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Retail Market Scenario of Aluminium Foil Industry

Info: 5381 words (22 pages) Dissertation
Published: 12th Dec 2019

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Tagged: Retail

ABSTRACT

This research is an attempt at understanding the Retail Market Scenario of Aluminium Foil Industry in Mumbai. It studies the distribution channel in the industry, factors that have led to the presence of strong brands like Freshwrapp™ and the likes in the Kitchen Foil sector. It also includes a detailed study of the impact of Advertising & Sales promotion on Direct Sale and Brand Awareness in the said product category.

The main Objectives are to infer whether advertising/ Sales promotion helps Direct Sale and Brand Awareness, to make the awareness of the product & to let the customers know, what our product is, its benefit and advantages. How our product is different from competitor’s product. The methodologies used in the project revolve primarily around primary and secondary data collection via published reports of competitors and via survey (exploratory research).

The findings are that the brand awareness of the product has increased more than double within two months duration and now we should promote the specific quality of our product and increase the sales by converting the awareness of the product into sales.

About The Company

INTRODUTION

Name of the Organization: Eggfirst BBN India Advertising & Design Pvt. Ltd.

Establishment Year-2004

Firm Type-Pvt. Ltd.

Nature of Business- Advertising & Designing

Level to Expand-International

Philosophy:

At Eggfirst BBN India, we share similar sentiments. And to achieve that, we work that extra hard. We put in that extra effort. We stretch that extra mile. And it all directly translates into superlative work for you. We follow the old fashioned mantra – your success is our glory.

Values-

Integrity

Honesty in every action

Commitment

On the foundation of integrity, doing whatever it takes to deliver, as promised.

Passion

Missionary zeal arising out of an emotional engagement with work

Seamlessness

Thinking and working together across functional silos, hierarchy levels, businesses And geographies.

Strategy Planning and Research

It all starts with providing a strategic direction for clients’ objectives.

Strategy Planning:Putting years of experience and expertise to use, they formulate a unique, insightful strategy to successfully achieve clients marketing objectives.

Market Research:Eggfirst backs their experience and knowledge by intensive and incisive research. Thoroughly analyzing the market conditions, current trends, case studies, competition and opportunities…all to arrive at a winning strategy.

Creative Strategy and Execution

Eggfirst thoughts are often limited by a straightjacket of habits, norms, conventions and presumptions. Add to that iron boots of the fear of failure. There’s need to break-away from the constraints of traditionalism and explore the unknown. Unbound even by infinity.

That’s exactly what Eggfirst do. They use creativity to give clients their brand the uniqueness.

SERVICES

Brand Building and Corporate Identity:A distinct brand identity that stands out from the crowd in a meaningful way.

Campaign:Integrated messaging across media.

Print:Strategically aligned and creatively driven ads – newspaper, magazine and other print media.

AV/ Multimedia:TVCs as well as audio-visual representation (linear or non-linear) for corporate presentations, product presentations, launch presentations, demo presentations, etc.

Radio:Innovative, meaningful and effective radio jingles to communicate your message.

Outdoor:Traditional outdoor collateral like hoardings, banners and bus-panels as well as BTL collateral such as wall paintings and shop-signage’s.

Events, Exhibitions and Promotions:Event, Exhibition and Promotion specific campaigns that include theme ideation, pre-invitation mailers, stall backdrop design, event collateral design, AV presentation, post-event mailers and gift ideas.

Internal Communication:Campaign ideation and execution for internally spreading specific messages like Customer Sensitivity, Employee/ Customer Feedback, Training/ Induction, CSR, IT Awareness, Voice of Employee, Employee Motivation etc

Sales and Marketing Collateral:Newsletters, brochures, presentations, white papers, case studies, data sheets, POP collateral, posters, etc.

Web:Interactive website using various technology platforms, Search Engine Optimization (SEO) and Search Engine Marketing (SEM) to drive traffic, and online campaigns (banners, mailers, newsletters etc.) including pay-per-lead email campaign.

Direct Marketing:Communicating on a one-on-one basis with clients target audience through direct mailers, SMS campaign, telemarketing and other traditional as well as innovative direct marketing tools.

SWOT ANALYSIS-

a) STENGTH-

Satisfy all needs of their customers.

