ADITYA TUBES LIMITED

ABOUT ATL
AUDIT OF THE ATL
IDENTIFICATION OF THE PROBLEMS AND THEIR JUSTIFICATIONS

• Problems identified by the AUDIT

• High price
• Cost disadvantage
• New entrants of local players
• Improper market segmentation for the products
• Conflicts between channel members
• Narrow product range
• Lack of standardization of cost structure
• 50-60% channel members’ transactions are without bills
• Disparities between channel members in terms of their off-take
• Skewness of distributions towards east---- maxm Sales in the east(40%)
• Only 11% market share despite wide market coverage
IDENTIFICATION OF PROBLEM CONTINUES…..
ANALYSIS OF THE PROBLEMS
Analysis of
ATL tubes
 SWOT ANALYSIS
STRENGTHS WEAKNESSES

High quality product High price

Wide market coverage Scanty and irregular supply of product

Uniform price through the year Narrow product range

Maintained fixed price Traditional technology

Give sufficient time to the distributors and More no. of stockist are typically multi
stockist to clear old stocks product dealers

Strong brand Skewness of stockist towards east

Authorized channel members and stable FOR prices only up to place of ATL godowns
and long term policies
50-60% transaction without bill
Monopoly market
Low margin for the channel members
 OPPORTUNITIES
Being the recognized brand in the market
its easy for the ATL to enhance its market
position .
Demand of larger diameter tubes in the
market
Having wide market coverage ATL can
introduce new product range
THREATS
Entrant of new local players
Majority of ATL channel members are
representing more than one
manufacturers
Tug of war for the competitive price
Conflicts among channel members
 TABLE ANALYSIS

TABLE 1
 This table reflects only 55 distributors' profile who contribute to
the 80% of the ATL’S total sales.
 Out of 65 distributors which contribute 20% of total sales, 40
distributors are in the eastern zone.
 Maximum dispatch of ATL tubes is in east .i.e. 11788 tons which
contribute to about 38% sales, thus market share is high in east.
North contribute to 23% of sales
South contribute to 19% of sales
West contribute to 21% of sales
 Level of conflicts is less in the East
 Distributors are not active in Jamshedpur, no dispatch of ATL
tubes are seen.
ANALYSING THE CASE ON THE BASIS
OF MARKETING MIX