usha martin marketing project...
PROJECT TITLE (Understanding The Marketing Mix Strategic of Usha Martin Ltd.)
A Project Report Submitted in partial fulfillment of the requirement for the award of the degree of
Master’s in Business Administration
By NAME OF THE STUDENT
UNIVERSITY ROLL NO
Under the guidance of Shilpi Abha Khalko
INSTITUTE OF MANAGEMENT STUDIES RANCHI UNIVERSITY RANCHI-834001
CERTIFICATE OF APPROVAL
This is to certify that the dissertation entitled Understanding The Marketing Mix Strategic of Usha Martin Ltd. is hereby approved as a creditable study of research topic and has been presented in a satisfactory manner to warrant its acceptance as prerequisite for the award of MBA degree from IMS Ranchi University.
It is understood that by this approval, the undersigned do not necessarily endorse any conclusion drawn or opinion expressed therein but approve the project for the purpose for which it is submitted.
CERTIFICATE OF GUIDES
This is to certify that the project work entitled.
“Understanding The Marketing Mix Strategic of Usha Martin Ltd” Has been submitted in the partial fulfillment of the requirement for the award of the degree of
MASTER’S IN BUSINESS ADMINISTRATION It is a bonafide project work carried out under the guidance and supervision of
(Shilpi Abha Khalko) Institute of Management Studies Ranchi University Ranchi
ACKNOWLEDGEMENT I, Amit Kumar Roll no.- 12MBA01050 Student of MBA 3rd Semester Institute of Management Studies, Ranchi University, Ranchi hereby declare that the project work on the topic of “Understanding The Marketing Mix Strategic of Usha Martin Ltd. is completely my work and based on the data collected from different sources and sites and reference books.
We are very much thankful to Mr. Arun Kumar Dey (Dy. Manager Sales Co-ordination) and also thankful to Shilpi Abha Khalko (Faculty of IMS) for his valuable and priceless suggestion as per our need.
Without their help I was not able to complete this project.
So, I am thankful to him for their valuable time.
CONTENTS SL. NO.
CERTIFICATE OF COMPLITION
CERTIFICATE OF APPROVAL
CERTIFICATE OF GUIDE
REVIEW OF LIRETURE
OBJECTIVE OF THE STUDY
Research Plan Study based upon Data Collection Data Analysis Area to be considered Suggestions Limitation Suggestion Bibliography
Introduction Started in 1961 in Ranchi, Jharkhand as a wire rope manufacturing company, today the Usha Martin Group is a USD 1 billion conglomerate with a global presence. The group has set new standards in the manufacture of wire rods, bright bars, steel wires, specialty wires, wire ropes, strand, conveyor cord, wire drawing and cable machinery. With continuous growth in both the domestic and international markets, Usha Martin, the Group‟s flagship company has emerged as India‟s largest and the world‟s second largest steel wire rope manufacturer. For Usha Martin, the path to sustainable growth was long; the management constantly tried out innovative business practices. With initiative to diversify the customer base by venturing into the international markets, moving up the value chain and fully integrating its business process to maximize stakeholder value. In 1979, the company set up a steel plant with wire rod rolling mill at Jamshedpur, to benefit from business integration. This ensured a steady supply of steel for the manufacture of value added products. Today, the Jamshedpur unit has a truly integrated specialty steel manufacturing facility of 700,000 MT per annum. Out of which, about 35% is consumed internally by its plant in Ranchi, Hoshiarpur & Bangkok, producing steel wire, steel strand, steel cords, bright bar and steel wire ropes. All its manufacturing facilities are ISO 9000 certified and the steel plant was India‟s first to receive the TPM Excellence Award from JIPM, In 21st century marketing becomes one of the vital functions of any company. Financial success of any company often depends on the marketing ability. Finance, Operation, Accounting and other business functions will not matter if sufficient demand for products or expected sale of the products is not taking place. So company can‟t earn its expected profit. To avoid this type of situations and improve their marketing base companies have now created a Chief Marketing Officer (CMO), Chief Executive Officer (CEO) and Chief Financial Officer (CFO).
In every industries FMCG to Health care insurer, nonprofit
organization to industrial product manufacturer they are playing a vital part. They are implementing a number of marketing strategies and tactics in different situations to improve the performance of the company. In this study we are discussing about some important marketing strategies which Usha Martin Ltd has taken. In our course we have learnt some important strategies and tactics of marketing, here we can observe the practical application of those strategies. As an example we can take marketing mix 7ps which we have learnt here we see the applications of 7ps. Besides that we can relate some important factors like SWOT analysis, PEST analysis, STP, CSR, TPM with practical life. Logistic system one of the important of any company which
we include in the study and briefly explain the Supply chain management system of the company. To know a company properly first we should understand their manufacturing process selling process and logistics system. We should have sound knowledge on their Suppliers, Competitors and most important major customers. To prepare to be a marketer we need to understand what marketing is how it works, what is marketed and who does the marketing. In this project we tried to highlight those factors.
INTRODUCTION OF USHA MARTIN LIMITED Usha Martin limited is an undisputed market leader in the wire & wire ropes and speciality product. It manufactures wire & wire rope of national and international specifications and standard. UML produce different wire & wire rope products, which are used in different industries for different purpose. Some of its areas of application are mining general engineering, fishing, shipping construction of aerial ropeways etc. The wire and wire rope of the UML are of superior quality and are extremely durables.
Looking Back - A Brief History: 1960 - The Company was incorporated as Usha Martin Black (Wire Ropes) limited having its wire rope plant at Ranchi. The name was changed to Usha Martin Black Ltd. in 1979 and further changed to Usha Martin Industries Ltd.(UMIL) in 1983.
1965 - UMIL promoted Usha Ismal Ltd. (UIL) in collaboration with CCL Systems Ltd of UK for the manufacture of fittings and accessories, equipment for pre-stressed concrete system, wire ropes and wire ropes splicing equipment at Ranchi. UIL merged with UMIL in 1990 and became a division of the company
1971 - UMIL promoted Usha Alloy Steels Limited (UASL) for the manufacture of billets at Jamshedpur. UASL merged with UMIL in 1988. 1975 - UASL acquired an ongoing rolling mill at Agra.
1975 - UMIL set up its Machinery Division at Bangalore for the manufacture of Wire Drawing and allied machines in technical collaboration with Marshall Richards Barcro Limited (MRB) of UK. 1979 - In order to obtain steady supply of wire rods for its wire rope plant, UASL set up a Wire Rod Rolling Mill at Jamshedpur. 1987 - UMIL, alongwith Bihar State Electronics Development Corporation, promoted Usha Beltron Ltd. (UBL) in collaboration with AEG KABEL of Germany for the manufacture of Jelly Filled Telephone Cables. 1997 - UMIL merged with UBL w.e.f 1st October 1997. 2000 - Acquisition of specialty wire rope manufacturing plant in UK “BruntonShaw”. 2000 -Commissioning of 25 MW thermal power plants for captive consumption. 2001 - Commissioning of 2nd SMS to enhance capacity and produce quality specialty steel. 2003 - Usha Beltron Ltd Changed its name to “Usha Martin Limited (UML). UML created Fine Cord Plasticated coated Fine wires, household wire, Polymer coated wire, Fine Ropes & Bright Bars manufacturing facilities in Tatisilwai- Ranchi 2007- Peng Usha Martin collaborates with Jo-Peng, Austria in 2007 for Special Wire.
