Marketing Mix Strategy of Ratanpur Steel Re-rolling Mills (RSRM)

Marketing Mix Strategy of Ratanpur
Steel Re-rolling Mills Ltd. (RSRM)
MD. Nasir Uddin Shushmita Chowdhury
ID: 13102406 ID: 13102421
1

Presentation Outline
Introductory part
Organizational part
Actual task part
Project part
Research part
2

Objectives of the Study
 Broad Objective:
The broad objective of the study is to assess the marketing mix
strategy of steel industry in Bangladesh focusing on Ratanpur Steel Re-
rolling Mills Ltd. (RSRM).
 Specific Objectives:
 To know if product quality is getting priority over cost
 To find out the pricing strategy
 To find out the location coverage
 To know the by-product utilization
 To know if the Sales promotion policy of RSRM is affected due to competitor’s
marketing strategy
 To find out the relation of profit margin and competitive price
 To know if the promotional schemes have impact on products demand
4

Limitation of the Study
Lack of up-to-date data.
Time constraint.
Data constraint.
Lack of perfect co-operation.
5

Company Profile
Head Office Nahar Mansion, 116 C.D.A Avenue,
Muradpur, Chittagong
Tel: +88-031-652255-57,
Fax: 88-031-650001
Corporate Slogan Steel For The Nation
Date of Incorporation April 22, 1986
Date of Starting It’s Operation July 1, 1986
Chairman of the Board Mrs. Shamsun Nahar Rahman
Name of the Managing Director Mr. Maksudur Rahman
Website www.rsrmbd.com
7

Background of RSRM
 Ratanpur Steel Re-Rolling Mills Ltd. (RSRM) was established in
January 1984.
 The mill is situated in the progressive Baizid Bostami Industrial
Area, Chittagong.
 Leading steel manufactures
 Incorporated on 22 April 1986
 Commercial production in 01 July 1986
 Production capacity to1000 tons per day
 Principal product of the company is M. S. Rod 60 Grade
 Installed production capacity of producing 3, 00,000 MT annually
 Main raw materials of the company are M.S. Billet
8

Vision and Mission
Vision:
“To be the trend setter and the power force of the steel
re-rolling industry”
Mission:
To be the first name in the region’s steel industry
Harnessing our assets and resources to achieve
profitable growth,
Operational and organizational excellence and
Good corporate citizenship
9

SWOT10
Strength:
 Market Leader
 Great Competitive Skill
 Reliability
 Strong employee bonding and
belongingness
 Modern Equipment & Technology
 Strong Products Distribution Lineup
 Strong Marketing Lineup
Weakness:
 High interest rates decline
profit
 Power crises
Opportunities:
 Market Dominance
 Organizational Goal
 Increased demand for the products
 International Scope
Threats:
 New competitors
 Economic crisis
 Growing Competition
 Labor Unions
 Power Crisis

11 Porters Five Forces
New Market
Entrants (Low)
Bargaining
Power Of Buyer
(High)
Bargaining
Power of
Supplier (Low)
Rivalry Among
Existing Firm
(High)
Threat of
Substitute
Products (Low)
Capital Requirement
Government Policy
Economies of scale
Increasing Demand for Steel
Low per capita consumption
Bargaining power of buyers
Energy supply
Labor union power
Bargaining power
Product differentiation
Competition from Foreign Players
 Aluminum

12 PESTEL Analysis
PESTEL
Political Economical Social Technological Environmental Legal
• National Steel
Policy
• Opportunities
available in ppp
• Foreign
Direct
Investment
• Huge Gap
between the
Demand and
Supply
• Permanent
Employment
• Development
in the Rural
Areas
• Online
Trading
• Planning to
Use Latest
Technology
• Encouraging
the eco Friendly
System
• RSRM is
developing the
Ultra-Low
Carbon
• various rules
and regulations
• Health
policies of the
employees
• Special
health
incentives and
rules

13
Organogram
Chairman
Managing Director
Director
Independent Director
Manager

Mrs. Shamsunnahar
Rahman
Chairperson
Mr. Maksudur Rahman
Managing Director
Md. Younus Bhuiyan
Director
14
Board of Directors
Md. Mizanur Rahman
Director
Marzanur Rahman
Director
Mr. Md. Jahangir Miah
Independent Director

