1. 1. Shatakshi Tripathi Indian Institute of Management, Indore-PGP Mumbai (Brand Management Intern) Sandu Brothers Private Limited
2. 2. Objective The objective of the project is to maximize revenue generation by improving upon the following: Quality of the Packaging Material Increased Sale-ability of the end product Cost Reduction 2
3. 3. Contents 3 Slide Name Slide Number The Action Plan 4 Quality Improvement 5 Quality Improvement-Cartons 6 Quality Improvement-Corrugated Box 9 Quality Improvement-Glass and Plastic Bottles 11 Quality Improvement-Foils 14 Quality Improvement-Glue 15 Increased Sale-ability 16 Labels: Marketing Perspective 18 Cartons: Marketing Perspective 27 Cost Reduction 32 Project Status 36
4. 4. The Action Plan Quality Improvement Comparison of the current specifications with the Industry standards Implementation of New testing Methods wherever necessary Improvisation and Implementation of a Standard Sampling Plan Preparation of specification sheets in accordance with the changed parameters Increased Sale-ability Market Research to ascertain the customer inclination towards the product and its packaging Understanding market demand and customer expectations Comparison of current sales and monitoring the improvement Analyzing current sales and advertising practices Market survey to understand the change in customer perception post change implementation Cost Reduction Comparison of the current packaging material with the market leaders Suggesting change as and when required. Return to Contents4
5. 5. Quality Improvement The analysis was done for all the packaging material involved. However the critical ones were found to be: Packaging Cartons Corrugated Box (shippers) Glass and Plastic Bottles Caps of the bottles Foils Glue It was found that several critical parameters needed to be tested and also, some of the tolerances were not as per Industrial Standards. The same were then added and/or rectified as and when required. The details for the tests and revised specifications are given in the subsequent slides with the specification, protocol and test-method files attached. Return to Contents 5
6. 6. Quality Improvement: Packaging Cartons As the first step, all the board types used in manufacturing the cartons and their GSM were identified (and calculated) and noted in the specification sheet The tolerances were also revised to the Industrial Standards wherever required and revised specification sheets were prepared as per ISO 9001 requirements Further, based on the requirement, following tests were introduced: Lock-Bottom Test: The utility of this test is for the lock bottom cartons which experience deformation if the bottom flaps arent pasted properly. This results in increased effort in carton opening at the time of packaging which if cumulated will add to the loss in manpower hence reducing efficiency To avoid the same, it has to be checked that the pasting flaps do not exceed or fall short of the pasting margin. This should be checked both for the bottom as well as side flaps Return to Contents 6
7. 7. Quality Improvement: Packaging Cartons Tear Test It has been observed that sometimes, even though the glue has been applied, the pasting flap does not stick over time and opens up. This is very common defect with laminated cartons. Eg: Horlicks 500gm cartons of GSK once opened in bulk in the market which resulted in major recall and revenue loss To prevent this, minimum 60% tear should be obtained on the pasting flap when torn perpendicular to the surface. Ink Adhesion Test This test will be applicable if as would be suggested later in the slides, lamination is replaced with UV. 10-12 rubs of MEK (Methyl Ethyl Ketone) need to be done to check for any ink removal Return to Contents 7
8. 8. Quality Improvement: Packaging Cartons Tape Test: Lamination This test is specific to laminate or Met-Pet jobs. Done with Scotch tape 600 (pasted and removed immediately) or regular cello tape (pasted and rubbed on the surface for 90 seconds and removed fast) This test again checks adhesion of the Ink to the surface so that it does not wear off in presence of an adhesive Rub Test This test has been suggested to prevent Ink scuffing i.e. Ink wear off during transportation and handling when the cartons will rub against each other. This test would however require the purchase of a new rub tester equipment. It was also observed that, many cartons had worn off crease which resulted in increased effort to open them. Hence, the vendor needs to be instructed to change the cutting die after 2,50,000 impressions. Return to Contents8
9. 9. Quality Improvement: Corrugated Box The major issue being faced with the corrugated boxes is the bursting strength. The three parameters which define it include: Moisture Bursting Strength Delamination The above mentioned parameters are critical since deviation in any of the above leads to excessive reduction in the combination of flute and liner Tests to measure the above have been introduced. The specifications of the same are given in the attached file Another Point of import is the fact that presently the company outsources the Bursting Strength Test and hence spends INR 500 for every single test. Also, a lot of lead time occurs in getting the test results. 9Return to Contents
10. 10. Quality Improvement: Corrugated Box BS being a critical parameter needs to be checked in every lot. Hence, buying a bursting strength machine would not only save time but would be cost effective in the long run. A suggestion for improved flute strength is to have a mixed flute structure. Instead of having two A or B flutes, a mixture of B and C flute would be both cost effective and have higher strength A worksheet containing the procedure for calculating the ideal bursting strength for future use has also been prepared and shared 10Return to Contents
