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TCIL: Need for Conceptual Focus


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A marketing solution for the problems faced by TCIL

Published in: Business, News & Politics
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TCIL: Need for Conceptual Focus

  1. 1. By: Ankan Jyoti Bhattacharyya Trisha Chakraborty
  2. 2. • TCIL: An Introduction • TCIL’s Decision Making Process – Edible oil segment – Processed food segment – Key differences • TCIL: Segment to Concentrate on
  3. 3. • Established in 1922, in Jamshedpur, India • Started by manufacturing tinplate for kerosene cans • Owned jointly by three companies, viz. Burmah Shell, Shaw Wallace & Tata Steel • Started manufacturing tinplate for processed food, battery jacket & baby food • Four segments: – Batteries – Bottle Crowns – Edible Oil – Processed Food
  4. 4. STAGES Edible Oil Segment Processed Food Segment Key Differences Problem Recognition Packing material required for versatile use Packing material required for versatile use None Need Description Tinplate required for bulk packs of edible oil Tinplate required for preserving the quality of the product Focus on Quality (Processed foods) v/s Quantity (Edible oils) Supplier search Companies look for tinplate manufacturers supplying both prime and secondary grade tinplate Companies mainly look for prime grade tinplate manufacturers Difference in quality of tinplate sought by each segment
  5. 5. STAGES Edible Oil Segment Processed Food Segment Key Differences Proposal Solicitation Interaction with the network of 15 agents throughout the country employed solely by TCIL for edible oil Interaction with the sales team of 20 personnel of TCIL to process orders Dedicated sales team for edible oil v/s a common sales force for processed foods Supplier Selection Supplier Selection influenced by middlemen and price is the determining factor Supplier selection influenced by R&D and Quality Control department For processed food quality is the main concern unlike in edible oil where price plays a major role hence edible oil manufactures tend to select even secondary tinplate
  6. 6. • TCIL should concentrate on Processed Food segment because – Higher profit margin (Sales=33700, Profit=5500 ; Profit Margin=(5500/33700)*100=16.3%) – Increase in tinplate usage from 8% in 1993 to 10% in 1997 – TCIL shows an average score in customer satisfaction – Processed food segment required prime grade tinplate which was an advantage – TCIL can also increase selling prices in this segment as buyers in this segment are quality conscious instead of price – High industrial growth (9%) and increased demand for packed branded products – Growth in Hotel Industry and demand for bulk packs