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Tinplate Company of India - Need A Conceptual Focus
Tinplate Company of India - Need A Conceptual Focus
Rahadian Anandianto Ridwan Riswandy Fiqi Dipowicaksono Felisia Noviana Mukti Wulan Cahyo Wening Imam Mashari
Started for baby food, processed food & tinplate for battery jackets
4 segments : Edible oil cans, soft drink crowns, processed food & batteries.
0
-10 -20 -30
Imports
GDP
VA Industry
In 1997, Import of India and GDP is decrease. And finally in 19971998 there was a financial crisis in Asia
SITUATION ANALYSIS
25
20
15
10
0 Edible oil Iron & Steel Petroleum Product Machinery & Equipment
% share 1998-1999
% share 1997-1998
Secondary grade
Product
Factory in Jamshedpur India A sales team ( 20 personnels) interacted with customers other segments
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 generate higher profit margin 17%
Most of TICL sales came from eidible oil but less profit margin
Second, with price 25.850 in segment edible oil can generate profit margin 12%
1996-97
1997-98 1998-99 Average
41.189
43.976 44.496 39.503
122.621
128.299 131.252 118.609
1,32
6,77 1,18 5,99
2,11
3,55 2,89 3,38
1,84
4,63 2,30 4,20
CUSTOMER SATISFACTION
Segment Battery Edible oil Soft drink crown Processed food TCIL 20 18 17 20 FRITZ 33 22 SUKAI 30 22 20 TMN SAIL 13 UNORGANIZED 11
23
Customer Satisfaction
UNORGANIZED SAIL TMN SUKAI FRITZ TCIL 0 20 10 Battery 20 Edible oil 11 13 23 30 33 18 30 40 22 22 17 50 60 20 70 80 20
Processed food
GROWTH RATES
Segment Battery Edible Oil Crown Processed Food 1993 60,00 0,00 11,11 -12,50 1994 25,00 -14,29 20,00 14,29 1995 50,00 0,00 0,00 12,50 1996 Average 33,33 42,08 -16,67 -7,74 25,00 14,03 11,11 6,35
MARKET SHARE
Market Share Edible oil
SAIL 18% TCIL 28%
Battery
SUKAI 45%
TCIL 10%
TCIL 10%
Processed Food
TCIL 22% TMN 78%
Joint venture with 3 companies : Burma shell, shaw wallace & tata steel
Uninterrupted supply of rawa material (Tata iron and steel company TISC)
STRENGTH
Four major product segment : edible oil cans, soft drink crowns, processed food and batteries
WEAKNESS
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
Unorganized
MARKET SHARE
COMPETITIVE LANDSCAPE
Edibles Oil
CUST. SATISFACTION
SAIL
MARKET SHARE
Sukai
Fritz
CUST. SATISFACTION
COMPETITIVE LANDSCAPE
BATTERY
MARKET SHARE
FRITZ
SUKAI
COMPETITIVE LANDSCAPE
Soft Drink Crowen
CUST. SATISFACTION
TMN
MARKET SHARE
COMPETITIVE LANDSCAPE
PROCESSED FOOD
CUST. SATISFACTION
Additional Problem
How can TCIL compete with foreign company ? What strategy can TCIL formulate based on organizational buying behavior concept ?
Response Tendency
Marketing Implication
Coupon & discount as primary method if it is a sizable segment
Deal Proneness
Response Tendency
Marketing Implication
Customer Satisfaction
Use the components of American Customer Satisfaction Index (ACSI) understand how company can satisfied their customer.
Customer Complaint
Perceived Value
Customer Expectati on
Customer Loyalty
BETTER PRODUC T
Willing to buy
TO DO LIST!
Cognitive
Behavioral
Overall orientation toward object: TCIL Tinplate has change into better product and as good as or better than foreign company
TO DO LIST!
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
Internet, Catalog
Wholesaler, Consultant
I AM BUSINESS BUYERS
MY RATIONAL THOUGHT!
MONEY
PRODUCTIVITY
PROFITABILITY
INCREASING PROFITABILITY
REDUCING COST
ENHANCING PRODUCTIVITY
MARKETING DOLLARS
BUILD CREDIBILITY
THANK YOU