Tata Steel Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Tata Steel through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Tata Steel Product Strategy:
Tata Steel products mainly consists of products manufactured by Indian operations and those by NatSteel Singapore and Thailand operations. It also consists of Corus products mainly manufactured at UK and Netherlands. All these Tata Steel products are a part of its marketing mix strategy.
Tata Steel Products: Finished and semi finished steel products viz. flat products(hot rolled, cold rolled and galvanized) and long products including wirerod and rebars. Ferroy alloy products consists of chrome ore, manganese ore and ferro chrome and ferro manganese. This shows the tremendous range and depth of Tata Steel products.
Corus Products: Strip product, Long product, Aluminium. Corus one of the market leaders in production of coated strip products in coil form and sheet form. Long products comprise of sections and plates. Thus, all these show a diverse product range of Tata Steel.
Image: geograph
This concludes the product strategy in Tata Steel marketing mix & strategy.
Tata Steel Price/Pricing Strategy:
Below is the pricing strategy in Tata Steel marketing mix strategy:
Tata Steel is a leading steel manufacturer not only in India, but in the world. In steel industries there are various factors that affect the pricing of the products.
Like other companies, the marketing mix pricing strategy of Tata Steel is also dependent on various factors. Some of the major factors are as follows:
1. Cost of production
2. Demand in the market
3. Government regulations
4. Competitions
Tata steel is well known for keeping its production cost very low. This gives Tata Steel a competitive advantage over others. There are various reasons as to why the companies production are so low compared to other competitors. Few of them are:
• Tata Steel acquires its raw materials and other products required both from the domestic market as well as globally. The company has coal mines in Jharia and Bokaro. The mines in Bokaro has reserves of around 196 million tonnes. It also owns iron ores and chromites mines in other parts of the country.
• Tata steel has used technologies which help them keep the production cost low thus helping it maintain the good quality as well as keep the price low.
The demand for steel has also increased in recent years. Also one more advantage of Tata Steel’s is that their iron ore reserves are much more than their current needs thus giving them an advantage.
Tata Steel has adapted Market Penetration as their pricing strategy. They assume that the demand of the product is highly elastic. So, capability of Tata Steel to maintain low price helps them maintain a huge customer base.
Read more about Tata Steel
Tata Steel Place & Distribution Strategy:
Following is the distribution strategy in the Tata Steel marketing mix:
Tata Steel maintains its distribution in Indian market via:
1. Direct supply chain
2. 21 stockyards
3. 25 agents for consignment
With growing use of information technology Tata Steel majorly distributes and sells its products through Junctions , being the countries largest e-commerce platform for steel. Such online transaction provides speedy processing and efficiency to the company. This shows the strong marketing mix place and distribution strategy of Tata Steel.
Also the steel junction owned by Tata has opened its branch in various parts of the country, both urban and semi urban areas. This has increased the distribution network of Tata Steel.
They had a wide network of distributors and retail outlet thus making the products easily available.
Tata Steel Promotion & Advertising Strategy:
The promotional and advertising strategy in the Tata Steel marketing mix is as follows:
Tata Steel is a business to business brand, and has no direct business with the consumer. In B2B Marketing, promotion and advertising plays an important role in order to increase the sales.
TATA steel started branding its product in order reach to customers in an efficient way. Its strategy mainly focussed on branding and moving to high value added products. Certain internal campaigns were started whose focus was customer. Some taglines such as “Customer first-haar haal mein” were started. Communication tools used for the Tata Steel brand launches were mainly print ads and outdoor advertising. TV commercials were launched giving messages of happy customers. Hence, this covers the marketing mix of Tata Steel.
About Tata Steel:
TATA Steel formerly known as TATA Iron and Steel Company (TISCO) Ltd, world’s sixth largest steel company. The capacity ranges upto 31MTPA.India’s second largest and second most profitable company based in Jamshedpur (9.7mtpa). Tata Steel also has established its present in global markets-Singapore, Thailand, Malaysia etc.
TATA Steel Europe has a crude steel production of 18 mtpa. The Vision is to be the world’s steel industry benchmark in Value creation and corporate citizenship.
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