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TRANSCRIPT
“REGULATION OF MARKETING ACTIVITIES THROUGH E-AUCTION IN BOKARO STEEL
PLANT”
BY : -
SANJAY KUMAR
SANJEEV BANKIRA
ROLL No.:-PGIB/04/39
STEEL AUTHORITY OF INDIA LIMITED
BOKARO STEEL PLANTA PROJECT REPORT ON
There’s A Little Bit of Sail In Everybody's Life
Largest company in India. Ranked 13th largest company in the world in
crude steel production. 2nd largest steel producing company in India.
NET SALES TURNOVER Rs 40,551 Crores.
PRODUCTION OF SALEABLE STEEL 11.714 million Metric Tonns.
SAIL AT PRESENT……..
1) PRIMARY PRODUCTS HOT ROLLED (HR) – COIL. HOT ROLLED (HR) – SHEET. HOT ROLLED (HR) – PLATE. GALVANISED PLANE (GP) - SHEET. GALVANISED PLANE (GP) – COIL.
2) SECONDARY PRODUCTS Def. CR-SHEET. Def. HR-COIL. COBBLE PLATE. Def. HR-PLATE. CR-BABY COIL. Def. HR-SHEET. Def. GP-SHEET.
BSL PRODUCT MIX
3) BY - PRODUCTS Benzene, Toulene. Anthracene. Naphthalene. Still Bottom Oil. Hot pressed Naphthalene. Ammonium Sulphate. Ferrous Sulphate.
Cont'd……
Process flow of E-Auction……
Advertisement of data/type of material
On SAIL website/newspaper
Posting of Lot details to be
Auctioned on SAIL/MJ website Pre auction
Inspection of Lots
By customers
INTRODUCTION TO TOPIC
Auction conducted on
metaljunction.com
Report of auction by During auction
Metal junction to BSL
DURING AUCTION……….
Reserve Price Opening
Committee Meeting
Recommendation and
Approval for Sale Post Auction
Issue of Offer
POST AUCTION…….
OBJECTIVE SETTING…
1) To find out the reasons for problem of E-Auction in Bokaro Steel Plant.
2) To know how E-Auction helping Bokaro Steel Plant to improve its selling mechanism & increasing its sales revenue.
3) To analyze the perception of potential customers of BSL towards E-Auction.
RESEARCH METHODOLOGY
1) Questionnaire. 2) Survey Method.
SAMPLE SIZE : - 15 SAMPLING UNIT : - BSL Customers.
SAMPLING METHOD : - Non Random Sampling (Quota Sampling)
METHODOLOGY ADOPTED
1) PRIMARY DATA COLLECTION
Primary data is collected from 15 major potential customers of Bokaro Steel Plant through questionnaire.
2) SECONDARY DATA COLLECTION
Secondary data is mainly collected from various concerned department heads through survey(personal interviews).
DATA COLLECTION………….
PRIMARY DATA ANALYSIS…….SOURCE : - 15 major potential customers of BSL.AREAS OF PROBLEM WITH RESPECT TO E-AUCTION
DATA ANALYSIS AND INTERPRETATION
PROBLEMS RESPONDED BY
Material cost payment clearing time is too short.
10
Delayed information about the new auction items.
7
No material lifting facility. 9
Rate of interest for extended payment clearing period is very high.
8
PROBLEMS /INCONVENIENCE RESPONDED BY
Complex documentation. 5
No in time stock maintenance.
4
Lack of awareness/knowledge about e-auction.
1
Stock damage problem. 2
CONT'D…………….
The above table shows that these are the major problems or inconvenience faced by the customers with respect to e-auction at Bokaro Steel Plant. Out of all the 15 major customers I interviewed these are the responses I got from them about the problem.
Majority of the customers (10) says that the material cost
payment clearing time is too short. Some have problem regarding the lack of their material lifting facility from the material site. Some customers say that the rate of interest for extended payment period is very high i.e. 24%, some said that they get delayed information about the new auctioned items and so on.
INTERPRETATION………….
PROBLEMS/INCONVENIENCES.
NO. OF CUSTOMERS
%DISSATISFACTION LEVEL
AVG DISSATISFACTION% LEVEL.
Dissatisfied
satisfied
Material cost payment clearing period.
