“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Table of Contents •
Executive Summary
•
An Overview of the Steel Industry o Global Scenario o Indian Scenario
•
Imports and Exports
•
Duties and Levies
•
Indian Steel Rolling Scenario
•
Rukminirama Steel Rollings Pvt. Ltd. o SWOT Analysis o Manufacturing Process o Product Range o Marketing Department
•
Events Planned for Brand Awareness (Introduction to the Study) o Correspondence with various advertising agencies o Research & Findings of survey on Traders o Recommendations
•
Annexure o Questionnaire o Abbreviations o Bibliography
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Executive summary RSRPL was incorporated in the year 1997 and Belongs to the Karthik Group of companies, promoted by Shri B. Gopala M.E. (Metallurgy) from Indian Institute of Science, Bangalore. The company has its registered office & rolling mill at Counclim Goa. The Karthik Group has a turnover of more than Rs, 250 Cr and has its presence felt in Ferro-Alloys, Karthik Inductions and other steel related projects. Rukminirama Steel Rollings Pvt. Ltd. RSRPL rolls these ingots into quality steel bars (CTD, TMT, Rounds & Squares) across range of diameters from 8mm to 32mm. Each succeeding year has witnessed an increasing demand for the company’s product, thereby testifying its quality and stability in the market. Products have been successfully marketed in Southern Maharastra, Districts of Belgaum, Hubli-Dharwad, Coastal Karnataka, Old Mysore area, Bellary District and coastal Kerala. The Company has made rapid strides in technological up gradation within a short span of time. RSRPL is currently engaged in the manufacture of new generation steel bars called TMT (Thermo Mechanically Treated) bars. RSRPL is an ISO 9000 company, it is been granted by the certification company JAS-ANZ. All employees continuously strive and are committed not only in getting the certification but also in maintaining it. Here at RSRPL our first job was to beat the upcoming, huge capacity competition from Kundil Group and Goa Ispat, a conglomerate that has introduced in the market a brand named Kamdhenu Saria. There will be huge competition as these two have come up together with large capacities. We have a much better quality and better relationships Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. with our traders with which we will face the competition. Our foremost job would be towards creating Brand Awareness under the name RR TURBO TMT BARS through advertisements. Some of the major activities that we planned in order to manage in creating brand awareness are as follows: Our quest in creating brand awareness began with the collection of various advertising agencies address that are into hoardings, wall paintings, media, newspapers, art-work (designing and developing) etc. A survey was conducted using a structured questionnaire on traders that would elicit the benefits they received from other manufactures and suppliers who are our present customers. Also included was to know the influence of advertisement in creating brand awareness. The details of the survey are given later. Later I contacted all the agencies and briefed them about the company’s details and our requirements. The first thing that was to be done was to get a art-work designed that would be used for hoardings for advertisements. Regarding this quotations were got from various agencies among which Upasana Advantage from Bangalore was selected. Three samples copies were conceptualized and given among which one was selected. This is being painted on a hoarding, which will be finalized when it’s ready. Its overall appearance to appeal to the customers will grant it its prize. Second step was to call agencies that were dealing in hoardings and pole ads. Again corresponding with them and detailing about the company and product was done. Quotations were received. A hoarding near Verna Industrial Estate was selected to get the painting done on trail basis. It was booked for advance of 26400/-, painting is underway and will be finalized once it is approved. Next was to call up agencies that were into ad films. Quotations are being coming and yet a final selection of agency has to be made. Another work undertaken was preparations of glow signboards and M S boards on which our company name and product will be highlighted. These will be distributed among the traders to be lit in their shops. M S boards will be nailed on the vehicles, Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. which will constitute our transit advertisements. Negotiations are going with Kadamba that is Goa State Transport and KSRTC that is Karnataka State Road Transport Corporation for transit advertisement. Soon it will be accomplished.
Basic thing was to get scribbling pads and order pads designed and printed, around 500 in numbers. They were got done from Agadi Prints, Gadag. Which will be distributed to all the traders in Goa, Karnataka, and southern Maharastra. T-shirts and Caps, 1000 in numbers were ordered from Tirchur, which will carry company name, product name were got printed. These will be given to all employees of RSRPL and to all the labourers. Discussion to make T-shirt compulsory for one day is going on. These Tshirts will be given to all the traders and the loaders of trucks at traders point. Designing of new brochures is underway and it will be approved soon once it is completed.
A power point presentation is made detailing about the company and its product. It will highlight and explain them the benefits of using RR TURBO TMT bars and the savings in cost and material that one can benefit from using it. This work is yet to be green signaled by our M.D. This power point presentation will be made to •
Engineers
•
Developers
•
Members of COC
•
Major traders in the city
•
Contractors
Government official (Developmental Department) AN OVERVIEW OF STEEL SECTOR Global Scenario: •
In 2003 World Crude Steel output at 945 million metric tons was 6.7% more than the previous year. (Source: IISI)
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. •
China remained the world’s largest Crude Steel producer in 2004 also (220.12 million metric tons) followed by Japan (110.51 million metric tons) and USA (91.36 million metric tons). India occupied the 8th position (31.78 million metric tons). (Source: IISI)
•
USA remained the largest importer of semi-finished and finished steel products in 2002 followed by China and Germany. (Source: IISI)
•
Japan remained the largest exporter of semi-finished and finished steel products in 2002 followed by Russia and Ukraine. (Source: IISI)
•
Other significant recent developments in the global steel scenario have been: o
Under the auspices of the OECD the negotiations among the major steel producing countries for a Steel Subsidy Agreement (SSA) continued. A number of meetings of the Disciplines Study Group – a technical group constituted to examine issues relating to steel capacities and marketing distorting measures, were held in 2003 with the objective to agree on a complete negotiating text for the SSA by the middle of 2004
o
The global economy witnessed a gradual recovery from late 2003 onwards. While, the economies of USA, Japan and Europe continue on course towards economic recovery, the growth in China has become one of the major factors currently driving the world economy. With a projected GDP growth of more than double of the other world economies, China has by far become the fastest growing global economy.
