Mr. Ashok Roy (Manager, Metal Junction & E-
AUCTION), Mr Rituraj (Jr. Manager, Marketing) and Mr. Gobind
Barman (Jr. Manager, Marketing) of Bokaro Steel Plant. I also express my
thanks to the other officers and staff of the Training Institute, Bokaro Steel
Plant.
I would like to express my profound sense of gratitude to my FATHER,MR,
DHARMESH JHA and my project guide Prof. R.B.L.GOSWAMI at
GRADUATE SCHOOL OF BUINESS & ADMINISTRATION, Gr.
Noida, for guiding me as well as providing me the support to conduct this
project.
I also express my heartfelt indebtedness to all-aforesaid and to my college
EXECUTIVE DIRECTOR Sir, for providing me with such a great
opportunity to prove myself. Any omission or error in acknowledgment isinadvertent. For such oversights and lapses, my tender unconditional apology
to all.
PRASHANT KUMAR JHA .
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Contents
Sl.no Page no:-
Preface 05
1. Background of Project 06
2. The Rationale/Scope/Objective of the Study 6-9
4. Research Methodology 10-11
5. Executive Summary 12-13
Chapter 1- COMPANY PROFILE 14-35
Steel Authority of India Ltd.
Introduction
Units of SAIL
Bokaro Steel Plant & its department Products
Types of products
Necessity of Selling
Marketing Department
Function & Policies
Marketing Strategies
Chapter 2-LITERATURE SURVEY 36-47
Marketing of Secondary Product
E-Auction
Fixed Price Sale
Tender
Chapter 3- DATA ANALYSIS 48-76
Observation, Analysis & Interpretation
Chapter 4- RECOMMENDATION & CONCLUSION 77 -90
Recommendations & Conclusion
Bibliography & Appendices
Questionnaires
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PREFACE
Doing training was really an opportunity before me and where I could
understand how theoretical knowledge is used in practical and real world.
Fortunately, the company I got is a true follower of management concept and
is the largest company in its segment of the industry in India. The working
environment provided to me was extraordinary and helped me a lot in
completion of this project.
I did my summer training in the Marketing Department of BSL, where I found
that all the professionals are very much committed to their work. This helped
me a lot in getting a good deal of exposure. As I had to consult the DGM,
AGM, Managers and Supervisors, I felt a bit of problem, during the starting of
project. But the conduct and cooperation of my superiors at the work induced
confidence in me to deal with problems whenever they came. After few days,
I was confident enough to go in the customer survey and do the given work
with proficiency and acumen.
Since I had to complete my project within a limited time frame, this made meexperience the actual stress of the workplace. This I think will work as real
booster when I will be working after the completion of the course.
Working with the colleagues was a great experience as I came to know that
how a person can work as a team in a multifarious industry to achieve the
organizational goal. Indeed, I always tried to do justice with my duties. But
this could be a success, as I got continuous support from my guide as well as
other officers & colleagues.
So, at last I would like to thank my institution for providing me with the
opportunity to do summer training, I am also grateful to the BSL (SAIL) for
providing me all the assistance in completing my project.
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BACKGROUND OF THE PROJECT
We have chosen SAIL for knowing the marketing policies and procedures
being followed in BSL Marketing Department for sale of secondary products
and by-products. This study will help to make the industry flexible and also
there will be good environment in the industry through reducing the disposal
and arising of their material.
Some of the following reasons for choosing are:
To design a proper product, price, place and promotion for the by-products.
To know the market share of different by-products and strategy to enhance
it.
To find out the effective distribution channels to enhance the sale of by-
products of Bokaro Steel Plant.
THE RATIONALE OF STUDY
Reason to choose the subject To Study on Marketing of Secondary and By-
Product of BSL. Because BSL is the largest Steel manufacturing sector India
and is top ranked in the GLOBAL FORTUNE 500 COMPANIES, and study
the major contribution of secondary and By-product to total sale, which is pre-
determining for the success of the company. By selling the Secondary and By-
product in local market company is earning much revenue. It is also creating
an employment in small scale industries and developing the economy.
During my training I had to find out mode of sale of Secondary and By-
product of BSL. Primary product is sold by Central Marketing Organization
(CMO), Kolkata. It was a privilege for me to take this opportunity a
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challenging work to study and observe Marketing of Secondary and By-
products in BSL, an organization which is a unit of Steel Authority of India
Limited (SAIL) and Central Marketing Organization (CMO) is having the
Head Quarters at Kolkata.
In the recent years a number of foundries and re-rolling Mills come into
existence throughout the country. These small scales sector need the
Secondary Products as input raw material for their production. The
company has used these secondary products for manufacturing different kinds
of end products for consumption of general public. The Plant extends all types
of facilities and assistance to these small-scale units. This, in turn gives scope
for more employment opportunities.
So, at last I would like to thank my institution for providing me with the
opportunity to do summer training and also grateful to the BSL, subsidiary of
SAIL for providing me all the assistance in completing my project.
SCOPE OF STUDY
These are some of the scopes of study:
1. To assess the present marketing strategy and condition of different steel
plant.
2. To design a proper product, price, place & promotional strategy for theBy-Product of different steel plants.
3. To know the market share of different By-Product and accordingly
formulate strategy to enhance it.
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4. To assess the rate of employee satisfaction in that marketing
department.
5. To find out an effective distribution channel to enhance the sale of By-
Product & Secondary product of Bokaro Steel Plant.
OBJECTIVE OF STUDY
Every project work has certain objective behind it without any proper
objective one cannot plan its implementation. One heads to have properly well
defined objective. If the objective of the study is not proper then the whole
research is of no use. In Bokaro steel plant there is various section of
marketing department. Since I have chosen "A Study on Marketing of
secondary products and by products in Bokaro Steel Limited." Main
objectives were:-
1. Market study of secondary product and by products in BSL.
2. To know what is secondary product and what are by products and why
it is necessary to sell the secondary product and by products.
3. To know the pricing of secondary product and by products.
4. Ensuring timely dispatch of material, products, scrap etc to the potential
customers.
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5. To know the use of secondary product and by products.
6. To know the others terms and conditions for marketing of secondary
products.
7. Prospective buyers of secondary and by products.
8. Marketing strategies for selling these products.
9. To know about how to work through E-Auction.
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METHODOLOGY USED
Methodology refers to the process of doing a work in a well defined and
systematic manner. The present report uses certain procedures to find out
correct result which can be used to make effective decisions.
RESEARCH DESIGN
Research design can be defined as the arrangement of condition for the
collection of data in manner that provides relevance in research and economy
in procedures .In this study descriptive research design was used .It is
generally concerned with narration of facts and character and concerning
group of situation .It also describes the existing state of affairs. Researcher can
only report as to what has happened or what is happening and has no control
over variables.
The research methodology has following parts:
Data Collection: Primary data has been collected by interviewing DGM,
AGM, Senior Managers and Managers employed in the plant at various units
and meeting with the customers of the company. A questionnaire has also
been distributed among customer to gain insight of reality. Secondary data has
been collected by the previous and current records magazines, website
marketing department record and company annual report.
Data Tabulation: Collected data has been tabulated in a manner easy to grasp
and is in quantifiedwhenever possible.
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Data Analysis: Different statistical and non statistical techniques like
histograms and pie charts are employed to analyze the collected data.
Findings and Suggestions: Analysis of the data leads to the results and based
on that result I have provide important suggestions to company.
Limitations:
As with all research works, this study is also having inherent limitations.
The important ones are:
1. Time was a constraint for the study.
2. Unfriendly attitude of certain respondents was also major constraint.
3. The research and its findings hold good only for the relevant industry
under consideration.
4. Respondents hiding attitude also created problems with data collection.
5. The area of study is limited to Bokaro Steel City and near by districts.
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EXECUTIVE SUMMARY
The present study was undertaken to see the mode of sale of Secondary
Product and by products of SAIL (Bokaro steel plant) . Marketing
department is the newest genesis from the SAIL and attempts to reach their,
where no corporate has ever ventured so far.
