The Study on Marketing of Flex X-Span Net Wrap Thesis
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THE STUDY ON MARKETING OF FLEX X-SPAN NET WRAP THESIS SUBMITTED BY LOPES ARNOLD LIONEL IN PARTIAL FULFILMENT OF MASTERS OF MANAGEMENT STUDIES OF MUMBAI UNIVERSITY UNDER THE GUIDANCE OF Mr. PRANAV S. JASANI MMS BATCH OF 2012-2014 XAVIER INSTITUTE OF MANAGEMENT AND RESEARCH THE STUDY ON MARKETING OF FLEX X-SPAN NET WRAP THESIS SUBMITTED BY LOPES ARNOLD LIONEL IN PARTIAL FULFILMENT OF MASTERS OF MANAGEMENT STUDIES OF MUMBAI UNIVERSITY UNDER THE GUIDANCE OF Mr. PRANAV S. JASANI MMS BATCH OF 2012-2014 XAVIER INSTITUTE OF MANAGEMENT AND RESEARCH DECLARATION I, Lopes Arnold Lionel, student of Xavier Institute of Management and Research affiliated to Mumbai University hereby declare that this project report titled “Marketing Research for Flex X-Span Net Wrap” carried out under the guidance of Mr. Pranav Jasani at Delta Storage Systems Pvt. Ltd, is the record of authentic work carried out by me during the period from 01.05.2013 to 30.06.2013. Date: Sign: (Name of the Individual) CERTIFICATE The following Summer Project Report titled “Marketing of Flex X-Span Net Wrap” is hereby approved as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Masters of Management Studies for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report for the purpose it is submitted Prof. Dr. K. N. Vaidyanathan Director, XIMR ACKNOWLEDGEMENTS With great pleasure, I would like to present this project report on Flex X-Span Net Wrap. It has been an enriching experience for me to undergo my summer internship at Delta Storage Systems Pvt. Ltd. which would not have been possible without the goodwill and support of the people around. As a student of XIMR I would like to express my sincere thanks to all those helped me during my practical training programme. Words are insufficient to express my gratitude towards Mr. Pranav S. Jasani – Director of Delta Storage Systems, Mr Amit Singh - Marketing and Sales Manager at Delta Storage Systems. I would also like to thank Prof. Dr. K. N. Vaidyanathan, Director, Fr. Paul Vaz, Director General, Fr. Conrad Pesso and the staff at Xavier Institute of Management & Research (XIMR) for their constant support and guidance. I would also like to thank my parents and friends who have provided me with their valuable guidance and support. However, I accept the sole responsibility for any possible errors or omissions and would be extremely grateful to the readers of this project if they bring such mistakes to my notice Lopes Arnold Lionel Executive Summary Indian packaging industry is a USD $14 billion industry. It is growing at a rate of 15% per annum. Hence there is a huge scope for new investments in this field. This report deals on a new Product for packaging and its scope in Indian market. It also covers whether to launch the product or scrap the idea. Packaging is very important, as it provides convenience of handling, protection of material/product, containment of goods and a means of communication. There are four levels of packaging which have their own benefits. World packaging industry is growing it can be seen in the charts provided in annexure. To know more about packaging we also need to study its history and then consider the new product. Delta storage system is a medium scale industry with a turnover of 10 crores. The main business of the company is to provide racking systems. It as extended in plastic pallets category to provide its customers one stop solution. Now it wants to introduce yet another new product for the purpose for wrapping good. Flex X-Span net wrap is a patented product of an Israeli company called Tama which is a market leader in this product in western country. The company has given the opportunity to delta storage system to market and study the potential of the product in Indian market. The product has many benefits and this kind of product does not exist in Indian market. Based on the information from the industry based on having a conversion with some companies it seems the product is good. The price of the product is very high also came other in the process of introduction of the product. People compare this product with the existing low cost different product available for packaging. Many people also mistake this product to be some kind of fishing net. Other barriers that we face are the packaging rules in India are not strict hence companies refrain from using costly products. Fresh food exporters who can get the maximum benefit from this produce; don’t want the product as they just do the primary or maximum secondary packaging. They leave the other higher levels of packaging on improper. The importer