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ACKNOWLEDGEMENT

I take this opportunity to thank the management of USHA MARTIN LIMITED for
giving me the opportunity to do this project at UML and in the due course I gain in valuable experience and insight into the world of logistics, exports, and marketing. There are many hands of support and guidance without whose help and co-operation it would not have been possible to even start and let alone complete this project. I acknowledge our extreme gratitude and indebtness to our guide Mr. Ashok Kumar Gupta without whose guidance and cooperation this project would not have been materialized. I am also extremely grateful to Mr. Anuj Goel who was source of continuous guidance and inspiration to me. Last but not the least I would like to give my special thanks to my beloved parents and friends for their continuous motivation and valuable suggestions.

PREFACE

The

study was conducted to know the supply chain processes and marketing mix

strategy & logistics constraints and suggestions for increasing the marketing about awareness level and satisfaction level of the customer. The study also helps to know about the features that would make a bright future prospect for USHA MARTIN LIMITED. I had given considerable thought and devoted good amount of time for this project and will consider myself amply rewarded if the project is helpful for the organization for which i conducted.

Date: - Place: (Rishikesh)

DECLARATION I,
Rishikesh here by declare that this project has been done by me for the partial

fulfillment of Master of Business Administration (MBA) of IIMT, Management. College, Meerut (U.P) All the information collected and recorded in this project is based on actual fact and not influenced by anyone. Data given in project report are relevant and related to USHA MARTIN LIMITED (UML) and taken from its original records.

(Rishikesh)

TABLE OF CONTENTS

Page

ACKNOWLEDGEMENT PREFACE DECLARATION TABLE OF CONTENTS


INTRODUCTION Objective Strategic Goals Need of the Study COMPANY PROFILE Company Profile Usha Martin Dedication Vision Mission History of UML Present Status of Company Particular about UML Capacity of UML Manufacturing Process of UML

I II III IV V 1 2 3 3 4 12 4 5 6 6 78 9 10 11 12

SUPPLY CHAIN MACRO PROCESSES Supply Chain Macro Process CRM ISCM SRM MARKETING MIX STRATEGY AND LOGISTICS Concept & Practice in UML Marketing Concept Process flow Chart Marketing Mix Strategy Marketing Strategy Of UML

13 23
13 15

16 18 19 20 21 23 24 29 24 25 26 27 28 29

Ps OF MARKETING MIX Marketing Mix Product Price Place Promotion Packaging People

30 53 30 31 39 40 41 42 46 47 48 51 52 53 54 68 54 55 56 57 58 60 61 62 63 65 66 67 68 69 70 73 74 89 90 91 92 93 94 96 97 98

LOGISTICS Logistics Concepts Importance of Logistics Designing Logistics Strategy Logistics Section Warehousing

LOGISTICS CONSTRAINTS RESEARCH METHODOLOGY ANALYSIS & INTERPRETATION DATA ANALYSIS SWOT ANALYSIS FINDINGS RECOMMENDATIONS LIMITATION CONCLUSION

Appendix Bibliography

INTRODUCTION TO OUR PROJECT


We feel proud to complete our summer internship in UML, TATISILWAI, RANCHI. I will opt. marketing as my major subject in IIIrd sem. so I did my summer training in marketing department. My project was headed as: - Supply chain macro processes & marketing mix strategy and logistic constraints of USHA MARTIN LTD.

During this project I went to different departments such as: Purchase. Sales and co-ordination. Export and Import Quality Assurance. Packaging. Dispatch. Logistic.

I learnt a lot and enriched my knowledge about what actually happens in industries
like USHA MARTIN Ltd. people here were very co-operative and helped us a lot to enhance our knowledge. During our training I also found some pitfalls in the system of marketing mix, for which we have tried to recommend some suggestions to overcome those problems. Hope these may help the company to retain and remain as the best.

OBJECTIVE
Being the future manager it is our utmost requirement to gain work experience and have a feel of the present industries and add working skill to our personality. To fulfill the requirement of our course circurriulm. To have a complete corporate exposure and to know the functioning of different department. To study the marketing mix strategy and logistic constraints in UML and to make out the flaws and recommend suggestions.

STRATEGIC GOALS: The UMIL group ushered into the new millenium with the pledge of making USHA MARTIN a world class manufacturing organization. By creating a learning organization with the focus towards radical improvement in operation, growth, and opportunity through new product development. Globalization compelled to confront a boarderless world therefore companies needed to implement innovativeness in every field like marketing, production, planning system to create a flexible organization, which can quickly adopt itself to external changes. Therefore introduced programs like: TPM: - Total Productivity Maintenance. ERP: - Enterprise Resource Planning. (Fully implemented)

NEED FOR THE STUDY:The present marketing environment is very fluctuating, not a single corporate sector is able to protect themselves from the flourishing economic recession during 1998-1999, and many European manufacturing has close down.

Earlier UML had complete monopoly of domestic market, but new emerged industries started sharing his domestic share. Therefore there was a need to carry out the research study to analyze the actual market situation in domestic market, whose product is globally accepted. Analysis of the situation is done keeping in view the hypothesis such as:Price and delivery are two important factors, which is affecting the domestic market against their rivals. Market has been affected by the emergence of several new rivals as well as by unstable present economic condition.

COMPANY PROFILE
UML is the 2nd largest wire and rope manufacturer in the world and has the largest variety in South East Asia. It is multi product, diversified engineering conglomerate with 10 production units in India,1 in Thailand,1 in UK and 1 in Dubai. It is saving valuable foreign exchange by exporting by exporting its products to 42 countries like USA, Africa and Middle East, conforming to the strictest product quality standards. It got the ISO 9000 Certification by BVQI in 1994. ICICI (BCB) did the business process re-engineering in 1996 and line system was set up to enhance performance. With the modern concepts like TPM, value engineering, QC, suggestions scheme, customer satisfaction and human resource development, UML is trying to reach unparalleled heights. UML is serving through a leading daily Prabhat Khabar, Krishi Gram Vikas Kendra, Usha Martin Technical Institute.

DEDICATION
TO CUSTOMERS: Committed to deliver reliable products satisfying customers requirements and desire. TO OUALITY: Quality product is the USP of UML that helps in complying with international standards. TO STAKEHOLDERS :Committed to enriching stakeholders value through synergic integration of business of group with quality earnings on a sustained basis. FOR SOCIAL WELFARE;Committed to preserve the environment and to improve the standard of rural people where the group has its operations through its social welfare.

Vision
In our chosen business, we shall retain market leadership in India and shall be globally competitive through customer orientation and excellence in quality, innovation and technology

MISSION
ENRICHING LIVES We will do our best to provide quality product and services, Which will improve the life style of our users. QUALITY IS OUR FIRST PRIORITY We aim to achieve customer satisfaction by producing quality products. No sale is a good sale unless it fulfills our customers expectations. OUR WORD IS OUR BOND Our dealers are our partners. We en-devour to practice these golden rules in all our relations with others. INTEGRITY IS OUR COMMITMENT The conduct of our companys affairs must be pursued in a manner that command respect for honesty and integrity.

Looking Back - A Brief History


1960 - The Company was incorporated as Usha Martin Black (Wire Ropes) Limited having its wire rope plant at Ranchi. The name was changed to Usha Martin Black Ltd. in 1979 and further changed to Usha Martin Industries Ltd.(UMIL) in 1983. 1965 - UMIL promoted Usha Ismal Ltd. (UIL) in collaboration with CCL Systems Ltd of UK for the manufacture of fittings and accessories, equipment for pre-stressed concrete system, wire ropes and wire ropes splicing equipment at Ranchi. UIL merged with UMIL in 1990 and became a division of the company 1971 - UMIL promoted Usha Alloy Steels Limited (UASL) for the manufacture of billets at Jamshedpur. UASL merged with UMIL in 1988. 1975 - UASL acquired an ongoing rolling mill at Agra. 1975 - UMIL set up its Machinery Division at Bangalore for the manufacture of Wire Drawing and allied machines in technical collaboration with Marshall Richards Barcro Limited (MRB) of UK. 1979 - In order to obtain steady supply of wire rods for its wire rope plant, UASL set up a Wire Rod Rolling Mill at Jamshedpur. 1987 - UMIL, alongwith Bihar State Electronics Development Corporation, promoted Usha Beltron Ltd. (UBL) in collaboration with AEG KABEL of Germany for the manufacture of Jelly Filled Telephone Cables. 1997 - UMIL merged with UBL w.e.f 1st October 1997. 2000 - Acquisition of specialty wire rope manufacturing plant in UK BruntonShaw. 2000 - Commissioning of 25 MW thermal power plant for captive consumption.

