allama iqbal open university -...
TRANSCRIPT
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PREFACE
This report has been written in pursuance of the requirements for MBA Program. An
attempt has been made in this regard to study in depth the organizational structure,
functions of the marketing department, analysis of the market strategy, procedures,
development and management of products with a view to evaluate the market position
of the company and future prospects. It has been kept in mind to cover all types of
companies, so as to be more precise and accurate in term of rationality. Although
there may be some areas, which may have been left out, that would be shortage of
cost restraints.
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ACKNOWLEDGEMENT
I am thankful to God Almighty who remains the best support in my rainy days and
now who has enabled me to finish this report, praise to Hazrat Muhammad (P.B.U.H)
who is forever torch of guidance for mankind. It was very interesting as well as tough
task for me. I completed it with the help of some nice people.
I feel pleasure to avail this opportunity to express gratitude and obligation to my
respectable teachers, for their kind guidance and help during the course of study.
During the internship personnel manager Mr. Tahir Sarfraz extended great
cooperation for discussion and learning in different departments, especially in
marketing department.
I would also be thankful to all people who have contributed to the accomplishment of
this report. I was very lucky in having a group of people whose critical evaluations
were of great importance during the documentation of this report. Finally, I am deeply
obliged to the whole management of Tri-Pack films Limited, whose considerate and
cooperative guidance to sail through all difficulties that I have faced during the
completion this project. I extend special thanks to the following respective personnel
of the company.
Mr.Tahir Sarfraz Manager Personnel
Mr.Saleem Sheikh Marketing Manager
Mr.Raza Nawaz Research & Product development Manager
Mr.Munir Khan Manager C & I
Mr. Faisal Mehboob Production Manager
Mr. Salman Ahmad Quality Assurance Officer
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TABLE OF CONTENTS Subjects Page No.
1. Introduction … 6
2. Objectives of studying the organization … 8
3. Overview of the organization … 10
3.1 Brief History … 10
3.2 Nature of the organization … 10
3.3 Business Volume … 17
3.4 Profile of employees … 18
3.5 Product lines … 20
4. Organization structure … 24
4.1 Main offices … 25
4.2 Marketing Operations … 26
5. Structure of the Marketing department … 27
5.1 Number of employees … 28
5.2 Marketing Operations … 28
6. Functions of the marketing department … 30
6.1 Marketing Strategy … 30
6.2 Product Planning, developments and management … 33
6.3 Pricing strategy … 37
6.4 Distributing strategy … 39
6.5 Promotional strategy … 40
7. Critical analysis … 42
7.1 Successes and failures of different products. … 45
7.2 Major competitors of the organization … 49
7.3 Future prospects of the organization … 51
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8. Short Falls/weaknesses pf the marketing … 52
8.1 Critical analysis of the management patterns … 53
9. Conclusion & Recommendation for improvement … 54
10. References and sources used … 57
11. Annexes I … 58
12. Annexes II … 59
13. Annexes III … 60
14. Annexes IV … 61
15. Annexes V … 62
16. Annexes VI … 63
17. Annexes VII … 64
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INTRODUCTION
Marketing is the business function that identifies unfulfilled needs and wants, defines
and measure their magnitude, determine which target markets, the organization can
best serve and appropriate products, services and program to serve these markets and
call upon every any in the organization to “think and serve the customer” from a
special point of view, marketing is a link between a society’s material requirements
and its economic pattern of response.
Marketing today is not a function; it is a way of doing business. Marketing is
not a new and campaign on this month’s promotion. Marketing has to be all pervasive
part of every one’s job description, from the receptionists to the board of directors. Its
job is neither to fool the customer nor to falsify the company’s image. It is to integrate
the customer into the design of the product and to design a systematic process for
interaction that will create substance in the relationship.
Marketing- oriented thinking is necessity in today’s competitive world. There
are too many good chasing to few customers. Some companies are trying to expand
the size of the market. But most are competing to enlarge their shares of the existing
market. As a result there are winners and losers. The losers are those that being
nothing special to the market. The winners are those who, fully analyze needs,
identify opportunities and create value- rich offers target customer groups that
competitors cannot do much. Tri-Pack is stressing on it and is the market leader in
flexible packaging industry.
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Following are five new cornerstones of the new marketing.
a) Marketing is like going to the moon.
b) Marketing is about market creation, not market sharing.
c) Market is about process, not promotional tactics.
d) Marketing is qualitative, not quantitative.
e) Marketing is every body’s job.
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OBJECTIVES OF STUDYING THE ORGANIZATION It is to learn the marketing function having complete marketing network of the
organization, and study practical implementation of different theories that studied in
different courses of marketing.
Following are important objectives of studying the organization:
Studying the organizational structure of the organization and marketing
department.
Understanding the procedure of marketing department.
Analyzing the marketing activities.
Analyzing the marketing structure of the marketing department.
Evaluating the working style of the marketing employees.
Analyzing the weaknesses and strengths of the marketing department.
Considering the communication flow of the marketing department.
