National Aluminium Company Limited, India

PROJECT REPORT

ON

MARKETING STRATEGY OF NALCO

Prepared by:

PITABASH BEHERA

Roll No.1410MBA13

Under the guidance of

Mr. J.P DASH

Assistant General Manager (Marketing)

Corporate office

NALCO, Bhubaneswar-751061

P.G DEPARTMENT OF BUSINESS ADMINISTARATION

SAMBALPUR UNIVERSITY, JYOTI VIHAR, BURLA, 768019, ORISSA

Visit us at:sumba@sumba.in

17th June 2011

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DECLARATION

‘

I declare that this project report entitled “MARKETING STRATEGY OF NALCO” prepared

by me is a confide record of work done at NALCO Bhawan, Bhubaneswar Corporate Office

located at Nayapalli,under the guidance and supervision of, Mr. J.P Dash, Assistant General

Manager (Marketing), Corporate office,NALCO,Bhubaneswar-751061

Pitabash Behera

SAMBALPUR UNIVERSITY

JYOTI VIHAR, BURLA,

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ACKNOWLEDGEMENT

I am thankful to NALCO for giving me an opportunity to conduct research work in their

esteemed organization. I am honored to take this opportunity to sincerely thank Mr. P.K.Parida,

ED (Marketing), NALCO, Bhubaneswar, who allowed me to work under Mr.J.P DASH,

Assistant General Manager (Marketing), NALCO, Bhubaneswar, for expressing his faith &

confidence in me by assigning this project work to me.

I wish to express my sincere gratitude to Mr. Mr.J.P DASH, Assistant General Manager

(Marketing), NALCO, Bhubaneswar,for giving this opportunity to have an enriching learning

experience in this company and also for his keen interest,guidance,continious

encouragement,support and help throughout the period of the project.

I also wish to extend my gratitude to Ms.Sumita Sahaya, Mr.S.L Bose ,Mr.J. R Kapoor & all

other members of NALCO, Bhubaneswar, for providing me the necessary information and

relevant data.

Lastly I thank all the respondents whose responses played a major role in completion of

this research work and without whose help I couldn’t have completed the project work.

Pitabash Behera

SAMBALPUR UNIVERSITY

JYOTI VIHAR, BURLA,

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CERTIFICATE

This is to certify that the Summer Training Project entitled “Marketing strategy of NALCO”

by Mr.Pitabash Behera, a student of Master of Business Administration at SAMBALPUR

UNIVERSITY,JYOTI VIHAR,BURLA,768019,ORISSA,has been completed under my

guidance and supervision.

Mr. J.P DASH

Assistant General Manager (Marketing)

Corporate Guide, NALCO,

Bhubaneswar-751061

17th June 2011

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CONTENTS

SLNO TITLE Page no

1 EXECUTIVE SUMMARY 7-7

2 INTRODUCTION 8-9

3 PROFILE OF ALUMINIUM 10-27

4 PROFILE OF NALCO 28-37

5 REVIEW OF LITERATURE 38-51

6 ANALYSIS AND FINDINGS 52-56

7 DOMESTIC PROCEDURE 57-61

8 TERM & CONDITIONS 62-66

9 PRICING PROCEDURE 67-67

10 DISTRIBUTION PROCEDURE 68-68

11 EXPORT PROCEDURE 69-71

12 CUSTOMER SATISFACTION 72-76

13 PROMOTIONAL PROCEDURE 77-78

14 SUGGESTIONS 78-78

15 CONCLUSION 79-79

16 BIBLOGRAPHY 80-80

LIST FO TABLE

Table no TITLE

1 Aluminium Applications

2 Ranking TOP 10 Countries In World With Respect To Aluminium Production

3 Production Of Alumina In India.(Unit In Tones)

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4

Ranking TOP 10 companies In World With Respect To Aluminium Production

5 Nalco Capacity

6

Region Wise Sales Structure Of Aluminium

7

Dominant Players Of Aluminium Industry

8 Aluminium Ore Capacity Of Top 10 Countries (In Million Tones)

9 Global Trend Of Aluminium Usage (Consumption):

10 Aluminium Usage Of Western World And India(%)

11 Country Wise Usage Of Aluminium In Different Sector

12 Usage Of Aluminium In India

LIST OF FIGURES

SLNO TITLE

1 Bohr Diagram

2 Aluminium Production

3 Entire Bayer Process

4 Alumina-Bauxite Refining

5 Aluminium Sustainability

6 The Marketing Mix

7 BCG Growth-Share Matrix

8 . SWOT Profile

9 . 7s Model

10 BCG Growth-Share Matrix Of Nalco

Executive Summary

Aluminum represents the second largest metals market in the world. Growing demand for the

lightweight metal is fuelled largely by the booming Chinese economy which already consumes

a quarter of the world’s aluminium production. Analysts predict an annual growth rate of 8 to

