Case Study of Jsw Shoppe
JSW SHOPPE — A UNIQUE DISTRIBUTION MODEL FOR BRANDED
STEEL
Brief of Case
JSW is a manufacturing plant producing steel pipes, bends and sockets and was one of many low-cost steel producers in the world and favored bulk buyers. In April 2007, at Jindal Steel Works Ltd.’s marketing headquarters in Mumbai, the sales and marketing team headed by Jayant Acharya (director marketing), Sharad Mahendra (vice-president) had a debate on how to boost the presence of Jindal Steel Works steel in the market. After much debate, the most promising idea was the development of an organized retail format.
Steel was perceived as a business-to-business product. The company’s objective was to create a distinctive impression in the minds of end-users to ensure that they knew about various applications of the different steel products manufactured by JSW Steel so that its involvement in this category could be enhanced. The challenge was to brand the whole distribution channel and simultaneously increase the visibility of the brand manifold.
At one point, Jindal had considered the idea of forming an organized retail chain through which the, this could eliminate the role of middlemen and directly reach end-user customers. Furthermore, it would be possible to monitor the sales and performance of dealers, enable better logistics and supply chain management and give a clearer understanding of consumer preferences. Question was: what kind of model should be adopted for such a project.
Keeping the branding of Tata Steel and Essar Steel in mind Mahindra had two primary decisions to make: firstly, should the company venture into retail on its own or should it collaborate with the existing dealers? After the cost analysis he concluded that it would be extremely expensive for the company to venture into retailing on its own. With 160 dealers he needed to choose a model that would be suitable to all kinds of markets and could be easily replicated in all regions of the country.
A six-member
STEEL
Brief of Case
JSW is a manufacturing plant producing steel pipes, bends and sockets and was one of many low-cost steel producers in the world and favored bulk buyers. In April 2007, at Jindal Steel Works Ltd.’s marketing headquarters in Mumbai, the sales and marketing team headed by Jayant Acharya (director marketing), Sharad Mahendra (vice-president) had a debate on how to boost the presence of Jindal Steel Works steel in the market. After much debate, the most promising idea was the development of an organized retail format.
Steel was perceived as a business-to-business product. The company’s objective was to create a distinctive impression in the minds of end-users to ensure that they knew about various applications of the different steel products manufactured by JSW Steel so that its involvement in this category could be enhanced. The challenge was to brand the whole distribution channel and simultaneously increase the visibility of the brand manifold.
At one point, Jindal had considered the idea of forming an organized retail chain through which the, this could eliminate the role of middlemen and directly reach end-user customers. Furthermore, it would be possible to monitor the sales and performance of dealers, enable better logistics and supply chain management and give a clearer understanding of consumer preferences. Question was: what kind of model should be adopted for such a project.
Keeping the branding of Tata Steel and Essar Steel in mind Mahindra had two primary decisions to make: firstly, should the company venture into retail on its own or should it collaborate with the existing dealers? After the cost analysis he concluded that it would be extremely expensive for the company to venture into retailing on its own. With 160 dealers he needed to choose a model that would be suitable to all kinds of markets and could be easily replicated in all regions of the country.
A six-member