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92649434-PROJECT-of-Marketing-Mix
92649434-PROJECT-of-Marketing-Mix
By
DASARI KARTHIK
D. SRINATH REDDY
DY.GM,(Marketing)
RINL, Visakhapatnam
1
CERTIFICATE
This is certify that the project work entitled “A STUDY ON MARKETING MIX
“is a project work done and submitted by DASARI KARTHIK in partial fulfillment of the
D. SRINATH REDDY
DY.GM,
Marketing
RINL, Visakhapatnam
2
3
DECLARATION
Place:
4
ACKNOWLEDGMENT
providing required facilities throughout my project work and for the valuable
DEPARTMENT who provided the facilities for the completion of this project
work.
5
CONTENTS
CHAPTER -1
CHAPTER -2
Industry profile
Company profile
CHAPTER -3
Product profile
CHAPTER -4
CHAPTER -5
Appendix
Bibliography
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INTRODUCTION
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8
Marketing
The process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that satisfy
definition every five years. The next review of will take place in 2012.
1935
performance of business activities that direct the flow of goods and services from
producers to consumers.
1985
9
Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods and services to create exchanges that
2004
2007
‘Marketing is the human activity directed by satisfying needs and wants through
exchange process.’
- Philip Kotlar
Marketing mix
The mix of controllable variables that the firm/library uses to reach desired
use/sales level in target market, including price, product, place and promotion-
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Four P's
Product
Price
Place
Promotion
4 P’s. For a library this would be embodied in price of user’s time to access
and promotion is publicity, The term "marketing mix" was coined in 1953 by Neil
prepares his own recipe as he goes along, sometimes adapts a recipe from
one else has tried.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four
Product mix :-
“Product” refers to the goods and services you offer to your customers.
Apart from the physical product itself, there are elements associated with your
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product that customers may be attracted to, such as the way it is packaged. Other
product attributes include quality, features, options, services, warranties, and brand
name. Thus, you might think of what you offer as a bundle of goods and services.
Your product’s appearance, function, and support make up what the customer is
actually buying. Successful managers pay close attention to the needs their product
bundles address for customers. Your product bundle should meet the needs of a
particular target market. For example, a luxury product should create just the right
image for “customers who have everything,” while many basic products must be
positioned for price conscious consumers. Other important aspects of product may
Your knowledge of your target market and your competitors will allow you to offer
a product that will If you are considering starting a new business or adding a new
product, then make sure the product bundle will fit your business’s strengths and
instance, if your business is very good at timely response to customers, then timely
service should be an important part of your product bundle. Think long term about
your venture by planning for the ways you can deepen and broaden your product
bundle. For instance, you may be able to take advantage of opportunities to add
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value through processing, packaging, and customer service. Other future growth
may allow you to offer your product to different customers. Start-up businesses are
most successful when they concentrate their efforts on one product or one market,
like a restaurant or a car service center does. Later growth may occur in the same
materials, production processes, and distribution methods are similar, which means
you do not have to acquire new suppliers, skills and equipment, and distribution
methods.
Price mix :-
. “Price” refers to how much you charge for your product or service.
Determining your product’s price can be tricky and even frightening. Many small
business owners feel they must absolutely have the lowest price around. So they
may be a signal of low quality and not part of the image you want to portray. Your
pricing approach should reflect the appropriate positioning of your product in the
market and result in a price that covers your cost per item and includes a profit
margin. The result should neither be greedy nor timid. The former will price you
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out of the market; pricing too low will make it impossible to grow. As a manager,
you can follow a number of alternative pricing strategies. In the next column are
eight common pricing strategies. Some price decisions may involve complex
maintain your price relative to your competitors’ prices. In some cases, you
can directly observe your competitors’ prices and respond to any price
more difficult.
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• Going-rate: A price charged that is the common or going-rate in the
• Psychological: Based on a price that looks better, for example, $4.99 per
pound instead of $5.00 per pound. After you decide on your pricing strategy,
the amount of money you will actually receive may be complicated by other
pricing aspects that will decrease (or increase) the actual amount of money
you receive. You will also have to decide how to determine: • Payment
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• Seasonal allowances: Reductions given when an order is placed during
seasons that typically have low sales volumes to entice customers to buy
target markets.
geographic regions.
• Volume discounts and wholesale pricing: Price reductions given for large
purchases.
• Cash and early payment discounts: Policies to speed payment and thereby
provide liquidity.
• Credit terms: Policies that allow customers to pay for products at a later
date.
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• The methods discussed here should be a base from which to construct your
price. Your options will vary depending on how you choose to sell your
product. For instance, if you make a product but don’t sell it directly to the
customer, then you will want to know who sets the retail price and what
margin they will require. Tracing the path of your product from production
research needed to understand the pricing along the distribution path will be
• Whatever your price may be, ultimately it must cover your costs, contribute
counter the competition’s offer, and avoid deadly price wars. Remember,
• “P” that generates revenue, while the other three “P’s” incur costs. Effective
Place:-
“Place” refers to the distribution channels used to get your product to your
customers. What your product is will greatly influence how you distribute it. If, for
example, you own a small retail store or offer a service to your local community,
then you are at the end of the distribution chain, and so you will be supplying
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directly to the customer. Businesses that create or assemble a product will have
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Direct Sales:
product, whether it be sales through retail, doorto- door, mail order, e-commerce,
on-site, or some other method. An advantage of direct sales would be the contact
you gain by meeting customers face to face. With this contact you can easily detect
market changes that occur and adapt to them. You also have complete control over
your product range, how it is sold, and at what price. Direct sales may be a good
place to start when the supply of your product is limited or seasonal. For example,
direct sales for many home-produced products can occur through homebased sales,
markets, and stands. However, direct sales require that you have an effective retail
and maintaining this retail interface is not of interest to you or you are not good at
Instead of selling directly to the consumer, you may decide to sell through
Doing this may provide you with a wider distribution than selling direct while
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decreasing the pressure of managing your own distribution system. Additionally,
you may also reduce the storage space necessary for inventory. One of the most
many situations, wholesalers and retailers have customer connections that would
Market Coverage:
No matter whether you sell your product direct or through a reseller, you
must decide what your coverage will be in distributing your product. Will you
often at low prices. Large businesses often market on a nationwide level with this
little time shopping for, like chewing gum—do better with intensive (widespread)
distribution.
upscale products are sold through retailers that only sell high-quality products.
Products that people shop around for sell better with selective distribution.
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Exclusive distribution restricts distribution to a single reseller. You may
become the sole supplier to a reseller who, in turn, might sell only your product.