Understanding the ISO 9001 & ISO 14001 and its implementation in the
organization.
To have a hand on experience in marketing department.
To get the exposure of working in excellent environment of marketing
department.
To seek employees increment, continuous improvement and enhance
performance goals. As a market leader in packaging industry, I have learned a
lot and moreover I also suggest some valuable proposal for their improvement
in marketing system.
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BOPP in growing product of flexible packaging not only in Pakistan, also all
over the world.
To get the knowledge of a unique and new product in Pakistan.
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OVERVIEW OF THE ORGANIZATION
Brief History
Tri-Pack films limited, a public limited company, is a joint venture between
Mitsubishi Corporation of Japan and Packages limited of Pakistan. Tri-Pack was
incorporated in Pakistan in 1993 and commenced commercial production in 1995.
The company is listed on the Karachi, Lahore and Islamabad stock exchanges. It has a
paid up capital of Rs. 300 million and its growth revenues have exceeded Rs. 1.7
billion this year. Tri-Pack is ISO 9000 & ISO 14001 certified company.
Our principle area of business involves the manufacturing of biaxially oriented
polypropylene (BOPP) films, a packaging material widely used in the consumer
goods industry.
Nature of the Organization
Biaxially oriented polypropylene (BOPP) films, a flexible packaging product
widely used in consumer goods industry. BOPP is used extensively for biscuits and
cigarettes packaging over wrap, food products, medicines, confectionary, tea,
adhesive tapes and lamination. Tri-Pack is largest manufacturer of BOPP films in
Pakistan.
Production facilities are available in Hattar Industrial Estate Hattar (N.W.F.P).
Tri-Pack maintained integrated management system of ISO 9001 & ISO 14001.
Tri-Pack started its operation with one plant having capacity to produce 5400 ton’s
finished BOPP films per annum. To meet the increasing demands of the country and
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to cater customer needs efficiently in time, the company decided to go into expansion
and added another line of BOPP film in 2001, thus increasing the installed capacity to
manufacturing BOPP film from 5400 ton’s to 10800 ton’s annually. Tri-Pack is now
implementing third expansion plan of setting up 16000 ton’s per annum BOPP film
manufacturing line and Port Qasim Industrial Estate, Karachi.
This project will complete in the end of 2004. While selecting plant and
equipment, due care was taken to ensure that the new production line would be based
on the latest technology available.
Tri-Pack’s BOPP films are the products of state-of-the art technology. This
packaging film is available in five different grades along with some special films;
Plain, Composite, Pearlized, Metallized, tobacco, and special films are Matt finish,
Labellite, and Strip Metallization.
The principle properties of our products are: -
Good barrier to moisture.
Excellent transparent gloss.
Good printability.
Good sealability.
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COMPANY INFORMATION
Board of directors Auditors and tax advisor
Syed Babar Ali (Chairman) A. F. Ferguson & Company
Shahid Hussain (Chief Executive) Chartered Accountants
Hiroshi Kojima
Khalid Yaqub Legal Advisor
Mujeeb Rashid
Syed Haider Ali Khan & Piracha
Yukio Hasegawa
M.Saeed Iqbal Registered Office
(Alternate to Syed Baber Ali)
Kazuki Miura 1st Floor, Hilal-E-Ahmer House,
(Alternate to Hiroshi Kojima) Khayaban-E-Iqbal
Main Clifton Road,
Company Secretary Karachi, 75600, Pakistan.
PABX: (021) 5863941-42
Adi. J. Cawaji` 5874047-49
Fax: (021) 5860251
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Audit Committee Head Office and Sales Office
Yukio Hasegawa First Floor, Razia Sharif Plaza
Hiroshi Kojima 90-E, Jinnah Avenue.
Khalid Yaqub Blue Area, Islamabad
Mujeeb Rashid Tel: (051) 2273135, 2273907-8
Fax: (051) 2273136
Bankers Karachi
Plot No. G.1 – G-4,
ABN-Amro Bank N.V. North Western Industrial Zone
Albaraka Islamic Bank B.S.C (E.C) Port Qasim, Karachi.
American Express Bank Limited
Bank Al Habib Limited Regional Sales Offices
Bank of Khyber
Credit Agricole Indosuez Karachi
Deutche Bank A.G 101-106, Marine Pride, Block 7,
Faysal Bank Limited Clifton, Karachi, 75600
Habib Bank Limited Tel: (021) 5871801-2
Muslim Commercial Bank Limited Fax: (021) 5871803
National Bank of Pakistan Lahore
Standard Chartered Bank Limited 127- Shami Road,
Union Bank Limited Lahore Cantt, Lahore,
Tel: (042) 6660026, 6655553
Fax: (042) 6653950.
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Works Website
Hattar www.tripack.com.pk
Plot No 78/1, Phase IV.
Hattar Industrial Estate,
Hattar, N.W.F.P
Tel: (0995) 617406-7
Fax: (0995) 617054.
