TCI PACKAGING DIVISION

PRESENTED BYFARAAZ MOHAMMED - 14050

GAYATHRI SATISH- 14055PARAS MAINALI-14097

SIDDHARTH HEGDE- 14152

FACTS• TCI Established in the year 1910 as Cigarette manufacturing and marketing organization

• One of the most diversified business and professionally managed business houses in India

• $1.5 billion enterprise as of 1992

American33%

East Europe9%

West Europe30%

West Asia4%

Oceanic5%

South East Asia18%

Exports from India Year 1991

STAKEHOLDERS• Exporters

• Tin Manufacturers

• Producers

• Importers

• Channels

• Packaging Industry- Kovak packaging, CAM Company’s packaging & BIB Flexi Pack

PACKAGING OF CASHEW KERNELS• Bulk exports using ‘Vitapack’ System

• Tins are filled using Jerk moment

• Placed under ‘Bell Jar’ and vacuumized upto 26 Inches

• Tins are then sealed with tin lid and Lead soldering

PROBLEMS• Lead Solder Contamination- Health Hazard

• Disposability- Floor Space & Disposing

• Recyclability- Green initiatives

• Safety Aspects- Sharp Edges

FEATURES REQUIRED IN BULK PACKS• Enough strength to withstand pressure of handling and transporting

• Containers should be leak proof

• Shelf Life of cashews

• Splits and broken percentage

• Resistance to pest in Go downs

• Price of bulk packs

• Investments

A-B-C-D FRAMEWORK• Access

◦ Mainly exported to US and UK market◦ They have high levels of living standards and proper distribution systems◦ India is the largest exporter of cashew kernels, hence can be accessed through India

• Buying Behaviour◦ Chain stores are the buyers mostly◦ Indian cashew is in good demand and are of good quality◦ In 60-70% of the cases, the product is repacked under their own brand name – local brands affect

buying behaviour

• Consumption Characteristics◦ Urban consumption patterns◦ Price◦ Freshness and hygiene◦ Delivery time◦ Safety (Lead contamination in tin, sharp edges)

• Disposal◦ Empty tins to be scrapped◦ Occupies large floor space since its not collapsible◦ Sharp edges may injure people◦ In some countries, importers are asked to pay for recycling

MARKETING STRATEGYFor the new packaging strategy the following could be done-

Product-

Using the new technology BIB

BIB technology was convenient to use, hygienic and tamper proof.

The advantage of using this technology is that is can be afforded at a lower cost then the tin containers.

Price-

Using BIB also reduced the cost compared to the tin containers

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Place

Countries that are exporting cashew kernels

New countries which promote environment friendly packed products

Promotion

TCI can promote their product by showcasing the different certification like

Certification from EIA (Export inspection Agency) certification in using this BIB.

Certification from the Association of Cashew Exporters and CCPE (Council for Cashew Exports and Promotion)

By Cost advantages of this new pack when compared with the old traditional one.

TCI can create awareness of its usage. Focusing on the environment friendly aspects

AAA STRATEGIES FOR GLOBAL VALUE CREATION

• Adaptation - different strategies that adjust to differences across countries and adopt different packaging methods according to the needs of the countries.

• Aggregation - strategies that overcome some differences among countries by grouping them based on similarities and coming up with new technology and making some innovation in the existing bulk packaging systems, so that countries where the cashew kernel are exported they can be satisfied and problem can be minimized

• Arbitrage - strategies that focus on exploiting differences instead of treating them as constraints and make sure of gaining advantage from countries

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CAGE FRAMEWORKCountries/Attributes Cultural distance Administrative

distanceGeographic

distanceEconomic distance

USA & INDIA

• Official language = English

• Indian population 3%, 3.4 Million

• Christianity- 84%

• Lack of common currency

• Federal Govt.• 12th ranked free

trade(75%)• Edible fruits &

nuts (3.2%)

• 13568 km• Difference in

climate.

• US GDP: 16.8 trillion USD

• India GDP: 1.88 trillion USD

• FDI to US from India 5.5K mill

UK & INDIA

• Official language = English

• Indian population 2.5%, 1,412,958 people

• Christianity- 72%

• Lack of common currency

• 13th ranked free trade(74%)

• 7658 km• Atmospheric

instability

• UK GDP: 2.5 trillion USD

• Most favoured FDI destination in Europe

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Countries/Attributes Cultural distance Administrative

distanceGeographic

distanceEconomic distance

NETHERLANDS &

INDIA

• Official language = Dutch• No dialect = English known

only to 86%• Indian population 1.5%,

123,000, Second largest in Europe

• Roman catholic-48%

• Parliamentary Govt.• 17th rank in free

trade(74%)• NIA – 65 years of

history

• 7106 km• Atmospheric

instability

• GDP Netherlands: 800.2 billion USD

• INDIA stands 5th largest of FDI

SINGAPORE & INDIA

• Official language = Malay• Indian population 9%,

5,567,301 (July 2014 est.)• Buddhist – 46%

• Parliamentary Govt.• 2nd rank in free

trade(90%)• Bilateral trade in

2013,S$25.5 billion 6th largest trading partner

• 3423 km• No difference in

climatic conditions

• GDP Singapore:

297.9 billion

Source: http://cashewindia.org/statistics

RECOMMENDATIONS• BIB Packagingo Recyclableo Degradableo Varied sizes and formso No lead contaminationo Low cost packaging system

• Issueso 7% broken and splitso Susceptible to rats

• Kovak Packagingo For small distances. Example: Singapore, Hong Kong

THANK YOU!