PREFACE
As MBA students our aim should not be only to learn theoretical concepts in the classroom, but
it becomes more important as how we apply those concepts in practices.
In present scenario the world is developing so fast, and thus the technological and application
theory is changing at a greater phase. The study inculcates students to think out of the box, rather
than emphasizing within the box. We are coming across many modern theories and
implementation of machineries, to start new business. We must have the knowledge of theories
and practical, through it, the student can able to know about how to apply their mind in the real
business world.
This training is to create awareness about the industrial environment amongst the students. Such
Industrial visit also plays vital role in MBA programs.
“BHUSHAN POWER AND STEEL Ltd” gave me the golden opportunity to carry out my
training in such a great organization. I have prepared the detail report regarding the
“DISTRIBUTION CHANNEL”. I have tried my best to collect all necessary information relating
to the project work.

ACKNOWLEDGEMENT
It gives me great pleasure to present the report entitled “DISTRIBUTION CHANNEL” at BPSL,
KHAPOLI.”
First of all, with profound pleasure and proud privilege, I take this opportunity to express my
deep sense of gratitude and indebtness to the Bhushan Power and Steel Ltd. ORRISA, for giving
me opportunity to undertake this project.
I would like to express my sincere gratitude to Sh. P.N. MAHESHWARI (DGM Marketing).
For giving me this opportunity to complete my internship in this esteemed organization and for
their kind supports.
I would also like to thank Mr. TARUN GUPTA (Senior Manager Marketing) and Mr. ARVIND
DUBEY (Executive Marketing) for his guidance throughout the project.
With great sense of gratitude, I also thank him for his experienced judgment, endless interest and
constant encouragement with out which it would have been possible for me to accomplish the
project successfully.
There is a saying “hundred miles journey begins with one step” it was my first step in the
industry so that with immense gratitude and heartful appreciation.
I am greatful to Mr. VISHAL GARG(Asst. professor JMIT) for providing esteemed guidance
and valuable support throughout the project.
I find my self- lacking in word to express sense of gratitude to my beloved parents for their
encouragement, moral and emotional support.

OBJECTIVE OF STUDY
Management is a course which teaches the student to get the work done properly from different
available sources viz. man, machine, material, money etc. So there can be a satisfaction from the
organization side and the workers side who play a significant role in achieving success. So far
the fulfillment or the management course, it gives emphasis to project work and students learn
how to plan in practical terms rather in terms of theory only. Student tends to develop analytical
and problem solving skill. We necessary become motivated and competitive, in fact all the
learning that goes on for the two year term become so much the part of our thinking that we
developed a well all rounded personality.
The following are the objectives and purpose of the study-
I. For the fulfillment of Master of Business Administration (M.B.A) programme as
realized by the International Institute of Business Management. (AICTE approved)
II. To care and contact with the working of an organization and to see the different
types of marketing activities. The main emphasis is on the distribution Channel aspect
of the organization.
III. Whatever the subject taught in the class room of MBA course that is completely
theoretical. So during the training period we compare how the marketing research
(sales) activities (practical) of our organization with the theories. IV. Find the depth
and width of distribution channel adopted by Bhushan Power and Steels Ltd.
KHAPOLI and compare them with those followed by competitors.

SCOPE OF STUDY
The main scope of this study is to ascertain the effectiveness of channel of distribution and
various methods to increase the sales volume of the concern. The methods include regular
information to the buyers creating a brand position in the market and taking measures to make
the brand remain in its position. One of the important aspects of this study is also to increase the
market segment for the product.

TABLE OF CONTENT
Chapter 1. Executive Summary
1.1 About the Steel industry
1.2 Industry trend 1.3 Indian and Global perspective 1.4 Indian Steel Industry structure 1.5
PEST Analysis 1.6 Competitor Analysis 1.7 SWOT Analysis 1.8 BPSL at glance
Chapter 2. Distribution Channel
2.1 What is Distribution? 2.2 Types of Distribution 2.3 Distribution Channel at BPSL 2.4 Type
of Channel Intermediaries 2.5 Distribution Network of BPSL 2.6 Marketing Management
hierarchy 2.7 Design and Engineering 2.8 Marketing Activities
Chapter 3. Research Methodology
Chapter 4. SWOT
Chapter 5. Recommendations
Chapter 6. Conclusion
Chapter 7. Questionnaire
Chapter 8. References

EXECUTIVE SUMMARY
The report consists of the details on BHUSHAN POWER AND STEEL Ltd. It is one of the most
effluent company’s of India for Steel Products. The main aim of it is the welfare of the society
by providing quality Steel to its consumers and service to nation. This report also contains the
detailed information about the rise in production of Steel. The Steel industry has being studied in
detail, so that that can be converted into information which can be used by Bhushan Power and
Steel Ltd for strategizing its marketing distribution and channel areas.
It has various Product, such as flat product and long product. BPSL’s Indian manufacturing units
are located at Chandigarh, Derabassi, Kolkata and Orissa. Overseas manufacturing units are
located at Nigeria, Ethiopia, Sudan and Nepal with service centres at Ghana, Benin, Kenya and
Senegal
This report is detailed in nature and contains vital data of the Distribution Channel at Bhushan
Power and Steel Ltd. This report will help BPSL to make strategies for their long term objective.
This will enable the company to take appropriate decision as needed to increase as well as to
enhance the distribution channel system and further development needed in accordance with
changing business scenario. The data has been analyzed by presenting it in the form of graphs
and tables and based on it; the interpretations have been made for the same. The results and
findings have also been made for the organization to help management in their decisions. Lastly,
the recommendations have also been made for the organization.

