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ACKNOWLEDGEMENT
We take this opportunity to place on record our grateful thanks
and sincere gratitude to Mr. U.P Sinha (DGM, Sales Co-
ordination), Mr. A.K Dey (Officer Sales Co-ordination), Mr. Arvind
kumar (Dy. Manager, HRD) who gave us valuable advice and
inputs for our study. Our study could not have been completed if
we had not been able to get the reference materials from the
company.
Last but not least, we would also like to express our thanks to
our family members who inspired us to put in our best efforts for
the Research/Project Report .
CONTENTS
1. INTRODUCTION OF USHA MARTIN LIMITED.
2. BACKGROUND OF THE COMPANY.
3. VISION.
4. GROUP COMPANIES.
5. OBJECTIVE OF THE RESEARCH.
6. SOURCES OF RAW MATERIAL.
7. UML NATIONAL & INTERNATIONAL COMPETITORS.
8. THE SUPPLY CHAIN MACRO PROCESS.
9. CUSTOMER RELATIONSHIP MANAGEMENT.
10. INTERNATIONAL SUPPLY CHAIN MANAGEMENT.
11. SUPPLIER RELATIONSHIP MANAGEMENT.
12. MARKETING.
13. MARKETING CONCEPT OF UML.
14. MARKETING MIX STRATEGY.
15. LOGISTICS CONSTRANTS OF UML.
16. OBJECTIVE.
17. MARKET LOGISTICS.
18. GLOBAL AND DOMESTIC DISTIBUTION STRATEGY.
19. ANALYSIS AND INTERPRETATION.
20. SWOT ANALYSIS.
21. FINDINGS AND RECOMMENDATION.
22. BIBLIOGRAPHY.
COMPANY PROFILE
“EACH ONE TEACH ONE TO MAKE USHA MARTIN NUMBER ONE”
INTRODUCTIONOF
USHA MARTIN
Wires and strands remain the core business focuses at Usha Martin. The ISO-9001-certified manufacturing facilities at Ranchi (Eastern India) are among the most modern and the largest in the world .Wire and Strands forms a major focuses area of the business. Usha Martin is India’s second largest manufacturer of wires and strands, successfully servicing a variety of areas. Industries such as Automobiles, General engineering, power Infrastructure and construction, and specialty products have been using our products for a number of years.
With its state of art manufacturing unit at Ranchi and its extensive market reach, the company has been a significant player in the wire market. The ISO certified manufacturing unit conforms to the best practices and highest quality systems. Due to its internationally recognized systems and standards Usha Martin Wires and strands have made a mark for themselves the world over.
THE PARTICULARS OF USHA MARTIN
LOCATION : CHOTANAGPUR(JHARKHAND)PLANT AREA : 112 ACRESCOVERED AREA : 16 ACRESNEAREST TOWN : RANCHI (13 Kms)NEAREST RAILWAY STN: TATISILWAI (1 Km )NEAREST ROAD : SITUATED IN NH-33NEAREST AIRPORT : RANCHI (17 Kms )NEAREST PORT : HALDIA (412 Kms )POWER : CONTRACTED DEMAND 10 MVASOURCE : JSEBWATER REQUIREMENT: 2400 -3200 Cu M / DAYSOURCE : SWARNAREKHA RIVERPLANT CAPACITY : 77500 MT Per AnnumPRODUCT : STEEL WIRE, WIRE ROPE etc.EMPLOYEE : 1568OFFICERS : 297STAFFS : 72WORKERS : 1212
USHA MARTIN WIRE & WIRE ROPE AS PER NATIONAL & INTERNATIONAL STANDARDS & SPECIFICATION SUCH AS:
1) Indian specification
2) ISO specification
3) British standard specification
4) American petroleum institute
5) Indian railway specification
6) Defense department specification
7) Lloyd’s specification
8) Federal specification
9) ASTM specification
10) Canadian specification
11) Australian specification
Approved by:
1) ISI
2) Director General of Mines & Safety
3) Lloyds register of shipping
4) American of shipping
5) American petroleum Institute
6) Director General of supplies & Disposal
7) Det Morsk varities
As UML is ushering in an era of total quality management, it has adopted a strategy to import ,”Total Quality Management” to its people.
UML has established a wide export base over the years, today the company exports 60% (approximately) of its product over 46 countries around the world.
BANKERS OF ORGANISATION
1) Canara bank
2) Allahabad Bank
3) State Bank of India
4) United Commercial Bank
5) The Bank of Tokyo Ltd.
6) American Express Bank
7) Hong Kong & Shanghai Bank Corp. Ltd.
8) Bank of India
9) Banpue de Paris
BACKGROUNDOF
THE COMPANY
----- Usha Martin is a multi unit, multi product, and diversified engineering conglomerate with ten manufacturing units in India and one in Thailand.
----- Its product include - alloy steel, Wire Ropes, Wires, Jelly filled telecommunication cables, Special purpose machines, Ropeways, Material handling systems equipment accessories industrial Telecom services and software development.
-----The group turnover is around 1266 corers and for the Usha Martin Limited (Wire & Wire Rope Division) are around 330 corers.
-----The group is also serving through a daily newspaper "Prabhat Khaber" Krishi Gram Vikas Kendra, Usha Scientific Research Institute, Usha Martin Technical Institute, and Usha Martin Learning Center.
-----The Usha Martin Group has offices and business concern in Thailand, USA, UK, South Africa, Denmark and Middle East.
PRESENT SCENARIO
At present, the group has three principal manufacturing divisions of Wire & Wire Rope, Steel and Cables.
Wire and Wire Rope Division
The ISO 9001-certified 100,000 MT / annum manufacturing facilities at Ranch! (Eastern India) are amongst the top four wire rope producers 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.
Steel Division
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.
Apart from these, the Group has three other divisions.
Machinery Division
This ISO 9001 unit located at Bangalore was set up in 1974 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.
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, and 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.
Cables Division Under UM Cables (A Subsidiary of Usha Martin Ltd)
The Cable Division of Usha Martin Limited has emerged as a leading manufacturer of jelly-filled underground telecommunication cables in India. The sophisticated manufacturing facilities, which went on stream in 1988, are located in a 24 acre complex at Tatisilwai, near Ranchi in the state of Jharkhand in India. The company integrates technology from KABEL RHEYDT (formerly AEG KABLE), GERMANY, a member of Alcatel Group - is rated as one of the most efficient plants in the country and a benchmark in the industry. The 6.5 Mn Conductor Kilometer Plant includes computer - controlled critical equipments, imported from International Leaders in cable technology. State-of-the-art equipments combined with technical expertise produce International Quality Jelly Filled Telecommunication Cables.