2001 - Commissioning of 2nd SMS to enhance capacity and produce quality specialty steel. 2003 - Usha Beltron Ltd Changed its name to Usha Martin Limited ( UML). UML created Fine Cord Plasticated coated Fine wires, household wire, Polymer coated wire, Fine Ropes & Bright Bars manufacturing facilities in Tatisilwai- Ranchi.

PRESENT STATUS OF THE COMPANY


Usha Martin ltd. is the largest wire and wire rope manufacturing in India and Asia. It is the second largest wore and wire rope manufacturing in the world. At present, the group has three principle manufacturing divisions of wire and wire rope, steel and cables.

Wire and Wire Ropes Division Introduction


The ISO 9001-certified 100,000 MT / annum-manufacturing facilities at Ranchi (Eastern India) is 2nd largest producer of ropes in the world. Since its inception, the division has continuously developed and expanded its range of product offerings and is considered a pioneer in certain classes of products in India. Steel wire ropes manufactured by the division find wide applications in oil exploration, mining, elevators, Crane, fishing, construction, load transportation and general engineering sectors.

Steel Division
A backward integration initiative, the Usha Alloys & Steels Division (UASD) at Jamshedpur is one of the largest amongst secondary steel manufacturers of specialty steel long products in India. With ISO 9002 certified facilities, UASD has pioneered the unique process of steel making through mini blast furnace-arc furnace route, which ensures superior quality of steel at a lower cost. UASD serves a range of industries like automobile, general engineering, fasteners, railways, defense and power.

PARTICULARS ABOUT UML.


Wire and wire ripe division, Ranchi.

Location
Plant Area Covered Area Nearest Town Nearest Railway Station Nearest Airport Nearest Highway Nearest Port Power Source Water Sources

Chotanagpur Plateau
112 Acres 16 acres Ranchi (13 Km) Tatisilwai (1 Km) Ranchi (17 Km) N H-33 (8 Km) Kolkata (412 km) Contracted demand 8000 KVA JSEB 2400-3200 m3/day Subernekha River

Employees Strength
Officers Staff Workers 292 58 1171

1521

CAPACITY OF UML
(Wire and wire rope division, Ranchi) ROPE WIRE STRAND

CAPACITY / MONTH
DIAMETER (mm) TYPE

3500 MT
2 to 16 galv/black

3000 MT
22 to 28 galv/black

800 MT
1.2 to 15.2 galv/black

SALES TURNOVER FOR THE YEAR 2004-2005 (Domestic)


Quantity Values in lakhs

Rope
Wire Strand Total

26194 MT
25053 MT 426995 MT 78242 MT

13939
7452 9743 31134

SALES TURNOVER FOR THE YEAR 2004-2005 (Export)


Quantity Values in lakhs

Rope
Wire

34483 MT
6154 MT

195.89
24.70

MANUFACTURING PROCESS IN UML


PROCESS FLOW CHART: -

WIRE ROD

PATENTING

SURFACE TREATMENT

DRAWING

STRANDING

GALVANISHING

CLOSING

WIRE ROPE

SLINGS

1. The supply chain macro process The emergence of supply chain management has broadened the scope across which the company makes dive trying to optimize performance across divi sion, to the enterprise and now to the entire supply chain. This broadening the scope emphasizing the importance of including processes all along the supply chain when making decisions. From an enterprises perspective all processes wither its supply chain can be categorized into three broad areas; processes focused down stream processes focused internally. 2. Processes focused upstream We use classification to define the three macro supply chain process as follows: (a) Customer relationship management Processes that focus on downspcan interactions bet the enterprise and its customers.

(b) Internal supply chain management: Processes that focus on internal operations within one interpose. (c) Supplier relationship management: Processes that focus on up stream interaction bet the enterprise and its serf pliers.

Why focus on macro processes: As the performance of an enterprise becomes more closely linked to the performance of its supply chain, it is crucial that firm focus on these macro process. After decades of focusing on internal processes, a firm must expand the scope beyond entire supply chain to achieve breakthrough performance the goal should be in creasing the total profitality of the supply chain. Good supply chain management s not a zero sum game where are stage of the supply chain increases the profit at the expense of the other; instead it is a positive sum game where supply chain partners can increase their overall level of profetatrility by working together. Therefore to increase the travel the firm must expand their scope beyond their enterprise and thinks in terns of all there three macro processes.

Customer relationship Management (CRM)


The CRM macro process consists of processes that take place bet san enterprise and its customers downstreams in the supply chain the goal of the CRM macro process is to generate customer demand and facilitate

transmission and tracking of orders. Weakness in this process result in demand being lost and a poor customer experience because orders are not processed and executed retentively. The key processes under CPM are as follows: (a) Marketing Marketing processes involves decisions regarding which customer to target, how to target customers, and what products and how to offer, how to price products, and how to manage the actual compugn targeting customers. Successful software vendors in the marketing area within CRM provide analytics that improve the marketing decisions on pricing, product profitability and customer profitability among other functions. (b) Sell:

The sell process focuses on making on actual sale to a customer (compared to marketing where processes are more focused on planning who to sell and what to sell). The sell process includes providing the sales fore the information they need to make a sale and then executing the actual sale. Executing the sale may require the sales force (or the customer) build and configure the orders by choosing among a variety of orders and features. The sale process also requires such functionality as the atritety to quote due dates and access information related to a customer order. (c) Order management: The process of managing customers orders as they how through an enterprises important for the customer to mark his order and the enterprise to plan and execute order demand from the customer with the from the customer with the supply from the enterprise. Order management soft wares available earlier were womdled by legally systems or had been a order management systems have emerged with additional functionality that enables visibility of orders across the often humorous order management systems that exists within a company.

(d) Call/Service Center: A call centre is often the primary point of contact between a company and its customers. A call/service center helps customers place orders suggest provides intimation on order states. The aforementioned CRM processes are crucial to the supply chain as they cover a vast amount of interactions bet an enterprise and its customers. The customers must be the starting point when trying to increase the supply chain surplus because all demand and therefore revenue, ultimately arises process in the starting point when improving supply chain perform once.

Internal Supply Chan Management (ISCM)


ISCM IS focused on operations internal to the enterprise. ISCM includes all processes involved in planning for and fulfilling a customer order. The various processes include in ISCM are as follow: (a) Strategic Planning: The goal of this process is to plan resource availability in the supply chain network. The decisions may include where to locate plants and warehouses, what type of facilities to build and what markets to serve from each facility. Although these decisions are made less frequently; yet the impact on supply chain performance can be write large and is felt potentially for years. (b) Demand planning: This set of process in-valves forecasting future demand. It also includes decisions to manage demand such promotions planning. (c) Supply planning: The supply planning prices taken as on input the demand forecasts produced by demand planning and the resource made available by the

strategic planning and then produces an optimal plan to meet this demand. Factory planning and invenpry planning capable supply planning software. (d) Fulfillment: Once a plan is in place to supply the demand it must be executed. The fulfillment process links each order to a specific supply source and means of trans partition. (c) Field Service: Finality after the product has been delivered to the customer it eventually must be services. Service processes focus on setting inventory levels for spare parts as well as scheduling service calls. Given that the ISCM macro processes aim to fulfill demand. That is generated by the CRM macro processes. When forecasting demand, interaction with CRM is essential as the CRM application are touching the customer and have the most data and insight on customer behavious. Similarly the ISCM processes should have a strong integration with the SRM macro process. Supply planning, fulfillment, and field service are all dependent on suppliers and therefore the SRM macro processes.

Supplier Relation Management (SRM)


SRM includes those processes focused on the interaction between the enterprise and suppliers that upstream is the supply chain. There is a very not rating supplier constraints are crucial when creating internal plans. The major SRM processes are as follows: (a) Design Collaboration: The goal of this process is to improve the design of products through as the joint selection (with suppliers) of components that have positive supply chain characteristics such as ease of manufacturability or commonality across several and products. Other design collaboration activities include the sharing of engineering changes orders bet manufactures and its suppliers. This eliminates the costly delays that occur when several suppliers are concurrently designing components for the manufactures product. Good collaboration at this stage can create huge value because 80% of the product cost is determined at the design stage. (b) Source:

The source process qualifies suppliers and helps in supplier selection, contract management and supplier evaluation. A key goal is to analyze the amount that an enterprise spends with each supplier, often reveling valuable trends or arias of improvements. Suppliers are evaluated along several key criteria including lead time, reliability quality and price. This evaluation helps improve supplier performance and aids in supplier selection. Compact management is also an important part of sourcing as many supplier have complex details that must be tracked (such as price reductions for reaching certain volume customers). (c) Negotiating: Negotiation with suppliers involve many steps starting with a request for quote. (RFQ). The negotiation process may also include design and execution of auctions. The goal of this process is to negotiate an effective contract that specifies price and delivery parameters for a supplier in a way that best makes the enterprise needs. (d) Buy:

The buying process executes the actual procurement of materials from suppliers. This include the creation, management and approval of pees chase orders.