The survey was conducted in Marketing Department and Sales
Coordinationdepartment. We had to find how auctions, fixed price and
tenders are used for marketing purpose BSL.
Various steps involved are as follows:
1. To know about the E-auctions of marketing departments. How they use
this technique and 60% marketing and selling is done through auction and rest
will be taken through fixed price selling and tenders.
2. Data were mainly collected by Marketing department of BSL.BSL is one
of the largest Steel manufacturing sector in India.
During our training we had to find out mode of sale of secondary products of
BSL. Primary products are sold by CMO, Delhi. We passed through variousstages of problems and difficulties to accomplish the task of project work but
it was a privilege for me to take this opportunity a challenging work to study
and observe "marketing of Secondary products in B.S.L", which is a unit of
SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in
competition environment. Customer's satisfaction like quality is a journey and
not a destination. It is essential that everyone in the company have a clear
understanding of what customer satisfaction means if the plant aim to achieve
leadership in customer satisfaction. While improved customer satisfaction is
necessary for ensuring prosperity of the company must also be recognized that
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ability of the company to satisfy its customers would depend on its ability to
continuously improve its profit and growth.
The Marketing of secondary product and By-product of Bokaro steel plant is a
pioneer attempt, based on authentic information, at chronicling the
background, origin, growth, development, performance and prospects of
Indias largest steel complex.
The study was conducted in Marketing Department, SSD, Store, BPP and
Sales Coordination department. I was to find how auctions, fixed price and
tenders are used for marketing purpose in BSL.
Mode of sale, elaborate the mammoth activity of marketing activity of
marketing department for selling the secondary and By-products and also
describe the rule and regulation followed by the BSL and customer during
online auction.
Various steps involved are as follows. To know about the E-auctions of
marketing departments. How they us this technique and 97% marketing
is done through auction and rest will be taken through fixed price.
The basic objective behind the study carried out by me is to study the major
contribution of Secondary product to total sale, which is pre-determining for
the success of the company.
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CHAPTER 1
COMPANY PROFILE
STEEL AUTHORITY OF INDIA LTD. (SAIL)
Introduction
Steel Authority of India Limited (SAIL) is the leading steel-making company
in India. It is a fully integrated iron and steel maker, producing both basic and
special steels for domestic construction, engineering, power, railway,
automotive and defense industries and for sale in export markets.
During struggle for independence, Pt. Jawaharlal Nehru, our first Prime
Minister, had a very clear vision about the role of Steel in the development of
our country. Although TATA Iron & Steel Company (TISCO) has been
establishment in 1907 marking the beginning of Indian Steel Industry
followed by Indian Steel Co. (1918), they were too small to meet the
development requirements of a big country like ours. Therefore, in the 1st
Industrial Policy Resolution of the Govt., soon after independence, Govt.
decided to establish Steel Plants in Public Sector. However, work could be
started at fast pace only in 1954, when Hindustan Steel Ltd., was formed and
three Steel Plants of 1 MT capacity each, were established with provision of
further expansion at Bokaro, Rourkela and Durgapur with assistance from
USSR, West Germany and U.K. respectively.
To improve the functioning of Steel Industry, Govt. decided to form a holding
company during 1972, which was named as Steel Authority of India Ltd.,
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(SAIL) and the same was incorporated on January 24, 1973, with an
authorized capital of Rs.2000 cr.
SAIL was formed by registration of a company under the companies Act and
not by the Act of Parliament. Govt., decided to abandon the holding company
concept in 1978 and a bill was presented to the Lok Sabha. Accordingly,
SAIL was again recognized in the following manner.
Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL International
Ltd., Bhilai Ispat Ltd., Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly
owned subsidiaries of SAIL merged into it and started functioning as Units of
SAIL.
MECON, HSCL and NMDC become independent Companies and started
functioning under Ministry of Steel. However, Kiriburu and Meghatuburu
Iron Ore Mines were attached with BSL as their Captive Mines.
Bharat Refectories Ltd. also became independent under the Ministry of Steel
and refractory units also came under them.
Thus, SAIL, at present, is having capacity of 12 MT of crude steel through its
four integrated Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Two
special steel plants at Durgapur and Salem produce a wide range of alloy and
special steels.
Marketing of the products from these plants is done through a country wide
distribution network consisting of a chain of Stock Yards and distribution
network.
SAIL today is one of the largest industrial entities in India. Its strength has
been the diversified range of quality steel products catering to the domestic as
well as the Export markets and a large pool of technical and professional
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expertise. Ranked amongst the top ten public sector companies in India in
terms of turnover, SAIL manufactures and sells a broad range of steel
products, including hot and cold rolled sheets and coils, galvanized sheets,
electrical sheets, structural, railway products, plates, bars and rods, stainless
steel and other alloy steels. SAIL produces iron and steel at four integrated
plants and three special steel plants, located principally in the eastern and
central regions of India and situated close to domestic sources of raw
materials, including the Companys iron ore, limestone and dolomite mines.
SAILs wide range of long and flat steel products are much in demand in the
domestic as well as the international market. This vital responsibility is carried
out by SAILs own Central Marketing Organization (CMO) and the
International Trade Division. CMO encompasses a wide network of 38 branch
offices and 47 stockyards located in major cities and towns throughout India.
With technical and managerial expertise and know-how in steel making
gained over four decades, SAILs Consultancy Division (SAILCON) at New
Delhi offers services and consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and
Steel (RDCIS) at Ranchi which helps to produce quality steel and develop
new technologies for the steel industry. Besides, SAIL has its own in-house
Centre for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organization at Ranchi. SAILs captive mines are
under the control of the Raw Materials Division in Calcutta. The Environment
Management Division and Growth Division of SAIL operate from their
headquarters in Calcutta. Almost all SAILs plants and major units are ISO
Certified.
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OWNERSHIP AND MANAGEMENT:-
SAIL is a public sector undertaking of the Government of India which holds
85.82% of equity. Other major shareholders are financial institutions with
7.57% stake and individuals with 3.68% stake. For complete details see
Shareholding pattern.
The Government of India owns about 86% of SAIL's equity and retains voting
control of the Company. However, SAIL, by virtue of its "Navratna" status,
enjoys significant operational and financial autonomy
INTEGRATED STEEL PLANTS :-
Bokaro Steel Plant (BSL) in Jharkhand
Durgapur Steel Plant (DSP) in West Bengal
Rourkela Steel Plant (RSP) in Orissa
Bhilai Steel Plant (BSP) in Chhattisgarh
Indian Iron & Steel Company Limited (IISCO) in West Bengal.
SPECIAL STEEL PLANTS:-
Alloy Steel Plant (ASP) in West Bengal
Salem Steel Plant (SSP) in Tamil Nadu
Visvesvaraya Iron & Steel Plant (VISL) in Karnataka
SUBSIDIARIES
Maharashtra ElectrosmeltLimited (MEL) in Maharashtra
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VISION AND CREDO OF SAIL
VISION
To be a respected world Class Corporation and the leader in Indian steel
business in quality, productivity, profitability and customer satisfaction
CREDO
We build lasting relationships with customers based on trust and mutual
benefit.
We uphold highest ethical standards in conduct of our business.
We create and nurture a culture that supports flexibility, learning and is
proactive to change
We chart a challenging career for employees with opportunities for
advancement and rewards
We value the opportunity and responsibility to make a meaningful difference
in peoples lives
VALUES OF SAIL
Customer Satisfaction
Concern for People
Consistent Profitability
Commitment of Excellence
THE SEVEN Cs OF SAIL
Consistent Quality
Committed Delivery
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Customized Product Mix
Contemporary Products
Competitive Price
Complaint Settlement
Culture of Customer Service
UNITS OF SAIL
DURGAPUR STEEL PLANT
BHILAI STEEL PLANT
ROURKELA STEEL PLANT
IISCO STEEL PLANT (ISP)
ALLOY STEEL PLANT
MAHARASHTRA ELEKTROSMELT LTD (MEL)
BOKARO STEEL PLANT
Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started
taking shape in 1965 in collaboration with the Soviet Union. It was originally
incorporated as a limited company on 29th January 1964, and was later
merged with SAIL, first as a subsidiary and then as a unit, through the Public
Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions)
Act 1978. The construction work started on 6th April 1968.