UML NATIONAIONAL AND INTERNATIONAL COMPETITORS
SL. NO. NAME OF THE COMPETETOR CAPACITY1 FORT WILLIAM, KOLKATA 18000TPA2 BOMBAY WIRE ROPE, MUMBAI 21500 TPA3 BHATAT WIRE ROPES, MUMBA 20400TPA4 MOHATTA&HACKELS LTD. MUMBAI 18000TPA5 SOUTH INDIA WIRE ROPE, KERLA 18000TPA6 MICKEY ROPE, RANCHI 7 JCT, HOSHIARPUR8 ASIAN WIRE ROPE, HYDERABAD 9 ORIENT WIRE ROPE, INDORE 345000TP410 UNTED WIRE ROPE, MUMBAI11 SHARE WIRE ROPE, MUMBAI
INTERNATIONAL COMPETITOR
KIS WIRE, KOREA
FEDGER.SWIZERLAND
Al STR1ADRAUGHT, AUSTRIA
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.
Social Commitment
USHA MARTIN Group's SOCIAL Commitment through KRISHI GRAM VIKAS KENDRA.
MANAGEMENT COMMITEMENT AND SUPPORT SINCE 1977 "IN EVERY VILLAGE WHERE HUNGER PERSISTS. HUMAN BEING MUST BEEMPOWERED TO DISCOVER THEIR OWN VISION EXPRESS THEIR OWN LEADERSHIP. CREATE THEIR OWN SOLUTIONS AND WORK. TOGETHER TO ACHIEVE THEIR OWN SUCCESS"
KGVK Activities• 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 "SWASHAKTI11 PROGRAMME
KGVK Projects
IN PARTNERSHIP WITH GRASS ROOT CIVIC SOCIETY, CORPORATE AND GOVERNMENT
• INDIA CANADA ENVIRONMENT FACILITY (ICEF) PROJECT - FOR WATER RESOURCES CONSERVATION & CONJUNCTIVE UTILISATION FOR 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 CR)
• 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 GOVT OF INDIA FOR WATER SHED, WOMEN EMPOWERMENT, EDUCATION etc.
• TOTAL PROJECTS WORTH Rs. 18 CR IN HAND.
Group Companies
Manufacturing
Usha Siam Steel Industries Public Company Limited, Thailand (TJSSIL)
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 KAZAKHSTAN 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 All 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 35000 RKM respectively.
Information Technology
Usha Communications Technology Usha Communications Technology is a high end telecom software products company and offers a range of solutions that cover the needs of the next generation communications providers, both emerging and established.
Usha Martin Info tech Ltd
USOFT has been set up to focus on software aplication development and consultancy for telecom technologies. It will work on emerging technologies such as WAP, Symbian and BG.The development centre is at Gurgaon, near New Delhi.
UACT (Usha Martin Academy of Communications Technology)
UACT has been set up at Chennai in association with TeNet of IIT Chennai. It aims to emerge as a training and educational institution in the field of telecommunications, Information Technology and technology management.
Distribution Centers
Usha Martin International Limited
Established in 1997 in UK, it is formed to facilitate distribution and marketing of the group's wire and wire rope products to international market. The company has 5 branch offices/distribution company located at Glasgow, Houston, Johannesburg, Copenhagen and Dubai.
Usha Martin Singapore Pte Limited
This is a 100% subsidiary of usha Martin Limited. Established in 2000, with an objective of distributions of Wire & Wire rope promotes of the group in South East Asia.
Services
Usha Breco Limited
Established in 1969, Usha Breco Ltd. a joint venture between Usha Martin Industries and British Ropeway Engineering Co. UK, is today South East Asia's leading Ropeway Project Engineering Company.
Usha Martin Ventures Limited Venture Capital Division
This acts as a venture investor for expansion stage to consolidation stage equity financing in sound and promising IT / Telecom / E-Commerce / Media / Bio - Technology ventures.
Usha ISMAL Limited
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 Established in 1969, Usha Breco Ltd. a joint venture between Usha Martin Industries and British Ropeway Engineering Co. UK, is today South East Asia's leading Ropeway Project Engineering Company.
SOURCES OF THE RAW MATERIAL
Raw Materials
Steel wire rod (90to96%) : UML, TATANAGER
Steel Wire Rod (4 - 10%) : Imported From Germany
Fiber Core : M/S Chhotanagpur Wire Rope, Arrah
Other Raw Material : M/S Hindustan zinc & Other Supplies 25% and balance is imported.
OBJECTIVE
The objective of the research is to
1) To study & evaluate the Supply Chain Macro Processes.
2) To find out the target market and consumer satisfaction by the help of marketing mix strategies in the national and international market. The reason would be related to the organizational logistic process instrumental in the smooth transportation and improved UML profit.
The Supply Chain Macro Processes
The emergence of supply chain management has broadened the scope across which company's makes decisions. The scope has expanded from trying to optimize performance across the division, to the enterprise & now to the entire supply chain. This broadening of scope emphasizes the importance of including processes all along the supply chain when making decisions.
From an enterprise's perspective, all processes within its supply chain can be categorized into three broad areas; processes focused downstream; processes focused internally & processes focused upstream.We use this classification to define the three macro supply chain processes as follows.
a) Customer Relationship Management (CRM): Processes that focus on downstream interactions between the enterprise & its customers.
b) Internal Supply Chain Management (ISCM): Processes that focus on internal operations within the enterprise.
c) Supplier Relationship Management (SRM): Processes that focus on upstream interactions between the enterprise & its suppliers.
Why focus on the Macro Processes
As the performance of an enterprise becomes more closely linked to the performance of its supply chain, it is crucial that firms focus on these macro processes. After decades of focusing
on internal processes, a firm must expand the scope beyond internal processes & look at the entire supply chain to achieve breakthrough performance. The goal should be increasing the total profitability of the supply chain.
Good supply chain management is not a zero sum game where one stage of the supply chain increases profit at the expense of other; instead it is a positive sum game where supply chain partners can increase their overall level of profitability by working together.
Therefore, to increase the supply chain surplus most effectively the firm must expand their scope beyond their enterprise & thinks in terms of all these three macro processes.
Customer Relationship Management (CRM)
The CRM macro process consists of processes that take place between an enterprise & its customers downstream in the supply chain. The goal of the CRM macro process is to generate customer demand & facilitate transmission & tracking of orders. Weakness in this process results in demand being lost & a poor customer experience because orders are not processed & executed effectively. The key processes under CPM are as follows:
a) Marketing: Marketing processes involves decisions regarding which customer to target, how to target customers, and what products to offer, how to price products, & how to manage the actual campaign targeting customers. Successful software vendors in the marketing area within CRM provide analytics that improve the marketing decisions on pricing, product profitability & customer profitability among other functions
b) Sell: The sell process focuses on making an actual sale to a customer (compared to marketing where processes are more focused on planning who to sell to & what to sell) The sell process includes providing the sales force the information they need to make a sale & them executing the actual sale. Executing the sale may require the sales force (or the customer) build & configure orders by choosing among a variety of orders & features. The sell process also requires such functionality as the ability to quote due dates & access information related to a customer order.
c) Order management: The process of managing customer's orders as they flow through enterprises important for the customer to track his orders and the enterprise to plan & execute order fulfillment. This process ties together demand from the customer with the supply from the enterprise. Order management software's available earlier were handled by legacy systems or had been a part of an ERP system. Recently, new order management systems have emerged with additional functionality that enables visibility of orders across the often numerous order management systems that exists within a company.
d) Call Service center: A call/service center is often the primary point of contact between a company & its customers. A call/service center helps customers place order, suggest products, solves problems & provides information on order status.
