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À Tabassum N. 34
À Nikhil Pokle 36
À Talhah Patel 40
À Abdul K. Shaikh 46
Introduction to TATA STEEL
@Tata Steel was established in 1907 by J N Tata at Jamshedpur in Bihar, India.
mild steel.
@By 1958, its capacity had increased to 2 mn tonnes. Over the years, Tata Steel
@In 1973, it acquired some flux mines and collieries near Jharia, West Bokaro.
@In 1983, it acquired the Indian Tube Co. Ltd., a manufacturer of seamless and
welded tubes.
@In 1991, it acquired the ferro-chrome unit of OMC Alloys Ltd near Bamnipal in
Orissa.
@ By April 2001, Tata Steel was the world's lowest-cost producer of steel.
@Today, Tata Steel produces a wide range of products including hot rolled/cold rolled
(HR/CR) coils and sheets, tubes, construction bars, forging quality steel, rods,
ferro alloys and other minerals, software for process controls, and provides cargo-
handling services.
Branding Steel
@For initiating the branding strategies, R.Gopalakrishnan, executive director, TATA
@To get the branding exercise right, it is essential to acquire strong customer focus.
For the same they initiated internal campaigns emphasizing customer focus and
service.
@The company segregated the µmarket development¶, µorder generation¶ and µorder
fulfillment¶ functions.
@ Also improved customer interaction in order to learn what customers wanted and
@ In April 2000, the company¶s CRM plant was commissioned and coinciding
@ Later other brands like TATA TISCON REBARS (Dec 2000), TATA STEELIUM
(Feb 2003)
Tata 6teel Brands
m m
%
FY 01 5 11 7
FY 02 6 15 9
FY 03 8 19 12
Source : MD¶s Presentation to Press, April 2003, TATA Steel
Future Prospects
@Tata Steel has announced that the company would be focusing on co-branding
@Interested in branding all its Flat Products and selling them through retail
distributors
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Case Study Q & A
Q 1. Discuss the reasons for TATA Steel¶s decision to embark on aggressively
marketing and branding of their products ?
@ It would help stabilize the flow of revenues even during business downturns.
e.g. In late 1990¶s the Indian Steel Industry was experiencing a glut, and this
@ Using the generic name of µTata¶, the association the customers would confuse
but in B2C branding would pave a way for easy customer acquisition.
Steel said ³We are getting Rs 1000 to Rs 2500 premium per tonne´
@In 2003, TATA Steel declared a turn over of Rs 98.44 bn with profit after tax of
@The company¶s success was attributed to its focus on operational excellence and
@Though the steel industries in India was experiencing slow growth, TATA Steel
was able to post high profits because of its strong B2B and B2C sales.
! !
&!' !$ !
%
FY 01 5 11 7
FY 02 6 15 9
FY 03 8 19 12