Santo Tomás Professional Institute

PUERTO MONTT HEADQUARTERS

Service Packing CORIO SPC

CARTON PACKAGING SERVICE

WRINKLED

ALUMNO: Rocío Jeannette Alvarado Díaz

PROFESOR GUÍA: Sr. Mauricio Herrera
 GRADE SHEET

TITLE PROJECT ACT

Name and RUT of the student :

Carrera :

IPST Headquarters :

Name of Guide Professor :

Name of Reporting Teacher :

Date :

Project Title :

Weighted final grade

Qualifying commission Calificación Ponderación
Numbers Words

Guide Professor 50%

Informant Professor 50%

Calificación Final:

__________________ _______________________ _______________________

Company Company Company
DEDICATION
THANKS
 GENERAL INDEX

Project Title Presentation I

Score Sheets ii

Dedication. iii

Thanks... iv

General Index v

Table of Contents.................................................................................... viii

Index of Figures x

Glosario y abreviaturas……………..…………………………………………………….. twelve

Summary………………………………………………………………………….…………xiii

1 FOUNDATIONS ....................................................................................................1
1.1 Introductionn .1
1.2 Description of the problema ........................................................................2
1.3 Project objectives .................................................................3
1.3.1 General Objectivess ....
1.3.2 Specific objectives................................................................................3
1.4 Methodology.....................................................................................................3
2 PROJECT DEVELOPMENT ..........................................................................4
2.1 Background sector generalr ..................................................................4
2.1.1 Situation of the sector at the international level and situation in Chile..4
2.1.2 Growth of the level of packaging and containers at the national level ................7
2.1.3 Geographic identification of packaging companies in the sector..8
2.1.4 Economic characterization of the sector.11
2.1.5 Marketing/recycling channels.15
2.1.6 Companies in the packaging sector....................................................16
2.1.7 Strategic Analysis...............................................................................19
2.2 Description of the Idea ...................................................................................35
2.3 Misión y visión de la empresa. .......................................................................36
2.4 SWOT Analysis ...............................................................................................36
2.5 Marketing Plan
2.5.1 Marketing plan objectives..............................................................42
2.5.2 Target Market. ..................................................................................42
2.5.3 Marketing Mix .........................................................................................47
2.5.4 Communication Strategy
 2.6.1 Organizational structure .......................................................................62
2.6.2 Job Description ...........................................................................62
2.6.3 Remunerations ....................................................................................65
2.7 Financial Assessment ...................................................................................67
2.7.1 Investment Plans ................................................................................67
2.7.2 Bank Loan Evaluationo70
2.7.3 Demand estimation......................................................................71
2.7.4 Estimated annual revenue growths.74
2.7.5 Production Costs First Yearo ..........................................................76
2.7.6 Depreciation of Assets.............................................................77
2.7.7 Cash Flow ..........................................................................................78
2.7.8 Evaluation Criterian...........................................................................79
2.7.9 CAPM Model ........................................................................................80
2.8 Legal Aspects ..........................................................................................82
3 COMPLEMENTARY ASPECTS .....................................................................88
3.1 Bibliografía.....................................................................................................88
3.2 Annexes ..........................................................................................................89
3.2.1 Annex A - Main users by type of packaging..89
3.2.2 Annex B - Statistics of production, export, and import of EyE
90
3.2.3 Annex C - Source of imports...................................................92
3.2.4 Annex D– Quotations .........................................................................93
3.2.5 Annex E - PreviRe Indicatorsd .95
3.2.6 Annex F - Per Capita Income per Household.................................................96
3.2.7 Annex G - Economic Data of the Country ...................................................97
 TABLES INDEX

Table 2-1 - Global packaging industry: GDP and per capita consumption relationship...............6

Table 2-2 - Participation of the Sub-sectors in the produced value. ..............................7

Table 2-3 - Production of the packaging and packaging sector in Chile...................................7

Table 2-4 - Suppliers and their market share.............................................8

Table 2-5 - Geographic distribution of companies related to the paper and cardboard subsector 9

Table 2-6 - main exporting and importing companies of packaging................10

Table 2-7 - Exports of the paper and cardboard subsector (Period 2002-2009) .............12

