Ceylon Glass Company Marketing Plan
Research reveals that modern businesses strive to increase there market share and Ceylon Glass Company is not exceptional from such objective. It is for this reason that the company has to analyze the political, economic, social and legal factors before embarking on marketing strategies such as market segmentations. Because of changing business environment brought about by intense competition in the world-class packaging solutions industry, it will be an ideal situation for the company to constantly evaluate and examine its market competitiveness in terms of the products it offers to the market; under this case world-class packaging solutions product.
Therefore, Ceylon Glass Company has the duty to critically analyze any existing strengths, weaknesses, opportunities and threats that might affect the company’s production and profitability in long term. Marketing managers should embrace the concept of all inclusive decision making process in order to formulate viable and marketing strategies that will boost the competitive edge of the company over its rival firms. The company can only cope with such changing business environment if it constantly carries out research in the market. It should be noted that no matter how attractive an opportunity can be Ceylon Glass Company cannot fully utilize it if it does not have the distinct competencies to handle it.
From past research, the most important purpose of any company is to maximize proceeds with an intention of yielding the most excellent probable returns to the shareholders for their funds that they had invested in the business. Therefore, to attain such an intention, business should be successful and resourceful in their production processes. Firms are increasingly faced with many challenges as a result of changing business environments which has brought about competition among various firms.
In order for firms to cope with such competition brought about as a result of rivalry in the market, the respective management has to formulate suitable marketing plans that will enhance their survival and continuity in their businesses (Bagley and Savage, 2006). This study will therefore focus on Ceylon Company which is in the packaging solutions sector and it is perceived to be among the market leaders of that industry. Ceylon Company also faces competition from other world-class packaging solutions companies and particularly in the production of colored wine bottles.
1.1 Company Description
Ceylon Glass Company Limited commonly abbreviated as (CGC) is a worldwide leader in delivering world-class packaging solutions for the pharmaceuticals, cosmetic, liquor, perfumery, and food and beverages businesses. CGC was incorporated on 17th May’1955 and was setup by a consortium comprising on Government of Sri Lanka and Mitsui of Japan. CGC is a successful venture of Piramal Enterprise Limited of Mumbai, India in Glass Container for Packaging. It was acquired by Piramal Enterprises Limited in the year 1999-2000. It holds 54% of the equity of Ceylon Glass Company Ltd. The company has been strategically focusing on diversified market of Sri Lanka and also strategically ventured into international business of colored glass containers.
CGC was listed on Colombo Stock exchange in 1994. Indeed it is reported that in the fiscal year 2005-2006, the turnover of the company was 1.60 billion dollars. Ceylon Glass is the first industry in Sri Lanka to be awarded the BVQI certification of ISO-9001:2000 in recognition of the quality management system for design, development, manufacture and sale of glass containers, from the internationally recognized Bureau Veritas Quality International (BVQI).
Knowing Australia as the one of the expensive country when it comes to labor, CGC will not hesitate to export its products rather than setting up their plant over here in Australia. This company is chosen because it offers several competitive advantages over other similar suppliers such as strong manufacturing presence, wide sales and distribution spread, significant cost advantages, decoration services and accessories and strong presence in US market.
1.2 Business Mission
According to research, a good marketing plan must start with drafting a good company mission statement. Such a statement describes the firm’s fundamental purpose in the surrounding society especially with regards to products or services that it offers to their potential customers. It is also argued that a mission statement must clearly depict some essentials such as the purpose; under this, it is basically what the firm is intending to do and the reasons for its existence in the first place. Ceylon Company basically exists to produce world-class packaging solutions which have become part of the modern norm of the modern society. The other crucial element that it should have is that of the strategy where it must depict its products that it plans to offer and its subsequent competitive position and the competencies that the company will utilize in order to succeed. Ceylon Company has over the past formulated plan of actions such as diversification and production of quality products that meet the criteria of the customers and thus in the process acquired competitive edge over its main competitors in the market (Cullen and Parboteeah, 2005).
