This is first and only internship presentation report on BSIL.

1. Internship report presentation on
Marketing mix strategy and sales
procedure of Baizid Steel Industries Ltd.
Supervisor:
Prepared by:
Mr. Shanto Banik
Muhammad Mizanur Rahman
Assistant Professor
Department of Marketing Studies
and International Marketing
University of Chittagong
Master of Business Administration
Session: 2010-11
ID: 07304017
Department of Marketing Studies and International
Marketing
University of Chittagong

2. Key issues of this report
•
The key purpose of this report is to acquire practical knowledge
about the Marketing Mix Strategy and Sales procedure of Baizid
Steel Industries Ltd. (BSIL). These can be summarized in the
following ways:
Scenario of
Steel industry
of Bangladesh
Sales
technique
and
procedure
applied by
BSIL
Marketing
mix strategy
followed by
BSIL

3. Rationales
•To explore the marketing practice of BSIL
•To identify the areas of improvement in the
Marketing strategy followed by this organization
•To recommend the solutions that can be adopted
to make the Marketing practice more edgy and
efficient

4. Sources of data collection
Primary source:
• Observing practical desk work of Marketing and Sales department
• Face to face conversation with officers of different department
• Close examination of each functional department in the organization
• Conversation with various clients and dealers
Secondary source:
• Various articles and journals available online
• Website of Baizid Steel industries Ltd.
• Corporate brochure and leaflet
• Corporate Publications of Baizid group
• Available local knowledge materials developed by various experts
and industry gurus

5. Limitations
• Marketing practice followed by BSIL alone may not
showcase the whole picture in Bangladesh
• The interpretation of qualitative data in the
language of quantitative information has been also
limited.

6. Steel making industry
• Primary industry
• Secondary industry

7. Steel industries of Bangladesh
• There are 292 company operating their
business in this industry
• Demand of the deformed bar and MS bar is
approximately 10,500,000 tons per year
Source: Bangladesh Re-rolling Mill Owner’s Association

8. Steel industries of Bangladesh
Market share (%)
5%
10%
40%
20%
25%
1st position
2nd position
3rd position
4th position
5th position

9. Steel industries of Bangladesh
Market share:
1st position
Bangladesh Steel Re-rolling Mill (BSRM) is the market leader
with 40% market share.
2nd position
BSIL, AKS, KSRM, Rahim Steel, RSRM are in 2nd position with
25% market share.
3rd position
GPH, Anwar Isphat, Boshundhora Steel, SARM are at 3rd
position with 20% market share
4th position
Islam Steel, Ahsan Steel, PHP, Shamsul Alam Steel, Bondor
Steel etc. are at 4th position with 10% share
5th position
Rest of other companies are at 5th position with 5% share.

10. BAIZID STEEL
Baizid Steel Industries Ltd.(BSIL)
Company Credential

11. Baizid steel industries Ltd.
• BSIL is one of the biggest steel manufacturing
companies in Bangladesh
• BSIL started its journey back in 1986 and from
then it has been a real name in deformed bar
manufacturer
• Production capacity is 180,000 metric tons per
year
• Using most sophisticated technology named ‘Tempcore process’ to produce high quality deformed bar
BAIZID STEEL QST BAR 500+™

12. About the Group
Concern of Baizid Group
•
•
•
•
•
•
CSS Corporation Ltd.
Baizid Steel Industries Ltd.
CSS Power Ltd.
ABC Marks Holding Ltd.
ATN News
Bijoy TV

13. Marketing mix strategy of BSIL
BSIL plans for different Marketing mix programs like:

14. Product mix of BSIL
Deformed
bar
Gr. 40/
300Mpa
Gr. 60/
400Mpa
MS bar/
round BR
Gr. 75/
QST 500+
Non
grade

15. MS Bar/ Round Bar
• It’s a low carbon steel where the amount of carbon
is 0.08% to 0.35%.
• Shape of this bar is round
• Produced directly from billet with out use of heattreatment technology.
• It is equivalent to ASTM A615 Standard.
• Yield strength is 300 Mpa to 320 Mpa
• Ultimate tensile strength is 350-360 Mpa
• Elongation is 4% to 6%

16. Specification of MS Bar
•
•
•
•
•
Limited capacity in yield strength and load bearing
Required more in terms of quantity
Minimum weldability and bendability
Increase the weight of concrete
Not suitable in large construction

