Introduction
Tata Tiscon, the leading pan Indian brand of steel construction rebars. The case starts with the
discussion between two managers: Keshav Vishwanth, the Chief of the Marketing of the retail
business vertical and Agam Gupta, who was associated with the brand TISCON in various capacities
ever since the launch in 2000.
They were discussing about possibility of the next big leap to be taken for being in the competition
and create uniqueness as always with their products and services.
Background
1. Professional distribution dream-
a. Pre-Liberalization (1990: Essential Commodity/ controlled by government body/
many more restriction over price maintenance issues/ Installing New capacities.
b. Post Liberalization: restrictions eradicated/ Company on verge of Increasing its
capacity and importance of dedicated distribution network.
Appointed Management consulting firm for professional distribution network, which
constitute Outbound logistics task force. It takes 2 years to articulate the distribution vision
to identify and formally appoint channel partners.
- Distributors were chosen for various territories across the country.
- Provide them proper training and development, vesting the exclusive right of
selling company’s product in territories.
2. Reaching out to retailers
Distributors were undercutting at will, selling opportunistically in each other’s area. Cross-
flow of material, hoarding and opportunistic pricing, controversies and blame games
become the order the day.
To resolve this issue: Constituted RVM Program (aim to examine each lever of the retail
chain, creating and capturing value at each stage for itself and stakeholders in the chain.)
a. New relationships
b. Active first-hand engagement with the consumption centers
c. Evolution of distributors organization’s capability
3. Capturing the trust platform:
a. came up with the concept of christening its retail outlets as “authorized dealer
outlet” in brand colors, thus providing identification to outlets which were stocking
TISCON (and ensuring consistent price over the territories)
b. A revolutionary concept of selling rebars by piece as opposed to selling it by weight,
so customers only need to count the bars and not worry about the weight for getting
cheated.
c. Brand tagline: Atoot Jod (unbreakable bond) signified two things, The unbreakable
association with customers and in other sense, with the mortars and bricks of
buildings.
4. The Competition Landscape: not with brand but actually between two ways of doing work
(1st: trust and relationships and 2nd: pure commercialism, discounts and commissions)
Problem identification:
1. Tata Tiscon would no longer limit itself to being a product brand, as it aims to became a one-
stop-shop (constitute the services as well)
2. The Company haven’t been able to come up with a step jump, a game changer in recent
times.
3. With some of officers joining competition, and accelerated the trend of copying our
distribution innovations, which sharpened the organized distribution network.
4. Some Leading cement companies are gearing to offer home solutions whereby they take
orders to supply all construction materials.
Series of steps taken in last decade to spring board to next big leap:2013
After winning the Demming Award in 2008, becomes the first steel company outside of Japan to win
the award.
The team dabbled with the idea of an online material calculator along with FAQs of the construction.
The idea of a “One Stop Shop” which would aggregate all kinds of construction material and also
connect buyers to engineers and masons was also discussed.
1. Design Studio:
Aim: To provide the customer with all drawings including those which would specify the
plumbing and electrical connections, also provide a scheduling plan and a bill of material.
Process: partnering with local engineers, but the cost of providing customized plans, to a
customer base which was not used to pay for such services.
Reactions: People say, it is a good package but not ready to compromise with customization.
Result: the whole plan collapsed (Sr. Manager) and putting the project on hold.
2. Superlinks
Aim: To made customer’s willingness to purchase the readymade “Stirrups”
Process: setup an automated machines at distributor’s premises.
Reactions: Customer lapped up the saving of labor time and energy.
Result: its sales picked up, and ramp up across the country was smooth and successful.
3. Supervisory Services
Aim: To offer to the customer the assurance of supervision of the construction activity at
important juncture and ensure that there were no gaps between the structural design on
the paper and actual structure on the ground.
Process: visit to the construction site were carried out by the technical personnel employed
by the distributor and the service itself was to be “sold” through the retail outlet when the
customer visit to buy sariya.
Reactions: The customer was appreciative of services of this kind, but they wanted it for free
Result: the team offered free supervisory services to a few house builders, but in
consequence the offer visit often went waste. So, the project is put on hold.
Recommendation:
1.