11. 11. Quality Improvement: Glass and Plastic Bottles The critical parameters for the quality of any container are the following: The transport stability These tests determine the ability of the containers to resist any damage that might happen in transportation. These tests are relevant mainly for plastic containers Drop Test for Plastic Containers Stack Load Stability The overflow Capacity Though the specification was given, a standard method for testing the same hadnt been defined. The same has now been done as per the standards 11Return to Contents
12. 12. Quality Improvement: Glass and Plastic Bottles The product-container compatibility These are a set of three tests which measure the ability of a container to pass its chemical constituents into the substance it carries. The tests are: Storage Stability test Compatibility Test-1 Migration ability Test Leakage Testing This test is done to check for any seepage through the carton which might result in contamination of the product it carries. 12Return to Contents
13. 13. Quality Improvement: Glass and Plastic Bottles Dimensional Tolerance Since any dimensions increasing /decreasing beyond the stipulated might result in in-accurate product filling resulting in either loss to the company or a law suit, dimensional tolerances are very critical for the containers The tests for the aforementioned have been newly introduced in the system. Revised specifications have been prepared based on these in addition to the testing manuals for future use. One more major addition made is that of the Thread and Groove diameter. A quantitative measure and similarity of this between the bottle neck threads and the cap grooves will avoid any seepage at the neck once the bottle has been tightly screwed. 13Return to Contents
14. 14. Quality Improvement: Foils Two critical parameters that need to be tested for foils include: Presence of Unwanted odor Ink adhesion on the surface This is because presence of unwanted odor can interfere with the drug in use as an odor is due to excessive presence of chemicals Ink Adhesion is necessary to be tested since if the ink peels off the address or any text matter denoting the constituent of the drug; it will be a legal issue Hence, tests have been introduced for these two as the foils were not being tested for these parameters before 14Return to Contents
15. 15. Quality Improvement: Glue Usually glues are tested for their adhesion post usage. However, by this time, if the glue is not proper, it has already been used and any correction done at a later stage would result in money and man-power wastage Glue adhesion depends on two factors. Hence tests have been used to measure them which are: Solid Content of the Glue Glue GSM Thus, by measuring the obtained values against the standard, glue quality can be determined 15Return to Contents
16. 16. Increasing Product Sale-ability This section involves the analysis of the packaging products from marketing and customer point of view. The requirement for this stage would include: Annual sales of the past 10 years per product Revenue generated per product (output less input in monetary terms) Current sales and marketing practices and modes of advertising used Competitors sales data of corresponding products The utility of the aforementioned lies in Comparison of sales data of individual products will help to understand which product needs a packaging change. The products which are meeting the sales target are deemed to be appealing to the customers primary requirement of quality and hence making him indifferent to the outer packaging. However, if the sales are well below the expectations, a change in packaging and marketing strategy might be required. Comparison with the competitors sales data will help in identifying the gaps if any in the packaging and marketing strategy 16Return to Contents
17. 17. Increasing Product Sale-ability A questionnaire has been prepared in order to ascertain the customers inclination towards packaging. The questionnaire answers the following basic questions: How much importance does a customer allot to packaging? What feature does a customer look for into a packaging? Is the packaging brand dependant or vice versa? The target segment which will influence the design changes most. However, certain results have been drawn from the preliminary analysis of the cartons and labels. These would be discussed in the subsequent slides. An important point to be noted for the products that do not specifically require medical supervision is that more visible the readability of the cause and effect, increased will be its demand. Example: Amul Probiotic Butter-milk is bought by people regularly for improved digestion only because the label specifically and in bold mentions the same. 17Return to Contents Click here for the Questionnaire
18. 18. Labels: Marketing Perspective 18 There is left over area between the Sandu Logo and the Drug name. The focus thus shifts away from the Medicines name. Since, it is the medicine that we market as a brand, an alternative can be as illustrated below Name of the medicine Sandu Logo Return to Contents
19. 19. Labels: Marketing Perspective 19Return to Contents a b a b a b Sandu Logo Name of medicine Indication Name of medicine Indication In the current cartons there is no symmetry in placing the company logo. An alternative will be to make it symmetrical and write the indications below the name. This will increase the readability ease of the carton and also, the name in front will grab more attention The issue can be found in almost all arishtas and kadhas a=b a>b
20. 20. Labels: Marketing Perspective 20Return to Contents Gandhak Rasayan mentions the indication as various skin diseases; this can be made specific to the exact diseases it will cure or provide relief in Mahamanjishthadi Kadha is for skin problems while the visual gives feel more of a cosmetic product. The same can be changed to a disease ridden face or picture showing similar other problems
21. 21. Labels: Marketing Perspective 21Return to Contents It would be preferable to use images instead of herbs since herbs do not indicate what the intended use is. And better visuals imply lasting impression in the customers mind.