MISSION AND VISION OF THE COMPANY MISSION ENRICHING LIVES We will do our best to provide quality product and services, which will improve the life style of our users. QUALITY IS OUR FIRST PRIORITY We aim to achieve customer satisfaction by producing quality products. No sale is a good sale unless it fulfills our customer‟s expectations
OUR WORD IS OUR BOND
Our dealers are our partners. We endeavor to practice this golden rule in all our relations with others. INTIGRITY IS OUR COMMITMENT The conduct of our company‟s affairs must be pursued in a manner that command respect for honesty and integrity.
VISION: In our chosen business, we shall retain market leadership in India and shall be globally competitive through customer orientation and excellence in quality, innovation and technology.
UML is the 2nd largest wire and rope manufacturer in the world and has the largest variety in South East Asia.
It is multi product, diversified engineering conglomerate with 10 production units in India,1 in Thailand,1 in UK and 1 in Dubai.
It is saving valuable foreign exchange by exporting by exporting its products to 42 countries like USA, Africa and Middle East, conforming to the strictest product quality standards.
It got the ISO 9001 Certification by BVQI in 1994.
ICICI (BCB) did the business process re-engineering in 1996 and line system was set up to enhance performance.
With the modern concepts like TPM, value engineering, QC, suggestions scheme, customer satisfaction and human resource development, UML is trying to reach unparalleled heights.
UML is serving through a leading daily “Prabhat Khabar”, Krishi Gram Vikas Kendra, Usha Martin Technical Institute.
Evolution of The Company
Mr. B.K. Jhawar, the Chairman, established Usha Martin Limited in 1960 with the Wire Ropes Plant, Ranchi.
The firm was initially called Usha Martin Black as it started with collaboration between M/S Martin Black, Scotland and Usha Automobile & Engineering Pvt. Ltd., Calcutta in 1960.
In 1965, it backed Usha Ismal Ltd to manufacture rope accessories & splicing equipments and merged with it in 1990.
In 1969, it backed Usha Breco Ltd. To design, construct and erect Aerial Ropeways.
In 1971, it backed Usha Alloys & Steel Ltd. To produce steel billets as backward integration and merged with it in 1988.
The collaboration with Martin Black broke up in 1975 and the company was hence called Usha Martin Industries.
The company set up an electrical furnace steel plant at Jamshedpur in 1973, followed by a rod mill in 1976.
In 1980, it promoted Usha Siam Steel Industries Ltd, Thailand to produce wire, wire ropes & auto control cables. It set special products division to produce Hi-Tech Wire Cables.
In 1986, UML promoted Usha Beltron Ltd. Ranchi in alliance with AEG Cable of Germany and Bihar State Electronics Corporation to produce jelly filled telecommunication cables.
In 1994, it set up Software Division to provide IT Solution for communication application and Usha Martin Ltd, a distribution center at Glasgow, UK.
Usha Martin Ltd. Merged with Usha Beltron Group in 1999 and was renamed as Wire and Wire Rope Division within which following six companies are included: JFTC-Ranchi, Wire And Wire Rope Division Ranchi, Usha Ismal Division – Ranchi, Usha Alloys & Steel – Jamshedpur, Usha Machinery Division – Bangalore and Rod-Mill Division – Agra
A backward integration initiative, the Usha Alloys & Steels Division (UASD) at Jamshedpur is one of the largest amongst secondary steel manufacturers of specialty steel long products in
India. With ISO 9002 certified facilities, UASD has pioneered the unique process of steel making through mini blast furnace-arc furnace route, which ensures superior quality of steel at a lower cost. UASD serves a range of industries like automobile, general engineering, fasteners, railways, defense and power. Machinery Division This ISO 9001 unit was set up in 1974 at Bangalore to manufacture Wire Drawing and allied machines. Over the years, the division has added a wide range of Wire, Wire Rope and Cable machinery to its product range and is now the leader in this field in India. The division started with technical collaboration with M/s Marshall Richards Barcro of UK and subsequently has collaborated with internationally reputed firms like De-Angeli Industries SPA, Italy, Stolberger Maschinenfabrik, Germany, Hi-Draw Machinery Ltd, UK and Redaelli Techna Meccanica, Italy. A facility in Ranchi has also been created for manufacturing machines required for Wire Drawing and Stranding Applications.
Special Product Division (Formerly Usha Ismal Division)
This unit, having manufacturing unit in Ranchi (Eastern India), is the leader in the field of pre-stressing equipment & accessories and also executes pre-stressing job on turnkey basis. Besides, it provides services for jointing of reinforcement bars by mechanical splicing. All major civil contractors of National Highway Authority of India, Indian Railways, PWD are regular users of these products and services. It also offers hydraulic presses & accessories for manufacturing mechanically spliced wire rope slings, machines for proof load testing of wire rope slings, and die-less hand operated hydraulic crimping tools. These products find wide application with Steel Plants, Port Trusts, Oil Sector, Heavy Engineering Industry, Electricity Boards, Electrical Contractors, and Factories.
Wire And Wire Ropes Division:
Introduction: The ISO 9001-certified 100,000 MT / annum-manufacturing facilities at Ranchi (Eastern India) is 2nd largest producer of ropes in the world. Since its inception, the division has continuously developed and expanded its range of product offerings and is considered a pioneer in certain classes of products in India. Steel wire ropes manufactured by the division find wide applications in oil exploration, mining, elevators, Crane, fishing, construction, load transportation and general engineering sectors. It find varied use in different parts of the world known for their excellent quality, long life and low maintenance, and are the preferred choice of customers across nations. Ropes, ranging from 2 mm to 116 mm diameter find varied applications. The wide ranges of products are used in underground mining, surface mining, mooring, onshore and offshore drilling, fishing, elevators, cranes, aerial haulage and track installations besides various general engineering applications. Prestretched ropes, locked coil wire ropes and spiral strands made in Usha Martin are used in suspension bridges, antenna masts etc. Backed by a strong international distribution network our ropes have found a place in different corners of the world.
Ranchi (13 Km)
Nearest Railway Station
Tatisilwai (1 Km)
Ranchi (17 Km)
N H-33 (8 Km)
Kolkata (412 km)
Contracted demand 8000 KVA Source-JSEB
Quality & Testing Wires and Strands hold a premier position in the domestic market and are also exported to different part of the world. Used for different purposes across a gamut of industries, our wires and strands are continuously put through rigorous and demanding conditions. To ensure that our offerings match the international standards, we have set high internal quality standards. Plant located at Ranchi has been awarded ISO 9001 due to our emphasis on maintaining global quality standards. Wires confirm to various specifications such as
Tested using the best modern facilities our wires are produced to ensure that they match the quality for which we are renowned.
DOMESTIC & INTERNATIONAL CUSTOMERS OF USHA MARTIN Ltd. WESTERN REGION
Gnomon India Ltd, Mumbai.
