CONTENTS SLNO 1 2 4 5 6 9 12 13 14 15 16 TITLE EXECUTIVE SUMMARY INTRODUCTION PROFILE OF NALCO REVIEW OF LITERATURE ANALYSIS AND FINDINGS PRICING PROCEDURE

CUSTOMER SATISFACTION PROMOTIONAL PROCEDURE SUGGESTIONS CONCLUSION BIBLOGRAPHY Page no 1 2 4-10 11-25 25-30 31 32 37-38 39 40 41

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
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already consumes a quarter of the worlds 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 8 years. According to analysts these factors will combine to see China consume 36% of worlds 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 companys development. The objective of this study was to help NALCO to know its own position in comparison to its competitors; to know whether the strategy used by the company is effective; and to provide a proactive, planed & informed approach to its 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 , 4Ps. and others procedures.

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
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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... 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 find out companys 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

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.

Limitations of the Study 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.

PROFILE OF NALCO
Mission "To develop and strengthen technology expertise pertaining to Bauxite, Alumina and Aluminium in the next five years, which will enable NALCO to be self sustained in the field of Bauxite mining, Alumina Refining and Aluminium Smelting technology. To achieve growth in business with global competitive age providing satisfaction to the customers, employees, share holders and community at large. Vision "To set up world class, state of the art research and development facilities to enable NALCO to achieve excellence and sustainability in process, product and technology in the field of Bauxites, Alumina, Aluminum, Power and allied areas including downstream products. Objectives To maximize capacity utilization. To optimize operational efficiency and productivity. To maintain highest international standards of excellent in product quality, cost efficiency and customer service. To provide a steady growth business by technology up gradation, expansion of diversification. To have global presence and earn foreign exchange. To maintain leadership in domestic market. To install financial discipline at all levels for achieving cost and budgetary controls , optimize utilization of working capital and effective cash flow management To maximize return on investment To develop a strong R&D base and increase business development activities.

To promote a result oriented organizational ethos and work culture that empowers employees and helps realization of individual and organizational goals.

AWARDS Indra priyadarshini Vrikshamitra Award by Govt.of India-1994 First CAPEXIL Export Award-1988 London Metal Exchange Registration-May 1989 First EEPC Export Award-1998-99 Indra Gandhi Paryavaran puraskar by Govt. of India-2000 FIEO Niryat Shree Awartds-2005-06 Navaratna Status-2008 Premier Trading House Status-2009 500th shipment of Alumina from Vizag port-2010 Best listed CPSE Awards-2010 ISO 9001:2000,ISO 14001,OHSAS 18001 & SA 8000 Certifications Nalco achieves record production and sales in 2010-11

Nalco Today Today as an ISO 9001 company, Nalco has emerged as the largest integrated BauxiteAlumina-Aluminium complex in Asia enabling India to witness a quantum jump in Alumina and Aluminium production. The company for the final time created exportable surplus Alumina and Aluminum production. The company for the first created exportable surplus in Alumina and helped India top focus on its massive Bauxite resources in the east coast export oriented Aluminum plants. Segments of Nalco NALCO has emerged as the largest integrated Bauxite-Alumina-Aluminium complex in Asia enabling India to witness a quantum jump in Alumina and Aluminium production. The company for the final time created exportable surplus Alumina and Aluminium production. The company for the first created exportable surplus in Alumina and helped
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India top focus on its massive Bauxite resources in the east coast export oriented Aluminum plants. The integrated complex has five segments like Bauxite mine, Aluminum refinery, Aluminum smelter, Captive power plant and port facilities. Raw Materials Used The basic raw materials required for the production of aluminum are electronic energy alumina, CGM line white brand, caustic soda, hydrate alumina, some other raw materials required for smelter like calcinade petroleum, coke and coal for pitch, available from Baruni-Haladia-refineries and vizag steel plant respectively, the actual requirements of other raw material of this plant as follows. Calcined petroleum coke-87.100 tones Coal tan pitch-27,000 tones Heavy fuel oil 12,390 tones Heal transper fluid- 3000 Process water- 20000M Salient Features Micro processor based burner management system for optimum thermal efficiency. Computer controlled data acquisition system for online monitoring. Automatic turbine run-up system Specially designed barrel type high pressure turbine. Electrostatic precipitators with advanced intelligent controllers. Wet disposed of ash. The raw water for the plant is drain from river Brahmani through a 7 KM long double circuit pipe line, discharging 7200 m3 /hour of water. The coal demand is met from a mine of 3.5 million tone capacity opened up for Nalco at bharatpur in talcher by Mahanadi coal fields ltd. The power plant is interconnected with the static grid.