Products
i • RSRM X power TMT 500 bar
ii • RSRM Gr. 60/ 400 Mpa and
iii • RSRM Gr. 40/ 300 Mpa (Megapascal)
15
MS Bar or Round Bar
Deformed Bar
01
02

BSRM
KSRM
BSIL
AKS
RRM
16 Competitors

18
Nasir’s task:
 Collected information through web browsing about fire safety
products
 Made profile for the Fire safety products
 Edited the pictures
 Made a list of solar companies
 Collected information through web browsing
 Made profile for solar energy
 Made a list on compressor companies domestically and
internationally
 Field work
Tasks done by us at
RSRM

Contd…
Shushmita’s task:
 Research on Vietnam:
 Basic Data
 Why invest in Vietnam
 Why foreign investment in Vietnam is booming
 Largest companies in Vietnam
 RMG & textile in Vietnam
 Tax rate in Vietnam
 Vietnam Corporate Taxation & special sales tax
 Other tax rates on resident individuals
 Barrier to entry
 Testing and Approvals
 Export & Import
 Garment manufacturing companies in Vietnam
19

 Research on Myanmar:
 Basic Data
 Myanmar GDP
 Industry & Retail
 Trades & Investment
 Financial Services
 Gerent, textile, and leather companies
 Construction and real state companies
 Chemical, cosmetics and health companies
 Field work
20 Contd…

 Represents a blending of four elements
 Also known as 4 P’s
 Product, price, place and promotion
 Basic purpose is to satisfy the needs of customers
22 Marketing mix
Marketing Mix
Product
Price
Place
Promotion

Products of RSRM
Deformed
Bar
Gr. 40/ 300
Mpa
Gr. 60/ 400
Mpa
RSRM X
Power TMT
MS Bar/
Round bar
23 Product Mix OF RSRM

Produced by the use of most advanced Heat-
treatment technology
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
24 Deformed Bar

Load bearing capacity is 40000 psi or 40000 pound
per square inch in 300Mpa
Yield strength is more than 300Mpa per square inch
Ultimate tensile strength is minimum 350Mpa per
square inch
Elongation is more than 6%
25 Gr. 40/ 300 Mpa Deformed Bar
Gr. 40 Deformed Bar

More yield strength then RSRM 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
26 Specification of Gr. 40/ 300 Mpa
Deformed Bar

Underground of the buildings
Govt. construction
Low budget concrete
Basement of the building
Slap over the drain
Small Colbert
Flooring of the basement
27 Use of Gr. 40/ 300 Mpa Deformed Bar

Load bearing capacity is 60000psi or 60000 pound
per square inch of 400Mpa
square inch
28 Gr. 60/ 400 Mpa Deformed Bar
Gr. 60 Deformed Bar

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

Grand column of the building
Over bridge
Foot over
Fly over
Large size bridge
Large size reinforced concrete
30 Use of Gr. 60/ 400 Mpa Deformed Bar

Branded this product as “RSRM X Power TMT 500
bar.”
Load bearing Capacity is 75500psi or 75500 pound
per square inch of 500Mpa
square inch
31 RSRM X Power TMT 500 Bar

High design yield strength of minimum 500 Mpa
High elongation
Reduce almost 25% steel weigh from construction
Reduce the earthquake damage
Reduce column size
Response to tensile loading
Resistance to corrosion behavior
Reduce the wastage at welding more than 5%
32 Specification of RSRM X Power TMT
500 Bar

500 TMT Bar
33
Fly over
Multipurpose buildings
Multipurpose bridges
Skyscrapers
Over bridges
Foot over
Grand column of the buildings
All kind of mega structures
Use of RSRM X Power TMT 500 Bar

It’s a low carbon steel where the amount of carbon is
0.08% to 35%.
The shape of this bar is round.
This bar produced directly from billet without use of heat-
treatment technology.
It is equivalent to ASTM (American Society for Testing and
Materials) A615 Standard.
Yield strength is 300 Mpa to 320 Mpa.
Ultimate tensile strength is 350-360 Mpa
Elongation is 4%-6%
34 MS Bar or Round Bar

Limited Capacity in yield strength and load bearing
Required more in terms of quantity
Minimum weld ability and bend ability
Increase the weight of concrete not suitable in large
construction
35 Specification of MS Bar
MS Bar