Parekh and Sons , Bhavnagar
Fortuna Engg.indusries, Mumbai
Premier mills and stores, Ahmedabad
Oil and natural Commission, Ankleswer
Mazgoan Dock, Mumbai
Essar steels, Surat
Great Eastern Shipping company, Mumbai
Mukund Ltd., Kalwa
Reliance industries infrastructure, Jamnanagar
Nuclear Power Cooperation of India
Hindustan Electro Graphite Ltd,Mandideep Akasdeep rajasamand,Rajasthan BHEL,panipath Vee Vee sales corp.,Kathgodam Roshan Jain and Co.Ltd.,Udaipur HCL Maruti Udyog Ltd. NCL Balbir Singh &sons, Delhi Eidarson Industries Relief Marine Supports Pvt. Ltd EASTERN REGION:
•Indian Ropeway and company Ltd., Kolkata •Ferro Scrap Nigam Ltd.,Dhanbad •TIL,Kolkota •Key Pu Enterprices
•Eastern coalfield •MCL, Talcher •Unimetch lifting equipment, Howrah •Otis India Ltd •Philips India Ltd. •Steel India Ltd •Indian Iron and steel Co. Ltd, Burnpur •HEC, RANCHI •Tata Iron and Steel Ltd. Jamshedpur •Oil India Ltd., Dulijan SOUTHERN REGION:
United Martine Madres, Kollam
Kec international Ltd. Atamakur
Larsen & Turbo Ltd
Johnson lifts pvt. Ltd
Marine Trade Link ,Kottayam
Super Marine, (Kollam)
Madras Hard pools Ltd.
Mohosin Brothers (Visak)
ISS Hardware Trading.
Africa – Allexandria
Europe – Aerbiljan
Middle east – Doha
Sources of raw materials
Steel wire rod (90 to 96%)
Steel wire rod (4 to 10%)
Imported from Germany, Japan etc
M/S Chhotanagpur wire rope, Ranchi
Other raw materials (zinc)
M/S Hindustan Zinc and Other suppliers & rest is imported
Branches of Usha Martin JFTC –:
Wire ropes and specialty product Division –:
Usha Ismal Division –:
Usha Alloys and steel -:
Usha Machinery –:
Rod Mill Division –:
Group of Companies
Manufacturing companies :-
Usha Siam Steel Industries public Company Limited, Thailand (USSIL) A subsidiary of the group, it manufactures wire and wire ropes and has an annual capacity of 30,000 MT. European Management & Marine Corporation Limited (EMM) Located at Aberdeen, UK, it specializes in providing services in connection with oil drilling and exploration activities. Manufactures and sells wire ropes and related services like chains, anchors and end terminations. EMM (UK) has two
subsidiaries namely EMM
CASPIAN LIMITED & EMM KAZAKESTAN
LIMITED. Brunton Shaw UK Limited (BSRK) Acquired by the group in 2001, this subsidiary of the group has a state of the art manufacturing facility at Nottinghamshire, UK for producing 12,000 MT per year of high end steel wire rope. Brunton Wolf Wire Rope FZE Co. Brunton Wolf Wire Rope FZE Co. established in 25th September 2003. It is the first wire rope factory in middle east, situated in Jabel Ali Free Zone Enterprise (FZE). The main objective of the concern is to satisfy the huge requirement of steel wire ropes specially for Oil and Construction sector. The plant has the manufacturing capabilities of steel wire ropes, Non rotating 35x7 Crane Rope, wire rope slings for oil rigging. It has already started regular business in various middle east countries as well as export to Singapore, U.K. & Europe. In near future plant will be making elevator, fine cord in association with Gustav wolf – Germany.
UM Cables Limited (UCL) A wholly owned subsidiary of Usha Martin Group, located at Silvassa, Western India, Manufactures PIJF Copper Telecom cables and Optical Fibre Cables and has an annual capacity of 2.9 MCKM and 35,000 RKM respectively.
Information Technology :-
Usha Communications Technology Usha Communications Technology is a high and telecom software products company
and offers range of solutions that cover
the needs of the next generation communication providers, both emerging and established.
NAME OF INDUSTRIES
1. Usha Martin Industries
Wire & Wire rope
2. Usha Braco Ltd.
Rope way Project
3. Usha Alloy and Steel Div.(JSR)
5. Prabhat Khabar
6. Usha Martin Telecom Ltd.
Cellular & Paging Services
7. Usha Martin Europe Ltd.
Wire & Wire Ropes
8. Usha Martin America Ltd.
9. Usha Martin South Africa Ltd.
10. Usha Martin Scandinavia Ltd.
12. Usha Ismal Ltd.
Mechanical Splicing Equipments
Steel Wire Ropes & Strands
14. Usha Siam & Steel Ltd.,Thailand
Wire & Wire Ropes
Competitors for Usha Martin Ltd.
South India wire
Bombay Wire Ropes
Bharat Wires Ropes
Indore Wire Ropes
Asian Wires Ropes
Mickey Wire Ropes
MANAGEMENT PROFILE OF UML:
Sr. VP - Commercial & Shared Services
A K Basu
A K Dutta
Sr. VP [Engineering & Projects]
A K Gawri
Sr. Vice President (TMT Business)
A K Somani
CFO & Company Secretary
A K Somani
Aje Kumar Chaudhari
Anjan Kumar Dey
Sr. Vice President [Iron Making]
Basant Kumar Jhawar
Non Executive Director
Brij K Jhawar
Brij Kishore Kumar
D J Basu
Sr. Vice President [HR]
Ghyanendra Nath Bajpai
Joint Managing Director
Chairman / Chair Person
Pravin Kumar Jain
Pravin Kumar Jain
Executive Director & CEO
Sr. VP [Wire & Wire Rope Division]
S K Jala
Sr. Vice President [IT]
S N Guha
Chief Operating Officer [Steel Business]
Sr. Vice President [Commercial]
Executive Director & CEO
MANAGEMENT HIERARCHY OF UML Chairman Mr. Prashant Jhawar
Managing Director Mr. Rajiv Jhawar
Joint Managing Director Mr. P. Bhattacharya
Executive Director & CEO Mr. Pravin Kumar Jain
UML Bright Bar
Mr. A. Sengupta
FINANCE Mr. M.L. Rathi
Mr. Bidyut Sengupta
UML Wire & Wire ropes
Senior V. President Mr. Rajesh Sharma
Mr. Manish Sharma
PERSONNEL Mr. Amit R Sinha
MANUFACTURING Mr. Sanjiv Rai & Mr Anil Pandey
PROJECT DESIGN Mr. A.K. Ghosh
Mr. Omkar Burman
QUALITY ASSURANCE Mr. Subrata Dutta
SALES COORDINATION Mr. U.P. Sinha
Mr. Sanjay Srivastav
Mr. Sandip Roy
UML M/c Division
PRODUCT PLANNING Mr. Subir Ghosh
Mr. S.K. Pandey
Mr. Anup Agarwal
Mr. Arun Binod
Mr. A. Sengupta
KAIGEN CELL Mr. R.K. Jaiswal
PRODUCT DEVELOPMENT CELL Mr. SBN Sharma
REVIEW OF LITERATURE In this part of the report we are going to explain some basic terminology and tools of marketing which will be used during our project.
Definition of Marketing: Marketing is all about identifying and meeting human, social or industrial needs. Marketing is an organizational function and a set of processes which create awareness of their product to their customers, communicating and delivering their product, services, ideas to the customers in the way that create a benefit to the organization and the stake holders. So marketing is set of process which creates awareness and delivering the product, services or ideas to the customer at right place in right time at right price in order to make organizational profit.
Entities to be marketed: Marketing people market 10 types of entities, they are goods, services, events, experiences, persons, places, properties, organizations, information and ideas.