Products Aluminium Metal (CG, EC&LME grades) Ingots (Standard Ingots,sow Ingot,T-ingots) Wire Rods Billets (in 5 size) Alloy wire rods Cast strips Alumina & Hydrate 1.Calcinated Alumina 2.Alumina hydrated Specialty Alumina & Hydrates Rolled products (coils & sheets)

(INGOTS)

(SOWS INGOTS)

(BILLETS)

(T-INGOTS)

(WIRE RODS) Plant Location

(ROLLED PRODUCT)

Nalco Nagar is situated within 5km of Angul town. Angul was once a tidal state. It is fairly big and bustlingly town on the national highway no.42 which is the main highway connecting Bhubaneswar with Raipur (MP), sambalpur, sundarghar and Rourkela. Nalco has established its smelter plant, captive power plant and its town ship close to the national highway. The place is easily accessible from Cuttack and Bhubaneswar by road and rail. Today in the vicinity of Angul a large number of industries have come up. The other important industry in and around this place are heavy water of atomic energy, Commission talcher, coal mines of mahanadi coal fields limited and thermal power plants of NTPC. The Nalco town ship known as Nalco nagar is modern and well planned. In addition to 2947 dwelling units and trainees hostel with 300 rooms, Nalco nagar may civic facilities like community centres, clubs , stadium , swimming pool, market complexes etc. it has establish 50 bedded hospital with ultra modern facilities. Organizational Structure Nalco is a govt. of enterprise under the administration control of the ministry of mines. The company is managed by board of directors appointed by the president of India. The board consists of 16 directors including the chair-cum managing director of the company. There are 6 full time functional directors heading production, finance project & technical,
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personnel &administrative disciplines. There are our senior govt. officials nominated to the board as directors on ex-officio basis. Besides there are 2 non official directors in the board appointed to present the interest of financial institution, allied industry & R&D objectives of the company. Thus the board of company is a full of highly experienced & outstanding potentials drawn from various fields of specialization. The management control system is based on delegation of authority & individual accountability for results. The responsibility and authority to take decisions on various matters are delegated by the chairman-cum-MD to different levels in the management. Human Resource About 7393 persons possessing a verity of skills, qualifications and competence are at the services of Nalco, Nalco is truly youth with the average age of the employees being below 40 years. Starting with a core group of 262 employees in the 1982, the progressive growth in man power has taken place in a planned manner matching the different stages of the project. Composition of Manpower Skilled personnel-3717 Semi skill & unskilled personnel- 1041 Executives-1783 Supervisors-852 TOTAL : 7393 (Human Resources) Overall Industrial Relations Situation There are trade unions operating in the organization. But they are much concerned with their rights rather than duties. The trade union leaders are much interested in the training tours and other benefits provided by the company and least concerned about the workers problem and other activities for the development of the organization. They are guided by their self interest. Common employees are not much committed towards trade unions.
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There is no recognized trade union. Before 3/4 year there was a trade union was recognized by secret- ballot method Organizational Culture Nalco being a profitable public sector unit concerned about good relationships among the superior and subordinate, employee etc. in normal time people work loosely, thinking that the company is fulfilling its target. So there is no need for hard work. But in 1998 while it was facing a bad situation people devoted their heart and soul to the organization. The worked for day and night and brought the situation under control. The employees of Nalco are given a very big package with number of incentives and other facilities. But these actually do not motivate employees. Because incentives work for a short time. It is the fear motivation which works behind every employees and makes the employee motivated towards their respective jobs. Employees in Nalco are individually accountable towards their work. If a task is given to them, they accomplish the task in a proper manner and in a proper time.

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REVIEW OF LITERATURE Marketing Strategy A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. A marketing strategy is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Basic theory The basic theory of marketing strategy is: Target Audience Proposition/Key Element Implementation The Five D's Tactics and actions A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service."