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The Plant is hailed as the countrys first Swadeshi steel plant, built with
maximumindigenous content in terms of equipment, material and know-how.
Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7
MT ingot steel was completed on 26th February 1978 with the commissioning
of the third Blast Furnace. All units of 4 MT stage have already been
commissioned and the 90s' modernization has further upgraded this to 4.5 MT
The new features added in modernization of SMS-II include two twin-strand
slab casters along with a Steel Refining Unit. The Steel Refining Unit was
inaugurated on 19th September, 1997 and the Continuous Casting Machine on
25th April, 1998. The modernization of the Hot Strip Mill saw addition of
new features like high pressure de-scalars, work roll bending, hydraulic
automatic gauge control, quick work roll change, laminar cooling etc. New
walking beam reheating furnaces are replacing the less efficient pusher type
furnaces.
A new hydraulic coiler has been added and two of the existing ones revamped.
With the completion of Hot Strip Mill modernization, Bokaro is producing top
quality hot rolled products that are well accepted in the global market.
Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled
Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill
Black Plates (TMBP) and Galvanised Plain and Corrugated (GP/GC) Sheets.
Bokaro has provided a strong raw material base for a variety of modern
engineering industries including automobile, pipe and tube, LPG cylinder,
barrel and drum producing industries.
Directions
Bokaro Steel is working towards becoming a one-stop-shop for world-class
flat steel in India. he modernization plans are aimed at increasing the liquid
steel production capacity, coupled with fresh rolling and coating facilities. The
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new facilities will be capable of producing the most premium grades required
by the most discerning customer segments.
Brand Bokaro will signify assured quality and delivery, offering value for
money to the customers.
VISION
To be a respected worldclass corporation and the leader in Indian Steel
business in quality, productivity, profitability and customer satisfaction.
CORE VALUES
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Maintenance Departments
Bokaro has centralized maintenance departments for large-scale electrical and
mechanical maintenance, in addition to shop-based maintenance wings for
running repairs and maintenance. These facilities are capable of executing
massive capital repairs, supported by the fabrication facilities of the auxiliary
shops.
Scrap and Salvage Department (SSD)
As the name signifies, the department works with Ferrous [Iron & steel] scrap
to salvage it & make it useful by adding value to it. SSD has a dual role to
play in overall scheme of things in the works division. Primarily it has to
supply Iron and Steel scrap to Steel Melting Shop (SMS) as a technological
input in the Steel Melting process. Secondly, the role of SSD is to collect all
the Ferrous Scrap (waste for the place of origin) and bring it to the department
to transform it into a useful product. Every department of the plant from Coke
Oven to Cold Rolling Mill produce mental waste termed scrap. This may be in
the form of maintenance waste e.g. broken or worn out parts, damaged
structure or equipment or may be process arising. The prime products
continue on their production flow towards the final defined output, while the
arising have to drop out as they are not suitable chemically, Mechanically or
by size and shape. In the shape of fish tails or irregular edge trimming or
produce which are below the planned size. In a nut shell SSDs role is to
ensure that all Iron and Steel Scrap (unwanted at place production) are
transported to site processed and transformed to usable shape, size and quality
(free of slag etc.) and transported SMS Magnetic Scrap Yards for using as
coolant in the converter bath
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Function of the Department
Scrap is one of the essential raw material inputs of the steel making process,
though it does not play a direct role in the chemical reaction. Yet it has a vital
role as a coolant in the process and helps the steel maker control the converter
bath temperature. This control is essential for smooth operation of the
converter. Other materials also act as coolants e.g. Iron ore, Limestone, Lime
Dolomite. They however have different effects on the process in addition to
cooling so adequate quantity of scrap is the best coolant. Hot metal chemical
composition and finished steel specification are some of the factors, which
determine the proportion of Iron and Steel Scrap to be used. In addition the
density determines whether it is light voluminous (of heavy compact) it is
desirable light scrap e.g. bales should be added first.
Various Section and their brief activities :-
The scraps are received from all of the shops and after necessary inspection
these are diverted to respective processing units of Scrap and Salvage
Department.
Processing of scrap includes Flame cutting, Bailing, Bursting and Breaking
including salvation of sticker ingots and slag cups. These processes of
preparation of scrap are carried out in different shops depending upon the
type, size and shape of the scrap.
The processing of scrap comprise of the following units:
(a)Flame Cutting Shop No.1 and 2. And bailing press.
(b)Skull Breaker Shop No.1 and 2.
(c)Bursting Yard.
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Brief description of Scrap processing Units:
a. Flame Cutting and scrap Bailing unit, and Flame cuttingShop No.2
FCI shop is equipped with one Bailing Press and five overhead magnet
cranes of capacity 15 tones each. The shop stores Bailable material as well as
manufactured bales. It has space to process crap this lancing is at the eastern
end of shop.The bailing of scrap is done with all sorts of light scrap having thickness not
more than 8 mm to get compact bales so as to charge these in L.D. Converter.
(b) Skull Braking Shop No. 1 and 2
Each skull breaker is designed for crushing of steel scrap and iron scrap. Skull
breaker 1 is an open two storied crane gantry of 24 meters width and 96
meters length. The height of the first storey of the gantry up to the head of the
crane rail is 22 meters. The first storey is common for the whole building and
the second storey is erected at the end of the section 48 meters long and is
intended for crushing of the scrap of the skull breakers. All along the columns
of the building one railway tracks are laid for the supply and dispatch of scrap
shop is divided into two parts-one is the crushing pit and the other is storage
area with the capacity to store 7 days stock. Skull breaker 11 shops are also
equipped with balling (top) crane and bottom crane for handling materials. It
is engaged for processing of scrap for SMS.The crane capacity of bally crane
is 15 t and that of bottom crane 50T/75T in shop 1 and 11 respectively. The
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skull breakers are meant for releasing mould and bottom stickers, releasing
slag cups from skulls and breaking heavy and medium skulls, ladle scrap,
runner, scrap, oversize and very often shapeless pieces of cast iron and steel
scrap, rejected ingot moulds, bottom plates, small mill rollers, machines ad
machine stand and other cast pieces. The size of the processed steel scrap
should be 300 X 600 approx.
A steel ball of 10 t weight is lifted to a height of 20 To 22 meters with the
help of a crane and then released over the scrap for breaking it. The whole
building is made of hanging wooden sleeper so as to withstand the impact of
splinters.
(c) Scrap Bursting Yard:-
The bursting Yard is provide with facilities for handling of 20,000 T scrap per
year (2/3 steel scrap and 1/3 iron scrap). The unit is located upon one spancrane gantry of 21 meters width and 41 meters length. One through track is
provided for supply and dispatch of scrap.
For scrap bursting the section is provided with reinforced pit lined with
armored plates. Bumming bursting the pit is covered with an armored cover.
Blast holes in scrap for loading of blasting charges are made by oxygen
lancing. The unit is served by one crane of 75/20T lifting capacity with a
detachable magnet on the hook.
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COLLECTION OF SCRAP
1 All scraps identify the metallic scrap generated in the production,
process and lying in the shop. The shops collected the scrap with the
help of overhead cranes and stock them for loading into wagons.
2 Rejected rails and sleepers lying near the railways track inside the plant
are collected at such points from where loading and collection by truck
is possible.
3 Crane facility is provided for loading the scrap into the truck whenever
cutting or processing not possible on the spot.
