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Strategic Marketing Plan for Jute and Jute Goods in the Echa S Been Developed by the LEI-DLO for the International Jute Organization

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Strategic Marketing Plan for Jute and Jute Goods in the Echa S Been Developed by the LEI-DLO for the International Jute Organization Drs.A.C .Koste r Mededeling 477 Drs.A.F .va n Gaasbeek STRATEGIC MARKETING PLAN FORJUT E AND JUTE GOODS INTH EE C January 1993 Agricultural Economics Research Institute (LEI-DLO) ABSTRACT STRATEGICMARKETIN G PLANFO RJUT EAN DJUT EGOOD SI NTH E EC Koster,A.C .an dA.F .va nGaasbee k Agricultural Economics Research Institute (LEI-DLO),199 3 Mededeling 477 ISBN90-5242-200- 1 117p. ,tab. ,fig . A strategic marketing plan for jute and jute goods in the ECha s been developed by the LEI-DLO for the International Jute Organization. Portfolio analysis of the market position of the various jute goods in the EC,base d on a description of the jute sector in the EC,ha sbee n usedfo r the development of this strategic marketing plan.Specia l emphasiswa sgive nt o market promotion, including anumbe r ofessen ­ tial prerequisitesfo r generic andcountry-wis e market promotion activities. Portfolio analysis/Marketing plan/Market promotion/Jute/lnternationaljut eorgani ­ zation/European communities CIP-GEGEVENSKONINKLIJK E BIBLIOTHEEK,DE NHAA G KOSTER, A.C. Strategiemarketin g plan for jute andjut e goods inth eE C /A.C. Koster, A.F.va n Gaasbeek. -Th e Hague: Agricultural Economics Research Institute (LEI-DLO). - Fig.,tab .- (Mededelin g / Landbouw-Economisch Instituut (LEI-DLO); no .477 ) ISBN90-5242-200- 1 NUGI83 5 Trefw.:jute . Thecontent s of this report mayb equote d or reproduced without further permis­ sion. Dueacknowledgemen t isrequested . CONTENTS Page PREFACE 7 EXECUTIVE SUMMARY 9 PARTONE : ECMARKET S AND PORTFOLIO ANALYSIS 13 1. INTRODUCTION 14 1.1 Objective 14 1.2 Procedure 15 1.3 Outline of the report 15 2. MARKET DESCRIPTION 17 2.1 Introduction 17 2.2 Belgium 17 2.3 United Kingdom 18 2.4 The Netherlands 20 2.5 West-Germany 21 2.6 France 22 2.7 Italy 23 2.8 Spain 24 2.9 Portugal 25 2.10 Total EC 26 2.11 The production countries 29 3. JUTE PRODUCTS PORTFOLIOANALYSI S ON ECMARKET S 33 3.1 Introduction: model of portfolio analysis 33 3.2 Product groups 37 3.2.1 Productgrou p one: rawjute/jut e fibres 37 3.2.1.1 Strategic importance 37 3.2.1.2 Degree of managing difficulties 40 3.2.2 Product group two:jut eyarn s 42 3.2.2.1 Strategic importance 42 3.2.2.2 Degree of managing difficulties 43 3.2.3 Product group three: Fabrics 46 3.2.3.1 Strategic importance 46 3.2.3.2 Degree of managing difficulties 48 3.2.4 Product group four: sacksan d bags 50 3.2.4.1 Strategic importance 50 3.2.4.2 Degree of managing difficulties 51 3.2.5 Productgrou p five:fel t and nonwovens 53 Biz. 3.2.5.1 Strategic importancean ddegre eo fman ­ agingdifficultie s 53 3.2.6 Productgrou psix : Geotextiles 54 3.2.1.1 Strategicimportanc ean ddegre eo fman ­ agingdifficultie s 54 3.3 Theen dtablea uo fth e portfolioanalysi s 56 3.3.1 Theportfoli o matrixexplaine d 57 3.3.1.1 Portfolio position rawjut eproduc tmarke t combinations 60 3.3.1.2 Portfolio positiono fyar nproduc t market combinations 61 3.3.1.3 Portfolio positiono ffabric sproduc tmarke t combinations 61 3.3.1.4 Portfolio positiono fsack s and bagsproduc t marketcombination s 61 3.3.1.5 Portfolio positionfelt/nonwove nproduc t marketcombination s 62 3.3.1.6 Portfolio positiono fgeotextile sproduc t marketcombination s 62 3.3.2 Choices 62 PARTTWO :MARKE TPROMOTIO N 63 4. STRATEGICFRAMEWOR K 64 4.1 Generalframewor k forstrategi cplannin g 64 4.1.1 Strategicalternative s 66 4.1.2 Marketing implementationso fstrategi calternative s 67 4.2 Introduction: themarketin g mix 68 4.2.1 Product:intrinsi cproduc tattribute s 68 4.2.2 Place: allocationan ddistributio n 69 4.2.3 Price 69 4.2.4 Promotion 69 4.2.5 Themarketin g mixfo rjut egoods : generalconclusion s 70 4.3 Themarketin g mixfo rth e major product/marketcombination s 71 4.3.1 Carpetyar n 71 4.3.2 CarpetBackin gClot han dHessia nBackin g 72 4.3.2.1 CarpetBackin gClot h 72 4.3.2.2 HessianBackin g 73 4.3.3 Sacks andBag s 74 4.3.4 NewApplication s 75 5. MARKETDEVELOPMEN TAN DMARKE TPROMOTIO N 78 5.1 Introduction 78 5.2 Genericpromotio nfo ral ljut egood s 79 Biz. 5.2.1 Genericpromotio nfo rjut ea s theenvironmenta l friendlyalternativ e 79 5.2.1.1 Strengthan dweaknes so f environmental arguments 79 5.2.1.2 Thecontaminatio n problemi nfoo d packaging 79 5.2.1.3 