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VISION 2010
To increase the value of our customers, shareholders and employees by
maintaining role of market leader in the country while at the same time operating
internationally to mark our presence in the region.
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MISSION STATEMENT AND CORPORATE STRATEGY
We will:
Satisfy our customers with timely supplies of products conforming to quality standard
at competitive prices and follow-up services.
Achieve sustained growth to meet the growing demand of our customers and also for
the benefits of economies of scale to optimize return on investments.
Continue developing new markets, products, applications and replacement of other
structures in close collaboration of our customers and suppliers.
Keep on enhancing cost effective technological competence to retain our competitive
edge.
Nurture and inculcate an ethical corporate culture of fulfill our obligations towards
society and the states.
Attract competent staff, develop their professional skills and retain them through
motivation, performance reward growth opportunities.
Care for health and safety of our employees and play our due role for a cleaner
environment.
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Business Volume
The Pakistan credit rating agency (Pvt) Ltd (PACRA), an affiliate of IBCA
limited, UK has assigned this company a long-term rating of “A+” and a short term
rating of “A1“. This confirms a strong capacity of the company for timely payment of
its financial commitments.
In year 2003, the sales of Tri-Pack increased as compare to previous year. The
company is going to exporting their products to different countries. The company is
continuously improving its efficiency with automation of routine procedure ensuring
information availability and enforcement of standard operating procedure (SOP’s).
Financial highlights are as under
2003 2002
Paid up capital million rupees 3, 00 3, 00
Gross sales million rupees 1, 791.7 1, 540.14
Net profit million rupees 200.11 248.02
Cash dividend as percentage of paid-up capital 30.00 30.00
Earning per share rupees 6.67 8.27
Total assets million rupees 1, 292.45 1, 277.56
Finished BOPP film production tons 12, 065 10, 808
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Profile of Employees
Tri-Pack films limited, hired fully motivated, educated and devoted
employees, because employees are the backbone of any company. Due to this reason
company hired PHD doctors, Engineers, MBA’s, Chartered Accountants, Financial
consultants, IT specialists. Tri-Pack having his own training and development centre
(Syed Maratab Ali training & development centre) in which employees are trained for
different purposes. Company hiring different consultants from major institutes e.g.
PIMS, institutes of quality control, for better training of their employees.
Management in “M” grade.
Executives in “E” grade.
Supervisors in 11 ~ 13 grade.
Workers in 01 ~ 07 grade.
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MAN POWER
Qualifications Numbers
PhD- polymer 02
Electronics engineers 10
Electrical 08
Mechanical 25
Chemical 10
Technical diploma holders 80
MBA’s 56
Qualified accountants 08
I.T. 05
Graduates 50
Others 60
Total 314
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Product lines
A product line is a group of products that are closely related because they perform a
similar function, are sold to the same customer group, are marketed through same
channels, or make up a particular price range.
Tri-Pack is producing biaxially oriented polypropylene (BOPP) films in different
grades, and its thickness ranges between 08 to 50 microns. The principle properties of
these products are:
a) Good barrier to moisture.
b) Excellent transparent gloss.
c) Good printability.
d) Good seal ability.
Following are major grades of BOPP films:
a) Plain film.
b) Composite.
c) Cigarette grade.
d) Pearlized.
e) Metallized.
f) Special films.
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Plain
Excellent clarity, high tensile strength, good dimensional stability and flatness,
low electrostatic charge, corona treatments on one or both sides and water proof. The
plain film is used for laminating cardboard, general packaging, wrap for fresh flowers,
and adhesive tape.
Composite
This grade has a property of heat seal ability on sides, dimensional stability
and flatness, designed for high speed work ability, low friction, high stiffness, elegant
appearance, heat resistant and heat shrinking capabilities. The composite film is used
in packing of confectionary/ biscuits, soap and processed food items.
Cigarette grade
Cigarette grade both side heat sealable BOPP film is manufactured specially to
suit high-speed cigarette wrapping machines having excellent antistatic and slip with
high seal strength, clarity and moisture barrier properties. Tri-Pack has attained the
competency to manufacture the said grade and currently it is being supplied to the
tobacco industry of the country.
Pearlized
Pearlized BOPP film is both sides heatsealable one side corona treated film
having uniform thickness, low transparency for minimum see through with good seal
strength. It is suitable for high quality printing, over wrapping and flow pack
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machines for packaging. The pearlized film is used as a packaging material for
processed food, ice bars, candies, gift wrappers and tea.
Special films
To get edge over competitions Tri-Pack develops new films for catering
different customer requirements and also for export purpose.
Following are special films of Tri-Pack Films Ltd:
White film.
Strip metallized.
Tobacco shrink-wrap.
