Roti, Kapda aur Makan” still remain areas of critical concern for a large part of India’s population. However, today this has become an individual or personal aspiration, while the collective aspiration has shifted to “Bijlee, Sadak, Pani!”

At the turn of the 21st Century, when Tata Shaktee, Tata Steel’s Steel Roofing product was launched, India had over 138 million rural houses, of which only about 5% were covered with asbestos roof, material that steel sheets had the potential to replace. With a market size of Rs 2000 Crore, it offered tremendous potential to the Steel Company. Also, the 31% covered by earthen tiles offered a mind-boggling growth opportunity.

Till then Steel Roofing Sheets, however, were not only sold in a large number of sizes, different lengths, thickness and quality, but also were retailed under different generic names such as chaddar in the North, Patra in the West, Tina in the East and Tadag in the South. The consumers, largely lacking literacy and inadequate information of the products were susceptible to being duped, many a time losing the scarce resources they had at hand to buy the product.

The Tata Shaktee team gave itself the extremely onerous task of opening communication channels with consumers, to create trust, establish a unique identity and an organised distribution channel to serve Rural India.

Market Opportunities

• To create consumer preference by meeting unfulfilled needs
     
• Shape the market and improve returns in a high potential market.

Challenges before the team

• Create awareness of the offering amongst rural consumers
    
• Ensure availability of product in the most efficient manner.

The vision that the Company had for Tata Shaktee was to make it a market leader in the steel roofing sheet market in India. The key initiatives undertaken by the Company to being credibility and thereby derive value from this commodity market were :

Unique Identity

Tata Steel branded each sheet with “Tata Shaktee” and communicated to the buyer that the product belonged to a trusted source. The Company communicated product specifications, uniform prices with price list and value offerings through retail outlets and local communication media.

Robust Distribution Network

Among the challenges that the Tata Shaktee team had faced during the launch of the product was that channel partners had low involvement in any particular brand, were extremely margin sensitive, were highly opportunistic and did not bother with service. The unregulated network believed in duping customers rather than creating an environment of trust.

The Tata Shaktee team took initiatives which were extremely unique in this “commoditised” market. They included :

• development of a dedicated sales force with uniform HR policies
    
• 95% of the country was covered by mapping of the retail universe
   
• 12000 distribution areas were mapped and segmented
   
• each distributor’s territory was clearly demarcated and a network of authorised retailers created
   
• Segment specific offerings were developed
   
• Training was provided to enhance skills.

Through regular communication, retailers were kept constantly informed about the demand supply situation and developments in the marketplace. As a result, the Company also developed an intimate relationship with the customer through haats, choupal meets, sarpanch meets and use of local art forms and vehicles to ensure maximum impact.

Today, Tata Steel has earned their trust, with footfalls and realisations from its special retail outlets growing. Tata  Shaktee’s Brand Equity Index has reached 5.1 against 2.2 of its closest competitor. It has made healthy gains in market share and developed premium absorption capacity. The estimated revenue that Tata Shaktee will earn in FY07 is Rs 850 crores, up from Rs 656 crore in FY06. The Company intends to continue to leverage its strengths and add new products to grow its market. It will offer complete roof solutions and leverage the potential of its exclusive Tata Shaktee Shops, while at the same time ensuring that its rural customers continue to benefit from a quality product which he can rely on, at a price that he is happy purchasing it.