4 Scrap & Salvage department is responsible for overall coordination of
scrap collection from the entire plant. For this each shop nominate one
executive for ensuring the clearance of scrap from the shop.
5 Head of Marketing and customer service department requires the
progress on scrap collection on weekly basis. Scrap& Salvage
department makes suitable schedule for collection of scraps and
intimates the date of collection to respective shops.
COMPETITORS OF BOKARO STEEL PLANT
1 TATA STEEL
2 RINL
3 ISPAT
4 ESSAR STEEL
5 JINDAL STEEL
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PRODUCTS
TYPES OF PRODUCTS
In Bokaro Steel Plant, the finished products are categorized into three parts:
. Prime Products: -
These are the actual products, which are originally produced for example,
blooms, billets, channels, rounds, angles etc.
. By-Products: -
These products are not originally produced by Bokaro Steel Plant, but are
outcomes while producing the prime products.
. Secondary Products: -
These are the defectives or rejected materials due to improper mixing of
chemical components or fail to meet the optimum requirements. Scraps
generated inside plant are also termed as Secondary products. The secondary
products used here in after will mean ferrous materials generated from various
production units which can either suitably be used for re-melting to produce
iron and products or offered for sale if rendered surplus in production process
for example Defective Heavy blooms, Defective Rails, Rail cutting, Rod
cutting, Scrap etc.
Following Items fall under the category of Secondary Products:-
(A) REROLLABLE/IRON AND STEEL SCRAP/BFG SLAG
MS SLAB END CUTTING WITHOUT FISH TAIL
MS THICLE PLATE CUTTING (25-40 MM) MIXED W.FR.
SPILLED HOT METAL (10 MT AND BELOW) SMS ARISINGS.
LIQUID NITROGEN.
FINE IRON CHIPS FROM IMP (FE-70% APP).
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FERROUS SIELPHATE LOOSE.
BE GRNAULATED SLAJ (BOTH BY FIXED PRICE AND TENDER).
LIQUID ARGON.
PIG TRON.
TURNING & BORING.
(B) OTHERS
CARBIDE SLUDGE.
U/R AMC/MCB BRICKS.
U/R MAJ CHROME MAJ BRICKS.
(C) COAL CHEMICALS AND BY PRODUCT
MG BENZENE
NG TOLUENE
LS NAPTHA
SB OIL
HP NAPHTHALENE
ANTHRANCENE OIL
EXTRA HARD PITCH
HARD MEDIUM PITCH SOLID STATE
HARD MEDIUM PITCH LIQUID STATE
BY-PRODUCT OR CHEMICAL PRODUCT
These type of product are produced under the By-product plant. The primary
product of coke oven is to prepare coke form coal for Blast furnace. In
meanwhile various other By-products are obtained in the formation of coke
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which are processed in BBP and is converted to useful form for sale and to
earn more revenue.
Form batteries crude tar is obtained which is sent to TAR DISTILLATION
PLANT, where a number of products are obtained like:
Hot pressed naphthalene
Hard, Medium Pitch
Extra Hard Pitch
Coal Tar Wash Oil
P.C.M.
Road Tar
MARKETING DEPARTMENT OF BOKARO STEEL PLANT
Marketing Department is one of the Departments under Materials
Management Division of Bokaro Steel Plant. Marketing Department is
entrusted with the responsibilities to sell BSLs Secondary Products, By-
Products/Waste Products, and Idle Assets etc.The Marketing Departments sales procedures are covered by the guidelines
given by SAIL Corporate office DELHI, and is given by CMMG
(CORPORATE MATERIAL MANAGEMENT GROUP), the objective of
which is To sell the materials in a fair and transparent manner to achieve
maximum possible revenue to the company
Marketing of prime products of SAILs plant including BSL is done by
CMO (Central Marketing Organization) which is a unit of SAIL.
Marketing of secondary products and coal chemicals are done directly
by Marketing Department of BSL. As a matter of fact, the Secondary &
By-Products are marketed by the individual Plants only.
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Marketing of these products are conducted by various sections by marketing
department of Bokaro Steel plants. It is engaged, with marketing of Primary
Products for home sale or export through CMO. The 4.0 Million tones section
known as plate mill section dealing with plates. Now this section has got ISO
- 9002 certificate.
The secondary section deals with the secondary Products, it includes scraps of
iron and steel slag, coal and coke fractions, coal chemicals.
The Marketing development section deals with the MIS and strategic Planning
activity come under this section.
The Export section deals with the activities of the exports in respect of Iron
and Steel items produced by Bokaro steel plant.
FUNCTION OF MARKETING DEPARTMENT
1 To monitor the orders issued by CMO, So that these orders can fulfilled
in time.
2 Put pressure on CMO, to get orders for an underutilized mill.
3 To sell all the secondary products directly i.e. directly by BSL and by
CMO.
4 On day to day basis it takes care of the dispatches i.e. daily dispatch are
checked.
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POLICIES OF MARKETING:-
Marketing Planning has responsible function in the working of marketing
department. All the risky developments, taking out solution to cripple
`situations, this section carries out product pricing and related activities, some
of the programmes , policies and procedures are as follows:-
1 Positioning the product a value based place in customer mind.
2 Finalize annual sales plan and quantity, monthly, weekly, and daily
rolling programme of Rolling mills in consultation with CMO and
mills. This plan is based on the sales forecast receive from JPU SPL/
Iron and steel controller.
3 Optimizing the product-mix by proper utilization of available stocks.
4 Receiving Enquiries and complaints, cancellation of orders etc.
5 Coordinating the works of mills and traffic department so as to
maximize dispatches.
6 Co-ordinations with CMO from stages of enquiry, for exports,
development of new Profiles, sections, modification of product
scheduling till the orders are completed.
7 Development of new qualities of steel.
8 Periodical market surveys of products to analyze the market position.
9 Implementation of suggestions received from the customers feedback.
10 Ensure customer satisfaction by meeting customers regularly; provide
redress to their problems and fulfillment of demand.
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DistributionFor the purpose of distribution of steel (as per JPC) policy in fashion,
customers are categorized into A, B, C & D. Priority sector customer e.g.
Defense, Railways etc. are under category A and about 60% of the product
allotted to them. The balance 40% is kept for the category B, C & D.
On the other hand for sale of scraps there is no such policy adopted by Bokaro
Steel Plant. Customers are served on first come first served basis.
Channels
Bokaro steel plant has zero level channels as it directly sells to the customers.
There is no intermediate among producer and consumer. Marketing
Department always remains in contact with the customers extracts
information about the current market situation on the basis of interaction
between them.
Sales Promotion
Sales Promotion consists of a diverse collection of incentive tools designed to
stimulate quicker or greater purchase of particular product. As a part of
promotional activities, BSL is employing following activities:
a) Discount slabs is provided to boost the sales, description of which is
given below: Up to 10,000 tones ----- No Discount
10,000 to 15,000 ----- 15% Discount
Above 15,000 ----- 20% Discount
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b) To find new customers and to inform customers at far distant areas
Tender Notice given in the newspaper for sale of scraps. Best among the
application is accepted with a view to get the best revenue.
c) Sometimes when new item is to be sold sales notice is given in the
newspaper. But most of the time local customers get informed from other
customers.
SWOT Analysis of BSL
STRENGHTS:
1 SAIL has a customer friendly approach and improved customer
orientation.
2 SAIL is in market for a long time and having long term relation from
the customers.
3 SAIL, BSL never comprises regarding QUALITY so it has superior
quality.4 There is a well balanced co-ordination and interaction among various
marketing department.
5 An advanced technological support is provided to marketing
department.
6 The brand name SAIL has goodwill in national and international
market, for both primary and secondary products.
7 Its widespread marketing centers all over the world have placed the
marketing department of BSL in for-front.
8 It has countrywide network of stockyard and dockyards / branches
/customer can take material from any location.
9 Management to ensure proper planning and its implementation.
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WEAKNESS:
1 Due to its large organizational structure, which involves numerous
policies and officials it becomes difficult to take decision quickly and as
a result final decision making becomes very slow.
