Domain Marketing & Sales

Name of the Case: Develop a go-to-market strategy for Kitchen Modules – a premium offering in homemaker solution
from TATA Steel (TSL)
Introduction

With an estimated current market size of Rs. 2,000 crores and growing at an impressive 30% Y-O-Y in India, Kitchen
organization solutions is posing as a very attractive segment in the home-maker frame to enter into.
TSL is planning to develop a first-of-its-kind range of kitchen modules with hydrophobic, oleophobic, anti-bacterial and anti-
scratch properties. One can choose the modules based on one’s kitchen dimension and install the same in very easy steps
to create a modular kitchen. The modules are also made ‘mobile’- hence, one can move, add, modify, upgrade your kitchen
at any point in one’s life.
With the longevity offered by steel structure and the freedom to choose from multi-materials like lacquered glasses, marine
ply etc. to design the shutters, Tata Steel plans to sustainably enhance the life-cycle of the home-maker segment, following
the Pravesh and Vista legacy.

Background

As a part of long term plan, TATA Steel intends to insulate its revenues from steel cyclicity by venturing into downstream
products, services & solutions. The company has made an ambitious plan to achieve 20% of its revenues from such
businesses by 2025 and has already made inroads into segments such as community essentials (www.nestin.co.in),
homemaker (www.tatapravesh.com) etc. through asset light manufacturing model.
The primary target group for homemaker solutions are IHBs (Individual House Builders). TATA Steel has been traditionally
catering to this segment through a nationwide network of 7000+ dealers for construction rebars (www.tatatiscon.co.in).
Pravesh doors were launched in 2016-17 in select geographies primarily using TATA Tiscon channel, followed by pan India
rollout in 2017-18.
In order to capture higher Share of Wallet in the home-maker frame, TSL also introduced standard casement windows in
2017 which are low in differentiation but complements its door offering. This was followed by launch of Artifurn- range of
wall-to-wall modular wardrobe solutions. (https://www.wealsomaketomorrow.com/doors-wardrobes.aspx)
Recently, exclusive Pravesh display shops have been opened in collaboration with Tiscons dealers across India, which is
exclusively displaying all the home-maker offerings of TSL.
Kitchen solutions is the next stepping stone and prototype development is underway.
Problem Statement/Challenges Faced

TSL is keen on launching only kitchen modules- contrary to every other modular kitchen players offering end-to-end
solution up until installation in approximately 60 days from the day of invoicing. TSL would help consumers in choosing the
right modules, help them plan it virtually through interactive website and do doorstep delivery of the modules along with
providing a complete installation instruction manual and video guide. Installation would then be on the discretion of the
consumer, either they can approach one of TSL’s trusted installers or it can be locally done by any neighborhood carpenter.
Critical Case Questions

1. What are the challenges if TSL decides to only be in the product space? Do and analysis on the effect on market share
(Modular Kitchen market) when providing end-to-end solution (with installation, after service) vis-à-vis just a product
solution.
2. If we come up with 3 variants (base, premium, luxury) for our kitchen solution, what would be their value
proposition?

3. What should be the communication & branding strategy of TSL kitchen modules for 12 months from launch?

4. What will be the ideal route-to-market strategy for TSL Kitchen modules considering we have to make a mark in the
consumer durable segment which is a highly fragmented market?
Domain Marketing & Sales
Name of the Case: Develop a Route to Market and a Customer Acquisition Strategy for EV Charging Infra solution, an end
to end B2B/B2G solution in Urban Infrastructure space from Tata Steel
Introduction
EV Charging Infra Solution is an end to end infrastructure solution by TATA Steel for setting up EV charging stations
anywhere in India. TATA Steel works on an asset light model where it collaborates with EV charger manufacturers (e.g.
Delta, TACO etc.), DISCOMs (e.g. CESC, Tata Power etc.), canopy solution providers (e.g. Tata Structura/Nest In Partners)
and App developers (e.g. Fortum) to provide turnkey solution for setting up EV charging stations for people who wish to
own and operate it. The revenue model is outright sale of the solution to an EV charging station operator. The target
customer segment includes real estate developers, municipalities, oil companies, corporate parks, fleet operators and to
some extent Auto OEMs, who would prefer to be an EV charging station operator.
Background