  • Delivering on time
  • Creative and innovative in advertisement segment
  • Quality output
  • They have global exposure as well, with higher rewards & appreciation.
  • Team working environment is very efficient.

b) WEAKNESS-

  • Relatively new player in an extremely competitive business sector
  • Not active into ATL advertising yet

c) OPPORTUNITIES –

  • Can enter the global markets to attract global customers.
  • Clients coming with new products to get advertisement.

d) THREAT-

  • Established Players as Competitors from domestic and international market
  • Customers’ preference and taste being changed every now and then
  • Relatively naive in the ever-blooming Advertising industry.

Eggfirst BBN India is the Indian arm of BBN International, based out of Mumbai, India. A full-service advertising agency, Eggfirst offers end-to-end creative solutions for various business challenges. They are passionate about creating and fostering brands. They have a simple purpose: ‘Create brands that people will love remember and buy.’ Through a combination of research, strategy, creativity and technology, they help their clients discover the potential of their brand, and unleash it.

Some successful Contract-

Jab ghar ki raunak badhani ho, diwaron ko jab sajana ho… Come to, Eggfirst BBN India. The India focused arm of BBN International, Eggfirst BBN India is a full service ad agency offering end-to-end creative solutions for energizing brands.

Paani mein rehkar bhi yeh kam gale, dhero kapde dhoye aur zyaada chale! That’s what most clients look for in their ad agency and that’s exactly what they will find at Eggfirst BBN India. Combining the agility & speed of a Concorde and the performance & reliability of a Boeing 747, Eggfirst will take your brand on an enriching journey of aah se ah-a tak. Zyaada de ujala, din-o-din chalne wala, Eggfirst has soaked in the Indian summer for years now. Working at the ground level with some of the leading brands in India, they have rolled delightfully in the muddy puddle of marketing & advertising, only to realise daag achche hai.

Dhero Kapde dhoye aur Zyaada chale. That’s Eggfirst.

Coming to Eggfirst BBN India with a marketing problem is like going to a restaurant when you’re really hungry. There’s everything you care for (End-to-end advertising solutions). It offers a seven course meal (Research, Branding strategy, Creative strategy, Creative rendition, Media planning, Media buying, Launch). With the flavouring of clients choice (Creative, direct, humorous, emotional…).

Every item on the platter gets Eggfirst’s special attention – right from the time of handpicking the raw materials till the time they lays it out for their clients.

It’s a wholesome experience. Not only will the delicious food leave the client satisfied and delighted, the quality of service will simply stun them.

Media planning and buying

The final frontier, connecting with clients target audience in the most effective way

Each brand is unique. So how why should the medium be common? Long back, a farmer in England, who used to rent out his cows to companies, came up with a unique and an extremely effective marketing strategy. He sprayed company logos on the cows. This helped the companies get recognition and visibility; increasing their brand equity..

Media Planning:Planning a mix of media, a judicious blend of traditional and innovative, in a way that it helps clients’ break-through-the-clutter and reach out to their target audience effectively

Media Buying:Capabilities to buy media that best suits the strategy. Moreover, ensuring that ‘non-availability’ is never an obstacle in clients path

Windfall

Translating a product into a brand; a successful brand – it’s easier said than done. An exceptional brand success story is scripted with an exceptional culture. And that’s precisely what clients will find at Eggfirst BBN India. And a lot more

Globalization

Integration of global expertise and network with incisive understanding of Indian conditions

The sales and marketing harmony

Driven by the understanding that sale is the ultimate aim and marketing the means.

Adding value, subtracting expenses

Focused on adding tangible value, reducing wastages

If clients were a lantern…Eggfirst would be the oil. If clients were a pajama, Eggfirst would be the strings.

Clients

  • Oberoi
  • Eureka Forbes
  • Honeywell
  • Johnson & Johnson
  • HDFC Bank
  • Deutsche Bank
  • Ten sports
  • Star JP Morgan etc.

Objective of the project:

  • To infer whether Advertising/ Sales promotion helps Direct Sale and Brand Awareness.
  • To make the awareness of the product.
  • To let the customers know, what our product is, its benefit and advantages.
  • How our product is different from competitors product.