The aforementioned CRM processes are crucial to the supply chain as they cover a vast amount of interactions between an enterprise & its customers. The customers must be the starting point when trying to increase the supply chain surplus because all demand, and therefore revenue, ultimately arises from them. Thus the CRM macro process is the starting point when improving supply chain performance.
Internal Supply Chain Management (ISCM)
ISCM is focused on operations internal to the enterprise. ISCM includes all processes, involved in planning for & fulfilling a customer order. The various processes included in ISCM are as follows:
a) Strategic Planning: the goal of this process is to plan resource availability in the supply chain network .The decisions may include where to locate plants & warehouses, what type of facilities to build, and what markets to serve from each facility. Although these decisions are made less frequently, yet the impact on supply chain performance can be quite large & is felt potentially for years.
b) Demand Planning: this set of process involves forecasting future demand. It also includes decisions to manage demand, such as promotions planning.
c) Supply Planning: the supply planning process takes as an input the demand forecasts produced by demand planning & the resources made available by the strategic planning, & then produces an optimal plan to meet this demand. Factory Planning & inventory planning capabilities are typically provided by supply planning software.
d) Fulfillment: Once a plan is in place to supply the demand, it must be executed. The fulfillment process links each order to a specific supply source & means of transportation.
e) Field Service: Finally after the product has been delivered to the customer, it eventually must be serviced. Service processes focus on setting inventory levels for spare parts as well as scheduling service calls.
Given that the ISCM macro process aims to fulfill demand that is generated by the CRM macro processes. When forecasting demand, interaction with CRM is essential as the CRM applications are touching the customer & have the most data & insight on customer behavior. Similarly, the ISCM processes should have a strong integration with the SRM macro process. Supply planning, fulfillment, & field service are all dependent on supplier & therefore the SRM macro processes.
Supplier Relation management (SRM)
SRM includes those processes focused on the interaction between the enterprise & suppliers that are upstream in the supply chain. There is a very natural fit-between SRM processes as integrating supplier constraints are crucial when creating internal plans. The major SRM processes are as follows:
a) Design Collaboration: The goal of this process is to improve the design of products through ideas as the joint selection (with suppliers) of components that have positive supply chain characteristics such as ease of manufacturability or commonality across several end products. Other design collaboration activities include the sharing of engineering change orders between manufacturers & its suppliers. This eliminates the costly delays that occur when several suppliers are concurrently designing components for the manufacturer's product. Good collaboration at this stage can create huge value because 80% of product cost is determined at design stage.
b) Source: the source process qualifies suppliers & helps in supplier selection, contract management,& supplier evaluation. A key goal is to analyze the amount that an enterprise spends with each supplier, often revealing valuable trends or areas of
improvements. Suppliers are evaluated along several key criteria including lead time, reliability, quality & price. This evaluation helps improve supplier performance & aids in supplier selection. Contract management is also an important part of sourcing as many suppliers have complex details that must be tracked (such as price reductions for reaching certain volume customers)
c) Negotiating: Negotiations with suppliers involve many steps starting with a request for quote (RFQ). The negotiation process may also include the design & execution of auctions, the goal of this process is to negotiate an effective contract that specifies price & delivery parameters for a supplier in a way that best matches the enterprise needs.
d) Buy: The buy process executes the actual procurement of materials from suppliers. This includes the creation, management, & approval of purchase orders.
e) Supply Collaborations: Once an agreement for supply is established between the enterprise & a supplier, supply chain performances can be improved by collaborating on forecasts, production plans, & inventory levels. The goal of collaboration is to ensure a common plan across the supply chain.Saanifkant improvement in supply chain performance can be achieved if SRM processes are well integrated with appropriate CRM & ISCM processes. The theme of integrating in three macro processes is crucial for improving the supply chain performance.
MARKETING
Marketing management is the practical application of marketing techniques. It is the analysis, planning, implementation and control of programs designed to create, build and maintain manually beneficial exchanges with target market. The marketing manager has the task of influencing level, timing and composition of demand in the way that it will achieve organizational objectives.Marketing is typically seen as the task of creating, promoting, delivering goods and serving services to consumers and business. Marketers are skilled in stimulating demand for a company's product, but this is too limited view of the task marketers performs. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management.UML follows the industrial marketing. Industrial markets deal with products (goods and services) for the business market. The business buyer will use up the product to help it make new products. Industrial markets (which include capital markets) are the consumer markets of the business world.
MARKETING CONCEPT OF UML
The marketing concept is a management orientation that holds that the key task of the organization is to determine the need and want of target markets and to adopt the organization to delivering the desired satisfaction more effectively and efficiently than its competitors.The marketing concept is a management philosophy or ethos which purposes that an organization should strive to satisfy the needs and requirements of the consumers through a coordinated set of activities, insuring also the accomplishment of organizational objectives in the process.
UML follows the three marketing concepts:
1) CUSTOMER ORIENTATION; UML holds the marketing concepts that 'customer is king' and 'marketing begins with customer and end with customer'.
2) INTEGRATED MARKETING EFFORT; UML follows integrated management action which means that all the managerial functions must be rightly integrated with one another, keeping marketing as the focal point.
3) GOAL ACHIEVEMENT; The over all philosophy of the UML is goal achievement and obtaining profitable sales.
STRATEGIES FOLLOWED AT UML IN THE FIELD OF MARKETING
By preparing statements of MISSION, POLICY, STRATEGY and GOALS, headquarters establishes the framework within which the division and business unit prepare their plans unit to set their own sales and profit goals and strategies .Other set goals for the business units but let them development their own strategies. Still others set goals and participate in developing individuals business strategies.
ALL CORPORATE HEAD QUARTERS UNDERTAKE FOUR PLANNING STRATEGIES:
DEFINING THE CORPORATE MISSION ESTABLISING STRATEGIC BUSINESS UNIT ASSIGINING RESOURCES TO EACH SBU PLANING NEW BUSINESS, DOWNSIZING, OR TERMINATING
OLDER BUSINESS.
The marketing manager is the most significant contribution to the strategic planning process, with the leadership roles in
defining the business mission, analysis of the environment, competitive and quality plans to implement the business strategies. This involvement extends to the development plans and operating plans that are fully linked with the strategies plan. The marketing plans are basically concerned on very four important organization levels.
. CORPORATION LEVELS . DIVISION LEVEL . BUSINESS UNIT . PRODUCT LEVEL
THE MARKETING PLANS AT UML OPERATION TWO LEVEL
STRATEGIC TACTICAL
THE STRATIGIC MARKETING PLANS LAY OUT THE FOLLOWING
TARGET MARKETS VALUE PROPOSITION
The above mentioned are offered based on an analysis of the best market analysis of the best market opportunity.