A good mission statement should also have policy and standard of behavior i.e. the mission need to be translated into daily events such as providing quality services to its customers. The other component is that of value and culture which means that the employees and the surrounding community are comfortable and no conflicts are faced. Ceylon Company should value its employees well for example their remuneration and work conditions should be the best provisions as compared to other companies. Through social responsibility context, the company should engage itself in various programs such as supporting community projects that are of potential gains to them. Ceylon Company and its subsidiaries should also offer employment opportunities to those who live near the company premises in an effort to boost the economic standards of such communities. Basically the mission for Ceylon Glass Company is to be the world-class packaging solutions provider in the market, which basically implies that the company tries to reach as many customers as possible.
2.0 Situational Analysis
For any contemporary company to survive the growing competition and to effectively utilize its opportunities, a situational analysis commonly referred to as PESTLE analysis is very critical and all firms including Ceylon Company should utilize this kind of market analysis. The aim of Ceylon Company has always been to become a market leader in packaging solutions and particularly in production of colored wine bottles globally by diversifying and reaching to many new markets and an analysis of political, economic, social, technological and legal factors is of benefit to the its operations. However, research indicates that through such an analysis, the company has done well in many markets and thus in the process gained a large significant market share over time. Through this situational analysis, the company therefore should consider the following factors (Mark, 2001).
2.1 Political Factors
The first aspect is that of political issues or factors which involve analyzing the political systems of the countries that a firm intends to invest at. From the company’s profile it can be deduced that Ceylon Company did and constantly carry out such analysis of political factors in their areas of interest. It is also noted that the company has constantly opted to invest in countries that adopt capitalism system of government rather than those countries that are communists in nature. For example it has invested in both Australia and North America where capitalism has been embraced by the respective governments. Capitalism system of governance allows the factors of production to freely and frequently move that is raw material, labor and capital without much prohibition. Political instabilities too should be considered when considering where to invest at and Ceylon Company management has considered such an issue when marketing its world-class packaging solutions and particularly colored wine bottles products in various target markets and in the process avoid the issue of suffering unwarranted losses through such events.
2.2 Economic Factors
The other factor which is very important to all companies including Ceylon Company is that of factors of economic conditions which may hinder the running of a business. From the previous research it can be noted that the company has constantly evaluated such factors in order to run its business smoothly. Economic factors that must be put in to consideration include inflation which affects the business operations of the firm for example in cases when it is high, there will be increased rise of prices because of increased money supply and thus the customers might not afford to buy. Another factor is that of different rates of foreign exchange systems such as fixed, pegged, clean float and dirt float systems practiced by different companies of investments which may hinder the running of the business. Other economic factors include balance of payments, counter trade, fiscal and monetary policies among other factors. After a detailed and cautious research of Ceylon Company it is evident that the company does not face a lot of such economic factors in their areas of investments and that has been the reason why it has been doing well. However, the company faces economic factors such as inflations and changes of monetary and fiscal policies and should focus on making its reliable projections of the future expectations (Kotler, 1996).
2.3 Social factors
Another factor is that of social factor which should be used by many firms including Ceylon Company to constantly evaluate or assess success like income sources of potential customers, social systems and structures, educational, religion and family backgrounds which may impact negatively or positively the conduct of business and in this case marketing world-class packaging solutions products and particularly colored wine bottles. Since social factors influence beliefs, interests and attitudes of the customers it has been and will be prudent for Ceylon Company to evaluate the above factors. The record of the company is not bad; however, it should do more on such issues of attitude of the customers in order to attract and retain many customers of world-class packaging solutions products.
2.4 Technological factors
Another key factor of situational analysis is that of technological factors which is nowadays considered as the root of gaining competitive advantage over rival companies in their respective markets. Through globalization, superior and new technologies have been invented and will continue to boost the marketing activities of businesses including that of Ceylon Company in the market arena. Computerization should be the key in-thing in Ceylon Company marketing operations since it will lead to easy and reliable ways to carry out business transactions such as record keeping and retrieving of information, for example tracking customer’s records in order to supply the world-class packaging solutions products in event of re-orders. The introduction of e-commerce for example should enable Ceylon Company to market its product and invent new markets not only in Australia but in many countries globally. Such technologies saves costs and time that could have eaten the company’s profits and research reveals that the company should fully utilize such saved funds accrued from utilization of superior technologies to further other investments and activities. Also through electronic financing procedures Ceylon Company should be able to carry out its business smoothly without cash flow interruptions. The use of emails and chatting should also contribute immensely to the success of the organization’s employees i.e. they can communicate instantly without many communication barriers.
