JSW SHOPPE-A UNIQUE

DISTRIBUTION MODEL FOR

BRANDED STEEL
Presented By
Group 10
Rijal Kadakia (23)
Samarth Sharma (53)
Shashi Dhar (117)
Swetapadma Mishra (138)
Neha Shugani (154)

INTRODUCTION
JSW Manufacturing plant producing steel pipes, bends and sockets
One of many low-cost steel producers in the world and favored bulk buyers
April 2007 : Location Marketing Headquarters in Mumbai
People Attended - Jayant Acharya (Director Marketing), Sharad
Mahendra (Vice-President) and marketing team
Agenda - How to boost the presence of Jindal Steel Works steel in
the
market
Result - Development of an organized retail format

COMPANY BACKGROUND
Founder OP Jindal established a manufacturing plant near
Kolkata
1952 Production of steel pipes, bends and sockets
Multi-billion dollar, multi-location and multi-product
business empire
2010 Manufacturing faculties across India, US and UK
Range of Products and services :
Mining iron ore
Manufacturing carbon and value-added steel
Cement
Power and industrial gas
Providing port facilities

COMPANY BACKGROUND
(contd.)

PR JINDAL

SAJJAN JINDAL

RATAN JINDAL

Jindal saw Ltd.

Jindal SAW USA, LLC
Hexa Securities &
Finance company Ltd.
IUP Jindal metal and
alloys limited.
S V Trading Limited.
Jindal ITF Ltd.

JSW Steel Ltd.

JSW Energy Ltd.
JSW Holding Ltd.
JSW Infrastructure &
Logistic Ltd.
Vijyanagar minerals Pvt. Ltd.
Jindal Praxair Oxygen
Company Ltd.
Jsoft Solution Ltd.
JSW Building System Ltd.

JSL Ltd.
PT Jindal Stainless
JSS Steelitalia Ltd.
Jindal Stainless Steelway
Ltd.
Austenitic Creations Private
Ltd.
Jindal City Infrastructure
Ltd.
Parivartan City
Infrastructure Ltd.

NAVEEN JINDAL

Jindal Steel & power

Ltd.
Jindal
Petroleum
Ltd.
Jindal Steel Bolivia
Jindal Cement Ltd.
Chhattisgarh Energy
Trading
company
Ltd.

COMPANY BACKGROUND
(contd.)

Steel perceived as a business-to-business product

Objective - To create a distinctive impression in the minds of end-users to ensure that
they knew about various applications of the different steel products manufactured by
JSW Steel so that its involvement in this category could be enhanced
Challenge - To brand the whole distribution channel and simultaneously increase the
visibility of the brand manifold

THE IDEA

Jindal had considered the idea of forming an organized retail chain

Eliminate the role of middlemen and directly reach end-user customers
Monitor the sales and performance of dealers, enable better logistics and supply chain
management and give a clearer understanding of consumer preferences
Main question was what kind of model should be adopted for such a project

THE IDEA (contd.)

Keeping the branding of Tata Steel and Essar Steel in mind Mahindra had two primary
decisions to make : should the company venture into retail on its own or
should it collaborate with the existing dealers?
Cost Analysis Conclusion - It would be extremely expensive for the company to
venture into retailing on its own
With 160 dealers he needed to choose a model that would be suitable to all kinds of
markets and could be easily replicated in all regions of the country

Dealer's perspective
Dealers were sceptical that company wanted to do away with
dealers in long run
Standardised materials provided (Companys response steel
service centres)
Growing interference in day-to-day affairs, also due to inclusion
of MIS
Forcing to sell all products and expand stock with new products
(Companys response need to maintain brand value therefore
uniformity across all shoppes)

Dealer selection and evaluation

Companys rationale
Strategically targeted new
generation dealers
Company claimed that
competing dealers also existed
earlier
Proposed to adopt balanced
scorecard evaluation criterion

Dealers perspective
No proper evaluation criterion
Allotting dealerships in close
proximity, which cannibalized
their sales
Sceptical about the very idea of
attracting end consumer

Road ahead way forward

Training initiatives:
1. On the job training - orientationtraining,job-instructiontraining, internships and
assistantships, job rotation etc.
2. Off the job training
3. Incentives for attending the training program for shoppe executives
4. 360 degree feedback for the dealers

Suggestions:
1. JSW need to make proper balance between dealer distribution supply and Shoppe
distribution supply.
2. JSW needs to implement a strong distribution network in growing cities.

3. JSW need to establish their branding most powerful and separated for effective
supply chain management