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tci case report

tci case report

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Published by somesh 08111

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Published by: somesh 08111 on Jul 25, 2009
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01/10/2014

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International MarketingTCI CASE SUBMISSIONSubmitted To:Submitted By:CORE ISSUESWhat are the problems faced by the cashew industry regarding packaging ofcashews for exports?Is the cashew packaging market attractive enough?What are the stakes of different stakeholders in cashew packaging?What should be the marketing strategy for out new pack?Problems in Bulk packaging of cashew exportsThe Industry is facing pressure from the Importing Countries to adopt AlternativePackaging methodsThey have stated following Problems with the present packaging system.Lead Solder contaminationDisposabilityRecyclabilitySafety AspectsThe features specified for bulk packs by Council for Cashew Exports and Promotion(CCEP) and Association of ExportersEnough Strength to withstand the pressure of Handling and TransportContainers should be Leak-ProofShelf Life of the CashewsSplits and Broken PercentageResistance to pest attacks in godownsPrice of Bulk packsInvestmentsThe Present cashew packaging marketBased on the existing scenario it’s not attractive due to the restrictions imposedby the importers. The present situation may lead to the importers preferring othercountries if the packaging method is not altered. This shows that for existingplayers this has become a very important issue to handle immediately. But there isScope for the new players to come up with new packaging. That may help in gettingthe upper hand on existing market players. They have to consider the cost factor.And ensure the packaging system doesn’t exceed the cost of investment. Withincreasing Cashew kernel exports Cashew Packaging market is growing too.Stake holdersThe different stakeholders that are affected by the cashew packaging issue are the
 
producers, Cashew kernel exporters, Packaging companies, and Channel agents,Retail Chain, Government.Government:They earn revenues from exports. If the Cashew exports packaging is not changedthe importers may stop the import from India. This will eventually affect therevenues of the government.Producers of cashew kernels:They should have an incentive for production of cashews. The cashew production inIndia is unorganized. They can go to any other product if the cashew business isnot attractive.Importers:The importers are the ones who are putting standards for the packaging system. Themain aim is to achieve best quality kernels. If the packaging is having problemsthey affect the quality of the product. So their stakes are also at risk.Agents:The agents are the link between the suppliers and the customers. If the exportsdecrease their commission is also affected. The increase in threat from countrieslike Brazil will affect their stakesPackaging Industry:Tin producers for packing are dependent on exports. Cashew has a high exports andthis is generating good revenue. About 3 percents of total value of exports goesinto packaging.The packaging methods are1) Kovak Packaging:This involves packaging cashew kernels in an aluminum foil pack, which is closedon three sides and has an opening on one side. The strength of aluminum foil packto wear and tear is not very clear. This is used by Brazil. For small distance itwas successfully implemented.2) CAM Company’s Packaging.CAM company’s packaging involves composite cans for small consumer packs up to 1kg. These carts are made of hard cardboards, which are glued after rolling theminto required shape. The top and bottom of bottom of the can is made of tinsheets.3) TCI Bag in Box Flexi Packs.TCI has been trying to adapt the BIB technology to evolve an alternative bulkpackaging solutions for cashews. It involves aluminium foils and HDPE(high densitypoly ethylene). The pack was successfully tested with a load of cashews to Japanthrough TCI’s Agri-Business Division. The problems are the broken and splitscomponent is 7 percent. And it is susceptible to rats.Marketing Strategy1) Product:The BIB is a made from Aluminium and HDPE and the salient features of BIB areConvenient to use, Hygienic, Tamper proof. The expected changes to be made in thevitapack system to accommodate this new pack were also minimal.The advantages of HDPE areVirtually maintenance free

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