You may be able to promote your product as prestigious with this method, though
you might sacrifice sales volume. Specialty products tend to perform better with
exclusive distribution.
Other Place Decisions Product characteristics and sales volumes will dictate
what inventories to maintain and how best to transport products. Additionally, the
logistics associated with acquiring raw materials and ensuring that final product is
in the right place at the right time for the right customers can comprise a large
percentage of total costs and needs careful monitoring. You may decide to have a
combination of all the distribution methods. Whatever you decide, choose the
Promotion:-
you let people know what you’ve got for sale. The purpose of promotion is to get
people to understand what your product is, what they can use it for, and why they
should want it. You want the customers who are looking for a product to know that
your product satisfies their needs. To be effective, your promotional efforts should
of your product. You should focus your market research efforts on identifying
these individuals. Your message must be consistent with your overall marketing
image, get your target audience’s attention, and elicit the response you desire,
select for your message will likely involve use of a few key marketing channels.
Promotion may involve advertising, public relations, personal selling, and sales
potential local customers about your business. Mid-to-late week is generally the
and trade magazines, flyers, and a logo, allow you to explain what, when,
where, and why people should buy from you. You can send letters, fact sheets,
extension
your products.
advertising is commonly found for milk, beef, and pork. Public relations (PR)
involved in the community, and providing open house days. News stories, often
through seminars or reaching them through trade shows. Your target audience
shows, setting up displays at public events, and networking socially at civic and
business organizations.
Final Comment
in your marketing mix. Often, decisions on one element will influence the choices
available in others. Selecting an effective mix for your market will take time and
effort, but these will pay off as you satisfy customers and create a profitable
business. The worksheets that follow will help you construct your marketing plans.
Once you have a good marketing mix—the right product at the right price, offered
in the right place and promoted in the right way—you will need to continue to stay
More recently, three more Ps have been added to the marketing mix namely
People, Process and Physical Evidence. This marketing mix is known as Extended
Marketing Mix.
People: All people involved with consumption of a service are important. For
Process: Procedure, mechanism and flow of activities by which services are used.
Also the 'Procedure' how the product will reach the end user.
Four Cs:
CONSUMER
COST
CONVENIENCE
COMMUNICATION
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Robert F. Lauterborn proposed a four Cs classification in 1993.[2] The Four
Cs model is more consumer-oriented and attempts to better fit the movement from
that when combined and focused to a specific industry, creates a custom solution
factors affect Cost, including but not limited to the customer's cost to change or
implement the new product or service and the customer's cost for not selecting a
account the ease of buying the product, finding the product, finding information
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Promotions feature is replaced by 'Communication' which represents a
public relations, personal selling, viral advertising, and any form of communication
4ps 4cs
Place Convenience
Promotion Communication
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Marketing Mix
Brand name
Packaging
Sizes
Services
Warranties
Returns
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INDUSTRY PROFILE
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The history of steel-making in India can be traced back to 400 BC when the
Greek emperors used to recruit Indian archers for their army who used arrows
tipped with steel. Many more evidences are there of Indians’ perfect knowledge of
Mesopotamia and Egypt testify to the fact that use of iron and steel was known to
mankind for more than six thousand years and that some of the best products were
made in India. Among the widely-known relics is the Iron Pillar near Qutab Minar
in Delhi. The pillar, built between 350 and 380 AD, did not rust so far -----an
engineering marvel that baffles the scientists even today. Yet another engineering
feat is the famous Sun Temple at Konark in Orissa, built around 1200 AD, where
steel structurals were used for the first time in the world.
These were the halcyon days when India flourished in all directions and
when its prosperity was a matter of envy for the foreigners. But as ill luck would
have it, India’s prosperity gave way to poverty after the advent of the foreign rule.
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Steel Role plays a vital role in the development of any modern economy.
Beginnings
The first notable attempt to revive steel industry in India was made in 1874
when the Bengal Iron Works (BIW) came into being at Kulti, near Asansol in West
named Joshua Marshall Heath, had set up a small plant at Porto Novo on Madras
Coast. Heath produced in his plant pig iron at the rate of forty tonnes a week. His
one tonne of low quality pig iron which proved to be too expensive for Heath to
carry on in the face of stiff competition from the British steel industry. The BIW
made considerable improvement in the process of iron and steel making. It used
coke as the fuel instead of charcoal. But the plant fell sick as the source of funds
dried up. It was taken over by the Bengal Government and was rechristened as
Barakar Iron Works. In 1889 the Bengal Iron and Steel Company acquired the
plant and by the turn of the century the Kulti plant became a success story. It
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produced 40,000 tonnes of pig iron in 1900 and continued to produce the metal
until it was taken over by Indian Iron and Steel Company (IISCO) in 1936.
For modern India’s iron and steel industry August 27, 1907 was a red-letter
day when the Tata Iron and Steel Company (TISCO) was formed as a Swadeshi
venture to produce 120,000 tonnes of pig iron. The TISCO plant at Sakchi
(renamed Jamshedpur) in Bihar, started pig iron production in December 1908 and
rolled out its first steel the following year. TISCO had expanded its production
capacity to one million tonnes ingot by the time the country achieved freedom. The
Tatas, as Gandhiji said, represented the "spirit of adventure" and Jamsetji Tata, in
the words of Jawaharlal Nehru," laid the foundation of heavy industries in India".
The British rulers disfavoured this and other attempts to start indigenous industry.
It was chiefly with the help of American experts that the Tatas started their
industry. Its childhood was precarious but the war of 1914-18 gave it a fillip.
Again it languished and was in danger of passing into the hands of British
debenture holders. But nationalist pressure saved it. In 1918, soon after the war,
Indian Iron and Steel Company (IISCO) was formed. The then Mysore government
also decided to start an iron works at Bhadravati. While IISCO started producing
pig iron at Burnpur in 1922, the Mysore Iron and Steel Works took about 18 years
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to start its plant. Meanwhile, the Bengal Iron Works went into liquidation and
merged with IISCO. The Steel Corporation of Bengal (SCOB) formed in 1937,
started making steel in its Asansol plant. Later in 1953, SCOB merged with IISCO.
