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Bangladesh Invented Bioplastic Jute Poly Bag and International Market Potentials

Shaharia Pavel
Graduate School of Business, Siam University, Bangkok, Thailand

Vijit Supinit
Graduate School of Business, Siam University, Bangkok, Thailand

Abstract/ Executive Summary:

In one minute, one million plastic bags are in use around the world and in Europe, plastic carrier bags are produced 3.4 million tons in a year and average European uses about 500 plastic bags per year that takes 100s of years to degrade and not only contaminates the environment but also directly impairments many living organisms. Bangladeshi scientist invented jute poly bag using jute cellulose that is bio-degradable and bio-plastic in nature, which is substitute of conventional poly bag. It will play a significant role in concern with environment, temperature, air, soil and sea pollution as well as the opportunity to retain the glory of Bangladeshi jute in international market and farmers to keep smile. In the paper, we will analyze international marketing strategy, product positioning, competitiveness and potentiality in the international market through SOWT, marketing mix & porter’s five forces analysis. Our observation that newly invented jute biodegradable poly bag will gain market share in international plastic & bioplastic industry as well as the potential market for exporting all over the world and especially in Europe and North America. Bangladesh has both absolute and comparative advantages in producing jute poly bags.

Keywords: Bioplastic, Substitute of Poly Bag, Exports Potentiality, International Marketing and Competitive Analysis

Location: In Bangladesh

Start Date:

End Date:

Program Area: Resource Development and Management

Commodity: Jute

Objectives:

Bangladesh invented jute bio-degradable poly bag (Jute cellulose) are similar to bio-plastic and high & low density, that is bio-degradable as well as compostable (two-three months). So, the bio-plastic industry will be the main competitor of the product and other industry conventional and durable bio-plastic industry will also be factor to entry in international market. The bio-plastic industry is growing industry in the world due to the big concern of environment and awareness of end used and decreasing uses of non-renewable resources pushing back conventional plastic industry. But still conventional plastic industry is the most active player in the world market which has the maximum market share.

Methodology:

Throughout the research, we use descriptive analysis using SOWT analysis to find out strength and weakness of Bangladesh jute industry and Bio-plastic industry competitiveness analysis with Porter’s five forces model and 4p’s of marketing mix concept. All data are collected from secondary sources i.e. Organization of Plastic Bag Free World, Plastic Industry Association of Washington, Indian Jute mills associations, Smithers Pira, Bangladesh Jute Mills Corporations, European commission online website, Online magazine Packaging Strategies, Energy and Gold Ltd., Daily-Sun newspaper, the largest petrochemical market information provider' ICIS, One line newspaper Textile Today, The Guardian, Thailand Board of Investment, Biotic organization of Thailand as well as article of different journals.

4.1. SWOT Analysis

Through the SWOT analysis we have observed that the strengths of Bangladesh are fertile land for jute production, experienced farmer and friendly weather for jute cultivation, low labor cost ($68), Government support, Ongoing research on jute diversified product (JDP) and bioplastic. Bangladesh is one of the highest among jute production and exporting countries and Jute products are environment friendly, biodegradable and new product line in Bio-plastic. In addition, Factor of productions are in favor of Bangladesh for Bio-plastic (land, labor, capital and entrepreneurship). Though, there are some weakness such as lack of infrastructure development, less investment in research and development, experienced marketers to compete with conventional Plastic and Bio-plastic industry in international market. But Bangladesh has many opportunities i.e. increasing demand of JDP and bio-plastic in world market, changing consumer mind to shift to eco-friendly products, countries are banding and encouraging to use jute product, increasing concern of environmental issues. The main threats are conventional plastic industry for their convenience, user friendly, cheaper and attractiveness. By inventing Bio-Plastic poly bags and increasing demand could be big strength in future for Bangladesh jute industry. Taking this opportunity Bangladesh could overcome the weakness of infrastructure development and more investment in research and production of quality jute and products. As Bangladesh has absolute & comparative advantage in jute producing that will help to get cost leadership through mass production and strengthen ability to face the threat of conventional and Bio-plastic poly bag industry. More attention in research in development and holistic approach in training, planning, executing and marketing will help minimize the weakness and to avoid threats.

Source of Information: Open Journal of Business and Management Vol.05 No.04(2017), Article ID:78731,17 pages 0.4236/ojbm.2017.54053

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

There are a few alternatives of plastic poly bags which are as convenient as poly bags. A few companies are producing bio-degradable poly bags that are made by crude oil and natural gas non-renewable sources which are not bio-plastic. Bio-plastics are made from natural sources basically collected through cultivation in green field, though it is contradictory of gaining benefits because of crop production which needs water, oil & land and some are essential food for human & animal. But Bangladesh invented bioplastic and biodegradable poly bags that are more encouraging compared to corn based bio-plastic because jute production takes less effort for bulk production and not eatable. Although some scientists are hoping to produce bio-plastic from algae but it is still not sufficient and ongoing research.

The strength of Bangladesh, one of the highest jute producing countries of the world, farmers are well experienced to produce high quality jute and the newly invented jute poly bag that is a value added product which will help to gain global market share. We also found that the main competitors are PLA producing countries but still producing PLA (Ploy lactide acid, Corn starch) is costly that’s why in the past many start-up companies were not able to sustain in long run but some organizations are producing & marketing all over the world by getting help from government and environmentalist. Through the competitive analysis, we understand that there are monopolistic markets for Jute poly bags and negligible threat of substitute as well as bargaining power of supplier and consumer that will not affect all due to world demand and supply which is still a far way to get equilibrium.

Bangladesh has sufficient knowledge in exporting jute & readymade garments all over the world for a long time especially in European Union where she gets duty free export opportunity mostly in all products and we suggest focusing EU to get cost leadership in known market at first phase. We also suggest concentrating on Asian market especially in India and China though this market will be competitive in near future due to availability of resources in corn starch production where forecasted that China will be a leader in Asian as well as world market in producing corn starch. Most of the currently planned volume production facilities are being implemented in Thailand, India and China, and over 1/3 quarters of bioplastics will be produced in Asia by 2022.

Knowledge Management: Journal