As a part of the long-term plan, TATA Steel intends to insulate its revenues from steel cyclicity by venturing into
downstream products, services & solutions. The company has made an ambitious plan to achieve 20% of its revenues from
such businesses by 2025 and has already made inroads into segments such as community essentials (www.nestin.co.in),
homemaker (www.tatapravesh.com) etc. through asset light manufacturing model.
To strengthen the case further, TATA Steel has identified electric vehicle (EV) charging infrastructure (Annexure I) as one
of the opportunity areas in Urban Infrastructure space. As per NITI Aayog projections, EV sales are supposed to surpass 80
million in 2030 with 2W & 3W accounting for 85% of total EV sales. Yet, after studying the value chain (Annexure II) and
interacting with industry players, it is believed that 2W & 3W would majorly prefer AC Home charging while buses & 4W
would need DC Fast charging. Hence, focus is on building a DC charging infra network by leveraging on TSL’s pan India
reach (7000+ TISCON dealers), existing customer (ECA and Auto) and solution partner (70+ Nest In and Structura partners)
relationships, to cater to the charging needs of upcoming EVs that would have larger battery size and higher range.
TATA Steel has a target to reach a yearly revenue potential of ~INR 1500Crs by 2030 in the EV charging infra space.
Problem Statement/Challenges Faced

An end to end installation and commissioning of a basic charging station consisting of a 25kW DC charger with canopy,
power utilities and consumer app would cost around INR 15 lakhs. The cost would vary on an order to order basis based
on the level of customization.
Currently, TATA Steel is reaching its customers either through its 3-tier B2C channel (TISCON) or through its 2-tier B2B
channel (IPPE). Else, it is using Direct Sales to reach its high-ticket Auto customers.
Efforts have been put to sell this solution to the target customers through Direct Sales. But, the sales are yet to pick up
majorly due to low EV penetration and changing govt policies. Hence, TATA Steel is wondering if there’s another way of
reaching out to customer. Also, its looking for an elaborate customer acquisition strategy based on its target segments
respective customer decision journeys.
Critical Case Questions

1. What should be the Route to Market Strategy for delivering such a B2B/B2G solution?
2. What is the customer decision journey for each of the target customer segment? Devise a Customer Acquisition Strategy
accordingly.
3. What are the risks involved in selling such a solution? Suggest risk mitigation strategies for the same.
Domain Marketing & Sales
Name of the Case: Creating a customer who creates customers (Digital)

Introduction

About the brand and product: Tata Steel has launched Tata Pravesh Doors & Windows as part of its continuous efforts to
provide consumers with value added steel solutions. Tata Pravesh doors and windows combine the strength of steel with
elegance of wood. Tata Pravesh doors & windows come with assurance of strength, durability, no maintenance and
resistance to termites and fire.
Tata Pravesh Offers end to end solution for all types of wall openings in two major business segments - 1. Retail and 2.
Housing & Construction (H&C). While Retail Segment caters to IHB consumers through retail channel, H&C caters to
institutional buyers and projects.
Background

There are many instances where consumers share information about a product or organization or brand with one another.
With the advent of internet and especially social media, the C2C talking and exchange of information is increasingly
happening through internet as medium.
Research shows - more than 90% believe brand recommendations from friends, 62% consumers search online reviews and
information before purchasing a product, People are 4 times more likely to buy when referred by friends. With game-
changing numbers like those, considering the product category like Tata Pravesh, it’s important not to neglect the
importance of referrals, reviews and recommendations (RRR).
Problem Statement/Challenges Faced