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A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives[5]. Plans and objectives are generally tested for measurable results. A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies: Leader Challenger Follower Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. Product differentiation Market segmentation

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Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: 1.Pioneers 2.Close followers 3.Late followers

Growth strategies - In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration Vertical integration Diversification Intensification A more detailed scheme uses the categories: Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies. Strategic models Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. The Consumer-Centric Business There are a many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer,
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Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. The Marketing Mix (The 4 P's of Marketing) Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:

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Fig 4. The Marketing Mix These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response. i) Product Decisions The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made: Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services ii) Price Decisions Some examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Suggested retail price
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Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination iii) Distribution (Place) Decisions Distribution is about getting the products to the customer. Some examples of distribution decisions include: Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics iv) Promotion Decisions In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include: Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget

Limitations of the Marketing Mix Framework

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The marketing mix framework was particularly useful in the early days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.

The BCG Growth-Share Matrix The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability.

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Fig 5. BCG Growth-Share Matrix This framework assumes that an increase in relative market share will result in an increase in the generation of cash. This assumption often is true because of the experience curve; increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption. Henderson reasoned that the cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash. By investing to become the market share leader in a rapidly growing market, the business unit could move along the experience curve and develop a cost advantage. From this reasoning, the BCG Growth-Share Matrix was born.

The four categories are:

Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture. Question marks - Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash comsumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

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Stars - Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis. Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined soley by whether it had become the market leader during the period of high growth. While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram. Limitations The growth-share matrix once was used widely, but has since faded from popularity as more comprehensive models have been developed. Some of its weaknesses are: Market growth rate is only one factor in industry attractiveness, and relative market share is only one factor in competitive advantage. The growth-share matrix overlooks many other factors in these two important determinants of profitability.
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The framework assumes that each business unit is independent of the others. In some cases, a business unit that is a "dog" may be helping other business units gain a competitive advantage. The matrix depends heavily upon the breadth of the definition of the market. A business unit may dominate its small niche, but have very low market share in the overall industry. In such a case, the definition of the market can make the difference between a dog and a cash cow. While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing a corporation's business portfolio at a glance, and may serve as a starting point for discussing resource allocation among strategic business units.

SWOT Analysis
SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late 1960's by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood, IL: Irwin, 1969). The General Electric Growth Council used this form of analysis in the 1980's. Because it concentrates on the issues that potentially have the most impact, the SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation.The following diagram shows how a SWOT analysis fits into a strategic situation analysis. SWOT Profile The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a

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foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats. Internal Analysis The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as: Company culture Company image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency Operational capacity Brand awareness Market share Financial resources Exclusive contracts Patents and trade secrets The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses. External Analysis

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An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunities can arise when changes occur in the external environment. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Changes in the external environment may be related to: Customers Competitors Market trends Suppliers Partners Social changes New technology Economic environment Political and regulatory environment The last four items in the above list are macro-environmental variables, and are addressed in a PEST analysis. The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats. SWOT Profile When the analysis has been completed, a SWOT profile can be generated and used as the basis of goal setting, strategy formulation, and implementation. The completed SWOT profile sometimes is arranged as Fig When formulating strategy, the interaction of the quadrants in the SWOT profile becomes important. For example, the strengths can be leveraged to pursue opportunities and to

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avoid threats, and managers can be alerted to weaknesses that might need to be overcome in order to successfully pursue opportunities. Strengths 1. 2. Weaknesses 1. 2. 3. Opportunities Threats

1. 2. 3.

1. 2. 3. Fig 5. SWOT profile

Multiple Perspectives Needed The method used to acquire the inputs to the SWOT matrix will affect the quality of the analysis. If the information is obtained hastily during a quick interview with the CEO, even though this one person may have a broad view of the company and industry, the information would represent a single viewpoint. The quality of the analysis will be improved greatly if interviews are held with a spectrum of stakeholders such as employees, suppliers, customers, strategic partners, etc. SWOT Analysis Limitations While useful for reducing a large quantity of situational factors into a more manageable profile, the SWOT framework has a tendency to oversimplify the situation by classifying the firm's environmental factors into categories in which they may not always fit. The classification of some factors as strengths or weaknesses, or as opportunities or threats is somewhat arbitrary. For example, a particular company culture can be either a strength or a weakness. A technological change can be a either a threat or an opportunity. Perhaps

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what is more important than the superficial classification of these factors is the firm's awareness of them and its development of a strategic plan to use them to its advantage.