Prime Minister Nehru firmly believed that "no country can be jpolitically
its resources to the utmost". Nehru’s ideas about India’s development were broadly
mixed economy. Industries were divided into four categories. In the first category
were strategic industries which were made the monopoly of the Government. In the
second category were six industries which included, among others, coal, iron and
steel.
government in the public sector without disturbing the existing ones in the private
sector. Eighteen industries, including heavy castings and forings of iron and steel,
ferro alloys and tool steel were covered by the third category and the rest of the
development of basic steel industry while the private sector was to benefit through
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the establishment of downstream units which would use pig iron, billets, blooms
In keeping with the spirit of the resolution the Government decided to start a
chain of steel plants all over the country in the public sector. The first such plant
three plants had an initial production capacity of one million tonne ingot. Durgapur
was followed by a steel plant at Bokaro in Bihar. The onward march of Indian steel
did not stop at Bokaro. The fifth public sector steel plant was set up at
Visakhapatnam in andhra Pradesh. As a matter of fact, the country was dotted with
steel and steel-related plants in public and private sectors, like Alloy Steel Plant,
Salem Steel Plant, Kalinga Iron Works, Malavika Steel Ltd., Jindal Vijaynagar
Steel Ltd., to name only a few. About the same time TISCO launched its two-
1956 and then in 1991. The resolution modified in 1956 brought changes in the
category pattern and listed more industries for the public sector than did the earlier
one, though it was not harsher towards the private enterprise. In the new industrial
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policy announced in 1991 iron and steel industry, among others, was included in
the list of industries reserved for the public sector and exempted from the provision
of compulsory licensing. With effect from May 24, 1992 iron and steel industry
was included in the list of ‘high priority’ industry for automatic approval for
foreign equity upto 51% (now 74%). Export-import regime for iron and steel has
The new policy has already borne fruit. The finished steel pdroduction in India
has gone up from mere 1.1 million tonnes in 1951 to 23.37 million tonnes in 1997-
It has been estimated that the demand for finished steel in 2001-02 would
touch 38.68 million tonnes and the projected availability of 38.01 tonnes is almost
adequate to meet the domestic demand along with export of six million tonnes.
Similarly, by 2006-07, the final year of the tenth plan, the demand for finished
steel would be around 48.80 million tonnes, providing adequate surplus for
However, there is hardly any scope for complacence over the fact that India
continues to be the 10th largest steel producer in the world. In 1997 India’s per
capita steel consumption was only 22 kg which was much below the world average
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of about 126 kgs. Even if the domestic demand grows up from 34.5 million tonnes
to 100 million tonnes in 2025 the industry is unlikely to catch up with the
global market. According to World Steel Dynamics, the total cost of steel
production in the USA is $510 per metric tonne while in Japan it is $550, in
Germany $557, in Canada $493 and in India it is $497. This is because of high
material cost due to high excise and import duties. Reduction of cost on these
accounts will make Indian steel more competitive in the world market. Indian steel
can reasonably expect a good market in the neighbouring countries now that the
Before the economic reforms of the early 1990s the Indian steel industry was
a predominantly regulated one with the public sector dominating the industry.
India's steel industry went through a rough phase between 1997 and 2001
when the overall global steel was facing a downturn and recovered after 2002. The
major factors that led to the revival of the steel industry in India after 2002 was the
rise in global demand for steel and the domestic economic growth in India.
India has now emerged as the eighth largest producer of steel in the world
with a production capacity of 35MT. Almost all varieties of steel is now produced
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in India. India has also emerged as a net exporter of steel which shows that Indian
The growth of the steel industry in India is also dependant, to a large extent,
industry of India has led to increase in the domestic demand for steel.
More than 3500 different varieties of steel are available in the steel industry
Flat Products:
Flat products include plates and hot rolled sheets such as coils and sheets.
Flat products are derived from slabs. One of the major uses of steel plates is in ship
building.
Long Products
Long products include bars, rods, wires, ropes and piers. These are called
long products due to their shapes. Long products are made from billets and blooms.
Long products are mostly used in housing and construction and also in rail tracks.
domestic demand. India's rapid economic growth and soaring demand by sectors
like infrastructure, real estate and automobiles, at home and abroad, has put Indian
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steel industry on the global map. According to the latest report by International
Iron and Steel Institute (IISI), India is the seventh largest steel producer in the
world.
The origin of the modern Indian steel industry can be traced back to 1953
Orissa was signed between the Indian government and the German companies
Fried Krupp und Demag AG. The initial plan was an annual capacity of 500,000
tonnes, but this was subsequently raised to 1 million tonnes. The capacity of
Rourkela Steel Plant (RSP), which belongs to the SAIL (Steel Authority of India
Ltd.) group, is presently about 2 million tonnes. At a very early stage the former
steel industry in India. This resulted in the Soviet-aided building of a steel mill
producers, other major producers and the secondary producers. The main
producers and other major producers have integrated steel making facility with
plant capacities over 0.5 mT and utilize iron ore and coal/gas for production of
steel. The main producers are Tata Steel, SAIL, and RINL, while the other major
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producers are ESSAR, ISPAT and JVSL. The secondary sector is dispersed and
consists of:
1) Backward linkage from about 120 sponge iron producers that use iron ore
furnaces and energy optimizing furnaces that use iron ore, sponge iron and
3) Forward linkage with about 1,200 re-rollers that roll out semis into finished
nearly 6% of its crude steel is still produced using the outdated open-hearth
process.
steel output at the biggest Indian steelmaker is roughly 144 tonnes per worker per
industries.
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Steel production in India is also hampered by power shortages.
India is deficient in raw materials required by the steel industry. Iron ore
deposits are finite and there are problems in mining sufficient amounts of it. India's
The Role of Iron and Steel Industry in India GDP is very important for the
development of the country. In India the visionary Shri Jamshedji Tata set up the
first Iron and Steel manufacturing unit called Tata Iron and Steel Company, at
Jamshedpur in Jharkhand. Iron and steel are among the most important
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Role of Iron and Steel Industry in India GDP-Facts.
The Iron and Steel Industry in India is one of the fastest growing sectors.
The demand drivers for the Indian Iron and Steel industry are increase in the
The amount of crude steel produced in 2006-07 was 50.71 million tonnes
The amount of finished steel produced in 2006-07 was 51.9 million tonnes
• The production of finished carbon steel was 24.8 million tonnes in the year
2006-07.
• It is expected that India would become the second biggest producer of steel
within the year 2016 and the production per year would be 137 million
tonnes.
• The exports pertaining to the steel industry was 6.26 % during the period
2006-07.
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Role of Iron and Steel Industry in India GDP-Consumption
• The domestic consumption of steel has grown by12.5% in the past three
years.
• The domestic steel consumption in the year 2006-07 was 41.14 million
tonnes
• The average growth rate of the Indian Iron and Steel Industry is 11.36%
• The construction projects all over India are major consumer of steel
• As the per capita consumption of steel is lower than other countries, so the
The Arcelor Mittal, which is the largest steelmaker in the world, has plans of
annually, in India.
