Lamipak A Market Analysis

Current Situation Strength Weakness

Bag On Roll Low Market Penetration

Own Brand Limited Product Range

Versatile Distribution Non cohesive marketing

Distribution to Carrefour No customization

Acquired SembWaste as customer Packaging not focused on Singaporeans

Don’t know consumer habits

Don’t understand consumers

Mature market

No Corporate Identity

Majority of companies in Singapore are small

Current Situation Opportunity Threats

Expand range of products offered Competitors offering same range

Offer new innovation Competitors lowering the price

Supply customized carrier bags New product to replace plastic

Supply thin barrier bags Environmental Movements

Supply “Lamipak” to the export market

Packaging not focused on Singaporeans

Manufacture environmental friendly products

Strength ¡  The supply of own products with the innovative star

seal will help combat the emergent low profit margins seen occurring across Thailand, Malaysia, Vietnam and even China. This is mainly due to the vast volume of vest type carriers and dustbin liners being supplied to major supermarkets around the world forcing profit margins down.

¡  Being able to distribute to small shops will allow for slow penetration of our products to create brand awareness and hopefully future volume desired.

¡  Distribution throught Carrefour and Sembwaste re-affirms the branding as well as generate revenue to continue operations.

Weaknesses ¡  Weaknesses experienced by Lamipak far outnumber that of its strengths.

This is partly due to its low profile running in Singapore and concentration on producing for buying houses in other countries. The product range has been dictated by products supplied to these countries which may or may not be appropriate for the local market.

¡  Thickness of bags has also followed according to foreign markets which generally require low thickness to reduce costs of transportation. This appears to deter local consumers who base their experience on familiarity which means thick products often with high recycle. Lamipak without vest type carrier or printed products do not have enough recycled material sustain this type of product.

¡  Lamipak exists in a rural area of Guangzhou with very little qualified people. This has translated in sub-standard products which most likely will not pass the stringent tests carried out by buying houses around the world.

Weaknesses ¡  A complete marketing plan requires whole organization to

understand the companies mission and vision and to make sure this is not contradicted (i.e. good customer service)

¡  Putting a lot of resources into Branding of Lamipak manufacturing and innovated would be wasted if it cannot exploit its key competencies to the maximum. Customers may want products customized (small orders) to also bank on this image by co-branding (eg. Intel) but only at a higher price.

¡  Singapore is a small country with 6 million people. Hence, packaging is appropriate for the characteristics of the population. While many households in Europe have swingbins and large dustbins, this is not in the case of Singapore.

Weaknesses ¡ With about 80% population of Singaporeans living in HDB and

the problems of ants and cockroaches, waste is not kept for more than one day, therefore in correspondingly small buckets. Pictures of bins may not immediately create the association desired.

¡ As no real official study has been done to understand or monitor consumer habits there is little that can be done to target the right consumers.

¡  The market now has everything from printed standard bags, butcher bags, dustbin liners to even ice-cube bags, there seems very little potential of further growth.

Opportunities ¡  Expanding its product range to include a bag size used by the

majority of households could help Lamipak’s penetration into the markets.

¡  Offering new innovations not just in bag types but also dustbins and dispensers that can make life easier or better for the consumer (ie cockroach or ant repellent, fragranced), would also help develop its market.

¡  Allow some customization to meet the clients’ needs (large accounts).

¡  Supermarkets use bag on roll at around 12 micron, as this bag is used as a barrier and not to carry goods. We could consider attacking this market with a thinner, clearer bag with an improved dispenser and handling.

Opportunities ¡  Rather than allow the buying houses to dictate quality and

conditions, we could consider to find distributors in different countries for our own products. This can exploit Lamipak’s long experience in producing products for this market. Indecently, with the European unification, this has opened a market thrice of that of the US. However, their income per capita is of course far lower.

¡  If it is possible to change consumers ideas about thinner bags, this could be regarded as “more” environmentally friendly. Efforts could be used to introduce oxobiodegradable bags which is also another form of creating brand awareness.

Threats ¡  Competitors could easily offer the same range of products

emphasizing the need to be the “THE FIRST” in this very competitive environment.

¡  Our products are also low involvement products where consumers don’t want to consider much on purchase. Therefore, if we are not able to differentiate between competitors, any move by them to lower prices will affect sale volume.

¡  Developments are made in renewable resources. The fact that plastics is produced as a by product of oil means it is also limited in supply. The association of plastics with oils creates a stigma which cannot be easily changed, therefore any materials from a renewable resource which can be introduced at a competitive cost can render as obsolete.