7S FRAMEWORK
It's all very well devising a strategy, but you have to be able to implement it if it's to do any good. The Seven S Framework first appeared in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: it's sometimes known as the McKinsey 7S model. Managers, they said, need to take account of all seven of the factors to be sure of successful implementation of a strategy - large or small. They're all interdependent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you. Oh, and the relative importance of each factor will vary over time, and you can't always tell how that's changing. Like a lot of these models, there's a good dose of common sense in here, but the 7S Framework is useful way of checking that you've covered all the bases. The Seven Factors are:

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Fig 6. 7s Model Strategy Structure Systems Style Staff A set of actions that you start with and must maintain How people and tasks / work are organised All the processes and information flows that link the organisation together How managers behave How you develop managers (current and future)

Superordinate Goals Longer-term vision, and all that values stuff, that shapes the destiny of the organisation Skills Dominant attributes or capabilities that exist in the organisation There's a lot more to the 7S framework of course, especially how you apply it in practice. It may appear as an outmoded concept in today's environment of "constant change and learning", but the basic principle that you've got to watch a lot of factors all the time as you implement any strategy still applies. Just don't let the apparent rigidity of the framework make you heavy on your feet. For more about strategy and strategic management in general, look out "Strategic Management" by Dess & Miller (McGraw Hill 1993). It's not a bedtime read, but is a
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useful reference work of ideas and case studies. If you want more on the 7S model, read Richard Pascale's subsequent "Managing on the Edge" (1990).

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ANALYSIS AND FINDINGS Marketing Strategy Analysis of NALCO

4PS of NALCO i) Products Calcined alumina. Alumina metal. Zeolite. Special products. Alumina hydrate. Rolled products.

ii) Pricing The pricing strategy of NALCO is based on: LME (London Metal Exchange). So, the price changes according to the changes in the LME. Demand of the( Al )market or demand of the customers. Pressure from competitors. As Nalco also has some strong competitors , pricing is done by keeping a keen view on the competitors. Overall, the pricing strategy of Nalco generally updated at a monthly basis but it changes according to the situation.

iii) Promotion As the companys present market is a buyers market, So its not required to spend money. but some where as a global company it need some promotion, NALCO use to do

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some small promotional activities, which we can see in form of CSR (Corporate Social Responsibility) like organizing cricket matches, funding journals etc

iv) Place Under this segment we will consider about how company move its products from place of production to place of consumption. For this NALCO has its stockyards almost all around the country which makes its logistics more efficient. The current stockyard are 1. BADDI 2. Bangalore 3. Biwandi 4. Chennai (SY) 5. Faridabad 6. Jaipur 7. Kolkata 8. Silvassa 9. Vizag

BCG GROWTH-SHARE MATRIX OF NALCO STAR T.Ingots QUSTION MARK Billets

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CASH COW Aluminum sows Calcined alumina Alumina hydrate

DOG Rolled products Special products Zeolite

Fig 7. BCG Growth-Share Matrix of Nalco

SWOT ANALYSIS OF NALCO

Strengths It has a very rich bauxite mine. Nalco is one of the lowest cost procedure in its segment . It is one of the pioneer in the field of aluminium It has a strong technical man power. It uses one of the fully integrated operations
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Strong cash reserves with no debt Robust volume growth on back of recent expansion plans. Being a Navratna company it has a very strong good will. Weakness Being a public sector company , it has a slow decision making process compare to any private sectors. Shortage in coal linkages has lead to higher share of imported coal at relatively much higher price. The conservative policy like debt-free company during an major bull run also may hampered the Growth in long run. Its product mix basically targeting to primary product segments. As Nalco is now in 30th year it needs new technologies to compete. Opportunities Despite current crisis, India is likely to remain second fastest growing economy Government thrust on infrastructure would also continue albeit at modest pace Automobile, consumer durables and engineering sectors are at very nascent stage compare to global scale Low per capita housing and booming retail industry would drive construction demand Low per capita aluminum consumption compare with other countries offers a higher growth Rich Geological Resource base Growing Skilled and Technical Human Capital. Threats Instability in LME aluminum price (currently at five year low) will affect margin badly Significant disruption in demand in developed countries from key consumer segment Competition from scrap imports and very high threat from substitute materials particular plastics
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Progressive reduction in aluminum import tariffs Bureaucratic nature of Government - Socio-Political interventions (in leasing mines) Deficit infrastructure

7S STRATEGY MODEL DESCRIBING (NALCO)