2.5 Legal factors
Another situational factor that necessitates analysis is that of legal factors that might affect a business which varies from one country to another. Ceylon Company has a desire to invest in many countries and always legal issues exist in such markets, however, it has done well through careful analysis by the management before conducting these transactions. Such factors like legality of the business must be considered and Ceylon Company has done well in its target markets because world-class packaging solutions manufacturing and sale of colored wine bottles products are not illegal forms of business and can be carried out anywhere in the world (Mark, 2001).
3.0 SWOT Analysis
Modern businesses are faced with changing business environments and Ceylon Company is not exceptional from facing such changes within their business context. By carrying out SWOT analysis, environment analysis is very decisive to the company and it is usually analyzed in two extents; the external environment and internal environment examination within the business perspective. Research reveals that the analysis of external environment illustrates opportunities and threats that exist in the market for a firm that may be either present or impending. On the other hand, internal environment examination depicts the strengths and weaknesses that the business may face in the market place (Anthony, 1998).
Strength in this context can be identified as that distinctive ability posed by a firm and if the company utilizes such an opportunity it can succeed and can gain competitive advantage, over its rivals in the industry. The most common strength associated with Ceylon Company is that of being a market leader in the world-class packaging solutions and particularly marketing of colored wine bottles. Research indicates that Ceylon Company is better placed than its main rivals in the market in that it has significantly larger market share which is attributed to its diversification to various countries in the world, for example it has opened many subsidiaries. It is also reported that the company has a strong brand name of its products which have significantly aided the company in terms of achieving a larger market share. The other strength that the company has is that of the best marketing channels that have aided marketing of packaging solutions products to a wider range of customers. E-commerce and particularly the use of internet have boosted the company’s chances of exploring new markets for the world-class packaging solutions products that the firm manufactures.
Weakness in this context can be referred to as any dimension of a firm that possibly will deter the accomplishment of set objectives by the firm and usually considered to comprise the company’s resources, capabilities and assets that are not fully utilized. From the company’s profile it can be noted that Ceylon Company has weak policies, procedures and regulations that may deter the attainment of target performance of the company in some target markets. It is also reported that recently, the employees are not motivated to work and there has been complains regarding low pay and poor working conditions among others although such reports have not been proved. The management of the company should therefore look for ways in solving such problems that may affect adversely the performance of the employees and thus the overall performance of the company. Also the culture of Ceylon’s Company has been under scrutiny and there has been allegation that the company is producing packaging solutions and particularly colored wine bottles which are of poor quality, an issue that the management should look at critically (Anthony, 1998).
For companies to achieve the set objectives, they have to identify and devise events or features in the business external environment that will give them an added advantage or chance of performing better than their competitors. Such an event or feature can be referred to as an opportunity because it will create more chances to the company by increasing the current proceeds through acquiring a significant market share. Ceylon Company has opportunities that if utilized will be of great benefit to the firm because it will lead to exploring and reaching to more new markets. With regards to the emerging new markets of packaging solutions products especially the use of colored wine bottles in some countries particularly in African countries, the company can take advantage of such opportunity and thus increase its market share. Research indicates that there is greater demand for packaging solutions products in Africa and the management of Ceylon Company should open subsidiaries in some of those countries after carefully analyzing the situational analysis in those potential markets. Since Ceylon Company is among the market leaders in packaging solutions products it is perceived to be having a well developed financial foundation and thus does not face any liquidity or cash flow problems. It is for this reason that the company should explore new markets and can compete across the entire market without fearing that competitors can outdo them financially. However, before competing Ceylon Company should carry out cost benefit analysis in order to avoid unnecessary expenditure.