Introduction:
Steel is essential to the modern world, and its use is critical in enabling man to move towards a
sustainable future. Whether in lighter, more efficient vehicles or renewable energy generation,
steel is a fundamental part of a greener world. India’s Steel Industry has a history of more than a
century. Before the liberalization, the Indian steel industry was a predominantly synchronized
one with the public sector industry. Tata Steel was the only major private player involved in the
production of steel. SAIL and Tata Steel have been the major steel industries of India. The
liberalization of the India economy directed to the opening up of many steel industries,
consequently, increased production capacity. Since 1990, a huge investment has been made into
the industry. From 1997 to 2001 when the overall global steel industry was facing a depression,
Indian Steel Industry also went through a rough phase but improved after 2002. India has now
emerged as one of the largest producers of steel in the entire world. Almost all varieties of steel
are now being produced in the country. India has also emerged as a net exporter of steel and
Indian steel is being increasingly accepted in the global market.
1. Industry trends: Indian and Global perspectives, recent happenings.
Steel is the back bone of human civilization, it is very crucial in development of a modern
economy. The per capita consumption of steel shows the living standard of people in any
country.
Global Perspective: The industry directly employs about more than two million people
worldwide, with a further two million contractors and four million people in the supporting
industries. Considering steel’s position as the key product supplier to industries such as
automotive, construction, transport, power and machine goods, and using a multiplier of 25:1,
the steel industry is at the source of employment for more than 50 million people,
World crude steel production has increased from 851 mega tonnes (Mt) in 2001 to 1,527 Mt in
2011. (It was 28.3 Mt in 1900).World average steel use per capita has steadily increased from
150 kg in 2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have all entered the top
10 steel producers list in the last 40 years.

World Steel in Figures 2017:
The World Steel Association (world steel) has published the 2012 edition of World Steel in
Figures.
World Steel in Figures provides essential facts and statistics about the global steel industry. The
book contains comprehensive information on crude steel production, apparent steel use, pig iron
production, steel trade, iron ore production and trade, and scrap trade.
Table 1: Major steel-producing countries
2016 2017
sno country Mt Country mt
India
Chaina
Japan
United state
Russia
Sources: World Steel Association
Graphical representation
Indian Perspective:
At the time of independence, India had a small Iron and Steel industry with production of about a
Million tonnes (mt). In due course, the government was mainly focusing on developing basic
steel industry, where crude steel constituted a major part of the total steel production. Many
public sector units were established and thus public sector had a dominant share in the steel
production till early 1990s. Mostly private players were in downstream production, which was

mainly producing finished steel using crude steel products. Capacity ceiling measures were
introduced. Basically, the steel industry was developing under the controlled regime, which
established public sector steel companies in various segments. Till the early 1990s, when
economic liberalization reforms were introduced, the steel industry continued to be under the
control of Indian regulation were constituted such as large plant capacities were reserved only for
public sector under capacity control measures; price regulation; for additional capacity creation
producers had to take license from the government; foreign investment was restricted; and there
were restrictions on imports as well as exports. But after liberalization many reforms and
regulation were changed which brought the new era for development in steel industry.
Some of the major developments were:
1. Large plant capacities that were reserved for public sector were removed;
2. Export restrictions were eliminated;
3. Import tariffs were reduced from 100 percent to 5 percent;
4. Decontrol of domestic steel prices;
5. Foreign investments was encouraged, and the steel industry was part of the high priority
industry for foreign investments implying automatic foreign equity participation up to 100
percent; and
6. System of freight ceiling was introduced in place of freight equalization scheme. Due to this,
the domestic steel industry has since then, become market oriented and integrated with the global
steel industry. This has helped private players to expand their operations and bring in new cost
effective technologies to improve competitiveness not only in the domestic but also in the global
market.
The Indian steel industry comprises of the producers of finished steel, semi-finished steel,
stainless steel and pig iron. Indian steel industry, having participation from both public sector
and private sector enterprises, is one of the fastest growing markets for steel and is also
increasingly looking towards exports as driving the growth of the industry.
1. Indian steel Industry Structure:
Indian iron and steel industry can be divided into two main sectors: Public sector and Private
sector. Further on routes of production it can be classified as: Integrated producer which convert
iron ore into steel e.g. SAIL, TISCO, etc and Secondary producer which make steel from sponge
iron or scrap e.g. ISPAT Industries, Essar.

