Case Study Of Tata Steel

1. Ferro alloys products: leading manufacturer of ferro chrome in INDIA.

2. Finished and semi-finished steel product

3. Other products and services including refractory products, tube products, municipal services and investment activities. PRICE

Behind a successful product, pricing is one of the most crucial elements. Pricing is more fact oriented in industrial marketing then that in consumer product. Pricing is closely related to firm’s distribution and communication strategies.

FACTORS INFLUENCING PRICING STRATEGY IN STEEL INDUSTRY

1 PRODCUTION COST

Tata Steel is the lowest cost manufacturer of steel [12]. The low cost of production is the main reason behind it. Acquiring sources of raw materials in India and globally helped Tata

In 2010 world steel consumption was expected to be 1.23 billion tonnes [12]. The increasing growth in the automobile market seems in favour of the steel industry.

3 PRICING STRATEGY

Success of any product will depend upon the blend of growth, survival objective and the long run profit. A firm’s survival is dependent on the profitability of the product. Tata Steel adopted Market penetration strategy. The strategy assumed that the steel production will be highly elastic. Large market share was gained by setting low prices.

PLACE

Tata Steel delivers steel products to its Indian customers through direct supply channels, stockyards, consignment agents and also through external processing agents. Tata steel was the first company to initiate online e-sale through Mjunction. It is now the world’s largest e-marketplace for steel.

Different types of consumer and industrial products are understood. Consumer product firms should be well aware of consumer behaviour and consumer requirements. The marketing strategy used by different companies should be understood and adapted by other competitors to do well in the market and to be the market leader. I would like to give my suggestions regarding the same. ITC’s strategy of researching about the demand in the market before launching the Sunfeast biscuits should be adapted by other companies as well. A product will work well if there is demand in the market. So for the success of the product demands and the needs of the consumers should be kept in mind. It is surprising how the push strategy used by ITC for its cigarettes worked out in favour for it. As it is known that cigarettes are bought only by people who have smoking habits, now those people would remain brand loyal and not prefer the new brand. Even then ITC’s cigarettes gained reorganization. Taking in to consideration the case of HUL’s marketing and sales strategy, endorsing with big celebs always works in favour of the product. Companies should focus on innovating in projects like SHAKTI so as it reach out to the rural market. Moving on to industrial products it is very important to market them wisely. Industrial products need to be marketed in a bit different way than consumer