Matt finish
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IINNDDUUSSTTRRIIEESS UUSSIINNGG BBOOPPPP FFIILLMMSS Biscuits & Confectionery Soap and Detergent Ice cream Tea Cigarette Hosiery, textile and garments Match Processed Food & Pasta Lamination of Books and Magazines
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ORGANIZATIONAL STRUCTURE
BOD
MD
MM PM FM
COA RMS RMC RMN Pd.MGR TM R&D CM
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MAIN OFFICES
HEAD OFFICE ISLAMABAD
Regional Office Islamabad
Islamabad
Regional Office Lahore
Regional Office Karachi
Peshawar
Gujarat
Faislabad
Lahore
Multan
Gujranwala
Sahiwal
Karachi
Hyderabad
Sukkar
Export Division
Export Division
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Marketing Operations
During the internship period in marketing department, I have observed that
marketing department has performed all the activities, which are necessary for the
marketing process.
In marketing operations, marketing department customer’s inquiries are
received from, telex, fax, E-mails, and letters. They are directly sent to marketing
manager for approval.
The operations of the marketing department are as follows:
Analyzing the trend of the market.
Analyzing the competitions movement of marketing.
Analyzing the customer demand.
Analyzing the product development process.
Analyzing the quality assurance process.
Enhance the market share as compare to competitions.
Introduce new product in the market through research and development
process.
Focus on the international market, not only the local market.
Regional office in SriLanka for creating demand of the BOPP films.
Convincing the people to use BOPP instead of polythene and other hazards
shopping bags and packaging material.
Suggestions for Nestle water bottles to use the wrapper of BOPP films
instead of paper.
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STRUCTURE OF THE MARKETING DEPARTMENT
MARKETING
MANAGER
Research & P D
Manager
Regional Manager
Islamabad
Regional
Manager Lahore
Regional
Manager Karachi
Area Sales Manager
Export Manager
Sales Manager Team - A
Sales Manager Team - B
Sales Executives
Sales Executives
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Numbers of Employees Working in the Marketing Department
Total numbers of employees in marketing department are 43 persons. In regional
and head office Islamabad sixteen persons are working including marketing
manager, research and product development manger and export manger. In south
and central region thirteen persons each are working.
All of the employees working in marketing department having MBA (Marketing)
from different local and international institutes.
Marketing Operations
Here are basically six marketing operations that are applicable in Tri-Pack
Films Limited.
I. Market Research
When a company wants to launch a new product, there is need of
research from market; research is helpful to marketing department to make the
right decisions. Tri-Pack also conducts research about market according to its
requirements, research and product development manager is responsible for it.
II. Environmental analysis
To maintain the leadership in the market of BOPP it is very
compulsory to conduct political, economical, social, and technological
analysis time by time.
III. Product development
For better quality of BOPP films, Tri-Pack is improving research and
product development to compete the international market.
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IV. Market analysis
In market analysis Tri-Pack conducts SWOT analysis. In this activity
company identify and evaluate its strengths, weaknesses, opportunities and
threats. To fulfill its mission company capitalize on its marketing strengths
and get advantages of the most promising opportunities, company also takes
necessary actions to remove its weaknesses and to overcome on threats.
V. Marketing mix
Tri-Pack also considers marketing mix strategy and it is necessary to
fulfill its requirements for success and achievement of company goals.
VI. Feed back
After productive steps/actions feed back is necessary, which shows
actual picture of the company in them market and feed back also provide base
for next year plan. For this purpose, Marketing personnel’s visit market and
conduct research through suggestions of research and product development
manger.
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FUNCTIONS OF THE MARKETING DEPARTMENT
The basic duty of sales executive is to visit the customers at weekly and
monthly basis. Sales executive obtain the order from different customer and send
those all order to planning department in factory premises, as an internal sales order
(ISO). The planning department then filled up all the requirements of customer, where
name of the customer, address, product name, microns, ton’s, properties, sizes,
delivery date are saving in the software of planning department. Production manger,
plant manger and planning manager then setting up the production plan and give
target to the production department. After producing of film, company dispatches that
product to customer via their own direct distribution system. After the successful
delivery of product sales executives collect cheque from customers.
If customer found any problem, this is the duty of sales executive to solve that
problem or give them credit note and lift the material, because Tri-Pack have their
slogan for customers. “Money back guarantee product”.
Marketing strategy
Marketing strategy reflects the plan and goals at the corporation level and
assigns the role to every employee for the company, which they will have to plan to
achieve the goals set by the top management.
The marketing strategy of Tri-Pack is to capture the maximum market share
through better quality products, which are made according to the requirement of
customers. Tri-Pack expands its market share through new customers by using market
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penetration strategy. As per analysis of the company this is the best marketing
strategy in the present scenario for success.
Marketing strategy of Tri-Pack includes the following points:
Covering the target market.
Create awareness of BOPP films in the market.
Health hazards zero as compare to polyethylene and polyethylene.
Better quality products through ISO 9001 standard.
Maintaining the strong market position.
Goods are to be produce according to the requirements of customers.
Satisfied the customer from all aspects.
Major objectives
The major objective of Tri-Pack is to capture maximum market shares and
satisfied their customers up to their requirements.
Satisfaction
The customer satisfaction is a strategic, if the customers are satisfied
with the services of a firm and what they are getting from the firm, they will
definite loyal with the company and always became representative of the
company.