2. PEST Analysis
Political Factors:
It includes a lot of policies given by the Indian steel ministry; it includes industrial policies,
electricity policies, national mineral policies, foreign trade policies, environmental policies, etc.
there are also other factors including government ownership at local and national levels and other
legislations and licenses involved.
The Government has approved the National Steel Policy (NSP) in November 2005.The long term
goal of the NSP is for India to have a modern and efficient steel industry of world standards. The
focus of the policy is to achieve global competitiveness not only in terms of cost, quality and
product-mix but also in terms of global benchmarks of efficiency and productivity. The policy
targets to increase steel production at a compounded annual growth rate of 7.3% to 110 mt by
2019-2020. It projects domestic consumption to grow at annual growth rate of 6.9% to 90 mt
during this period. The policy envisages the share of exports to increase to 25% from present
share of 10%
100% FDI is allowed under the automatic route for metallurgy and processing of all metals.
Economic Factors:
Inflation: the inflation has grown to about 7.25 percent so there is rise in price of all the goods,
and also production efficiency has decreased.
Currency fluctuation and exchange rates: With increase in the value of dollar, the industry needs
to give a large amount in exchange rates. Moreover there is a rise in price of crude oil and has
cost transportation charges to increase
Economic Crisis: due to economic crisis in Europe led to decrease in demand of finished goods
in the foreign market and has led to a trade deficit.
Consumer expenditure: Due to high inflation rate the prices of product has increased leading to
more expenditure of the customer.
Social Factors:
shift in value and culture of people, a positive attitude towards work, green environment issue,
product safety issue, employment and safety laws

Technological Factors:
There is a need for new government investment policies. New patents and products for
extracting ores, manufacturing purpose should be implemented where ever necessary to rapid the
pace and improve quality of the products. The current level of investment in R&D in the Indian
Steel Plants is less than 0.24% of their total turnover. In order to encourage R&D activities in
Iron and Steel sector, Ministry of Steel is providing financial assistance.
3. Competitor Analysis:
The Major competitors to steel industry are plastic industry, aluminium industry and cement
industry. Though their cheap prices they cannot replace steel in essential products like
automobile, machineries and in construction of bridges and other infrastructure. Although a
small sector of steel is affected by plastic industry as steel is replaced by plastic in some
kitchenware articles, and furniture’s.
4. SWOT Analysis
Strengths-
 Availability of iron ore and coal:
India has abundance of iron ore, coal & other raw materials required for iron & steel
making. It has 4th largest iron ore reserves (13 bn tons) in the world.
 Low labour wage rates:
India has low unit labour cost, this gets reflected in low cost of production
 Abundance of quality manpower:
It has 3rd largest pool of technical Manpower, next to United States and erstwhile USSR,
capable of understanding and assimilating new technologies.

Weakness-
 Unscientific mining:
India is deficient in raw materials required by the steel industry. Iron ore deposits are
finite and there are problems in mining sufficient amounts of it. India's hard coal deposits are of
low quality
 Low productivity:
According to an estimate crude steel output at the biggest Indian steel maker is roughly
150 tonnes per worker per year, whereas in Western Europe the figure is around 600 tonnes.
 Power shortages:
Steel production in India is also hampered by power shortages.
 Inadequate infrastructure:
Insufficient freight capacity and transport infrastructure hamper the growth of Indian steel
industry
Low R&D investments:
There are inadequate investments in infrastructure.
Lack of best quality and trained professionals has been a major drawback.
 High cost of debt:
Since huge capital investment is required therefore cost of these debts is very high.
Lack of best quality and trained professionals has been a major drawback.
 Export Market Penetration:
It is estimated that world steel consumption will double in next 25yrs. Quality improvement of
Indian steel combined with low cost advantages will definitely help in substantial gain in export
market
 Consolidation:
As global companies have realized the threat of excess supply, they are looking at M&A
(mergers and acquisitions) option to retain market share and improve margins.

Threats-
 Technological change:
Technological changes force the industry structure to change. In India where capital itself is
costly, technological obsolescence is a major threat.
 Price sensitivity & Demand volatility:
The demand for steel is derived demand and the purchase quantity depends on end-use
requirements. The traders are price sensitive and buy when there are discounts.
 Dumping of steel by developed countries:
High quality products for developed countries available for import at competitive price
 Slow Industry Growth:
Slowing industrial growth in the country poses a constant looming threat to the steel industry

