Case Studies
Being a innovative complete packaging solutions company, we regularly looking to market analysis and research. As a part of it we regularly publish case studies and share the insights with our clients.
Case Study:
Why 99% of Food Start Ups fail?
We work with 5 to 6 new brands every month. After one year barely one brand is making serious progress year on year. Around 90 percent shut shop and balance 9 percent are stuck with same volumes and eventually fade away. In our humble opinion they are two reasons.
Lack Product differentiation
Fool me once shame on you. Fool me twice shame on me!!
Consumers are smart. Packaging is only going to get you attract the consumer once. No amount of packaging gimmick is going to help if the product does not connect with the consumer. Monitor repeat order. Don’t push create a pull market.
One customer kept on making changes to artwork to attract the customers but packaging can help you sell once not twice!
Frugal
One SKU the investment is about Rs. 80k to one lakh on print cylinders. Packing film is about 50k.
Customer A decided to launch 20 sku’s at one go. We pleaded them to relook at the strategy. The customer’s product marketing managers insisted on higher sales only if entire product width is available.
Customer B decided to launch 6 SKU’s focusing on minimal artwork to convey product differentiation and maintaining minimum investment on cylinders and packaging material. Used the chunk of investment amount on marketing and reaching to more customers.
Customer A tanked within one year. Customer B as grown to be a famous brand with turnover of 25 crores with stable cash flows within 3 years. They have great understanding of the market. The brand now plans to expand to new geographic locations and launch new products year on year which adds to the topline and bottom line.
We suggest minimum investment in print cylinders, packaging material and epic understanding of market before making sizeable investments.
Case Study:
The technological edge: Yield!!
Auto Gauge Film Vs Non Auto gauge Film.
We at KJR manufacture only Auto gauge film.
Milk Film Thickness: 50mic
Auto gauge Film Yield: 450 pouches per kg
Non Auto gauge Film Yield: 435 pouches per kg
The difference is 15 pouches per kg.
Incase your monthly consumption of milk film is 6000kgs We are talking about higher yield of 90000 pouches per month. Never ever underestimate the power of Yield!!
We suggest minimum investment in print cylinders, packaging material and epic understanding of market before making sizeable investments.
Case Study:
The Price trap
A leading brand was quoted per kg price of Rs. 170 per kg by another converting. We quoted a price of a Rs.180 per kg. The customer obviously was mad at our pricing and made the switch to the new convertor. We did an in depth analysis of the films.
KJR film structure:
15 Matte BOPP + 25 met cpp
Yield : 1920 pouches per kg
Cost per pouch : 93 paise
Competitor structure:
18 Matte BOPP + 25 met cp
Yield: 1790 pouches per kg
Cost per pouch: 94 paise
No difference in cost per pouch. Always monitor the structure, Yield and cost per pouch.
We at KJR believe in transparency & ethical working. No cheap parlor tricks, we play fair. We believe in longevity, and nothing makes us happier than to see your brand succeed. Whether you purchase from us or any other convertor we are a call away for any inputs.