(e) Supply collaboration: Once an agreement for supply is established bet the enterprise and a supplier; supply chain performance can be improved by collaborating on forecasts, production plans, and inventory levels. The goal of collaboration is to ensure a common plan across the supply chain. Significant improvement in supply chain performance can be achieved it SRM processes are well integrated with appropriate CRM and ISCM processes. The theme of integrating the three macro processes is crucial for improving the supply chain performance.

MARKETING CONCEPT

The marketing concept holds that the key to achieving its organizational goals consists of
the company being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target markets. It crystallized in many colorful ways since its inculcation. UML follows the line of all these marketing concepts with due adherence. Let us examine some of these marketing concepts with respect to the organization.

PROCESS FLOW CHART

QUATATION BY UML TENDER CUSTOMER PLACE ORDERS HEAD OFFICE / BRANCH PURCHASE ORDER / SALES
D E L I V E R Y DIFFERENT DEPARTMENTS PLANNING / QUALITY ASSURANCE / PRODUCTION /

MARKETING / PLANNING PRODUCTION PLAN


SALES / HO / BRANCH OFFICE / PRODUCTION

QUALITY ASSURANCE
PRI ME

PASSED SALES CODISPATCHABLE

FAILED

NON-

DISPATCH

PARTY CLEARANCE

Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and services of value with others. Peter Drucker a leading management theorist puts it this way. There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the products or services fits in and sells itself. Ideality, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

MARKETING MIX STRATEGIES

PROMOTION MIX

SALES PROMOTION

OFFERING MIX
PRODUCTS SERVICES PRICES

ADVERTISEMENT SALES FORCE PUBLIC RELATIONS DIRECT MAIL TELEMARKETIN DISTRIBUTION CHANNEL TARGET CUSTOMER

THE FUTURE IS NOT AHEAD OF US. IT HAS ALREADY HAPPENED. UNFORTUNATELY, IT IS UNEQUALLY DISTRIBUTED AMONG COMPANIES, INDUSTRIES AND NATIONS.

MARKETING STRATEGY OF UML (RANCHI)


Every organization makes some strategy for marketing its product. These strategies depend upon various decisions on the basis of their marketing mix tools. So a proper marketing strategy is very important for a company, for the purpose understanding the concept of marketing is very necessary.

MARKETING MIX
The set of marketing tools the fire uses to pursue its marketing tools the firm uses to pursue its marketing objectives in the target market. Mc carthy classified these tools in 4 broad groups that he called the 4 Ps of marketing. PRODUCT PRICE PLACE PROMOTION Later two more Ps were added to the lot. PACKAGING. PEOPLE.

PRODUCT IN THEORY
PRODUCT: -

product is anything that can be offered to a market to satisfy a want or a need.

Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organization, information and ideas. At UML the product wire, strand and rope all are produced with strict focus on the customer specifications and their requirements. The product line goes deep as far as strands, slings and ropes and ropes are concerned. It has been evaluated further in the report.

PRACTICE IN USHA MARTIN


UMLs products have been accepted worldwide. Almost 46 countries are its regular customers for the rope. USA & Europe are the biggest markets. The company believed in the philosophy of producing the right product for the customer. Product is done as per the ordering information which contains specification regarding. Size Construction Loading Lay Direction Tensile Strength Core Length Standard

SIZE: It is defined by the nominal diameter of which the rope is required for the manufacture, UML offer a wide range of production of rope, wire and strand of different diameter. ITEMS ROPE WIRE STRAND PRODUCT PROFILE: USHA MARTINs product offerings including following items: Wire Rope Wire & Strand Slings Bright Bar Wire Rod Straight length Cable (UML at Ranchi basically deals with rope, wire and strand & silings.) SIZE (in mm) 2 TO 116 22 TO 28 1.2 TO 15.00

VARIOUS PRODUCT OF UML & ITS APPLICATIONS


PRODUCT RANGE APPLICATION

WIRE
BALL BEARING NEDLE WIRE STEEL SPRING WIRE PRODUCT RANGE CYCLE SPOKE WIRE : : : : : BEARING INDUSTRY NEEDLE INDUSTRY CYCLES SPRING APPLICATION CYCLE INDUSTRY MOTOR BIKE INDUSTRY VARIOUS INDUSTRIES STAPLE WIRE

MOTOR CYCLE SPOKE WIRE : LOW CARBON & HIGH WIRE : STAPLE PIN WIRE :

ROPES & STRANDS


GUID ROPE LOCKED COIL WIND ROPE AERIAL HAULAGE ROPES OIL DRILLING ROPE BRIDGE ROPES ENGINEERING ROPES FISHING ROPES ELEVATOR ROPE EXCAVATOR ROPE CARGO LIFTING : : : : : : : : : : AERIAL MINES AERIAL ROPEWAYS OIL DRILLLING SECTOR BRIDGES CRANES, WIRELESS MAKING FISHING HOISTING MINES DOCKYARD.

SOURCES OF RAW MATERIALS


RAW MATERIALS Steel Wire Rod (90 to 96%) : Steel Wire Rod (4 to 10%) Fiber Core Other Raw Materials (zinc) : : : UML, Jamshedpur Imported from Germany, Japan etc. M/S Chhotanagpur Wire Rope, Arrah Gate, Ranchi. M/S Hindustan zincs & other supplies 25 % And balance is imported.

PROCESS FLOW CHART

WIRE
SURFACE TREATMENT

DRAWING

STRANDING

GALVANIZING

CLOSING

WIRE

WIRE ROPE

A wire rope is manufacture through spring of strand over a central core. The
strand is formed by spinning of wires around a central wore. Thus a wire rope is made of three components. Wire : - Single filament of the rope. Strand: - Spring of filament in a predetermined way gives rise to strand. Core : - This is the central strings around which spinning of strand is done to form rope.

PRODUCT APPLICATION: Underground mining, surface mining, mooring Onshore and offshore drilling, fishing, elevators. Cranes, Aerial haulage, track installation. Suspension bridge.

WIRE AND STRAND

Wire and strand remain the core business focus at USHA MARTIN. With its state of the
art manufacturing unit at Ranchi and its extensive market reach, the company has been a significant player in the wire market. Wires are single filaments drawn from a wire rod. To make a wire of specific diameter, a wire rod of certain diameter is taken. After cleaning it is passed through several dies to make the wire of desired diameter size. A strand is made by the spinning of wires over a central wire known as the king wire. Several outer wires are helically laid over the king wire to form a strand of desired diameter size. The number of wires used and the manner in which they are laid from the strand construction. PRODUCT APPLICATION: a. Electric Industry Cable armoring farmed wires. Cable armoring rounds wires. ACSR core wires. Earth wire strands. Ground- stay wire strands. b. Spring Industry Spring steels wire (heat treated to suit customer requirement). Plain carbon steel. Alloy steel.

c. Pre-stressed Single Wires / Stranded Wires. Pre-stressed single wire stranded wire mainly used for :Bridge poles Railways sleepers. Cooling towers. d. Shaped Wires Shaped wire for spring washers/ circlips/gates/special sieves mess piston rings/ flexible cables. e. Needle Industries Needle wires for the manufacturing of hosiery needles, wing needles, knitting needles, hooks and surgical needles. f. Electrode Industries Poly carbon steel wires. Special grade welding wires. Stainless steel wires. Cycle Industries Cycle spoke wires. Cycle spike wires Chain rivet wires Mudguard wires. Pedal bar wires. g. Bearing Industries For manufacture of Ball/ Roller / Needle Bearing / Ball bearing wires coils.

h. Fastener Industries CHQ Grade wires for fasteners. i. Telecom Industries Galvanized steel wire for telegraph and telephone lines. j. Power Industries Armoring of Cables. For Aluminum Conductors. k. Construction Industries Pre-stressed concrete girders for roads, river and railways bridges and flyovers. Prestressed concrete domes, slabs silos, hangars, aqueducts, viaducts & railway sleepers, concrete poles, Hume pipes, bridges. l. Automobile Industries For the manufacture of Ball/roller/ needle bearings/balls bearing wire-coils, wire which cater to the spring industry, different auto spoke wire for motorcycles and mopeds, shaped wires in High Carbon, Alloy Steel grades for Spring washers, Circlips, Grates, Special Sieves, Meshes, Piston rings, Flexible Cables. m. General Engineering Needle wires used for the manufacture of Hosiery Needled, Sewing Needles, Knitting Needles, Hooks, Fishing Hooks and Surgical Needles, Nylon coated wires for binding application for books, diaries, calendars, dossiers etc. and nylon coated paper.

