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-By Group 1

Ankit Maheshwari (01)

Ramen Lewis (34)Nishant Raj (38)

Rahul Vijay (44)

Vaibhav Parise (50)

Samir Bhere (55)

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o Overview of Champions International

o Present strategy

o SWOT

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o Started operation in 1947 at Cleveland,

Ohio.

o Company has 5 converting, 2 extruder ,

2 paperboard plants in various parts ofUS.

o Domestic market share- 40%

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o Companies vertically integrated

o Because of the scale & integration

economies of firms, new entrants are

effectively shutout.

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o Low cost producer in commodity dairy

segment

o Cautiously upgrading infrastructure but

not to invest in printing & roll-wrappingequipment.

o View exports & special end-use

segment as ancillary unit.

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o Large & efficient board machine.

o Geographically well-located extrusionfacility.

o 5 competitive & strategically locatedcarton converting plants.

o Successful position in dairy market eastof Rockies.

o Excellent service reputation amongdomestic dairies.

o Knowledgeable operating peoplethroughout system.

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o Limited extrusion capacity.

o Lack rotogravure printing.

o Unable to cater diverse need of non-

dairy segment.

o Lack roll wrapping & labeling capability

of competitors at extruding plant.

o Problems with quality.o Reputation of uncertain commitment in

export markets.

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o Uncertain supply of plastics.

o This is a by-product for the oilcompanies. Environmental indignation

over plastics.o Nutritionally, paper is better than

plastics.

o Potential to realize price premium for

cartons by working with dairies tocreate differentiated milk, just like thebranded OJ.

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o Declining market share in branded

segment of domestic paperboard carton

market.

o Outdated manufacturing technology .

o Limited output capability for last 10

years.

o

During expanding international market,company is filled with problems than

opportunities.

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Champion Milk board Ideal juice Board

Converting Plant Fast-speed

Low print quality

Slow-speed

High print quality

Extruding Plant Lighter coat

Standard approach

Heavier coat

Requirement differ for

each customer

The Paperboard Machine Printability- Low

Shelf life- Shorter

Higher

Longer

Pulping Varying pulp mixture Standard pulp mixture

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Regional Dairy Branded

Per carton cost Milk Orange Juice MM / CH Tropicana

End consumer pays 1.16 1.50 1.89 2.26

Store margin 0.12 0.3 0.47 0.47

Store cost 1.04 1.20 1.42 1.79

Dairy/Juicer margin 0.09 0.2 0.25 --

Processor cost 0.87 0.92 1.11 --

Carton cost 0.08 .08 .06 --

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Per Ton Milk OJ MM/CH Tropicana Export(Coated) Export(Uncoated)

Price to processor 1152 1152 864 -

converter margin 248 248 -40 -

Fright to Processor 10 10 10 -

Converter Cost 231 231 231 -

Price to Converter 663 663 663 - 577

Extruder Margin 4 4 4 - -82

Freight to converter 35 35 35 - 35

Extruder Cost94 94 94 - 94

Price to Extruder 530 530 530 - 530

Mill Margin 103 103 103 - 103 103

Fright to Extruder 3 3 3 - 3 ?

Mill Cost (Pulp) 319 319 319 - 319 319

Mill Cost(Other) 105 105 105 - 105 105

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