Methodology:

The methodology followed in this project involved the following Phases:

Ø Collection of Data

Ø Type of the project

Ø Analysis of Data

Ø Conclusion & Recommendation

Data Collection-

Data is collected by following methods-

  • Qualitative Research:
  • Primary Research – Field Work.
  • Secondary Research – Online.
  • Comparative/ Industry analysis

Qualitative Research:

Qualitative Research is about investigating the features of a market through in-depth research that explores the background and context for decision making.

There are two main qualitative methods – depth interviews and focus groups. However qualitative research can also include techniques such as usability testing, brainstorming sessions and “vox pop” surveys.

Primary Research-

Primary research involves gettingoriginal datadirectly about the product and market. Primary research data is data that did not exist before. It is designed to answer specific questions of interest to the business

This is about filling up questionnaire, and the questionnaires were filled by Retailers as well as Consumers with two different sets of Questions. I have done research at following places.

Western Suburbs:

  1. Kandivli 6.Santacruz
  2. Bandra 7. Jogeshwari
  3. Dadar 8. Malad
  4. Lower Parel 9. Andheri
  5. Powai 10. Goregaon

South Bombay:

  1. Colaba
  2. Napean Sea Road
  3. Kemps Corner

Central Suburbs:

  1. Kurla
  2. Chembur

New Bombay: Farthest

  1. Vashi
  2. Sanpada

Total Samples: 300 (min)

Secondary Research-

Secondary marketing research, or desk research,already exist in one form or another. It is relatively cheap, and can be conducted quite quickly .However, it tends to have been collected for reasons other than for the problem or objective at hand. So it may be untargeted, and difficult to use to make comparisons (e.g. financial data gather on Australian pensions will be different to data on Italian pensions).

Comparative/ Industry analysis-

Comparative or industry analysis is includes analysis with respect to another player in the same field. It gives real picture where product stands in the market.

Type of the project-

Market research project

Analysis of Data

This involves analysis of data collected by above methods.

Conclusion & Recommendation

After completion of the entire analysis, interpretation & recommendation were made on the basis of figures and diagrams.

Limitations of the study:

  • Inadequate information.
  • Sample Size.
  • Cannot disclose the product name as per company’s guideline.
  • Misleading answers that might affect our conclusion.
  • Unwillingness of the Retailer to answer.
  • Biases and prejudice due to Sales margins on the Retailers opinions.

Market size of aluminium foil-

Aluminium foil is widely used, the experts according to their characteristics of different applications, it is divided into more than 20 varieties. Different countries due to differences in levels of economic development, consumption structure of aluminium foil big gap there. Developed countries in Europe and the United States, aluminium foil packaging products for 70 percent of the total demand. In the Chinese market, aluminium is mainly used as industrial raw materials; manufacturing, packaging and aluminium foil only 30 percent of the total domestic demand.

Into the 21st century, market competition and product homogeneity of trends, to stimulate the rapid development of the product packaging. 2002, the global packaging market size has more than 500 billion U.S. dollars

The estimated markets for aluminium foil containers are as follows:

Competitive Analysis of Alumunium foil:

 

LAST PRICE

MARKET CAPT.

SALES TURNOVER

NET PROFIT

TOTAL ASSET

HINDALCO

209.00

40009.80

19536.28

1915.63

34,267.87

NALCO

97.55

25140.96

5158.00

832.60

10395.58

CENTURY EXTR

5.15

42.20

122.71

5.35

64.85

MAAN ALUMINIUM

52.15

17.63

68.88

1.91

29.83

GUL FOIL

77.80

63.81

131.03

3.20

119.22

The above analysis shows that who the major players in aluminium industry. Hindalco holds the 1st position and Gul Foil is on 5th position.

LITERATURE REVIEW

What is Aluminum Foil-

Aluminium foil is the thin metal leaf aluminium with a thickness of not more than 0.2 mm. However, most commonly used foils have thickness of 0.006 mm. It is used for various reasons like, packaging of food, packaging of pharmaceuticals product etc.

Packaging today responds to consumers’ demands for choice and convenience as well as changed production and distribution conditions and systems. By safeguarding product quality, packaging allows products to be transported and distributed locally, regionally and even globally, thereby making valuable food resources available to a wider population. In modern households, people increasingly turn to the use of fully-prepared meals, canned and frozen foods, in a wide variety of portion sizes, to save time in cooking and preparing meals. Packaging makes this possible.

