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TINPLATE COMPANY OF INDIA NEED A CONCEPTUAL FOCUS

Rahadian Anandianto 29110393


Ridwan Riswandy 29110398
Fiqi Dipowicaksono 29110407
Felisia Noviana Mukti 29110411
Wulan Cahyo Wening 29110416
Imam Mashari 29110417
WHAT DO YOU KNOW ABOUT TCIL ?
Established in 1922, in Jamshedpur, India

Manufacture tinplate for packing kerosene

Jointly by 3 companies (Burmah Shell,


Shaw Wallace & Tata Steel)

Adding a facility thickness (0.17-0.3 mm)

Started for baby food, processed


food & tinplate for battery jackets
Raw material continued to be entirely imported

TCIL faced inherent disadvantages continuing import


TMBP

Receive an uninterrupted supply of raw material

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

In 1997, Import of India and GDP is decrease. And finally in 1997-


1998 there was a financial crisis in Asia
SITUATION ANALYSIS
Share of Comodity Group in Total Import (in percentage)

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

Prime Grade Secondary grade


edible oil cans soft drink crowns

Free from fisual Banned for food


defect packaging

Food packaging Non food product


processed food batteries packaging
The customer hard
Unsuitable for battery
high-speed can
jacket
making equipment

Raw material : (TMBP) Product


Place & Promotion

Dominated by personal selling


Place & Promotion

Factory in Jamshedpur India

A sales team ( 20 personnels)


interacted with customers
other segments

Distributed by 15 agents
throughout country in edible oil
can.
Price
Caught between the highly price
sensitive lower end customers :

The high service expectation of


high end customer.

High end customer more favorable perception on foreign companies

Price Versus Profit TICL


Battery and processed food
segment high profit margin but
their sales was low

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%

Second, with price 25.850 in


segment edible oil can generate
profit margin 12%
Growth rate in volume
Financial year Tinplate Prime Tinplate secondaries Total Tinpalte prime Tinplate secondary Total
71.110
1992-93 31.543 102.653
74.300
1993-94 35.953 110.253 13,98 4,49 7,40
76.065
1994-95 38.712 114.777 7,67 2,38 4,10
79.751
1995-96 40.654 120.405 5,02 4,85 4,90
81.432
1996-97 41.189 122.621 1,32 2,11 1,84
84.323
1997-98 43.976 128.299 6,77 3,55 4,63
86.756
1998-99 44.496 131.252 1,18 2,89 2,30
79.105
Average 39.503 118.609 5,99 3,38 4,20

Tinplate P & S Import Growth Rate Import TP & TS


300,000 30.00

250,000 25.00

200,000 20.00
150,000 15.00 Total
100,000 10.00 Tinplate secondary

50,000 Tinpalte prime


5.00
- -
1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99

Tinplate Prime Tinplate secondaries Total


CUSTOMER SATISFACTION
Segment TCIL FRITZ SUKAI TMN SAIL UNORGANIZED
Battery 20 33 30
Edible oil 18 13 11
Soft drink crown 17 22 22
Processed food 20 20 23

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

Battery Edible oil Soft drink crown Processed food


GROWTH RATES
Segment 1993 1994 1995 1996 Average
Battery 60,00 25,00 50,00 33,33 42,08
Edible Oil 0,00 -14,29 0,00 -16,67 -7,74
Crown 11,11 20,00 0,00 25,00 14,03
Processed Food -12,50 14,29 12,50 11,11 6,35

Growth Rates Thinplate In Segment

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%

Soft Drink Crown TCIL


10%
Processed Food

SUKAI TCIL
45% 22%

FRITZ TMN
45% 78%
Joint venture with 3 companies : Burma shell, shaw
wallace & tata steel

Uninterrupted supply of rawa material (Tata iron and


STRENGTH
steel company TISC)

Four major product segment : edible oil cans, soft


drink crowns, processed food and batteries

Quality problem
Sufficient to meet domestic demand
Weak research and development facilities

Inadequate focus on control mechanism for preventing of WEAKNESS


lower grade import thinplates
OPPORTUNITY
Increase in GDP opportunity to growth
Growth in the hotel industry
Political climate showing sign of continuity in policies toward
industries
High industrial growth (9%)
Changing food habits and health conciousness of next
generation

THREAD Lowering of customs tariff

Household units becoming smaller

Regulating standarts lacking enforcement

threat of Substitutes: Plastics, PET, alumunium, blackplate,


tetrapak and paper

Rising cost of tin which has to import from outside


MARKET SHARE
Unorganized

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

Seek the best Coupon & discount


as primary method if
bargain possible in
Deal Proneness it is a sizable
shopping situation segment

PRICE SENSITIVE CUSTOMER


Buying Behavior in Other Segments
Consumption
Response Marketing
Specifity
Personality Traits Tendency Implication

Inspect the product


by exploring its Need of shopping
Need for tactile impact, sticking, medium
input sliding, texture

MORE ATTENTION ON CUSTOMER SATISFACTION


Measuring Customer Satisfaction
According to Exhibit 3

Customer Satisfaction Edible oil market

Customer Satisfaction (Battery and crown segment)


foreign company

Use the components of American Customer Satisfaction


Index (ACSI) understand how company can satisfied their
customer.
ACSI Component of Customer Satisfaction

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)

High consumption tinplate (148.000 metric


tons), Comprises 76% of tinplate sales.

There are opportunity of high Industrial


growth(9%)-buoyant demand for packaged
foods
TO DO LIST!

Monitoring of import for secondary grade Thinplate product

Political climate Industry oriented-customer focused companies.

Focus on control mechanism for prevention of usage of lower grade


imported tinplate in health sensitive packaging

Advertise, educate and make the consumer aware about ill-effects of


secondary grade tinplate

Develop and extent market for packaging (EXPORT)


Implement strategies in terms of
innovating value

Invest in battery and crown R&D :


High growth potential segments.

Maintain high quality and adhere to


specific requirements in these
sectors.

Increase customer satisfaction with


delivering more value added

COMPETE WITH FOREIGN?


Control customs duty for import product
Enhance cost competitiveness Packaging solutions/
innovations
Reduce cost due synergy in value chain
Develop stronger delivery channels
Make alliance with major can maker
DEVELOP STRONG
DISTRIBUTION CHANNELS

Direct To End Sell Through a


Customer Dealer Network

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

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