Casestudy on METAL PRODUCTS INDIA LTD P’s PRODUCT MS (mild steel) metal sections Usage: construction, furniture, rolling shuters, industrial shades 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 PROMOTION 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 FACTS 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 PROBLEMS • 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 REASONS New entrants AM & MMS started offering discounts of % to7% to the subdealers of BMT whereas they got only 4% from BMT SUGGESTIONS Distribution channel should be made shorten More emphasis should be given on personal selling ... customers PROMOTION Savings in freight coupled with better availability Of Material PLACE Distribute product through dealers Also sold their products to OEMs(Original Equipment Manufacturers)... 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 PROBLEMS • Market share decrease in Hubli and. .. more than 50% of market share • BMT get order of only those sizes which were not readily available with AM & MMS REASONS New entrants AM & MMS started offering discounts of % to7% to the subdealers