Small reinforced concrete
Small construction work
Basement of the building
Foot path and foot way
Small Colbert
Flooring of the basement
36 Use of MS Bar

High durability
More accurate weight of the product
Ensure high quality
Strictly follows the international standards
The bars conform to ISO 9001: 2008, BSTI, and
ASTM Standard
High ductility and high elongation
37 Feature of Product of
RSRM

Oval
Rubbish
38 By-Product of RSRM

Slogan:
“Steel For The Nation”
Logo:
39 Branding of RSRM

Factors influencing pricing decisions:
Competitor analysis
Media
Seasonal factors
Cost of production
40 Price Mix of RSRM

Pricing procedure of RSRM
RSRM applied the following pricing strategy:
Cost-based pricing
Competition-based pricing
Promotional pricing
Segmented pricing
Discount and allowance pricing
(Contd..)

Cost-Based pricing procedure of RSRM
Cost-Based pricing of RSRM = (cost + profit)
RSRM consider the following factors in cost-based
pricing:
Cost of raw material
Customs cost of releasing raw material
Production cost
Procurement cost
Cost of machine maintenance
Cost of power
Sudden incidental and accidental issue
42
Price Mix of RSRM
(Contd..)

Competition-Based pricing procedure of
RSRM
RSRM applying this pricing strategy in two ways:
Going-rate pricing
Seal-bid pricing
43
Price Mix of RSRM
(Contd..)

Promotional pricing procedure of RSRM
RSRM offers the seasonal promotions offer for all
customer such as:
Sale on special discount rate of 500tk-1000tk for a
certain period of time
Dealers get the incentive quarterly on product
lifting, storage and sales.
(Contd..)

Promotional pricing procedure of RSRM
Segmented pricing of RSRM depends on the seasonal
appearance such as:
Price is reduced in rainy season and the discount
rate is low at that time
Again price is increase in winter season and the
discount rate is high at that time
(Contd..)

Discount and allowance pricing procedure
of RSRM:
Dealers of RSRM get fix amount of 1000tk as
discount per ton
Corporate customers get the discount of 300tk-500tk
per ton
End user also get discount on special offers
(Contd..)

47 Place Mix of RSRM
Corporate
Customer
End userTraders
Govt. construction/
projects
Projects/ small
dealers
End user
RSRM
Dealers
End users

Qualities of channel members of RSRM:
Financial condition of the willing dealers
Marketing experience and capability
Previous back ground of the dealer as good payee
Market reputation
Location of shop
Good will
Negotiation power
48 Place Mix of RSRM (Contd..)

Name of distributors of RSRM
Dealers:
Al-Amir & Sons
Amin trading Co
Barik Brothers
RSRM (Corporate, Chittagong)
Cox’s Bazar Builders Store
Joni Steel Corporation
M. Rahman Enterprise
M/S. Sarkar & Co. etc.

Traders:
Khan and Sons
Progoti Metals
Popular Steel Shop
S & S Metal Works
Minoti Traders
Monsur Ali Traders

Developers:
ANZ properties Ltd.
Equity properties Ltd.
Ideal Development Ltd.
BTI development

Main Promotional objectives of RSRM:
To face competition
To educate the customers
Survive in the completive market
Introduce the product to whole world
To maximize the sale
To sustain and enhance the brand as well as
corporate image
52 Promotion Mix of RSRM

Promotional tools of RSRM
Advertising:
RSRM uses the following media for advertising:
Print media
Local and national dailies
TVC
Notice
Shop signs
Hoarding boards
Project sign board
(contd..)

Sales Promotion:
RSRM uses the following sales promotion:
Discount
Credit sales
Allowance
Incentives to dealers
Gift for valuable customer
Special offer for developers
(contd..)

Public relation & Publicity:
Public relation and publicity of RSRM are:
Sponsorship to several workshops
Donating to workshop, seminars
Corporate social responsibility
(contd..)

Personal Selling:
The sales force of RSRM personally visits all customers
to:
Give idea about product
Promote the product
Influence by the product
(contd..)

Direct Marketing:
RSRM is practicing direct marketing by:
Mass marketing with all types of customers
One- to- one marketing with developers and group of
companies
(contd..)