PRICE IN THEORY The entire focus of the consumer remains concentrated on this very area. Since the
market comprises of different earning groups the marketer should keep all the factors responsible before deciding on the price.

Sell value not price.


At UML the above mentioned principle can always be seen into effect. At UML where pricing is a key factor the company has established a pricing department which works along with the sales co-ordination department to stet or assist others in determining appropriate prices.

PRACTICE IN UML

In the comparison to other wire and wire rope manufacturing companies, UML products
are highly priced because UML has got the ISO 9001 certification, due to which it has maintain a certain quality standard which leads to high price. The pricing is done by the Kolkatta head office. Head office prepares the price list according to region wise and customer wise taking into consideration. 1. Standard product. 2. Discount. 3. Credit items. 4. Competitors price. 5. Channel and number if dealers in each channel.

PRICE LIST
ROPE
Elevator Rope General engineering Winding Ropes Fishing Rope Shipping Rope Marble mining rope Crane Rope Trawler rope LCWR

PRICE
Rs 70000/MT Rs 60000/MT Rs 75000/MT Rs 45000/MT Rs 42000/MT Rs 47000/MT Rs 63000/MT Rs 46000/MT Rs 136848/MT

STRAND PC Strand (3*3 ply)


PC Strand (12.7m) LRPC Strand (12.7m) Earth Wire Strand (10.98m) Earth Wire Strand (9.55m) ACST

PRICE Rs 21000/MT
Rs 28000/MT Rs 28000/MT Rs 27000/MT Rs 31000/MT Rs 27500/MT

PLACE IN THEORY

What is a market? The definition doesnt seem to confine itself in a few words because
the word market has as such no boundaries, for a layman a market refers to a place where goods and services are sold in lieu of money. Here place doesnt only confine to its market area but also to the ends of the distribution channel which helps in reaching the final products to the consumers. At UML place refers to its establishments in the country and around the globe, which have been mentioned later in the report. It also refers to the warehouses used by the organization to carry on its activities.

PRACTICE IN UML
UML follows a systematic procedural step in the planning its product in a particular market or in building up a new customer. It proceeds as follows: 1. Market survey to know the prevailing market condition. 2. Study of competitor channel used by them and their pricing strategies. 3. Developing its own channel. 4. Creating awareness in customer about the product features which ultimately makes them pay premium price. UML has every varieties of customer in India and the company occupies number one position in the Indian market with the share of 80% and 4 th position in the world market of export with a market share of 2% in the entire world.

MAJOR CUSTOMERS DOMESTIC


WESTERN REGION: Common India Limited, Mumbai. Parikh & Sons, Bhavnagar. Premier Mills & Stores, Ahmedabad. Fortuna Engineering Industries, Mumbai. Jindal Stripps. ONGC, Ankleshwar. Mezgoan Docks, Mumbai. Essar Steels, Surat. Great Eastern Shipping Corporation, Mumbai. Mukund Steels Limited, Kalwe. ACC, Adilabad. Reliance Industrial Infrastructure, Jamnagar. Nuclear Power Corporation of India. Western Coal fields Limited.

NORTHERN REGION: Hindustan Electro Graphite Limited, Mandideep. Akashdeep Rajasamand, Rajasthan. BHEL, panipat. Vee Sales Corporation, Kathgodam Hindustan Copper Limited. Roshan Jain & Company Limited. Maruti Udyog Limited. Northern Coalfields Limited.

SOUTHERN REGION: -

United Marine Traders, Kollam. Kec International Limited, Atmakul. Larsen & Tourbo Limited. Johnson Lifts private Limited, Chennai. Marine Trade Link, Kottayam. K.V. Ratnam, Karnataka.

EASTERN REGION: Indians Ropeways and Company limited, Kolkatta. Ferro Scrap Nigam Limited, Dhanbad. Til Limited, Kolkatta. Key Pu Enterprises. Eastern Coalfields. HCL, Talchar. NorthEastern Coal fields Limited, Margrita. Unimetch Lifting Equipment, Howrah. Otis India Limited. Philips India Limited. Steel Authority of India Limited. Indian Iron and Steel Company Limited, Burnpur. HEC, Ranchi. Tata Iron & Steel Company Limited, Jamshedpur. Oil India Limited Duliaja. Coal India limited. Central Coal field Limited.

OVERSEAS
AFRICA: -

ALEXANDRIA.

ONNE. MOMBASA. DURBAN. TINCAN ISLAND. APAPAPORT. DARES SALAM.


EUROPE: -

AERBILJAN. COPENHAGEN. BERGEN. WORKSOP. FELIXSTOUUE. BAKU. BREMERHEAVEN.

AMERICA: PHILADELPHIA. VANCOUUER. HOUSTON. LOS ANGELES. PORTLAND. NEW ORLEANS. OAKLAND. EDMONTON. CHICAGO. PORPUS CHRISTI. HALIFAX. TORONTO.

NEW YORK. BARRANQUILLA. MARACAIBO. MONTREAL. BOSTON.

AUSTRALIA: BRISBANE. FREEMANTLE. MELBOURNE. SYDNEY. AUCKLAND.

MIDDLE EAST: DOHA. DAMMAM. MUSCAT. ABU DHABI. JEBEL ALI. DUBAI. BAHRAIN. KUWAIT.

ASIA: COLOMBO. PORT PENANG. KEELING SEAPORT. SINGAPORE. HAIPONG.

ASHOD PORT. HO CHI MIN. BIRGUNG. KAOSHIUNG.

PROMOTION IN THEORY

The essence of promotion is to appeal to the customer in order to enhance sales through
the various medias and mediums. Since UML deals in the manufacturing of industrials gods the promotion is entirely different with respect to the consumer gods, even through the organization has undertaken a lot of such promotions tools.

PRACTICE IN UML
The product type in which UML deals constitutes quality and safety conscious customer. Since UML has monopoly in Indian market and that because of its quality products. UML doesnt have any advertised in television or radio or print media. UML takes the following activities as its promotional tools. 1. Participate in trade fair in India as well as abroad. 2. Company performance through its web site (www.ushamartin.com) 3. It takes sales promotion by providing allowance, guarantee, discount & credit to customer. 4. Arranging periodic dealers meetings.

PACKAGING IN THEORY

Most

marketers treat packaging as an element of product promotion strategy. The

activities of designing and producing the container for a product involve a lot of creativity, which helps the organization in establishing a benchmark for itself. What the package should basically be or do for the particular product must be on size, shape, material, color, text and brand mark. At UML packaging is the prime focus area. With respect to the customer requirement and specification the material is packed. As far as export is concerned the packaging is done with respect to the environmental factor also. All these factors help in promotion of the product and enhance its market share. The various reason for the growing uses of packaging are: Self service. Consumer affluences. Company and brand Image. Innovation opportunity.

FLOW CHART OF WIRE PACKAGING AND DISPATCH IN RESPECT OF NON ROPING WIRE.

Home Wire
Coil Cutting Coil Binding / Strapping Weightment (Weight entry in the system) Oiling (as per requirement) Packing Stacking In respect of loading advice From sales co-ordination Segregation Physical inspection Checking for site, s/o, sl.no. & Wt.

For Export
Coil Cutting (as per requirement) Strapping Weightment (Weightsheet handed to QA) Oiling (as per requirement) Packing & Bundling of Coils Stacking In respect of loading from sales co-ordination Segregation Putting of computerized export Tags as per site / sales order / sl.no.

Loading Making of Excise Invoice at Sales Co-ordination dept.

Loading Documentation At Sales Co-ordination

PROCEDURE FOR PACKAGING AND PAINTING OF WIRE FOR DIFFERENT TOWN.

ZONE
Delhi Kolkatta Chennai Nagpur Mumbai

COLOR
Brown Green White Black Blue

PACKAGING PROCESS
Double layer with ordinary hossian. Double layer with ordinary hossian. Double layer with ordinary hossian. Double layer with ordinary hossian. Double layer with ordinary hossian.

