Steel Authority of India Limited (SAIL) Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: March 25, 2017

Marketing Strategy of Steel Authority of India Limited (SAIL) analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Steel Authority of India Limited (SAIL) marketing mix, help the brand succeed.

Steel Authority of India Limited (SAIL) marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Steel Authority of India Limited (SAIL) Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Steel Authority of India Limited (SAIL) Product Strategy:

The product strategy and mix in Steel Authority of India Limited (SAIL) marketing strategy can be explained as follows:

Steel Authority of India, or SAIL, is one of the largest steel manufacturers in the world based out of India. SAIL delivers customised steel products for industries and commercial use in its marketing mix. SAIL’s product catalogue includes SEMIS [Blooms, Billets, Slabs], Structurals [Beams, Channels, Angles, Crane Rails], Bars, Rods and Rebars, Wire Rods, Coils and Sheets, Plates, Pipes, electrical steels. SAIL also manufactures Rails, Wheels, Axles and Wheel Sets, Alloy Steel plants, Pig Iron, Parallel Flange beams and structurals. It provides customised steel as per demand of the client. With improved modernization, Steel Authority of India supplies a range of heavy and medium structural section, including Parallel and Flange Beams, which meets industrial quality and standards. The SAIL company produces semi-finished products, including blooms, slabs and billets, which are converted into finished products in the company's processing plant. Steel plates are used mainly for the manufacture of bridges, ships, storage tanks, boilers and railway wagons and boilers. SAIL produces steel bars and rods through a process of hot rolling billets in the finishing mills.


Image: company website


Steel Authority of India Limited (SAIL) Price/Pricing Strategy:

Below is the pricing strategy in Steel Authority of India Limited (SAIL) marketing strategy:

SAIL being a market leader and a government enterprise controls most of the pricing factors in the industry.

The pricing decisions in its marketing mix are guided by the price offered by bidders during the auction. Other factors include prices offered during auction sales, managing director’s approval and quantity of materials required. The average price offered during auction is taken into consideration based on the decision to fix the prices of materials and further breakup pricing are adopted. The economies of scale influence the pricing decision of SAIL as the larger quantity purchased will lead to lowering of prices. The standard pricing committee in SAIL reviews the price of various products and takes decision for increasing the profit. When taking pricing decisions, the following factors are taken into consideration related to material in the stock, forecast of next month, market conditions and transport facility


Steel Authority of India Limited (SAIL) Place & Distribution Strategy:

Following is the distribution strategy in the Steel Authority of India Limited (SAIL) marketing mix:

SAIL products are available in countries like at Japan, China, Korea, Taiwan, Vietnam, Singapore, Philippines, Indonesia, Malaysia, Thailand, Australia, Mexico, Europe (UK, Germany, France, Belgium, Italy, Spain, Netherlands, Portugal), Sudan, Oman, UAE, and many more, as well as countries such as Myanmar, Bangladesh, Sri Lanka and Nepal. Steel Authority of India has set up its operational units in major parts of the country, which includes integrated plants like Rourkela Steel Plant, Bhilai Steel Plant, Durgapur Steel Plant, Bokaro Steel Plant and IISCO steel plant. SAIL has three special plants at Salem, Durgapur & Bhadravati, and one subsidiary in different parts of the country.

It has spread across its sales office, dealers and warehouses for satisfactory fulfilment of steel requirement in any corner of the country at any time.


Steel Authority of India Limited (SAIL) Promotion & Advertising Strategy:

The promotional and advertising strategy in the Steel Authority of India Limited (SAIL) marketing strategy is as follows:

SAIL has always been visible through promotional and branding activities in its marketing mix. SAIL has sponsored the training and other expenses of wrestlers Sushil Kumar and Yogeshwar Dutt for preparation for the 2010 Commonwealth Games. Another wrestler taking part in the Olympics, Rajiv Tomar, is also being developed by SAIL for the Commonwealth Games. Through Make in India campaign, it has created awareness among entrepreneurs to associate with SAIL. It is working towards empowering small steel consumer in rural areas of the country by making steel available through its dealer network. SAIL International Trade Division has established its brand name globally by supplying Rails, Structurals, Merchant products, Wire Rods, Re-bars and other products. Its products are covered by certifications such as CE marking, TUV and 'U' mark required by sophisticated end uses in European markets. Steel Authority of India has undertaken several CSR projects to create awareness among people about the practices adopted for sustainable development. Few projects include Providing Borewell with motor and construction of 20KL GLSR and pumping at Laxmipuram Thanda of Kolagutta, Durgi Mandal, Guntur District, Andhra Pradesh and providing Skill development training in Smart Phone repairs at Gwalior. Hence this covers the marketing mix of SAIL (Steel Authority of India Limited).


About Steel Authority of India Limited (SAIL):

Steel Authority of India Limited (SAIL) is one of the top steel makers in the world. It is a public sector undertaking, which trades publicly in market, it is owned by government of India. It is headquartered in New Delhi, India. SAIL is 24th largest steel producer in the world and it operates and owns 5 integrated plants in India. The company has currently adopted expansionary measures and has undertaken modernisation programme involving upgrading and building new facilities. It is one of the fastest growing public sector units and the major SAIL integrated plants are Rourkela Steel Plant, Bhilai Steel Plant, Durgapur Steel Plant, Bokaro Steel Plant and IISCO steel plant. It has three special plants at Salem, Durgapur & Bhadravati, and one subsidiary in different parts of the country.

SAIL is one of the seven Maharatna’s of the country’s Central Public Sector Enterprises. SAIL manufactures and sells a broad range of steel products.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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