22. 22. Labels: Marketing Perspective Hemocleen Since the product has cosmetic value to it, the color of the ladys skin can be changed to pinkish white to denote a healthy glowing skin Ephenin Due to its inherent utility, the image can be changed to a person coughing or gasping for breath Osteon-D Due to its intended usage for bones, the visual can be of the bone x-ray with surrounding pattern in preferably bright colors to show strong bones Berb-Enterone The visual someone holding their stomach giving an indication of stomach disorder. Also, the indications should be written at one place only (preferably front) Haemol-Forte The visual can be the image of a happy and healthy family 22Return to Contents
23. 23. Labels: Marketing Perspective Tej Ras Since it is a brain tonic, the image can be of a child holding a trophy or a brain surrounded by bright light. Madi Phala Rasayanam The image can be of digestive system showing smooth passage of food. 23
24. 24. Labels: Marketing Perspective 24Return to Contents As has been mentioned in the introductory slide, what is visible is what sells. Here, we have the indications written in English words but the words are actually Hindi. Hence, there is a possibility that a layman might not buy these products out of confusion and go for the competitors product. The correct way would be to write the English Translations The labels which have the same issue include: Shankhavati Corysan Triphala Guggul Yogaraja Guggul Fevril Dashmularishta Amritarishta Ashokarishta Dashmul Kadha Kutjarishta etc.
25. 25. Labels: Marketing Perspective 25Return to Contents The color can be made uniform as the sudden white transformation doesnt look very attractive Text matter is too small and seems to have crowded--- The label size can be increased to address this issue Orientation of the side texts can be horizontal to provide ease of reading to the customers
26. 26. Labels: Marketing Perspective 26Return to Contents Consumer Care number written in the illustrated manner seems crowded The font size for the same can be reduced as is in other labels and written below the green triangular area (marked in red)
27. 27. Cartons: Marketing Perspective 27Return to Contents The color is very light and hence gives a dull appeal such that it has been on shelf without being sold for long. The same can be avoided if dark colors are used.
28. 28. Cartons: Marketing Perspective 28Return to Contents Uncontrolled clinical trial written in the back panel gives a negative feel, alternate language can be used for the same Front panel says that the medicine does not cause hypoglycemia while the inner side panel calls the medicine as a good Oral Hypoglycemic Agent. Request you to kindly clarify my doubts on this.
29. 29. Cartons: Marketing Perspective 29Return to Contents Amidst all English text, one says reduces pitta, this can be changed to reduces acidity or some other effect of the reduced acidity The side panel has visuals which show the utility of the product across all ages. Thus, writing in all phases of life can be assumed as redundant The range of usage is 10-20 gm. The same can be reduced to give a more specific and precise feel.
30. 30. Cartons: Marketing Perspective 30Return to Contents
31. 31. Cartons: Marketing Perspective Balant Kadha No. 1 Since the medicine is for women who have just delivered, the visual can be changed to the picture of a lady on the nursing bed, holding her new born. Balant Kadha No. 2 The target segment for this medicine is lactating mothers and hence, the visual can be a lady holding a less than one month old child with her house in the background Balant Kadha No. 3 Based on the target segment, the visual for this medicine can be a mother playing with her child, preferably holding the child above in air 31Return to Contents
32. 32. Cost Reduction This part of the project aims at altering the process or raw material wherever required in order to reduce the overall cost. Following alterations have been suggested as and when necessary Replacement of lamination with UV Change in design 32Return to Contents Rs 0.32 versus Rs 15.77 per sheet: The cost of UV versus Laminate for a 12*18 sq. inch carton area Source: Graphicartsmag.com
33. 33. Cost Reduction On-screen printing and lamination cost can be avoided by alternating it with UV varnish. Example: Colgate cartons use gray back board and have a UV varnish of min 75 at 60 degrees. The luster of the surface is comparable to a laminated carton The inside printing in Debix and Stresan can be avoided and if mandatory, can be replaced with black colored printing. This will save cost as the inside printing is done in a separate pass and hence involves an additional fixed cost component, also more the number of colors used, more is the printing cost. Example: Nestle uses gray back board with inside printing done in black on the gray surface The two pullouts in Stresan can be replaced with one as they do not add much value since the aesthetics work on the principle of marginal utility i.e. beyond a point, the value diminishes. Also, a simpler die design for cutting creasing will result in lesser expenditure at the end of the vendor and hence a cheaper carton for us. 33Return to Contents
34. 34. Cost Reduction Balant Kadha No. 1 uses a die for cutting and creasing which is different from the one used for Balant Kadha No. 2 and No.3. The only difference that comes is in the orientation of the closed carton which does not add value to the end customer. Hence, once the die impressions of BK1 are over, the same die can be used for the three cartons with a minor artwork change. Thus, the fixed component of the die cost will be reduced which will reflect in the overall carton cost to SBPL. 34Return to Contents Direction of opening for BK 2 and 3 Direction of opening for BK1
35. 35. Cost Reduction The same concept can also be applied to : Jaundex and Whoopin Syrups 50 ml Whoopin, Shishuvin and Kumari Asav 200 ml 35
36. 36. Project Status The Project In plant-on shop floor Quality Improvement (DONE) Cost Reduction (DONE) Head Office and Market Place Market Survey and Analysis (REMAINING) 36
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