The document provides a strategic marketing plan for Tuffline Ltd, a flexible packaging company, for the year 2014/2015. It outlines Tuffline's vision, mission, products, competitors, market share, SWOT analysis, sales and marketing objectives, segmentation, targeting, positioning, and tactical marketing mix strategies. The plan sets objectives to achieve Rs. 1.8 billion in sales and increase market share by 5% in 3 years. It analyzes the PESTEEL factors impacting Tuffline and provides a budget and financial analysis projecting a net profit of Rs. 63.6 million. An action plan and monitoring framework are also included to implement and track the strategic marketing plan.

1. Strategic Marketing Planning
Prepared By
M.S.M.Rishan
Reg.No.0000017270
Individual Presentation
June 2014 Examination
Postgraduate Diploma in Marketing
SRI LANKA INSTITUTE OF MARKETING

2. Flexible Barrier Packaging
Materials
Strategic Marketing Plan of Tuffline Ltd
for the year 2014/2015

3. The Capital Maharaja Organisation Limited
 Single largest group of private sector companies in Sri Lanka.
 Established in 1938 by Mr.Subramaniam Mr.Mahadevan and
Sinnathamby Rajandram. Present chairman is Mr. Rajendram
Rajamahendran .
 The group comprises over 20 operating companies, divided broadly
into eight fields of activity:
 Chemical & Pharmaceutical
 Information Communication Technology (ICT)
 Media, entertainment & Communication
 Personal Care & Consumer Products
 Plastics
 Projects
 Services
 Tea

4. Tuffline Limited
 Premium flexible barrier packaging company of The Capital Maharaja
Organisation Limited, established in 1990.
 Core business is manufacturing and converting flexible packaging
materials, HIPS cups and multilayer co-extrusions.
Vision and Mission
Vision
 Our vision is to be the best Exporter in Flexible Packaging whilst maintaining the
leadership in the Sri Lankan Market.
Mission
 Our mission is to serve our clients with innovations and solutions while supplying
the share holder expectations and developing the well being of our greatest assets
employees and entire satisfying general public at large. Our mission is to identify
technological enhancement while maintaining ISO 9001: 2008 Quality Management
System ISO 22000: 2005 Food Safety Management System, ISO 14001: 2008
Environmental Management System and FSSC-22000 Food Safety System
Certification.

5. Tuffline’s Flexible Packaging Products

6. Tuffline’s Flexible Packaging Products

7. The Company Supplies Flexible Packaging
Materials For Following Industries
 FMCG
 Tea & Other Beverages
 Biscuits & Confectionery
 Dairy Products & Ice Cream
 Sea Food & Processed Meat Products
 Household & Personal Care Products
 Pharmaceutical
 Agro chemicals & Fertilizer
 Garment Industry

8. History, Functions and Properties of Packaging
Time Period Packaging Developments
Ancient era Used animal skins, shells and leaves
6000 BC Ceramics and Baskets
1500 BC Glass containers, Barrel
In1746 AD 1st
product packaged was created under
trademark in England
In 1746 to end of 19th
century Wood, cork, fibers, glass, metals, paper
After 19th
century to modern era Plastic & other convenient materials

9. Product Life Cycle of Tuffline
Tuffline
Ltd

10. Competitors of Tuffline
Primary Competitors Secondary Competitors Possible New Competitors
Packages Lanka Expack Corrugated Cartons India
JF Packaging Uni-Dil Papersack China
Acme Aitken Spence Printing Indonesia
Akhtari Trades Printcare Malaysia
Selmo Print USA Middle East
Packaging Material Intermart
Varna Ltd Packwell Lanka
Wayamba Packaging Orient Polysacks
Lanka Plastic Industries Cisco Speciality packaging
Trans Gravure Tinpak
Poly Packaging Industries Korean SPA Packaging
J F & I Packaging
Nawaloka Polysacks
Polypack Secco
Lanka Polysacks
Crystal Pack Ceylon Papersacks