 Our report is based on marketing mix of Ratanpur Steel
Re-rolling Mills Ltd. (RSRM). The focus of the study is
analyzing the current marketing mix of RSRM. Based on
the problem analysis recommendation is been given.
59 Problem Statement

60 Methodology of the Study
Primary Sources:
• Face to face conversation
• Interview with the Company manager, executives
• Some data has been collected through the questionnaire.
Secondary Sources:
Secondary data are collected from the following sources:
• Annual reports of RSRM
• Official files
• Data available with the website of RSRM

Sample size:
A total of 40 respondents have been conducted, where were
employees of RSRM.
Questionnaires Scale:
 Strongly Disagree ……………………..1
 Disagree ……………………………..…2
 Neither Agree nor Disagree ….…….3
 Agree ……………………………...……4
 Strongly Agree ……………….………..5
61

Hypothesis Test:
Z test =
µ = Mean value
n = Sample size
σ = Standard Deviation
= Average
Based on my analysis we have made findings, limitation, recommendation and
conclusion.
62

Liker Scale H1 H2 H3 H4 H5 H6 H7 H8 H9 H10
1= Strongly Disagree 0 0 5 6 5 2 4 7 4 6
2= Disagree 5 3 22 5 4 4 6 2 5 5
3= Neither agree nor disagree 5 4 4 2 0 4 0 2 0 1
4= Agree 6 10 3 7 8 8 10 8 6 10
5= Strongly Agree 24 23 6 20 23 22 20 21 25 18
Total 169 173 103 150 160 164 156 154 163 149
Average 4.22 4.32 2.57 3.75 4 4.1 3.9 3.85 4.07 3.72
Standard Deviation 1.08 0.92 1.24 1.52 1.44 1.22 1.41 1.52 1.41 1.49
Z-test value 10.11 12.55 0.15 5.2 6.81 8.33 6.36 5.62 7.13 5.30
63 Methodology of the Study

1. HO: Product quality is not getting priority over cost
HA: Product quality is getting priority over cost.
We want to test the null hypothesis
HO: μ = 2.5
HA: μ > 2.5
n = 40
Since the sample size n > 30 so, we may use Z - test.
Here,
= 4.22
σ = 1.08
Z cal = ( –μ)/ (σ/√n) = 10.11
At 5% level of significance, follows Z distribution Z 0.05= 1.645
Since Z cal > Z tab, the null hypothesis is rejected. So at 5% level of
significance, it can be said that the product quality is getting priority over
cost.
64
Graphical Representation

65
0%
13%
13%
15%
60%
H-1
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

2. HO: Market penetration has not been used as pricing strategy
HA: Market penetration has been used as pricing strategy.
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here ,
= 4.32
σ = 0.92
Z cal = ( –μ)/ (σ/√n) = 12.55
At 5% level of significance, follows Z Distribution Z 0.05= 1.645
Since Z cal > Z tab, the null hypothesis is rejected. So at 5% level of significance, it
can be said that the market penetration has been used as pricing strategy in
RSRM.
66 Contd..

67
0%
8%
10%
25%58%
H-2
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

3. HO: Market skimming has not been used as pricing strategy.
HA: Market skimming has been used as pricing strategy.
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here
= 2.53
σ = 1.24
Z cal = ( –μ)/ (σ/√n) = 0.15
Since Z cal < Z tab, the null hypothesis is accepted. So at 5% level of significance, it
can be said that the Market skimming has not been used as pricing strategy in
RSRM.
68 Contd..

69
13%
55%
10%
8%
15%
H-3
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

4. HO: Segmented pricing has been used for products
HA: Segmented pricing has been used for products
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here
= 3.75
σ = 1.52
Z cal = ( –μ)/ (σ/√n) = 5.2
Since Z cal > Z tab, the null hypothesis is rejected. So at 5% level of
significance, it can be said that the segmented pricing has been used for
products in RSRM.
70 Contd..

71
15%
13%
5%
18%
50%
H-4
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

5. HO: RSRM is not covering the major city areas.
HA: RSRM is covering the major city areas
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here
= 4
σ = 1.44
Z cal = ( –μ)/ (σ/√n) = 6.81
can be said that RSRM is covering the major city areas.
72 Contd..