Raw Materials

Aluminum numbers among the most abundant elements: after oxygen and silicon, it is the most plentiful element found in the earth’s surface, making up over eight percent of the crust to a depth of ten miles and appearing in almost every common rock. However, aluminum does not occur in its pure, metallic form but rather as hydrated aluminum oxide (a mixture of

water and alumina) combined with silica, iron oxide, and titania. The most significant aluminum ore is bauxite, named after the French town of Les Baux where it was discovered in 1821. Bauxite contains iron and hydrated aluminum oxide, with the latter representing its largest constituent material. At present, bauxite is plentiful enough so that only deposits with an aluminum oxide content of forty-five percent or more are mined to make aluminum. Concentrated deposits are found in both the northern and southern hemispheres, with most of the ore used in the United States coming from the West Indies, North America, and Australia. Since bauxite occurs so close to the earth’s surface, mining procedures are relatively simple. Explosives are used to open up large pits in bauxite beds, after which the top layers of dirt and rock are cleared away. The exposed ore is then removed with front end loaders, piled in trucks or railroad cars, and transported to processing plants. Bauxite is heavy (generally, one ton of aluminum can be produced from four to six tons of the ore), so, to reduce the cost of transporting it, these plants are often situated as close as possible to the bauxite mines.

The Manufacturing Process

Extracting pure aluminum from bauxite entails two processes. First, the ore is refined to eliminate impurities such as iron oxide, silica, titania, and water. Then, the resultant aluminum oxide is smelted to produce pure aluminum. After that, the aluminum is rolled to produce foil.

Refining—Bayer process

  • The Bayer process used to refine bauxite comprises four steps: digestion, clarification, precipitation, and calcinations. During the digestion stage, the bauxite is ground and mixed with sodium hydroxide before being pumped into large, pressurized tanks. In these tanks, called digesters, the combination of sodium hydroxide, heat, and pressure breaks the ore down into a saturated solution of sodium aluminates and insoluble contaminants, which settle to the bottom.
  • The next phase of the process, clarification, entails sending the solution and the contaminants through a set of tanks and presses. During this stage, cloth filters trap the contaminants, which are then disposed of. After being filtered once again, the remaining solution is transported to a cooling tower.
  • In the next stage, precipitation, the aluminum oxide solution moves into a large silo, where, in an adaptation of the Deville method, the fluid is seeded with crystals of hydrated aluminum to promote the formation of aluminum particles.
  • Calcinations, the final step in the Bayer refinement process.

Smelting

Smelting, which separates the aluminum-oxygen compound (alumina) produced by the Bayer process, is the next step in extracting pure, metallic aluminum from bauxite. Although the procedure currently used derives from the electrolytic method invented contemporaneously by Charles Hall and Paul-Louis-Toussaint Héroult in the late nineteenth century, it has been modernized. First, the alumina is dissolved in a

smelting cell, a deep steel mold lined with carbon and filled with a heated liquid conductor that consists mainly of the aluminum compound cryolite.

Next, an electric current is run through the cryolite, causing a crust to form over the top of the alumina melt. When additional alumina is periodically stirred into the mixture, this crust is broken and stirred in as well. As the alumina dissolves, it electrolytically decomposes to produce a layer of pure, molten aluminum on the bottom of the smelting cell. The oxygen merges with the carbon used to line the cell and escapes in the form of carbon dioxide.

Rolling foil

After the foil stock is made, it must be reduced in thickness to make the foil. This is accomplished in a rolling mill, where the material is passed several times through metal rolls called work rolls. As the sheets (or webs) of aluminum pass through the rolls, they are squeezed thinner and extruded through the gap between the rolls. The work rolls are paired with heavier rolls called backup rolls, which apply pressure to help maintain the stability of the work rolls. This helps to hold the product dimensions within tolerances. The work and backup rolls rotate in opposite directions. Lubricants are added to facilitate the rolling process. During this rolling process, the aluminum occasionally must be annealed (heat-treated) to maintain its workability.

