Canadian Packaging Machinery Market Research Report - PMMI

4. Future Packaging Machinery Plans (next 3 years):
Krispy Kernels may invest in shrink film equipment, in gas flush equipment and/or in
upgrade of packaging equipment (either new or refurnish present ones). In the
future, improvements will be made to the feeding method of the packaging machine.
5. Key Factors in Purchase Decisions:
Factor Ranking
(1 = Most
Important)
Quality/Reliability/Durability 1
Price 1
Potential Operating Cost Savings/Added Value 1
Equipment Characteristics & Features (e.g. flexibility, 1
speed, capacity, unique features, etc.)
Service & Technical Support – In Canada 1
Service & Technical Support – In General 2
Up-to-date Technology 2
Operating Reliability/Accuracy 2
Costs of Materials and Maintenance 2
Availability of Repair Parts 2
Previous Experience with the Supplier/Brand 2
Experience in Our Industry/Industry Sector 3
Brand/Supplier Reputation 4
Credit Terms 5
Speed of Delivery/Delivery Wait Period Depends on
urge of project
Additional comments:
Krispy Kernels believes that this type of answer does not convey typical decision-making
factors:
1- Depending on urgency of project, the lead time can become a factor 1 or it can be a
10.
2- Depending on the use (5 days a week or 1-2 days every second week) of the
equipment, the accuracy and speed become less important.
3- Whether a product involves mass production or a launch trial product can be an
important factor. The size, speed and price can become a factor 1.
4- Service: Is 24hr service on call? Krispy Kernels is a French speaking company
located in the city of Quebec, Quebec province Canada. If the servicing company is
located in California or Vancouver, Washington, this is less appealing than if it is
located in Chicago with service in Montreal or Toronto. It is even better if the
company is able to provide service in French.
5- It is of utmost importance that replacement parts can be obtained in regular
warehouses nearby. Krispy Kernels has a tendency to reject any machinery using
OEM parts. We have found they cost too much in maintenance. The company
prefers a machine that is less up-to-date over new modern equipment with dedicated
OEM parts solely sold by the manufacturer. This can result a no-buy decision.
6- Because Krispy Kernels is located in Canada where the population is much smaller,
set-up and changeover are a very important part in a purchase decision.
SMG/Columbia Consulting Group Page 86