Buy custom Branding A Commodity - Tata Steel
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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 585 |
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Branding also leads to increase in customer loyalty, which ensures that customers of the company's products continue to buy them even in a downturn.
Commoditized steel was mostly sold in the spot market where prices have a tendency to be volatile. Branding the steel will lead to less dependability on spot market prices as company can charge a premium...
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Branding the steel will lead to less dependability on spot market prices as company can charge a premium. This will prevent the profit erosion during downturns and ensure consistent stream of revenues.
In order to increase the share of B2C segment, which is more price sensitive, Tata Steel initiated co-branding at retail level, small steel products branded or co-branded with other downstream manufacturers could well account for 8-10% of sales, and this will be less price sensitive in short run...
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