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The Tata Steel ranks 5th in the world steel production and the company have
Tata Steel. The Algoma Steel, Canada was acquired by Essar Global for US$ 1.63
billion.
under RINL, is the country's first shore-based and sixth public sector Integrated
Steel Plant.
SAIL with its corporate office in New Delhi operates and manages five
integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, a plant
of the Indian Iron and Steel Co. Ltd. (IISCO), which is a wholly owned subsidiary
of SAIL. SAIL also has four Special and Alloy Steel and Ferro-alloys units at
and Steel Limited respectively which are also subsidiaries of SAIL. The IISCO-
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Ujjain Pipe and Foundry Company Limited, a subsidiary of IISCO, manufactures
cast iron spun pipes at its works at Ujjain. Besides, SAIL has seven Central Units
viz. Research and Development Centre for Iron and Steel, Centre for Engineering
plants is done through the Central Marketing Organisation, Calcutta which has a
developing and exploiting mineral resources, other than coal, oil, natural gas and
atomic minerals. Presently, its activities are concentrated on mining of iron ore and
diamonds. NMDC operates the largest mechanised iron ore mines in the country at
Bailadila and Donimalai and the Diamond mines situated at Panna. J & K Mineral
NMDC, incorporated for development of various minerals in the state of Jammu &
Kashmir.
The Tata Iron and Steel Company, located at Jamshedpur is the best known
symbol of India's industrial growth. The company has exported products worth
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more than US $ 182.3 million in 1996-97. Tata Steel remains India's largest single
exporter of high quality, value added steel products. It is a blue chip company, and
Tata Steel is India's single largest integrated steel works in the private sector
with a market share of over 13%. It has, over the years, employed state-of-the-art
products as well as minerals and ferro-alloys. Its steel products include HR coils,
tubes, bars, rods, structurals, strips, sheets and bearings. The steel plant is
integrated with activities ranging from mining of raw materials to finished rolling
of steel. Over the years the company has promoted several associate companies in
India’s iron and steel industry which had a glorious past and now look forward to a
bright future.
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COMPANY PROFILE
47
Company Profile
Steel occupies the foremost place amongst the materials in use today and
pervades all walks of life. All the key discoveries of the human genius – for
automobile, aero place and computers, are in one way of other ,fastened together
with steel and with its sagacious and multitude of useful properties making it
following integrated steel plants with foreign collaborations were set up in the
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4. Rourkela Steel plant Germany
Vision
• Deliver high quality and cost competitive products and be the first choice of
customers.
people.
Mission
raw materials; to produce steel at international standards of cost and quality; and to
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Objectives
contemporary levels and in the process increase their capacity by 1 Mt, thus
• Be amongst top five lowest cost liquid steel producers in the world
Core values
• Commitment
• Customer satisfaction
• Continuous Improvement
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Company Policies
Visakhapatnam steel plant has committed to meet the needs and expectations
of customers and other interested parties,the occupational health and safety of our
• Comply with all relevant legal regulatory and other requirements applicable
and training.
51
Customer policy
transparency
• VSP will strive to meet more than the Customer needs and expectations
• VSP greatly values its relationships with Customers and would make efforts
HR policy
• Visakhapatnam Steel Plant, believe that employees are the most important
committed to :
accountability
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• Encourage teamwork, creativity, innovativeness and high achievement
orientation
Energy policy
IT policy
adding value to the business of steel making. Towards this, RINL shall follow best
processes with total user-involvement, and thus delivering integrated and quality
and other IT infrastructure and ensure high levels of data and information security.
need, role and responsibilities of the personnel and facilitate the objective of
Enrich the skill-set and knowledge base of all related personnel at regular
Expansion plans
Visakhapatnam Steel Plant has planned and proposed for increasing the capacity
from existing 3.6MT to 6.3MT. On 28th October 2005, clearance has been
54
obtained from Govt. of India in record time of 10months for Go-Ahead. On 11th
Project. On 20th May, Honorable Prime Minister Manmohan Singh launched the
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Raw Material Handling plant is meant for transporting materials from
Raw material yard/Base mix yard to various process units of the plant. The
Major Raw materials required for Iron and Steel making are are Iron ore lump,
Iron Ore fines, Sized iron ore, Flux limestone / dolomite, manganese, Quartzite
coking coal, Non-coking coal ( for Boiler operation & For Pulverized coal
injection )and coke. Lump iron ores, iron ore fines and flux such as limestone
and dolomite received by railway rake are unloaded in wagon tippler and
suitable stock yard machine and are crushed in Ore crushing plant, Flux crushing
plant and coke crushing plant respectively to produce the size required.
machine in base mix yard and blended while reclaiming by blender reclaimer,
while preparing base mix which then transported to Sinter plant for sinter
production. For feeding material to new blast furnace, sized ore and flux is
conveyor. Sinter produced in sinter plant and coke from existing/new coke ovens
necessary calcined lime from stock yard and new lime calcining plant
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respectively is transported to SMS by Conveyor. The waste product from the
plant is mainly dust and method of their disposal is through dust suppression
system and inter plant transportation.
higher availability of Hot metal. The Raw materials required for manufacturing
process are – Hot Metal, Scrap,Flux, Ferro alloys. New Steel melt shop comprising
of two(2) converters each of 150 cu.m capacity. 2Nos. Laddle Furnaces were
gases and 1 No. RH degaussing system is envisaged for production of special grade
with low gas contents. Three(3) 6 strand strand billet mill. Three casters are available
for 200 days in a year and two casters are available for 165 days in a year. Cast
Billets will be fed to new bar mill and wire rod mill. Part of rolled billets will also be
for sale. The other major facilities installed are – Hot Metal Desulphurization Plant,
Scrap Handling system,BOF Gas cleaning Plant, Secondary Emission control, Ferro
alloy Handling Facilities, Ladle & tundish prepation facilities. New technology –
& bath level measurement and benefits derived are reduced consumption of
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ferroalloys, better yield and quality, Cleaner environment and measurement of
refractory lining. Continuous casting Machines - Auto mould level control & 100%
Billet casting and benefits derived are reduced in break outs and energy saving. LF &
RH - Electro magnetic stirrer and benefits derived are cleaner steel. Provision is
made and tendering activities for award of Consultancy is in process for installation
will be in range of 5.5 to 20 mm (dia). Provision is kept for the mill for producing
7.7 ltpy on the market demand. The rolling mill will use the cast billets of size
150 x 150 mm having length of about 12 m and rolled billets of size 125 x 125 x
9.7 to 10.2 M. The mill will roll Low carbon (85,000 tons/ yr), Medium carbon
(93,000 tons/yr), High carbon (93,000 tons/yr), spring steel (25,000 tons/yr), cold
heading (1,34,000 tons/yr), welding rod (85,000 tons/yr), Bearing steel (25,000
tons/yr), Free cutting steel (35,000 tons/yr) and case hardening (25,000 tons/yr).
