The Success Story Of APL Appolo Tubes : 8 Learning Success Strategy You Should Know
Introduction
Hii Friends , My name is Bkc Biographer and Today we will talk about APL Apollo Success Story Whose Latest Turnover Is 5,472 Crores
8 Buisness Lesson That We Learn From This Case Study :
- Courage | Conviction | Confidence
- Innovation 80/20 Rule
- Market Creation Strategy
- Consumer Advantage
- Buisness Process Re - Engineering
- Customized Fit Vs Forced Fit
- Distribution Is Real Promotion Promotion Is Not Promotion
- Low Cost Acquisition's
Background
This APL Apollo was started as store(Earlier Known As Bihar Tubes) by Late Sudesh Kumar Gupta, The Father of Sanjay Gupta and present chairman Of APL APOLLO In Bihar But The Store Was Complete Flop And In Loss So Today's Success Of APL Is Due To Sanjay Kumar Gupta And His Innovative Strategy.
First Strategy : Courage | Conviction | Confidence
If this is in you then you can do anything.
All great things start from this.
He went to Faridabad steel distributors and said him that I am taking 500 tons steel but I have the capacity of 5000 tons but the real fact is that he didn't have no money. I can lend you from this by only one condition that you had to give me that in low price and I will give you the whole money later as it doesn't matter if I give you the Money at this time or later. This Cooked Story succeeds and he then sold all 5000 tons of steel and this is Starting journey of APL APOLLO.
Achievements
He converted 50 crore company to 10000 crore
His Buisness stared growing and they will start to make 3 lakhs/ton production per year but his vision was so large as he wanted his Buisness in International Exposure.
He started to travel all the world and went to Germany to saw the plant and how they are doing their manufacturing and by which way they are working.
He saw there that there are some organisation who make 2 million/ton production (20 lakhs/ton production).
He thought that if he can do then I also can do.
This Is His Courage, Conviction and Confidence
.
He then called All his Distributors of India in a ship to travel from Malaysia to Singapore. He Knew that all his products had been sold by distributors. He took all his Distributors in conference room at Evening in ship and made announcement that today I will Give 1 No. Made of Silverand told him that we will go from 3 lakh to 10 lakhs ton production per year in upcoming days and His :
- Market share will be First Number
- Distribution will be First Number
- Brand Trust will be First Number
In this Way, he placed the Concept Of 1 million distribution in his Distributors.
Second Strategy : Innovation 80/20 Rule
He said that if we have 10 products then we have to make 2 products Very Innovative and Extraordinary such that due to these two, costumer will visit my market regularly and buy all the 8 remaining products due to these two.
Example Of His Innovation :
In starting the pipes were banana shaped and are curved which cause difficulty in boring system and other things. He went to Japan and bought a Japanese rolling machine and by which they make their pipe straight with top quality Finishing.
Impact of 80/20 Rule :
Market Creation Strategy
Earlier the Steel pipe is used for water flow purposes. He knew that this market is very small and is not efficient so he created his own market
He created Square pipe, Rectangle pipe and Triangle pipe. By this Steel pipe Is Used For Various Purposes like :
He shifted their market to Structural Support From Water Flow.
Fourth Strategy : Consumer Advantage
Earlier Wooden door frame is used in every house so he thought that if I made Steel door frame then it will be Long Life,More Powerful and 1/3 rd cost and it's resale value is increased every year.
By this way, He transformed Structural product to Consumer Product.
Example Of Structural Product To Consumer Product
Fifth Strategy : Buisness Process Re - Engineering
He thought that if they reduced some steps in steel manufacturing then his cost is reduced and they can available their products in market in less price to make their brand at top and Unique.
How they reduce their step ?
To coat zinc on steel , it takes one whole step so he added zinc spray at assembly line so this way his step reduced and by this way they save :
- Time
- Money
- Speed Increased
Customized Fit Vs Forced Fit
He thought that if a customer want 99 inch of pipes then why Wii I give him 100 inches as this will result in customer's extra labour, extra cost cutting and extra time
So He brought Direct Forming Technology and provide the exact size to customer according to its needs.
In this way, he won hearts of customer and gain his confidence
Impact
Distribution Is Real Promotion Promotion Is not Promotion
He said that if you want promotion then don't waste money in advertisement first make your distribution network strong then advertise so that if a customer of any place want APL products of my company it must be available to it otherwise the profit goes to your competitors. He spread their distribution in whole India
He made warehouse in small city and towns and supply their products in warehouse and then supply it to micro distributors of small city
In this way , he spread in whole India and made 650 distributors in India and 40,000 retailers and after it they started advertising and earn a lot of money.
They made Amitabh Bachaan as Brand Ambassador and started to sponsor IPL teams . At present , they are principal Sponsor Of Delhi Daredevils. They also do a lot of TV Ads
Low Cost Acquisition
He said that I don't waste money in setting up new Plant instead I acquired a weak and dead steel plant and there I setup my new plant and earn it
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