Bhushan Steel and Power Ltd is a globally renowned and prominent player in Steel Industry.
BPSL is a 2.8 Million TPA Steel making company having turnover of U$D 1000 million.
The company is certified to ISO 9001:2008 & TS-16949 Quality Standards and ISO 140012004
environment measurement standards.
During four decades of existence, BHUSHAN POWER & STEEL LTD. (BPSL) has grown into
a leading business house having diversified business interests in a range of basic and value added
products viz., DRI, Pig Iron, Billets, HR Coils, CR Coils, GP/GC Sheets, Galvanised/Colour
Coated Profiles, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel and Special Alloy
Steel Round Bars, RCS, Hexagons, Wire Rods and Bright Bars. Now BPSL is reckoned as
leading fully integrated Steel Company with State of the Art manufacturing plants at Chandigarh,
Kolkata and Orissa in India and overseas business interests in Nepal, Nigeria, Ethiopia, Sudan,
Senegal, Ghana, Benin and Dubai. BPSL have enjoyed prime position in its market segments due
to its leadership in manufacturing technology vis-àvis product quality that had established
acceptability of its products amongst customers in automotive (OEMs), auto-ancillary,
engineering and Government sectors. Due to this quality leadership, BPSL have been able to
develop and supply various products including the niche products for specific customers and
specific applications. This however does not make us complacent. Our zeal to be ahead of
competition through technological up-gradation for process
Mission:
BPSL is having mission is to achieve clear identity and leadership globally in Steel production
and distribution by integration of complete chain of production starting from captive iron ore to
end user Steel products.
Values:
Quality: To be the best in quality. We aim and achieve excellence.
Technology: - State of the art technology and product enrichment by continuous Research and
Development.

BPSL AT GLANCE
Customer Friendly: Our products are world class and more and more clients are appreciating
and using our products. We also undertake customized products with values addition and
enhancement.
Corporate Governance: We comply with all applicable laws and regulations. We believe in
maintaining clean environment and conservation of natural resources. We contribute towards
betterment of our staff and provide them with best of facilities.
PRODUCTS
BPSL offers a wide range of standard and differentiated products for different and demanding
markets worldwide such as ultra-high strength steel for Automotive, speciality steels for
Aerospace and ultra-high hardness steels for Railways
Its Product can be differentiated as below:

FLAT PRODUCT
1. CABLE TAPES
These Tubes are widely used for Power and Industrial boilers, Transformers, Super
heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering
Applications etc.
Specifications of Tubes
Finish: The surface of Galvanized steel strips is free form scales, seams, Zinc flakes and other surface
imperfection. The zinc coating shall be smooth and continuous.
Thickness: 0.20 mm to 0.90 mm
Width : 20 mm to 90 mm
General Technical Specifications
Tensile Strength : 28 to 50 kgf/mm2
Elongation : Minimum 10% on 254 mm gauge length.
Zinc Coating : Minimum 110 gm/sqm to 140 gm/sqm (total weight on all four sides).
However, this can be increased to suit customer's requirements.
Weighment tolerance : A tolerance of +/- 5% can be accepted by buyer and manufacturer.
Precision Tubes are made at our Chandigarh and Kolkata plants

2.GP COIL
These Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters,
Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering
Applications etc.
Specifications of Tubes
ERW TUBES CEWTUBES
OUTER DIAMETER
(MM)
0.40 TO 6.00 MM 0.80 TO 6.00MM
THICKNESS (MM) 0.40 TO 6.00 0.80 TO 6.00
LENGTH UPTO 12 MTRS. 0.80 TO 6.00
APPLICATIONS Automotive, Boiler &
Heat Exchangers ,Air Heater,
GEN. EGG., Bicycle &
Propeller Shafts
Automotive, Boiler, Shock
Absorbers, Textiles, General
Engg. Propeller Shafts,
Cylinder bore tubes for special
applications & front fork tube
for two wheeler.
Precision Tubes are made at our Chandigarh and Kolkata plants.

1. Steel Coils
Applications etc.

2. GP COIL SHEET
Applications: Galvanised Coils and Sheets are used to make Boxes, Containers, Ducting, Cooler
Body, etc.
GP Coils are manufactured at our Kolkata Plant.

5. Corrugated Sheets
Corrugated sheets are extensively used for Industrial sheds, housing, temporary structures
etc.
PLAIN SKIN
PASSED
COURTAG
E
D
HLPG/PETRO
L
FUEL TANK
PGP
FAN
BLAD
E
GPC
BUSES/
COACHES
Thickness
(mm )
0.10 to
2.50
0.30 to
2.50
0.12 to 1.60 0.30 to 2.50 0.40 to
1.20
0.60 to 1.60
width(mm) upto 1350 upto 1350 602,762,
800,900,
1050
200 to 1350 100 to
1350
100 TO 1350
Cut To
Length(mm)
upto 4500 upto 4500 upto 4500 upto 4500 upto
4500
UPTO 4500
Surface
Finish
Regular &
mim.span
gl e
Matte with
zero/min.
spangle
Regular
Spangle
Matte,bright
finish,No
spangl
Matte
finish,
No
spangl
Male, Bright
finish, No
spangle
Coating
Mass(gms/
m)
80 to 300 80 to 300 80 TO 300 20 TO 80 60 TO
90
60 TO 80
Grades Soft/Lock
formin
EDD,DD,
D SPCEN,
SPCD,SP
Roofing EDD,DD,D
SPCEN,
SPCD,SPC C
SPCD,
SPCC
SPCEN,SPC
D , SPCC

C C
6. COLD ROLLED SHEETS.
Cold Rolled Sheets are used in the manufacture of Automobiles, White Goods, Electrical Panels,
Furniture, Transformers, Oil barrels and drums and general engineering products.
CR Sheets are produced at our Chandigarh, Kolkata and Orissa plants.
7. Narrow CR Coils
Narrow Cold Rolled Coils are used in the manufacture of Automobiles, Precision
Tubes, Cable Tapes, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and
drums and general engineering products.
Narrow CR Coils are produced at our Chandigarh, Kolkata and Orissa Plants.

