product and brand management case study with solution

4 P’s PRODUCT MS mild steel metal sections  Usage: construction, furniture, rolling shuters, industrial shades.. Case study on METAL PRODUCTS INDIA LTD...  PRICE Volume discount

4 P’s

 PRODUCT

MS (mild steel) metal sections

 Usage:

construction, furniture, rolling shuters, industrial shades

Case study

on METAL PRODUCTS INDIA LTD.

 PRICE

 Volume discount of 7% to BMT(Bangalore Metal Traders)

 BMT keeps 3% & gives away 4% to sub-dealers

 Other dealers volume discounts varying from 3% to 7%

 Price to dealers were decided by manufacturer

 Dealers marked up the prices by 7% to 8%

 Manufacturer have no control over price charged by dealers to the customers.

 Savings in freight coupled with better availability Of Material

 PLACE

 Distribute product through dealers

 Also sold their products to OEMs(Original Equipment Manufacturers)

 Dealers have sub-dealers located at different places to penetrate the market

 BMT the largest dealers of south India off- take

 20% of MPIL’s production

 Other dealers off-take 80% of MPIL’s production

 In year 1996-97 , 2050 MT lifted by BMT

 In year 1997-98 , 850 MT lifted by BMT

• Market share decrease in Hubli and Belgaum

which is less than 30%

• AM(Adarsh Metals) & MMS(Mahavir Metal Sections) hold more than 50% of market share

• BMT get order of only those sizes which were not readily available with AM & MMS

 New entrants AM & MMS started offering discounts of 6 % to7% to the

sub-dealers of BMT whereas they got only 4% from BMT

 Distribution channel should be made shorten

 More emphasis should be given on personal selling