73
13%
10%
0%
20%
58%
H-5
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

6. HO: RSRM is not covering the rural areas.
HA: RSRM is covering the rural areas.
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here,
= 2.55
σ = 1.64
Z cal = ( –μ)/ (σ/√n) = 0.02
Since Z cal < Z tab, the null hypothesis is accepted. So at 5% level of
significance, it can be said that the Market skimming has not been used as
pricing strategy in RSRM.
74 Contd..

75
45%
13%
5%
18%
20%
H-6
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

7. HO: By-products is not being utilized.
HA: By-products is being utilized.
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here
= 3.9
σ = 1.41
Z cal = ( –μ)/ (σ/√n) = 6.36
Since Z cal > Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be
said that the By-products is being utilized in RSRM.
76 Contd..

77
10%
15%
0%
25%
50%
H-7
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

8. Ho: The Sales promotion policy of RSRM is not affected due to competitor’s Marketing
strategy.
HA: The Sales promotion policy of RSRM is affected due to competitor’s marketing
strategy.
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here,
= 3.85
σ = 1.52
Z cal = ( –μ)/ (σ/√n) = 5.62
said that the Sales promotion policy of RSRM is affected due to competitor’s marketing
strategy.
78 Contd..

79
18%
5%
5%
20%
53%
H-8
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

9. Ho: Profit margin sometimes cannot be compromised to maintain competitive price
HA: Profit margin sometimes can be compromised to maintain competitive price
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here
= 4.07
σ = 1.41
Z cal = ( –μ)/ (σ/√n) = 7.13
said that the profit margin of RSRM sometimes can be compromised to maintain
competitive price.
80 Contd..

81
10%
13%
0%
15%
63%
H-9
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

10. Ho: The promotional schemes of RSRM does not stimulate the products
demand.
HA: The promotional schemes of RSRM stimulate the products demand.
HO: μ = 2.5
HA: μ > 2.5
n = 40
Here
= 3.72
σ = 1.49
Z cal = ( –μ)/ (σ/√n) = 5.30
can be said that the promotional schemes of RSRM stimulate the products
demand.
82 Contd..

83
15%
13%
3%
25%
45%
H-10
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree

1. RSRM product quality is getting priority over cost as majority respondents are strongly
agreed with this statement.
2. Market penetration has been used as pricing strategy in RSRM as most of the
respondents strongly agreed with this statement.
3. Market skimming has been used as pricing strategy in RSRM, majority of employees
are disagreed with this statement. So we can say Market skimming has not been used
as pricing strategy in RSRM
4. Segmented pricing has been used for products in RSRM as majority of respondents are
strongly agreed with this statement.
5. RSRM is covering the major city areas as most of the employees are strongly agreed
with this statement.
84 Findings

6. RSRM covering the rural areas, most of the respondents strongly disagreed with this
statement. So we can say RSRM is not covering the rural areas.
7. By-products is being utilized as majority respondents are strongly agreed with this
statement.
8. The Sales promotion policy of RSRM is affected due to competitor’s Marketing
strategy as majority of employees are strongly agreed to this statement.
9. Profit margin sometimes can be compromised to maintain competitive price as majority
of employees are strongly agreed to this statement. .
10.The promotional schemes of RSRM stimulate the products demand as majority
respondents are strongly agreed with this statement.
85 Contd..

1. We can recommend RSRM to use Market skimming as pricing strategy for some
particular products as competitors are using this pricing strategy. They use
Market penetration as pricing strategy and also they do segmented pricing for
some specific products.
2. We have find out that RSRM only focus on major city areas. They are covering
the major city areas. But not focusing on rural areas. So we can recommend
RSRM should focus on covering the rural areas by promoting their products in
rural areas.
3. We can suggest RSRM to increase their promotional quality and quantity as well.
As the competitors of RSRM are very good in promotional activity. Also RSRM
do not focuses on TV promotions. So they should increase their TV promotions
and other promotional activities also.
86 Recommendation

 Establish and growing industry
 In 1990s actual development began
 Demand of steel is growing
 RSRM covers 20% of the total steel market
 Increasing their production from 8, 00,000 to 10, 00,000 M Tons
 Promotion strategy is not that much innovative or new
87 Conclusion

88
Do You Have Any Question???

Marketing Mix Strategy of Ratanpur Steel Re-rolling Mills (RSRM)

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