Segmentation, Target market, Positioning (STP): It is difficult to any individual company to fulfill the demand or satisfy everyone in a market. Therefore marketers divide the total market into small segments. This can be done on the basis of Geography, Psychographic, Economic environment, Demographic, Behavioral Characteristics of market or individual. After segmenting the market into small parts marketers identify which part of the market has great opportunities which are its target market. This can be done on the basis of opportunities, less competition, demand of the product etc. After targeting a particular market company positions its product into customers mind. There are many tools to position their product into customer‟s mind such as, advertising, direct marketing, offers, personal selling etc.
Marketing Mix: Marketing mix is the blending of certain strategic elements to fit the need of preferences of a specific target market .The combination of such elements or variable determined the degree of marketing success. The marketing mix consists of everything the firm can do to influence the demand for its product. Marketing mix is a set of marketing tools by which marketer can set the demand of their product or services in the target market. But the elements marketing mix should be in optimum combination. The elements of marketing mix are known as 7ps of marketing. They are 1. Product
2. 3. 4. 5. 6. 7.
Price Place Promotion People Physical evidence process
SWOT Analysis: SWOT stands for Strength, Weakness, Opportunities and Threat of a particular company. It is a very important tool for a marketer to select a market, to identifying current position of the company. By this analysis management can take necessary steps to improve the performance level of the business.
PEST Analysis: Days are changing, times are changing along with them economy, technology, society they are also changing. PEST stands for Political, Economical, Social, Technological environment of any company. Marketer should change their business strategy with time and trends. Otherwise business cannot survive. Besides that the impact of environment on the business is matters a lot and marketer should be well aware of that in every moment.
Corporate Social Responsibility (CSR): Besides earning profits, implementing new business strategies and growing business, company should have some responsibilities on the society. Company should obey the rules and regulation implemented by the government. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Some companies are doing some social work for the people to improve their standard of living. So company should have to care the people, those works should be prohibited which can harm the society.
Total productive maintenance (TPM): TPM is a maintenance process developed for improving productivity by making processes more reliable and less wasteful. TPM has basically 3 goals - Zero Product Defects, Zero Equipment unplanned failures and Zero Accidents. It sets out to achieve these goals by Gap Analysis of previous historical records of Product Defects, Equipment Failures and Accidents. In TPM, the machine operator is thoroughly trained to perform much of the simple maintenance and fault-finding. Eventually, by working in "Zero Defects" teams that include a technical expert as well as operators, they can learn many more tasks - sometimes all those within the scope of an
operator. Tradesmen are also trained at doing the more skilled tasks to help ensure process reliability.
ISO Certification: A family of standards and guidelines for quality in the manufacturing and service industries is certified by the International Organization for Standardization (ISO). ISO 9000 defines the criteria for what should be measured. ISO 9001 covers design and development. ISO 9002 covers production, installation and service, and ISO 9003 covers final testing and inspection. ISO 9000 certification does not guarantee product quality. It ensures that the processes that develop the product are documented and performed in a quality manner.
Logistics system: Logistics is the time related positioning of resource or the strategic management of the total supply chain, the supply is a sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution, and waste disposal together with the associated transport, storage and information technology. Logistics relates to goods, people, manufacturing capacity information being in the RIGHT place, at the RIGHT time, in the RIGHT quantity, at the RIGHT quality, at the RIGHT price.
Supply Chain Management (SCM): In every organization, materials flow through continuous chain, beginning from raw material suppliers, through intermediate manufacturer, to the final assembler and to the distributor and retailers before it reaches to the end customers. So a supply chain includes the chain of entities involved in the planning, procurement, production and distribution of products and services. There are three different components of supply chain management: i. ii. iii.
In-bound Supply chain In-house Supply Chain Out-bound Supply Chain.
Industry Profile: Modern wire rope was invented by the German mining engineer Wilhelm Albert in the years between 1831 and 1834 for use in mining in the Harz Mountains in Clausthal, Lower Saxony, Germany. It was quickly accepted because it proved superior to ropes made of hemp or to metal chains, such as had been used before.
Wilhelm Albert's first ropes consisted of wires twisted about a hemp rope core, six such strands then being twisted around another hemp rope core in alternating directions for extra stability. Earlier forms of wire rope had been made by covering a bundle of wires with hemp. In America wire rope was later manufactured by John A. Roebling, forming the basis for his success in suspension bridge building. Roebling introduced a number of innovations in the design, materials and manufacture of wire rope. Manufacturing a wire rope is similar to making one from natural fibers. The individual wires are first twisted into a strand, then six or so such strands again twisted around a core. This core may consist of steel, but also of natural fibers such as sisal, manila, henequen, jute, or hemp. This is used to cushion off stress forces when bending the rope. This flexibility is particularly vital in ropes used in machinery such as cranes or elevators as well as ropes used in transportation modes such as cable cars, cable railways, funiculars and aerial lifts. It is not quite so essential in suspension bridges and similar uses. Wire rope is often sold with vinyl and nylon coatings. This increases weather resistance and overall durability, however it can lead to weak joints if the coating is not removed correctly underneath joints and connections.
OBJECTIVES OF THE STUDY Mainly the study aims to find out the impact of marketing mix on Usha Martin ltd. But it also determines strength, weakness, opportunity and threat factors of the company. In this study we tried to analyze the impact of micro and macro environment (PEST analysis) for the company. By this work we can easily determine the growing opportunities of the company in near future. To find out the mix strategic of Usha Martin Limited. To find out the problem faced in marketing strategic and transportation and try to solve it. Service Improvement Mainly the study aims to find out the impact of marketing mix on Usha Martin ltd. But it also determines strength, weakness, opportunity and threat factors of the company. In this study we tried to analyze the STP (segmentation, targeting, and promotion) strategy, CSR and impact of micro and macro environment (PEST analysis) for the company. By this work we can easily determine the growing opportunities of the company in near future. This study also provides the information about major competitors, suppliers and customers of the company. It also helps us to understand the work process, production process and sales process of the company.
RESEARCH METHODOLOGY Research is an activity of systematic search for approachable and appropriate information on the certain topic. This is nothing but re-searching means certain research done in past in the same topic. It is doing in the process of finding new facts and figures. Research methodology defines activity of research, how to measure, proceeds. And what make success. Data used in this project is the combination of primary as well as secondary data. Primary data is compiled through surveys interviews, and discussions in different area of the company, where as secondary data is collected from various magazines, websites and some past research records. A. Research Plan: Find out how the company is dealing with the important factors like Marketing mix, segmentation, targeting and positioning tactics. Then follow and understand the key factors like Logistics system and Supply chain management performance. Based upon the findings find out the exact areas where the system is not working properly. Consider the SWOT of the company carefully. After exploring those problematic areas suggest a suitable solution to overcome the situation. B. Study based upon:
Exploratory study: To determine the exact area where the problems lies and also identify some attractive courses of action to solve it. Important factor which was not clear after this make them clear.
Preliminary Investigation (Descriptive Research): Investigate about the given topic that is “Marketing mix strategy and Logistics Control of UML”. Data has been collected and gathered upon the topic from the surrounding environment to find out: a. the correct definition of problem b. an understanding of its environment.
C. Data Collection: It consists of collecting all the related information from various departments in UML like Sales coordination, planning, accounts, Quality control, production department and Inventory. The data collection is done through surveys and interviews in different departments.
Source of Information: i.
