BRITISH

COLUMBIA BOX
LIMITED

Marketing Management I
Group 9
AGENDA
Introduction​
Problem Recognition
​Evaluation Alternative
Timeline
Purchase Decision Recommendation
Presentation title 3

INTRODUCTION
British Columbia Box Limited is a packaging manufacturing
company having plants in Vancouver, Barnaby, Victoria, and
Toronto. With its main product being packaging boxes, for the
brewery industry.
Paul Flynn is the plant manager of the Vancouver plant of BCB.
Within this report, we shall understand and analyse the process
of market research conducted to arrive at a crucial decision for
the company.
 PROBLEM
RECOGNITION

In December of 2016, Paul Flynn and Mr. Wood, the plant

manager of British Columbia Box Limited Vancouver plant is
pondering the requirement to replace the 18-year-old folder
gluer machine at the plant which did not print, requires
frequent repairs, and has high defect rate. It also was not
meeting the capacity requirement that the business needed to
function at, which resulted in low business output.
The details for this problematic machinery was explained in a
memo issued by the operational management.
 5

INFORMATION SEARCH
• Folder Gluer machinery being a high involving, extensive purchase, Flynn needed to conduct exhaustive
research before arriving at a decision.

• It was only after Flynn convinced and persuaded all appropriate decision makers at the Vancouver plant,
such as the General Division Manager, was he able to negotiate the capital request sent to Los Angeles
and Canadian offices.

• The conference organised by the Technical Folder Gluer machinery being a high involving, extensive
purchase, Flynn needed to conduct exhaustive research before arriving at a decision.

• To quantify the advantages of replacing machinery, Flynn approaches Ray Dover, sales manager, who
assures Flynn that replacing the existing machinery with a higher capacity of 50” x 110” would result in
$1,000,000 additional sales. By including a sales prediction figure, Flynn can quantify the advantages of
replacing existing machinery. This motivates him to further research options of manufacturers. By
interdepartmental flow of information Flynn produces a stronger analysis for his decision.
 6

EVALUATION OF ALTERNATIVES
Upon receiving the approval for the capital expenditure in November of 2016, Flynn begins to conduct
thorough market research of the assorted options for Folder Gluer machinery. Namely, Bale and
Andrews.

Given below is the Expectancy Value Model for the two main alternatives, Bale and Andrews:

ATTRIBUTES
Industry Previous
Model Price Reputation CNC Functions Experience Features
  Weight: 25 Weight: 20 Weight: 30 Weight: 15 Weight: 10
Bale (A) 10 10 10 9 8
Andrews (B) 8 9 9 8 10
           
Model (A) = 0.25 (10) + 0.2 (10) + 0.3 (10) + 0.15 (9) + 0.1 (7) = 8.92
Model (B) = 0.25 (8) + 0.2 (9) + 0.3 (9) + 0.15 (8) + 0.1 (10) = 8.69
EVALUATION OF ALTERNATIVES
7

 Reasons for opting Bale –

-Tried and tested reliability with functioning machines already out in the
industry.

-Bale was known to be better in computerized numerical control (CNC)

functions, had a better record of accomplishment in numerically
controlled functions and had better and more easily available CNC
support (online support available).

-British Columbia Box limited (BCB) and its parent company had been
using bale machinery previously and their experiences had been positive
with the company’s machines.

-Bale’s machinery has the capabilities to run self-diagnostics and identify

source of problem.

-Bale’s machinery is cheaper alternative with installation of machinery

included at $490,000.
 8

 Reasons for opting Andrews

- Andrews’ Scotsman vacuum feeder is known to be safer and more

reliable.

- Andrews’ machinery has eight features more than bale’s machinery.

-Bale’s die cutters were problematic whereas Andrews’s ones were not.

-Andrews price point includes installation of machinery as well as

training of personnel.

-Andrews had an ink washup system which worked efficiently, whereas

bale’s ink washup system was less than satisfactory.

-The difference in price would not matter overall for the business in the
long term.

-Upon visiting locations wherein both machines are used, andrews

performed better than bale. At $510,000, it is the more expensive
alternative.
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TIMELINE

2012 APRIL 2015 APRIL 2016 NOV 2016 DEC 2016

Flynn and Wood discuss Flynn discuss with Ray Flynn writes a capital Final approval for capital Bale - $490,000 +
the need to replace the Dover about the expenditure request for expenditure arrives. Installation
folder gluer machinery advantages of replacing $586,000. Asks major Andrews - $510,000 +
machinery has on sales. manufacturers for serious Installation + Personnel
quotes. Training
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PURCHASE DECISION
RECOMMENDATION

Upon deliberation and an analyzing the preferences of the company it is preferable for
Flynn and BCB to opt Bale Flexo Folder Gluer due to its industry reputation,
historical performance, CNC expertise, and economical advantage.
THANK YOU
Group 9
Ashutosh Agarwal
Aman Vijay
Basant Basavaraj
Somesh Chincholikar
Saksham Agarwal
Tejul Bhawalpuria