Tata Steel implements retail value management; creates long-term positive 'memory' among consumers
February 16, 2006

Tata Steel has successfully created long-term positive 'memory' among its consumers which has helped in strengthening the brand and increasing the top-of-the-mind awareness about its steel products. Amongst other things, Tata Steel has developed a process called RVM (Retail Value Management).

This initiative has been carried out with the company’s brands like Tata Tiscon, GC Shaktee and Tata Pipes. Retail Value Management reaches out to the end consumers and this has redefined the selling of steel by streamlining channel structure, introducing product improvements and changing the look and feel of steel shops

Through the RVM process, Tata Steel has attempted to map the market place in detail in terms of current distribution, channel capabilities, retailers, demand intensity and specific customer needs. The focused approach here is to increase the number of foot falls in their shops so that their business grows at a faster pace vis-à-vis other retailers. This requires support to them in terms of advertising, participation in events, authorising them to represent Tata Steel in panchayats, etc. Tata Steel also conducts specific training programmes for their sales personnel. Continuous consumer research has helped Tata Steel to identify the needs, in the market place. Feeding this information back to the retailers has helped them to further improve their position in the market place.

Tata Steel’s paper on Redefining Retail of Steel in India won the prestigious SP Jain Marketing Impact Award for the year 2006. The paper on retailing of steel in India was jointly written by Anand Sen, vice president — Flat Products and Peeyush Gupta, financial controller — Long Products of Tata Steel. “Redefining Retail of Steel in India” focuses on exploring how Tata Steel has changed retailing in last four years through an initiative called Retail Value Management. In the conclave held at Mumbai on February 11, 2006, Peeyush Gupta made the final presentation before the jury panel and was adjudged as the winner of SMIA 2006

This initiative undertaken by Tata Steel has won appreciation because of the impact it has had on consumers, channel members, opinion leaders and on the steel company itself.

Each year, S P Jain Institute of Management and Research at Mumbai invites best practices from corporate houses, which showcase the effectiveness of successful marketing stories in India. This award is especially given to marketing initiatives undertaken by various companies, initiatives that have greatly impacted the organisations' performance.