In business context, a threat is regarded as an event which if not taken care of it may possibly deter the accomplishment of company’s goals e.g. customers declining income and competition among other events deemed to causing danger to the operations of the business. Ceylon Company is basically faced with intense rivalry in packaging solutions products since many firms have opted to join the market because it is considered profitable. In fact, in some market segments particularly in Australia there has been a significant drop in terms of the company’s market share because new firms has entered the industry. Globalization concept has brought about new inventions and Ceylon Company is faced with the task of coping with such innovations, for example the task of training and development programs to educate the employees on new technologies might be costly and difficult to acquire; such as the use of on-line marketing techniques and networking facilities (Anthony, 1998).
4.0 Porter’s Five Forces
Porters five forces analysis has been used by many business firms to analyze their position in the industry and thus strategically position them to handle the issue of competition. Since the issue has been identified as a major threat to the existence of the companies industry, this kind of analysis is thus suitable for Ceylon Company which it should understand its competitors, its customers, buyers, sellers, suppliers, and other stakeholders in the business?
4.1 Threat of New Entrants
Research reveals that Ceylon Company is faced with big challenge of new companies in the market which try to market the world class packaging solutions particularly colored wine bottles. With known brand names and higher customer loyalty, established firms like Ceylon Company should push customers to start using its new products in the market since it has a good name in the market. On the other hand Ceylon Company as a new entrant needs to assess the market effectively and ensure that it learns its customers. The company needs to maintain good relationships with its customers so that the competitors i.e. the new entrants may not take away its customers (Porter, 1985).
4.2 Bargaining Power of Suppliers
Due to the bargaining power of suppliers, customers in this industry have started to become sensitive to the monopoly imposed by some suppliers and also the changes in prices that affect the way they receive packaging solutions for instance colored wine bottles. In most cases, suppliers tend to utilize all unique ways in order to bargain for what they want. First, they would like a company such as Ceylon Company to offer them better prices before they manipulate the customer’s price therefore ending up with huge prices. Some companies have become a competitive threat because when they raise their prices, the customers will tend to look for substitute services which can still satisfy their needs but a lower cost. In this industry however, Ceylon Company have little to influence although it can maneuver its way in the market place for production of colored wine bottles.
4.3 Competitive Rivalry
Given an improved world economy and globalization of businesses, there is rush for new customers by every company including Ceylon Company. Due to the high concentration of companies in this industry, it requires very competitive minds to venture in this business. Ceylon and other companies are experiencing intensive rivalry that has in the process benefited the consumers because of superior packaging products. In order to effectively handle the issue of rivalry, Ceylon Company should resort to joint ventures with other firms in order to increase its market share not only in Australia but in other markets (Porter, 1985).
4.4 Bargaining Power of Buyers
Buyers are the most sensitive lot in any business as they influence demand, supply and even distribution. In addition, they rely mostly on quality services that satisfy their needs. Due to changes in technology, customers would like to have world class packaging solutions such as quality and attractive colored wine bottles. When either the suppliers or manufacturers increase prices of their products, customers will most probably go for substitute packaging products. Ceylon Company should allow its customers to bargain for packaging products prices but take into consideration the competitor’s prices. When prices are low and services are of high quality, it is better for the companies. Therefore Ceylon Company should utilize unique marketing strategies such as the media, internet and other local stores in promoting its packaging solutions products like colored products. Since the market is easily saturated, Ceylon Company should devise ways to get customers from other companies and subscribe them.
4.5 Availability of Substitutes
Research reveals that alternative or substitute products have the ability to satisfy related needs and give solutions to customers for what they desire. They reduce the potential returns for many businesses since they place a ceiling on the prices offered for services. Customers will always be tempted to try new products to see whether they are more effective and are made to believe that the newest services on the market are the best since they are current and tested. In order to counter substitute products, Ceylon Company should at least market its products as effectively as possible and thereby meet its market demand (Porter, 1985).