Structure: How people and tasks / work are organized. NALCO is one of the well organized organization. The role of every employee is very clear to them. They are aware of the performance expected from them, So according to that they perform. Strategy: A set of plan for the future actions that you start with and must maintain. Strategy applied by NALCO is basically a long term strategy. System: A set of actions that is according to the strategy. In system we will consider the flow of information. Here the flow of information is from top to bottom i.e. the decision is taken at the upper level. Style: How managers behave. As NALCO is one of the navaratna certified organization, it is very simple to say the upper level employees are very much cooperative to their subordinates, because of which they are today at this stage. Staff: How you develop managers (current & future ). The staffing in NALCO is very good every department is headed by different chief manager, who are really deserving , and further more they are again provided with junior managers who are there to provide cooperation. So we can say the span of control is wide for the director but it is very easy to handle because of this staffing. Superordinate Goals: Long term vision , and all that values stuff that shapes the destiny of the organization . Super ordinates goals in case of NALCO is same as that of the mission of the organization.

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Skills: Dominant attributes or capabilities that exist in the organization. As the selection procedure of NALCO is very stringent, quality people are selected as employees. Therefore NALCO has a good reservoir of skills.

PRICING PROCEDURE OF NALCO,INDIA

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The pricing committee of Nalco(domestic),fix the price of all the products according to the demand & supply of market, prevailing LME price, Exchange rate, Inventory status of NALCO,Govt. Policy (Tax, Duty) along with all the term & conditions of company. CMD (Chairman-cum-Managing Director) is authorized to make appropriate changes in the sale of the companys products as and when necessary based on the recommendation of pricing committee to be constituted by CMD consisting of senior officers who would review the market situation periodically and put it recommendations for approval. CMD has constituted a pricing committee, consisting the following officer : Executive Director (Marketing) General Manager (Marketing) Dy.General Manager (Marketing-Finance) Dy General Manager (Marketing-Domestic)

CUSTOMER SATISFACTION OF NALCO

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The very success of any enterprise depends largely on its ability to satisfy and retain their customers. Any business without a focus on customer satisfaction is at the mercy of the market. Without loyal customers eventually a competitor will take away your customers and your customer retention rate will decrease. A successful enterprise knows very well what the key drivers of satisfaction are, the areas that will have the greatest impact in improving customers overall perception of our service. Best practice companies also monitor customer feedbacks over time and communicate a strong message about their commitment to serve their customer. A s p e r t h e m a r k e t i n g concept, a firm can realize all its business goals by g e n e r a t i n g c u s t o m e r satisfaction. The idea may sound somewhat utopian. In reality, it is an eminently workable proposition. The satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations , the customer is dissatisfied. If the performance matches the expectations , the customer is satisfied. If the performance exceeds the expectations, the customer is highly delighted. Many companies aim for high customer satisfaction, because the customers who are just satisfied find it better to switch to other companies when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bonding with the brand. The result is high customer loyalty. Xeroxs senior management believes that a very satisfied or delighted customer is worth ten times as much to the company as a satisfied customer. A very satisfied customer is likely to stay with Xerox many more years and buy more than a satisfied customer will. Benefits of Measuring Customer Satisfaction Learning strategies for improving services Learning customer expectations Identifying common reasons for customer dissatisfaction Improving customer retention

Making customers feel valued

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 Uncovering missed opportunities to demonstrate your capacity to solve problems and win back customers confidence Improved competitive position Helping to decide where best to spend improvement dollars to make sure you spend it where it matters the most.

Major Customers of NALCO ( Domestic NALCO plays a vital role in the Indian Aluminium industry. The Aluminium producing capacity of the country has witnessed a quantum jump after the entry of NALCO. Through its quality products it gets about 800 direct reputed customers and some of them are cited below: JINDAL ALUMINIUM LTD NATIONAL SMALL INDUSTRIES CORPORATION HINDUSTAN SEALS LTD BAJAJ AUTO LTD GOETZE INDIA LTD TATA MOTORS LTD GANGA JAMUNA LTD HIREN ALUMINIUM LTD STERLITE INDUSTRIES LTD METAL POWER COMPANY LTD SUNDARAM CLAYTON LTD INDIA PISTONS LTD ORDNANCE FACTORY AMBAJHARI HINDUSTAN AERONAUTICS LTD BHILAI STEEL PLANT ROURKELA STEEL PLANT VISAKHAPATNAM STEEL PLANT BOKARO STEEL PLANT