THE TACTICAL MARKET PLAN INVOLVES THE FOLLOWING:
MARKETING TACTIC PRODUCT FEATURE PROMOTION MERCHANDISING PRICING SALES CHANNEL SERVICES
The marketing plan is the central instrument for directing and coordinating the marketing effort. Today the marketing department does not set the marketing plan by it self, teams with inputs and sign the offers from very important function. The plans are implemented at the appropriate levels of the organization results are monitored and corrective action is Taken when necessary. The complete planning and implementation and control cycle is attached hear in report later.
STRATERGIC - PLANING, IMPLEMENTATION AND CONTROL PROCESS
CORPORATE
DIVISION
BUSINESS
PRODUCT
ORGANISATION
IMPLEMENTATION
RESULT
MEASURING
DIAGONISIS
CORRECTIVENESS
PLANNING IMPLEMENTING CONTROLING
SOURCES OF INFORMATION
1) PRIMARY DATA Nature: Fact, Knowledge Opinion: Descriptive
Source: Communication ApproachMarketing, production Questioning, interviewPlanning, Sales, Store, Purchase departments.
2) SECONDARY DATA Nature: Internal, quantitative, Periodic.
Source List of data
SALES Actual sales, target sales Dispatch, sale and domestic Sales & exports in total sales.
MARKETING Size of the market, number of Customers & competitors , pricing policy
STORE Type of inventories & ware Housing policy
PLANNING Order position, delivery period & failures
ANNUAL REPORT Sundry informationJournals, official document Survey Conducted by UML Invoice, consumer behaviour
MARKETING MIX STRATEGY OF UML
What is marketing mix?"Marketing mix 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.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 , like a puzzle ,has numerous pieces that must be appropriately combined for successful result .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.
Theoretical aspects of the study
To achieve the company desire, every organization develop it on marketing mix strategy .the marketing mix strategy depends on various decisions on the mix of marketing tool to use .These tools classified into five broad categories known as the 5 P of the marketing.
1) Product2) Price3) Promotion4) Place5) Packaging
PRODUCT
The changing paradigm of USHA MARTIN LTD. clearly shows its changing orientation towards the market place. In the beginning i.e. in 1960 it was product oriented then in mid 80's it become process oriented and now the company has become customer oriented.The company believes in the philosophy of producing quality product for the customer. This is the reason why companies specification provided by the customer production is done as per of the ordering information which contains specification, regarding
1) Size2) Construction3) Loading4) Lay direction5) Lubrication6) Core
7) Length8) Standard
1) Size: It is denoted by the nominal diameter by the rope is required to be manufactured .Usha Martin offers a wide range of production of rope, wire and standard of different diameter.ITEM DIAMETER RANGE(In mm) Rope 2 to 116mmWire .22to 28.00Standard M.20to 15.00
2) Construction: It is specified the number of strands in each rope wires in each wires in each strands .Generally construction i.e. expressed in X/Y whereX = no. of strands in a rope V = no. of wire in each strands
CONSTRUCTION NO.OF STRANDS NO.OF WIRE IN EACH
STRANDS6/7 6 76/19 6 196/36 6 367/7 7 7
3) Loading: It is done through galvanization in which a coil of Zinc is applied on the steel rod before wire drawing or on wire .It protects the wire/rod against corrosion and increase durability. Pope made of Zinc -coated wire is called galvanized rope. Now Usha martin also offer plastic coating in which plastic is applied on the rope to give it the additional life.
4) 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:-
a) Ordinary (Right handed ordinary/left handed ordinary): In this type wire strand and strand in a rope are twisted in opposite direction.
b) Langs (Left handed langs/Right handed Langs): In the wire in strand and strand in rope are twisted in same direction.
5) LUBRICATION: Usha Martin provides lubrication as well as un-lubricated products depending upon the end use of its product, 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:
a) Petrol based lubricants - used for general engineering ropes, elevator ropes and passenger rope and passenger rope ways.
b) Bit UML lubrication - these are used for products meant for fishing excavator and anchor mooring purpose.
6) 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 UNL takes related aspects right from the beginning of the manufacturing process.
a) Percentage of the carbon in wire rod.b) Temperaturec) Speed of machineGenerally UML offers its product with a tensile strength in 1/6 th ratio i.e. 6 times more as specified by customer.
7) CORE- UM products include rope with two type of core :
a) Fiber core - it can be made of any of the following three material- Jute- Sisal- Polypropylene
b) Steel core - it can be two type
- Wire strands core - it is single strand used as a core and is of same construction as that of other strands in a rope.- Independent wire rope core - it is an individual wire rope used as core in another wire rope.
8) LENGTH - UM offers its products as per the length required by the customer. Usually the length is expressed in term of meter/feet.
9) STANDARD - UML includes both national and international standards. The company emphasis on maintain global quality standards. It has been awarded ISO-9001 due to company emphasis on maintaining global quality standards.Apart from the above maintained specification UML also tries to add value to its product through
a) Qualityb) New productc) Guarantee
PRODUCT PORTFOLIO
WIRESBALL BEARING : BEARING INDUSTRYNEEDLE WIRE : NEEDLE INDUSTRYSREEL SPRING USE : SPERINGCYCLE SPOKE WIRE ; CYCLE INDUSTRYMOTOR SPOKE WIRE : MOTER INDUSTRYHIGH CARBON WIRE : VARIOUS USES
STEEPLE PIN WIRE : STAPLE WIRE
ROPE & WIREGUIDE ROPE AERIALLOCKED WIRE MINESAERIAL ROPE AERIAL ROPERYOIL DRILLING ROPE OIL EXPLORATION ROPEELEVETOR ROPE HOUSING, BRIDGEFISHING ROPE FISHINGEXCAVATOR ROPE : MINESCARGO LIFTING : DOCKYARD
PRICING
In comparison of the other wire rope manufacturing companies UML product are highly priced because UML got ISO- 9001 certification due to which leads high price .The pricing done by kolkata head office. Head office prepares the price list region wise and customer wise taking consideration of the product of region wise and customer wise taking into consideration of product of:a) Strand of the productb) Discountc) Credit term
d) Competitor's pricee) Channel and no. of dealers in each channel
1) C & F (Cost & Freight): Selling price include cost of goods and fright charges only, while insurance are supposed to be paid by the buyers himself.
2) ClF (Cost. Insurance& Freight): Selling price includes cost of the good insurance freight .In export of UML's selling price includes all expenses including delivery of good upon overseas vessels provided by the buyer. The recommended price list gets final approval by the company president, Marketing, JMD and MD for the future concern.
PROMOTION
The product in which UML deals constitute quality and safety conscious customer since UML has monopoly in the Indian market and that is because of it quality product. Camping as given by FMCG UML doesn't have any advertisement in television, media or in a print media. UML takes following activities as its promotion tools -
Participating in the trade fair Inviting the customer for in plant demo
Participating in regional activities i.e. UML is currently serving through Krishi Gram vikash Kendra
Providing up-to-date information about the company's performance through it website WWW.USHAMART1N.COM
UML also takes its offer sales service as promotional tool making a good rope for any customer.
UML takes sales promotion by providing allowances, guarantee, discount and credit to customer.