11. Market Share of Competitors
.
Company Annual Turnover
(Rs.Million)
Market Share in Local Flexible
Packaging Market
Tuffline 1,184 6.5%
Packages Lanka 1,560 8.6%
JF Packaging 960 5.3%
Acme 780 4.3%
Akhtari Trades 720 4.0%
Selmo 660 3.6%
Packaging Material 600 3.3%
Lanka Plastic 540 3.0%
Varna 480 2.6%

12. PESTEEL Factors of Tuffline
 Political Environment
• Encourage and facilitate the local packaging industry to be more competitive while
continue the effort of lobbing foreign suppliers.
• New players of the industry have registered under 300 industries of “Gamata
Karmantha” project.
 Economical Environment
• Government has imposed and levied a “Cess” on imports.
• Local buyers are discouraged to import due to the pressure built in current taxation.
• Increasing the price level of raw materials & other resources and rising cost of
production.
 Social Environment
• Demand is increasing for further-processed food products such as convenience-
oriented foods.
• Packeted products, sachets and affordable smaller packs are gaining increasing
demand in the country.
• Increasing trend in personal care products due to changing lifestyles.

13.  Technological Environment
• Rapid conversion of more traditional rigid packaging into flexible packaging forms.
• Shift from simple bags and paper wrapping to multimaterial and multilayer packaging
solutions and mono layer packs are converted to laminates.
 Ecological Environment
• Some packaging materials are not degradable and cannot recycle.
• Most packaging material buyers are approaching to reduce, reuse and recycle.
• An increasing trend towards eco-friendly packaging materials.
 Ethical Environment
• Offer predatory pricing to win the competitors.
• Charging very high prices from customers who are not aware about the industry.
• Using recycled packaging materials which are not suitable for some products.
 Legal Environment
• There are various laws and regulations, such as food packaging laws, consumer
protection laws, environment laws etc. which the industry should obey and respect.
• All the suppliers practise the regulation of “the food grade symbol” should be printed
in the packing material if it’s a food product.

14. SWOT Analysis
Weakness
• Still using few old machines
• Absence of some new packaging solutions
• Inadequate storage facilities stores and factory
• Less visibility in certain regional market such
as Kandy, Kurunegala, Galle etc.
• 40% of sales dependency on Milk Powder
Market and from that 30% on Fonterra Brands

15. Sales Objectives
 To achieve a sales turnover of Rs.1.8 billion for the
financial year 2014/2015.
Product Line Sales Value for 2014/2015
Laminated & Non laminated
Flexible Packaging Material
Rs.1,712,823,602
HIPS Cups Rs.55,356,243
Hologram Stickers Rs.11,585,431
Aluminium Lidding Foils Rs.24,136,189
Shrink Sleeves Rs.12,365,897
BOPP Over Wrapping Rs.1,234,103
Total Sales Rs.1,817,501,465

16. Marketing Objectives
 To be the market leader in local flexible packaging
material industry within next three years.
 To increase the market share of local flexible packaging
material industry by 5% within next three years.
 Retaining 99% of existing customers and develop 3 new
customers of all products line per annum.

17. Segmenting
Segment Variables Flexible Market Segments
Demographic - divide according to
the industry type and the business
which operating in.
• Food & beverages, Tea,
• Biscuit and Confectionery,
• Household and Personal care ,
• Dairy & Ice cream
Operating Characteristics - divide
according to the operating variables
such as technology, user status and
capabilities of the packaging material
buyers.
• Food & beverages – double
laminated and triple laminated pouches
• Dairy & Ice cream –laminated
materials in roll form, 3 layer
polythene rolls, HIPS cups
Purchasing Approaches - divide
according to purchasing power
structure, buyer-seller relationships,
and general purchasing policies,
profitability.
• More concern about prices & quality
of packaging materials
• Willing to make their purchase base
on cash or credit
Situational Factors – divide
according to situational factors such as
urgency, specific need and the size of
the order.
• Export tea customers expect the
delivery within 7 to 10 days
• Prime customers with larger order
values more than Rs.1,000,000.