As the foil sheets come through the rollers, they are trimmed and slitted with circular or razor-like knives installed on the roll mill. Trimming refers to the edges of the foil, while slitting involves cutting the foil into several sheets. These steps are used to produce narrow coiled widths, to trim the edges of coated or laminated stock, and to produce rectangular pieces. For certain fabricating and converting operations, webs that have been broken during rolling must be joined back together, or spliced. Common types of splices for joining webs of plain foil and/or backed foil include ultrasonic, heat-sealing tape, pressure-sealing tape, and electric welded. The ultrasonic splice uses a solid-state weld—made with an ultrasonic transducer—in the overlapped metal.

Finishing processes

For many applications, foil is used in I V / combination with other materials. It can be coated with a wide range of materials, such as polymers and resins, for decorative, protective, or heat-sealing purposes. It can be laminated to papers, paperboards, and plastic films. It can also be cut, formed into any shape, printed, embossed, slit into strips, sheeted, etched, and anodized. Once the foil is in its final state, it is packaged accordingly and shipped to the customer.

Quality Control

In addition to in-process control of such parameters as temperature and time, the finished foil product must meet certain requirements. For instance, different converting processes and end

users have been found to require varying degrees of dryness on the foil surface for satisfactory performance. A wet ability test is used to determine the dryness. In this test, different solutions of ethyl alcohol in distilled water, in increments of ten percent by volume, are poured in a uniform stream onto the foil surface. If no drops form, the wet ability is zero. The process is continued until it is determined what minimum percent of alcohol solution will completely wet the foil surface.

Other important properties are thickness and tensile strength. Standard test methods have been developed by the American Society for Testing and Materials (ASTM). Thickness is determined by weighing a sample and measuring its area, and then dividing the weight by the product of the area times the alloy density. Tension testing of foil must be carefully controlled because test results can be affected by rough edges and the presence of small defects, as well as other variables. The sample is placed in a grip and a tensile or pulling force is applied until fracture of the sample occurs. The force or strength required to break the sample is measured.

The Future of Aluminium Foil

The popularity of aluminum foil, especially for flexible packaging, will continue to grow. Four-sided, fin-sealed pouches have gained wide popularity for military, medical, and retail food applications and, in larger sizes, for institutional food service packs. Pouches have also been introduced for packaging 1.06 to 4.75 gallons (4-18 litres) of wine for both retail and restaurant markets, and for other food service markets. In addition, other products continue to be developed for other applications. The increase in popularity of microwave ovens has resulted in the development of several forms of aluminum-based semi-rigid containers designed specifically for these ovens. More recently, special cooking foils for barbecuing have been developed.

However, even aluminum foil is being scrutinized in regard to its environmental “friendliness.” Hence, manufacturers are increasing their efforts in the recycling area; in fact, all U.S. foil producers have begun recycling programs even though aluminum foil’s total tonnage and capture rate is much lower than that of the easy-to-recycle aluminum cans. Aluminum foil already has the advantage of being light and small, which helps reduce its contribution to the solid waste stream. In fact, laminated aluminum foil packaging represents just 17/lOOths of one percent of the U.S. solid waste.

For packaging waste, the most promising solution may be source reduction. For instance, packaging 65 pounds (29.51 kilograms) of coffee in steel cans requires 20 pounds (9.08 kilograms) of steel but only three pounds (4.08 kilograms) of laminated packaging including aluminum foil. Such packaging also takes up less space in the landfill. The Aluminum Association’s Foil Division is even developing an educational program on aluminum foil for universities and professional packaging designers in order to help inform such designers of the benefits of switching to flexible packaging.

Aluminum foil also uses less energy during both manufacturing and distribution, with in-plant scrap being recycled. In fact, recycled aluminum, including cans and foil, accounts for

over 30 percent of the industry’s yearly supply of metal. This number has been increasing for several years and is expected to continue. In addition, processes used during foil manufacturing are being improved to reduce air pollution and hazardous waste.

Few Brands prevailing in the market.

  • FRESHWRAPP
  • SUPERWRAP
  • HOMEFOIL
  • NUTRIWRAP
  • JACKSON

FRESHWRAPP:

Hindalco is Asia’s largest integrated primary producer of aluminium and among the most cost-efficient producers globally. Its house foil brands include Superwrap, Freshwrapp and Freshpakk semi-rigid containers, which are convenient and popular with consumers.