Monitoring
Tri-Pack has assigned some executives to monitor the not only their
market, also monitor the competitors products and services existing in the
market. If competitors facilitate his customer as compare to us then try to
adopt those strategies for better results. Because this is an era of competitions
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and if they do not compete with other in the market, they cannot keep their
position in the market. Tri-Pack is trying their best by offering a variety of
high quality products and services to their customers.
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Product Planning, Development & Management
Product
Product is a set of tangible and intangible attributes, which may include
packaging, color, price, quality, and brand plus the seller’s services and reputation.
SIZE
PRICE
SELER’S
SERVICES
DESIGN
COLOR
PACKAGING
SELLER REPUTE
QUALITY
BRAND
PRODUCT
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Product Planning, Development & Management in Tri-Pack
Strategies are need for the managing existing products overtimes adding new
ones, and dropping failed products. Strategies decisions must also be made regarding
branding, packing and other product features such as warranties or money back
guarantee.
Product development process
Tri-Pack is producing high quality products not only for local market and also
for exporting. The entire products are produced as per the customer requirements.
Product planning development strategy of Tri-pack includes the following
steps:
i. Generating product ideas
Products are generated in the following three ways.
By studying the market trends where the market is moving, what is the
demand?
By collecting the information from the current customer and the
prospective customers.
By studying the other firm’s product and their response.
ii. Screening the ideas
Product ideas are evaluated to determine which once warrant future study.
iii. Business analysis
A surviving idea is expanded into a concrete business proposal. That means
management.
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Identifies product features.
Estimate market demand, competitions and profitability.
Establish a program to develop a product.
And assign responsibility for future study of the product feasibility.
iv. Trail model
If the results of the business analysis are favorable, then after the approval
of management, the product is produced and checked in production
Department, which is considered more strategic for that particular product.
v. Commercialization
If a product is successful then it is started on full scale. The best
example of Tri-Pack’s research and development product is
shrink-wrap.
After its successful acceptability by the market it has been now
introduce throughout the market. Strategy for managing the product is
that customers and market reports periodically about the product,
through which it is analyzed weather any change is required or not.
Product implementation plan
These are important points of the product implementation plan:
The company to get effective and necessary decisions after sharing ideas of
the entire executive should call a meeting for decision-making purpose.
An effective coordination and relation must be established every department.
It should be realized to be very clear about the advantages and disadvantages
of each strategy to take effective decisions about its continuity to make an
effective strategic implementation.
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To increase the overall production and enhance the efficiency of the
department.
One meeting should be on weekly/ monthly basis presided by managing
director.
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Pricing strategy
Price
Pricing is the amount of money or other items which utility needed to acquire a
product. Price has a significant role in the marketing activities of the firm as well as,
the willingness or acceptance of the customers, whenever a firm decides about the
pricing of its products it must have some objectives behind rechecking again.
These objectives may be:
Profit oriented (increase the profit margin).
Sales oriented (profit making through increase the sale).
Pricing policies/strategies procedure of Tri-Pack
Tri-Pack is offering the price on the basis of three strategies, which are as follows:
Competitive base
Customer base
Product base
Pricing is an important factor in the marketing process for any company. The
pricing policy of the company should be in such a way that it should produce a
reasonable profit, for the company and satisfy the customer while calculating the price
of any company. Since two factors are very important:
Fixed cost
Variable cost
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Fixed cost
It is the cost that remains always same whether is produced large quantity or
low quantity. So companies always try to use their full capacity of production because
with increase in production the fixed cost will be decreased.
Following are important factors of fixed cost:
Overhead cost
Salaries of staff
Variable cost
It is the cost where per unit variable cost rises as the quantity decrease,
following are included in the variable cost:
Cost of raw material
Transportation
Price fixing strategies
Tri-Pack sells directly to their customer at their doorstep, and then price
components are as follows:
Fixed cost + variable cost + desired profit = price of the product
The profit margin depends upon the condition of the market. If market will be new,
the price will be also new to attract the customers and compete with existing
competitions.
The pricing policies of Tri-Pack vary from product to product and also vary
from local and international market. Sometimes price also vary from customer to
customer. Over all Tri-Pack has flexible price for his entire customer to capture
maximum market shares.
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Distribution strategy
Distribution
Distribution is very important activity of marketing with out distribution there
is no concept pf product and producer.
Market channels are the set of the interdependent organization involved in the
process of marketing a product or services available for the use or consumption. Here
strategies involved the management of the channels by which ownership of the
product is transferred from producer to customer and in many cases the system by
which the goods are moved from producer and purchased directly by final customers.
Distribution strategy
As Tri-Pack is producing an industrial product and having a name of market
leader in the market of BOPP films. Even before a product id ready for market, the
management of the company determine which methods and route will be used to get
it, there at customer end. This requires establishing strategies for the product’s
distribution channels and physical distribution. Managing a distribution channel often
begins with a producer.
