ICT Role in 21st Century Education & its Challenges.pptx
Tinplatee Company of India
1. TINPLATE COMPANY OF
INDIA – NEED FOR A
CONCEPTUAL FOCUS
Syndicate 5 :
Ria Agustriana
29111321 Agung
Mahendra 29111324
Rangga Tri Raeros
29111314
Joseph Enrico
29111349
Karina Soedjati
29111309
2. 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
• 1997 TCIL establish a new cold rolling facility
• TCIL supplied tinplate to manufacturers in four major segments :
• Edible oil cans
• Soft drink crowns
• Processed food
• Batteries
3. Tinplate product and Classification
• Tinplate is a low carbon steel
• Used primarily for packaging for any food or non-food
Prime Grade Tinplate Secondary Grade Tinplate
• Free from any visual defects • Banned for food packaging in a few
countries (carcinogenic)
• Used for food packaging • Used for non-food
• The customer had high-speed • Unsuitable for battery jacket
can-making equipment
Classification
4. Tinplate product Competition
• Compete with other materials
• Plastic
• PET (polyethylene terephthalate)
• Aluminum
• Black plate
• Tetra Pak
• Paper
• Foreign Tinplate Company
• Fritz
• Sukai
• TMN
• Domestic Tinplate Company
• SAIL
• SAIL did not compete directly with TCIL in any segment
5. Tinplate product Market
Tinplate market was 210,000 metric tons / annum
The domestic industry installed capacity of 240,000 metrics
tons / annum
TCIL production
TCIL produce about 60,000 metric tons / annum
SAIL production
imported tinplate
SAIL produce about 20,000 metric tons / annum
Both producers operated much below their installed capacity
6. Tinplate product Market
Market Size = 210,000 Metric tons (MT)
6% The market size is
dominant by Food
sector with 94%
Non-food sector
Food sector
94%
Consumption of Tinplate
1%
7% 5%
Almost ¾ 17% Edible Oil
consumption of Processed Food
Tinplate were used for Crown
70%
Edible Oil Battery
Miscellaneus
7. Growth of Tinplate in Specific Segment 1993 to 1997
(in percentage) (from exhibit 4)
25
20
15
10
5
0
1993 1994 1995 1996 1997
Battery Edible Oil Crown Precessed Food
• Battery segment is in the growing stage
• Edible Oil segment decreased slowly each year
• Crown segment is steadily increase every year
• Processed food segment having a slight increase
9. 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
10. 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
11. 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
12. 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.
• India’s low literacy level
13. 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 95-96 96-97
Tinplate Prime Tinplate Secondaries
14. 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 95-96 96-97 97-98 98-99
Tinplate Prime Tinplate Secondaried
15. TCIL and the Buying Behavior
• TCIL was caught between the highly price sensitive lower-end
customer and the high-service expectations of the high-end
customers
• The high-end customers have more favorable perception of
foreign companies
• TCIL wasn’t capable of responding to the changing and
sensitive needs of customers
16. Distribution and Promotion
• TCIL factory in Jamshedpur India
• Distributed its products through a network of 15 agents
throughout the country
• Personal selling was the dominant promotion method used by
all companies in all segment.