Bio-degradability 80 5.2.1.4 Environmentalaspect so f processingjut e 5.2.1.5 Conclusion 80 5.2.2 Marketing Intelligencean dinformatio na s promo­ tional instruments 80 5.2.2.1 Marketing IntelligenceSyste m 81 5.2.2.2 JuteBulleti n 82 5.2.2.3 Politicallobb yt o prevent legislational barriersagains tth eus eo fjut e 83 5.3 Marketpromotio nfo rjut ecarpe tyar nan dcarpe t backing 84 5.3.1 Introduction 84 5.3.2 Genericpromotio nfo rth ewhol eo fth e EC 85 5.3.2.1 Tradefair s 85 5.3.2.2 Consumerorientate d promotioni n cooperationwit h retailchain s 86 5.3.2.3 Consumerorientate d promotionthoug h editorialsi ninterio rdecoratin g magazines 87 5.3.3 Genericpromotio n percountr y 88 5.3.3.1 Belgium 88 5.3.3.2 Germany 89 5.3.3.3 France 90 5.3.3.4 Spain 90 5.3.3.5 United Kingdom 90 5.4 Market promotionfo rjut esack s and bags 91 5.4.1 Introduction 91 5.4.2 Genericpromotio nfo r Europe 92 5.4.2.1 Productdevelopmen t as a promotional activity 92 5.4.2.2 Recyclingjut ebag sa s apromotiona l activity 92 5.5 Market promotionfo rjut egeotextile san d nonwovens 93 5.5.1 Introduction 93 5.5.2 Genericpromotio nfo rth ewhol eo f Europe 93 5.6 Market promotionfo rdiversifie d products 94 5.6.1 Introduction 94 5.6.2 Householdtextile san dsof tluggag e 94 5.6.2.1 Europeandesig nan dfai r presentation 94 5.6.3 Alljut ecarpet s 95 5.6.3.1 Europeandesig n 95 Biz. ANNEXES 97 Annex 1 References 98 Annex 2 SupplyBalanc eSheets .1986-1991 , EC 100 Annex 3 EuropeanCoffe eFederatio n regardingcontaminatio n 106 Annex4 Importan dexpor t priceso fjut e goodsan ddolla r valuesimport/expor t 108 Annex 5 Listo finterview s 113 PREFACE On the sixteenth session of the International Jute Organization - Com­ mittee On Projects (IJO-COP), New Delhi 1991,th e committee recommended to start the development of a strategic marketing plan (SMP) for jute and jute products on theWester n European market, asa pre-projec t activity.Th e purpose of this plan ist o provide aframewor k for promotional activities by the IJOo nth eWester n European markets.Th e International JuteCounci l has approved this proposal in her 16thsession . The IJOauthorize d the LEI-DLOt o developthi s marketing plan,t o bepre ­ sented at the eighteenth session of the International Jute Organization in the autumn of 1992i n Beijing,China .Durin gth eseventeent h session in April 1992,th e first part of thestud y has been presented to the IJO-COP,b y which both producing and consumer countries were given the possibility to give their vision on the progress of the SMP and to comment on the further development of thestrategi c marketing plan. Thefirs t part of this report givesa n overview of the most important West European markets in terms of import, export and consumption of jute-pro­ duct and of the market structure, followed by a description of the position of thejut e products onth evariou s markets ina portfoli o analysis. Thesecon dpar t of thestudy ,whic h hasstarte d after the discussiono n the IJO-COP meeting in April 1992, deals with the strategic and promotional aspectso fjut e onth eWester n European market. The study ends in chapter five with conclusions and recommendations for promotional activities. The final report was presented to and acknowledged by the 18th session of IJO-COPa t Beijing,China ,novembe r 3rd-5th 1992. Disclaimer: the views expressed in this report do not necessary reflect the views of the International JuteOrganizatio n and itsmembe r countries. Thedirector . The Hague,Januar y 1993 */L.CfZachariasse EXECUTIVESUMMAR Y The development of astrategi c marketing plan for the promotion of jute and jute goods in the European Communities issubjec t of this study by the LEI-DLO research institute.Th e description of the conversion chain in theE C and asecto r level portfolio analysis of the variousjut e products isuse da sa basisfo r thestrategi c planning,wit h specialemphasi so n market promotion. Market description 1. The intra ECtrad e of jute and jute goods is rather high in the statistics. Also the imported and exported quantities do not match completely. The reasonfo r this istha t much intra ECtrad e isjus t amatte r of 'paper'-trade. 2. The number of companies connected to the trade in jute goods is large. Only asmal lamoun t of companies (about 45) havea larger interest in the jute trade.Mos ttrader sar especialize d inon eo rtw ojut e products. Figure 1 Diagramof the ECjute sector 3. The UK isth e main basis for brokers, who in general also handle goods for destinations outside of theEC .
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