At UML the packaging process is done as per the customers specifications and requirements to achieve and excel the best international quality in packaging to enhance the product image. The steps or the procedure that are undertaken while packing the gods are: Reel packing / covering. Strapping. Marking. Reel material.

Surface finish Buckled flange. Broken / damaged flanges.

The Various Packaging Material Used are: PINE (EXPORT) & MANGO (DOMESTIC) WOODS. Wooden rolls (gutka). Wooden sleeper. Wooden blocks. Single reels weighing more than 20mt.to be provided with steel. Reel support on both the flanges as per drawing. Brown two ply corrugated paper. Blue colored hdpe hossian. Blue hdpe after overlapping it. Black gar strips.

PEOPLE IN THEORY

Manufacturer,

suppliers, wholesalers, retailers and the customers along with a lot of

middleman comprise this category. They are the one who produces the goods and services and they are the one who finally consumes it even. UML takes all necessary steps to keep its people happy, contented and satisfied. Be its employees, suppliers, dealers, agents or its customers. When we talk of customer relationship management and supply chain management UML follows all these from the very core.

PRACTICE IN UML

The entire process of marketing is carried on keeping prime focus on the customers; they
are the one who is going to consume the end product. But even though the organization has to maintain good healthy relationship with the suppliers, its transporters and all other channels and middlemen who enable the organization to encase its image through reaching out to the end user.
As such the process at UML is blindly oriented towards its customers. The production, packaging etc. all has their prime focus on the customers.

The Otis elevator contract has enabled the organization to develop a brand image for itself, because in the era of cutthroat competition such a prestigious contract says it all

about the organization. Example of the people oriented services provided by the organization are. Vidyasagar Setu (Kolkatta). Nugachiya (Bhagalpur). Naini (Allahabad). Krishi Gram Vikas Kendra. Nicco Bank (Kolkatta). The above example are just a few to be mentioned in the wide rang of achievements of the organization. It has been seen in the organization that apart from all dominating factors that influence a business firm the term people comes first. That is the essence of the organization.

LOGISTICS

Logistics management is essentially an integrative process that seems to optimize the


flow of materials and supplies through the organization well as its operations to the customer. Essentially it is a planning process and as an information based activity. Requirements from the market place are translated into production requirements and then into materials requirements through this planning process. It is now recognized that for the real benefits of the logistics concept to be realized, there is a need to extend the logic of logistics upstream to suppliers and downstream to the final customers. This is the concept of the supply chain management. In practice, the terms logistics and supply chain management are now used interchangeably, so the institute of logistics (1998) gives the following definition. Logistics is the time related positioning of resources, or the strategic management of the total supply chain. The supply chain is a sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution and waste disposal together with associated transport, storage and information technology. The council of logistic management provides a better definition, hinting at a wider process including more upstream areas: Logistics is the process of planning, implementation and controlling the efficient cost effective flow of raw materials, process inventory, finished goods and related information from point of origin to the point of consumption for the purpose of confirming to customer needs.

The Institute of Logistics again broadens this definition in the following way :Logistics is the time related positioning of resources or the strategic management of the total supply chain. The supply chain is the sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution and waste disposal, together associated with transport, storage and information technology. Logistics relates to goods, people manufacturing capacity, information being in the right place, at the right time, in the right quantity, at the right quality, and at the right price.

LOGISTICS
SUPPLIER

SOURCIN G

RAW MATERIAL STOCK

PRODUCT STOCK

PRODUCTION (M. M.)

PHYSICAL DISTRIBUTION

CUSTOMERS

RECYCLING

The Institute of Logistics flow chart description of logistics.

CONCEPT

Before the Second World War the term logistics was an unknown term. In those days,
concept of logistics management was developed to maintain a sound supply of weapons, and other essentials for army who were fighting all around the world. Later on the concept was entered in the world of business and the word business logistics was coined. Today logistics is the backbone of almost every product unit and about 15% - 20% of total cost of a company is nothing but its cost for logistics. Logistics include: The service involved with effective movement of materials and information from source to the consumption. The processes of managing the total supply chain to increase efficiency and providing best support to the end users. The competitive strategy needs to meet customer demand. It is a determining factor in product / service and market development. Management of both logistics and the supply chain management are undergoing a radical change. Logistics links the factory to the customer and supplier to the production. The concept and activities of logistics have been so well accepted that they are often absorbed else where in the corporate organization.

GROWING IMPORTANCE OF LOGISTICS: Historically, organization put all their efforts into making products and gave little thought to the ways that these were passed to the customer. Distribution was an avoidable cost of doing business. Peter Drucker, recognizing this situation in 1962, described physical as the economys Dark Continent and said that this formed the most sadly neglected, most promising area of business. Reducing cost was perhaps the initial incentive for the organizations to examine their logistics, but there was a fuller list of reasons includes: Organization realization that moving and storing products is expensive and these costs can be reduced. A growing emphasis on customer satisfaction which inevitably relies on efficient logistics. Development in operation, e.g. JIT & TQM, this needs new approaches to logistics. A general trend towards the integration of operations including strategic alliance partnership and collaborations. A realization that decision about supply chain has a strategic significant for the organization. Changing attitude towards transport increasing congestion on roads, government policies of increasing the real cost of road transport privation of the rail networks etc. Improved systems and communications especially EDI, but including item coding and electronic point of sales (EPOS). Substantial growth of international trade, with growing power of free areas such as the EUROPEAN UNON and the North American FREE TRADE AREA.

DESIGNING LOGISTICS STRATEGY

Having
areas:-

recognized that logistics has a strategic importance, the next is to set about

designing a strategy. The logistics strategic concerns decisions about the following

1. Customer services. 2. Facility location. 3. Inventory policy. 4. Transportation. A more general view that a logistics strategy consist of all the long term decisions that affects the supply chain and can sourcing, research, forecasting, procurement, the environment, production, planning, recycling, property and a whole run activity (institute of logistics, 1998). With this broader view a logistics strategy is an essential part of a business strategy concerned with developing a process that gives continuing value to the customers. There are several different ways of achieving this, including; Product differentiation- which allows innovative organizations to make a continuing stream of new products that unavailable from competitors. Cost leadership- which uses a process that can supply product at lower price than competitors Time based strategy- which concentrate on the operation that add value to the customers. Diversification- which means making different types of products of using different process.

The decision taken at the strategy level leads to others types of decision, perhaps to supply product that a tailored to customer needs, introduce ECR, JIT, Cross docking, direct plant, shipment, vendor managed inventories. Direct plant shipping some other method these decisions in turn effect the service given to the customers and the long-term success of the organization. The process oriented prospective of logistic management that cuts across the traditional vertical functions of the organization has been a powerful stimulator for change logistics was not only a tool for the global strategy of the organization but also the source of innovative logistic strategies. Logistics has now become a far reaching total approach, that is both transversal and very ambitious and where the skills are applied at the interface between various operational processes its main role is to synchronize over all physical flow and it is indeed in permanent interaction with all the classic function of a firm, constituting an active interface between the firm and its environment. A Conceptual Approach to Formulating Logistic Strategy The classic approach to formulating a logistic strategy consist in beginning with the firms overall strategy and then defining the logistic strategy that will enable the firm to reach its objectives, logistics is thus conceived as a functional support system and a tool for global strategy. Logistics strategy should appear as a subset of overall strategy. The controls of flow of materials goods today constitute a key factor for success in numerous domains. Logistics like other aspects of business (marketing, information) is given today a new line it action so, it is imperative to reverse the classic approach and think towards strategic logistics rather than logistic strategy. Strategic logistic is consists of imaging and developing strategic action that would be impossible without strong logistics competence. Logistics is becoming a fully

competitive advantage, and even means to change the rules of the strategic game for an industry. However for Usha Martin industries it is still a long way to go.

The principal differences are summarized below:

Logistics strategy Perception of logs stakes Effects on organization Strategy report Improvement Evolution

Strategic logistics Strategy formulation Change, transmutation

The two inter related perspective between logistics and strategy shown in figure lead to a
very different formulation and to company projects that are also very different. STRATYEGY Logistics motor / Source of global Strategy. Strategic Logistics

LOGISTICS STRATEGY Logistics: tool for global strategy LOGISTICS

Finally, strategic logistics formulations emerge from this repeated transversing of


interactive strategy / logistics lop, which becomes a progress spiral for the firm.