It’s not just the click, but the conversion that matters! We found that the conversion of an online lead (to purchase) is less
than 5%. The key challenge is, how to get the right quality of lead, which will boost the conversion rate. The best quality
lead is hypothesized to be through RRR. Conversely, better RRR leads to better conversion rates!
Considering the nature of the product category, the digital marketing challenge is to EEE - engage, equip and empower
them to talk about Tata Pravesh for a positive RRR.
• Engage: How to listen to them and be part of their conversation
• Equip: How to give reasons to talk about Tata Pravesh
• Empower: How to give consumers different ways to talk and share about Tata Pravesh

Critical Case Questions

1. Is it all about creating a buzz? Is viral really wanted?

2. How to create User-generated-content for different customer segments?
3. Possibility of customer communities. How to Utilize them?
4. What should be reasons for our customers to share about us and can a referral program be possible for this product
category? How different are B2B and B2C segments for RRR?
5. Arrive at KPIs to measure digital marketing ROI along with linking the EEE strategy for RRR outputs.
Domain Marketing & Sales
Name of the Case: Impact of Digitization on the Automotive industry (Automotive)
Introduction

Digitization has affected almost all industries and the Automotive industry is no different. Within the automotive industry,
digitization brings new players into the foray, shifts present technological focus from physical to IT, affects the value
creation process and emphasizes the importance of multilateral cross-company co-operations

Background

The automotive industry is facing dramatic changes in the future, inside the car as well as in the supply chain. There is a
huge shift occurring from traditional concepts of the engine to e-cars to autonomous cars and autonomous production
systems, as well as to new materials that require innovative production processes. In addition, customers want highly
customized vehicles. Automotive manufacturers must be able to respond quickly to these dynamic market demands, which
will require the industry to ramp up to highly flexible and efficient production systems. A holistic approach is needed to
connect formerly separated processes and achieve the required flexibility.

Problem Statement/Challenges Faced

Traditionally, digital technologies have only focused on industries whose products could completely be digitized (i.e. media
or banking) or on specific effects in various industries. However, in today’s scenario, when consumers are shifting more
and more towards digital technologies, the traditional ‘physical’ industries, such as the Automotive industry, must shift
their business models to adapt to these changing needs. The steel industry has had, traditionally, a long lead time in
adoption of new technologies especially with relation to the digital environment. The industry has made huge investments
in process control and optimization, but it has been slow in digital technologies – especially in comparison to industries
like banking or media. However, in the past few years, due to changing consumer trends, the steel industry too is picking
up pace and innovations in analytics, automation, mobile solutions are slowing making their way and directing the industry
players to higher efficiency.

Critical Case Questions

1. How will the rise of digital technologies affect the business and business models of Automotive OEMs?
2. How will the impact of digital technologies affect the business and business models of suppliers to Automotive
OEMs?
3. How can Tata Steel as a supplier to Automotive OEMs mitigate the risk of the above impact and capitalize on this
opportunity in various function areas?
4. Assess the benefits of adoption of digital technologies by commercial functions in Tata Steel
5. Outline a near to long term strategy that Tata Steel should adopt in order to keep pace with this advent of
digitization
Domain Marketing & Sales
Name of the Case: Knocking Consumer’s Door at the Right Time

Introduction

TATA Steel (TSL) has pioneered the selling of branded rebars (TATA Tiscon), otherwise a commodity, in the B2C space to
individual house builders (IHBs) and is the largest player in this segment. To ensure continued engagement with the same
customer and get a larger share of his wallet, TSL has also come up with its brand of doors and windows that combine the
strength of steel with the elegance of wood. With entry in consumer durables space TSL aims to guard itself against cyclicity
associated in steel business and also command better margins through value added downstream products.

