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Distribution Channel for Steel Industry in India

In: Business and Management

Submitted By manishkarn
Words 3172
Pages 13
Anupam Agrawal
DISTRIBUTION CHANNEL USED BY LEADING PLAYERS
Within the Distribution category, the business is categorized as OE or Retail, based on whether the customer is serviced directly, or through the Retail / Distribution network. In OE, there are sub-segments like OEM distribution, and in Retail sub-segments like GC/GP retail distribution, CR retail distribution, and geographic segmentation. In OEM distribution, the customers specify the grade of steel that they require and the company takes responsibility to supply them the same grade of steel in the agreed cut to size condition. In retail distribution, companies maintain stocks of material for feeding its retail chain and provide Value for money products. In Distribution, the Steel Mills are the key suppliers and they play a very valuable role in the supply chain as they are responsible for providing the correct quality of steel, its timely delivery, post- sales support and joint marketing support.
TATA STEEL
DISTRIBUTION CHANNEL
G C sheets:
Traditionally G C sheets were considered as a commodity. Over time, TISCO has succeeded in differentiating its product and becoming a market leader. Presently it has 32% market share in the G C sheets industry.
The company serves a wide variety of consumers, ranging from reputed contractors to retail users from the private sector organisation to the public sector undertakings. These consumers can be classified into 3 major groups:
1) Government
2) Retailer (B TO C)
3) Private sector consumers (B TO B)
To cater to the needs of all its consumers, the company does both (B to B selling) and retail outlets (B to C selling). Bulk orders come under direct selling and small order from retail outlets.
Tata steel has selected 28 distributors in different location across India. Every distributor is given 2 days training session, after which they become confident about…...

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