o
As a result of these economic developments IISI has projected an increase by 6.2% or 53 million metric tonnes in 2004 in the global consumption of finished steel products. IISI has split the growth into two separate areas, China and the Rest of the World (ROW). Steel consumption in China has been estimated to increase by 13.1% or 31 mmt in 2004.
Role of China in escalating demand of steel is paramount. China has focused all its energies in its developmental work of its infrastructure. It’s pouring its energies to all manufacturing sector and setting up huge bases of industries in manufacturing and infrastructural facilities. China’s estimated demand of raw iron ore is nearly 1’00’000 Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. billion tonnes. It has the highest capacity of converting raw iron ore into finished steel of more than 25000mtpa. Even then it is importing steel to meet its demand. Through India it is importing iron ore from districts of Orissa and Karnataka. The 3 gorgeous dams that are being raised in China will be coined as 8th wonders of the world. China is demanding high quality steel which, local manufacturers fail to meet its requirements and many agreements have been a failure. So the prime concern should be on quality to cater and fructify from this mounting demand. This hyped demand for steel has placed Laxmi Mittal in 3rd position among the richest persons in the world. Market Scenario in INDIA: •
After liberalization, there have been no shortages of iron and steel materials in the country.
•
Apparent consumption of finished carbon steel increased from 14.84 Million Tonnes in 1991-92 to 33.370 million tonnes in 2004-05.
•
Steel industry that was facing a recession for some time has staged a turnaround since the beginning of 2002.
•
Efforts are being made to boost demand.
•
China has been an important export destination for Indian steel.
•
The steel industry is buoyant due to strong growth in demand particularly by the demand for steel in China.
Demand - Availability Projection •
Demand – Availability of iron and steel in the country is projected by Ministry of Steel annually.
•
Gaps in Availability are met mostly through imports.
•
Interface with consumers by way of Steel Consumer Council exists, which is conducted on regular basis.
•
Interface helps in redressing availability problems, complaints related to quality.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. Pricing & Distribution •
Price regulation of iron & steel was abolished on 16.1.1992.
•
Distribution controls on iron & steel removed except 5 priority sectors, viz. Defence, Railways, Small Scale Industries Corporations, Exporters of Engineering Goods and North Eastern Region.
•
Allocation to priority sectors is made by Ministry of Steel.
•
Government has no control over prices of iron & steel.
•
Open market prices are generally on rise.
•
Price increases of late have taken place mostly in long products than flat products.
Production in India: • Steel industry was delicensed and decontrolled in 1991 & 1992 respectively. •
India is the 8th largest crude steel producer of steel in the world.
•
In 2004-05, production of finished carbon steel was 38.385 Million Tonnes.
•
Pig Iron production in 2004-05 was 3.171 Million Tonnes.
•
The share of Main Producers (i.e. SAIL, RINL, TISCO) and secondary producers in the total production of finished (Carbon) steel was 40% and 60% respectively during the year 2004-05.
Finished Carbon Steel Production: The total production of finished carbon steel in the country has been 30.11 million tonnes in 2001-02 as compared to 14.33 million tonnes in 1991-92, indicating an increase of 110.12%. The high share of the secondary sector in finished steel production is largely due to substantial supplies of semis, which forms the basic feed material for the main producers for conversion to needed shapes by rolling.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. PRODUCTION OF FINISHED CARBON STEEL (In million tonnes) Year
Main Producers
Secondary Producers
Grand Total
% of share of Secondary Producers
1991-92
7.96
6.37
14.33
14.5%
1992-93
8.41
6.79
15.20
44.7%
1993-94
8.77
6.43
15.20
42.3%
1994-95
9.57
8.25
17.82
46.3%
1995-96
10.59
10.81
21.40
50.6%
1996-97
10.54
12.18
22.72
53.6%
1997-98
10.44
12.93
23.37
55.32%
1998-99
9.86
13.24
23.82
57.32%
1999-2000
11.20
15.51
26.71
58.07%
2000-2001
12.51
17.19
29.7
57.88%
2001-2002
13.05
17.58
30.63
57.4 %
2002-2003
14.39
19.28
33.67
57.27 %
2003-04
15.19
21.00
36.19
58.03 %
2004-05 (AprJan)
12.76
18.85
31.61
59.63 %
Imports of Iron & Steel •
Iron & Steel are freely importable as per the extant policy.
•
India has been importing around 1.5 Million Tonnes of steel annually.