5.0 Marketing Strategy
Marketing strategy is a plan of action in which the company has to utilize in order to achieve its stated goals of increasing sales and hence the proceeds. In order to formulate an efficient and effective marketing strategy, Ceylon Company should critically look at issues such as marketing needs and carrying out market research. The following strategies should be utilized by Ceylon Corporation in marketing its world-class packaging solutions products and particularly that of colored bottle wines
Gap analysis; this is said to be a planning procedure which typically recognizes possible underperformances in future performance and critically considers how it can be filled excellently. Ceylon Company should do this by utilizing forecasting techniques such as time series analysis which should assist it to forecast on the performance of some of its market segments in different countries. This will aid the company to make decisions such as closing the business branches that does not yield good returns and concentrate on those business units that prosper. To effectively carry out gap analysis, it will involve comparing sales and revenues of the company, extrapolating them in to the future founded on past development and deliberation of issues that may affect proceeds.
The other strategy that the company should do is that of market development whereby it will comprise coming up with new markets for the existing colored wine bottles and other packaging solutions products. Such new markets achieved may be dissimilar geographically; new market segments or inventing new purposes for the existing products. However, the management of Ceylon Company should be sharp in formulating speedy, effectual and creative promotional activities which if it succeeds it will yield considerable returns in future years for the company. The other strategy that the Ceylon Company should focus on is that of product development whereby the marketing strategists of the company should revamp and reposition the world-class packaging solutions or completely introduces colored wine bottles to there present markets that will meet the customers’ expectations and needs
The other key strategy suitable for Ceylon Company is that of diversification whereby it will involve the company exploring new markets and try to market both the existing and the new colored wine bottles. Though it is a risky marketing strategy, it will be an ideal strategy for Ceylon Company to employ especially in areas perceived to be with less competition and it will be a success if particularly used as a long-term strategy.
The company should also consider adopting a strategy of market penetration by trying to market the world-class packaging solutions especially the colored wine bottles to rival markets because it carries less risk. This strategy will necessitate Ceylon Company to invent new ways of increasing sales of world-class packaging solutions in the already existing markets. It is considered a low risk strategy particularly when the target is not already saturated (Daniels and Caroline, 1993)
5.1 Target Market strategy
According to research, Ceylon Company has embarked on identification of markets that world-class packaging solutions products can do best and it is through this that the company has sold a lot in the target areas. This strategy is normally referred to as segmentation; where the company has avoided competing entirely across the entire packaging solutions industry but instead targeting certain markets. Market segmentation will be an ideal situation for Ceylon Company since competing across the entire market is expensive and considered to entail a lot of risks that the firm cannot sustain for example unfair competition by its rivals in the market. (Barlon, 2006)
This will involve Ceylon Company marketing staff subdividing the existing market into different subsets of clientele where each division may be chosen as an intended market to be explored with a different marketing mix strategy. In essence, target marketing strategy will involve market segmentation which Ceylon Company will have to find it on the acknowledgment that any segment comprises of potential buyers of world-class packaging solutions with diverse needs and dissimilar buying behavior.
After carefully developing and subdividing the entire packaging solutions market to segments or the target markets, Ceylon Company should then position itself on how to carry out the marketing activities in order to meet the overall objective of the corporation. Under this positioning will imply to formation of limits for products in the minds of the intended market in relation to the rivalry faced. Positioning of any firm including Ceylon Company is very important since it forms the foundation of all the communication of the company that comprise; branding, publicity, advertising and packaging among other strategies. Therefore it will be advisable for Ceylon Company to create a single unique position which will operate as a guide for marketing communications involved thus will aid in transmission of steady image (Blythe, 2001).
6.0 Marketing Mix
Ceylon Company should implement marketing mix strategy, which apply the common “4 Ps” that stands for; product, price, place and promotion. The four elements are considered to work together and the company can fully make use of and will effectively and efficiently yield good results
A product is essentially the basis of an existence of any business and therefore can be said it is the lifeline of any company in trying to achieve its objectives. Ceylon Company produces world-class packaging solutions products especially colored wine bottles. With technological innovations and globalization intriguing centre stage in the modern society world-class packaging solutions products especially colored wine bottles have been on high demand recently and Ceylon Company should cope with such demand (Barlon, 2006).