17. Use of MS Bar
•
•
•
•
•
•
•
Small reinforced concrete
Small construction work
Basement of the building
Foot path and foot way
Riling of the tarries
Small Colbert
Flooring of the basement

18. Deformed bar
• Produced by the use of Most advance Heattreatment technology called ‘Quenching and SelfTempering (QST)’ process.
• Quality of this bar is more higher than MS bar
• Most used bar at present
• High durability
• High ductility
• High load bearing capacity
• High elongation

19. Deformed bar
Gr. 40/300 Mpa
• Load bearing capacity is 40,000psi or 40,000
pound per squire inch of 300Mpa.
• Yield strength is more than 300Mpa per squire
inch
• Ultimate tensile strength is minimum 350Mpa per
squire inch
• Elongation is more than 6%

20. Deformed bar
Specification of Gr. 40/300 Mpa
•
•
•
•
•
•
•
More yield strength then MS bar
Reasonable elongation
Reduce 5% steel weigh from construction
Reduce column size and quantity of rod
Resistance to fatigue behavior
Have better bonding with concrete
Safely weld-able

21. Deformed bar
Use of Gr. 40/300 Mpa
•
•
•
•
•
•
•
Underground of the buildings
Govt. constructions
Low budget concrete
Basement of the building
Slap over the drain
Small Colbert
Flooring of the basement

22. Deformed bar
Gr. 60/400 Mpa
• Load bearing capacity is 60,000psi or 60,000
pound per squire inch of 400Mpa.
• Yield strength is more than 400Mpa per squire
inch
• Ultimate tensile strength is minimum 450Mpa per
squire inch
• Elongation is more than 8%

23. Deformed bar
Specification of Gr. 60/400 Mpa
•
•
•
•
•
•
•
•
More yield strength then Gr. 40 bar
Reasonable elongation
Reduce almost 10% steel weigh from construction
Reduce column size and quantity of rod
Resistance to fatigue behavior
Response to tensile loading
Resistance to corrosion behavior
Safe 0.05% steel at welding

24. Deformed bar
Use of Gr. 60/400 Mpa
•
•
•
•
•
•
Grand column of the buildings
Over bridge
Foot over
Fly over
Large size bridge
Large size reinforced concrete

25. Deformed bar
Gr. 75/QST 500+
• Branded this product as ‘Baizid steel QST bar
500+™’
• Load bearing capacity is 75,500psi or 75,500
pound per squire inch of 500Mpa.
• Yield strength is more than 500Mpa per squire
inch
• Ultimate tensile strength is minimum 550Mpa per
squire inch
• Elongation is more than 12%

26. Deformed bar
Specification of Gr. 75/ QST bar 500+™
•
•
•
•
•
•
•
•
•
High design yield strength of minimum 500Mpa
High elongation
Reduce almost 25% steel weigh from construction
Reduce the earth quake damage
Reduce column size
Resistance to fatigue behavior
Response to tensile loading
Resistance to corrosion behavior
Reduce the wastage at welding more then 5%

27. Deformed bar
Use of Gr. 75/ QST bar 500+™
•
•
•
•
•
•
•
•
Fly over
Multipurpose buildings
Multipurpose Bridges
Skyscrapers
Over bridge
Foot over
Grand column of the buildings
All kinds of mega structures

28. Feature of product of BSIL
High Durability
More accurate weight of the product
Ensure high quality
Strictly follows the international standards
The bars conform to ISO 6935, BS 4449, ASTMA615 and BDS 1313 standard.
• High ductility and high elongation
•
•
•
•
•

29. By-product of BSIL
• There are two kinds of by-product:
Oval: Due to failure of electricity or displacement
of roller the steel turned in to waste called Oval.
BSIL sell these to Low grade MS bar producer at
1/4th reduced price
Rubbish: The residual of the furnace after
casting the pure steel is called rubbish. This
rubbish can be used in various construction site
for pilling. BSIL sell these at price range Tk. 5000TK. 6000 per ton

30. Branding
BSIL branded the product by sing the
following elements:
• Brand Name
• Slogan
• logo

31. Branding
Brand Name
The corporate brand name of BSIL is ‘BAIZID
STEEL’
BSIL has registered the Name of high quality
Gr. 75 deformed bar as ‘BAIZID STEEL QST
BAR 500+™’ to registrar of Patents & Trade
Mark, Bangladesh