Delivering ‘never-before-tried’ solutions to customers in India and across the globe, Hindalco has the distinction of being India’s premier supplier of foil and foil laminates — plain lacquered and printed

Hindalco’s best quality of Food Wrapping Foil that are basically used for wrapping food items such as chapatti, sandwiches and others. The product are available in different types of specification, they are made and developed from high quality materials. These products are available in different type’s specification.

11 micron X 300 mm – 72 mtrs , 18 mtrs , 9 mtrs , 120 grams , 50 grams

SUPERWRAP:

Store About this product: Superwrap Aluminium Foil by Hindalco – 72metre Keeps the food fresh and hygienic wherever you take….with this new Superwrap Pure Aluminium Foil by Hindalco.
Mfg. by HINDALCO INDUSTRIES LTD. (foil division)

HOMEFOIL:

  • Hygienically safe for wrapping, storing, covering, sealing, baking and grilling of food products.
  • Keeps food warm and fresh, with aroma and taste intact.
  • Unique rust proof cutter for easy dispensing.

Homefoil Jumbo Blue
75m x 300mm
Code :A14HJB

Homefoil Jumbo Yellow
35m x 300m, 500 gm Wt. Extra thick
Code :A12JY

Homefoil Jumbo Red
99m x 300mm
Code :A8HJR

NUTRIWRAP-

Nutriwrap is aluminium foil which is mainly used for food packaging. It is an 11 micron aluminium foil which can be used for sweet boxes and Tiffin packaging.

Ø 11 micron being used against market standard of 9 micron

Ø matching international standards

Ø embossed foil being launched for the first time in india

Ø better strength – more value for money

Ø edge over competitors

Products:

Ø 9 meters pack (economy, standard, & premium ) for house hold use.

Ø special economy size of 225mm width introduced for sweet boxes .

Ø 18 meters institutional pack .

Ø 72 meter jumbo pack for bulk users (hotels, mass catering)

Ø pull-up sheets for roti-wrap, sandwich-wrap, fast food / snacks restaurant.

Why Aluminium Foil

Freezer-to-oven convenience

The only packaging that can withstand extreme temperature changes, aluminum can go from the freezer to the oven to the table – saving time during food preparation.

Microwaveability

It’s true – aluminiumfoil containers can be used in microwave ovens!In fact, foods heat more thoroughly in aluminium than in plastic and retain more of their original texture and flavor.

Transportability

Aluminium containers are leak-resistant, sturdy, stackable, and keep foods fresher than plastic or Styrofoam containers.

Easy clean up

Choose easy clean-up or no clean-up. After cooking, save your aluminum containers and recycle them.

Tri-oven ability

Not only can aluminium containers be used in a microwave oven, they also stand up to conventional ovens and toaster ovens without melting, charring, or compromising the food’s original flavour.

These attractive properties of rolled aluminium used in packaging can be summarised

(1) Durability and Strength

Aluminium foil is commonly produced in the 1000 series alloys, alloyed only with iron and silicon. These alloys work harden when subject to cold deformation. The thickness (gauge), alloy and temper can be chosen so that the exact properties required can be achieved. Stamped foil containers therefore retain their shape and rigidity.

(2) Lightness

The low density and thinner sections of aluminium compared with some competing packaging materials means a reduced weight, saving energy in transport.

(3) Thermal Conductivity

Aluminium is an excellent conductor of heat and therefore the chilling and heating of the contents of aluminium packaging can take place quickly, with minimal thermal gradients.

(4) Heat Resistance

Aluminium packaging resists a very wide range of temperature, from the very cold to the very hot. There is no risk of cracking, melting or burning. Aluminium packaging products can be stored in the coldest deep freeze and heated in the hottest oven.

(5) Barrier Properties

Aluminium foil acts as a total barrier to light, gases and liquids and can extend the useful life of foodstuffs for long periods of time, measured in years.

(6) Food and Drink Compatibility

The vast majority of foods and drinks have no adverse effects on uncoated aluminium, so there is no contamination. With very acid or alkali ingredients a wide range of food-contact coatings are available affording full protection to the contents of the foil packaging or the can.

(7) Decorative Potential

Aluminium foil and can stock is compatible with all printing processes so that the contents of the foil or the can be attractively

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