This is referred to as the total amount that a customer pays in order to acquire certain products. The price of a product is a key determinant to marketing activities of any company and usually determined by issues such as identity of the product, quality of such a product and market share of the product among other actors. Research indicates that Ceylon Company offers its products at relatively cheaper prices than that of its rivals. The company therefore should attempt to be a low cost producer in nearly all market shares that it has. However, in some regions the company can offer its colored wine bottles products at a premium, this is because the quality and the standard of the products are said to be high and has a strong brand name. The main reason for the company’s performance is that of practicing penetration pricing whereby its world-class packaging solutions have been defined originally at lower levels but as time goes by, it raise the prices slowly to meet the company’s needs and to avoid unnecessary losses (Brandenburger and Nalebuff, 1995).
Place is also very crucial to organizations marketing strategies and usually it refers to where the products of the company in this case colored wine bottles are found or purchased. However, it simply refers to channels of distribution that the company utilizes that can either be physical or non-physical channels. An example of non physical is that of e-commerce in selling internationally while that of physical is that of chain stores built in an area to store the colored wine bottles to be distributed in the market. Research shows that Ceylon Company has managed to come up with many and suitable channels of distribution which has supported the company’s increase in sales and thus attaining a large market share in the market. However, the company has an assignment of identifying the best distributional channels in various markets in order to cope with any competitions from its competitors in the market (Barlon, 2006).
This involves all communication strategies used in marketing of a company’s product with an effort of reaching new markets and at the same time retaining the existing market in a particular industry. Promotion has played a key role in gaining large market share by the Ceylon Company in terms of marketing the world-class packaging solutions. The company in its effort to capture has constantly and should continue emphasizing the diverse components of promotional activities which comprise of intense public relations, word of mouth, point of sale and vigorous advertising campaigns. However, the company should also focus on personal selling techniques in order to provide substantial challenge to the competitors in the market. The company should fully promote the packaging solutions especially colored wine bottles in market segments for example by entering in to contracts with celebrities such as Wayne Rooney of England when marketing the products of the company. This is because, research indicates that, if a product is associated with a celebrity then it will perform well in the market since many of the customers particular the fans would like to be associated with the products being advertised (Chekitan and Schultz, 2005).
7.0 Implementation, Evaluation and Control
Since the mission statement of Ceylon Company is clear, that it aims at being the market leader of world-class packaging solutions globally it should implement its marketing strategies particularly in the identified target markets. Implementation is putting in to action whatever plan or strategy that the management had formulated and therefore human resource is the most crucial asset in this stage. Research indicates that any company must motivate and provide clear direction to its human resource in order to attain its objectives. Therefore, Ceylon Company should clearly identify the needs of its employees and try to meet them in order to give them an ample opportunity to serve diligently and be dedicated to the company. By offering a competitive package and offering performance contracts to the employees will ensure that they perform to the fullest because they will be highly motivated to work. Good leadership and management skills will be essential to Ceylon’s management staff in order to get command respect of the employees (Hilltop and Sparrow, 1994).
Previous studies show that for every company to succeed including Ceylon Company in its marketing activities it should constantly evaluate its production and marketing activities in the market place. This will involve the management of Ceylon Company comparing the actual sales and projected sales of world-class colored wine bottles in the identified market segments. This constant evaluation will ensure that its products will retain its market share and at the same time provide an opportunity to decision makers of the company to identify the markets that can be retained and others that can be done away with in the company’s plan. Ceylon Company should also concentrate on monitoring the already existing markets of the company in diverse segments in order to ensure profitability and success of the organization.
7.1 Marketing research
For any company including Ceylon Company, marketing research is very crucial to its activities. This is because through such a research, the company will be able to identify the strengths, weaknesses, opportunities and threats that the company is facing. This will give the management an opportunity to handle such cases without much difficulty since they will know which information is required to solve any issues arising. Marketing research too will present an opportunity to the company to identify and select the target market that can be retained, improved or done away with completely. Globalization has brought about cut throat competition in nearly all industries including the and therefore today’s customers of products are more aware than before because they get perfect information from the market.