This type of data collection based on Nature, discussion, different surveys, Knowledge and Opinion. Source
Different departments and Concerned persons: 1. Sales & Co-ordination (Mr. Arun kr. Dey & Mr. U.P. Sinha) 2. HRD (Mr. Nipen Karmakar) 3. Marketing (Mr. S. Chatterjee) 4. Inventory (Mr. Sailesh Kumar) 5. Wire mill division & 6. Ropery Division (Mr. R.S. Yadav)
Approaching through: 1. Questioning. 2. Interview. 3. Discussion 4. Opinion. 5. Class room training and learning in HRD.
Data collected from the old records.
Source 1. Sales & Co-ordination
List of data 1. Actual sales record 2. Target sales. 3. Customer details list. 4. Order processing system. 5. Logistics and delivery records.
1. Company annual report (06-10) 2. List of suppliers and competitors 3. About different divisions of UML. 4. Management profile & Hierarchy.
1. Manufacturing Process of different products. 2. Target Production. 3. Different production layers.
1. Market positions (global & domestic) 2. Marketing strategy 3. Pricing policy. 4. Application of the products. 5. Market segments.
5. Company website (www. ushamartin.com) 6. Inventory House
1. Company profile, history, background. 2. Product mix. 1. Inventory record (01/04/10 - 01/04/11) 2. Inventory flow system.
D. Data Analysis: It consists of studying each and every data carefully so as to reach or find out answers to the problems for which the research is done. Analysis part is the most important part in the research process. In this project analysis of wire , rope & specialty product and its market demand is done scrutiny in order to see how company focuses on the Marketing mix strategy along with how company is implementing and control the logistics system beside that company strategies, brand image which influence customer to go for UML products. After that determine the drawbacks of the company and give possible solutions. E. Area to be considered: i. Marketing mix 7p ii. Total logistics system. iii. Supply chain management. iv. Markets.
F. Suggestions: It includes findings, interpretations and suggestions regarding the viability of the project, brand image and strengths and drawbacks of the company with possible solutions and the comparative study between the features and the service provided to the customers.
G. Limitation: As we know that UML is doing B2B activities and their customer lists are huge and spading throughout the world, domestic customers are also located at different region in India so that data collection through the questionnaire from those customer is not possible. So investigation is done and feedbacks are taken from the managers through interactions.
CORPORATE SOCIAL RESPONSIBILITY (CSR) OF UML Social Commitment through Krishi Gram Vikas Kendra Management commitment and support since 1977 "In every village where hunger persists, human being must be empowered to discover Their own visions express their own leadership; and work together to achieve their own success"
Augmenting water resources through watershed management Sustainable income generation through cottage industries & live stock management Capacity building through "agivika research & training center" Health & family welfare programmes Women empowerment thru "swashakti" programme
KGVK projects In partnership with grass root civic society, corporate and government •
India Canada environment facility (ICEF) project - for water resources
environmental restoration (project cost rs 10.0 cr) •
ICICI - cini project - for primary health services at the grass root level project cost Rs. 2.0 crore)
Project with us aid along with cepda - for training barefoot workers in villages for making them 1st point of contact in village health services
Projects with government of India for water shed, women empowerment, education etc.
Total projects worth Rs.18 crore in hand
Product Mix of UML & Its Application
Steel spring wire
Cycle spoke wire
Motorbike Industries wire
Low carbon wire
various Industries carbon wire
Staple pin wire
Ball bearing wire
For making Explosive
Steel Wire brushes
Ropes & Strands: LRPC
Locked coil wind
Oil drilling rope (Titan drilling line)
oil drilling sector
Bridge rope (Spiral strand)
cranes, wireless making
mines, Cargo lifting
Over head Power Transmission
SOME AREA OF APPLICATION OF THE PRODUCTS:
LRPC STRAND FOR CONCRETE CONSTRUCTION
PRE-STRESSED SPIRAL STRANDS OR LOCKED COIL FOR BRIDGES (HOOGHLY BRIDGE)
ELEVATOR ROPE FOR LIFTS
TITAN DRILLING LINES ROPE FOR OIL DRILLING
ARIEL ROPES FOR ROPEWAYS ACSR ROPES- FOR POWER TRANSMISSION
HYFLEX OR POWERFORM ROPES FOR CRANE HAULAGE ROPES FOR UNDER GROUND MINING
HOST ROPE, DRAG ROPE, DUMP ROPE, CROWD/ RETRACT ROPES FOR SURFACE MINING
GENERAL ENGINEERING ROPES
CONVEYOR CORDS FOR CONVEYOR BELT
WIRE ROPES IN SHIPPING ACTIVITIES
Marketing Mix Strategy Of Usha Martin Ltd. : "Marketing mix is the set of controllable, tactical marketing tool that the firm blend to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. It includes the product offered by the firm, the distribution channels it uses to make the product available to customer, the price it charges for the product, and its promotion activities to popularize the product in the market. Marketing mix strategy depends on 7 different factors, they are known as 7ps of marketing. The 7ps are: Traditional Mix: 1. 2. 3. 4.
Product Price Place Promotion
Extended Marketing Mix: 5. People 6. Physical evidence 7. Process Usha Martin company also has the impact of 7ps. Now the impact of 7p on Usha Martin Ltd is briefly explained below:
TRADITIONAL MARKETING MIX (4P): 1. PRODUCT: Usha Martin Ltd is famous for their steel rope manufacturing. The group has set new standards in the manufacture of wire rods, steel wires, specialty wires, wire ropes, strand, conveyor cord etc. The product can be classified into two different parts:
(DESPATCH TO CUSTOMER)
1. Semi finished product: A final product is manufactured under some different critical processes. First raw material is processed and transfers it into wires. After that using some wires company makes strands. By the help of numbers of strands rope is made. So under semi finished products we can take Wires, Strands etc which is sent for further processing to different department.
2. Finished Product:
When all the manufacturing process is completed the final
product is made. Under this finished products we can take Fine Cord, Steel Wires, Steel Ropes, LRPC etc. This type of product is sent for packaging.
Ropes and LRPC
Types of product: As we know that Usha Martin Ltd is world famous for their quality wires and steel ropes, but including ropes they manufacture 5 related products, they are 1. Steel Wires 2. Strands 3. LRPC (Low Relaxation Presterss Concrete strand) 4. Steel Rope 5. Fine Cord. i. Steel wires: Manufacturing steel wires according to the desired size and length is the first step of processing. First of all company collect the raw materials from its suppliers. The maximum raw materials come from the Usha Alloys and Steel Division Jamshedpur. Raw materials are actually steel rods of different lengths and diameter. Then it is sent to the Furnace and Pickling House for refining. Then by the help of the Wire drawing machine rods are drawn into wires. Then some of the wires are sent for further processing and some of them are sent for final packaging and dispatched. Manufacturing process:
WIRE RODS (RAW MATERIALS)
DESPATCH SURFACE TREATMENT
Machinery Used : In this processing Wire drawing machine like Bull block, OTO, Dancer are used. To collect them in a bobbin Winding machine is used. Applications: These wires can be used to make auto Spoke, Cycle Spokes, PC strands, PC wire, Rolling Shutters, ACSR etc. Beside of these it has a high demand in needle industries, spring, and staple wire purpose.
( CUSTOMER/ FURTHER PROCESSING)
ii. Strands : By twisting number of wires in same direction or opposite direction strand is made. Number of wires in a strand may be 26, 36, 76 etc. According to the construction or lay direction stands can be classified into two different types a. Ordinary: In this type of strands wires are twisted in opposite direction. There are two types of ordinary strands, 1. Left hand ordinary and 2. Right hand ordinary.
b. Lang (Left handed langs/Right handed Langs): In the wire in strand and strand in rope are twisted in same direction.