8. Galvanized Pipes.
Galvanized Pipes find its uses in a number of applications including domestic, agriculture and
Industrial.
Galvanized Pipes are available in the sizes ranging from 10mm NB to 100 mm NB, Strip
thickness 1.80 mm 5.40 mm
We manufacture GI Pipes at our Derabassi (Punjab) Plant.
9. Black Pipes

Applications etc.
LONG PRODUCTS:
1. Wire Rod and Bar Mill
With the introduction of most technologically advanced special and alloy steel long product
rolling complex for manufacture of value added bars and coils, a new dimension has been
added in BPSL's long history in the steel business.

The Long Product Rolling Complex consists of a most modern 0.5 million tpa multiproduct
Wire Rod and Bar Mill (18 pass Horizontal & Vertical Continuous Mill) supplied by Danieli
Morgardshammar, Italy and KOCKS, Germany (4 pass mill).
The state of the art Wire Rod & Bar Mill, one of the most modern plants of this type in the
world, will produce:
 Straight Bars
 Bar in Coil form
 Wire rods

WHAT IS DISTRIBUTION?
The main purpose of distribution channel is to supply goods and services to the
consumers living in far off places. Distribution channel acts as nerve between the
producer and end customer. A farmer in Srinagar has an apple orchard. Once the apples
are ripened he sells the apples to an agent of Delhi. The agent collects the apples from
Srinagar, packs them, and sells them to a wholesaler at New Delhi market. The
wholesaler then distributes them to various retail fruit vendors throughout Delhi by
selling smaller quantities. Finally, we purchase apples from those vendors as per our
requirement. Thus we find that the product travels through several hands before reaching
to the end customer. Thus distribution channel has the responsibility of buying,
transporting, storing, protection of good, sales of goods into the market.
Distribution channel can differ from sector to sector i.e. distribution channel of FMCG
products involves a complex distribution channel, whereas the distribution channel in
Iron and Steel industry have less complex distribution channel.
Thus in short it can be defined as:
The rout taken by goods from producer to consumer is known as distribution channel.

TYPES OF DISTRIBUTION CHANNELS:
There are two types of distribution channels:
Direct Distribution Channel:
In this channel, producers sell their goods and services directly to the consumers. There is
no middleman present between the producers and consumers. The producers may sell
directly to consumers through door-to-door salesmen and through their own retail stores.
For Example:
Bata India Ltd, HPCL, Liberty Shoes Limited has their own retail shops to sell their
products to consumers. For certain service organizations consumers avail the service
directly. Banks, consultancy firms, telephone companies, passenger and freight transport
services, etc. are examples of direct channel of distribution of service.
Indirect Distribution Channel:
If the producer is producing goods on a large scale, it may not be possible for him to sell
goods directly to consumers. As such, he sells goods through middlemen. These
middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in
large quantities from producers; where as a retailer is one who buys goods from

wholesalers and producers and sells to ultimate consumers as per their requirement, the
involvement of various middlemen in the process of distribution constitute the indirect
channel of distribution.
Below are some of the important indirect channels of distribution.
The most common channel used in distribution channel is .
WHOLESALER:
Wholesalers are one of the important middlemen in the channel of distribution who deals
with the goods in bulk quantity. They buy goods in bulk
from the producers and sell them in relatively smaller quantities to the retailers.
Characteristics of Wholesalers:
The followings are the characteristics of wholesaler:
 Wholesalers buy goods directly from producers or manufacturers.
 Wholesalers buy goods in large quantities and sells in relatively smaller quantities.
 They sell different varieties of a particular line of product. For example, a wholesaler
who deals with paper is expected to keep all varieties of paper, cardboard, card, etc.
 They may employ a number of agents or workers for distribution of products.
 Wholesalers need large amount of capital to be invested in his business.
 They generally provide credit facility to retailers.
 He also provides financial assistance to the producers or manufacturers.