UML also takes personal serving as promotional campaign.
UML adopt the branding strategy. An image has to be created for acceptance by both customer and intermediaries
PLACE
UML takes niche marketing at its marketing strategies. It follows as systematic procedural steps in placing its product in a particular market or in building up a new customer.
Region wise major customerWestern region
Gnomon India Ltd, Mumbai Parekh and Sons , Bhavnagar
Fortuna Engg.indusries, Mumbai Premier mills and stores, Ahmedabad Jindal strips Oil and natural Commission, Ankleswer Mazgoan Dock, Mumbai Essar steels, Surat Great Eastern Shipping company, Mumbai Mukund Ltd., Kalwa ACC, Adilabad R eliance industries infrastructure ,Jamnanagar Nuclear Power Cooperation of India WCL
NORTHEN REGION . 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
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.Jamsedpur 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 K.V. Ratanam,Karnataka
PACKAGING
It is one of the important elements of marketing mix strategy .Packaging can not for designing covering of the product not only give it an appealing touch but also to make it free from any kind of damage of outside. A well designed package can create convenience and promotional values.Usha Martin is also trying to improve its packaging to give its product an aesthetic look. Earlier it was using colorless wheel for its product but now it is using blue colored wheel to symbolize cool and serene. At present UML provide its product three different packages:
1) Iron simple coil of wire/wire ropes with jute covering or plastic covering on it.2) Wire /Wire rope coiled around a wooden reel covered either plastic or jute. Wooden cover is also provided for specific product of customers.3) Wire/Wire rope coiled around an iron reel plastic or jute covering on it.
Material used for packaging
1) Polypropylene coated Hessian2) Crape paper3) Transparent adhesive tape4) Poly coated sheets5) Mango wood for domestic6) Pine wood for export ~7) Steel reels for specific customer8) Corrugated sheets
BENFITS OF UML BY MARKETING MIX CONCEPT
The marketing mix concept in UML gives the following advantages:
It provide a valuable framework for allocation financial and human resources
It helps to allocate responsibilities It facilities communication It help in goal achievement It promotes customer satisfaction It provide an analyze elasticity's
MARKETING MIX STRATEGIES
PROCESS FLOWCHART OF WIRE
WIRE RODE
PATENTING PICKLING PICKLING
DRAWING DRAWING DRAWING
PRODUCT SERVICES PRICE
SALES PROMOTION
ADVERTISEMENT
PUBLIC RELATION
DIRECT MAIL TELE MARKETING INTERNET
DISTRIBUTION CHANNEL
TARGET CUSTOMER
TRANSFER PATENTING
DRAWING
GALVANISING ROLLING TRANSFER PATINING ANNELING
TRANSFER DEAWING DEAWING
ANNEALING GALVANISING TRANSFER TRANSFER
TRANSFER TRANSFER
PROCESS FLOWCHART OF ROPE
WIRE ROD
PATENTING PICKLING
GALVINISING PERTAINING
DRAWING
DRAWING
STRANDING STANDING GALVINISING
CLOSING TRANSFER CLOSING
TRANSFER
PATENTING
GALVANISING DRAWING
DRAWING STRANDING
STRANDING
CLOSING
TRANSFER
LOGISTIC CONSTRANTS
OBJECTIVE
The broad objective of the study is to find out the reasons of the sales volume .The reason would be related to market logistic, which contain the study of distribution network.The study would reveal:a) Whether the logistic function are properly followed by UML or not.b) If not, then where the improvement are required.
c) Is the existing distribution channels sufficient with some modifications improvement or does it needs to be changed to do products well in the market and to increase the share volume.d) Is ERP system (BaaN software) is suited the logistic system.
Specific objective
The generalized objective can be translated in to specific objective.
• To study the function of logistic department of UML. • To study the distribution network. • To find out the lacunas in the functioning in the logistic
department. • To find out whether the present distribution network
need some changes. • • To study the consumer's behavior and to find out which
area need improvement. • To suggest corrective measures and identify the
optimum or best alternative.
MARKET LOGISTICS
The process of getting goods to customer has traditionally called physical distribution. Physical distribution starts as the factory .Managers try to choose a set of warehouse (stocking point) and transportation carries that will deliver.
It involves planning, implementing and controlling the physical flow of material and final goods point of origin of use to meet customer requirement.In the supply chain management, the logistics environment is constantly evolving as a result of changes in markets, competitor, suppliers, and technology. In order to develop or refine an enterprise strategy to match this changing environment, a systematic planning and design methodology is necessary to formally include the relevant consideration and effectively evaluate alternatives. In this work, we provide a general approach for distribution logistic planning.Modern logistic system studies consider business process identification and analysis the central point of their approaches. To study business process the very simply and well-known techniques, such as flow charts and data flow diagrams are the tools of common preference.It starts with the purchasing and transportation of products from the suppliers through buyers. The quantities to be purchased are estimated from the information provided by the stock managers and the back orders. The second process is concerned the storage of the goods which takes place in three sites (company's stores, the transportation department and the warehouses). These sites maintain the flow of goods to support the commercialization and the distribution of the products. The final process is related to the selling and distribution of products. This process is activated by the costumers' orders and h is carried out by the company fleet of trucks to distributor.
SUMMARY OF LOGISTIC ACTIVITY
COMMUNICATION
The main task of the UML that trade of Rope and Rope wire products. Figure shows the -- -iary logistic diagram of the business process. As we can see by the diagram of figure. •Jie flow of goods goes from the warehouses to the stores, and then from the stores to the customers. This part of the process increases very much the handling and transportation cost. The diagram helped us to identify a basic weakness of the business process: the -nnecessary transshipment of the goods. Certainly, it would be better to send the orders to the transportation department, and then it should distribute the goods direct to the customers.
The objective of modeling the distribution company supply chain with respect to the logistics aspects is to find the right balance between cutting costs and maintaining costumer responsiveness.In this way, the tasks that will be carried out are the following: identify, analyze and recommend the most cost-effective changes for warehousing and distribution of their goods.The approach we propose is to use a Supply Chain Simulation/Optimization model -SCSOM that will help to compare different planning and forecasting methods and to identify lower cost distribution policies. In the analysis phase of the modeling, the first step should be to understand the warehousing and distribution functions.The approach we propose is to use a Supply Chain Simulation/Optimization model -SCSOM that will help to compare different planning and forecasting methods and to identify lower cost distribution policies. In the analysis phase of the modeling, the first step should be to understand the warehousing and
Procurement inward transport
Supplier Operation Customer
Physical Distribution Outward TransportWare Housing Stock Control Material
handlingReceiving
distribution functions. Second, it would necessary to identify the key areas of cutting costs and customer responsiveness.The modeling, as per the proposed methodology of the project, will be based on object oriented language, with support fof simulation, together a business process modeling tool. The modeling of system objects will be represented as nodes and arcs in order to capture the behavior of various business functions and to model the movement of goods and information.