2 The working marketing officials are not given due recognition .Lack in
an appropriate reward that hurts their motivation and interest.
3 Due to its large organizational structure involving numerous policies
and officials, prompt decision making is a real problem.
4 Complex pre and post sale activities repel probable customers.
5 Quality of product which is slightly inferior as compared to
competitors who are having latest technology.
6 Sometimes products are not supplied as per requirement of customer.
OPPORTUNITIES
1 There is growing demand for secondary and by-product in both
domestic and international market.
2 With the progress of research in the field of secondary product the
utility of these products has increased.
3 All departments must go in for well-planned modernization.
4 With the opening up of new market can be discovered.
THREATS:
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1 Competition has grown very tough with MNC entering into the
domestics market.
2 There is tough competition with national and international petro based
companies.
3 Excessive delay in execution of order and dispatch has lead to shift of
regular customers.
4 Main thrust of SAIL is on marketing of its primary product: so
secondary product marketing is not taken seriously. Sales of secondary
product are just considered as an additional income.
5 Secondary products are available at cheaper rate in international
market, with the opening up of the economy customers have the
freedom of choice and thus due to price factor they go for international
market.
Chapter 2LITERATURE SURVEY
MARKETING OF SECONDARY PRODUCTS
During the seventies and sixties when the plant was one million-tones and2.5
million-tones capacity respectively, arising of secondary products was limited
and such arising was recycled for re-melting. Therefore there was no scope for
marketing in other words it was not economical. The plant capacity has been
increased from 2.5 million tons to 4 million tones in the late sixties. New
technology has been adopted while increasing the capacity of the plant where
by the use of arising for re-melting drastically reduced. This has given more
impact to the making of secondary product.
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In the nineties we have seen lot of changes in the economic scenario of the
country. The concept of more employment in Public Sector Enterprises has
changed to more profits. There by the plant also has geared up its strategy
towards this end. One of the strategies adopted by the plant for increasing the
profit is marketing of secondary products.
In the recent years a number of foundries and re-rolling Mills come into
existence throughout the country. These small scales Sector need the
"Secondary products" as input raw material for their production. The company
has engaged in educating them the use of secondary products for different
kinds of end products for consumption of general public. The plant extends all
types of facilities and assistance to these small-scale units. This, in turn gives
scope for more employment opportunities.
The plant for marketing has adopted following strategy:
Committed delivery.
Competitive price
Quick complaint settlement.
Culture of customer service.
PLANNING FOR SALE OF SECONDARY PRODUCT
1 Marketing Recovery Department (MRD) works out the quantum of
different types of scrap available for sale on monthly basis. This is
determined by ascertaining the total scrap stock at the beginning of the
month. Scrap arising during consumption. The remaining quantity is
considered for sale. A, monthly report on availability of scrap is
prepared by MRD and sent to marketing department.
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2 Marketing Department finalizes the plan for actual quantity of scrap to
be sold in consultation with MRD. Marketing department finalizes
mode of sale, terms and conditions for sale, locations and commercial
aspects.
3 The pricing committee consist of Managing Directors fixes the price of
each type of scrap.
4 Marketing department obtains MD's approval on price fixed by pricing
committee.
PROCEDURE APPLIED FOR SALE OF SECONDARY PRODUCTS
1 After obtaining approval of quantity and price for sale, Marketing
department scrutinizes the demand from various parties, examine the
Priorities and issue "offer letters" to respective parties. The terms and
conditions for sale are also enclosed with the "offers Letter"
2 About one third of the quantity of material to be sold during the year is
offered to the actual users, subject to registration of demand.
3 For the balance quantity to be sold at prices fixed by pricing committee,
preference is given to actual users over traders. If there are no actual
users, the material may be offered to traders giving preference to
registered traders over others.
4 First preference is given to the actual users for allotment of scrap
against particular category of users. Scrap processing units are given
second preference for such allotments.
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5 The amount received from the party towards advance payment and
security deposit is forwarded to finance department by marketing
department after recording the details in the register.
DEMAND REGISTRATION OF BSL
Marketing department of BSL sales homogeneous steel scrap at fixed price.
For this purpose the procedure for registration of demand and offers is as
below:
Preference for sale of material given to local parties and those, which
are actual customer. Material is not sold for trade.
1. Sale of material made to re-rolling mills and scrap processing units and
the lots of sale between them maintained at 67:33.
2. Based on the above consideration offer letter issued to the party
offering a quantity, which has been lifted by them during the last
preceding year or allocated by the state industries, Department. In the
offer letter party is advised to complete commercial formalities e.g.
submission of Die Registration Certificate etc.
Selling of Secondary & By-Product:- This involves a direct marketing
process. The management of BSL in consultation with the official of the
market development and customer service department work as group for the
sale of these items. Different modes of selling are used for these products
E-AUCTION
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ABOUT METAL JUNCTION
Corporations across the world have realized that in a world without
boundaries, certain regions and people with distinct competencies will be
more efficient than others and therefore the visible trend in the world today is
outsourcing. Companies are outsourcing manufacturing activities, customer
services, back office operations and a host of other activities, either because
there is someone else who can do the same thing for less, or, there is specialist
who can offer services of higher quality. Industry has recognized that whilst it
has to concentrate on growth, a prerequisite is to become globally
competitive. Industry has to, on the one hand, concentrate on its core
competencies of bringing about efficiencies in manufacturing and on the other
hand look at bringing about efficiencies in their Supply Chain which is their
buying and selling processes. Metal junction operates at the extreme ends of
the value chain and hence it was essential to segregate the organization into
two Major Business Units (Commerce junction and Metal junction) so as to
independently focus on:
Specific Requirements of Clients/Customers
Specific procedures for both the functions
Knowledge and Information management for the two
functions
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Procedure of E-Auction
Advertisement/posting of dates and types of materials to be auctioned in SAIL
website and various news papers (Local & National) every 15th to 20th of the
month for the next month,
Posting of details of lots to be auctioned one week prior to the date of
auction, on the website of SAIL and metal Junction.com
Inspection of lots to be auctioned by customers.
Auction is held on www. Metal Junction.com
Report of auction conducted is give by Metal Junction.com
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Meeting of reserve price opening committee and their recommendation.
Approval for sale of lots recommended by RP opening committee.
Issue of offer to the customers, based on approval of chief Executives.
In this method the defective materials from all the mills is arranged in heaps
of 100-150 tones to be sold by auction. Generally auction sale takes place
ones in a month. Representative from all the re-rolling mills turn up during
auction and they bid for the available material. The raw material need of this
mill is being made by the plant and the availability of the re-rollables has
increased the re-rolling mill to develop very fast. The plant extends all types
of facilities and assistance to these small scale units, which to turn give scope
for more employment, and then the material is lifted on the terms and
conditions as mentioned in the tenders.
FLOW CHART OF E-AUCTION :-
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DEFINITION OF KEY TERMS
Auction.
Auction refers to a forum where the requirement for one/more lots of an
item is stated and the participants (bidders) are required to bid down the price
to be selected to supply the requirement.
Online Auctions.
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Online auctions refer to those auctions conducted through the Internet
with the bidders (from one or more locations) simultaneously bidding to be
selected for supplying the item/s on auction. In other words, the venue for the
auction is on an Internet website/ platform. The "Service Provider's" website
assigned by "Service Provider" would constitute venue for the purpose of the
online auction.
Award at the Auction.
In a single winner format, only one bidder (normally the bidder who
quotes the highest price) is awarded all the units of the item being auctioned.
The bidder quoting the highest price is normally allotted the item.
Client.
Client is the individual/business entity who has contracted "Service Provider"
to conduct such auction. In case of auction, the purpose would be the genuine
intent to sell the selected items/Lot to the bidders desiring to buy these items
from the Client.
Bidder.