17. Customer Satisfaction
(from exhibit 3)
Product
parameter TCIL FRITZ SUKAI Average Battery :
Temper 2 5 4 3.6 For all parameter
Size 2 5 5 4 except price, TCIL had
Dimension 2 5 5 4
the lowest score
Battery Productivity 3 5 4 4
Service 3 4 3 3.3 compared to its two
Price 5 4 4 4.3 competitors
Delivery 3 5 5 4.3
Total Score 20 33 30 27.6
Product
parameter TCIL SAIL Unorganized Average
Edible Oil :
Price 3 4 5 4 In this segment TCIL
Edible Oil
Brightness 5 4 2 3.6 has the highest
Delivery 5 3 2 3.3 score, but the
Service 5 3 2 3.3
Total Score 18 14 11 14.3 competitors had
better price
18. Customer Satisfaction
Product Soft Drink :
parameter TCIL FRITZ SUKAI Average
Size 2 5 5 4 TCIL is worse than the
Soft Dimensional 2 5 5 4 competitors in all
Drink Price 3 5 5 4.3 parameter except
Crowns Delivery 5 4 4 4.3
delivery
Temper 3 5 5 4.3
Total Score 15 24 24 21
Product parameter TCIL TMN SUKAI Average Processed Food :
Delivery 5 4 4 4.3 TCIL’s delivery and
Lacquer adhesion 4 5 4 4.3
Processed
Temper 3 5 4 4
price is better than its
Food competitors, but
Price 5 4 4 4.3
Dimensional 3 5 4 4 overall TMN has the
Total Score 20 23 20 21 highest score
19. TCIL’s Costs by Segment
(from exhibit 6a)
TCIL'S COSTS BY SEGMENT
35,000
30,000
25,000
20,000
Axis Title
15,000
10,000
5,000
0
Battery Edible Oil Crown Processed Food
Total Cost 29,450 22,900 26,950 28,200
Profit 6,000 3,000 3,000 5,500
20. Selling Prices of TCIL and Competitors
(in Indian Rupees per metric ton)
(from exhibit 6a)
50000
45000
40000
35000
30000
TCIL
SAIL
25000
FRITZ
20000 SUKAI
TMN
15000
10000
5000
0
Crowns Battery Processed foods Edible oil
21. Standard Required for The
Food Sector
Mandatory to use prime tinplate
Free form defects food products no become carcinogenic
Can manufacturers for national brands followed BIS
Small scale manufacturer may not follow standard because of
price consideration
The lack of mechanism to monitor the standard of the tinplate
encouraged the use of secondary tinplate for food packaging
22. Buying Influences in Tinplate Purchases
(from exhibit 7)
Buying Centre Influences
Purchaser Decision-maker Influences User
Battery Purchaser CEO Production/ Production/
Marketing/ Quality Control
R&D
Edible Oil Purchaser/ CEO/ owner of the Middleman/ Production/
owner of the edible oil/ vanaspati Marketing Quality Control
edible oil/ company
vanaspati
company
Crown Purchaser CEO Production/ Production/
Marketing/ Quality Control
Quality Control
Processed Purchaser/ CEO/ owner of the Marketing/ Production/
Food owner of the company Packaging Quality Control/
company division/ Packaging
Production/ division
Quality Control
23. 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?
24. Threats, Opportunities and Its
Implications in the Tinplate Industry
(from exhibit 2)
Threats Implications
Lowering of customs tariff Global tinplate manufacturers compete aggresively
Household units Demand for smaller packaging with increased
becoming smaller buying frequency (tinplate manufacturers rely
heavily on bulk container units)
Regulating standards Widespread use of defective tinplate
lacking enforcement
Opportunity trends Implications
Growth in the hotel industry Sustained demand for bulk packs
Political climate showing signs of Survival of strongly focused, customer-
continuity in policies towards oriented companies
industries
High industrial growth (9%) Increased demand for branded/packed
products, the driving force would continue
to remain buoyant
25. SWOT Analysis
Strength Weakness
• The highest score of customer • Other segment like battery, soft drink
satisfaction in Edible Oil segment crown and processed food has the
• Capable to cater to the technical lowest score in customer satisfaction
requirements of the customer • Operated much below their installed
• High production capacity capacity
• Wasn’t capable of responding to the
changing and sensitive needs of
customers
Threat Opportunities
• Compete with other tinplate producer • Food sector is the biggest market size
and other company product of tinplate especially in Edible Oil
• The secondary tinplate grade being • Processed food is the second
imported in a large portion profitability segment and it’s only
• Edible Oil segment decreased slowly compete with 1 competitor
each year and highly price sensitive • Battery segment is in growing rapidly
• Lack of tinplate standard control and has high profitability
26. 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 TCIL’s 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 TCIL’s tinplate
27. 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
TCIL’s tinplate