Case Study of Jsw Shoppe

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JSW SHOPPE — A UNIQUE DISTRIBUTION MODEL FOR BRANDED STEEL Brief of Case JSW is a manufacturing plant producing steel pipes, bends and sockets and was one of many low-cost steel producers in the world and favored bulk buyers. In April 2007, at Jindal Steel Works Ltd.’s marketing headquarters in Mumbai, the sales and marketing team headed by Jayant Acharya (director marketing), Sharad Mahendra (vice-president) had a debate on how to boost the presence of Jindal Steel Works steel in the market. After much debate, the most promising idea was the development of an organized retail format. Steel was perceived as a business-to-business product. The company’s objective was to create a distinctive impression in the minds of end-users to…show more content…
Other challenges involved in this transition included designing a sophisticated ordering process for the Shoppes to ensure a steady supply of material, branding the supply chain, negotiating a cost- and revenue sharing model with the dealers and designing the floor layouts and standardized elements for the Shoppe. From the dealer’s perspective though the company had come up with an elaborate model to penetrate into the market and build strong and long-lasting ties, many dealers accepted this concept reluctantly. Some dealers were of the opinion that the company wanted to do away with the dealers in the long-run. Dealers also pointed out that the company was providing standardized products and that sometimes the customers were unhappy with this as they were not getting the customized products as quickly as before. Dealers perceived that there would be growing interference from JSW in their day-to-day affairs. They wanted the company to simply supply the product and leave the selling aspect to them. They did not like the inspection of the Shoppe by the company officials and found it difficult to maintain the management information system (MIS) as per the standards prescribed by the company. Many complained that they had never used computers, and asking them to handle sophisticated software to maintain the MIS —

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