FUNCTION:
Following are the functions, which a wholesaler usually performs.
(a) Collection of goods: A wholesaler collects goods from manufacturers or producers in large
quantities.
(b) Storage of goods: A wholesaler collects the goods and stores them safely in warehouses, till
they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage.
(c) Distribution: A wholesaler sells goods to different retailers. In this way, he also performs the
function of distribution.
(d) Financing: The wholesaler provides financial support to producers and manufacturers by
sending money in advance to them. He also sells goods to the retailer on credit. Thus, at both
ends the wholesaler acts as a financier.
(e) Risk taking: The wholesaler buys finished goods from the producer and keeps them in the
warehouses till they are sold. Therefore, he assumes the risks arising out of changes in demand,
rise in price, spoilage or destruction of goods.
RETAILER:
Retailers are the traders who buy goods from wholesalers or sometimes directly from producers
and sell them to the consumers. They usually operate through a retail shop and sell goods in
small quantities. They keep a variety of items of daily use.
Characteristics of Retailers:
Following are the characteristics of retailers:
 Retailers sell goods not for resale, but for ultimate use by consumers. For
example, you buy fruits, clothes, pen, pencil etc. for your use, not for sale.
 Retailers buy and sell goods in small quantities. So customers can fulfil their
requirement without storing much for the future.
 require less capital to start and run the business as compared to wholesalers.
 Retailers generally deal with different varieties of products and they give a wide
choice to the consumers to buy the goods.

Functions of Retailers:
All retailers deal with the customers of varying tastes and temperaments. Therefore, they should
be active and efficient in order to satisfy their customers and also to induce them to buy more.
Let us see what the retailers do in distribution of goods.
(a) Buying and assembling of goods: Retailers buy and assemble varieties of goods from
different wholesalers and manufacturers. They keep goods of those brands and variety which are
liked by the customers and the quantity in which these are in demand.
(b) Storage of goods: To ensure ready supply of goods to the customer retailers keep their
goods in stores. Goods can be taken out of these stores and sold to the customers as and when
required. This saves consumers from botheration of buying goods in bulk and storing them.
(c) Credit facility: Although retailers mostly sell goods for cash, they also supply goods on
credit to their regular customers. Credit facility is also provided to those customers who buy
goods in large quantity.
(d) Personal services: Retailers render personal services to the customers by providing expert
advice regarding quality, features and usefulness of the items. They give suggestions considering
the likes and dislikes of the customers. They also provide free home delivery service to
customers. Thus, they create place utility by making the goods available when they are
demanded.
(e) Risk bearing: The retailer has to bear many risks, such as risk of:
 fire or theft of goods
 Deterioration in the quality of goods as long as they are not sold out.
 Change in fashion and taste of consumers.
(f) Display of goods: Retailers display different types of goods in a very systematic and
attractive manner. It helps to attract the attention of the customers and also facilitates quick
delivery of goods.
(g) Supply of information: Retailers provide all information about the behaviour, tastes,
fashions and demands of the customers to the producers through wholesalers. They become a
very useful source of information for marketing research.

DISTRIBUTION CHANNEL OF BPSL:
Selection of distribution is a very strategic decision and is very vital for the organisation, thus a
very strict norm are followed before choosing a distributor at Bhushan Power and Steels Ltd
Types of Channel Intermediaries:
There are many types of intermediaries such as wholesalers, agents, retailers, the Internet,
overseas distributors, direct marketing (from manufacturer to user without an intermediary), and
many others. The main modes of distribution will be looked at in more detail,
1. Channel Intermediaries - Wholesalers
They break down 'bulk' into smaller packages for resale by a retailer.
They buy from producers and resell to retailers. They take ownership or 'title' to goods whereas
agents do not (see below).
They provide storage facilities. For example, cheese manufacturers seldom wait for their product
to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer.
Wholesalers often reduce the physical contact cost between the producer and consumer e.g.
customer service costs, or sales force costs.
A wholesaler will often take on the some of the marketing responsibilities.
Many produce their own brochures and use their own telesales operations.
2. Channel Intermediaries - Agents
Agents are mainly used in international markets.
An agent will typically secure an order for a producer and will take a commission. They do not
tend to take title to the goods. This means that capital is not tied up with the goods. However, a
'stockist agent‟ will hold consignment stock (I.e. will store the stock, but the title will remain
with the producer. This approach is used where goods need to get into a market soon after the
order is placed e.g. foodstuffs).

Agents can be very expensive to train. They are difficult to keep control of due to the physical
distances involved. They are difficult to motivate.
3. Channel Intermediaries - Retailers
Retailers will have a much stronger personal relationship with the consumer.
The retailer will hold several other brands and products. A consumer will expect to be
exposed to many products.
Retailers will often offer credit to the customer e.g., electrical wholesalers, or travel agents.
Products and services are promoted and merchandised by the retailer.
The retailer will give the final selling price to the product.
Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the USA, and Ali
super, Modelo, and Jumbo in Portugal.
4. Channel Intermediaries - Internet
The Internet has a geographically disperse market.
The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish
Salmon direct from an Inverness fishery.
There are low barriers to entry as set up costs are low.
Use e-commerce technology (for payment, shopping software, etc.) There is a paradigm shift in
commerce and consumption which benefits distribution via the Internet.
5. Distribution Network Opted by BPSL
There are mainly two major networks by which the product moves through into the market
At BPSL we have both channel of distribution i.e. direct and indirect distribution channel
Thus further the business channel is categorized as below