IMPORT OF IRON AND STEEL (In 000 tonnes)
Year
Pig Iron
Steel TOTAL (CARBON)
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Total Value (Pig Iron + Steel) (Rs. In Crores)
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
1991-92
152
1043
1441.32
1992-93
73
1115
1676.00
1993-94
21
1153
1613.00
1994-95
1
1936
2536.00
1995-96
8
1864
3181.00
1996-97
15
1822
3053.00
1997-98
3
1815
2904
1998-99
2
1637
N.A.
1999-2000
3
2200
N.A.
2000-2001
2
1632
N.A.
2001-2002
2
1375
N.A.
2002-2003
1
1510
N.A.
2003-04
2
1650
.N.A.
2004-05 (Apr-Jan)
7
1650
N.A.
Exports of Iron & Steel •
Iron & Steel are freely exportable.
•
Advance Licensing Scheme allows duty free import of raw materials for exports.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. •
Duty Entitlement Pass Book Scheme (DEPB) introduced to facilitate exports. Under this scheme exporters on the basis of notified entitlement rates, are granted due credits which would entitle them to import duty free goods. The DEPB scheme was temporarily suspended from 27 th March 2004 to 12 July 2004 for export of steel items. The Scheme has since been restarted. The DEPB rates have also been substantially reduced.
EXPORT OF IRON AND STEEL (In 000 Tonnes)
Year
Pig Iron
Semis
Finished Carbon Steel
Total Steel
Total Value (Rs. Crores)
1991-92
-
5
368
373
283
1992-93
16
154
741
895
708
1993-94
620
585
1020
1605
1678
1994-95
466
399
873
1272
1438
1995-96
502
395
925
1320
1939
1996-97
451
300
1622
1922
2231
1997-98
785
503
1880
2383
2512
1998-99
281
174
1770
1944
N.A.
1999-2000
290
328
2670
2998
N.A.
2000-2001
230
195
2805
3000
N.A.
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
242
270
2730
3000
N.A.
2002-2003
629
460
4506
4966
N.A.
2003-04
576
701
5221
5922
N.A.
2004-05 (Apr-Jan)
132
183
2925
3108
N.A.
2001-2002
Although India started exporting steel way back in 1964, exports were not regulated and depended largely on domestic surpluses. However, in the years following economic liberalisation, export of steel recorded a quantum jump. Duties & Levies on Iron & Steel: Customs Duty The customs duty on items falling under Chapter 72 has been reduced sharply during the last five years. The customs duty on non-alloy steel and alloy steel was brought down to the level of 5% and 15% respectively in 2004-05. In the Union Budget 2005-06 customs duty on alloy steel has been further brought down to 10%. Currently the customs duty on prime non-alloy steel and prime alloy steel is 5% and 10% respectively. The peak rate of customs duty on Chapter 72 items was brought down from 40% to 20% w.e.f. 1.1.2005, as a result the customs duty on seconds and defectives also stands reduced from 40% to 20%. In the Union Budget 2003-04 customs duty on refractory and refractory making raw materials have also been reduced to 10%. Some of the other changes made during the last one year in the structure of customs duty on items falling under Chapter 72 are as follows: I. Customs duty on melting scrap reduced from 5% to Zero. II. Customs duty on ships for breaking reduced from 15% to 5%. III. Customs duty on steel making raw materials like non coking coal, met coke and charged nickel have been reduced to 5%. IV. Customs Duty on seconds & defectives has been reduced from 40% to 20% w.e.f.1.1.2005. Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. V. Customs Duty on alloy steel and Ferro alloys reduced from 15% to 10% in General Budget 2005-06. VI. Customs Duty on refractories (6902 & 6903) and refractory making inputs reduced to 10% in the General Budget 2005-06. Excise Duty: Excise Duty on steel hike from 12% to 16% in the General Budget 2005-06. Levies on Iron & Steel: SDF LEVY- this was a levy started for funding modernisation, expansion and development of steel sector. The Fund, inter-alia, supports: I. Capital expenditure for modernisation, rehabilitation, diversification, renewal & replacement of Integrated Steel Plants. II. Research & Development. III. Rebates to SSI Corporations. IV. Expenditure on ERU of JPC. Indian steel rolling scenario: The economic reforms initiated by the Government since 1991 have added new dimensions to industrial growth in Licensing requirement
for
general and steel
capacity
creation
industry
in
has been
particular. abolished,
except for certain locational restrictions. Steel industry has been removed from the list of industries reserved for
the
public
sector. Automatic
approval of foreign equity
investment upto 100% is now available. Price and distribution controls have been removed from January 1992, with a view to make the steel industry efficient and competitive. Restrictions on external trade, both in import and export
have been
removed. Import duty rates have been reduced drastically. Certain other policy measures such as reduction in import duty of capital goods, convertibility of rupee on trade account, permission to mobilise resources from overseas financial markets and
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. rationalisation of existing tax structure for a period of time have also benefited the Indian Steel Industry. The New Industrial policy has opened up the iron and steel sector for private investment by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are freely permitted up to certain limits under an automatic route. Ministry of Steel plays the role of facilitator, providing broad directions and assistance to new and existing steel plants, in the liberalized scenario. There are approximately 2600 Re-rolling Mills in India out of which approximately 1800 Re-rolling Mills are working inclusive of scrap re-rollers in India. Out of total 1800, 1167 re-rolling mills are on the list of the Government whether States or Central. But the rest of the mills have not been enlisted with the State Governments or the Central Governments specially because the Governments does not provide any facilities or benefits to Industry. The capacity of the re-rolling industry was assessed by the then Development Commissioner for Iron & Steel in the year 1981-82 at 20 million tones which has gone to