LOGISTICS SECTION

The

logistics section of sales coordination basically deals with evaluating the

performance of UML doesnt have its own transportation system. There are contract made between transporter and UML, which is regulated, by branch office. Usually there is quarterly contract. The department prepares performance report of different sub-contractor (transporter) and refers it while finalizing the contract. Procedure for approval of transporters: 1. PURPOSE The purpose of this procedure are to access and review the performance of the transporter of placement of trucks and timely and safe delivery of outgoing finished goods. 2. SCOPE The entire transporters are covered by this procedure excepting those nominated by the customer. 3. RESPONSIBILITY The procedure is reviewed and approved by the management representative and issued by the senior manager, quality system. 4. AUTHORITY The responsibility of implementation and maintaining the procedure rest with the wise president (financial & commercial). 5. PROCEDURAL STEPS- ACTIVITY One of the following methods are used: Past performance method. New transport selection method. Reference method. If any transporter having approved list of transporter. a. Past Performance Method: 1. To prepare transporters performance report on the basis of their timely placement of trucks and timely delivery of consignment in god condition at the desire destination.

2.

The approval and review of transporter is to be carried out by transport approval committee comprising the VP fleet of sales coordination and head of account once in three months according to the need.

3.

For the purpose of approval, the signature of vice president (VP) and two member of committee are necessary to maintain / delete any transporters list on the basis of reviews meetings.

b. 1. 2. 3.

New Transporter Selection: To send transporter registration from prospective transporter. If the performance is satisfactory recommended the transporter to the committee for inclusion in the approval list. To approve or reject the transporter on the basis of review meeting.

c. Reference Method: 1. 2. 3. 4. To place order on transporter who being to any of the categories. Transporter recommended by a senior officer. A known source. Identification based on experience of other users.

d. Approved List of Transporter: The enlist transporter is approved transported list. During the transporters approval committee meeting, a review of the transporter performance is to be carried out to evaluate their ability to meet the requirement. In case a transporter is falling short of desired performance, suitable corrective plan of action is to be drawn up and follow up measures are to be establish to upgrade that transporter. Such review report is to be forwarded to the management representative.

WAREHOUSING:
UML again doesnt own any warehouse. All warehouse used by UML is different region are on rent. UML keep closing and opening warehouses in different part of country as per demand. Demand of existing as well as newly developing area studied continuously and accordingly warehouses are taken on rent for certain period of time. For catering seasonal demand temporary warehouse are taken for example Chennai (fishing rope). UML maintain minimum inventory of 2000-2500 tones. The main reason for maintaining warehouse is for timely delivery & to customer needs as well as cost saving. Procedural steps: Activity-Responsibility-Purchase department. 1. purchase Against Indent: following items may however be procured from various approved and listed subcontractors against sub-contractors and monthly requirements including amendment there of intimated by following respective departments. Items such as: wire rod, phosphate, chemicals, lubricants, propane gas, HCL, borax, lead, L.D.O. etc. Stores Department : 2. On receipt of indent at stores individual items code nos. case and a print is taken to verify.

3. The indent is than fed into a computer against the item code and a print out is taken to verify. a. That the description of the item is correct. b. Whether any stock is available of the items. c. The details of previous purchaser regarding the sub-contractor and rate at which purchasing were done. i. The print out is manually verified if the description in the print out and that I indent matches, further processing of the indent is continued. If the description doesnt match indenter is consulted and ambiguity is reserved. If required a new item code is allowed or the indenters charge the description in the indent. ii. After verifying the position of the item, it is required to be procured the computer print out is authorized and sent to purchase department. Purchase Department & Import Department 4. To decide on the basis of the indent from the stores whether of not fresh enquiries to be floated. 5. If fresh enquiries are not required then refer to existing price list of the current subcontractor for the items under consideration and are last order placed for such items and the process from steps onwards. 6. If fresh enquiries are required to propose enquiries on the basis of indents raised and sent to the sub-contractor for inviting their quotations. Enquiries to foreign subcontractor are sent in the form of letters. 7. On receipt of incoming offers quotations purpose comparative statement of offers if more than one offers is received. 8. To select sub-contractor on the basis of receipt. 9. To prepare the purchase imported order department order to the selected subcontractors.

The purchase orders to include complete material specification, description, technical details, drawings numbers applicable, inspection instruction method of product release etc. Purchase / import order is reviewed and approved before release. Quality Assurance Department: 10. All products are accepted on the basis of inspection on arrival at works. When the contracts call for inspection at the sub-contractors premises such requirement is incorporated in the purchase order special requirement as per procedure for order review. The purchase of this inspection at sub-contractors premises is to avoid major faults in the product. After inspection instruction for clearness of dispatch by the subcontractors is made in three copies. Two copies are handed over to the sub-contractor and one copy is forwarded to purchase department. Purchase Department & Import Department 11. In the case of change of requirement of indenting users department proposed modification are discussed with sub-contractor to whom order has been placed. 12. If the subcontractor agrees to the proposed change, an arrangement to purchase order is issued. If the sub-contractor closes not agree to the proposed changes, would by repeated to select anew sub-contractor in case of items covered in the new sub-contractor should be from the approved sub-contractor list and placed a fresh order on him. Otherwise a new sub-contractor is to be approved in accordance with procedure for approval of subcontractor. 13. Copies of purchase order / job order and subsequent amendment, if any are sent to stores, accounts and indenting department. In case of items in approval of subcontractor the same is sent to quality assurance.

LOGISTICS CONSTRAINTS

Logistics constraints means the problem a company faces to deliver the product and the
problem faced during each step of whether in house or out house.

LOGISTICS CONSTRAINTS FACED BY UML


The company faces some constraints in delivery of the product as well as in processing and warehouses. 1. Absence of proper feedback from transporter regarding any delay. 2. Problem created by transporter financier for e.g. stoppage of vehicle on way for nonpayment. 3. Rules and regulation of different states calls for proper and perfect documentation, which sometimes leads to complicates. 4. Breakdown of vehicle is another delaying cause. 5. Delivery of seasonal foods is more profitable for the transporters so they start preferring those goods and avoid delivery of wire and wire rope. 6. Local bunds causes a lot of troubles in production and delivery system. 7. Theft and accidents are certain unavoidable constraints. 8. Transporters strike against government distrupt and regular flow of supply. 9. Natural calamities. 10. Unavailability of products in demand in the warehouses. 11. Absence of proper packaging facility at warehouses. 12. Unavailability of drilling and cutting machine creates problem in supplying specific demand. 13. UML takes warehouse on rent, which leads to absence of perfect care of product in the stock. 14. Absence of warehouse in certain areas likes Orissa. 15. High cost of maintaining sub-contractors. 16. Transporter of area like Chotanagpur prefer coal belt area to earn easy money thus location factor creates problem.

17. Absence of own transportation system creates problem like unavailability of transporters vehicle leading to delay in delivery product.

ORDER CONFIRMATION IN UML

ENQUIRY

QUOTATION

SALES DEPARTMENT

WORK ORDER

WORKS

PLANNING DEPARTMENT

PRODUCTION DEPARTMENT

QUALITY CONTROL DEPARTMENT

RESEARCH METHODOLOGY DISPATCH DEPARTMENT

The research methodology basically dealt with collection of data and information from primary source as well as secondary source and the analysis of data an account of research design. My project consisted of research design of exploratory and descriptive nature. Exploratory study because final conclusion has to be reached on the basis of collected facts and figures, descriptive study because the organization is a large organization scattered all over the country as well as abroad therefore their dealers, customers, different branched are scattered and situated accordingly at different places. The marketing main head office situated in Kolkata and branch office in Delhi, therefore it was difficult to get into face to face interaction with them therefore facts have also been collected through e-mail, their general opinion given to the department from time to time. Collection of secondary data: Whatever the existing secondary data was relevance for my study has been collected from booklet, journals, annual, reports, UML magazine, Prabhat Khabar, files and documents.

Collection of primary data: It is difficult to deal industrial product survey like consumer good, therefore analysis to great extent has been based upon secondary data, personal interview, observation analysis and questionnaire separately prepared for workers, managers, customers, dealers. On the basis of data, few hypotheses have been drawn and I have tried to work along with them. Interviewing was the major tool of my project study as it avoids them to influence for answer but at the same time maximize the accuracy with which questions are answered.

Observation method: - certain time observation can tell much more then that of any verbal investigation. Defaults and plus points can be checked about the organization consulting from senior officials can clear the facts, which I found essential with any project.