Definition of DSS Requirements (communication)
The desired functions and features for a Decision Support System in the context of logistics should include the analysis and evaluate capabilities. A desired feature list defines the data entry, manipulation, and reporting capabilities of the system. Below, we provide an extensive, although not necessarily exhaustive, list of features that should be considered for logistics DSS. Input from functional managers, information systems personnel, and experienced users should be obtained when defining requirements.
Functional Requirements 1. Data Entry. Can accept data from common spreadsheet and CIS packages.
2. Data Manipulation. Facilitates data manipulation to complete "what if" analysis.
3. Scope. Consider relevant logistics costs including inbound transportation, distribution center operations, and customer freight.
4. Search Algorithms. Includes algorithm or heuristics to search for and identify the optimum or best alternative.
5. Reporting. Includes graphical reporting and display capacity
Technical Requirements
1. Operating requirements. Consideration of the capability of the package with existing hardware, planned hardware, and system software.2. Design quality. Consider the overall software design and the resulting ease of software modification.
Object Oriented and agent based design techniques make the installation easier and flexible.
3. Documentation. Includes current, complete, and cross-referenced technical documentation to expedite modification and installation effort.
Decision Support Requirements
The software should be able to help the user in the decision questions such as follows:
- How should delivers be grouped into routes?- What is the best deliver sequence?- Which routes should be assigned to vehicles?- How will delivery time restriction be imposed?
Answers to the above questions are fundamental to attain the most important distribution logistics costs: Minimize the combination of vehicles, hours; distance requires delivering UML products.
DISTRIBUTION OF ROPE AND WIRE ROPEIN UML A PROFILE
Authorized Dealers
International Customer
Govt Departmant
Kolkatta Markt
Ranchi UML
Entered In Computer
Customer Code
Order no
JSR Import
Works
Packing ready
Loading
Relesing Final billing
H.O/Branch
In the content of marketing, logistic may be defined as the activities involved in the flow of goods as they move from producer to consumer or business users. Marketing logistics involve planning the infrastructure to meet the demand, then implementing and controlling the physical distribution flows of materials and final good from points of origin to points of use, to meet customer requirement at a profit. UML adopt the market logistics to lead the cost is given below: —
M=T+F W + VW + S, Where
M= total market-logistics cost of proposed system
T = total fright cost of proposed system
F W = total fixed warehouse cost of proposed system
VW = total variable warehouse costs of proposed system
S= total cost of lost sales due to average delivery under proposed system.
The major elements of market logistic in UML are:
Order Processing Ware Housing Inventory Transportation Information Monitoring Distribution System
1) Order Processing = In UML the order processing by the marketing department .To see the position work load delivering time inventory and production scheduling order and invoice shipment and receipt of the payment.In first stage the branch office & head office take the order by the national and international customer .The specification of the order is send by the branch office and head office .After the order UML see the time is available or not after this UML give the delivery time .After negotiation with customer UML gives the specific customer no. and order number. After this it is entered in the computer.When the customer number and order no. is entered in the information system the whole process is the Ranch! UML through this number.
To get the order UML adopt the Direct and Indirect communication media available to
Merchandise source and Reseller:
Merchandisesource
DIRECT FLOW INFORMATION MEDIA—Salesman visit the trade shows, factories, dealers, company, magazine, product specification, catalog, service manual.—Merchandise display at showroom and sales flower —Electronic linkage, Labels, Tags, Warranty cards.
INDIRECT FLOW INFORMATION MEDIA—Trade journals—Trade associalion publication—Personal contact with thirdparties at social and trademeeting,—Government publication andindividuals.—Marketing research agencies—Libraries of business univ.—Private investing agencies—Financial reporting agencies
Merchandise Reseller/Dealer
2) INFORMATION MOMTAT4NG: In the UML the distribution managers continually need up-to-date information about inventory, transportation and warehousing. For example, In respect of inventory, information about present stock position in each location future commitment and replenishment capabilities are continuously required, Similarly before choosing a carrier, information about the arability of various modes of transport, their cost, service and suitability for the particular product etc.is required .About warehousing .information with respect to space utilization work schedules .unit load performance. In order to receive all the information stated above, an efficient management information system would be of immense use in controlling costs, improving service and determining the overall effectiveness of distribution. In UML all the things are attached by ERP system (BAAN software) make the coordination in the whole department.
EPR SYSTEM
Whole UML group is connected through this ERP
Quality assurance department
Finance & AdministrationMarketing
Warehouse
Purchase
Distribution System
3) WARE HOUSING = Some warehouse of the UML is given below in the picture: —
Every company has store finished goods until they are sold, because production and consumption cycles rarely match. The storage function helps to smooth discrepancies
between production and quantities desired market. Ranchi UML follows Made-to-order strategy. So require little or no storage they shipped quickly to the customers. Generaly UML group has many warehouse is present in the different part of the country. Some warehouse is own and some are managed by the dealers. UML's self managed warehouses are located at kolkatta, Mumbai, Hydrabad, Chennei, Banglore, Delhi, Faridabad. According to the need of the customer, Ranchi UML dispatches the finished good different warehouse. According to the order these warehouse dispatch the finished good national and international market. To see the international customer UML create the warehouse near ports and every corner Of the country.
4) Inventory: The goal of the inventory control is to fill customers order promptly, and fluctuation in the inventories. Inventory size is determined by balancing cost and desired levels of customer.Inventory is the good of materials available for use by an organization. There are four categories of inventories. l)raw material and purchased component 2)work in progress i.e., incomplete goods or semi finished material 3) suppliers, such as paper, typing ribbon Rubricating oil ,cleaning material etc, and
5) fmished or final product.UML follow the ABC inventory control method. In UML contain two type of inventory;—1) Regular consume2) Occasional consumeRegular consume product is yearly reviewed by the organization for example Zinc. To see the consumption company forecast about the inventory.Occasional consume product is not reviewed by the organization and some product be taken just in time.
ABC inventory control method of UML
A type of inventory =It is the type of high class of inventory. Organization keeps 2 to 3 month stock.
B type of inventory =Low class of product .Organization keeps stock 6 month to 1 year stock.
C type of inventory =This type of inventory planned for 1 year. This type of inventory include stationary and workshop use product.
5) Transportation transportation seeks to move good from point of production and sales to point of consumption in quantities required at time needed and at a responsible cost. The transportation system adds the time and place utilities economic value.The design and implementation of a DSS for transportation logistics is a challenge. UML's BAAN software packages to support fleet managers in the scheduling and routing of vehicles.To achieve these goal UML adopt two type of transportation system—1) Road transport2) Water transport
Road transport = UML use the contract carries. These operators transport enter rather formal arrangement to transport goods for selected customer, whish is usually for definite period of time.Truck is the main vehicle used for road. Now variety of LCV's, auto carriers and articulated trucks are used.
Water transport =In UML amount of good are moved in the international market. So it takes the help of the water transport. Through trucks finished goods reach the warehouse, after this it is transported by the cargo. The cost of the water transport is very low for shipping. The UML use the Kolkata /Haldia sometime Mumbai port according to the need of the customer.
