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Company Overview
Established in 1992
Produce tinplate
Using Tin Mill Black Plate (TMBP) for raw material
Jointly held by three companies
Burmah Shell
Shaw Wallace
Tata Steel
Classification
Plastic
PET (polyethylene terephthalate)
Aluminum
Black plate
Tetra Pak
Paper
TCIL production
SAIL production
imported tinplate
6%
Non-food sector
Food sector
94%
Consumption of Tinplate
1%
Almost
consumption of
Tinplate were used for
Edible Oil
7%
5%
Edible Oil
17%
Processed Food
70%
Crown
Battery
Miscellaneus
20
15
10
0
1993
1994
Battery
1995
Edible Oil
1996
Crown
Precessed Food
1997
Market Share
(from exhibit 5)
Edible Oil Market Share
18%
45%
28%
TCIL
TCIL
45%
UNORGANIZED SUPPLIER
54%
FRITZ
SUKAI
SAIL
22%
45%
TCIL
45%
TCIL
FRITZ
SUKAI
78%
TMN
Market Characteristics
Edible Oils
Bought directly by the edible oil manufacturers
The consumers bought in loose quantities
The products were not branded and highly price sensitive
Competition was largely from unorganized companies and
SAIL
Unorganized and small companies tended to use prohibited
imported tinplate
Consumers were unaware of the negative consequences of
using secondary tinplate as packaging material for food
products
Manufacturers are willing to waive the required specification
Market Characteristics
Soft Drink Crowns
Indian soft drink industry were dominated by
Coca-Cola and Pepsi
These brands demanded high standard crowns
The manufacturers puchased their requirements
from foreign companies such as Fritz, Sukai, and
TMN
Changing and sensitive needs of customers
Market Characteristics
Battery
Required high standard of tinplate quality
90% of the tinplate were bought from foreign companies
High profitability
Changing and sensitive needs of customers
Processed Food
Nestle and Brooke Bond bought 22% of their cans from
TCIL
The majority was owned by foreign companies
Changing and sensitive needs of customers
Imported Product
The secondary grade being imported under the low customs
tariff with a large portion
Usage of non food grade tinplate for food packaging in India
Consumers were unaware of the negative consequences of
non-food grade tinplate.
Indias low literacy level
Imported Product
CUSTOMS DUTY STRUCTURE ON TINPLATE IMPORTS (in percentage)
(from exhibit 1a)
120%
100%
80%
60%
40%
20%
0%
92-93
93-94
94-95
Tinplate Prime
Tinplate Secondaries
95-96
96-97
Imported Product
PRIME AND SECONDARY TINPLATE IMPORT (MT = in metric tons)
(from exhibit 1b)
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
92-93
93-94
94-95
Tinplate Prime
95-96
96-97
Tinplate Secondaried
97-98
98-99
Customer Satisfaction
(from exhibit 3)
Product
parameter
Temper
Size
Dimension
Battery Productivity
Service
Price
Delivery
Total Score
TCIL
2
2
2
3
3
5
3
20
Product
parameter
Price
Brightness
Edible Oil
Delivery
Service
Total Score
FRITZ
5
5
5
5
4
4
5
33
SUKAI
4
5
5
4
3
4
5
30
Average
3.6
4
4
4
3.3
4.3
4.3
27.6
Average
4
3.6
3.3
3.3
14.3
Battery :
For all parameter
except price, TCIL had
the lowest score
compared to its two
competitors
Edible Oil :
In this segment TCIL
has the highest score,
but the competitors
had better price
Customer Satisfaction
Product
parameter
Size
Soft Dimensional
Drink Price
Crowns Delivery
Temper
Total Score
TCIL
2
2
3
5
3
15
Product parameter
Delivery
Lacquer adhesion
Processed
Temper
Food
Price
Dimensional
Total Score
FRITZ
5
5
5
4
5
24
TCIL
5
4
3
5
3
20
SUKAI
5
5
5
4
5
24
TMN
4
5
5
4
5
23
SUKAI
4
4
4
4
4
20
Average
4
4
4.3
4.3
4.3
21
Average
4.3
4.3
4
4.3
4
21
Soft Drink :
TCIL is worse than the
competitors in all
parameter except
delivery
Processed Food :
TCILs delivery and
price is better than its
competitors, but
overall TMN has the
highest score
30,000
Axis Title
25,000
20,000
15,000
10,000
5,000
Total Cost
Profit
Battery
29,450
6,000
Edible Oil
22,900
3,000
Crown
26,950
3,000
Processed Food
28,200
5,500
TCIL
SAIL
25000
FRITZ
SUKAI
20000
TMN
15000
10000
5000
0
Crowns
Battery
Processed foods
Edible oil
Decision-maker
Influences
User
Battery
Purchaser
CEO
Production/
Marketing/
R&D
Production/
Quality Control
Edible Oil
Purchaser/
owner of the
edible oil/
vanaspati
company
Middleman/
Marketing
Production/
Quality Control
Crown
Purchaser
CEO
Production/
Marketing/
Quality Control
Production/
Quality Control
Processed
Food
Purchaser/
owner of the
company
Marketing/
Packaging
division/
Production/
Quality Control
Production/
Quality Control/
Packaging
division
The Problem
Should it continue in the edible oil segment?