Machinery used: Generally different kind of Strander Machinery is used. Strander machinery are differentiated according to the number of bobbins working in the machinery, such as 26strands, 36strands, etc. Manufacturing Process: WIRE RODS (RAW MATERIALS)
Application : This wire strands are sent to the Ropery division for further processing. By twisting the number of strands rope is made. And out of those strands P.C. strands are used in railway
iii. LRPC (Low Relaxation Prestressed Concrete Strand) This type of wires is manufactured mainly because of its international demand. Mainly it is used in construction industries such as roads, buildings etc. During the process of manufacturing LRPC „Hot Stretch process‟ is used to make the wire straight. After that post Straitening Treatment is given as a result up to 10% of reduction in steel requirement is possible. Machinery Used: To make LRPC, first hot stretch treatment is given, then the wire is sent to Wire drawing and O.T.O machinery and then post straitening treatment is given.
WIRE RODS (RAW MATERIALS)
LOW/NORMAL RELAXATION STEEL STRANDS
Applications: It is used in: a. Pre stressed concrete graders for roads b. River and Railway bridges and flyovers. c. Pre stressed concrete domes, slabs, Hangers, aqueducts. d. Viaducts and Railway sleepers.
iv. Steel Wire Ropes: After the wire strands is made they are sent to Ropery Department. In this department by the help of advanced machinery they twisted a number of strands according to the order. The number of strand can be 8, 10, 12 etc. According to the number of strand in a rope and number of wire in a strand rope is recognized. As an example: 6/36 indicates a rope which has 5 strands and 36 single wires in every strand. This ropery division has 100000mt per annum manufacturing capacity. And products manufactured by them are ISO 9001 certified. In ropery division ropes ranging 3 mm to 116 mm diameter is made by the help of advanced technology. According to the diameter of rope they are sent to different machineries. Level 1: Here 3mm to 13 mm diameter of rope is made. Level 2: Layer 2 machinery makes 14mm to 32mm ranging ropes Level 3: over 33mm and up to 127mm diameter ropes are made by Usha Martin Ltd. Machinery Used: To manufacturing rope company is using advanced closure machinery. Closure machinery can be differentiated according to the number of strands in a rope, according to the number of rope the machinery consists bobbins. If 8 strands are given in a rope then 8 bobbins should be there in the machinery.
Except the closure machinery, company used Bunchier M/c, Winding M/c, Load Testing
M/c Manufacturing Process: WIRE RODS (RAW MATERIALS)
to complete the process. Applications: According to the different load taking capacity ropes are used in different industries; 1. Application in oil exploration, Coal mining is very popular. 2. Ropes are used in Elevators, Crane and construction industries. 3. Besides that this ropes are used in load transportation, general engineering sectors. 4. Ropes are also used in underground mining, surface mining, mooring, onshore and offshore drilling etc. 5. Pre stressed ropes, locked coil wire ropes and spiral strands are made in Usha martin ltd are used in suspension bridge, antenna masts etc. 6. These ropes have a huge demand in fishing industries also.
v. Fine Cord: Fine cord indicates those steel wires whose size range is coming under 1.2mm to 6.00mm. Manufacturing this kind of cord is very difficult because steel rods are coming as raw material then they are processed through wire drawing machine, to make them according to the desired size. In this process there is a maximum possibility of breaking those rods during pulling them. So operators must be experienced.
Machinery Used: In this production process includes wire drawing machinery, stranding machinery, closing machinery and winding machinery. Manufacturing Process: WIRE RODS (RAW MATERIALS)
Application: This type of cord is used in 1. Inner element of automotive control cable. 2. It is used in boring application. 3. It is used as pull cord cable for lying of television cable.
Make To Order (MTO): Make to order concept indicates production according to order received. Usha Martin Ltd follows this concept. So according to the product specifications and quantity provided by the customer company manufacture the product. On the basis of this customer specification products can be differentiated into the following part:
PRODUCT DIFFERENTIATING FACTORS ACCORDING TO CUSTOMER'S NEED SIZE
How they will be differentiated on the basis on the above points are described below shortly:
a. Size: Size can be measured according to the diameter of the rope. Usha Martin manufactures a large range of production of ropes, strands, wires with different diameters. Ex: UML produces ropes starting with 2mm diameter and up to 127mm for their different application. Strands are produced from .22mm to 28mm of diameter and wires are starting from .2mm to 15mm diameter. b. Construction: Construction of rope indicates by the number of strand twisted in each rope and number of wires having in each strand. Basically it denotes in X/Y form. Where „X‟ denotes number of strands in rope, „Y‟ denotes number of wire in each strands. Ex: 6/36 it indicates that particular rope which is made of 6 strands and each strand of that rope is made of 36steel wires. Like that 6/7, 6/26, 7/7 etc. are different construction of rope. c. Loading Capacity: Different ropes with different diameter has different load taking capacity. According their different load taking capacity they are identified differently and also using in different industries. Ex: The market demand of 100tonnes rope of Usha Martin is very high. And a new project taken by Usha Martin to produce rope of 200tonnes load taking capacity, it is first time in Asia to produce this type of high capacity rope. d. Lay Direction: Lay direction basically determines direction in which wires and strands are be laid in as a strand and rope respectively lay direction can be two type:i. Ordinary (Left handed ordinary and left handed ordinary) ii. Lang (Left handed langs/Right handed Langs) About this section we have already discussed earlier. d. Core: The core is the centered element of a steel wire on which the strands are twisted. UML product include rope is made of two types of core 1. Fiber core 2. Steel core.
Fiber core: Fiber core can be made of any of the
following material. 1. Jute 2. Sisal. 3. Polypropylene. ii. Steel Core: Again there are two types of steel core 1. Wire Strands core : It is a single strand use as core, and other strands in that rope also made of the same construction. 2. Independent wire rope core : It is an individual wire rope uses as a core in another wire rope. f. Length : - UM offers its products as per the length required by the customer. Usually the length is expressed in term of meter/feet. g. Lubrication: Usha Martin provides both lubricated as well as un-lubricated products depending upon the end use by the customer. Ropes are usually lubricated during stranding and if required during closing also. Lubrication prevents corrosion wear and tear during the process of manufacturing during use. UML used two type of lubrication: 1. Petrol Based Lubricants: used for general engineering ropes, elevator ropes and passenger rope and passenger rope ways. 2. Bit UML Lubrication: these are used for products meant for fishing excavator and anchor mooring purpose. h. Tensile Strength: It is basically determines the breaking force of the rope .it is the expressed in term of kg/mm2. To achieve a specific tensile strength demanded by customer UML takes related aspects right from the beginning of the manufacturing process. a) Percentage of the carbon in wire rod. b) Temperature) Speed of machine Generally UML offers its product with a tensile strength in 1/6 ratio i.e.6 times more as specified by customer.
PRICE: The price is the amount a customer pays for the product. The business may increase or decrease
Price of any product is set by the head office of UML situated at Kolkata. As the products are well tested and certified by ISO 9001 the price of the products are comparatively higher than the competitors. According to the region, customer and purchase quantity price list is prepared by the head office.
