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4 segments : Edible oil cans, soft drink crowns, processed food & batteries.
Rate of Growth of Import & GDP
40
30
20
10
0
-10
-20
-30
% Imports GDP VA Industry
30
25
20
15
10
0
1993-1994 1994-1995 1995-1996 1996-1997 1997-1998
Edible oil 0.2 0.7 1.8 2.1 1.8
Iron & Steel 3.4 4.3 3.9 3.5 3.4
Petroleum Product 24.7 21 20.5 25.6 19.7
Machinery & Equipment 23.8 23.1 24.1 22.1 19.2
Growth Rate of Total Import Industry in India 1997-1999
Machinery, transport equipment Iron and steel Petroleum crude and product Bulk consumption goods
Growth Rate (%)
-5.3
-17.08
-21.17
56
23.84
2.81
% share
15.37
1998-1999
5.43
9982.87
1178.35
Import (US $ Million)
6434.72
2274.64
25.41
3.43
% share
19.68
1997-1998
3.51
10541.79
1421.06
Import (US $ Million)
8163.91
1458.08
THIS IS THE MARKETING MIX!
Characteristic of thin plate
Distributed by 15 agents
throughout country in edible oil
can.
Price
Caught between the highly price
sensitive lower end customers :
First, with price Rs.35.450 in segment Battery can Most of TICL sales came from
eidible oil but less profit margin
generate higher profit margin 17%
250,000 25.00
200,000 20.00
150,000 15.00 Total
100,000 10.00 Tinplate secondary
Customer Satisfaction
UNORGANIZED 11
SAIL 13
TMN 23
SUKAI 30 22 20
FRITZ 33 22
TCIL 20 18 17 20
0 10 20 30 40 50 60 70 80
Processed Food
Crown
Average
Edible Oil
Battery
-20 -10 0 10 20 30 40 50
MARKET SHARE
Market Share Edible oil Battery TCIL
SAIL 10%
18%
TCIL SUKAI
28% 45%
FRITZ
45%
UNORGANI
ZED
54%
SUKAI TCIL
45% 22%
FRITZ TMN
45% 78%
Joint venture with 3 companies : Burma shell, shaw
wallace & tata steel
Quality problem
Sufficient to meet domestic demand
Weak research and development facilities
CUST. SATISFACTION
COMPETITIVE
LANDSCAPE
Edibles Oil
SAIL
MARKET SHARE
Sukai Fritz
CUST. SATISFACTION
COMPETITIVE
LANDSCAPE
BATTERY
MARKET SHARE
COMPETITIVE
LANDSCAPE
FRITZ Soft Drink Crowen
SUKAI
CUST. SATISFACTION
MARKET SHARE
TMN
COMPETITIVE
LANDSCAPE
PROCESSED FOOD
CUST. SATISFACTION
SO WHAT ARE THE PROBLEMS ??
Main Problem
Should it continue in the edible oil segment ?
Additional Problem
How can TCIL compete with foreign company ?
What strategy can TCIL formulate based on organizational buying
behavior concept ?
THEY SAID YOULL NEED A THEORY. WELL, THIS IS IT!
Buying Behavior in Edible Oil Market
Consumption
Response Marketing
Specifity
Personality Traits Tendency Implication
Perceived Customer
Quality Complaint
Perceived Customer
Value Satisfaction
Customer
Expectati Customer
on Loyalty
OTHER SEGMENTS SATISFACTION
CHANGE CUSTOMER
BETTER PRODUC T ATTITUDE
Willing to buy
TO DO LIST!
Attitude Components and Manifestation
TCIL Tinplate is a good Overall
Affective product orientation
toward
object:
TCIL
Stimuli: Tinplate
Personal TCIL Tinplate has followed has change
selling, Cognitive the BIS standard into better
brochure, product
and sample and as
good as or
better than
Customer prefer TCIL
foreign
Tinplate than foreign
Behavioral competitor company
ENJOY THE SOLUTIONS!
Should TCIL continue
in edible oil segment ?
Because :
Market leader with high market share (28%)
and has perceive quality in edible oil segment
(20)
Sell Through a
Internet,
VAR (Value
Catalog
Added Reseller)
Wholesaler,
Consultant
I AM BUSINESS BUYERS MY RATIONAL
THOUGHT!
MONEY PRODUCTIVITY
PROFITABILITY
INCREASING
REDUCING COST
PROFITABILITY
ENHANCING
PRODUCTIVITY
MARKETING
DOLLARS
MARKETING
PROGRAMS &
MATERIALS RATIONAL BUYING DESICION
QUALITY MATERIAL
TESTIMONIALS
OTHER ACTIVITIES
BUILD CREDIBILITY
THANK YOU