The billet will be charged into 200 ton / hr capacity reheating furnance one by
one. The billets after heated upto 1200 deg C will be discharged. The billets will be
rolled down in the breakdown mill and passes through pre –finishing mill. The
finished product will come out of reducing and sizing mill in coil form. The output of
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size wise product mix are - 5.5.mm dia(mm) – 1,50,000tons/ yr , 6.0-7.5 dia(mm) –
2,40,000 tons/ yr, 8.0-16 dia (mm) – 1,75,000 tons/ yr, 17-20.64 dia (mm) – 35,000
tons/ yr.
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Purpose
AWARDS & ACHEIVEMENTS OF VSPYear
1st Steel Minister's Trophy for VSP’s excellent Overall 2010
the year 2006-07 performance
Best Management Practices' In recognition of VSP’s
Award by Govt. of AP performance in the areas of
Production, Productivity, 2010
Labour Practices, Industrial
Relations and Corporate
Social Responsibility
Indira Gandhi Rajbhasha shield' For effective 2010
given by His Excellency Vice implementation of
President of India Dr. Hamid ‘Rajbhasha’, Hindi in VSP
Ansari
5S "Strong Commitment" for 5 S Excellence 2010
Award by CII
Viswakarma Rashtriya Puraskar National level awards
Awards, 6th time in a row instituted by Ministry of
Labour, Govt. of India for
the workmen in industries.
Recognition for the
innovative suggestions 2010
resulting in higher
efficiency, productivity,
quality, safety & working
conditions, house-keeping
and import substitution at
enterprise level.
5 No.s of the prestigious Prime Given annually to the 2010
Minister Shram Awards, excellently performing
1'Shram Bhushan' and 4 'Shram workers
Veer' awards,presented by
Ministry of Labour and Welfare
National Sustainability Award' Second prize amongst the 2010
integrated steel plants
given by the Ferrous
Division of Indian Institute
of Metals
• ISO 9002 for SMS and all the downstream units –a unique distinction in the
• ISPAT Surakha Puruskar(First prize ) for longest Accident free period 1991-
1994.
61
COKE OVENS IN VSP
SLINTER PLANT
62
PRODUCT PROFILE
63
Product Profile:
plant is the only shore based integrated steel plant in the country.
symbol of innovativeness and excellence right from its nascent stage and id=s
technological trends in the Indian steel Industry, be it the 7 Mtr. tall coke oven
batteries 3200 cum. Blast furnaces. 100% continues casting , temporal and
and environment is reiterated by being the first integrated steel plant in the country
dibverse shapes like TMT bars ,wire rod coils angles, channels ,beams, rounds,
squares and villets to exaction natonal and international standards meeting the
64
The external waves of the Bay of Bengal have become an intrinsic part of
VIZAG STEEL culture to face the challenges of change through its technical know
how to produce tailor made special steels to suri the Automobiles , Engineering
Products of VSP
WIRE RODS
STRUCTURALS
PLAIN ROUNDS
RE –BARS Fe 500
SQUARES
BEAMS
FLATS
ANGLES
CHANNELS
BILLETS
65
Re – BARS
8 0.363 to 0.426
10 0.567 to 0.666
12 0835 to 0.941
16 1.501 to 1.659
20 2.396 to 2.544
25 3.735 to 3.966
28 4.685 to 4.975
32 6.121 to 6.499
66
ROUNDS
Special features:
Higher yield strength & ulitimate tensile strength couples with Higher percentage
Easy bend ability ,weld ability and excellent ductility ensure economy
Advantages
Resistance to ageing
67
AStandard Grade Remarks Yield UTS %
Strength (N/mm^2) Elongation
(N/mm^2) Min min
5.5,6,6.5,7.5,8,9,10,11,12,12.7,13,14mm
ROUNDS
16,*16.5,*17.5,18,20,*20.64,22,25,28,32,33.5,34,36,38,40,42,45
46.5,48,50,53,56,60,63,35,71,75,77,80mm
REINFORCEMENT BARS
68
8,10,12mm
16,*18,20,*22,25,28,32,36mm
ANGLES
*50 × 50 × 5/6 mm
*60 × 60 × 5/6 mm
*65 × 65 × 6 mm
75 × 75 × 6/8 mm
90 × 90 × 6/8 mm
CHANNELS
MC *40 × 32 × 5.0mm
MC *75 × 40 × 4.8mm
MC 100 × 50 × 5.0mm
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MC 125 × 65 × 5.3mm
MC 150 × 75 × 5.7mm
BEAMS
150 × 75 × 5.0mm
175 × 85 × 5.8mm
BEAMS
BLOOMS
BILLETS
70
125 × 125mm --- 8.0 --- 10.4mts
GRADES
Quality
ROUNDS : Mild steel ,Low, medium carbon ,bright bat & forging
Quality
yield strengths.
WIRE RODS : Low carbon, Wire drawing, bright bar, Electrode Quality,
72
STRUCTURALS
Special features
during handling and transport . Tension free rolling ensures closer tolerances and
negative sectional weight. Universal beam rolled in medium merchant & structural
mill is the most economical section which has got better sectional properties .has a
Export products
Angles
73
Beam
Size
Web Thickness Sec. Wt Remarks
(mm)
5.3 +/-0.7% 18.80 +/- Flance Thickness : 8.0 +/-
180 X 91
4% 1.0%
120 X 5.0 +/-0.7% 19.90 +/- Flance Thickness : 8.0 +/-
114 4% 1.0%
Billets
Channels
74
Pig iron
SIZE: Pigs with upto two notches upto 45kgs in weight.chips/broken pieces
below 25mm not exceeding 5%. dust, dirt and moisture exceeding 0.5% deductible
Wire rods
75
By products
Granulated slag
Lime fines
Ammonium sulphate
Phenol fractions
Toluene
Anthracene oil
Sol-110(Non Aromatics)
76
MARKETING SYSTEM AT RINL
77
To market the products of VSP marketing department has got total
manpower of 301out of which108 manpower are at Head quarter and rest are in the
For facilitating the sales and increasing customer base by showing presence
all over ,the whole country is divided into five regions and for each region having a
regional office which coordinates with the branch sales offices in their respective
regions.