Pricing Objective: Product-Quality Leadership: Usha Martin Ltd. aims to be product quality leader in the market. Many companies in the market produce homogeneous products of average quality and comparatively in low cost. But Usha Martin‟s products are characterized by high level of perceived quality, well tested and high status with a price just high enough but not out of customer‟s reach. Due to maintaining global quality standards the products have been awarded by ISO 9001. Beside of that wires confirms various specifications such as:
IS (Indian Standards)
JIS (Japanese Industrial Standards)
ASTM (American Society for Testing and Materials)
DIN (Deutsches Institut für Normung, that is, German Institute for Standardization.)
Components of product price: Pricing of products is based on the following considerations: 1. C&F (Cost and Freight): For some cases selling price of a product includes cost of the goods and freight charges only and insurance charges are supposed to be paid by the buyer. 2. CIF (Cost, Insurance and Freight): In case of export of goods UML‟s selling price includes all the charges like insurance expenses, overseas and vessels expenses are paid by the buyer. The recommended price list gets final approval by the company president, Marketing, JMD and MD for the future concern. 3. Sales Tax: In selling price sales tax @ 10% on the product price is applicable.
4. Education case: Education case @2% on the taxable amount of the product sold is applicable.
Price determining factors: Price of a product depends on some factors, considering those factors final negotiation is done. Those factors are:
PRICE DETERMINING FACTORS
STRANDARD OF PRODUCT
CHANNEL & NO. OF DEALERS
Price is always depends on market demand. When market demand of a particular product becomes high company can claim premium price for that. As UML products has always a high in market so product price is comparatively higher than the competitors. ii.
Standard of product:
Standard of a product is one of the main factors which determines price. As UML products has maintained international standards and also many specifications. So the standards of products are certified by ISO 9001 which is an important part behind selecting pricing strategy. iii.
UML provides discounts to their customers to promote their sales. Not only that customers are attracted in purchasing their product. Final bill is made after considering the amount of cash discount deducting from the billing amount. iv.
Customers are given some credit purchase facilities for a particular period. Credit purchase can be allowed for 1 to 3 months and depending on the time period allowed the final price is decided.
Competitor‟s price company should consider during making the price list. In case of survival condition price should not cross competitors price but for the market leaders they can claim premium price. vi.
Channel and No. of dealers:
No of dealers in a distribution channel determines the price of product, if no. is high expenses should be more and price will be high. 5. PLACE: Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Finally place can be expressed as channel, coverage, assortments, locations, transport. a. Channel: A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management. Usha groups have different subsidiary companies in national as well as in international markets. Some of them involved in manufacturing activities and some of them act like marketing and distribution centers for its products worldwide. i.
Channels using for International Market:
Usha Martin Americas Inc (UMAI) it is located at USA it does not have any manufacturing
Usha Martin Singapore Pte Ltd (UMSPL) in Singapore, it is also a large distribution center which controls the product distribution in Indonesia, Australia and Vietnam. UML uses these subsidiaries as their marketing and distribution channels to reach their end customers. iii.
Channels Using for Domestic markets: Usha martin has four branches and warehouses situated at Kolkata, Mumbai (Baroda, Ahemedabad), Delhi (Faridabad, Chandigarh) and Bangalore. These four places are
strategically selected in four different regions in India to control the market demand arising from different part of the country. In case of home dispatches company maintain a direct contact with their industrial customers and suppliers. b. Coverage: Just like Indian market UML has increased their product market into international level also. With local success come global aspirations. Currently, the company has overseas manufacturing operations in Thailand, UK, USA and Dubai. Besides a vast network of distribution centers and marketing offices spread across the globe to support an ever growing worldwide customer base. The company exports over 60% of the wire rope output and about 20% of the total wire rods produced. From last four decades UML has enhanced its coverage area of product market. c. Location: UML has captured both national and international market by placing its product in a particular market systematically. In national market there are some branches of UML which are located at different areas in India, they are: 1. S.P.D., Ranchi 2. Wire and Wire Rope Division, Ranchi 3. Usha Ismal Division, Ranchi 4. Usha Alloys and steel, Jamshedpur 5. Usha Machinery, Ranchi 6. Rod Mill Division, Agra. Just like the national market Usha Martin has many branches in international market also, some of them are: 1. Usha Siam Steel Industries public Company Limited, Thailand (USSIL) 2. European Management & Marine Corporation Limited (EMM), Aberdeen, UK, 3. Brunton Wolf Wire Rope FZE Co. middle east, in Jabel Ali Free Zone Enterprise. 4. UM Cables Limited (UCL), Silvassa.
d. Transport: Transport is depends on the market types. Domestic Transport: In case of domestic market transportation of goods takes place through trucks and trains. While most of the transportation activities include loading of goods in the trucks, preparation of documents relating to state permit, Insurance of goods in transit, Invoice a delivery challans and other bills relating to miscellaneous expenses. International Transport: In case of the International market, the goods to be transported are first put to packaging with utmost care and then stored in the containers. Such Containers are then loaded in the trucks, which are then sent to different places i.e. the various ports such as Kolkatta, Haldia and Mumbai. These ports serve as a check point where Inspection of goods is done by a third party. On approval, the goods in containers are then loaded in different ships headed for different places. Such goods are then unloaded in foreign docks and delivered to predetermined destinations. 6. PROMOTION: By promotion firms attempt to inform, persuade and remind customers directly or indirectly about the product and brands they sell. Promotion communicates the voice of the company which represents its brands and it can establish a dialogue and build relationship with customer. Usha Martin has monopoly in the Indian market because of its quality product. As the products confirm many specifications and certifications so that they are very much safe and reliable to the customers. Like the other companies UML does not have any advertisement in television or print media. One of the main reasons behind this is the goodwill of the company which has built since its beginning in the year 1960. The promotional mix strategy includes 6 different tools of promotion. But to promote their product UML adopt some of the tools of promotional mix, they are explained below:
CREDIT TO CUSTOMER
a. Public relation: This tool of promotional mix includes a variety of programme designed to promote or protect company‟s image or its individual product. To promote their product or image UML uses some tools of public relation strategy: i.
Participating Trade Fairs:
The company participates in various trade and industrial fairs held in national or international market. The main objective is to keep in touch with the existing customer as well as to attract new customer segment. ii.
Every year company spends a lot of money on sponsorship of various programme. These programmes may be cultural event or social event, the main objective is to create a mass awareness to their target customer. iii.
Under regional activities company has taken KGVK project which stands for Krisi Gram Vikas Kendra. It includes many social development activities, some of them are:
Augmenting water resources through watershed management
Sustainable income generation through cottage industries & live stock management.
Health & family welfare programmes.
Women empowerment through "swashakti" programme.
b. Sales Promotion: Sales promotion is a variety of short term incentives to encourage trial or purchase of a product
UML is using some of the tools of sales promotion strategy. i.
Discounts: To promote their product and increase their sell company giving some allowances or offers and cash discounts to their customers on the cash or credit purchase.
Warrantee: The entire product manufactured by UML is well tested safe and reliable. It produces product six times stronger than specified by the customer. The products are confirms many specifications. So UML takes sales promotion by providing warrantee on each and every product. All the products have full time warrantee.
Credit to Customer: Credit sales facilities are also available in UML. It depends on customer goodwill. Generally the credit is provided for one month to the customer, but maximum time can be vary to 2-3months also, so customers should pay their dues after one month of the delivery.
c. Interactive Marketing: It is an online activities or programme designed to engage customer or prospect and directly or indirectly raise awareness, improve image or elicit sales of product or services. i.
Information through Website
UML providing information about company‟s missions, visions, performance, various products, processing or manufacturing system and many more valuable data through their company website ( www.ushamartin.com ). Customer may get the proper and reliable answer of their queries through log in their website.
