Branding a Commodity - Tata Steel

About Tata sword Tata Steel was established in 1907 by JN Tata at Jamshedpur in Bihar, India. The company commenced production in 1911. In the primordial 1980s, the company initiated a modernization program for its steel plants. By the mid 1990s, Tata Steel was Asias counterbalance and Indias largest coordinated steel producer in private sector. In two hundred3, Tata Steel declared a turnover of Rs 98.44 billion with a arrive at after tax of Rs 10.12 billion. Q1. Discuss the reasons for aggressive mark and merchandise by Tata Steel of its products in early 2000s? 1. The first reason was to reduce the dependency of Tata Steel on the outdoor(a) environment. The profitability of steel manufacturing in India is strongly joined to variations in business cycle. Steel companies register heavy profits when there was boom in the economy and profits come down when there is depression. In the late 1990s, the Indian steel industry was experiencing a glut and this affected the profit margins of players. To reduce its dependence on external environment, Tata Steel adopted a two-prolonged scheme in this period. The strategy involved: ? Branding its products ? Moving to graduate(prenominal) value products To get its branding exercise right, Tata steel concentrate on strong node focus.

It initiated internal campaigns emphasizing customer focus and service. Tata Steel set up a branding task force to explore the possibilities of branding its steel products. It creature the help of R. Gopalakrishnan who had experience in branding in HLL. It withal took help of FMCG companies to train its marketing personnel in branding. 2. The s reason was low revenues approach path from B2C segment. 80% of its revenues were coming from B2B customers (about 200 large business customers), while only 20% revenues were coming from B2C segment (bout 5000-6000 customers). Customers in this segment were not very pertain about the quality of steel or brand name. They were touch with only product availability and prices.... If you want to get a full essay, order it on our website: Orderessay

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