Customer Satisfaction Strategy Overview

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When we talk about customer service or satisfaction, we talk about creativity. It allows us to handle or diffuse problems at hand or later on in the process of conducting everyday business. We talk about how or rather what the organization has to do to gain not only the sale but also the loyalty of the customer. He wants to know the pay of the transaction both in the short and long term. We want to know what the customer wants; we want to know if our customers are satisfied. Satisfaction of course means that what we delivered to the customer met his / her approval. We want to know if the customer is delighted and is willing to come back. Measuring customer satisfaction is a sound business strategy because: It is expensive to win new customers and customer retention is critical for business success. It is less expensive to sell additional products and services to existing, satisfied customers. Problems encountered by customers negatively impact their loyalty; if we disappoint them they may start looking for alternatives. The customer contact centre has significant impact on customer loyalty, and in many businesses the call centre has more contact with the customer than any other part of the business. Most customers will not take the initiative to complain; they will not tell you, they will tell their friends and co-workers how good or bad you were. Word of Mouth is the best and the least expensive way of advertising and customers are much more likely to tell others about negative experiences than positive experiences.

Tools For Tracking Customer Satisfaction Strategy

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Customer satisfaction surveys: Studies show that although customers are dissatisfied with one out of every four purchases, less than five percent will complain. Most customers will buy less or switch suppliers. Responsive companies measure customer satisfaction directly by including periodic surveys. While collecting customer satisfaction data, it is also useful to ask additional question to measure repurchase intention and to measure the likelihood or willingness to recommend the company and brand to others. Complaint & Suggestion System: A customer-centered organization makes it easy for customers to register suggestions and complaints .Some customer-centered companies establish hotlines with toll free numbers. Companies are also using websites and e-mails for quick two-way communication Ghost Shopping: Companies can have people to pose as potential buyers to report on strong and weak points experienced in buying the companys and competitors products. These mystery shoppers can even test how the the companys sales personnel handle various situations. Customer Complaints When you receive a customer complaint, you know exactly where you stand with the customer. This is especially true if the organization broadly interprets customer complaints as any negative feedback that the organization receives. Whether the complaint is justified or not is irrelevant; perception becomes the customers reality. But trouble starts when organizations rely on customer complaints as their jointly gauge of customer perceptions. The weakness inherent in relying solely on complaints is two fold. First, many dissatisfied customers simply do not bother to complain. They have decided that it is not worth the time and effort for them to communicate the problem. In fact, they might just decide that it is not worth the risk of placing another order. The organization might lose a customer and not even under stand what went wrong. And it is much more expensive to regain a customer that to retain one. Second,
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complaints, by definition provide only negative feedback. An organization cannot understand the full range of customer perceptions based on negative feedback alone. A system for gathering customer perceptions should present a balanced picture of where the organization stands, which does not happen when customer complaints are isolated from other aspects of customer relations. That being said, customer complaints can be an effective part of an overall system for gathering data on customer perceptions. The trick is to pair this method with at least one other, the combination of which will give an organization a more accurate view of its status in customers minds. Two specific types of complaints can be especially useful in maintaining an organizations success repeat complaints (eg. Complaints about the same product, for the same reason or from the same customer) and complaints that pose significant risk to the organization. Analysis of complaint data can identify these phenomena, and management can then take appropriate action on the underlying issues. In these cases, the complaint system becomes a critical survival barometer for the organization. When complaints are not promptly resolved, frustrated customers seek redress in different agencies or at different parts or levels of the same agency, resulting in duplicate effort and compounding costs. There are costs associated with a poor complaint system and there are benefits associated with a good one. Studies have shown that handling customer complaints well can be a critical part of a turn around strategy. If a complaint is handled well, it sustains and strengthens customer loyalty and the companys image as a leader. It also tells the customer that the company cares and can improve because of their contact. In government agencies, it promotes public confidence in government services. Customer complaints strategies also represent valuable information about recurrent problems. They can point the way to understanding the root causes of customer problems.