Table 2-8 - Imports of the paper and cardboard subsector (Period 2002-2009)..............12

Table 2-9 - Projections for the next 10 years ................................................................13

Table 2-10 - Projection of growth in the paper and cardboard subsector (Tons)............13

Table 2-11 - Main types of paper and cardboard EyE ..............................................13

Table 2-12 - Number of companies by subsector ......................................................16

Table 2-13 - Estimation of waste flow from paper and cardboard (tons).........18

Table 2-14 - Economic indicators ..........................................................................21

Table 2-15 - Contribution of the sector to the national GDP (millions US$).....................................22

Table 2-16 - Index of Production and Physical Sales of paper and cardboard ........................30

Table 2-17 - CANVAS business model .................................................................41

Table 2-18 - Consumer Market for Corrugated Cardboard..............................................43

Table 2-19 GSE in the main cities of Chile..................................................43

Table 2-20 Determination of the resistance of corrugated cardboard................................52

Table 2-21 Recycling exchange values for paper and cardboard................................53

Table 2-22 Product Prices .................................................................54

Table 2-23 Company Remunerations ................................................................65

Table 2-24 Employer Charges................................................................................66

Table 2-25 Website Design Costs ...........................................................................67

Table 2-26 Marketing Plan Costs..........................................................................68

Table 2-27 - Investment in Machinery.........................................................................68

Table 2-28 - Initial Investment...........................................Error! Bookmark not defined.

Table 2-29 Office Expenses ......................................................................................68

Table 2-34 - Consumption of blueberry boxes.............................................................71

Table 2-35 - Consumption of fruit boxes. ...............................................................72

Table 2-36 - Total consumption estimate of fruit boxes. .........................................72

Table 2-37 - Liquor Company Box Consumption.......................................................73

Table 2-38 - Income from Inner Master Boxes..............................................................74

Table 2-39 - Total Revenues First Year..........................................................74

Table 2-40 - Growth Segment 1: Boxes for 20 Kilos of Fruits ................................74

Table 2-41 - Segment 2 Growth: Boxes for Bottles .........................................75

Table 2-42 - Growth Income Cash Inner Master ................................................75

Table 2-43 - Total income .......................................................................................75

Table 2-44 - Production Costs First Year............................................................76

Table 2-45 - Percentage of growth in production costs ................................76

Tabla 2-46 - Depreciaciones.......................................................................................77

Table 2-47 - Annual salaries......................................................................................77

Table 2-48 - Cash flow ............................................................................................78

Table 2-49 - NPV Evaluation Criteria......................................................................79

Table 2-50 - Investment recovery period.......................................................80

Table 3-1 - Corrugated Cardboard Boxes.......................................................................89

Table 3-2 - Micro-Corrugated Cardboard ..............................................................................89

Table 3-3 - Cardboard Cases................................................................................89

Table 3-4 - Multi-layer Bags (10 kg and more) ..............................................................89

Table 3-5 - Bags (< 10 kg).........................................................................................89

Table 3-6 - Physical production of paper and cardboard packaging (Tons).....................90

Table 3-7 - Value of the physical production of paper and cardboard packaging (millions of

US$) ............................................................................................................................90

Table 3-8 - Export of paper and cardboard containers (Tons)..................................90

Table 3-9 - Export of paper and cardboard packaging (thousands US$ FOB)..........................90

Table 3-10 - Major exporting companies of paper and cardboard packaging...91

Table 3-11 - Paper and cardboard packaging imports (Tons) ............................91

Table 3-12 - Imports of paper and cardboard packaging (Thousands US$ CIF)......................91
 INDEX OF FIGURES

Figure 2-1 - Global Annual Sales Industry.........................................................4

Figure 2-2 - Worldwide sales by subsector.....................................................5

Figure 2-3 - Latin America EyE Industry - Compared Physical Production................6

Figure 2-4 - Geographic distribution of companies related to paper and cardboard EyE

10

Figure 2-5 - Balance of the management of paper and cardboard Eye and Eye at the national level.............15

Figure 2-6 - Flow of Marketing Paper and Cardboard Waste...........................18