DISTRIBUTION NETWORK OF UML RANCHI
PROCEDURE FOR PROCESSING OF ORDERS
WORK FLOW CHART IN THE SELLES CO-ORDINATION DEPARTMENT
PAPER FLOW
GLOBLE AND DOMESTIC DISTRIBUTION STRATEGY GLOBLE DISTRIBUTION
STRATEGY
The company has targeted the value added market. A large number of distribution centers were subsequent converted into value changing service centers were adequately stocked to provide just in delivery to customers. The distribution centers in Huston (USA), Copenhagen (Denmark) Aberdeen, Birmingham, Rotterdam (UK), Johannesburg (S.Africa).A tie-up in Dubai & Singapore has been done to increase product accessibility in the global market. UML group's ware house is present near the ports, it help global distribution system
GLOBLE COMPETIVENESS
For global competitiveness, on the marketing front, the opening of the global distribution centers is expected to enhance the company's reach. The company has developed a multinational sales force, which understands the local business environment well. The build up the distribution network. The stocking point in likely to increase the synergies in the global market.
DOMESTIC DISTRIBUTER STRATEGY
Rigging shops has been established to increase value adding turnover. This installation of cutting & coiling machine bears the end users markets has reduced inventories of the customers end & help them ship to the just in time (JIT) inventory system. The company has adopted innovative marketing methods to face marketing challenges. Direct marketing .promotion of the brand awareness, creating marketing mix strategy help to promote the product in national and international market .Warehouse is present inthe different part of the country .By this way these ware house help to increase the domestic market.
Production and Dispatch of Export and Home (year06-07)
CHANGES BROUGHT & PLANED BY UML TO IMPROVE THEDISTRIBUTION NETWORK
1) Demand of elevators rope has been increased in metro cities as well as developed cities due to multistoried building culture so the company is planning to increase ware house in these cities.
2) Due to increase in the demand of auto spoke wire, the auto industry has forced the company (UML) to explore the market possibility for this type of product.
3) The company is Exploring market possibility in overseas like japan, Singapore, S. korea, etc to get customer over therefore that the Co. is needed to open the warehouse there.
4) Seasonal product like fishing rope needs to keep in the costal warehouse so that the customer gets well in time.
5) In Dubai the fisherman are using the wire cage to catch fishes, so the Co. should meet the international customers & the domestic customer for this regard.6) Customer service is badly required in the recent time, so the Co. want to open the region wise TSD for attending complained promptly
7) Transporter contract has been reviewed time to time and the contracts are being given reliable transporters who deliver the good on time. For making the export more effective through water ways, Haldia port has been opened for shipment since year 2000.
CAUSES AFFECTED THE DISRIBUTEN CHANNELS WHICH RESULTS INTHE DELIVERY FAILURE/LATE
1) Late promotion of works order getting final purchase order from the customer by H.O (Kolkata) cause a chain delay in the production process. It finally affects the distribution channels.
2) Although works order reaches timely at works, production of material sometime fails due to some unavoidable circumstances like machine breakdown &unavailability of raw materials and other resources.
3) Delay in arrangement of containers for final shipment causes delay in dispatch from works, and finally could not reach at Kolkata or Haldia port.
4) Commercial formalities /red tapism at the check post between works to port sometimes leads to delivery failure. It generally happens due to some missing information in shipping documents or incomplete document.
5) Late submission of final shipping document like AR-4, shipping bill invoice packing, etc at the bank causes delay in delivery to the customer. Something delay take place in the custom office for clearing document.
6) Unavailability of ships on time also causes delivery failure, this happened due to lake of better co-ordination with shipping line
7) Inadequate stock at overseas (warehouse) distribution centers also affects the timely delivery.
8) Absence of the consignments sales agents in overseas also affect the distribution channel.
ANALYSIS AND INTERPRATION
USHA MARTIN LIMITED assess the logistic function, which help the raw material which is purchased and then it is planned accordingly for the production and when the production of finished good is kept in the stock go down from there it is dispatched according to the demand of the customer through the efficient distribution channels to the destination of warehouse accordingly.
From Purchase Department;
Purchase department deals with the purchase of raw materials like wire rod and lubricants (from JSR), chemical from Mumbai, Propane gas from GILO, Zinc lead from Kolkata.In this department relivent information are incorporated in the purchase order so that the product supplied by the sub-contractors, meet desired quality requirements. The product is reviewed and approved by management representative and issued by head quality system. The responsibility of implementing and maintaining the procedural steps of this procedure rests with in charge of purchase department.
From Planning Department
Planning department deals with the allocation of the work according to product. Planning department review the purchase order .After receiving it becomes the purchase order. It includes all the necessary detail regarding product and also the address of the consignee. On the basis of this W.P.S (work plan schedule) is prepared plan horizon of UML is 15 days W.P.S includes schedules of each and every day .That is from the day dispatching of the product.Sometime advance planning is made for the product, which is always in demand (for e.g. fishing rope)
From Production Department
The main manufacturing plants that UML contains are wire, strand and rope. It wire and ropes are used for Various
purpose .For e.g. fishing rope engineering rope etc.UML is specialists of LCWR ropes, which is mainly used ,in mining industries .UML ropes have to go through a tensile strength test before dispatching.From Transportation Department
For dispatching process UML depends on road transport .UML receives application from the interested transports. All the transporters have to undergo with a procedure for approval expect those who are nominated by the customers. Different methods of procedures are:
a. Past performance method.b. New transporter selection method.c. Reference method.d. If any transporter having ISO 9000 credition.
There is a "transporters approval committee to keep an eye on their performance. They also issue warnings to them whose performances are not found satisfactory.
SWOT Analysis
SWOT ANALYSIS
The overall evolution of a company's strength, weakness, opportunities, and threat is called SWOT analysis. UML's SWOT analysis is given below.
STRENTH
> UML ranked under No2 in world and in India No.l Company in manufacturing of the wire rope.
> Market share is strong.
> Large distribution network
> Dealers, Branch offices, Ware house is connected with internet in all over the India.
> UML has become brand equity in this field, customer first choice by UML.
> Its product is world class in quality; it is tested by several authorities.
> The company acquired BRUNT SHAW LTD.A leading U.K wire rope manufactures, to source logically advanced rope and access the European market.
> UMI has very good infrastructure and work force.
> Healthy financial position
> Raw material available as it is produced by sister concern.
> UML has implemented TPM (Total productive management) and ERP (Enterprise recourse planning) in 2000 - 01 with the objective, raising quality and reducing cost.
WEAKNESS
> Machines and tools have become old and obsolete.
> UML has overlooked small customers.
> Highly bureaucrat
> Semi-automatic plant
> Inadequate expenditure of R&D
> Non effective advertising image
> High production cost
> Less enterprising company
> Demand of elevator ropes has increased due to global infrastructure development.
Opportunity
> Fishing is developing in the southern costal cities.
> Mushrooming of apartment in India and abroad
> UMI can increase its profit if it gives more emphasis on direct marketing with the customer.
> Now present condition RELIANCE has found crud oil reserve in Krishana Godavari basin in south. New opportunities present for the UMI to produce rope.