Promotional procedure of NALCO, India :

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Basically NALCO is not spending its money in Various Advertising & promotional activities, rather it spends money for the development of people as well as the development of society. Corpotate social responsibility of NALCO,India : At Nalco, when we started our activities in Orissa 30 years ago, there was no such nomenclature like Corporate Social Responsibility or CSR. All that we knew was our Moral Responsibility towards the society. But today, CSR has become a buzzword in the corporate world. More and more organizations are waking up to this belated realization that beyond productivity and profitability, it is the social accountability that determines their image. Presently, even before the land is acquired and foundation-stone laid for a project, the company launches its CSR activities in the area. It is presumed that on a solid CSR foundation, a strong business empire can be built. As a policy, Nalco has been allocating 1% of its net profit of the year for periphery development activities of the succeeding year Out of this allocable fund: 40% is for Damanjodi sector, where the companys Mines & Refinery are located; 40% is for An gul sector, where the companys Smelter & Power Plant are located; and 20% is for other areas.

Mobile medical units of Nalco visit peripheral villages in Angul and Damanjodi sectors and hold health camps round the year, distributing free medicines. To foster scientific temper among rural students, Nalco takes them to Bhubaneswar and shows them Pathani Samant Planetarium, Regional Museum of Natural History and Regional Science Centre

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 Soon after the Super Cyclone in Orissa in the year 1999, Nalco has constructed 197 Primary Schools-cum-Cyclone Shelters, under Prime Minister's National Relief Fund Scheme. 1999: To National Defence Fund during Kargil War Rs.1.18 Cr 1999 For the victims of Super Cyclone in Orissa Rs.1.39 Cr

2001: To PM's National Relief Fund for the victims of Gujarat Earthquake Rs.1.70 Cr 2004: To Sports Authority of India towards training of Indian Contingent for Athens Olympics Rs.1.00 Cr 2005: To PM's National Relief Fund for the victims of Tsunami Rs.2.44 Cr 2005: To PM's National Relief Fund for the victims of J&K Earthquake Rs.2.98 Cr 2008: To Chief Minister Relief Fund for the victims of Flood in Orissa Rs.5.00 Cr

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SUGGESTIONS
No body in this world is perfect. Every body needs a feedback/suggestion for their development. NALCO is not an exception. So, in spite of many good things there are still areas where Nalco could improve more. Like as a public sector its decision making process is a bit slow. Here the organization should think to make it faster to compete with the competitors especially from private sectors. Coal and electricity one of the must needed resources for the organization. As coal is a natural resources and now a days its amount is decreasing so, company should think about alternatives.where as NALCO has been already allocated Utkal-E coal blog,Orissa,for its expansion unit. Even the project was allocated but still it not work properly.if NALCO will work in this project as soon as possible it would have an extera advantage to the company and company may add another new product. Regarding electricity NALCO has signed a MOU with NTCIL (Nuclear Power Corporation of India) for setting of Nuclear power plant in India. In joint venture for generating and selling electric power, If this project will exercise in time then NALCO can play a pivotal role in the power market. NALCOs market share it has good position in its primary segment but it should modify its product mix which will help itself to gain a good position other than primary product segment. As NALCO is a quite old organization, it needs some technological improvement also. As NALCO is a cash reserve organization so the company has the opportunity to expand its business in different segments. As now the global economic recession has affected world business very deeply. So, the company should be always prepared to face such kind of satiation in future. In our report we have seen almost all of the NALCOs products are in cash cow segment, accept T-ingots, here company has some areas of improvement and they should be observed keenly.
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CONCLUSION
Jules Verne, the father of modern science fiction, wrote "From Earth to the Moon", describing a manned trip to the moon over 100 years before the Apollo landings. The protagonists' space craft is to be fired from a giant gun and they decide there is one material which is ideally suited to the application - aluminium: "This valuable metal possesses the whiteness of silver, the indestructibility of gold, the tenacity of iron, the fusibility of copper, the lightness of glass. It is easily wrought, is very widely distributed, forming the base of most of the rocks, is three times lighter than iron, and seems to have been created for the express purpose of furnishing us with the material for our projectile." Aluminium industry in general and NALCO in particular have very bright future. It is quite sure that NALCO will prove its worth and cement a good position for itself in near future. Proper identifications of new business opportunity in the international market can help it gain its market share. It has already taken the required measures for this purpose. All its expansion program are the vital examples of achieving its goal of securing a good status at the international level. Hence the strategy part of Nalco will defiantly play a vital role in its goal achieving process. So, we hope this project will help full in order to increase its reputation as well as also to fulfill the demands of the customers.

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16.0.BIBLOGRAPHY Marketing Management Arun Sharma Annual report of NALCO (Month, Year). Publisher. Parichaya www.google.co.in www.netmba.com www.wikipedia.com www.nalcoindia.com www.moneycontrol.com

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