Crescent Steel and Allied Products Ltd faces challenges from increased Chinese competition due to CPEC, smaller plant sizes lacking economies of scale, and liquidity issues at PSMCL. It competes against Data Steel and Agha Steels. As an industrial product, it relies on B2B marketing like personal selling and CSR. Recommendations include targeting new sectors like water and construction, improving client engagement with online tracking, strengthening internal branding, and reducing manual work by digitizing processes.
2. Crescent Steel and Allied Products Ltd
Industrial Marketing
Muhammad Abbas
Wajiha Zamir
3. Introduction
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• Crescent Steel and Allied Products Limited (CSAPL) is a Public Limited Company
listed on all the Stock Exchanges of Pakistan.
• It started commercial production in March 1987. The manufacturing facilities
• Consist of a Spiral Pipe Production line and an internal/external Coating line, both
located side by side at The Sindh Industrial Trading Estate, Nooriabad in Jamshoro,
Sindh.
4. Major Challenges
There are three major challenges that our local manufacturers are facing:
The construction of CPEC has increased Chinese intervention. Due to low production and huge supply demand gap,
Pakistan imports steel from china at cheaper price. There is a possibility that these Chinese firms prefer to get steel
from their country rather than considering local market of Pakistan. That clearly shows that Chinese steel
manufacturers would be the competitors that may affect current local market.
Most of the manufacturing plants In Pakistan are small-sized and therefore lack benefits from the economies of scale.
Liquidity crises of PSMCL (Pakistan Steel Mills Corporation Limited)
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5. Competitive Analysis
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• Data Steel
– APIQR 9001
• Agha Steels
– Earth quack resistance rebar
• Crescent Steel
– API Q5
– API 5L grade X70 X80
6. B 2 B Marketing of Steel Industry
Steel pipes heavily relies on business to business marketing especially personal
selling.
It is a pure industrial product and requires specifications need to be used as point of
differentiation.
There is much better way to sell or promote your product except personal selling:
– CSR
– Print Media
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8. Strategy against Rival
– In manufacturing of type of product that is pure industrial and involves dealing with big client such as SSGS and SNGPL, it
is very hard to select competitive strategies. What we can do is to go for a pricing strategy. Prices can be set according to
rivals but much innovation cannot be brought within the product that is because the product is made according to the API
and ISO certificates.
• Heading towards the betterment:
– SSGC AND SNGPL are the main clients of CSAPL and both of them are working for the solutions of energy crises and on
the bases of current scenario it is forecasted that CSAPL would have a great opportunity to work on.
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9. B2B marketing tools techniques and methodologies
– The marketing tool that is used by CSAPL is website that is user friendly, commercial but the
trend of website is decreasing day by day. We can place quires through website. The lead time
between the website and inquiry attendant is too less and prompt responses are also given
within 2 hours. Furthermore CSAPL believes in building relationships with client and that is very
important. Follow ups and engagement of client with responsible person is another aspect.
• Developments:
– The next 5 years are very crucial the movement of next 5 years that can be done is that CSAPL
can target the water sector, Piling, K4 project, Gawadar to Nawabshah project and Karachi to
Lahore project.
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10. Recommendations:
Target market:
Since CSAPL has a unique product so it is recommended that CSAPL should start now to target new sectors such as water sector, sewerage
sector and construction sector as well.
Client engagement:
Online tracking system should be introduced on website this will provide a facility to client for keeping the track of their product.
Internal branding:
Internal branding of the company should be done that will keep the employees motivated and it gives the good impression to the guests as
well.
Manual work:
It is highly recommended to reduce the paper work and shift to online workings by transferring the data on one drive or on network shared
drive which will reduce manual working and that will save time as well.
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