approximately 24 million tones. As per the comprehensive survey of Steel Re-rolling Industry Volume I, 1996 by Development Commissioner for Iron & Steel a total of 1213 Re-rolling Mills responded to their questionnaire. The Steel Re-rolling industry engaged in the supply of its finished products to the Government, Semi Government and other big Projects and Housings have installed quality control arrangements in their Mills and produce the Steel Products confirming to the relevant standards. This sector has to face several regulations from the Government in the shape of Pollution Control, ESI, RPF, Central Excise Duty, Custom Duty, Auxilliary Duty, Sales Tax, Laws under Factory Act, Trade License, Health License, Fire License etc. etc. Regarding subsidies this area is decreasing day by day. The subsidies in Excise Duty is more or less eliminated, so is the case of Sales Tax. Some subsidies are there for Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. the new units as well as for the sick units. Those are Interest Subsidy, Capital Investment Subsidies, Stamp Duty Exemptions, and Electricity Subsidies. The industry proposes some of the changes, which may bring revolution in the industrial environment of India. These may be narrated as follows: I. The Subsidies and Benefits, which are provided to sick units, should immediately be withdrawn as it is seen generally that none of these sick units could survive even after several subsidies and benefits. II. The subsidies and benefits should only be provided to the existing units, which have never been benefited with any subsidy since its inception. III. Finance should be provided to the existing units at the negligible rate of interest or at the interest rate prevailing in developed countries. As the industry does not see any benefit where existing units become sick and the new units fulfills the vaccum under the umbrella of Incentives and Subsidies. IV. The Government should disinvest or dispose off such Public Undertakings in which the total accumulation of losses since their installation has gone more than 25% of the total capital investment. The shape of Rerolling industry in Secondary Sector is very bad in comparison with its counter parts in the world. The main reason is that Government of India has given importance to only main steel producers specially SAIL. It never paid heed to the requirements of the Secondary Steel Rerolling Industry. The industry has been responding very well with the help of highly qualified Structural Designers and the Institutions like IIT’s, Engineer Colleges, Universities etc. Most of the steel Rerollers who consume Pencil Ingots and Billets have installed their own quality control devices and necessary infrastructure to test chemical properties as well as physical strength of the structurals being produced in their factories. Many of them are on the approved list of BIS, RITES, Defence, Railways etc. etc. Many of them feed the Indigeneous Engineering Industry like Bright Bar Manufacturers, Pipes & Tubes Manufacturers, Rolling Shutter Manufacturers, Steel Window & Doors Manufacturers, Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. Wire Manufacturers, Products for Tele Communications, Transmission Towers etc. etc. We have the pleasure to state that 68% of the total requirement of the country is fed by Secondary Steel Producers. Excepting the last year, the long slump in the steel market for the previews 5 years or so have broken the backbone of Steel Rerolling Industry, which in turn has very bad effects on the concerned associations inclusive of SRMA. Whatever the small resources are with SRMA it tries to spread the quality awareness among the Rerolling industry. We at SRMA have organised several Seminars, Workshops and Dialogues with NISST (National Institute of Secondary Steel Technology), Joint Plant Committee, Institute for Steel Development & Growth, Small Industries Service Institute, India Society of Engineers, Various Chambers of Commerce’s, Several Management and Metallurgical Consultants, Indian Institute of Metal, India Chapter etc. etc. The result is very good and our units are competing the main producers in almost all priority sectors.
In addition to the above points SRMA sought the help of the Media like you towards the much needed labour reforms specially in the unorganised sector like Rerolling mills with the labour employment below 500. The industry must have the right to dismiss the inefficient, rude, or the violent workers paying their due compensation as per the Law of the Land. The fear of unemployment can only bring smooth production in the factories. The rate of interest by the Bankers and the Financial Institutions must not be charged more than 3% above the interest rate which they pay to the Depositors in average. In SRMA’s view this will not increase in such case more than 7%. The Government should not exploit the industry in the name of Trade License, Health License, Storage Charges, other Municipal Taxes on the basis of size of the land of the factory and of the capital invested with the factory. The complexity of the laws and regulations should be simple. For example while VAT is to be implemented why other relevant taxes like CST, Excise, Auxilliary Duty, Octroi, Goods Storage Taxes, Professional Tax etc. are allowed to remain.