Bidder is the individual/business entity participating in the auction,
intending to buy the items/Lots from the Client. To be become a Bidder in the
auction, a business entity has to secure client approval for participation and
also provide written assent to the General Rules and Regulations
Auction Engine.
Auction Engine refers to the software that encapsulates the entire
auction environment, processing logic and information flows. "Service
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Provider" is the sole owner of the auction engine and retains exclusive right
over the utilization of the same.
Timings of the Online Bid.
All the timings of the Online Bid shall be based on the time indicated by
the Server hosting the Auction Engine. It shall be the endeavor of "Service
Provider" to ensure that the Server Time reflects as closely as possible the
Indian Standard Time (IST) i.e. GMT + 0530 hrs. However, in the event of
any deviations between the Server Time and the Indian Standard Time, the
functioning of the Auction Engine
(Launch, operation, and closure) would be guided by the Server Time. Bidders
are advised to refresh both the windows of the Auction Module check the
exact Server Time (displayed in both the windows).
Preview Time.
Preview Time refers to the period of time that is provided prior to the
commencement of bidding. This is to facilitate approved participants to view
the auction details such as item specifications, bidding details and bidding
rules. The purpose is also to familiarize participants with the functionality and
screens of the auction mechanism. It is not mandatory for "Service Provider"
to provide Preview Time.
Start Time.
Start time refers to the time of commencement of the conduct of the
online auction. It signals the commencement of the Price Discovery process
through competitive bidding.
Duration of the Auction.
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It refers to the length of time the price discovery process is allowed to
continue by accepting bids from competing bidders. The duration of the
auction would normally be for a pre-specified period of time. However, the
bidding rules may state the conditions when the pre-specified duration may be
curtailed/ extended. The conditions include:
Shortening of auction duration in the event of no bids for a specified period
of time (Inactivity Time)
Automatic extension in the event of bids being entered towards the end of the
scheduled duration to facilitate the other bidders to view and react to the bid.
Auto Extension of the Auction Timings.
In the event of bids in the last few minutes of the scheduled bid time, the Bid
Timings are automatically extended for a specified period from each such bid.
Such Auto Extension shall continue until no bids are placed for the specified
period (Engine remains inactive for the specified period). The Inactivity Time
for Auto Extension purpose is normally X minutes. "Service Provider"
however retains the right to change the same. The Inactivity Time applicable
for the particular Online Bid shall be visible to the bidders under the Bidding
Rules module on the engine.
End of the Auction.
End of the Auction refers to the termination of the auction proceedings
signaling an end to the price discovery process
TENDER
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TENDER DOCUMENT
TERMS & CONDITIONS
The parties desirous of purchasing the material have to quote for entire
quantity of the material.
1. The Tenderers are advised to inspect the material at B.F. Slag Dump, if
so desired, before submitting the quotations.
2. Parties will be permitted to see the materials from 9.30 Hrs to 4.30 Hrs
daily on working days. Necessary entry passes may be obtained from
the Receptionist/ CISF
3. Terms of sale: On As is where is basis ", " No complaint basis and
Ex-works basis" No PICK and CHOOSE shall be allowed other than
sorting out Iron/Steel pieces found, if any.
4. The conditional quotations are liable to be rejected.
Earnest Money:-
EMD (Earnest Money Deposit) Rs.100000/- for the item to be
deposited in the form of DD/BC/PAY ORDER in favors of
SAIL/Bokaro Steel Plant, payable at Bokaro, from any Nationalized /
Scheduled banks along with the quotations. Any variation / demand in
such taxes, duties, levies, and charges and / or any fresh imposition of
such taxes, duties, levies and charges shall also be to the account of the
bidder to whom the tender is awarded.
The tenders should quote their rate in per cubic meter against the total
quantity as asked for in the tender document both in words and figures.
In case of any mismatch / ambiguity between the two the higher of the
two rates only shall be considered.
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The tender should be submitted in the TENDER BOX placed inside the
CONFERENCE HALL OF MARKETING AND STRATEGIC
PLANNING DEPARTMENT on the 5th floor of ISPAT BHAWAN..
5. Payment Terms
The successful bidder has to make payment for the quoted quantity in
12 (twelve) equal installments of 1000 CU. each. 1st installment is to be
deposited within 10 (Ten) days from date of issue of sale order
inclusive of the date of issue of sale order. Subsequent installments are
to be deposited within 30 (Thirty), 50 (Fifty), 70 (Seventy), 90 (Ninety),
110 (One hundred ten), 130 (One hundred thirty), 150 (One hundred
fifty), 170 (One Hundred seventy), 190 (One hundred Ninety), 210
(Two Hundred ten) & 230 (Two Hundred Thirty) days from the date of
issue of sale order (inclusive of the date of issue of sale order).
However, lifting of entire quantity of material has to be completed
within the validity period of 300 (Three Hundred) days from the date of
issue of sale order (inclusive of the date of issue of sale order).
Payments shall be in the form of DD/BC/Pay order or
acknowledgement note from SBI, IFB commercial, Branch of Raipur
/Bokaro payable at Bokaro from any of the Nationalized / Scheduled
banks in favor of SAIL /Bokaro Steel Plant. In case of failure of
payment as mentioned above and or failure in lifting of material within
the validity period of lifting, the Management reserves the right to
cancel the sale Order and forfeit the security deposit.
6. Loading and transportation:
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Loading and transportation of the material in the tenderer vehicle has
also to be done by the tenderer at their own cost and arrangements.
Successful customer will be allowed to lift the material only 4 days in a
week.
7. Bokaro Steel Plant reserves the right to accept or reject any of the
tenders or all the tenders or award contract to any other customer fully
or partially without assigning any reason.
8. The management reserves the rights to divide the quantity offered for
sale and allot the material to more than one tenderer.
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CHAPTER 3
DATA ANALYSIS & MAJOR FINDINGS
OBSERVATION, ANALYSIS AND INTERPRATATION
In which category of customer do you belong?
a)Trader
b)Manufacturer
c)Processor
d)Others
Trader 36
Manufacturer 24
Processor 16
Others 04
From the above data it shows that 45% falls in the category of Trader, 30%
in the category Manufacturer, 20% in the category Processor and 5% in the
category others. So its main customer are Trader and Manufacturer
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Why do you prefer to purchase from BSL?
a) Quality
b) Cheap transportation
c) Local market
d) Low price
Quality 32
Cheap transportation 16
Local Market 26
Low price 06
Quality Cheap
transportation
Local Market low price
32
16
26
6
40 % customers are prefer to purchase due to quality product from
BSL, 20 % prefer product due to cheap transportation cost , 32.5% are
prefer to purchase product because of local market, 7.5% prefer due to
low price of the product. Maximum customer prefers due to quality so
the company should try to provide quality product inorder to maintain
the existing customer and gain new customer.
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Are you satisfied with the quality of the product?
a) Yes
b)NO
Yes 62
NO 18
77.5 % are satisfied with the quality of the product provided to them by
BSL , 22.5% are Not satisfied with the quality of the product they are
concerned with. So to maximize customer company need to improve the
quality.
Are you dealing with any other steel company?
a) TATA b)RINL
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c) ESSAR STEEL d) OTHER e) JINDAL STEEL
TATA 40
RINL 08
ESSAR STEEL 10
JINDAL STEEL 12
OTHERS 10
TATA RINL ESSAR
STEEL
JINDAL
STEEL
OTHERS
40
8 1012 10
dealing with other steel company
Customers also deals with some other company to fulfill their
requirements (other than BSL) like 50% deals with TATA ,10% with
RINL, 12.5% with ESSAR STEEL, 15% JINDAL STEEL , 12.5% with
others company. So the company is facing tough competition from TATA
steel and a big competitor of SAIL-bokaro.