North (Delhi)
South (Chennai)
East (Kolkata)
West (Mumbai)
Andhra (Vizag)
Jammu
Guwahati
Ranchi
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Srilanka
US
Bangladesh
Middle east
Export of materials also takes place for Nepal but through road only.
Various branches under various regions which are spread all over the country are
as follows….
North
South
East
West
79
Andhra
Here in head quarter marketing dept has the following different sections and each
PROJECT SALES
BCSY
NSY
BC –GATE
SERVICES
EXPORTS
CRM
ADMINISTRATION.
80
MIS
well as domestic and international sales data in desired format to the management .
They prepared a daily sales report for cumulative sales of al over India .
They prepare a marketing performance report in which following details they give
Sales performance
Movement of stock
Sales value
Saleable steel
81
Beside that they prepare all the presentations,which is required by the
This section deals with the sales of special steel products. Various branches
send their requirement of special steel to special steel & product development
section and here they consolidate all the data after discussing with the PPM
department during the weekly coordination meeting, rolling plan is finalized. After
production they also look for the dispatches of the material according to the
requirement. road dispatch is looked by this section but for rail dispatch they co –
ordinate with the planning & dispatch section. For a new product development they
get the request from the branches and discuss with works dept.
produce the grade. They also take the customer feedback about the new product
developed. To interact with the customers directly, a team will visit the customer.
Premises directly at regular intervals and take the feed back on the quality,
The section is also involved in the pricing of special steel product and
82
HQ _ Sales
Head quarter sales come under Andhra region. Customers bring her
according to material availability and then offer letter is given to the customer.
with the offer letter customer goes to finance section and deposit the money and
At the start of the financial year they go in contract with existing as well as
new eligible customers for the year and they are called as LTC .
In tender and scrap sales department two types of sales are being done:
1.Normal sales.
2.Tender sales.
Normal sales
Iron
Steel
CT of billets(0.5-3.0mm)
CE of billets (0.3-0.5mm)
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MR rounds> 25mm (0.5-3.0mm)
Tender sales
E –auction procedure
First customer has to register himself with VSP by opening the site.
Then he sends LOI( letter of interest) with EMD (earnest money deposit).
1. Bid history
6. Their prices are compared with reserved committee prices and those who
qualify of 90% criteria are awarded with materials .
Project sales
infrastructure development and new projects are coming up in different sectors like
roads, housing, bridges, etc. to tap that market one special secton has been created
84
to increase the sales potential and to identify project customers. Some criteria are
laid down to identify the project customer. This section keeps an eye on the
& journals and in turn contact with the region in which it is coming up.
1. Participating in tenders..
BCSY
This stockyard is to facilitate the production taking place in mills area . for
identifying the special steel grade materials various color codes are there. There are
1. Rail dispatch
2. Road dispatch
In case of rail dispatch indents come from planning &dispatch section which
first goes to PPM dept. which in turn raise indent to traffic dept.
85
Traffic dept .in turn raises the indent to railways and gets the required rakes
according to availability.
After that the send an online placement memo for required material to
BCSY.
loads the material in the respective wagons which are mentioned in the placement
memo.
After loading is over ,all the wagons goes for weigh ment and if any
adjustment is needed an adjustment memo is raised by the traffic dept and the fake
Then after final weighing forwarding note os handed over to the railways on
Rail ways then issues RR which is handed over to BC gate by courier. They
inturn issue the STC (stock transfer challan) which goes to the respective branch
on the delivery orders. Then the vehicle in, inside the campus after getting LSGP
86
(loading slip cum gate pass ) from BC gate and the initial weighment of vehicle is
done which is known as final challan and test certicicate is issued which is handed
BC_gate
dispatch .
Incase of rail dispatch after getting the RR ‘s from railways STC s are
generated and in case of road dispatch first LSGP is issued for entry of vehicle and
then after loading final challan with test certificates are issued for exit of vehicle.
NSY
In new stock yard all the crop ends of all the mill products came through
internal wagons and all the defective materials like material containing surface
defects , surface irregularities,, over and under sizes . the main functions going in
Exports
This section looks for all the exports of the materials .at the start of the
financial year based on past data analysis and target set quantities are allocated to
various countries. Tenders are floated for the whole quantity allocated for the
particular countries.sizes ,grades and chemistry are not mentioned in the tender .
87
for participating in tender EMD is required which was earlier 1% now ,US $ 4 per
MT. accordingly the party is finalized by tender committee who qualifies all the
criteria and intimated. After getting the confirmation from the party contract is
sigend in which details about the quantity ,grade ,size and chemistry is mentioned
and after that rolling program is finalized in consultation with PPm dept. and
accordingly material is rolled . the buyer has to give L C (letter of credit) in the
prescribed format of VSP. This LC may be issued from any bank of buyer ‘s
choice which is called issuing bank but it should be advised from any Indian bank
which is known as LC advising bank. Then this LC comes to RINL which is send
is made .
Invoice
Packing list
Beneficiary certificate
Copy of fax.
They have adopted a customer policy and obtaining regular feedback from
Some set guidelines and norms are adopted for various customer related
acticities like issue of offer letter / delivery order, loading at stockyard and refunds
etc.
For getting customer feed back one customer feed back form is there which
customer can get from the concerned branch sales office,fill it and can send it here.
is Analzed and necessary actions are taken to improve the level of satisfaction.
89
They have also introduced system of E poll from customer which is under
implementation .
This section also looks for internal as well as external auditing, ISO
auditing ,&implementation and railway claims also taken care of by this section.
Marketing administration
the subsequent year is looking after by this section. All the lease accommodation
proposals from branches and purchase of office premises proposals for various
branches are being processed by this section .attendance records of head quarters
Stationery requirement of all the branches as well as head quarter are consolidated
90
Over due out standing related to credit sales for various branches are also
consolidated here and corresponding report is prepared .all the corrensondence i.e.
receiving and dispatching of couriers and posts are also done by this section.
this section.
91
92
THE MARKETING MIX
OF
VIZAG STEEL PLANT
93
Marketing mix of Vizag steel plant
The mix of controllable variables that the firm/library uses to reach desired
use/sales level in target market, including price, product, place and promotion-
Four P's
Product
Price
Place
promotion
4 P’s. For a library this would be embodied in price of user’s time to access
and promotion is publicity, The term "marketing mix" was coined in 1953 by Neil
prepares his own recipe as he goes along, sometimes adapts a recipe from
94
one else has tried.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four
Product mix:
“Product” refers to the goods and services you offer to your customers.