32. Branding
Slogan
The corporate slogan of BSIL is,
‘The steel for prosperous tomorrow’

33. Branding
Logo

34. Price mix of BSIL
Factors influencing pricing decisions
• Competitor Analysis
• Media
• Seasonal factors
• Cost of production

35. Price mix of BSIL
Pricing procedure of BSIL
BSIL applied the following pricing strategy:
•
•
•
•
•
Cost-Based pricing
Competition-Based pricing
Promotional pricing
Segmented pricing
Discount & Allowance pricing

36. Price mix of BSIL
Cost-Based Pricing procedure of BSIL
Cost-Based pricing of BSIL = (cost + profit)
BSIL considers the following factors in cost based
pricing:
•
•
•
•
•
•
•
Cost of raw materials
Customs cost of releasing raw materials
Production cost
Procurement cost
Cost of Machine maintenance
Cost of power
Sudden incidental or accidental issues

37. Price mix of BSIL
Competition-Based Pricing procedure of
BSIL
BSIL applying this pricing strategy in two
ways:
• Going-rate pricing
• Seal-bid pricing

38. Price mix of BSIL
Promotional Pricing procedure of BSIL
BSIL offers the seasonal Promotional offering
for all customers such as:
• Sale on special discount rate of Tk. 500- Tk.
1000 for a certain period of time
• Dealers get the incentives quarterly on
product lifting, storage and sales.

39. Price mix of BSIL
Segmented Pricing procedure of BSIL
Segmented pricing of BSIL depends on the
seasonal appearance such as:
• Price is reduced in the rainy season and the
discount rate is low at that time
• Again price is increased in the winter season
and the discount rate is high at that time.

40. Price mix of BSIL
Discount & allowance Pricing procedure
of BSIL
• Dealers of BSIL get fixed amount of Tk. 1000 as
discount per ton.
• Corporate customers get the discount of Tk. 300 to
Tk. 500 per ton.
• End user also get discount on special offers

41. Price per metric ton
Effective form June 20, 2013
SL
Product Name
Product Size
Price (TK.)
1
Deformed Bar QST
500+™
8 mm.
65,500
Deformed Bar QST
500+™
10 mm.-25 mm.
66,500
Deformed Bar (Gr.-60)
8 mm.
65,000
Deformed Bar (Gr.-60)
10 mm.-25 mm.
65,200
Deformed Bar (Gr.-40)
8 mm.
63,000
Deformed Bar (Gr.-40)
10 mm.-25 mm.
63,200
Deformed Bar (Gr.-75)
8 mm.
72,000
Deformed Bar (Gr.-75)
10 mm.-16 mm.
73,500
Deformed Bar (Gr.-75)
20 mm.-25 mm.
74,500
2
3
4

42. Place mix
The channel of distribution used by BSIL as
follows:
Corporate
customers
BSIL
End users
Projects/ small
dealers
Dealers
End users
Govt. construction/
Projects
Traders
End users

43. Place mix
Qualities of channel members of BSIL:
•
•
•
•
•
•
•
•
Financial condition of the willing dealers
Marketing experience and capability
Previous back ground of the dealer as good payee
Market reputation
Turnover of the volume
Location of shop
Good will
Negotiation power

44. Place mix
Name of distribution member of BSIL
Dealers:
•
•
•
•
•
•
•
•
•
•
•
Hateem steel,
Haque traders,
M/S khan steel shops,
Chowdhury metal
NSS steel
Shlaim and sons
Ibrahim steel
Anondo metal
Chandonish steel
Maa traders
Jabur steel

45. Place mix
Name of distribution member of BSIL
Traders:
•
•
•
•
•
•
Khan and sons
Progoti metals
Popular steel shop
S & S metal works
Minoti traders
Monsur ali traders

46. Place mix
Name of corporate client of BSIL
Developers:
•
•
•
•
ANZ properties Ltd.
Equity properties Ltd.
Ideal development Ltd.
BTI development Ltd.

47. Place mix
Name of corporate client of BSIL
Group of companies:
•
•
•
•
Well group
TK group
Asian group
Navana group

48. Place mix
Warehousing of BSIL
Main ware house is situated in Nasirabad
Industrial area. Other warehouse are
situated at:
• Rongpur
• Shylet
• Bager hat

49. Promotion mix
Main promotional objectives of BSIL
•
•
•
•
•
•
To educate the customers
To face competition
Survive in the competitive market
Introduce the product to whole country
To maximize the sale
To sustain and enhance the brand as well as
corporate image.