Within the Distribution category, the business is categorized as OE or Retail, based on whether
the customer is serviced directly, or through the Retail / Distribution network. In OE, there are
sub-segments like OEM distribution, and in Retail sub-segments like GC/GP retail distribution,
CR retail distribution, and geographic segmentation. In OEM distribution, the customers.
specify the grade of steel that they require and the company takes responsibility to supply them
the same grade of steel in the agreed cut to size condition. In retail distribution, companies
maintain stocks of material for feeding its retail chain and provide Value for money products.
6. E-Bidding:
E-bidding is all new concept developed by BPSL for sales of its product to end consumer in a
more transparent and convenient manner. The adoption of internet technologies to create
efficiencies for the Steel industry continues to grow. The latest innovation being made available
to the industry is the ability to create tenders and submit bids online. The idea of online
transactions is not a new concept with everything from online banking to purchases of major
items such as vehicles all being transacted safely and securely. The challenge that makes the
management of bidding for steel products online so difficult is the many complicated pricing
options such as separate, alternate, unit, combined and other pricing options. Add to that the need
to handle items such as cash allowances, bid bonds, required time to perform the work and
schedules such as lists of Subcontractors and other details. Over the years these challenges have

been handled by creating what are often complex and detailed tender packages that need to be
completed and submitted in hard copy by a specified closing time.
Thus electronic bidding concept in steel BPSL was more transparent in the way, such that the
bidders are allowed to bid at same price.
Distribution Network of BPSL:
BPSL has selected 28 distributors and 39 sales offices in different location across India. Every
distributor is given 2 days training session, after which they become confident about the product
and learn how to differentiate its product from its competitor product. Aggressive distribution
strategy needs to be adopted for covering large rural area. Distributors keep active sales force to
cover all the retailers in their geographical area. Their sales force visits different rural and urban

areas to attract retailers so that they can maximise their sales. Also, the sales force comes up with
attractive schemes for the retailers to help them achieve their target sales. Dealers keep RSU
vans which is used for transportation and advertising. All the distributors have upgraded
warehouse with weighing machine.
BPSL's marketing set up consists of a wide marketing network both in India and abroad with
highly qualified and experienced sales & technical personnel, who have had rich exposure in
reputed steel industries and understand the customer's needs.
The modern communication systems ensure that the enquiries and orders generated from
customers are transmitted without delay to in-house service departments viz., Technical
Competence Canter and Supply Chain Management for further actioning.
BPSL's supply chain system is fully integrated in terms of both organization & information
system all the way from selection of raw materials to delivery of the products to customers.
Marketing, production planners and logistics experts work closely together, using the same
information system.
Employees based at local Sales Offices all over India & abroad are given specialized training to
enable them to understand and meet customer's needs by ensuring cost effective and reliable
supplies. The company serves a wide variety of consumers, ranging from reputed contractors to
retail users from the private sector organisation to the public sector undertakings. These
consumers can be classified into 3 major groups:
1) Government
2) Retailer (B TO C)
3) Private sector consumers (B TO B)
To cater to the needs of all its consumers, the company does both (B to B selling) and retail
outlets (B to C selling). Bulk orders come under direct selling and small order from retail outlets.
MARKETING MANAGEMENT HIERARCHY

DESIGN AND ENGINEERING:
The Company have successfully commissioned a 2.8 Million TPA Greenfield Steel and Power
Plant in Orissa with HR Coil making facility - First in Private Sector in the State of Orissa. For
this plant, technology and equipments were sourced from leading world-renowned companies’
viz., Lurgi, ABB Ltd., SMS Siemag, SMS Meer Danieli, LOI Tenova, Kocks etc. A.
Employment Opportunities At full operational stage, now BPSL plant has employed about

17369 technical staff. The indirect employment due to various ancillary units Development and
other services is much more.
B. Training and Development
BPSL believes that the employees are its assets and strives to realize their potential in full for
mutual advantage. BPSL has trained workforce of about 8700 employees in direct contract with
the organisation
A trained cadre of technical operative personnel and managerial cadre are provided for the
successful commissioning and operation of a large steel plant like BPSL.
A training and development centre with facilities is available to develop trained cadre of
technical personnel and managerial cadre.
Employees are sent to other steel plants on short duration tours to find solutions to the various
issues facing the company. Employees are also sent to suppliers manufacturing units. BPSL
provides training programme for enhancing their knowledge.
C. Township
A Modern township with all amenities has been developed adjacent to the steel plant site, to
house the plant employees. The township is having protected drinking water supply, water borne
sanitation, black top roads, hospitals, welfare centres, community facilities, parks etc.
D. Water supply
Operational water requirement of 36 mgd is being met from the Hirakud Dam.
E. Power supply
Operation power requirement of 390 MW is being met through captive power plant. The
capacity of the power plant is 286.5mw; VSP is exporting around 0MWPower to OSEB.
F. Advertising
Bhushan Steels and Power Ltd is also following advertising, which is one among the
promotional strategies.
 Print media
 Brochures and booklets
 Posters and leaflets

