STRATEGIC MARKETING

TCI packaging

SUBMITTING TO: Dr. M R SURESH

GROUP :5
Veena Shravani Shrivas-18113
Ashish B N -18114
Nisarga Ganesh-18116
Sandeep Rao-18118
Shashank M B-18119
Core issues

 Problems related to bulk packaging of cashews which are to be exported

 There were major problems in packaging which the importers complained about, some
of them were :
o Lead solder contamination
o Disposability
o Recyclability
o Safety aspects
 How attractive is the market for cashew packing industry ?
 Kovak packing which was widely used by Brazilians cashew exporter was not feasible
because of the wear and tear caused by such packings even at shorter distance.
 Pressure to change the existing packaging system of cashews.

Some of the stakeholders involved

 Producers of cashew
 Exporting and importing countries
 Packaging industry
 Consumer
 Wholesalers and retailers

SWOT analysis of BIB flexi packs

Strength

Flexi pack that can withstand 25lbs of cashew

Approved by authorities and importers

Positive results in the testing stage

Lower cost than tin containers

Weakness

7% broken and split components

New pack is susceptible to rats

Opportunity

Demand in the market for improved design of packing

Threat

High competition

Competition from tin containers which is an old practise

XAVIER’S FRAMEWORK

Environmental analysis.
 The cashew nut export was increasing drastically from India, but the overall exports
compared to world overall, was declining.
 The methodology adopted in packing cashew kernels was known as “Vitapack” system.
In this type of system, the tins are kept in the fillers and cashew kernels are loaded by
jerk movements. Then they are tightly packed by weighing first. They are placed in a
“Bell jar” to vacuumize it upto 26 inches.
 The tin containers which are used for packing has created a lot of issues, issues such as
Lead solder contamination, Disposability issues, Recyclability issues and Safety aspect
issues.
 Because of the packing issues, importing countries are putting lots of pressure on
industries to improve the packing methodology.

Market analysis

 One of the major factors is quality packing techniques. Importers place high value
towards packaging technique
 Split or broken cashew kernels are not appreciated by the importers.
 The two major international markets for cashew kernels are London market and the
New York market.
 Due to the new exporter entrant into the market that is Brazil, India is facing a tough
competition in the Export side of the market.
Customer analysis

 The importing countries are highly afraid of lead poisoning. Since the package is tightly
packed, the importers felt that the kernels would be smeared with lead and when they
consume it, it would have hazardous effect on their health.
 Until 1960’s the largest importer of Indian cashew kernels were US and the erstwhile
USSR.
 Currently India exports majorly to countries such as Holland, Japan, Singapore,
Australia, United Kingdom and Hong Kong.
 Because of the heightened awareness and fear of health hazards, there is a lot pressure
from importers to improve packaging quality by using Hazard free materials

Competitor analysis

 Because of the entry of Brazil in the international market, the US, a traditional market
for India has shifted its attention towards Brazil for importing cashew kernels. The
reason being Brazil has the advantage of Proximity, low price, able to deliver with more
quality and in as short span of time as possible.
 The “Kovak packaging” widely used by Brazil is done at a cheaper rate. Since Brazil
is closer to US, the wear and tear is minimal, also involves very less cost.

Company analysis

 TCI packaging and printing division is the India’s largest manufacturer of Value-
added Folded cartons.
 TCI’s packaging division consists of high technological advancements and cutting
edge R&D.
 The TCI’s Bag in Box packaging is a very successful one because if it’s convenient
use, Hygienic, tamper proof and cost effective
 The innovative packaging of PPD is highly innovative and is of top quality which
earned the company three world star awards in only a year

Marketing mix analysis.

 PRODUCT: The cashew kernels are packed with a net weight of 11.34 kgs. (25
Ibs.) of kernels in tins weighing 1 kg. each. Two such packed tins are kept in a
carton made of cardboard and steel strapped for exports. The overall dimensions
 of the carton and the tins are as per the shipping specifications which are
490x240x350 mm cube.
 PRICE: Tin containers price range: Rs 46-52. And cartons price range Rs 12-20
 PLACE: The manufacturing facility for tin containers is at Calcutta and the
manufacturing facility for Cartons is at Madras and Quilon. After they are
manufactured, they are sent to Cash Kernel producer & exporters for packaging
and to packaging sub-contractors to all over India.

Strategy formulation

“Vitapack” method of packaging has been highly criticised by the importers. The
company has to come up with an innovative idea to improve the packaging quality.
Due to the new entrants into the market, such as Brazil who has been able to shift the
attention of US the major importer to India, towards its side. It is because of the
packaging issues. The importers are very critical about their Health and think that the
packaging, which is made up of lead, due to the prolonged exposure to the lead the
cashew kernels are becoming contaminated by lead which leads to lead poisoning. To
avoid this issue coming up with a better packaging technique is the only approach.

Recommendations

1. TCI’s packaging solution of BIB can be implemented as most requirements are being
fulfilled except two i.e. the broken and splits component is around 7 per cent and the
new pack is susceptible to rates.
2. The minimum standard of damage has to be reduced to around 4% which is the usual
margin of error and packaging solution has to be made smell proof in order to resist
pest attacks.
3. 'Product adaptation' is very necessary to be available in the new market, reason may be
anything like local market preferences as in this case. This is crucial for product success
in the market.