Branding a Commodity - Tata Steel

About Tata brand name Tata Steel was established in 1907 by JN Tata at Jamshedpur in Bihar, India. The company commenced production in 1911. In the too soon 1980s, the company initiated a modernization program for its steel plants. By the mid 1990s, Tata Steel was Asias number one and Indias largest combine steel producer in private sector. In two hundred3, Tata Steel declared a turnover of Rs 98.44 billion with a pay after tax of Rs 10.12 billion. Q1. Discuss the reasons for aggressive branding and merchandising by Tata Steel of its products in early 2000s? 1. The first reason was to reduce the dependence of Tata Steel on the extraneous environment. The profitability of steel diligence in India is strongly link to variations in business cycle. Steel companies register heavy boodle when there was boom in the economy and profits decline 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 system in this period. The strategy involved: ? Branding its products ? Moving to last value products To get its branding exercise right, Tata steel focus on strong guest 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 incision the help of R. Gopalakrishnan who had experience in branding in HLL. It in any case took help of FMCG companies to train its marketing personnel in branding. 2. The irregular reason was low revenues flood tide 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 refer about the quality of steel or brand name. They were concern with only product availability and prices.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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