How TCIL compete with foreign companies?
What strategies can TCIL formulate based on organizational
buying behavior concept?
Implications
Regulating standards
lacking enforcement
Opportunity trends
Implications
SWOT Analysis
Strength
Weakness
Threat
Opportunities
Solution
TCIL should continue in Edible Oil segment although it had the
smallest profitability and decreasing growth, but it had the
biggest market percentage, TCIL share in this segment is quite
large, and TCILs customer satisfaction in this segment is higher
than its competitors.
Recommendation for edible oil segment:
make smaller package for consumers
communicate the danger of using secondary tinplate for food
packaging
minimize cost and reduce the price to gain more customers
influence the influencer which is the middleman/marketing to
choose TCILs tinplate
Solution
To compete with foreign company TCIL should choose processed
food segment, because it already had 22% share and only had 1
competitor which is TMN, also has a high profitability
Battery segment also has a good prospect because of the high
growth and the highest profitability
Recommendation for processed food and battery segment:
improve the quality based on product parameter to increase
customer satisfaction
improve the ability of responding to the changing and sensitive
needs of customers
influence the influencer which is the Marketing/Packaging
division/Production/Quality Control for processed foods segment
and Production/ Marketing/ R&D for battery segment to choose
TCILs tinplate
Forecast Battery
1993
Battery segment
TCIL Share
TCIL Battery size
Battery profit
TCIL profit
Battery
Total (in Rs)
10000
10%
1,000
6,000
6,000,000
1993
5%
6,300,000
1994
8%
6,804,000
1995
10%
7,484,400
1996
1997
15%
20%
8,607,060 10,328,472
1998
1999
2000
2001
2002
22%
25%
27%
29%
31%
12,600,736 15,750,920 20,003,668 25,804,732 33,804,199
Edible Oil
Total (in Rs)
148000
28%
41,440
3,000
124,320,000
1993
7%
133,022,400
1994
1995
1996
1997
7%
6%
6%
5%
142,333,968 150,874,006 159,926,446 167,922,769
1998
1999
2000
2001
2002
6%
7%
7%
8%
9%
177,998,135 190,458,004 203,790,065 220,093,270 239,901,664
Forecast Crown
1993
Crown segment
TCIL Share
TCIL crown size
Crown profit
TCIL profit
Crown
Total (in Rs)
15000
10%
1,500
3,000
4,500,000
1993
9%
4,905,000
1994
10%
5,395,500
1995
12%
6,042,960
1996
12%
6,768,115
1997
15%
7,783,332
1998
1999
2000
2001
2002
17%
17%
18%
19%
20%
9,106,499 10,654,604 12,572,433 14,961,195 17,953,434
Food segment
TCIL Share
TCIL Food size
Processed Food profit
TCIL profit
Processed Food
Total (in Rs)
35000
22%
7,700
3,000
23,100,000
1993
8%
24,948,000
1994
1995
1996
1997
7%
8%
9%
10%
26,694,360 28,829,909 31,424,601 34,567,061
1998
1999
2000
2001
2002
11%
11%
12%
13%
14%
38,369,437 42,590,075 47,700,884 53,901,999 61,448,279