Background

‘Pravesh’ is the brand name for steel doors with wood finish, market tested in July 2014 and commercially launched in
April 2015. Our research and consumer insight revealed that security and aesthetics are the prime need from exterior
doors. While steel has inherent strength, it is not considered to be 'aspirational' due to local fabrication. We wanted to
provide the consumers with a high-quality solution that combined the aesthetics of wood with the security and strength
of steel. Based on these insights, ‘‘Pravesh’’ was born (in many Indian languages, ‘‘Pravesh’’ means ‘entry’): factory finished
steel doors with wood finish. It addresses all the problems experienced in wooden door – like inconsistent quality, termite
infestation, prone to catching fire, warpage, regular maintenance, environment-unfriendly etc. Tata Pravesh has outlets in
120 districts in India and targets 2 market segments – IHBs in Tier 1/ Tier 2 cities (B2C) and Builders, Promoters etc. in
Education, Health, Commercial (IT parks, corporates), Residential segments etc. (B2B). We have a 2-tier distribution
network and we largely ride on Tata Tiscon dealers to be visible to consumers at the time they are in the foundation stage
of the construction. There is a field team of sales executives for door to door consultative selling.

Problem Statement/Challenges Faced

Tata Pravesh is facing the challenge of category conversion and is a first mover in building an organized market for steel
doors with wood finish. Typically, wood has been a century old choice for doors and there is lack of awareness about steel
doors especially for residential purposes. Additionally, the imagery associated with steel doors is of heavy and morose
looking industrial doors. First challenge is to change the mindset of people about steel doors especially at home and second
is to reach consumers just at the right time to maximize conversion. Also being a complete solution including shutter,
frame and accessories our door can’t be installed in a situation where wooden frame are already put up. So timing of our
customer connect is pertinent.
Critical Case Questions

1.) What should be the marketing communication/ creative pitch to establish Tata Pravesh as consumer’s first choice
(synonymous with category) when it comes to doors & windows?
2.) What should be the marketing channels/mix (ATL/BTL) to reach our TG at the right time?
3.) How can we best engage B2B (Housing & Commercial) influencers and make Tata Pravesh their top recommendation
when it comes to projects?
4.) How can we maximize footfalls at our branded outlets and touch base with consumer community in the catchment
area?
5.) Suggest innovative internal branding tools for connecting with vast Tata Community.
Domain Marketing & Sales
Name of the Case: Price-value mismatch in TSL Wardrobes (Strategy)

Introduction
TATA Steel (TSL) has pioneered the selling of branded rebars (TATA Tiscon), otherwise a commodity, in the B2C space to
individual house builders (IHBs) and is the largest player in this segment. To ensure continued engagement with the same
customer, TSL has also come up with its brand of steel doors with wooden finish (TATA Pravesh). Going further, TSL aims
to provide wardrobe solutions made of steel as well.
Wall to wall wardrobes is a Rs12-15,000 Crore industry in India, of which ~80% is unorganized (local carpenters & wood
workers). The industry continues to grow at a rate of ~ 15%.
Background

TSL has come out with a wardrobe solution that combines the durability of steel and aesthetics & customizability of wood
through a limited number of modular wardrobe & loft units that when combined, can fill up the customer’s space, which
currently no other steel furniture can do. The steel body makes it termite & moisture proof, the modularity of internal parts
(drawers, lockers, shelves) makes it customizable, and since the product comes in flat packs, with a one-day installation
time, it is a hassle-free solution. (Ref: Product brochure). The product has already been launched across North India and is
being consultatively sold through a typical 3-tier sales channel. The channel has significant overlap with that of TATA Pravesh
as these are seen to be allied goods in the home-making space. A majority of TATA Pravesh’s buyers in the retail segment
are SEC A+, A buyers (35-45 years old) who are building a new home in Tier I & Tier II cities & towns.
Problem Statement/Challenges Faced