Tri-Pack having their own direct distribution system. Company is responsible
to deliver the product to doorstep of the customer. Company has their own transport
through trucking. Company has their own go down based in Karachi for local and
export purpose. If customer found any defective material, company’s sales executive
lifts that material and credit note to the customer, no middle man involved in all of
this process. Company has their own distribution setup for export in SriLanka.
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Promotional strategy
Promotion as an element the organization marketing mix that serves to inform,
persuade, and remind the market of a product and or the organization selling it in hope
of influencing in the recipients feeding, beliefs or behavior.
Method of promotion
Following are major methods of promotion:
a. Personal selling
b. Advertising
c. Sales promotion
d. Public relation
e. Publicity
Promotional strategy in Tri-Pack
BOPP film is an industrial product; Tri-Pack is using push strategy for local and
international customers.
Company has their own published brochures for all of their products, which
helps customer to get the complete awareness and properties of the product.
Tri-Pack also has their own web site open for all customers and other
concerned ,where all of the in formation are present relevant to company and
product too.
Sales executives also keep in contact with all of the customers of his area and
give presentation about each product during his weekly/monthly visits, and
also facilitate customers via E-mail, telex and fax which is very helpful for
resolving the problem at customer end.
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Tri-Pack also participating in plastic relevant seminar in Pakistan and
international market. In 2003 plant manager and research and product
development manger visit a seminar of plastic films in SiriLanka and
Malaysia, where they gave the presentation about their BOPP films.
Company have arranged for the advertising of his product in the business and
chamber of commerce magazines.
Tri-Pack has also participated in different industrial exhibitions of Pakistan
and represents himself through stalls.
Every person of marketing have very good relationship with their customers,
this PR resulting enhancing the market share of company.
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CRITICAL ANALYSIS OF THEORETICAL CONCEPTS
Tri-Pack exists in the market of Packaging as market leader in Pakistan. It is
formal organization driven by letters & memos, every thing is in the published form,
and working environment is very excellent.
Company has a marketing plan on annual basis and breakdown into quarterly
and monthly targets. Employees are working in friendly environment within the teams
All of the theoretical concepts cannot implement in any organization, Tri-Pack is
marketing oriented organization and having very excellent setup of their business.
Tri-Pack is using direct marketing techniques to capture maximum market
share from both local and international market.
Some products cannot produce according to requirements of customers
demand. Therefore many complaints are received from customer side, company try to
solve all types of problems faced by their loyal customer. Even company has money
back guarantee of the product to their customer.
Tri-Pack is trying their best to maintain their internal and external
environment for maintaining its market share and maintaining its leadership in the
market.
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THE ENVIRONMENT DEFINES THE PRODUCT
HISTORY
TECHNOLOGY
MARKET DYNAMICS
PRESENT POSITION
SOCIAL TRENDS
ECONOMIC TRENDS
COMPETITION
PRODUCT
44
Promotion of the product
Company has their polices to promote their products in local and international
market.
The management has a bird eye view on all environments, which affects the
products.
They are exploring their market as a dynamic roll in flexible packaging.
They are promoting technology as compare to previous years and competition
point of view with the strong position in the market.
Company is changing its polices as per economic situation of the market and
social trends.
Overall company’s business going well as a market leader, but company should
have to use maximum promotional tools for the advertising of the products in the
local and international market. Such tools are not sufficient to compete the
requirements of the market.
45
SUCCESS AND FAILURE OF DIFFERENT PRODUCTS Ideas and opportunities have always been plentiful and there is no reason to
believe that the imagination of mankind has been exhausted. We must understand that
marketing is a learning experience. We have to apply quickly the lessons we have
learned. Education is not simply valuable unless it is applied. Product success is the
result of an effective dialogue with the market place. Failure comes when a
breakdown occurs in that communication process.
Why products succeed
Product don’t suddenly appear in on midst and overwhelm us. Most successful
technology based new products have certain characteristics.
a) They appeal to new market an expansion of existing markets so that
thousand of new and potential customers for the products are created.
b) They are not inventions, in the true sense, but assemblages of
interrelated technologies. Their creator takes advantages of existing
technology, achieving leverage by combining what they find in the
world around them into a unique package. Product innovators are
students of market and the technology. Successful products are created
by the addition of a new dimension to existing products and markets.
c) They are adjusted to market requirements. Technology products must
be molded to the markets. They must be adopted, enhanced, and
incrementally improved success comes to those who keep improving
and adopting their products.
46
d) They are developed by small teams. A sense of purpose and mission
can be better generated in small community.
e) Key customers often play a central role in their design and incremental
improvement. As we move into the future of custom designed
products, the customer will be integrated in some way in the design
process.
f) They are used in seminars, workshops and demonstrations and are
discussed in newsletters and at conferences, to educate and develop the
market.
Other things such as good luck, good management and competitor error also help
make these products successful, but continued investment in R&D is the best way to
insure products success in the market place.
