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Distribution Channel In Steel Industry Essay

899 words - 4 pages

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.

TATA STEEL
DISTRIBUTION CHANNEL
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Also, the sales force comes up with attractive schemes for the retailers to help them achieve their target sales. Dealers keep RSU vans which is used for transportation and advertising. All the distributors have upgraded warehouse with weighing machine.
Tata steel segments its retailers in 4 categories
1) The star
2) The challenger
3) The friend
4) The dog

Tata shakti has 5000 retailer across India. It has 683 retailers in Maharastra. They had classified its retailer on the basis of potential and loyalty. They had offered different schemes to retailer according to their sales. They offer great discount for their star retailer, so it act as a motivator for the challenge retailers to come in star segment. Channel capability can be build by deployment of effective sales force and by ROI guarantee schemes for retailers. Stock points are located at convenient locations which are easily assessable by customers.
They follow a simple philosophy for distribution: To create a
Professional distribution through an organised retail network focused on servicing natural local market that captures value of brand.
SAIL
CENTRAL MARKETING ORGANISATION SAIL
The ISO: 9001:2000 certified Central Marketing organisation (CMO) is India’s largest industrial marketing set-up that markets carbon steel produced by the four integrated steel plants of SAIL. Headquartered in Kolkata, it transacts business through its network of 34 Branch Sales Offices spread across the four regions, 25 Warehouses equipped with mechanised handling systems, 11 Customer Contact Offices and 16 Consignment Agents. CMO’s domestic marketing effort is supplemented by its ever-widening network of authorised and rural dealers who meet the demands of the smallest customers in the remotest corners of the country. A strong IT support system enables real-time network...

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