Industrial Marketing

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case study: METAL PRODUCTS INDIA Ltd.

- Anindita Chaudhury
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A brief about the company:

Was set up in 1987 byits parent company Madhya Bharat Metal Sections Ltd., Bhilai (MBMSL). in Whitefeild,on the outskirts of Bangalore.

Located

was one of the leading manufacturers of mild steel used in construction, furnitures,rolling shutters , 4/28/12

MPIL

Market structure:
Market

for metal sections were highly regionalized. an around Bangalore there were four manufacturers; MPIL,KMS, Adarsh Metals and Mahavir Metal Sections. size estimated in 1998 in South India- 40000 metric tons(MT).

In

Total
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Distribution:

MPIL had tied up with existing dealers of MBMS MBMS had dealers at all important locations in South,except in Karnataka which had only one dealer- Bangalore Matal Traders (BMT). MPIL appointed new dealers at places like Vijaywada ,Calicut and Erode.

Dealers supplied to customers who were mainly 4/28/12 fabricators and small scale industries.

Contd..
To

support dealers ,MPIL had opened warehouses at Chennai, Coimbatore, Ernakulam, Hyderabad. sold directly to OEMs and Government customers. (added only 20% to their total sales).

Also

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Key concerns:
1.Price & discount: dealers prices were decided by manufactures(with discount) but dealers sold it at marked prices by 7-8%. 2.Informal agreement with BMT : sole dealership in Karnataka. 3. Aggressive strategy of new entrants (AM and MMS)
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Consequences:
Loss

of business volume for MPIL(2050 mt lifted by BMT in 1996-97 to 850mt in 1997-98) even 30% market share in Hubli ,Belgaum whereas new entrants captured more than 50%.

Not

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Strategy to recapture market share plan to implement it.

Action

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SWOT analysis:
Strengths: Established market with exclusive principles High quality Strong distribution network Threats:

Weakness: Sole dealer in Karnataka No control over prices. Non exploration of market

Opportunities: Explore new market Can position as superior quality producer of mild steel.

New entrants (AM and MMS) Loss of sub-dealers

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Strategy:

Sell directly to customers ( government, OEMs, fabricators, small scale industries)

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:Action plan:
strong

industrial marketing.

positioning as the producer of superior quality mild steel for a decade and still continuing.. Establishment CRM, maintaining detailed portfolio of customers.

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Contd..
Revamp

of the distribution network(specially for places like Karnataka and new markets like Mysore ,Bangalore, Hubly , Belgaum).i.e, building own distribution network for direct selling. BMT as a channel partner. of prices.

Include

Control
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THANK YOU!

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