INTERNATIONAL

MARKETING

Anoopa NarayananRafshad MahmoodSreekanth Mohan

WESTERN INDIA PLYWOOD LTD.

An Organization Study on International Marketing Strategy

 

Industry profile

The Indian plywood industry owes its origin to the development of tea industry

In 1947 India was a net importer of plywood, mainly tea chest plywood

The plywood industry consumes about 15 million m3 timbers of primary and secondary species.

Company Profile Western India Plywood ltd., the largest integrated wood-processing complex in the country as well as in southern Asia was established in 1945 and it started manufacture of sawn timberland plywood on a modest scale with a few ingenious and lend lease machinery.

WIP is the fourth biggest plywood in Asia. The factory is situated in Kannur district Kerala state. WIP collects timber and firewood through import from Malaysia, Africa, Burma, Russia etc., and local purchase.

Company Profile(contd.)

WIP exports 80% of total production to Germany, USA, Canada, Italy, Australia, Japan, Sweden, Middle East and Gulf Countries regularly. The rest of 20% is being through retail outlets and Company’s sales depots throughout the country

The WIP is widely held public ltd, company listed in cochin and Madras Stock Exchange.

Though its 60 years of existence WIP has been singularly responsible for the most significant product innovations in the Indian plywood industry.

During the year 2009-10, the company achieved a turnover of rs.90.20 Crores and a profit before tax of rs.7.27 crores.

VISION, MISSION AND QUALITY POLICY

VISION Continue to remain the best plywood panel

corporation in India with a growth in allied areas.

MISSION To provide utmost satisfaction to the consumer

through best quality and customer care. To continuously upgrade the product through

innovation and convergence of new technology and to produce the best quality product.

QUALITY POLICYQuality policy of WIP is to manufacture products as per national/international standard a make them available to customer as per requirement. THE WESTERN INDIA PLYWOOD LTD endeavour to upgrade the quality of its products and related services on a continual basis through regular improvement effort. A well-defined quality management team has been implemented. The system is continually revised to enhance its effectiveness and updated to meet changing needs.

PRODUCT PROFILEThe major product for which the company has been the leaders in quality since 1945 is just because of its finest quality products produced as per international standards

WIPWOOD WIPLAM WIPCHECK WIPROC WIPBEAR WIPCHEM WIPRESS

TOTAL PRODUCT EXPORTS

Product FOB value (in Rs.) Percentage

Hardboard 66,63,16,953 61.86%

Plywood 5,42,56,470 5.04%

Compreg 24,72,55,262 22.96%

Wiplac 2,55,63,161 2.37%

Pre compressed board (P.C.B) 6,61,04,873 6.14%

Furniture 50,89,996 0.47%

Veneer 1,24,70,111 1.16%

Total Product Exports 1,07,70,56,826 100%

Source: Export Import Dept.

International Marketing

The company imports its raw materials from Burma, Germany, Africa and Russia because of the shortage of raw material in the domestic market.

WIP do have a small competitors like Burma Woods, Raman Board and some Brazilian, Singapore and Malaysian companies. But these factors haven’t affected the business of WIP for the past 45 years

When it comes to pricing, the company has been supplying to its clients for a very reasonable price and the quality.

WIP doesn’t need much promotion because of the fact that they already have a ready market for the products. The only medium through which the clients get to know about WIP is through their website.

SWOT AnalysisSTRENGTHS

Superior quality of the products WIP caters to a variety of market segments like railways,

defence,automobile,civil aviation, electrical and transport. Clients are loyal towards them and intend to buy the products

from WIP no matter which ever companies enter the market in the same industry

Manufacture products as per national/international standard a make them available to customer as per requirement

First to get ISO9000 certification for hardboard and prefinished boards.

The company has earned special appreciation from leading industries in the automotive sector, Footwear sector, ISRO, BARC, Indian Railway etc.

Company has a well established R&D unit approved by the central government

SWOT Analysis(contd.)

WEAKNESS

The company has been passing through acute problems of sourcing good raw material and escalation in its prices periodically.

The main raw material for the company viz. Timber is being imported and the company has no control over the price prevailing in the overseas market.

The Levis charged by the government, increase in price of petroleum products etc. contribute increase in cost of production.

The increased cost could not be fully absorbed in their market price and therefore shrinkage in the margin in some of their products.

Globalisation also contributed in lowering the margins.

SWOT Analysis(contd.)

OPPORTUNITIES AND THREATS

Fewer competitors in the field. The raw material for the plywood factory is

softwood and for hardboard plant is waste wood. The availability of timber is subject to government control and policies and continues to be a scarce raw material. Therefore company has to depend on importing timber to meet its production requirements.

PROBLEMS AND LIMITATIONS FACED BY THE COMPANY

1. The company is facing timber shortage i.e. which is the raw material for all the products manufactured by the company.

2. The downturn of the economy has caused a fall in demand from high mass buyers around the world.

3. The management of the company do not make costly advertisements in media domestic and abroad.

4. Sales promotion techniques are lacking.5. Besides labour problems, the management of the company

should also see whether the employees get maximum job satisfaction.

6. To make aware of yet another buyer, participation in international trade fairs and exhibitions are not followed by the company.