What type of products do you purchase from BSL?
a) Secondary steel
b) By-products
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c) Slag
d) Idle assets
Secondary 46
By Product 22
Slag 08
Idle assets 04
Secondary By product slags Idle assets
46
22
8 4
purchased product
The above data shows that 55% customers prefers to purchase Secondary
product, 27.5% By product, 10% Slag and 5% Idle assets from BSL. so
the company should concentrate on the customers of secondary product
as it generates maximum revenue.
Your Company deals with-
a) Customer b) Other company c) Wholesaler d) All of the above
Customer 24
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Wholesaler 40
Other company 10
All of the above 06
Above data shows that 50% Company deals with the Wholesaler, 30 %
deals with the customers, 12.5% with other company and rest 7.5% dealswith the all of them. So wholesaler are main customer
b) Considering your experience with BSL, how would you rate the
overall quality of the product provided by the selected company?
a) Excellent
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b) Very good
c) Good
d) Fair e)Poor
Excellent 8
Very good 10
Good 12
Fair 26
Poor 24
0
5
10
15
20
25
30
Excellent Very good Good Fair Poor
8 1012
26 24
Customers experience with BSL regarding the quality of product
companies, Customers stated that 32.5% provided fair quality of the
product, 15% provided a good quality product , 10% provided Excellent
quality,12.5% provided very good quality of the product, 30% provide
poor quality of the product as compare to the BSL. So the company need
to work on quality in order to maintain the existing customer.
c) Considering the overall quality of product in relation to its price,
how would you rate the value offered?
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a) Very good b)Good c)Neutral d)Bad e)Very
bad
Very good 04
Good 16
Neutral 32
Bad 16
Very bad 12
The data states about the value offered by the company i.e quality as
compare to the price of the product 40% customer stayed Neutral,20%
says good and Bad as well ,15% says very bad as compare to the BSL. So
the company should work on pricing and quality of products.
d)Are you satisfied with your association with BSL?
a) Very satisfied b)Satisfied c)Neutral d)Dissatisfied
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e) Very dissatisfied.
Very satisfied 14
Satisfied 24
Neutral 28
Dissatisfied 10
Very dissatisfie 04
0
5
10
15
20
25
30
14
2428
104
35% customers stayed Neutral with their association with the BSL, 30%
satisfied ,17.5% are Very much satisfied with their association, 12.5% are
Dissatisfied with their association with BSL regarding the product &
5% they says they fully very dissatisfied with their association with the
BSL. Customer satisfaction level need to be increased by providing betterservice and quality product.
For what purposes do you use the by-products purchased from
BSL?
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a) Trading
b)Consumption.
Trading 56
Consumption 24
The above data states that 70% customers are using by-product for
trading purpose and 30% using for consumption .
e)Which mode of sale you/your company prefer from BSL?
a) Fixed price
b)E- auction
c) Open tender
Fixed Price 62
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E- Auction 10
Open tender 08
77.5% customers says they prefer fixed price mode of sale, 12.5% says
they prefer E-auction process and 10% they prefer open tender process.
But maximum sale is done through auctions so company should change
the mode of sale if possible for customer convenience .
.What mode of transportation is you using?
a) Railways
b)Roadways
Railways 12
Roadways 68
0
10
20
30
40
50
60
70
Fixed Price E-auction Open tender
62
108
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85% customers are using Roadways as mode of transportation, and 15%
are using Railways for transportation purpose.
How you / your company come to know that B S L is
going to come up with E-Auction of Product?
a)Online from website b)From Newspaper
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c) From Marketing department of B S L d) Other (please
Specify)
Online from website 38
From Newspaper 20
From Marketing department of B S L 16
Other (please Specify) 6
47.5% customer came to know through Online from BSL website about
E- auction for sell of the product, 25% knew through Newspaper, 20%
knew from marketing department of BSL, and rest 7.5% knew through
the others method.
Have you faced any difficulty while dealing with BSL?
a) Always
b) Very often
c) Sometimes
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d) Rarely
e) Never.
Always 22
Very often 18
Sometimes 16
Rarely 14
Never 10
0
5
10
15
20
25
22 18 16 14 10
27.5% customers said that they are always facing problem while dealing
with the BSL, 22.5% customers are facing problems very often , 20%
customers are facing problems sometimes , 17.5% customers they facing
problem rarely, and 12.5% are never facing any kind of problems while
dealing with the BSL. Customer are facing problem while dealing with
BSL so better service and quality product can solve the problems of
customer.
Did you complain about the problem faced?
a) Yes
b) No
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Yes 54
No 26
0
10
20
30
40
50
60
Yes No
54
26
67.5% customers said that they complained about the problem, they
faced, and 23.5% customers never complained about these problems. So
the complains should be solved in order to satisfy its customer.
Did your complaints was solved?a) Always
b) Very often
c) Sometime
d) Rarely
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e) Never
Always 34
Very often 22
Sometime 12
Rarely 08
Never 04
Always Very often Sometimes Rarely Never
3422
12 8 4
problem solving
47.5% they said their complaints were always solved by the BSL, 27.5%
customers said their complaints were solved very often by the BSL, 15%
says their complaints were solved sometimes, 10% says their problems
were solved rarely and 5% said their complaints were never been solved
by the BSL.
Are you satisfied with refund of claim process of BSL?
a) Very satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
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e) Very dissatisfied
Very satisfied 10
Satisfied 12
Neutral 16
Dissatisfied 22
Very dissatisfied 20
0
10
20
30
10 12 1622 20
27.5% customers said that they are dissatisfied with the claim process of
the BSL, 25% are very dissatisfied with the claim process, 20% are
neutral about claim process, 15% are satisfied with the claim process and
12.5% are very satisfied with the claim process of the BSL. So the
maximum no of customer are not satisfied with the claim process
followed by the department hence claim process should be made easier
and convenient.
How important is your association with BSL with respect to
your business ?
a) Very important
b) Important
c) Neutral
d) Not very important
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Very important 6
Important 42
Neutral 26
Not Very Important 6
0
5
10
15
20
25
3035
40
45
Very Important Important Neutral Not Very
Important
6
42
26
6
52.5% said it is important to be associated with BSL with respects to their
business ,32.5% stayed neutral ,7.5% customers said it is very important
for them to be associated with the BSL with respects to their business and
6 % said it is not very important for them.
How often you purchase from BSL?
a) Very often
b) Often
c) Sometimes
d) Rarely
Very often 18
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Often 42
Sometimes 14
Rarely 6
0
5
10
15
20
25
30
35
40
45
Very Often Often Sometimes Rarely
18
42
146
52.5% said that they often purchase products from BSL, 22.5% said they
purchase product very often from BSL and only 7.5% said that they
rarely purchase product from BSL.
Considering your experience with BSL, how would you rate
the overall quality of the customer support provided by the
BSL?
a) Excellent
b) Very good
c) Good
d) Fair
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e) Poor
Excellent 32
Very good 14
Good 20
Fair 8
Poor 6
0
5
10
15
20
25
30
35
Excellent Very good Good Fair Poor
32
1420
8 6
40% customers rated customer support provided BSL to be excellent,25% customers rated overall quality support provided by the BSL to be
good, 17.5% rated customers support to be very good, 10% rated Fair
customers support and 7.5% said customer support to be poor that is
provided by the BSL
Considering the overall quality of product in relation to its
prices, how would you rate the value offered?
a) Very good
b) Good
c) Neutral
d) Bad
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e) Very bad
Very good 5
Good 24
Neutral 36
Bad 12
Very bad 3
0
10
20
30
40
Very good Good Neutral Bad Very bad
5
2436
123
45% remained neutral about the product related with respect to its price,
30% rated quality to be good as compare to the price of the product, 15%
said quality of the product is bad as compare to the price of the product,
6.25% said that quality of product is very good as compare to the price,
3.75% of customers complained about very bad quality of product as
compare to the price of the product.