in western countries packs these goods at his port before going to customs. We have concluded that India is not ready for this kind of product and it will take some time till there is need for such a product in Indian market. Table of contents SR NO TOPIC PG NO. 1 Introduction 1 1.1 Introduction of Flex X-span net wrap 2 2 Importance of packaging 3 3 History and beginning of packaging 10 4 Packaging Industry 12 5 Different Levels of packaging 15 6 Organizational Background 16 7 Marketing of Plastic Net Wrap 23 7.1 4Ps of flex net 23 7.2 Swot analysis 28 7.3 3 Cs for flex net 32 8 Wrapping Process 41 9 Recommendations and Conclusions 44 9.1 Recommendations 44 9.2 Conclusion 45 10 References 46 11 Annexure 47 1. Introduction In today's society, packaging is pervasive and essential. It surrounds, enhances and protects the goods we buy, from processing and manufacturing through handling and storage to the final consumer. Without packaging, materials handling would be a messy, inefficient and costly exercise and modern consumer marketing would be virtually impossible. The historical development of packaging has been well documented elsewhere and will only be touched upon here. Suffice it to say that the highly sophisticated packaging industries which characterize modern society today are far removed from the simple packaging activities of earlier times. Packaging lies at the very heart of the modern industry, and successful packaging technologists must bring to their professional duties a wide-ranging background drawn from a multitude of disciplines. Efficient packaging is a necessity for almost every type of product whether it is mined, grown, hunted, extracted or manufactured. It is an essential link between the product makers and their customers. Unless the packaging operation is performed correctly, the reputation of the product will suffer and the goodwill of the customer will be lost. All the skill, quality and reliability built into the product during development and production will be wasted, unless care is taken to see that it reaches the user in the correct condition. Properly designed packaging is the main way of ensuring safe delivery to the final user in good condition at an economical cost. Page 1 of 62 1.1 Introduction of Flex X-span Net Wrap The company is extending to related business. It provided heavy duty racking systems and moved to pallets as most of the customers who need the heavy duty racking systems require pallets. Similarly now when the pallets requirement is over customers have other requirements such as securing load to the pallets hence the company wants to provide one stop solution to this people. There are two types of solutions available to the customers in India. They are stretch wrap and straps. There is other product called as Plastic net wrap which satisfies the same need. A patented version is offered by an Israeli company which is named Flex Net wrap. This product is superior compared to stretch film and meets the international safety rules. This product is also made of HDPE i.e. high density polyethylene. This product is very useful for the products that require breathability or refrigeration i.e. fresh food industry. Page 2 of 62 2 Important Functions of Packaging Although the definitions given above cover in essence the basic role and form of packaging, it is necessary to discuss in more detail the functions of packaging and the environments where the package must perform those functions. 2.1 Containment This function of packaging is so obvious as to be overlooked by many, but it is probably the basic function of packaging. With the exception of large, discrete products, all other products must be contained before they can be moved from one place to another. The "package", whether it be a milk bottle or a bulk cement rail wagon, must contain the product to function successfully. Without containment, pollution could become widespread. The containment function of packaging makes a huge contribution to protecting the environment from the myriad of products, which are moved from one place to another on numerous occasions each day in any modern society. Faulty packaging (or under packaging) could result in major pollution of the environment. A study of packaging systems in China (Packaging Today – Australia 1979) found that: 17.5% of the country’s cement is lost in transit 50% of grain 20% of all glass is damaged before it can be used 40% of microscopes are broken before reaching the buyer. While in North America, Northern Europe and Australasia only 2% - 3% of food is lost through spoilage, in developing countries food spoilage and damage Page 3 of 62 is estimated to be between 30 to 50% of production.