18. Targeting
 Can target the customers who are in to different industries and need
packaging materials to operate their businesses accordingly.
 Tuffline can differentiate the customers according to the different
industry type and fulfil their packaging needs accordingly by using
full market coverage pattern. For Example;
 FMCG
 Tea & Other Beverages
 Biscuits & Confectionery
 Dairy Products & Ice Cream
 Sea Food & Processed Meat Products
 Household & Personal Care Products
 Pharmaceutical
 Agro chemicals & Fertilizer
 Garment Industry

19. Positioning
 The company’s positioning strategy is that to build a trusted and
favourable brand image among the target group’s mind by providing
high quality innovative flexible packaging solutions for its
customers for competitive prices.

20. Perceptual Map of Tuffline

21. Ansoff’s Matrix
Market Penetration
E.g:- Offer Competitive
Prices, Increase Market
Share
Market Development
E.g:- Going for international
packaging markets, Export
packaging products
Product Development
E.g:- Introducing new
flexible packaging solutions
Diversification
E.g:- Manufacturing of
flexible raw materials
Existing New
Market
Product
Existing
New

22. Tactical Marketing Mix Strategy
1. Product Strategy
 Core Product Address customers’ basic packaging needs
with appropriate packaging products. E.g. Protection, Convenient
handling, Storing
 Actual Product Finished packaging products with
attractive different features, designs, colours, quality levels,
packaging, labelling and brand name.
 Augmented Product Offers additional customer services
and benefits for the packaging products. E.g. Free delivery, Credit
facility, Quality assurance, After sales services.

23. 1. Product Strategy
Reel Form Unprinted &
Laminated
Unprinted &
Non Laminated
Printed &
Laminated
Printed & Non
Laminated
Pouch / Bag
Form
Printed &
Laminated
Pouches / Bags
Printed & Non
Laminated
Pouches / Bags
Unprinted &
Laminated
Pouches / Bags
Unprinted &
Non Laminated
Pouches / Bags
PVC Shrink
Sleeves
Printed PVC
Shrink Sleeves
Unprinted PVC
Shrink Sleeves
HIPS Cups Printed HIPS
Cups
Unprinted
HIPS Cups
Aluminium
Lidding Foil
Printed Alu
Lids
Unprinted Alu
Lids
BOPP Over
Wrapping
Printed BOPP
Over Wrapping
Unprinted
BOPP Over
Wrapping
Hologram
Stickers
Printed
Hologram
Stickers
LengthofFlexiblePackagingSolutions
Width of Flexible Packaging Solutions

24. Tactical Marketing Mix Strategy
2. Pricing Strategy
 Tuffline uses several pricing strategies in different situations for
different customers.

25. Tactical Marketing Mix Strategy
3. Promotional Strategy

26. Tactical Marketing Mix Strategy
4. Distribution Strategy
5. Physical Evidence Strategy
 Company brochure & Wed site
 Quality certifications (ISO 9001:2008, ISO 22000:2005 and FSSC 22000)
 Company letter heads , Invoices and delivery notes
 Company logo which is printed available in printed packaging products
 Delivery vehicles with company details and logo
 Awards that the company has achieved
 Office set up, staffs dress and their behaviour

27. Tactical Marketing Mix Strategy
6.Process Strategy
 Efficiency of process
 Quality standards
 Cost of process
 Flexibility
 Long term effect
7. People Strategy
 Well educated and experienced staffs
 Interpersonal and communication skills of staffs
 Training and development programs to enhance the skills
 Rewards and Compensations
 Good relationship building and team work

28. Budget and Financial Analysis
Description Amount
Sales 1,817,501,465
Cost of sales -1,369,466,867
Gross Profit 448,034,598
Other income 1,200,000
449,234,598
Expenditures
Importing and manufacturing cost -214,873,356
Administrative expenses -54,306,752
Financial cost -61,542,928
Other costs -27,646,994
Profit before tax 90,864,568
Income tax expenses -27,259,370
Net Profit after tax 63,605,198

29. Marketing Strategy Implementation - Action Plan

31. Monitoring and Evaluation

33. Questions?