Apart from the physical product itself, there are elements associated with your
product that customers may be attracted to, such as the way it is packaged. Other
product attributes include quality, features, options, services, warranties, and brand
name. Thus, you might think of what you offer as a bundle of goods and services.
Your product’s appearance, function, and support make up what the customer is
actually buying. Successful managers pay close attention to the needs their product
bundles address for customers. Your product bundle should meet the needs of a
particular target market. For example, a luxury product should create just the right
image for “customers who have everything,” while many basic products must be
positioned for price conscious consumers. Other important aspects of product may
Your knowledge of your target market and your competitors will allow you to offer
a product that will If you are considering starting a new business or adding a new
product, then make sure the product bundle will fit your business’s strengths and
95
weaknesses, and that it will provide an acceptable risk/return tradeoff. For
instance, if your business is very good at timely response to customers, then timely
service should be an important part of your product bundle. Think long term about
your venture by planning for the ways you can deepen and broaden your product
bundle. For instance, you may be able to take advantage of opportunities to add
value through processing, packaging, and customer service. Other future growth
may allow you to offer your product to different customers. Start-up businesses are
most successful when they concentrate their efforts on one product or one market,
like a restaurant or a car service center does. Later growth may occur in the same
materials, production processes, and distribution methods are similar, which means
you do not have to acquire new suppliers, skills and equipment, and distribution
methods.
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Product Varity:
WIRE RODS
STRUCTURALS
PLAIN ROUNDS
RE –BARS Fe 500
SQUARES
BEAMS
FLATS
ANGLES
CHANNELS
BILLETS
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By products
Granulated slag
Lime fines
Ammonium sulphate
Phenol fractions
Toluene
Anthracene oil
98
RE BARS:
Special features:
Higher yield strength & ulitimate tensile strength couples with Higher percentage
Easy bend ability ,weld ability and excellent ductility ensure economy
Advantages
Resistance to ageing
5.5,6,6.5,7.5,8,9,10,11,12,12.7,13,14mm
ROUNDS
16,*16.5,*17.5,18,20,*20.64,22,25,28,32,33.5,34,36,38,40,42,45
46.5,48,50,53,56,60,63,35,71,75,77,80mm.
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REINFORCEMENT BARS
8,10,12mm
16,*18,20,*22,25,28,32,36mm
ANGLES
*50 × 50 × 5/6 mm
*60 × 60 × 5/6 mm
*65 × 65 × 6 mm
75 × 75 × 6/8 mm
90 × 90 × 6/8 mm
CHANNELS
MC *40 × 32 × 5.0mm
MC *75 × 40 × 4.8mm
MC 100 × 50 × 5.0mm
100
MC 125 × 65 × 5.3mm
MC 150 × 75 × 5.7mm
BEAMS
150 × 75 × 5.0mm
175 × 85 × 5.8mm
BLOOMS
BILLETS
101
GRADES
Quality
ROUNDS : Mild steel ,Low, medium carbon ,bright bat & forging
Quality
yield strengths.
WIRE RODS : Low carbon, Wire drawing, bright bar, Electrode Quality,
102
STRUCTURALS
Special features
Tension free rolling ensures closer tolerances and negative sectional weight.
Universal beam rolled in medium merchant & structural mill is the most
economical section which has got better sectional properties .has a simple
PRODUCT BRANDING
its products with a vies to creating an image for itself improvig realizations .the
Packaging
Packing material
Services
competitive success may lie in adding valued services and improving their quality.
The main service differentiators are Ordering ease , delivery, installation, customer
stockyard executive before 3 pm. If the materials are to be bent /cut the charges
thereon will be extra and required time should be given to enable the stockyard to
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Delivery will be made as far as possible as pe rthe quantity indicated, but if
there are any varition subject to maximum of 5 % the customer should accept the
same.
The customer shall be responsible for safe custody of the delivery order ,the
company shall not be responsible for any consequences arising out of the loss of
the delivery order by the customer and /or delivery against such delivery orders to
Complaints if any regarding quality may be lodged with the branch manager.
With in 15 days from the data of delivery of the materials. A specifie form for
filling cmpalints. Can be obtained from the branch office.VSP got a retail quality
related issues detail procedure is layout to deal with quality components received
from various customers in a time bound manner. All the quality components are to
Price
. “Price” refers to how much you charge for your product or service.
Determining your product’s price can be tricky and even frightening. Many small
business owners feel they must absolutely have the lowest price around. So they
pricing approach should reflect the appropriate positioning of your product in the
market and result in a price that covers your cost per item andincludes a profit
margin. The result should neither be greedy nor timid. The former will price you
out of the market; pricing too low will make it impossible to grow. As a manager,
you can follow a number of alternative pricing strategies. In the next column are
eight common pricing strategies. Some price decisions may involve complex
maintain your price relative to your competitors’ prices. In some cases, you
106
can directly observe your competitors’ prices and respond to any price
more difficult.
• Psychological: Based on a price that looks better, for example, $4.99 per
pound instead of $5.00 per pound. After you decide on your pricing strategy,
the amount of money you will actually receive may be complicated by other
pricing aspects that will decrease (or increase) the actual amount of money
you receive. You will also have to decide how to determine: • Payment
seasons that typically have low sales volumes to entice customers to buy
target markets.
geographic regions.
• Volume discounts and wholesale pricing: Price reductions given for large
purchases.
• Cash and early payment discounts: Policies to speed payment and thereby
provide liquidity.
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• Credit terms: Policies that allow customers to pay for products at a later
date.
The methods discussed here should be a base from which to construct your
price. options will vary depending on how choose to sell product. For instance, a
product is made but don’t sell it directly to the customer, then you will want to
know who sets the retail price and what margin they will require. Tracing the path
information. The research needed to understand the pricing along the distribution
Whatever price may be, ultimately it must cover costs, contribute to image
Price is the one “P” that generates revenue, while the other three “P’s” incur
PRICES
Prices of iron and steel materials are fixed by HQ pricing committee. VSP
collecting the information on regular basis market trends on regular basis and data
The price and extra if any ,ruling at the time of delivery will be charged in
the invoices . the finance executive /assistant ,while preparing the invoice will
1. Current stockyard prices ,as per stockyard pricelist circulated by the Head
quarters.
authority.
4. Octroi , entry tax and /or any other levy at appropriate rates. Central and
8. Siding charges.
Price revision
orders .if this is not possible , BM may advise stockyard to reduce the quantity to
be delivered , so that the value of the deliveries including taxes and levies are
within the advance collected .VSP following monthly based pricing system.