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Rukminirama Steel Rolling Pvt. Ltd. RSRPL was incorporated in the year 1997 and Belongs to the Karthik Group of companies, promoted by Shri B. Gopala M.E. (Metallurgy) from Indian Institute of Science, Bangalore. The company has its registered office & rolling mill at Counclim Goa. The Karthik Group has a turnover of more than Rs, 250 Cr and has its presence felt in Ferro-Alloys, Karthik Inductions and other steel related projects. The group’s main strength lies in its quality products, competitive price and the versatility and foresight of its promoters, the Bhupal brothers who have lots of experience in steel Industry. The Group has made immense progress by venturing into other steel related projects in the form of Karthik Inductions Ltd., which is engaged in manufacturing of pencil ingots. The ingots produced are high quality and they adhere to a strict Quality Control process and the same forms as the basic raw material for its associate concernRukminirama Steel Rollings Pvt. Ltd. RSRPL rolls these ingots into quality steel bars (CTD, TMT, Rounds & Squares) across range of diameters from 8mm to 32mm. Each succeeding year has witnessed an increasing demand for the company’s product, thereby testifying its quality and stability in the market. Products have been successfully marketed in Southern Maharastra, Districts of Belgaum, Hubli-Dharwad, Coastal Karnataka, Old Mysore area, Bellary District and coastal Kerala. The Company has made rapid strides in technological up gradation within a short span of time. RSRPL is currently engaged in the manufacture of new generation steel bars called TMT (Thermo Mechanically Treated) bars. Our company has been granted the license from bureau of Indian Standard (BIS), Mumbai to manufacture CTD/HSSD bars in the sizes 8mm to 32mm as per IS : 1786/85 Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. in grade. To keep up with the latest trends in technology, the company has started manufacturing TMT bars in the grade of Fe415, Fe500 and Fe550 recently using latest German based Evcon Turbo Technology. TMT bars, considered to be new generation steel bars, are superior in strength, more ductile, corrosion resistant, earthquake resistant, cost effective and easily workable at site compared to CTD/HSSD bars. Every one-meter of the TMT bar manufactured by RSRPL carries a mark RR as a stamp of quality. RSRPL is an ISO 9000 company, it is been granted by the certification company JAS-ANZ. All employees continuously strive and are committed not only in getting the certification but also in maintaining it. RSRPL’s policy on Quality is: Customer Satisfaction Continuous Technology Up-Gradation Competitive Prices In support of the above policy, we have defined the following Objectives: •
To adhere to strict sampling and testing of the products to reduce the customers complaints.
•
To ensure timely dispatches to the customer.
•
To improve quality of products by up-grading technology.
•
To supply products to the customer at competitive prices.
•
To maintain volume of production by ensuring proper working practices and systems in the mill.
•
To build highly motivated team to meet the challenges of the company and competition.
SWOT analysis of RSRPL:
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. Strengths
ISO 9001:2000 certified Company
ISI certification for the products
Good will with the distributors
New Evcon based Technology
Own Raw material supply chain
Quality Control Department
Company owned transportation
Weakness
No brand image
Contract labourers
Low market coverage
Non-Availability of skilled labors
Maintenance of finished products
Improper Co-ordination between marketing and production department
Production capacity is very less as compare to competitors.
Opportunities
Market expansion
Growing market (increasing demand for steel)
Expansion of product line
Increase production capacity
Collaboration with other small or
Threats
Entry of National players (increase in competition)
Change in Government rules & regulations
Daily fluctuation of prices
big manufacturers
Participating in contracts and other major construction projects
RSRPL
product
range: Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
RR TURBO TMT Sizes: 8, 10, 12, 16, 20, 25mm.
RR CTD bars Sizes: 8, 10, 12, 16, 20, 25mm
RR Round Bars Sizes: 10, 12, 16mm
RR Square Bars Sizes: 10, 12mm
MANUFACTURING PROCESS: PRODUCT: CTD Bars, TMT Bars, MS Squares & Round bars. RAW MATERIAL: M.S. Ingots / M.S. Billets Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. PROCESS: After unloading the raw materials from the truck, heat 2-3 drilled samples are drawn from each heat number and tested for Chemical composition. Physical inspection for dimensional conformity, slag inclusion, piping is also carried out and the quality Ingot/Billets are separated from the defective ones. Ingots/Billets are unloaded on to the charging platform by crane. These are then fed through the conveyor to the mechanical pusher, which pushes Ingots/Billets into the reheating furnace. Reheating furnace is equipped with low air pressure (2000 mtr. /hr.) Schieldrop burners, Air blowers, Recuperator, Oil preheating pumping unit Pt., Pt. Rh Thermocouple and Temperature Indicator. Ingots / Billets slowly advance in the furnace towards the Burners and are heated upto 1150°C + 50°C by oil firing. After attaining temperature of 1100°C, material as pulled out of the furnace manually on the discharge table and then manually fed in to the first pass of Roughing Mill. In the 16” roughing Mill the raw material is rolled in several passes to reduce the size and shape of the material to the desired parameters for further rolling in 12” intermediate Mill, the rolling form 1st stand to 2nd and 2nd to 3rd is through automatic repeaters. The rolling material leaving the 16” roughing mill is cut at the front and back ends by means of fixed type rotary shears before entering the 12” intermediate mill. 25mm CTD Bars are finished from the roughing mill. The rolling in 12” intermediate is totally automatic. 20mm CTD bars are finished from the 2nd mill stand and 16mm CTD bars are finished from the 4th mill stand of intermediate mill. From the 12” automatic intermediate mill, the hot material passes into the 10” finishing Mill through a Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. set of repeaters, guides and funnels. 