Would you like to continue purchasing from BSL in future?
a) Extremely likely
b) Very likely
c) Somewhat likely
d) Not very likely
Extremely likely 22
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Very likely 28
Somewhat likely 12
Not very likely 8
0
5
10
15
20
25
30
Extermely Very likely Somewhat
Likely
Not very
likely
2228
12 8
35% customers said that they are very likely to continue the purchase of
product from BSL, 27.5% said that they are extremely likely to continue
the purchasing, 15% said that they are somewhat likely to continue
purchasing from BSL, 10% are not very likely to continue the purchasing
product from BSL. So maximum customer are likely to continue with
BSL but the department should be concerned about the customer who
are not likely to continue.
All other factors remaining same, how likely are you to
increase your current purchase of the product from BSL?
a) Extremely likely
b) Very likely
c) Somewhat likely
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d) Not very likely
Extremely likely 16
Very likely 14
Somewhat likely 36
Not very likely 04
0
10
20
30
40
Extermely
likely
Very likely Somewhat
likely
Not very likely
16 14
36
4
45% Customers are somewhat likely to increase their current purchase of
the product from BSL, 20% are extremely likely to increase their
current purchase, 17.5% are very likely to increase their current
purchase of the product from BSL, 5% are not very likely to increase
their current purchase of the product from BSL.
Would you be recommending BSL product to others?
a) Definitely recommending
b) Would recommend
c) Neutral
d) Probably not
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Definitely recommending 24
Would recommend 34
Neutral 12
Probably not 10
0
510
15
20
25
30
35
Definitely
recommending
Would
recommend
Neutral Probably not
2434
12 10
42.5% customers said that they would recommend the BSL product to
others, 30% customers said that they would definitely recommend the
BSL product to others, 15% gave neutral response about it , 12.5%
customers said that they would probably not recommend the BSL
products to others.
How do you rate the Marketing department of BSL?a) Excellent
b) Very Good
c) Good
d) Fair
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e) Poor
Excellent 30
Very Good 14
Good 22
Fair 8
Poor 6
0
5
10
15
20
25
30
Excellent Very Good Good Fair poor
30
1422
8 6
37.5% customers rated the marketing department of the BSL to be
excellent, 17.5% customers rated the work done by the marketing
department to be very good ,27.5% said the work done by the marketing
department to be good, 10% said that work done by the department is
fair and 7.5% rated it poor.
How much time is taken to solve the complaint?
a) Within 2 days b) Less than a week
c) 10 days d) 10days-30days
e) More than a month
Within 2 days 8
Less than a week 16
10 days 10
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10days-30days 38
More than a month 08
05
10152025303540
816 10
38
8
Above data states about the time taken to solve the problem in which
about 47.5 % complaint that it takes longer time to solve their complaints
i.e 10-30 days. only 10 % said that they respond quickly. So the time
taken by the department for complaint settlement should be reduced in
order to maintain its customer.
MAJOR FINDINGS
RELATED TO MARKETING DEPARTMENT :-
1. Policies and strategies to create awareness among the customers about
the product are not effective.
2. All marketing procedure of prime products are decided by SAIL and
carried out by the central marketing organization (CMO).
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3. As the organization is concerned with the large number of production
activities and the departmental work are done mostly manually from
placement of orders to documentation, which ultimately frustrates the
employees.
4. The organization is more concerned with large orders of steel products
by ignoring the smaller ones.
5. Due to improper packing the materials reach the stockyard often in
damaged condition which is attracting criticism from the customers and
then sold with loss.
6. Export considered secondary to domestic selling as BSL is a govt.
undertaking and its First priority is given to domestic marketing.
7. The executive of marketing department are not doing their work with
responsibility
RELATED TO SECONDARY SECTION
1 Payment is accepted from the customers even when the material is not
available in stock, in anticipation that it will be made available shortly
in the stockyard.
2 Unavailability of material in the stockyard leads to holding up of the
huge investment of the customers.
3 Refund of excess payment takes sometimes more than a year.
4 Price list made available to the re-rollers every month contains even the
price of materials which is not available.
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5 The price prevailing in the market of the finished goods manufactured
by the re-rollers are sometimes less as compared to the material
purchased from BSL which results in losses.
6 The traders are secondary products are not satisfied with the marketing
department due to delay in their re-fund payment.
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CHAPTER 4
RECOMMENDATIONS & CONCLUSION
RECOMMENDATION:
After the analysis and major findings, Ive been able to make the following
recommendations for SAIL in order to improve efficiency and effectiveness in
marketing of secondary and by-products which are as under;
1 Identification of key end user segments e.g Rerolling industries,
chemical industries, consumer durable etc and provide product
accordingly.
2 The pricing as well as the distribution policies should be framed by
keeping in mind the requirements of the complete range of
manufacturers and not only the bulk consumers. This will encourage the
new re-rolling mills to approach BSL for the material.
3 Alternatively if the material is not available the BSL authorities should
not accept the payment so that the buyer can approach some other
sources for procuring the material.
4 Representatives from the member of the rolling mills association can be
introduced in the committee formed for pricing the various secondary
products .That representative holds the complete picture of the products
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as placed in the market and the prices fixed with his consent will be on
rational grounds and acceptable to all.
5 Price of the material for which 100% payment has been received as
advance should not be changed if the delay in the lifting of the material
by the party is due to some fault of BSL, but if is due to deliberate delay
in lifting the material by the customer than the same policy should be
applicable.
6 BSL can appoint 2-3 authorized stockiest trading practice. In this way
the benefit to break up pricing can be passed on to the one whom these
have been framed.
7 Creating product awareness through print media, hoarding, industrial
magazines etc.
8 Refund of excess payment process should be improved and simplified.
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A Framework for servicing of secondary products & By-
product
STEP 1:-
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STEP 2:-
STEP 3:
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CONCLUSION
In the past weeks during my training, I have visited the site of Bokaro Steel
Plant. It was the privilege for me to take this opportunity a challenging work
to study and observe Marketing of Secondary & By-Products in BSL which
is a unit of SAIL.
Bokaro Steel Plant recognizes that leadership is essential for survival in
competition environment. Customers satisfaction like the quality is a journey
and not my destination. It is essential for everyone in the company have a
clear understanding of what customer satisfaction means if the plant aim to
achieve leadership in customer satisfaction.
By selling the secondary Product in the local market is earning revenue ,but
actually it shows lack of effectiveness of production process so production of
secondary product should be reduce to minimum level. Because primary
products generates more revenue and damage in it lead to secondary product.
The basic objective behind the study carried out by me is to study the major
contribution of secondary & by-products to total sale, which is predetermining
for the success of the company of the company. By selling the secondary &
by-products in the local market is earning revenue. It is also creating an
employment in small scale industries and developing the economy.
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Customers satisfaction would happen when the management fulfils the
following dimensions:
Delivery in time
Product mix according to customer requirement
Flexible pricing policies
Complaint settlement
Culture of customer service
BIBLIOGRAPHY
REFRENCES:-
MARKETING MANAGEMENT-PHILIP KOTLER
MARKETING MANGEMENT REPORT- (Sail Report Bokaro, 2010-11)
STEEL SCENARIO JOURNAL-2010-11(Annual Journal Of Sail)
SAIL NEWS MAGAZINES-(2010-11 Sail Magazines)
WEBSITES:-
www.sail.co.in
www.metaljunction.com
www.steelrx.com
www.bokaro.nic.in
www.steel.gov.in
www.tisco.com
www.worldsteel.com
www.economictimes.com
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APPENDICES
SAIL - Steel Authority of India Limited.
TISCO - TATA Iron and Steel Company.
MECON - Methodological & Engineering consultants ltd.
HSC - Hindustan steel works consultants Ltd.
NMDC - National Mining Development Corporation ltd.
RDCIS - Research and Development Centre for Iron and Steel.
CET - Centre of Engineering and Technology.
CPTI - Central Power Training Institute.
MRD - Marketing Recovery Department.
BFGS - Blast Furnace Granulated Slag.
LOC - Letter Of Credit
MM - Material Management
RR Railway Receipt
PC Price Circular
SC - Sale Coordination