Based on the market feedback, it seems that there is a price-value mismatch in the current product offering. The customer
does not find anything unique or new about the product in its features or finish. Just customisable steel wardrobes are not
enough for TSL to fetch prices of ~Rs. 1400/sq. ft.-Rs. 2200/sq. ft. depending on the level of internal customization.
Competition (Godrej Kreations) is priced closer to Rs. 1100-1200/sq. ft. with a solid brand presence. Engineered wood
wardrobes made by a carpenter at home can cost anywhere between Rs. 800-1200/sq. ft depending on the quality of
accessories, plywood, laminates, carpenter skill.
The market already has a natural preference for wood/engineered wood as the material. Steel wardrobes are either used
in the store room or are perceived to be an out of vogue product. Rising affluence is likely to pull down the demand for
steel wardrobes even further. Termite proof & moisture proof – the benefits that are usually associated with steel – are
now also being provided by several cheaper engineered wood products lowering the appeal of steel even further.
Manufacturing costs (TSL sources through a third party manufacturer) form ~45% of the product cost. Channel margins
account for 27.5% of the price with the remainder being made up by transportation & installation charges. Due to the
currently low volumes, fixed costs are on the higher side. This is causing the price of TSL wardrobes to be least 25% higher
than competition. The manpower costs for selling is rising further due to the presence of well-funded startups that are
employing people en-masse for simple food/item delivery jobs.
Critical Case Questions

1.) Is there a price-value mismatch in the current product offering? If yes, please list them
2.) If yes, what should TSL do to reduce the Price-Value gap for its wardrobes?
a. What should be the ideal price point?
b. What should be the positioning of these wardrobes and who should the product be targeted at?
c. How can the product offering be improved?
Domain Marketing & Sales
Name of the Case: Brand Synergy for GC (Galvanized Corrugated) Sheets in Retail roofing market (Retail)

Introduction:

To devise the best brand strategy to be followed by Tata Steel post acquisition of Bhushan Steel Ltd. (renamed as TSBSL –
Tata Steel Bhushan Steel Ltd) in selling galvanized retail products in the face of competing products currently being sold
by TSL and TSBSL in the market.
Tata Steel Limited had a turnover of Rs. 88,987 crores in India In FY19 and Rs. 21,129 crores in FY20-Q1. Around 44% of its
turnover comes from branded products. Post-acquisition of Bhushan Steel in May 2018 which has led to an increase in its
installed capacity to produce galvanized products from 0.65 million tons to 1.65 million tons.
This project focusses on post-acquisition and post-integration branding strategy to be adopted for following two retail
product categories of the merged entity to maximize sales and capacity utilization.
1) Galvanized corrugated (GC) sheets
Tata Shaktee is the brand of galvanized corrugated sheets of Tata Steel Ltd. It is the market leader with 30% market share
and commands a premium of 15% at consumer level due to its superior quality. Galvanized corrugated (GC) sheets are
used for roofing by individual house builders mostly in hilly, rural and semi-urban areas. It is also used for factory sheds &
warehouses by businesses, industrial and institutional consumers.
TSB (erstwhile Bhushan Steel) had a brand of galvanized corrugated sheets called Bhushan Shakti which had 23% market
share before getting acquired by Tata Steel. Under the same brand Bhushan Shakti, the company also sold galvanized plain
sheets.
Background:

After acquiring Bhushan Steel in May 2018, Tata Steel BSL (TSBSL), the new entity, changed the name of its galvanized
corrugated brand from Bhushan Shakti to TSB GC to prevent cannibalization of Tata Shaktee and eliminate the confusion in
the channel. However due to premium levels of ~5% (of Tata Shaktee over TSB GC) and some other factors (like ink jet
marked text “A product of Tata Steel BSL…” mentioned on TSB GC), the confusion in the channel and cannibalization of Tata
Shaktee continued. Similar issues are prevailing between Tata Kosh (galvanized plain sheets from Tata Steel) and TSB Shakti
(galvanized plain sheets from TSBSL).
Problem Statement/Challenges Faced:

As Tata Steel completely integrates TSBSL into its fold by Dec 2019, it faces the dilemma of continuing with both the brands
in both the product categories or going for a single brand in each of the product categories.
Critical Case Questions

1. Which Brand strategy should be adopted going ahead – Single Brand or Multiple Brands?
2. Should the existing channel to be used or a new channel be created for increased volumes?
3. If two-brand strategy is proposed, what kind of differentiation should be created between the two brands?