12mm and 10mm CTD bars/ Rounds are finished from 10” finishing Mill 2nd and 4th stands respectively. From the 10” finishing mill the hot material passes on to the 10” continuous mill through set of guides and funnels and 8mm CTD bar is finished from this mill. From continuous mill 2nd stand, finishing mill 4th stand and finishing 4th stand and finishing mill 2nd stand, the finished bars 8mm, 10mm, & 12mm respectively goes on to the pinch roll through delivery pipe and cast iron funnels and then on to the Rotary shear. Where bars, rounds and square are cut to a length of 33/44 mtrs. In the rotary shear, cut bars moves on the cooling bed through the W-Channels. After reaching the W-Channels of cooling bed the material is manually shifted to cooling bed platform. From cooling bed platform, Inspection will be carried out for section weight. Visual observation for longitudinal rib, transverse ribs and size of bars is done. After conforming to quality and size material is transferred to conveyer, which is used to convey the materials to cold shear for end cutting and also to cut the material in 11 meters length for rounds CTD Bars and 5.5 meters for square bars. After cutting, it is allowed to cool on the rail platform. After cooling, CTD Bars are shifted to twisting machine. Here they are twisted to the desired pitch in the twisting machine to increase the elongation strength. After which they are bundled with the help of steel rings and a single “U” bend is done. From the stack, inspection will be carried out for bend test, nominal mass and mechanical properties. After conforming the quality of finished materials are made lot and but the Batch number and kept for storage to despatch. Thermo Mechanically Treated (TMT) Bars. As per IS : 1786/85 and Fe-415 Special features of TMT bars: 1. Higher strength with better elongation Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. 2. Excellent weld-ability 3. Resistance to fire hazards 4. Excellent ductility 5. Higher fatigue strength 6. Easy workability at site 7. Better bonding strength 8. Better corrosion resistance 9. Achieves better results than BIS standards Advantages of RR TURBO TMT bars: 1. Savings upto 14-19% steel 2. Reduction in costs 3. Better safety of structures 4. Easy working at site owning to better ductility and bend-ability 5. Better corrosion resistance 6. Good weld-ability 7. Resistance to fire hazards
Comparison chart of CTD bars with RR TURBO TMT bars: Properties Strength
CTD bars High (normally upto grade
RR TURBO TMT Very high as grades of Fe-500 &
Elongation
Fe-415) As per IS : 1786/85
Fe-550 are easily available Very high in all grades and over achieves the elongation requirement in the recent amendment to IS : 1786 for
Weld-ability
earthquake resistance Preferably avoided as welded Better and no loss of strength
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Formability
joints are weak Bend 3D-5D, Re-bend 5D-
Excellent due to uniform
8D
elongation, bend 1D and re-
Ductility and Fatigue High
bending 4D Very high, most suited for
strength Fire hazards
Loss of strength on
earthquake resistance structures Negligible loss in strength upto
Corrosion resistance
temperature rise Scales fall down during cold
500 deg. C. Better corrosion due to non
twisting Easy working at site
twisting Pre-welded meshes can be used Achieves better results and saves
Work-ability Overall economy
steel
Savings in weight & cost of construction with RR-Turbo TMT bars Characteristics
CTD 415
Design Strength
415 N/sq.mm
Quantity Required Over CTD 415% of Savings in weight
1000MT
415/MT reinforcement (%) Savings in cost w.r.t CTD
RR-Turbo TMT500 500 N/sq MT
RR TMT 550
0.854 MT 14.6%
0.809 MT 19.15%
Rs 986.00 6.8%
Rs 1,740.00 12.0%
550 N/sq.mm
Marketing and sales department:
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. The spinal chord of RSRPL is the marketing department that strives all moment to roll out the products into the market. The elite force behind this department is committed in completing the schedules and meeting the deadline, marketing department and other departments of RSRPL are committed and are working towards achieving 100% growth in the coming 2 years. Headed by Mr. Prakash and his elite personnel they have proved that through commitment achieved results can be surpasses. They believe in building relationships and build network. The marketing and production department mutually fix up the production schedule. The marketing department books orders well in advance and places accordingly with production department to meet the order. Major parts of orders are booked over the phone and meager of part of them are booked through procedures. Once an order is taken from a particular trader/ buyer his records are checked and if proved satisfactory the order is booked. If the purchaser is new, he has to go through the procedure and produce all the relevant documents if he is buying on credit. Advance payment is pressed only to new traders or small quantity purchasers, orders less than 1tonne are not entertained as steel prices are continuously under fluctuations the earlier prices at the time of booking an order fixed so either parties share equal amount of risks if prices varies. In coming trucks in the factory premises are weighted accordingly and details are maintained, when the material gets loaded, it is measured again and the difference will aggregate as the weight of the material. The material is loaded according to the daily sales transactions are feed into a computer and annuals are maintained for audit purpose. Marketing personnel, continuously visits the traders to maintain congenial relationship and redress their queries. He is involved in attending to their quires and studies the trends in the purchasing pattern of the customers. He records and maintains all the data and produces to the marketing department who will have a discussion with the production department and improve on the shortcomings to serve the market in a better and improved manner. Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Karthik group has its own transporting facility to meet the demand on time. Exworks payment terms are included in calculating the total amount else the trader sends his own vehicle for processing the material with its own facility of transport, RSRPL claims to meet the demand of Goa state within 5 hours from the time order is booked.