16% in the Chinese automotive industry up to 2010, a 15% increase in construction expenditure

in 2011 and a minimum of plus 16 million annual growths in urban population during the next

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8 years. According to analysts these factors will combine to see China consume 36% of world’s

aluminium production as early as 2010.

Aluminium Industries in India is one of the leading industries in the Indian economy. The growth

of the aluminum Metal industry in India would be sustained by the diversification and

exploration of new horizons for the industry. India has huge deposits of natural resources in form

of minerals like copper, chromites , iron ore, manganese, bauxite, gold, etc. The India aluminum

industry falls under the category of non iron based which include the production of copper, tin,

brass, lead, zinc, aluminum, and manganese.

The main operations of the of the India aluminum industry is mining of ores, refining of the ore,

casting, alloying, sheet, and rolling into foils. At present, Hindalco and Nalco are one of the most

economical in the production of aluminum in the world. For the sustenance of the growth the

aluminum industry in India has to develop research and development units to assist the

production and improve on the quality measures to keep a stringent quality control.

Marketing strategy is one of the important parts of company’s development. The objective of this

study was to help NALCO to know it’s own position in comparison to it’s competitors; to know

whether the strategy used by the company is effective; and to provide a proactive, planed &

informed approach to it’s own strategies in order to gain an upper hand. The study on Marketing

strategy is done by taking all aspects of strategy very keenly like SWOT, BCG , 7S MODEL ,

4P’s. and others procedures.

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1.0 Introduction

In the present competitive world every company wants to be the best in their segment of

business. So, company identifies its competitors with whom it has to compete and according to

it the company makes its strategy to survive in the market. If the company cannot compete in the

market then it will become a dog in the market. Now-a-days each and every company is too

aggressive to follow or lead the market. Therefore, it has become imperative to study the

Marketing strategy of the company and renew it time and again.

Coming to the aluminium industry, this is one of the leading industries in the Indian economy.

The growth of the aluminum Metal industry in India would be sustained by the diversification

and exploration of new horizons for the industry. So the proper use of marketing strategy is very

much important and that to in a planed way. Keeping these facts in view this study was

conducted to know the growth of NALCO as well as to find opportunities for expansion of

business and capturing the present market. The analysis of marketing strategy of NALCO was

based on the following parameters: 1) The Marketing Mix (The 4 P's of Marketing); 2) The BCG

Growth-Share Matrix; 3) SWOT Analysis; 4) 7S Framework. And others...

2.0 Objectives of the study

To help the company to understand its position with respect to its major competitors in

the market, and provide business competitive intelligence.

To understand the present Marketing strategy deeply so to provide a proactive, planned

and informed approach to its future strategies in order to gain an upper hand.

To analyze the present product line of the company that how effective they are.

To find out company’s strengths and weakness and also the threats as well as

opportunities.

To find out the work style of man power.

To observe the action of competitors, that might help the company to learn more about

the market.

To show the company new ways of expanding the business

3.0 The relevance of the topic for the company Today is the age of competitions so each and every company is aggressive in capturing new

opportunities available to gain market share. If the company is aware of its position respect to its

major competitors in the market, and have business competitive intelligence can act proactively

to gain an upper hand. Also the company should have knowledge about the effectiveness of their

products. Apart from these this study also helps the company to know its strengths and weakness

and also the threats as well as opportunities; its work style of manpower; its competitors; the

procedure of pricing. Domestic procedure, export procedure and show new ways of expanding

the business. These are quite pertinent aspects for the growth of the company.

4.0 Limitations of the Study

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The limitations of the study are linked to information gathered from various sources and the

interpretation of the information. Also with the exception of a few information sources like

forecasted financial statements, this is particularly the case if there are a lot of structural changes

happening in the sector and all the players are expected to have dynamic Marketing strategy to

capture their market.

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PROFILE OF ALUMINIUM