SKU Mix. Tea Based Beverage (India)

Transcription

1 SKU Mix. Tea Based Beverage (India) All LUPs (< 50g) : 18%.. Packed mostly in Flexible All packs between 50g and 200gms: 15% Packed in Flexible and Cartons All packs > 200gms: 48%... Packed mostly in Carton All Hot Tea shop packs ( 1kg 2kg) : 13%. Packed mostly in Flexible All Tea bags : 3% contribution Very important for the survival of the FMCG business

2 Continuous effort on reducing the laminate consumption from last year 3-4 years on sustainability Reduction in tonnage Laminate wt redn. Reduction in tonnage 2009 Planned reduction in Tonnage Paperboard redn Total reduction in tonnage ( ) Polymer (Rigid) elimination Total laminate weight reduction : 794 tons (~ 25 % reductions) Total board weight reduction : 108 tons

3 CASE STUDY PROJECT ADNAN Back ground - Over the years, the sizes of the packs have changed according the brand requirement. These had lead to complexities at factory. Also due to machine requirement the pack sizes are kept large for easy filling of the product. Moreover the Poly Ethylene thickness varied from one pack to other for same price range. Objective - Harmonization and complexity reduction of LUPs specification by size and thickness optimization across various LUP skus. Key Achievements a) Sustainability By implementation of the project laminate consumption was reduced by 250 tons per annum. This is around 25% of the total laminate consumption for Tea LUP portfolio. b) Minimum PE thickness for LUPs The PE composition was changed by incorporation of metallocene base PE to ensure required seal strength is achieved at the above thickness of PE. The PE thickness is the lowest used in pillow pouches for net weight of 25g and 50g packs without any pinholes. The PE thickness is lowest available in industry by blow film process. c) Optimization of the Pack Dimension The pack sizes were optimized by changes in the machines, like changes in the cup filler system and gear system of the machine. The current pack size are smallest (with out pinholes) in industry for a particular net content. d) Reduction in complexity at factory Width across skus of same price point (different brands) was harmonized. This helped in reduction in change over time at factory during change in production of one sku to another.

4 e) Reduction in complexity at supplier s end PE thickness for skus of same price point of different brand was harmonized. This helped in reduction of Packaging specification form 7 to 4 (including metalized options) For skus below 25 g: PE thickness is harmonized to 20 µ and for skus below 50 g: PE thickness is harmonized to 25 µ.

5 CASE STUDY PROJECT AUGER Manufacturing Excellence Back ground 69% of Bru IC business is from LUP (Re.1, Rs.3, Rs.10), with Re.1 as 20% contributor. Current filling system is a volumetric cup filler. Filler Changed from Cup filler to Auger filler. Objective Harmonization and complexity reduction of LUPs specification by size and thickness optimization across various LUP skus

6 CASE STUDY PROJECT BIN Back ground Currently in the market our LUP s packaging sizes are smaller in size, however the competition Brands have bigger size packaging fo same amount of tea in the sachets. This creates a perception to the consumer that the tea in the pack is less than the other packs Value for Money is less compared to competition. Also with respect to shelf throw and visibility, while hanging the lup s on the shelf, our packs are less visible than the competition packs. It s difficult to give awareness about the sustainability / environmental footprint etc. to the target LSM group for LUP s. Objective To tackle this size perception issue in the market place by keeping the same amount of packaging and not increasing the wast In turn win over competition with respect to LUP s pack size. Approach Improving Size Perception Via graphic change with no Increase in size or material usage. Working towards, increasing the size impression by changing The orientation i.e from portrait to landscape etc

7 THANK YOU