Branding is the most essential part in today’s cutthroat competition. Creating brand awareness is the initial step in building brand. Steel being a technical product, the onus lies on the part of the company to make people knowledgeable about the product features, the company has to come and show itself in the public. If regular interactions are there like- Sponsorships, Trade shows, Advertisements, Press meet, Press releases, Charities, and Promotional campaigns- then general public will be aware of the company’s name and likewise it will remember the product that the company propagates. So branding is an essential part in marketing a particular product when it operates in an oligopoly market. If it was to be a monopoly then forget branding because the only available product would get sold in the market at any given price. Monopoly market is in restriction now and competition has increased manifold so to have a cut in mind of the customer, any marketer should focus on creating brand awareness to be heard in this crowded place of brands. Here at RSRPL our first job was to beat the upcoming, huge capacity competition from Kundil Group and Goa Ispat, a conglomerate that has introduced in the market a brand named Kamdhenu Saria. There will be huge competition as these two have come
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. up together with large capacities. We have a much better quality and better relationships with our traders with which we will face the competition. Our foremost job would be towards creating Brand Awareness under the name RR TURBO TMT BARS through advertisements. Some of the major activities that we planned in order to manage in creating brand awareness are as follows: -
Events planned 1) Survey using questionnaire on a) Traders: Role of traders in creating brand awareness & increasing sales. b) End users: Buyers preferences & impact of advertisement on the purchase of steel. 2) Presenting seminars about the company featuring benefits of using RSRPL’s RR TURBO TMT Steel. Audience will be
Engineers
Developers
Members of COC
Major traders in the city
Contractors
Government official (Developmental Department)
3) Designing of brochures and pamphlets. 4) Collect price list of various media and plan accordingly to the reach & visibility
Cable television.
Hoardings
Pole ads
Newspapers.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Wall paintings.
5) Make arrangements for transit advertisements
Buses-Kadamba, KSRTC etc.
Auto rickshaws- Local and major cities
Tempo’s etc
6) Sponsoring sports meet (Foot ball) in Goa & major events having lot of visibility & reach in other cities. 7) T-shirts with company logo, made compulsory for loaders, also given to drivers, cleaners and traders loaders etc. 8) Expand traders base to have more coverage. Our quest in creating brand awareness began with the collection of various advertising agencies address that are into hoardings, wall paintings, media, newspapers, art-work (designing and developing) etc. A survey was conducted using a structured questionnaire on traders that would elicit the benefits they received from other manufactures and suppliers who are our present customers. Also included was to know the influence of advertisement in creating brand awareness. The details of the survey are given later. Later I contacted all the agencies and briefed them about the company’s details and our requirements. The first thing that was to be done was to get a art-work designed that would be used for hoardings for advertisements. Regarding this quotations were got from various agencies among which Upasana Advantage from Bangalore was selected. Three samples copies were conceptualized and given among which one was selected. This is being painted on a hoarding, which will be finalized when it’s ready. Its overall appearance to appeal to the customers will grant it its prize. Second step was to call agencies that were dealing in hoardings and pole ads. Again corresponding with them and detailing about the company and product was done. Quotations were received. A hoarding near Verna Industrial Estate was selected to get the Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. painting done on trail basis. It was booked for advance of 26400/-, painting is underway and will be finalized once it is approved. Next was to call up agencies that were into ad films. Quotations are being coming and yet a final selection of agency has to be made. Another work undertaken was preparations of glow signboards and M S boards on which our company name and product will be highlighted. These will be distributed among the traders to be lit in their shops. M S boards will be nailed on the vehicles, which will constitute our transit advertisements. Negotiations are going with Kadamba that is Goa State Transport and KSRTC that is Karnataka State Road Transport Corporation for transit advertisement. Soon it will be accomplished. Basic thing was to get scribbling pads and order pads designed and printed, around 500 in numbers. They were got done from Agadi Prints Gadag. Which will be distributed to all the traders in Goa, Karnataka, and southern Maharastra. T-shirts and Caps, 1000 in numbers were ordered from Tirchur, which will carry company name, product name were got printed. These will be given to all employees of RSRPL and to all the labourers. Discussion to make T-shirt compulsory for one day is going on. These T-shirts will be given to all the traders and the loaders of trucks at traders point. A power point presentation is made detailing about the company and its product. It will highlight and explain them the benefits of using RR TURBO TMT bars and the savings in cost and material that one can benefit from using it. This work is yet to be green signaled by our M.D. This power point presentation will be made to
Engineers
Developers
Members of COC
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
Major traders in the city
Contractors
Government official (Developmental Department)
Designing of new brochures is underway and it will be approved soon once it is completed. Research Work: “To Study the Role of Traders and Advertisements in Marketing of Steel” Objectives of the study: 1) To know the role of traders in pushing a particular brand. 2) To know the benefits that the manufacturer provides to the traders. 3) To study the feasibility of advertisement. Research Methodology: In order to achieve the above objectives the following research design was adopted Sample profile: Sample Size: 30 respondents Sample feature: 75 Traders belong to different parts of Goa & Karnataka state, so that their role in creating brand awareness & increasing sales can be understood. Researcher took enough care so that the sample selected was representative. The selection of the respondent was done using convince sampling technique. Source of data and tools for data collection: Both primary and secondary data was used for the study; the secondary data were collected in form of company reports, brochures, policy documents, web page content Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. etc. Primary data was collected using a well-structured questionnaire. The primary data was also collected through discussion with sales & marketing department.
Data analysis: A simple grid was prepared to collect the data provided in the completed questionnaire. Percentages were used to analyze the data, Pie charts and Frequency charts were used to illustrate them.