Online transaction (EPS):
Customers can order, check their credits and also they can pay for their dues through online. UML provides online transaction facility which is known as Electronic Payment System (EPS) where customers can easily access their needs through few clicks. d. Personal Selling: Personal selling is a face to face interaction to the prospective purchaser for the purpose of making presentation or demos, answering questions and procures orders.
Inviting customer for Plant-Demo:
UML is engaged in the activities to invite customer in their plant for a spot demo about their product specialty manufacturing process in order to procure order from them. This kind of activities increases customer‟s confidence about the product.
UML also takes personal serving as its promotional campaign which is a part of personal selling.
EXTENDED MARKETING MIX (3P): 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. These 3ps are: 1. People. 2. Process. 3. Physical evidence. 1. PEOPLE: People indicate all the people involved in production, process, service and consumption for example Supplier, Workers, Management and Consumers etc. It addresses particular class of people for whom the product or service is made available. People can be classified into two different parts:
People who are working in organization and involved in different activities they play a important role to manage the performance of the organization. Internal people includes workers, labors, employees like sales executives, financial managers, marketing manager, HR person, project manager etc. According to the type of work internal people can be classified into two different parts: a. People involved in production process: These people are directly related to the manufacturing process. Such as Machine operators, helpers, mechanics, Crane operators etc. b. People involved in office & administration: These people are involved in the activities of different departments like Sales co-ordination, Finance, Quality assurance, Human resource development (HRD), Export divisions etc. ii.
a. Customers: Customers are the principal element of any business, without whom the purpose of production will not be fulfilled. So, UML has taken every possible care to satisfy the customer. As UML not only restricted in domestic market but also it has to cover the internal market so company has to take different strategy to satisfy each individual customer. UML not only concentrates in existing customer but also to find new customer in new segment. b. Share holders: External people are known as our customers but we cannot overlook the share holders who already invested in company shares or who are ready to invest
in company shares. Share holders are playing an important role in collection of capital.
Strategies to satisfy the people: i.
Strategies for internal people: a. Providing basic facility such as canteen facility, Transportation facilities (buses), Medical facility. b. Providing Incentives schemes, annual or periodical bonus. c. Company also provides gifts to its high profile employees. d. Company has its own library and clubs where employees can spent their free time e. Apart from medical facility company has its own dispensary for emergency treatments.
Strategies for external People: a. Make the product according to specified by the customer. b. Quick delivery through transport is available in both national and international markets. c. Company pays dividend to its share holders timely. d. Provision for quick after sales service through personals. e. International customers can send order in any of their nearest regional location branch and also can get after sales services from there. f. Online order and payment facilities are available in UML which is very convenient and popular to customer.
2. PROCESS: Process is a mechanism and flow of activities by which products or services are used. Also it is the 'Procedure' how the product will reach the end user. The total process from raw materials purchase to manufacturing finished goods and supply it to the customers is follow a systematic way. First we describe how the raw materials are processed through different departments in Usha Martin ltd by the help of a flow chart:
FURNACE AND PICKLING HOUSE Provide necessary treatment to R/M (Iron rods) for processing wire drawing
Rods are drawn into wires of desirable specification (size, length etc.)
ROPERY DIVISION Materials are sent to Ropery for production of ropes as specified by customer
After these 3 stages raw materials become finished goods. But there is another process by which the finished goods are received by the customers after placing order. This process is described below: This total process of order processing system is lengthy and time consuming. UML is trying to shorten the order to payment cycle to save the time. For that reason UML has taken some strategies they are explained below: i.
Employment of better trained and skillful sales persons.
Recruit more employees in foreign branches.
Providing online transaction facility so that customers can order their product online also they can make the payment online it is known as EPS Electronic Payment System.
Design their system on ERP package i.e. ban system (a product of IBM.), such a system helps the organization to receive order in time through Internet, and then prepare a planning schedule for production based on the Inventory status.
3. PHYSICAL EVEDANCE: It is the ability and environment in which the product or service is delivered. Both tangible goods that help to communicate and perform the service, and the intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers. There are many examples of physical evidences applicable to UML, they are: Packaging of the products which finally dispatch to the customers. Internet/ web pages specially company‟s own website. Paperwork such as company invoices, C. Note, Dispatch note etc. Company owned logo which
warehouses, Subsidiary companies, different branches of UML
different Places. Business cards are also included in physical evidence.
RESEARCH METHODLOGY Sources of Data Internal Sources:
USHA MARTIN LTD and the transporters associated. Logistics will be provided by Sales and Coordination Department of USHA MARTIN LTD Secondary Data: IIPM, New Delhi Page 22 Various Data Records of the company. External Sources:
Data Collection: It consists of collecting all the related information from various departments in UML like Sales coordination, HRD, Stores and Inventory. The data collection is done through Discussion and interview in different departments.
Research design: Exploratory Research Design:Since in this case, instructions on what information needs to be collected and the purpose of the study has been provided, so it is certain about the sources from where one needs to collect the information, thus it is appropriate to go for exploratory study. Kind of information to be obtained important factor which was not clear after this make them clear.
SUGGESTIONS 1. About Products: i. As the company has enough resources and technical support company can move for new market segment by the help of Product development department as an example company can manufacture steel nets which has different needs in market. ii. With the supply of every order company can provide a catalogue with the details of their products and special offers, terms of discounts, restrictions and also warnings for the wrong use.
2. About Price: iii. Special offers, discounts, cash rebates can attract more customers and if price becomes low the sale volume should be high they can easily target more customers.
3. About Promotional Activities: iv. Company does not use any advertisements using TV or print media, so company can use Business Magazines; Business News papers (Economic Times), Business TV Channels or News channels to provide their necessary information to attract more people. v. Company should have a particular help line number to assist their customer or sharing information according to their quarries. vi. Company can also place their ads through online, media should be chosen according to Coverage areas, Cost and effectiveness.
About internal Changes: vii. Company is using XP or Windows 98 as their operating system which is much slower according to the new systems; it is one of the main reasons behind delay in working process, so company can adopt Windows7 system according to the compatibility with BAAN to boost up the speed. viii. More distribution centers should be opened in the International markets especially in the Middle-East countries like Kuwait, Iran, and Saudi Arabia, because there is a huge possibility in oil drilling sectors.
ix. Company should concentrate to increase the ware house area in plant at least to protect the raw materials from the damages caused by the environment.
4. About People: x. There is lack of motivational activities for the workers, it is very important to set their concentration or satisfaction in their work.
5. About Transportation: xi. For export company is using fishy back combination with road and water transport and for domestic dispatch company is using trucks or trailers. Apart from this company can also use rail transport according to the geographical convenience and quantity or size of the products, it is cheaper than road transport. 7. R&D Activities: xii. As market is changing day by day and demand of products are also changing with it. More important India is becoming the hub of global MNC; UML should undertake a detailed research on the current market requirements.
BIBLIOGRAPHY: 1. Text book: Marketing Management 13th edition: By Philip Kotler. Kevin Lane Keller. Abraham Kosi Mithileswar Jha
(1) Annual Report of UML. (2) Usha News. (3) Office Documents. (4) Sales Records (5) Inventory Record
Internal records of UML's given by various department: Sales & Co-ordination Manufacturing. Inventory Marketing (Kolkata H.O.) Product Development TPM
Websites: www.ushamartin.com www.wireropes.com www.google.co.in