50. Promotion mix
Promotional tools of BSIL
Advertising:
It uses the following media for advertising:
•
•
•
•
•
•
•
Print media
Local and National Dailies
TVC
Notice
Shop Signs
Hoarding Boards
Project Sign board

51. Promotion mix
Promotional tools of BSIL
Sales promotion:
It uses the following sales promotion:
•
•
•
•
•
•
•
Discount
Credit sales
Allowance
Incentives to dealers
Commission to dealers
Gift for valuable customer
Special offer for developers

52. Promotion mix
Promotional tools of BSIL
Public relation and publicity:
Public relation and publicity activities of BSIL are:
• Sponsorship to several workshops
• Donating to workshops, seminars
• Corporate Social Responsibility

53. Promotion mix
Promotional tools of BSIL
Personal selling:
The sales force of BSIL personally visit the all
customers to:
• Give idea about the product
• Promote the product
• Influence to by the product

54. Promotion mix
Promotional tools of BSIL
Direct marketing:
BSIL is practicing Direct marketing by:
• Mass marketing with all types of customers
• One-to-one marketing with developers and
group of companies.

55. Sales procedure of BSIL
Purpose of sales policy BSIL
To ensure the security of the company's assets
and maintaining valuable relationship with
the current clients

56. Sales procedure of BSIL
Sales target of BSIL
• BSIL has taken the target of selling 1,50,000
tons of re-bars in 2012-2013.
• The company has the daily sales target of
450tons.
• During high demand quota will be
maintained.

57. Sales procedure of BSIL
Credit sales procedure of BSIL
• The sales officers collect the primary information
of the customers.
• To secure credit extended to all customers, all
particulars must be updated by the concern sales
person once in every 3 months.
• Credit limit will be evaluated differently for
Projects, End Customers, Dealers, Corporate
Customers.
• Credit limit will be approved by higher authority
of the company.

58. Sales procedure of BSIL
SALES
DEALER
DEALER
SELECTION
PROCEDURE
SALES
PROCEDURE
DEVELOP
ERS
SALES
PROCEDUR
E
CORPORATECUS
TOMERS
GROUP OF
COMPANIES
END
USERS
EXPORT
SALES
SALES
PROCEDUR
E
L/C
SALES
CONTRA
CT
SALES
PROCEDU
RE

59. Sales procedure of BSIL
Dealer:
Dealer selection procedure of BSIL
Business history of the steel trader
Banking history,
Trade license, VAT registration, TIN nos.
Complete names and address of the owners if
a partnership.
• Copies of Article of Association and
memorandum, in case of a limited company.
• BSIL sales office shall verify the dealers’ credit
limit in terms of tonnage and time.
•
•
•
•

60. Sales procedure of BSIL
Dealer:
Agreement between dealer and BSIL
Dealership deed contains the following clauses:
•
•
•
•
•
•
•
•
•
•
•
•
Commodity
Duration
Quantity
Price
Territory
Payment terms
Transportation
Commission
Stock and inspection
Market responsibility
Governing Law and arbitration
Termination of agreement

61. Sales procedure of BSIL
Dealer:
Agreement on credit sales
Following conditions are followed in agreement on
credit sales:
• Dealer have to provide open dated cheque or
bank guarantee favor to the company
• Post dated cheque at the time of issuance of
every delivery order
• In case of failure to make full payment within
21 days, 15% interest rate penalty will be
charged for delayed period

62. Sales procedure of BSIL
BSIL has three types of corporate customers:
• Developers
• Group of companies
• Export sales

63. Sales procedure of BSIL
Developers
Agreement between developers and BSIL contains
following conditions:
• Agreement is made between the Chairman/MD
of the developer and Sales Head of BSIL.
• Ordered quantity per lot should be minimum 10
metric tons in bent condition and minimum 30
metric tons of each lot in case of straight
condition.
• BSIL reserves the right to increase or decrease
the price of products without notice.
• Materials are to be delivered within seven days
from the date of formal purchase order.

