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CUSTOMER PERSPECTIVE ON STEEL IN CONSTRUCTION INDUSTARY

CUSTOMER PERSPECTIVE ON STEEL IN CONSTRUCTION INDUSTARY. RELATIONSHIP OF CONSUMER WITH STEEL IS LIFE LONG & EVEN BEYOND ….. POPULATION COVERED CONSUMER CUSTOMER. PERCENTAGE CONSUMPTION GOVT. AGENCIES -25 BULK USER -15 MIDDLE & SMALL CONTRACTORS -10

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CUSTOMER PERSPECTIVE ON STEEL IN CONSTRUCTION INDUSTARY

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  1. CUSTOMER PERSPECTIVE ON STEEL INCONSTRUCTION INDUSTARY

  2. RELATIONSHIP OF CONSUMER WITH STEEL IS LIFE LONG & EVEN BEYOND ….. • POPULATION COVERED • CONSUMER • CUSTOMER

  3. PERCENTAGE CONSUMPTION • GOVT. AGENCIES -25 • BULK USER -15 • MIDDLE & SMALL CONTRACTORS -10 • INDIVIDUAL CONSUMERS -50

  4. PRIMARY AND SECONDARY PRODUCERS • % AGE OF SECONDARY STEEL 60-65 • QUALITY • COST • PENETRATION OF CONSUMER MARKET BY SECONDARY PRODUCERS contd..

  5. PLORIFICATION OF TECHNOLOGY • RAW MATERIALS • PROCESSING METHODS • CHEMICAL COMPOSITION • STRENGTH GRADES • SPECIAL STEELS e.g. • RUST RESISTANT • QUAKE RESISTANT contd.. contd..

  6. WASTAGE REINFORCEMENT STEEL 5-7% STRUCTURAL STEEL 12 % • RESULTS IN INCREASED COST • DELAY IN COMPLETION • SPECIALLY IN REMOTE AREAS contd..

  7. QUALITY CONTROL • UNORGANISED SECTOR POOR • ORGANISED SECTOR CONSISTANT • REPLACEMENT NO SOLUTION contd..

  8. DELAY IN SUPPLY • 16 mm DIA & ABOVE • STRUCTURAL STEEL ABNORMAL • DURING 2003-06 MAIN PRODUCERS FULLY EXPLOITED SHORTAGES LOSING LOT OF FAITH AND GOOD-WILL contd..

  9. COST VOLATILITY • STEEL CONSTITUTES 17-22 % OF COST OF BUILDING • STEEL MANUFACTURERS BOOKED HEAVY PROFITS DURING 2003-06 OPERATING PROFIT APR 2001 APR 2007 17.6 46.5 7.6 33.7 contd..

  10. ENHANCE MARKET SENSITIVITY & CAPABILITY AGAINST RISK • REGULATE MARKET TO SET-UP STEADY & RATIONALE MARKET

  11. MISCELLANEOUS • SOURCE AUTHENTICITY ??? • RAW MATERIAL • MIDDLEMAN & BROKERS PROFITS • REPEATED TRANSPORTATION • NO EASY/ACCESSIBLE FEED BACK SYSTEM.

  12. RECOMMENDED ACTIONS • WIDEN AWARENESS CREATE CUSTOMER PULL … ASK PREMIUM FOR QUALITY • LARGER ROLE FOR DISTRIBUTORS CUSTOMER NEEDS ANY TECHNICAL HELP CORRECT ITEMS & APPLICATION FEED BACK

  13. RECOMMENDEDACTIONS • PROACTIVE MARKETING STRATEGY • DOWN-STREAM PROCESSING SERVICE CENTRES • HYPER MARTS • INCH CLOSER TO BUYER GEOGRAPHICALLY BUY ON SPOT SMALLER QUANTITIES BRING UNKNOWN TERRITARY CLOSER….. DOOR DELIVERY ?????

  14. GLOBALISATION, LIBERALISATION… DEMANDS SERIOUS CONSUMER PROTECTION • FREEZE STANDARDS • ENSURE EASY ACCESSIBILITY • CONSUMER AWARENESS • PROTECTION ALL ENCOMPASSING

  15. SINGLE WINDOW SERVICE • INQUIRY ORDER BOOKING ORDER TRACKING DELIVERY AFTER SALES SERVICE INCLUDING CONSULTANSY ESTABLISH E-STORES • SIGN MoUs

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