The scope of UML, I have observed in my training period, which has been described in
the project. UML is basically an export-oriented company, which export 50% of the product world over like USA, EUROPE, UK etc UML products are used mainly in coal mines, general engineering, ropeways and oil drilling rope, fishing rope etc. UML was the first Indian Company in 1974 to export wire rope to USA. In domestic market the largest share goes to coal with 28% & to engineering 20% & to shipping 13%. So, I realize in this project of UML on the basis of data and figures, analysis of the 6 Ps namely product, price, promotion, place, packaging and people of the marketing mix strategy are as follows:

PRODUCT: -

Today one of the main strengths as (wire &wire rope) maker is pronounced by its locked
coil wire rope (LCWR). It is used in coal mines and electrical wire and cement industry. UML is the 2nd company of India to manufacture this kind of wire rope.

PRICE: -

When we are dealing with the pricing policies and strategies, I observed that UML has
one to one strategy that is leadership pricing strategy. In the domestic market UML is a market leader, so its management formulates the price strategy.

PROMOTION: UML doesnt go in for advertisement or other short of promotion. UML is mainly
interested in taking part of trade fairs whether it is national or international. It also conducts meeting with dealer and agents. Example is taken from the market mining industries in Rajasthan, when it conducted meeting with dealers and agents who guide the decision making of the mine owners. Sales services of UML are needed to gain the customer confidence and create a strong brand image.

PLACE: -

UML has one of the major customers in Coal India Limited. So, it is easier for UML to
supply mining ropes to various coal mines, under C.C.L., SAIL & Tata Iron & Steel Company that situated in eastern zone. UML is opening up manufacturing plant, branch office, dealers and distribution on network and warehouse in the domestic market. UML holds best position in the industry because geographical location is good & target market is strong. Branches of UML & dealers network are connected with Internet.

PACKAGING: -

UML is always trying to improve its packaging to its product. This packages products
the materials inside it. It uses new age labeling and tags for its product. UML are using bar coded tags which identify the specific region and other hanging world the emergence of time & speed has become one of the main fact.

USHA MARTIN INDUSRTRIES assess the logistic function, which help the raw material, which is purchased, and then it is planned accordingly for the production. When the production of finished good is kept in the stock godown from there it is dispatched according to the customer through the efficient distribution channels to the destination of warehouse accordingly. FROM PURCHASE DEPARMENT: Purchase department deals with the purchase of raw materials like wire rod and lubricants (from JSR), Chemical from Mumbai, Propane gas from GAIL, Zine read from kolkata. In this department relevant information are incorporated in the purchase order so that the product supplied by the sub-contractors, meet desired quality requirements. The product is reviewed and approved by management representative and issued by head quality system. The responsibility of implementing and maintaining the procedural steps of this procedure rests with in charge of purchase department. FORM PLANNING DEPARTMENT: Planning department deals with the allocation of the work according to product. Planning department review the purchase order. After receiving it becomes the purchase order. It includes all the necessary details regarding product and also the address of the consignee. On the basis of this W.P.S. (Work Plan Schedule) is prepared plan horizon of UML is 15 days W.P.S. includes schedules of each and every day. That is from the day dispatching of the product. Sometime advance planning is made for the product, which is always in demand (for e.g. fishing rope) FROM PRODUCTION DEPARTMENT:

The main manufacturing plants that UML contains are wire, strand and rope. It wire and ropes are used for various purpose. For e.g. fishing rope, engineering rope etc. UML is specialists of LCWR ropes, which is mainly used in mining industries. UML ropes have to go through a tensile strength test before dispatching. FROM TRANSPORTATION DEPARTMENT: For dispatching process UML depends on road transport. UML receives application from the interested transports. All the transporters have to undergo with a procedure for approval expect those who are nominated by the customers. Different methods of procedures are: 1. Past performance method. 2. New transporter selection method. 3. Reference method. 4. If any transporter having ISO 9000 certified. There is a transporters approval committee to keep an eye on their performance. They also issue warnings to them whose performances are not found satisfactory.

1. Companys performance during last six years.

1000 800 600 Value 400 200 0 9495 95- Jan- 9796 97 98 98- 9999 2000 Sales PAT

Sales 180 235 276 499 816 814 PAT 25 33 16 35 42 44

2. Companys performance Export V/S During in Wire.

60% 40% Percent 20% 0% Export Domestic Export Domestic 98-99 40% 60% Year 99-2000 42% 58%

3. Companys performance Export V/S During in Rope

80% 60% Percent 40% 20% 0% Export Domestic 98-99 57% 43% Year 99-2000 68% 32% Export Domestic

4. Sales in Domestic Market (Rope)

20000 15000

Qty. in MT

10000 5000 0 94- 95- 96- 97- 98- 991352 1461 1219 1990 1777 1055

Qty. in MT

Value in Lacs 6180 6805 6805 9111 8501 4160

year
Qty. in MT Value in Lacs

5. Sales in Domestic Market (Wire)

25000 20000

Qty. in MT

15000 10000 5000 0 94-95 95-96 96-97 97-98 98-99 992000

Qty. in MT

15106 18495 22623 14597 18684 8812

Value in Lacs 3764 4436 5515 4281 5150 2106

year
Qty. in MT Value in Lacs

6. PERFORMANCE IN SALES WIRE ROPE IN DOMESTIC


MARKET

YEARS 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 22530 23482 26194 30958 36198 30655

QTY(MT)

SALES OF WIRE ROPES 40000 35000 30000 25000 20000 15000 10000 5000 0 20002001 20012002 20022003 20032004 20042005 20052006

QTY

7. PERFORMANCE IN SALES WIRE IN DOMESTIC MARKET

YEAR 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 30846 28413 25053 24821 31427 29507

QTY(MT)

SALES OF WIRES 35000 30000 25000 20000 15000 10000 5000 0 20002001 20012002 20022003 20032004 20042005 20052006

QTY

8. PERFORMANCE IN SALES EXPORT(WIRE, ROPES, STRAND)

YEAR 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

QTY(MT) 24971 29282 26995 28883 54437 40236

SALES OF WIRE ROPE AND STRANDS


60000 50000 40000 30000 20000 10000 0 20012002 20022003 20032004 20042005 20052006 Series1

9.

DESPATCH PERFORMANCE (2005-2006)

YEAR QTY(MT) 2003-2004 5637 2004-2005 10881 2005-2006 10050

DESPATCH PERFORMANCE

21% 38% 2003-2004 2004-2005 2005-2006 41%

10.

EXPORT DESPATCH AT A GLANCE 2005-2006

PLACE

PERCENTAGE

AMERICA AUSTRALIA AFRICA ASIA EUROPE MIDDLE EAST

17 4 4 36 17 22

DESPATCH PERFORMANCE 2005-2006 TOTAL DESPATCH = 100500

22%

17% 4% 4%

17% 36%

AMERICA AUSTRALIA AFRICA ASIA EUROPE MIDDLE EAST

11.

PERFORMANCE QTY WISE 2005-2006 QTY

DOMESTIC 40180 EXPORT 59658

PERFORMANCE QTY WISE 2005-2006

40% DOMESTIC EXPORT 60%

1. HOW WOULD YOU RATE THE PERFORMANCE OF THE ORG AT PRESENT?

POOR 0% STAGNANT 30% GOOD 70%

0% 30% POOR STAGNANT GOOD 70%

13. DO YOU FEEL THAT UML WILL REMAIN GROW IN ROPE MARKET?

YES NO CAN'T SAY

75% 10% 15%

15% 10% YES NO CAN'T SAY 75%

14.

WHAT IS THE POSITION OF THE ORDER TODAY WITH RESPECT TO EARLIER?

INCREASE DECRESE STAGNANT

62% 13% 25%

25% INCREASE DECRESE STAGNANT 13% 62%

15. HOW WOULD YOU RATE UML PRODUCTS AND SERVICES?

UNSATISFACTORY 10% SATISFACTORY 90% DELIGHTFUL 0%

0%

10% UNSATISFACTORY SATISFACTORY DELIGHTFUL

90%

16. WHAT INFLUENCE YOU TO TAKE THE

LEADERSHIP OF UML?

BRAND NAME PRODUCT DEMAND AVALIBILITY QUALITY

20% 40% 0% 40%

0% 40%

20%

BRAND NAME PRODUCT DEMAND AVALIBILITY QUALITY PRICE

0%

40%

STRENGTH: -

2. UML ranked No.1 Company in India in manufacturer of wire rope. 3. Strong status in world. 4. It maintains a world class infrastructure. 5. Market share is strong 6. Big contract. 7. Largest distribution network. 8. Dealers, branch offices, warehouse are connected with Internet in all over India. 9. UML has become brand equity in this field, customer first choice is UML. 10. Its products are world class in quality; it is tested by several authorities. 11. It has bugged almost the entire world leading quality certificate. 12. It enjoys the monopoly in the LCWR.