64. Sales procedure of BSIL
Developers
Agreement between developers and BSIL contains
following conditions (Cont.):
• Developers are free to reject lots that do not comply
with the required specifications.
• Developers have to inform BSIL if required
specifications are not found and BSIL will have to
make necessary arrangement for replacement within
7 days from the date of receiving such complaint.
• Arbitration should be settled as per Arbitration
Act, 2011, in case of dispute arises between the two
parties.
• The price of products is inclusive of VAT, Income
tax, loading and Carrying charges.
• Unloading cost have to be arranged by the
developers at their site at their cost.

65. Sales procedure of BSIL
Developers
In case of credit sales the consideration are:
• Developers get 30 days of credit limits.
• 100% of total payment have must to be made by
30 days post dated cheque from the date of
formal purchase order.
• Developers have to ensure that such post dated
cheque will be definitely honored in time
without fail.
• Credit limit will be approved by higher authority
of BSIL.

66. Sales procedure of BSIL
Group of companies
Agreement between group of companies and BSIL
contains following conditions:
• Agreement is made between the Chairman/MD
of the Group of Companies and Sales Head of
BSIL.
• Ordered quantity per lot should be minimum 10
metric tons in bent condition and minimum 30
metric tons of each lot in case of straight
condition.
• BSIL reserves the right to increase or decrease
the price of products without notice.
• Materials are to be delivered within seven days
from the date of formal purchase order.

67. Sales procedure of BSIL
Group of companies
Agreement between group of companies and BSIL
contains following conditions (Cont.):
• Group of Companies are free to reject lots that do
not comply with the required specifications.
• Group of Companies have to inform BSIL if required
specifications are not found and BSIL will have to
make necessary arrangement for replacement within
7 days from the date of receiving such complaint.
• Arbitration should be settled as per Arbitration
Act, 2011, in case of failure negotiation if any
dispute arises between the two parties.
• The price of products is inclusive of VAT, Income
tax, loading and Carrying charges.
• Unloading cost have to be arranged by the
developers at their site at their cost.

68. Sales procedure of BSIL
Group of companies:
In case of credit sales the consideration are:
• Group of Companies get 30 days of credit limits.
• 100% of total payment have must to be made by 30
days post dated cheque from the date of formal
purchase order.
• Group of Companies have to ensure that such post
dated cheque will be definitely honored in time
without fail.
• Credit limit will be approved by higher authority

69. Sales procedure of BSIL
Export:
BSIL is now exporting products in India. Maximum sales in
India are done by Sales Contract.
Sales procedure of export:
Foreign purchasers send e-mail or make phone call then email for Purchase Order. In return, BSIL sends them
Proforma Invoice which consisting of required products
information, current price, discount etc. If purchasers
agree to buy according to Sales Contract or L/C, then
Foreign Purchasers and BSIL come to an agreement.
Export Sales Procedure is done as same as Deemed
Export.

70. Sales procedure of BSIL
End user:
In the sense of BSIL, End Users are those who buy Rods or
Re-bars for constructing their own house or building.
They simply give the Purchase order and Current Dated
cheque and delivery will be processed.
Sales procedure:
End Users give purchase order with current dated cheque
and then delivery order will be processed.

71. SWOT Analysis of Sales
department of BSIL

72. Strength
• Strong marketing lineup
• Strong Products Distribution Lineup
• Strong Sales Force

73. Weakness
• Conflicts Between Marketing Departments and
Sales Department
• Communication Gap between the Departments
of BSIL

74. Opportunities
• Market Dominance by the Sales Force
• International Scope for the Sales Force
• Increased Demand for the Products

75. Threats
• Internal conflicts may Increase
• Dissatisfaction in Sales Support people
• Switching of sales people to competitor’s
company

76. Problems in sales department
•
•
•
•
Dissatisfaction in sales-support officers.
Lack of integration with marketing department.
Lack of professional sales training programs.
Lack of proper marketing knowledge among the
sales people.

77. Recommendations
• Arrange Periodical Professional Sales Training
Programs
• Internal marketing for the sales persons should be
increased to reduce communication gap and
conflict.
• Sales support officers’ performance should be
evaluated gradually.
• The integration between sales department and
marketing department should be increased.
• Proper marketing knowledge should be generated
among the sales people.

78. Conclusion
It is found from the study that the performance of
BSIL is satisfactory but not outstanding. Still the
company is improving but very slowly. The
opportunity of the BSIL is great in future it has
some unique USP and extra advantages which can
make it one of the main challengers to leader
BSRM. So if the company can utilize its
opportunities and can implement the
recommendations, it will be able to capture a good
market in future.

79. Thank you