Therefore, it will be prudent for Ceylon Company to embrace creativity for example coming up with colored wine bottles considered to be the latest and that which utilizes the modern technology. Such creativity particularly buying creativity in terms of product innovation is crucial to the company since in the long-term it will aid the firm in saving costs that could have been misappropriated as a result of lack of market awareness and therefore marketing techniques deemed to be effective can be formulated with ease. It is no doubt that the success of the company has depended on constant marketing research and that is the reason why it has constantly developed new products (Grant, 2005).
7.2 Organizational structure and plan
Ceylon Company organizational structure is said to be good and that the management has been working hard by incorporating customers demands on designing or modifying the packaging solutions products especially colored wine bottles in order to meet their changing needs in the society. Ceylon Company has a Managing Director who is the overall overseer of the company’s activities and departmental managers are also there to support in developing viable strategies that meet the customers demands and eventually attain large market share. It is evident that the company should continually embark on long term strategies by incorporating marketing techniques for example selecting target markets and developing ideal world-class packaging solutions for that particular market with a view of ensuring that a large market share is attained. Planning involves laying down activities to be undertaken by different group of persons or by an individual with the aim of achieving a collective goal. Ceylon Company should develop schedules which provide each and every employee of the company an opportunity to serve before launching its product. This implies that the company needs to carefully make the timetable of implementation of strategies to adopt. Such an implementation timetable will be followed according to priority in order to avoid unforeseen situations in the business environment. (Murray, 1989)
Generally the company should plan for its current resources particularly in terms of expenditure on expenses because of late the packaging solutions industry has become saturated in some markets and thus the company need to be cost effective in its marketing activities within the target market. The use of forecasting techniques such as time series analysis will significantly help the firm in projecting the future that is the performance of the company when compared to its competitors. Such forecasting techniques also aids the company in estimating the revenues expected as well as the expenses anticipated in the course of investment thus it will avoid getting the company off guard at some other times because they would have formulated strategies to cope with any changes in the market place anticipated.
Ceylon Company is among the current market leaders in the world-class packaging solutions industry and therefore stands a better chance of attaining a significant market share as a result of the brand name of its products that are regarded to be of high quality. Every business including Ceylon Company is faced with challenges and it has to fully adhere to market regulations in order to avoid unfair competition. The concept of globalization cannot be written off either since many firms including Ceylon Company has diversified to various markets and there are problems and opportunities associated with such globalization. Therefore the company should formulate strategies that are considered global in nature in order to meet the current expectations of the customers in the target customers. Such strategies like build, harvest or divest should be considered by the Ceylon Company when assessing the performance of its products in its target markets. Management functions of planning, directing, leading and controlling should be adhered to by the management of Ceylon Company in order to significantly improve the operations of the company by achieving the required targets particularly that of sales increment of world-class packaging solutions and particularly colored wine bottles.
The management of Ceylon Glass Company should focus in the future and particularly focusing to both new and existing customers’ needs and expectations. From this study, it can be deduced that Ceylon Company is a customer-focused business. Therefore the available knowledge of customers and markets should facilitate Ceylon Company to construct and develop an extensive range of its products that are considered relevant to its target customers. Also Ceylon Glass Company should utilize the concept of marketing research to target and build up its potential markets in order to become an international leader in the production of world-class packaging solutions (Lee and Carter, 2005).
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Appendix 1: Promotional Budget for Ceylon Company
Type of Promotion
Cost (US Dollars)
Additional of features to the Company’s website to depict business entry in Australia
Training facilities and expenses of promotional team to market packaging solutions in Australia
Market Test products i.e. Colored Wine bottles to be used in promotional campaign
Traveling and Accommodation for two weeks for marketing team
Stand registration fee
Monthly Planning Budget for Ceylon Company December 2008 to November 2009 (USD)
Proceeds from Sales
Wages and Salaries
Other Expenses (Utilities e.t.c)
Earnings Before Tax
Corporate tax (30%)
Earnings After tax
Appendix 3: Consolidated Action Timetable
Addition of Features to Website
Recruitment of workforce
Manufacture of packaging Solutions
Marketing of products
Launch of packaging Solutions
Appendix 4: Hierarchical Structure of Ceylon Company