WEAKNESS: 1. 2. Its pricing strategy is completely different from other competitors. It has large no. of machinery and equipment which has became old and obsolete.

OPPORTUNITY: 1. 2. 3. Government planning regarding less explosive hanging bridges like Naine Bridge in Uttranchal. New opportunities in the oil off share field e.g. oil drilling rope as reliance has found crude oil reserves in Krishana-Godavari basin in South. Fishing is developing in the southern coastal cities.

THREATS: 1. 2. 3. 4. 5. Small rivals are emerging at different parts of the country. Low prices of the rivals product are a great threat for the UML. Timely delivery of the product is a great threat for the UML. Govt. always changes its policies and it brings a great threat to this organization. A bad roadway of Jharkhand State is among biggest threat to the UML.

COMPETITORS OF UML

GLOBAL COMPANY Kiss wire British Rope Aoagie Rand Fedger Austria Draught CASAR Bridon Dietz Jhon Shaw Redaelli SFE Teufelberger Pfeiffer DOMESTIC ` COUNTRY Korea UK South Africa Switzerland Austria Germany Germany Germany UK Italy Spain Austria Switzerland

COMPANY South India Wire Bombay Wire Ropes Bharat Wire Ropes Indore Wire Ropes Asian Wire Ropes Mickey Wire Ropes Garwari Ropes Forts Williams

COUNTRY Kerala Maharashtra Maharashtra Indore Andhra Pradesh Jharkhand Maharashtra West Bengal

FINDINGS
PRODUCT RELATED UML products are well tested and inspected by the world class testing authorities like (ABS, LOYDS, IRS, ONGC, DGS, CMPIDL, MECON and GRIFT) UMLs product (LCWR) has good demand in the market. Nearly all the major orders are placed with UML due to product performance & record. As the entire product certified, customer has full confidence in placing order with UML. UML cover the services of the product time to time. Complete R&D for the product and insisting products are done itself in the company. R&D centers, so that the UML can upgrade the quality. OTIS, ABS, ISI, and so many authorities that visit the company time to time to audit the quality related aspects of UML. PRICE RELATED Overheads are quite high compared to the other companies or rivals but it is solely due to its size & volume. From the customer point of view we felt that due to high cost of UML products. It looses certain prospective customer. PLACE RELATED UML is located in the eastern region of the country which has become the point of concern for its domestic customer although it has five ware houses covering all zones, the timely delivery is crucial. All the branches & dealers of UML in India are connected with Internet. All of the branches are situated in areas, which have good communication facilities, whether in roads, rails or water. Its own division situated in

Jameshedpur & Bangalore respectively supplies raw materials & heavy equipment & machinery. From geographical point of view UML plant in Ranchi is well positioned but there is certain problems like frequent bends and strikes etc. and of course lacks of good infrastructure facilities. PROMOTION RELATED UML promotional strategies such as participating in trade fares are not enough to create awareness for the customers. The after sale service of UML is well appreciated because it aims at making relationship with customers. It generally sends its representative to its customers to lesson the complication and complains. The frequency of the seminars and industrial interference less so UML conducts meeting with its dealers and distributions. Even we felt that the companies cum web portals is not updated and upgraded time to time. PACKAGING RELATED UML is at par with current packaging bends. UML uses new age labeling & tags for there products making its products more attractive & reveal the world class quality. The iron reds are used mostly these days. They are well painted to give it a nice aesthetic look. Bar coded tags are used for the identification for the different products.

Recommendations to maintain the leadership position in both domestic and international market:
A. THE PRICING FACTOR:

Consumers want the price of UML products to be reasonable but this factor has proved
to be the main hindrance and had resulted in getting low work order from the regional and national market. The prices of the UMLs steel wire and ropes is higher than those of other manufacturer at the national level and due to this its major competitor M/s Bombay wire in Mumbai has snatched a big portion of the market share of UML at the regional level. There are sizable proportions of dealers and customers who are ready to compromise on quality in order to expand their profit margin. Prices of UML products have risen up to 30-40% within a span of 2 years than that of its competitors price. Customers who can compromise on quality are shifting towards other competitors due to this reason. Government organizations are also a major customer of UML products but in case of Govt. organizations orders are initiated on the tender basis. In regard to this sector also UML received setback in past because the tender having the minimum rate quoting bags the work order. So the competitors of UML are gaining a large portion of the cake here. Even the dealers have also registered their complaint against the high pricing of the products as they have to sell their products at a very low profit margin in order to survive in this highly competitive market. So UML must rethink about its products price.

B. THE QUALITY FACTOR:

The

customers of UML expect a certain quality standard, which is the USP of its

products, they expect products with zero defects. Though UML very strictly adheres to its quality commitments but still there are certain flaws which accompany its products. At times life span of the product also decreases due to stocking with poor or inferior quality of packaging stenciling material and so it does not lasts as long as it is expected to last. The positive future is that quality related problems have to reach on zero level to ensure the optimal performance of the product and customer satisfaction. C. THE PACKAGING:

When I was talking to a dealer of UML at Jameshedpur they have some complains
regarding the packaging of the product at UML. There were complains regarding loose and often inappropriate amount of lubrication. Wooden reels used in packaging sometimes contain moisture, which rusts the rope in due course of time. Loose winding and coiling is also present in the poor packaging system. UML should take smart packaging initiatives to save its reputation and product quality. D. DELIVERY DEADLINE:

Keeping the delivery deadline commitment is of outmost important to maintain not only
the goodwill of the company but also to avoid the zooming costs cause due to such unnecessary delay in delivery. It may also result in huge loss for UML. There have been trends of late delivery of its products to the customers in recent times as told by their dealers.

E. THE COMPETITORS :

UML

is facing a tough competition from its competitors:

Competition for UML has following three dimensions: 1. Competition from foreign companies in the high end or niche markets like LCWR and CRANE ropes. 2. Competition from numerous small domestic competitors in low end product market. Such as fishing and general engineering ropes. 3. Competition from organized domestic as well as foreign companies in mid end product market of elevator and mining rope. UML has suffered in all their categories of product but the impact has been felt mostly in the low end products. It is facing the toughest competition from the domestic competitors, particularly small manufacturers who possess these characteristics: 1. Very small production capacity. 2. Have low overheads and so the total production cost is very low. 3. Compromise with the quality to reduce with price. Recommendation as this front is to make move to acquire small manufacturers to prevent the market share erosion at both domestic and international front.

Recommendations regarding market expansion:


UML should make its move to untouched areas such as Northern America and Europe in product range like train rope, wire and ropes needed in infrastructure and mines development.

LIMITATION OF THE STUDY


1. The time period within which the study was conducted was limited and proved to be major constraint. 2. The study was limited to major customers and dealers throughout the country whose orders constitute only 35% of the total orders executed by UML. 3. As a single researcher it was difficult to deal with all aspects of study and conduct extensive research. 4. The company did not allow the trainee to visit the companys manufacturing department. This is so because they dont want to reveal their strategies. 5. Some of the higher level authorities were not able to give their spare time to the trainees. 6. They dont want to disclose their various strategies that they prepare against their rivals.

CONCLUSION
1. UML is the producer of wire and wire rope in India and hold second position in the international market. 2. It produces a large variety of wires and wire ropes that are used for different purposes in areas such as power sector. Automobile sector, general engineering construction sector etc. 3. UML cater the needs of the domestic industries as well as the international market (USA, UK, Vietnam, Africa etc) 4. UML is increasingly focusing on exports of its products in the foreign countries where high quality wire is in demand. 5. UML has an efficient production department that produces high quality wires on the basis of the customers demand. 6. Scheduled maintained and minimum wastage of the raw material and finished products due to implementation of TPM. 7. More possibility of expansion due to stable financial position. 8. The demand for high quality ropes is increasing rapidly in the international market.

BIBLIOGRAPHY

AUTHOR 1. Philip kotler

TITLE Marketing management 11th edition. Marketing management 12th edition.

2. Ranjan saxena

Marketing management Tata Mc Graw hill publishing co. ltd. New Delhi. Business world Outlook

3. Magazines

4. News papers Telegraph Prabhat khaber Times of India Dainik jagran

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