 Directories
 Symbols of logs
 Bill boards
 Displays
MARKETING ACTIVITIES:
Under integrated marketing some of the important activities of the marketing
management are as follows:
 Collection of necessary information regarding marketing
 Analysis of the data and drawing conclusion
 Search and development stage of new marketing techniques
 To chalk out detailed marketing programme
 To implement that marketing programme
 To coordinate between the wants of the customers and their satisfaction

RESEARCH METHODOLOGY:
“Marketing Research is the systematic designing, collection, analysis, and reporting of
data and finding relevant to a specific marketing situation facing the company.” The
present study of Steel markets in all over KHAPOLI is based on survey methods. In
survey methods, there are two types of survey. One is Census Method and another is
Sampling Method. In this sample survey methods I have taken only a small part of the
whole and data collected from the small part are made applicable to the whole i.e. I have
taken KHAPOLI and some adjacent area of KHAPOLI like Rengali etc. Within the time
limit, I tried my best to select the sample representative of the whole group. During my
training, I maintained different chart for different routes during my dealer survey. I have
collected data from the distributor of Sambhalpur. Primary data collection involved
distributors, retailers and consumers.

SWOT ANALYSIS:
Strengths:
1. Availability of iron ore and coal:
BPSL has abundance of iron ore, coal & other raw materials required for iron &
steel making. BPSL Jharsugda, is very close to the mineral rich belt of Jharkhand
and Orissa .
2. Availability of Labour at low cost:
BPSL has low unit labour cost, this gets reflected in low cost of production
3. Abundance of quality manpower:
It has around 8700 permanent skilled manpower.
4. Have huge network of sales team, which caters the huge distribution network
5. Innovative ideas of sales directly to customer by introducing Auction sales
Weakness:
1. Unscientific mining:
BPSL is deficient in raw materials required by the steel industry. BPSL has to source
the raw materials from different companies like Vedanta. Has to outsource coal
from different mining companies
2. Low productivity:
As compare to European and US counterpart, productivity is less.
3. Inadequate infrastructure:

Insufficient freight capacity and transport infrastructure hamper the growth of
BPSL
4. Low R&D investments:
There are inadequate investments in infrastructure.
5. Lack of best quality and trained professionals has been a major drawback.
6. High cost of debt:
Since huge capital investment is required therefore cost of these debts is very high.
Opportunity:
1. Export Market Penetration:
It is estimated that world steel consumption will double in next 25yrs. Quality
improvement of Indian steel combined with low cost advantages will definitely help in
substantial gain in export market
2. Consolidation:
As global companies have realized the threat of excess supply, they are looking at M&A
(mergers and acquisitions) option to retain market share and improve margins.
Threats:
1. Technological change:
Technological changes force the industry structure to change. In India where capital itself
is costly, technological obsolescence is a major threat.
2. Price sensitivity & Demand volatility:
The demand for steel is derived demand and the purchase quantity depends on end-use
requirements. The traders are price sensitive and buy when there are discounts.
3. Dumping of steel by developed countries:

High quality products for developed countries available for import at competitive price
4. Slow Industry Growth:
Slowing industrial growth in the country poses a constant looming threat to the steel
industry.
RECOMMENDATION:
1. Needs to increase the Sales network
2. Overseas expansion must be the prime focus
3. New Research and Development work should be taken, so as to increase production
capacity.

CONCLUSION
From the data analysis and survey conducted by me, I arrived at the following
conclusions:-
1. BPSL has a huge technological advantage to those against its competitor.
2. It has huge product differentiation as compared to its competitors.
3. One of the major drawbacks of BPSL is its less no of retail outlet in India and abroad
4. The major problem faced by the distributor is the shortage of supply.
5. Distributor functions just as order takes; they should contribute me and communicate
to the retailers.
5. It should be checked that whether our products is reaching to the outlets timely and
regularly or not.

Questionnaire for selection of Dealerships
Organization Name:
Registration Number:
Location:
Address:
---------------------------------------------------------------------------------------------------------------------
-----------
Please fill below:
1. Have you being associated with BPSL before?
a. Yes b. No
2. How long you are associated with BPSL
a . 1 year b.2-3 year c.4-5 year d.5-10 year
3. Are you dealing with other Steel Companies ?
a. Yes b. No
4. Which Steel Companies you are associated with ?
(To be filled in only if your answer to Question Number 3 is yes)
Sr No Name of Organisation Period
1.
2.
3.
4.
5. Area of your Warehouse ?
---------------------------------Sq/Mt

6. List of Organization you are co-dealing and how long?
Sr No Name of
Organisation
Capacity/Month Period
7. Your approximate sales in tonnes / Month / Year..?
a. 50 to 100 b. 100 to 150
C. 150 to 200 d. 200 to 250
d. More than 250.
Note:
Please attach the following documents:
a. Bank statement for the last three years. b. Turnover for the previous year as per
latest ITR filing.
53
t

References:
www.bpsl.net
www.worldsteelorg.com
www.steel.gov.in
www.crugroup.com
www.bsisteels.com
www.steelassoc.com
www.tatasteel.com
www.google.com

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