> UML can develop device for measuring breaking load
> (100 tones testing machine)
> Competitors are not much strong in the secondary market.
THREAT
> Low price of the rival's product are a great threat for the UML.Government always changes its policy, which bring the great threat the organization.European country imposed an antidumping duty in the company wire rope production.
> High cost production.
> Local political instability.
FINDINGS
FINDINGS
PRODUCT RELATED
UML products are well tested and inspected by the world class testing authorities like (ABS,LOYDS,IRS,ONGC,DGS,CMPIDL,MECON and GRIFT)
UML's product (LCWR) has good demand in the market.
Nearly all the major orders are placed with UML due to product performance & record.
As the entire product certified, customer has full confidence in placing order with UML. UML cover the services of the product time to time.
Complete R&D for the product &insisting products are done itself in the company. R&D centers, so that the UML can upgrade the quality.
OTIS, ABS, ISI and so many authorities who visit the company time to time to audit the quality related aspects of UML.
PRICE RELATED
Overheads are quite high compared to the other companies or rivals but it is solely due to its size & volume.
From the customer point of view we felt that due to high cost of UML products, it looses certain prospective customer.
PLACE RELATED
UML is located in the eastern region of the country which has become the point of concern for its domestic customer although it has five ware houses covering all zones, the timely delivery is crucial.
All the branches & dealers of UML in India are connected with internet.
All of the branches are situated in areas which have good communication facilities, whether in roads, rails or water.
Its own division situated in Jamshedpur & Bangalore respectively supplies raw materials & heavy equipment & machinery.
From geographical point of view UML plant in Ranchi is well positioned but there are certain problems like frequent bands & strikes etc. & of course lack of good infrastructure facilities.
PROMOTION RELATED
UML promotional strategies such as participating in trade fares are not enough to create awareness for the customers.
The after sale service of UML is well appreciated because it aims at making relationship with customers.
It generally sends its representative to its customers to lesson the complications & complains.
The frequency of the seminars and industrial interference less so UML conducts meetings with its dealers & distributors. Even we felt that the companies cum web portals is not updated & upgraded time to time.
PACKAGING RELATED
UML is at par with current packaging bends.
UML uses new age labeling & tags for there products making its products more attractive & reveal the world class quality.
The iron reds are used mostly these days. They are well painted to give it a nice aesthetic look.
Bar coded tags are used for the identification for the different products.
Recommendations to maintain the leadership position in both domestic and
international market:
A) ALL THE PRICING FACTOR;
Consumers want the price of UML products to be reasonable but this factor has proved to be the main hindrance and had resulted in getting low work order from the regional and national market.The prices of the UML's steel wire and ropes is higher than those of other manufacturer at the national level and due to this it's major competitor "M/s Bombay Wire" in Mumbai has snatched a big portion of the market share of UML at the regional level.There are sizable proportions of dealers and customers who are ready to compromise on quality in order to expand their profit margin.Prices of UML products have risen up to 30-40% within a span of 2 years than that of its competitor's price. Customers who can compromise on quality are shifting towards other competitors due to this reason.Government organizations are also a major customer of UML products but in case of Govt. organizations orders are initiated on the tender basis. In regard to this sector also, UML received setback in past because the tender having the minimum rate quoting bags the work order. So the competitors of UML are gaining a large portion of the cake here.Even the dealers have also registered their complaint against the high pricing of the products as they have to sell their products at a very low profit margin in order to survive in this highly competitive market. So UML must rethink about its product's price.
B) THE QUALITY FACTOR:
The customers of UML expect a certain quality Standard which is the USP of its products, they expect products with zero defects. Though UML very strictly adheres to its quality commitments but still there are certain flaws which accompany its products. At times life span of the product also decreases due to stocking with poor or inferior quality of packaging stenciling material and so it does not lasts as long as it is expected to last.The positive future is that quality related problems have to reach on zero level to ensure the optimal performance of the product and customer satisfaction.
C) THE PACKAGING:
When I was talking to a dealer of UML at Jamshedpur they have some complains regarding the packaging of the product at UML.There were complains regarding loose and often inappropriate amount of lubrication.Wooden reels used in packaging sometimes contain moisture, which rusts the rope in due course of time.Loose winding and coiling is also present in the poor packaging system. UM1 should take smart packaging initiatives to save its reputation and product quality.
D) DELIVERY DEADLINE:
Keeping the delivery deadline commitment is of outmost important to maintain not only the goodwill of the company but also to avoid the zooming costs cause due to such unnecessary delay in delivery. It may also result in huge loss for UML.There have been trends of late delivery of its products to the customers in recent times as told by their dealers.
REASONS FOR THE LATE DELIVERY:
1. UML uses trucks and trailers for delivery of products which is slow and often at the whims of the transporters.
2. Bad conditions of the road also delay deliveries.
3. As UML is located in the eastern part of the country so it faces the major problem to cove the large customer base of southern and western part of India.
4. In case of exports, the nearest port is Kolkata which is about 300 KM away so it also causes transportation delay.
5. Most of the time materials are supplied to the customers and dealers through warehouses, so they demand it to be stocked adequately with each category of products. But the store houses are often not adequately stocked and so this result in delivery delays. The dealers and the customers start orienting towards the other manufacturers as they have to run their operation and maintain their profit margin at any cost.
6. Often there is alack of communication between the works and the sales department. Although sales is aware of the capacity of the plant, there is a lack of coordination between exports sale and domestic sale and each go about independently working on whatever feedback they have regarding the booking status.
7. Exports and domestic sales seldom sit and interact together to settle the priorities. The plant is often in a dilemma regarding simultaneous priorities in the same machine groups from both, exports and domestic sales.
8. Often the plant is unable to produce within the lead time as specified in the contract. In many cases, the production time is twice the lead time. There by resulting in untimely delivery of goods to the client.
E) THE COMPETITORS;
UML is facing a tough competition from its competitors:
Competition for UML has following three dimensions:
1. Competition from foreign companies in the high end for niche markets like LCWR and CRANE ropes.
2. Competition from numerous small domestic competitors in low end product market. Such as fishing and general engineering ropes.
3. Competition from organized domestic as well as foreign companies in mid end product market of elevator and mining rope.
UML has suffered in all there categories of product but the impact has been felt mostly in the low end products.It is facing the toughest competition from the domestic competitors, particularly small manufacturers who possess these characteristics:-
1. Very small production capacity.
2. Have low overheads and so the total production cost is very low.
3. Compromise with the quality to reduce with price.Recommendation at this front is to make move to acquire small manufacturers to prevent the market share erosion at both domestic and international front.
Recommendations regarding market expansion:
UML should make its move to untouched areas such as Northern America and Europe in product range like train rope, wires and ropes needed in infrastructural and mines development.
BIBLIOGRAPHY
KOTLER.P : MARKETING MANAGEMENT
COMPANY JOURNALS : ANNUAL REPORT
: USHA NEWS
NEWSPAPER : ECONOMICS TIMES
TIMES OF INDIA
PRABHAT KHABAR (local daily)
