Reinforcing brand identity & product superiority and facilitating ease of use of ferroalloys from Tata Steel through innovative product packaging, whose components include :
a) Brand Name that enhances Product Recall
b) Stylized Logotype to indicate product name integrated with a graphical representation of molten alloy to communicate product usage and generate instant buyer involvement.
c) Bagging solution incorporating security, traceability and “easy to use” features
d) Bright, bold & visible text ensuring availability of all needed information at place of use,
e) Innovative, neat, white HDPE bag with brightly coloured “happy” markings emotionally connecting with customer in the usually drab & grey industrial environment
Brand Identity of Alloys by Innovative Packaging - Design Honour
1. DST0011140107000 Design Honour - Touch
Brand Identity of Alloys by
Innovative Packaging
Reinforcing Brand Identity & Product Superiority and
facilitating ease of use of ferroalloys
by Innovative Product Packaging
Mr. Prabhash Gokar n Head, Raw Material Projects, Tata Steel
Ms. Sria Majumdar Manager, M&BD, FAM, Tata Steel
Mr. R Palit Head, M&BD, FAM, Tata Steel
Mr. Subodh Pandey COMS, FA&M, Tata Steel
Ms. Sumi Chaudhury Proprietor, Voyagers (Ad Agency)
4. 4
1. Ferroalloys and tradition 3
2. Unexpressed Customer Needs 4
3. Differentiation – a business need 5
4. Finding a Solution 6
5. Overcoming Several Hurdles 8
6. Communicating the Value Proposition 11
7. Success – going beyond original scope 16
8. Customer Feedback 18
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Presentation Structure
Slide
5. 5
Ferroalloys
• Ferroalloys used in steel making for
deoxidation & alloying
• Industrial Product, used in the heat &
dust of a steel melting shop floor
Traditional Packaging
Either sold loose or sold in gunny bags
with no/non-descript markings
Use the cheapest option available – after
all how does the packing matter – it is
only what is inside that counts!!
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Ferroalloys and Tradition
….. or is it ?
6. 6
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Unexpressed Customer Needs
Handling & Transport
• Difficulties in loading and unloading of ferroalloy bags
Spillage & Wastage
• Bags deteriorate over time – ferroalloys spill through the gaps
Non Descript Markings
• Difficulties in easy identification of grades; chances of a mix-
up; specially as most stores are not very well lit
Non Standard Weight
• Weighment on shop floor before alloying a standard practice
Enroute Pilferage & Contamination
• Difficult to prevent or detect
Sold in lot sizes of a truck load
• Need to maintain high inventory – a problem faced specially
by our smaller customers
7. 7
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Differentiation – a business need
Tata Steel : large player with aggressive growth plans
• Largest ferroalloy player in India, 4th largest Chrome alloy player
globally
• Implementing two projects to raise ferroalloy capacity from 350kT
today to 460 kT by FY17
Demand Slowdown – possible overcapacity
• Market prices moving in a narrow range
Need for differentiation
• Convey superiority of products in a competitive marketplace
• Capture the hearts and wallets of customers – build customer loyalty
and capture market premium
• Unexplored Market Opportunity in the SME segment
8. 8
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Finding a Solution
Market Needs Opportunity for Differentiation
Difficulty in handling bags during transport Superior Bags with handles
Enroute Pilferage and Contamination Distinctive tamper proof sealing
Mix-ups on the shop floor Bold visible markings on white bag
Lack of source authenticity Bag wise traceability solution
Bulk Sales – MOQ of one truck MOQ of a single bag
Varying weight packed in a bag Solution to enable exact weight
10. 10
2 Unitization / Packaging /
Sealing
Sealing
Exact Weight
• Tear proof bags and sealing solution
• Weighment systems installed at
plants
• SOP for training & training to
workers
Bagging
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Overcoming Several Hurdles
Bagging solution incorporating security, traceability and “easy to use” features
1 Changing the Bag
• High quality HDPE bags
• Strong bag with strong handles
facilitating movement & storage
• Colour Coded
• Bright, bold & visible text ensuring
availability of all needed information at
place of use
18. 18
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Success – going beyond original scope
Extended across all products
• Initially developed for SilicoManganese sales through
distribution to SMEs, today all ferroalloy products – FeCr,
FeMn, Cr Conc & SiMn sold across all markets in innovative
packaging solution.
Market place results
• Increased customer base – including strong distribution sales
to SMEs, increased customer loyalty & repeat purchase, lower
customer complaints with respect to shortages and
contamination
Partners Across Value Chain Happy
• Lower transportation rates offered by truck owners
• Logistics partners more willing to transport unitized product
due to ease of handling and lower losses due to security
features
• Job creation at our distribution partners for 3-4 people/distributor
19. 19
DST0011140107000 BrandIdentityofAlloysbyInnovativePackaging
Success – going beyond original scope
Increased Sales
• Increase in sales of ferroalloys & increased market
penetration(to SME segment).
• Sales of ferroalloys to SME segment that can be directly
attributed to this is 2,328MT in FY13 and 43,000 MT in FY14
(against plan of 27,000 MT).
Lower Losses
• Lower losses during transport due to unitization of ~0.5%
Increased Customer Connect
• Increased customer connect with SMEs leading to increased
professionalization
• Lower customer complaints – increased customer connect –
over 70% repeat sales.