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
1. Which company steel do you sell in your trading house? The purpose to include this question is to know whether the trader is selling only our brand or other company steel. Through this we will get to know who are our major competitors and in what areas they are operating.
steel products being sold Others 13% Kundil 43% RR 44%
2. Which state steel is stocked more by you? Through this we can come to know the degree of competition that is prevailing in the market. Who are the players that are trying to woo the customers? From which ends the players are entering
which state steel is stocked more
Karnataka 30% Kerala 0% Maharastra 11% Babasabpatilfreepptmba.com
Others 0%
Goa 59% Page 31
“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
3. Which state steel is the highly demanded in the market? To this we can come to know the degree of awareness of the product in the market. What is the stretch that players are having? What are the markets they are operating in? Etc.
Highly Demanded Steel
Karnataka 38% Goa 62%
4. What are your sales strategies? Through we know how the traders market the product, what are their sales strategies? How can we help them? What assistance can be given to push the product so that both of us can be benefited?
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
sales strategies SC 15% Govt 10% Credit 65%
Agents 10%
5. Who are your major buyers? With this question we will get to know where our product lies at the end. They can be contacted directly to fetch more sales and use them to propagate our product by giving them recognition and awards.
major buyers Govt 4%
Others 0% Customer 32%
Contractors 34%
Engineers 30%
6. Whom do you want to target for more sales? By this answer we will get to know whom traders want to attract for more sales, likewise the same strategy can be used to gain more market by calling the same clientele
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
target for more sales Govt 14%
Others 0% Customer 31%
Contractors 31%
Engineers 24% 7. The bulk buyers negotiate their purchases in terms of Through this we will get to know what are the needs of the bulk buyers, how ad what attraction and benefits they are looking, in what way can we commit ourselves so that we can win their confidence for a perpetual relationship.
negotiation from bulk buyers Transport 19%
Payment 24%
Price 24% Quality 4% Credit 29%
8. Do customers prefer a particular Brand of steel? Through this we get to know the preferred brand in the market. Are customers aware of the available products? Are they knowledgeable about the brands? Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
particular brand preference No 17%
Yes 83% o If Yes, why? This answers why a particular brand is preferred in the market. How are customers made know about the availability of the product? What is the basic thing that attracts customers? What is the reason that a particular brand has gained momentum in the market?
why preference Advt 33%
Avaiability 24%
Quality 32%
Price 11%
9. Do you recommend customers for a particular brand of steel? Does trader plays a role in recommending a particular product, is he interested in pushing a product, can he propagate if he is give benefits? Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
recommend to customers
No 35% Yes 65%
If yes, why? Why is that a trader is pushing a particular product is there a genuine reason in pushing a particular reason?
why recommend Demand 26%
Availability 33%
Quailty 27% Price 14%
10. What benefits does the company provide to you? This is the focal point of our study. By this we understand why does trader pushes a product? What at large he is receiving to propagate a product? What are the special incentives and benefits he need so that we can have a better relationship and market our product? What are others giving him? Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
benefits provided by manufacturers Recogtn 5%
Promo 9%
Transport 0%
Trade allow 0%
Cash disc 33% Credit 47%
Vol disc 6%
11. What benefits do you provide to your customers? How do the traders carry their business profitably? What are the benefits they pass on to the customer that they have received from the manufacturer? Are they will to pass? What methods and strategies they employ to clinch on to customers?
benefits provided to customers Home del 34%
Credit 33%
Cash disc 33% Vol disc 0%
12. Do you advertise your trading company? With this question we would get to know whether the trader advertised his trading house to have a name in the market and to attract customers. What are the media Babasabpatilfreepptmba.com
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa. through he is advertising? What is the frequency and reach he is using? Will he be able to cove the target customers by using these tactics? Is it necessary to advertise to have a foothold in the market?
do you advertise No 0%
Yes 100%
media used sales call 26%
Hoarding 9%
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Others 0% TV 9%
Newsppr 56%
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“Creating brand awareness through Advertisements�At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
how often Weekly 0%
monthly 10%
Yearly 57%
Half yearly 33%
13. Would you like to advertise locally with a particular company name? Through this we will get to know whether the trader is interested to clud his advertising strategy with ours? Is he willing to advertise with our brand? So that both can have a large reach and publicly focus each other at large.
like to advertise with us No 0%
Yes 100%
14. Are you willing to share the expenses of advertisements with the company? As advertising in local area would be an expensive move for either of the parties, are the traders willing to share expenses if their advertising is club with our advertising. This will be only in the local area where the trader is operating.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
share expenses with us?
Yes 30% No 70%
Recommendations 1. Create Brand Awareness Immediately. 2. Advertise in all the prime locations of each and every city where traders are operating. 3. Increase margins to traders, as they are the channels through which steel is sold. 4. Increase the number of company owned distribution vehicles. 5. Increase Production capacity if feasible, as competition has come up in giant size. 6. Increase traders base to have more coverage of the areas in which we are not operating. 7. Staging of steel material in the mill has to be taken care as lots of material gets mixed up and will consume time in dispatching. 8. Build shelters for slotting of finished steel, so that steel doesn’t catch rust during rainy season. 9. Production and marketing should club together and schedule properly so that there is no shortage of material when required. 10. Try to minimize labour turnover, which, is increasing. 11. Create an HR department so that labour problems can be attended professionally. 12. Arrange for traders recreation once in a year to have a congenial relationship with them.
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“Creating brand awareness through Advertisements”At RUKMINIRAMA STEEL ROLLINGS Pvt. Ltd. Goa.
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