10 5 67 % 34 %
Material lifting facility.
9 6 60 % 30 %
Rate of interest for extended period of cost payment.
8 7 53 % 26 %
Other factors. 3 12 20 % 10 %
CUSTOMER PROBLEM ANALYSIS…………
Since majority of the customers(34%) are dissatisfied or having inconveniences regarding the material cost payment clearing time. This problem occurs more frequently, Hence it needs immediate attention from the company in order retain its existing customers as well as to attract new customers.
INTERPRETATION…….
34%
30%
26%
10%
Avg. Dissatisfaction level
MATERIAL COST PAYMENT CLEARING TIME
MATERIAL LIFTING FACIL-ITY
SOURCE : - Concerned Dept. Heads Through Interviews.
BEFORE INTRODUCTION OF E-AUCTION(2004-2005)
SECONDARY DATA ANALYSIS
PRODUCT AVG QTY.(MT)
AVG PRICE.
(Rs PMT)
AVG SALES.(Rs)
Def CR-SHEET
84.66 28,460.33 24,09,451.53
Def HR-COIL 81.78 33,350.83 27,27,430.87
Def CR-BABY COIL
103.22 31,300.81 32,30,869.60
Def HR-PLATE 73.08 36,650.88 26,78,446.31
COBBLE PLATE
108.33 29,366.66 31,81,290.27
Def.C
R SHEET
Def.H
R-COIL
Def.C
R-BABY
COIL
Def.H
R-PLA
TE
Def.C
OBBLE
PLA
TE
0
1000000
2000000
3000000
Avg. Sales Revenue
Avg. Sales Revenue
INTERPRETATION……………
PRODUCT AVG QTY.(MT)
AVG PRICE.
(Rs PMT)
AVG SALES.(Rs)
Def.CR-SHEET
94.73 32,450.83 30,74,067.10
Def.HR-COIL 90.23 39,700.67 35,82,191.50
Def.CR-BABY COIL
110.22 35,700.89 39,34,927.90
Def.HR-PLATE 98.88 40,050.45 39,60,188.50
Def. COBBLE PLATE
112.34 36,550.82 41,06,119.10
AFTER INTRODUCTION OF E-AUCTION
Def.C
R-SHEET
Def.H
R-COIL
Def.C
R-BABY
COIL
.
Def.H
R-PLA
TE
Def.C
OBBLE
PLA
TE0
1000000
2000000
3000000
4000000
Avg. Sales Revenue Each Auction
Avg. Sales Revenue Each Auction
INTERPRETATION…….
INTERPRETATION…..
AVG SALES REVENUE : - 30% - 35%
AVG MATERIAL DISPATCH : - 10% - 15%
ANALYSIS………
Def.C
R-SHEET
Def.H
R-COIL
Def.C
R-BABY
COIL
Def.H
R-PLA
TE
Def.C
OBBLE
PLA
TE0
1500000
3000000
4500000
After E-AuctionBefore E-Auction.
According to the primary data analysis the major findings that came into highlight are listed below.
The time period alloted for paying the total cost for the material to the concerned customer is too short. i.e.7 days.
Potential customers gets late Information about the new auctioned items.
No material lifting facility available for the issued material to the customers.
FINDINGS…………
Rate of interest for extended payment clearing period is very high.i.e. (24 % pa)
Some customers finding the documentation process of e-auction a bit complex and time taking.
Once the material is issued, there is no sufficient stock maintenance till its lifting.
Few customers find that they are less awareness about e-auction.
Sometimes stock damage problem also arises.
Cont'd………….
After complete analysis of data, the main conclusion and recommendation thet can be made out are listed below.
The time period alloted for paying the total cost for the material should increase, atleast 5-7 days.
Rate of interest for extended cost of material payment period should come down to respectable level. i.e. 10-12 %.
Sufficient material lifting facility should be available to the customers at the rate of 0.5%-1% of the total cost of the material to maintain its extra occurring cost.
CONCLUSION AND RECOMMENDATION
There should be adequate stock maintenance of the issued material till its lifting by the concerned customer.
There should be easier and simpler documentation process of e-auction so as to hold several minor customers.
Extra focus should be given to the market makers and make them potential enough to tap the untapped market, which would finally result in market development and high turn-over.
Cont'd………..
THANK
YOU………