Why products failed Failure is on the flip side of the coin from success. More often then not, failure
is the result of poor management and inability to efficiently implement product
development. I have observed a number of company and product failures over the
years and in poring through notes. I have noticed that they seem to have several things
in common.
a) The products do not create or expend the market. Generally the product has
undergone an incremental technical improvement with little or no
cost/performance benefit. It ends up competing with existing successful products.
b) The people who developed the first product have moved on or are no longer in a
position to judge the technology and market share.
47
c) Due to success of initiate product, arrogance sets in. Success blinds management to
the possibility of failure. They convince themselves that the market will embrace
whatever they create.
d) The company loses track of the market guiding influence. In which customer
interact with the product development team.
e) Promotional marketing techniques replace relationship marketing and market
development.
Marketing should be the guiding influence for companies so that they can adopt,
change, and quickly respond to the needs of the customers and the market.
Failure product of Tri- Pack
Overall Tri Pack is producing quality products and most of the products are
successful in the market. Twist wrap is the only product, which was failed in the
market. This product did not meet the requirement of customers, so company stopped
the production of twist wrap.
Reasons of failure Twist wrap is basically a product of polyethylene; Tri -pack produces this
product in trial mode and gets the required results. When the product was launched in
the market a lot of complaints received from market that the twist of film
automatically opens after 36 hours.
So, the product could not meet the customer requirements, company decided
to stop the production of twist wrap in future.
48
Successful products of Tri-Pack
All products, which are existing in the market, are successful, but in last six
months the research product and development personnel suggest about the trial of
following products.
ULTRA LIGHT SOAP WRAP.
SHRINK-WRAP
STRIP METALLIZATION
WHITE FILM
All of the above products succeeded in the market and fulfill all the
requirements of customers.
Reason of success
All of the above products are matching with the requirements of customer and
found no defect at customer end. PTC (Pakistan Tobacco Company) especially
appreciates on such a successful product for their packaging (shrink-wrap). White
film is also good replacement of (CPP) cost polypropylene film.
49
Major Competitors of the Organization
Tri-Pack is market leader in flexible packaging (BOPP film). Most of the
competitors of Tri-Pack are imported film manufacturer, but following are local
manufacturer are also competitors of company.
Mack Pack films Ltd. Karachi.
Astro Pack Ltd Hub (Baluchastan)
Adam Poly Craft Ltd Karachi
Master Plastic films Ltd. Gujranwala
Here are some major imported film manufacturer competitors of Tri Pack:
Dubai Poly Film Dubai
Al-Washal Plastic Sharjah
Thai Films Thailand
Khaleej Industries
China Poly films
50
Major customers using BOPP of Tri-Pack
Tri-Pack has distributed the market in three regions. Following are major
customers of Tri Pack using BOPP for flexible Packaging of their products.
ISLAMABAD REGION
Pakistan Tobacco Company (PTC)
Pine Match (Pvt) Ltd.
Shaheen Plastic Ltd.
Silver Lake Foods Ltd.
LAHORE REGION
Packages Ltd.
Tetra Pack Ltd
Ever Green Trading
Maqsood Faisal Printers
Royal Packages
KARACHI REGION
B.P Industries (Pvt) Ltd.
Metatex (Pvt) Ltd.
Lakson Tobacco Company (LTC)
English biscuits Manufacturing (EBM)
51
Future prospects of the organization
To meet the customer requirements and capture market share, Tri-Pack goes
on expansion program to enhance its production capacity, by installation of their
BOPP films manufacturing line with annual capacity of 16,000 ton’s at Port Qasim
industrial estate Karachi is in progress. Letters of credits for major plants and
machinery has been established. Construction of civil work is already in full swing
and erection is in completion stage, the production will start in December 2004.
The estimated project cost is Rs. 1.4 billion which shall be finance through
a long term loan of Rs. 1.0 billion locally and remaining amount through company’s
own internal cash resources with the commissioning of third line, BOPP film will be
freely available locally which would help our country to save foreign exchange
presently used for import of BOPP films.
Company shall endeavor to retain and enhance their market share and explore
new and safer business opportunities. Efforts will also be made to further improve
profitability by focusing on new products, exercising cost controls and maintaining
efficiency. Company has a plan after successfully completion of BOPP third line, to
maintain their own printing unit in Karachi. Printing of BOPP will enhance the
customer satisfactions and increase the market share in BOPP industry.
Tri-Pack has also long term planning capturing international market. Company
will shift BOPP Line – I to Sri Lanka in 2005 and will shift BOPP Line – II to
Morocco in 2006.
52
SHORT-FALLS / WEAKNESSES OF THE MARKETING DEPARTMENT Tri-Pack is a name of market leader in BOPP films but marketing department
has some weaknesses also, which required promoting stability as market leader.
I have observed following points during my internship:
No training of the latest facilities of business communication, like E-
Commerce.
Less Promotional activities
Centralized control and decision making
Marketing department is not so strong likewise bureaucratic style
Shortage of marketing staff.
Marketing department follows reactive strategies instead of proactive
strategies.
Marketing department is not analyzing the customer’s strength and
weaknesses, due to which sales are not increasing up to mark.