Payment period
Payment from the customers shall be received in advance ,by DD/ pay order
on any scheduled bank ,draw in favour of “RINL VSP Collection account” for the
Cheques will be accepted only from those parties to whom the cheque
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4. DD/cheque as stipulated in the offer letter.
5. The dealing assistant shall accept only DD /PO tendered by the customer to
shall be put up for signature of concerned executive of the branch ,after the
assistant shall prepare the money receipt for preparation of delivery order
Acceptance of cheque
order. How ever in the same case of specific parties, branch manager may with the
approval of the competent by cheque. The chequeshall be local .no out station
Extension of credit
leading to stock building up, genuine problems faced by valued customers who
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Credit is to be given only on approval by competernt authority. The period
limits should be strictly enforced. All such credits by the customer on facour of
VSP.
promotion
you let people know what you’ve got for sale. The purpose of promotion is to get
people to understand what your product is, what they can use it for, and why they
should want it. You want the customers who are looking for a product to know that
your product satisfies their needs. To be effective, your promotional efforts should
channel. Your target audience will be the people who use or influence the purchase
of your product. You should focus your market research efforts on identifying
these individuals. Your message must be consistent with your overall marketing
image, get your target audience’s attention, and elicit the response you desire,
select for your message will likely involve use of a few key marketing channels.
Promotion may involve advertising, public relations, personal selling, and sales
local customers about your business. Mid-to-late week is generally the best time to
Television:
Print:
Direct mail and printed materials, including newspapers, consumer and trade
magazines, flyers, and a logo, allow you to explain what, when, where, and why
people should buy from you. You can send letters, fact sheets, contests, coupons,
levels.
Electronic:
5 Purdue extension
114
Knowledge:
promotion of your products. Direct e-mail contact is possible if you have collected
Word of Mouth:
Generic:
commonly found for milk, beef, and pork. Public relations (PR) usually focuses on
community, and providing open house days. News stories, often initiated through
press releases, can be good sources of publicity. Personal selling focuses on the
115
While personal selling is an important tool, it is costly. So you should make efforts
to target personal selling carefully. Sales promotions are special offerings designed
contests, incentives, loyalty programs, prizes, and rebates. Other programs might
shows. Your target audience may be more receptive to one method than another.
shows, setting up displays at public events, and networking socially at civic and
business organizations.
appointed the DLD’s (district level dealers ) development of VSP products in rural
areas also. DLD’s appointed throughout country under various branches. It is a part
The boarding also contains details of the products being used in construction
field, as part of promoting VSP products in hording painting are made and possible
this place they are mention contract number and address of the senior branch
116
manager, RINL promoting activities taken wild place in city’s also they are
product. Unlike advertising and personal selling, it does not include specific sales
manager. The targets may be customers, stock holders , the Government agencies
Direct marketing
direct marketing system where as builders and constructers they are directly
Place( distribution)
“Place” refers to the distribution channels used to get your product to your
customers. What your product is will greatly influence how you distribute it. If, for
example, you own a small retail store or offer a service to your local community,
then you are at the end of the distribution chain, and so you will be supplying
117
directly to the customer. Businesses that create or assemble a product will have
Direct Sales
product, whether it be sales through retail, door to- door, mail order, e-commerce,
on-site, or some other method. An advantage of direct sales would be the contact
you gain by meeting customers face to face. With this contact you can easily detect
market changes that occur and adapt to them. You also have complete control over
your product range, how it is sold, and at what price. Direct sales may be a good
place to start when the supply of your product is limited or seasonal. For example,
direct sales for many home-produced products can occur through home based
sales, markets, and stands. However, direct sales require that you have an effective
developing and maintaining this retail interface is not of interest to you or you are
Instead of selling directly to the consumer, you may decide to sell through
Doing this may provide you with a wider distribution than selling direct while
118
decreasing the pressure of managing your own distribution system. Additionally,
you may also reduce the storage space necessary for inventory. One of the most
many situations, wholesalers and retailers have customer connections that would
Market Coverage
No matter whether you sell your product direct or through a reseller, you
must decide what your coverage will be in distributing your product. Will you
Intensive distribution
Convenience products—ones that consumers buy regularly and spend little time
distribution.
Selective distribution
through retailers that only sell high-quality products. With this option, it may be
119
easier to establish relationships with customers. Products that people shop around
Exclusive distribution
It restricts distribution to a single reseller. You may become the sole supplier
to a reseller who, in turn, might sell only your product. You may be able to
promote your product as prestigious with this method, though you might sacrifice
sales volume. Specialty products tend to perform better with exclusive distribution.
Other Place Decisions Product characteristics and sales volumes will dictate
what inventories to maintain and how best to transport products. Additionally, the
logistics associated with acquiring raw materials and ensuring that final product is
in the right place at the right time for the right customers can comprise a large
percentage of total costs and needs careful monitoring. You may decide to have a
combination of all the distribution methods. Whatever you decide, choose the
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selling to the wholesalers:
There may be four or five sport articles wholesalers in Arizona. you sell
your fun boards to these big men. On turn the wholesalers se the fun boards to the
Distributing channel:
VSP appointed the DLDs (district level dealers ) in every district. They are
distributing the VSP products in rural areas. Every district DLDs doing their
121
VSP channels and distribution
Seller seller
↓ ↓
Trader
user
↓
User
Inventory managements
The aim would be to work towards just in time inventory for spares and
consumable. Tor high value and regular consumption items will be increased for
Transport
products.
122
Rail :
Barring a few minor raw materials, the bulk of the inward raw materials is
received by rail, at present the imported raw materials, received at the VPT, are
also moved to the plant by rail. Since railways had already acquired land to cater
the enhanced plant requirements , however, for movement of iron ore from
Port
Presently, the imported raw materials are received through VPT. As per the
.this enable VSP to shift its imports and exports from VPT to gangavaram port and
into the plant through a conveyor system. The port at gangavaram help in avoiding
the rail transportation cost from VPT to VSP and also avoid cost og tipping of
123
SUMMARY
&
FINDINGS
124
FINDINGS
The following are the findings from the project done in Vizag steel plant .
125
SUGGESTIONS:
VSP introducing the new products and they want to produce different sizes
of products.
They producing Angles and they want to increase more sizes to increase
The market pricing feedback more reach basis users and middlemen’s in a
competitive price.
More distribution centers like DLDs for various branches include TMT bars
126
BIBLIOGRAPHY
127
BIBLIOGRAPHY
2.www.vizagsteel.com
4.www.google.com
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