market potential presentation

AProject Report On

“A Study of Market Potential of conductive Bags in India”

Under The Guidance OfMrs. Ujjawal Jayswal

Submitted ToGujarat Technological University

In Partial Fulfillment Of“Master Degree Course in Business Administration”

(2009-2011)

Submitted ByMr. Krushnavadan P. Sadhu

Enrolment no. 097750592060

Sigma Institute of Engineering (M.B.A. Program) Bakrol.Tal. Waghodia, Dist. Vadodara-

What is FIBC???

Flexible Intermediate Bulk Containers (FIBC) also known as ‘Big Bags’, Jumbo Bags or Bulk Sacks are made from polypropylene tape woven fabric

Flexible cubicle containers designed to carry loads up to 2000 Kgs. Designed to be lifted from the top by means of integral lifting loops or straps.

Has various filling and discharge arrangements to suit the tailor made requirement of the user.

FIBCs are reusable and recyclable

Worldwide consumption and production Data source

FIBC- Major Producers and Exporters

Company Profile

Company Name: Shankar Packagings Limited

Business Type: Manufacturer

Product/Service

(We Sell):

Poly Propylene Bulk Bags / Flexible Intermediate

Bulk Containers

Address: 4-5-6, GIDC Estate, Vaghodia

Number of

Employees:1000 People

Company Website

URL: http://Shankarpack.com

Year Established Legal: 1976 Representative/Business Owner: Mr. V. S. Pandya

Business Type Manufacturer , Exporter

Capital in Dollars 34,74,665

Export 82%

Import 5%

Sales Volume 36,30,77,305 INR

Import Value 1,94,02,567 INR

No of Staff 185

No of Production Lines 1

Export Markets USA and Europe

Import Markets Switzerland

Investment on Manufacturing Equipment 12,75,52,197 INR

No of Engineers 12

Product Profile

Conductive bags are bags that conduct the charges generated at the time of filling & emptying of the products. These are essential in explosive environments or where the products generate charges that could lead to explosion hazards.

I. Conductive Bags

2. Conical BagA Conical bag is shaped as a cone at the bottom. These types of FIBCs are especially suitable to pack Tacky products which are not so free flowing e.g. Clay, Slurries etc. The Conical design provides a gradient for these materials to 'flow' towards the outlet spout.

3. Form Stabilized Bag

These are FIBCS with inner construction of baffles sewn to the main fabric so that the bags retain shape after filling. From Stabilized bags ensure... Saving in Space, Higher Stability after filling, and Retention of the rectangular shape.

4. Ventilated Bag

Ventilated or Breathable bags are FIBCs where the fabric has breathable stripes. This is useful for products that breathe while packed, especially fruits and vegetables.

5. UN Bag

These are special types of bags used for transportation of dangerous materials. The UN bags are designed and tested in accordance with the recommendation as laid down in the "United Nations Recommendations on the Transportation of Dangerous Goods (Orange Book)"

Market potential

The market forecast shows expected market demand, not maximum market demand. For the latter, we needed to visualize the level of market demand resulting from a “very high” level of industry marketing expenditure, where further increases in marketing effort would have little effect in simulating future demand as industry marketing expenditure approach infinitely for a given marketing environment.

Steps in Estimating Market Potential

Estimating the market potential for a business requires specific information on the number of people or potential buyers, an average selling price, and an estimate of consumption or usage for a specific period of time.

Formula for Market Potential

Estimating Market Potential:

•MP = market potential•N = number of possible buyers•P = average selling price•Q = average annual consumption

MP=N×P×Q

Key Steps in Estimating Market Potential:

•1. Define your target market and market segments.

•2. Define the geographic boundaries of your market.

•3. Derive an average selling price.

•4. Determine the average annual consumption.

Objectives of Research

The primary objective of the Research study is to know about the Market potential of Conductive Bags in India. With special regards of Shankar packagings ltd.

The secondary objective of Research study is to find out the Market position of Shankar packagings in national market for conductive Bags and to compare the position of Shankar packagings with its rivals.

Limitations of the Research Study

The first limitation of study is to difficulty faced to collect the data as I was targeted the rivals of Shankar packagings it was very difficult to collect the data.

As the rivals of Shankar packagings was not convinced to give the authentic data. So it would be possible that research could be a tentative in nature.

As the sample size was taken 20 in Research it was limitation that 2 of the organizations are not producing conductive Bags and 3 of the organizations have not shown interest in giving the relevant information regarding the research.

Research methodology

Title of the study: The title of the study is “MARKET POTENTIAL OF CONDUCTIVE BAGS IN INDIA”

Research Design: In research exploratory research design have taken because result of research will be suitable for this kind of research design as research will generate somewhat new idea regarding the market potential and research has no predermined result with it. This is all about to know the market potential of conductive bags in Indian market. So from my point of view exploratory research design would be best suitable.

Data Collection:

•Primary Data collection:To know about the market potential of conductive bags data will have to be collect from the market so data have collected from manufacturers of FIBC with the help of the telephonic interview with assistance of questionnaire.

Sampling Technique:

Sampling Technique was taken as Non Random Sampling.

Sample Size:

sample size is twenty.

Research tool:

questionnaire

Research Area:

Research area was INDIA

Time Duration: The time duration of the project report is 45 days.

•Secondary data collection: In Research it was necessary to have the secondary data as well so research relevant data have collected from the various source of internet site as well as I have referred Shankar’s brochure as well.