Alternative products are available in the market and company’s marketing
department is not correctly analyzing the competitors, which are trading these
products.
Less product information and less customer satisfaction.
53
Critical analysis of the management patterns
Following week areas, which need to be improved of marketing operations of
Tri-Pack films Limited.
Close customer relationship.
Try to increase regional offices in different areas of Pakistan currently only
three regional offices (Lahore, Karachi and Islamabad) are in operation.
Marketing department could not capture export market they are only
exporting to SriLanka and UAE.
Marketing personnel’s are not fully involving in new product development
with company's production department.
Visit to new market for awareness of BOPP and flexible packaging in local
and international market.
Developing new ideas.
Improve their professional skills
Having a bird’s eye of customer requirements.
Tri-Pack has developed four new products this year, but marketing department
could not fully introduce these products to the customers.
Marketing department is not fully satisfying the customers with regarding
customer complaints.
Training and development required for marketing personnel’s for improving
their professional and selling skills.
Marketing personnel’s should participate in different exhibition and visiting
different countries for improving the market share.
54
CONCLUSION & RECOMMENDATIONS FOR IMPROVEMENT Conclusions
During my internship, I have pointed out following conclusions:
Best environment of marketing department.
Strong marketing policies.
Imported machinery.
Qualified and motivated staff.
Strong market leader
Awareness of products
Customer satisfaction procedure is very good.
High financial resources.
More customers in International market.
Fully computerized system of production.
RD&C department is working tirelessly.
Every department is working with the standards of ISO 9001 and ISO 14001.
Research product and development procedure is very good.
Marketing strategies are always made to keep in mind the current market
situation and competitor’s analysis.
Marketing personnel continuous visit to existing customer for getting new
orders.
55
Recommendations
On the basis of my studies and analysis, following areas are recommended to improve
the results of the organization.
The company should arrange the proper training program relevant to technical
knowledge of product; this would improve the efficiency of marketing
department.
Hired only those employees having technical or science background
qualification with MBA.
Meeting should be arranged with production manager for discussion about
complaints on monthly basis
The company should focus the attention to customer services and proper
complaint handling to improve the company image in the market.
The company should arrange the visit of marketing manager, Regional
manager for the covering, and studding of international market.
Motive to customers to visit factory for better knowledge of the product.
The company is going for expansion; therefore company should increase the
staff of marketing department for better results.
Decision making power should be decentralized in each region.
The company should improve the communication process among the different
departments for getting better results.
Appreciation and monetary regard is necessary on better performance of sales
executives.
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Marketing personnel’s should visit to factory premises for getting product
information, so that they are fully aware the products and its specifications.
57
REFERENCES AND SOURCES USED
For completing this project I have taken help from following books as
references.
a. Annual Report Tri Pack
b. Tri news Tri Pack
c. Different books, magazines Syed Maratab Ali Training and.
Development centre of Tri- Pack
d. Marketing Ettzel, Walker and Stanton
e. Marketing Management Philip Kotler
f. E-Marketing Judy Strauss
g. Business Studies David Needham, Rober ransfield
h. Relationship Marketing Regis McKenna
As a source for better material of my report, I have taken help from marketing
personnel’s and also from web site of Tri Pack films Ltd.
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ABBREVIATIONS USED
TPF Tri-Pack films Ltd.
BOPP Biaxial oriented Poly Propylene films
BOD Board of Directors
MD Managing Director
MM Marketing Manager
FM Finance Manager
HRD Human Resources Development
AM Area Manager
RM Regional Manager
Mgr Manager
SE Sales Executive
FP Flexible Packaging
RD&C Research development&control
R&PD Research and product development
PIMS Pakistan institute of management
Sciences
C&I Control and instrumentation
..Annexes I..
59
7500
2260
8400
3598
9720
4889
10870
5456
12200
5967
13600
8058
15500
10700
19000
12000
02000400060008000100001200014000160001800020000
Ton
nes
1996 1997 1998 1999 2000 2001 2002 2003
Total Tri Pack
MARKET SHARES
..Annexes II..
60
17501540
160314
455586
665840
1215
0200400600800
100012001400160018002000
1995 1996 1997 1998 1999 2000 2001 2002 2003
Sales in million Rs
SSAALLEESS GGRROOWWTTHH ((MMIILLLLIIOONN RRSS))
..Annexes III..
61
FFIINNAANNCCIIAALL TTRREENNDDSS
..Annexes IV..
62
EEAARRNNIINNGG PPEERR SSHHAARREE
DDIIVVIIDDEENNDDEESS
..Annexes V..
63
MMAARRKKEETT VVAALLUUEE PPEERR SSHHAARREE VVSS
BBRREEAAKK--UUPP VVAALLUUEE PPEERR SSHHAARREE
..Annexes VI..
64
Regards, Muhammad Akhtar Tahir [email protected] [email protected] +92-321-4003031 +92-44-2880715
RREEVVEENNUUEE UUTTIILLIIZZAATTIIOONN
..Annexes VII..