DATA ANALYSIS & INTERPRETATION

Table number one shows: age of the organizations

Sr. number criteria Number of Resonance

1. 0 to 5 years 5

2. 6 to 15 years 4

3. 16 to 25 years 2

4. Above 25 years 4

Sr. number Options Response Percentage

1. Quality assurance 10 66%

2. Brand image 2 13%

3. Service 8 53%

4. Reliability 5 33%

Table no. 2: shows the qualities of organizations which make them better than their rivals

Quality assurance Brand Image Service Reliability

Qualities of organisation 10 2 8 4.5

0

2

4

6

8

10

12

Qualities of organisation


1. Food 5 33%

2. Chemical 8 53%

3. Cement 3 20%

4. Pharmaceutical 10 66%

5. Mineral 5 33%

6. Other 1 7%

Table number 3: Shows the industries which are the major users of conductive Bags


1. 250 to 300 5 33

2. 301 to 350 4 27

3. 351 to 400 3 20

4. above 400 3 20

Table number 4: shows the average selling price of the conductive bags

Sr. number Options Response Percentage1. Extremely satisfied 8 532. Satisfied 3 203. Neutral 2 134. Dissatisfied 2 135. Extremely dissatisfied 00 00

Table number 5 : shows the satisfaction level of resonance in the current market position

54%

20%

13%

13%

0%

Options

Extremely satisfied

satisfied

Neutral

Dissatisfied

Extremely dissatisfied


1. Yes 13 87

2. No 2 13

Table number 6: Shows the response of organizations whether they are capable enough to compete their rivals

87%

13%

Shows the response of organizations whether they are capable enough to compete their rivals

Yes NO


1. Potential rivals 2 13

2. Rising price of polypropylene 15 100

3. Economic Downturn 3 20

4. Change in taste of customer 00 00

Table no 7: Shows the organizations competitive threats


1. Market Research 9 602. Expert opinion 2 133. SWOT analysis 2 134. To follow the rivals 2 13

Table number 8: Shows the work done by organization to turn those threats in to the opportunities

9

2 2 2

Market Research Expert opinion SWOT analysis To follow the rivals

Shows the work done by organization to turn those threats in to the opportunities

Options


1. No negotiation 4 272. Loyalty 3 203. maintain relationship 12 804. On time payment 2 13

Table number 9: Shows the expectation of organizations from their potential customer.

0

2

4

6

8

10

12

No Negotiation Loyalty Maintain relationship On time Payment

Shows the expectation of organizations from their potential customer.

Options


1. Loyal customer with less demand 10 67

2. New customer with more demand 3 203. First in first serves 2 13

Table number 10: Shows the organizations preference over customer

10

3

2

Shows the organizations preference over customer

Loyal cutomer with less demand

New customer with more demand

First come first serve

ESTIMATION OF MARKET POTENTIAL

Sr. no.

Name of the organization Potential number of buyers

price average quantity purchased by buyer(Tons')

Market potential

1. Emmbi polymers ltd 30 480 36 518400

2. Kanpur plastic ltd. 32 390 32 399360

3. Jumbo bags limited 25 450 30 337500

4. Shankar packagings limited 28 375 25 262500

5. Texplast industries limited 35 350 20 245000

6. Bulk container limited 20 330 20 132000

7. Flexi tuff India limited 20 330 18 118000

8. Big bags limited 15 360 20 108000

9. Rishi FIBC limited 15 350 15 84000

10. Muscat polymers limited 18 290 15 78300

11. Vindhya polymers limited 15 300 14 63000

12. True pack international limited 12 300 15 54000

13. Maris associate limited 4 740 16 47360

14. Sub bulk container limited 10 280 12 33600

15. Polychornic petrochemical limited 8 300 11 26400

FINDINGS

In last five years 33% of the new organizations have come up in market.

Most of the organizations emphasis on Quality assurance and then after service.

Chemical and Pharmaceutical Industries are major buyers of conductive Bags.

Half of the organizations are extremely satisfied with their current market position.

100% of organizations do have threat of rising price of polypropylene and second is economic downward.

CONTINUE…

80% of organization expect from their potential customers to maintain relation with them.

60% of the organizations prefer Market research to turn threats in to the opportunities.

1/3 the organization would like to serve loyal customers even though they have less demand.

The market potential of conductive bags of Shankar limited ranked 4th in the market

RECOMMENDATIONS

Shankar Packing Ltd. should have to be more watchful on the market and its new rivals because by the time new rivals are getting more threatening and can affect their business as well.

Apart from Quality assurance and service Shankar should also emphasize on reliability because if the customer start relying on you it shows you are increasing the loyal customer and their satisfaction level as well.

As Shankar also having a threat of rising price of polypropylene. They should have to purchase polypropylene in bulk so that they can reduce the threat of the rising price of polypropylene.

CONTINUE… Shankar should have to develop the customer

relationship management so that they can maintain the relationship with their loyal as well as new customers.

As the Shankar have the policy of first come first serve instead of that they should have to be agile to getting order as per the demand of the customer so that they can generate more purchase order.

As the analysis shows that the Shankar secures fourth position for market potential of conductive bags in India it is not that much of possible to be a number one but for that they should have to be more consistent and accurate in their business.

QUESTIONS AND SUGGESTIONS ARE WELCOMED

THANK YOU

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