Figure 2-7 - Unemployment rate graph of Los Lagos. ...........................................21

Figure 2-8 - Global Growth of the economy and the packaging and packing sector. 22

Figure 2-9 - Relationship between per capita income vs. Eye and Ear consumption .................................23

Figure 2-10 - Growth Index of the Exporting Food Industry ...............29

Figure 2-11 - Sectoral exports Chile and the Los Lagos region .........................29

Figure 2-12 - Packaging Manufacturing Companies ....................................................32

Figure 2-13 - SWOT Analysis Summary....................................................38

Figure 2-14 - Value Chain....................................................................................38

Figure 2-15 - Methodology of a packaging system.................................................44

Figure 2-16 - Diagram of incidents and risks in the product lifecycle .......45

Figure 2-17 - Market Positioning.................................................................46

Figure 2-18 - Example of Folding Boxes .....................................................................48

Figure 2-19 - Multipurpose Box Example ...........................................................48

Figure 2-20 - Example of a two-piece box.................................................................49

Figure 2-21 - Example Inner and Master box ..................................................................49

Figure 2-22 - Self-assembling box models. ..........................................................50

Figure 2-23 Corrugated cardboard compositiono ..............................................................51

Figure 2-24 - Boxes for fruits.

Figure 2-25 - Master Inner Box..................................................................................52

Figure 2-26 - Box for bottles..................................................................................53

Figure 2-27 - Physical space of the company.................................................................54

Figure 2-33 - Company organizational chart ..................................................................62

Figure 2-34 - Potential market graph.....................................................................71

Figure 2-35 - Box Consumption.................................................................................72

Figure 2-36 - Blueberry Export in Chile.......................................................73

Figure 2-37 - Annual revenues ...................................................................................76

Figure 2-38 - Production Costs............................................................................77

Figure 3-1 - Web Development Budget...............................................................93

Figure 3-2 - Advertising Budget ............................................................93

Figure 3-3 - Quote for HSM ProfiPack 400 Recycler .............................................94

Figure 3-4 - HSM ProfiPack 425 Recycling Quote ............................................94

Figure 3-5 - PreviRed Indicators

Figure 3-6 - Per Capita Income by Household..................................................96

Figure 3-7 - Gross Domestic Product (GDP)...............................................................97

Figure 3-8 - Unemployment and Employment Rate......................................................97

 GLOSSARY AND ABBREVIATIONS

CENEM: Center for Packaging and Packing of Chile, founded in 1991, is a

private non-profit organization that also represents the industry of
Packaging and Packaging seeks solutions to the technical problems of the sector and aims to
to provide added value to the management of its members.

Packaging: Packaging or packing is acontainerthe packaging that contains products

temporarily mainly to group units of a product thinking of
its manipulation,transportystorage.

Packaging: Container that facilitates the preservation and transportation of the product it contains.

especially a food.

FEFCO: The European Federation of Corrugated Cardboard Manufacturers is a

non-profit organization that represents the interests of the industry across
Europe and addressing a wide range of issues, from technical issues to
economic issues.

Liner Machines: The liner insertion machines. Basically, they are devices
to automatically introduce liners into the lids.

OECD: The Organization for Economic Cooperation and Development is a

intergovernmental international organization that brings together the most countries

market economy industrialized

Packaging: It is a term from the English language that the Royal Spanish Academy does not

It is included in their dictionary. The concept, in any case, is used very frequently.
to refer to the packaging, container, or wrapping of something.

Per Capita: It is a phrase of Latin origin currently used that literally means 'by head'
each head' (is formed by the preposition per and the accusative plural of caput, capitis
'head'), that is, 'per person' or 'per individual'.

Recycling: Recycling is a process whose purpose is to convertwastein new

products or materials for their later use.

WPO: World Packaging Organization is a non-profit organization, not

governmental, international federation of national packaging institutes and
 SUMMARY

SANTO TOMÁS PROFESSIONAL INSTITUTE

Execution Engineering in Administration
Puerto Montt
06 de Diciembre de 2016

Services and marketing of cardboard packaging and containers

corrugated.

Autor:Rocío Jeannette Alvarado Díaz

Profesor Guía:Sr. Mauricio Herrera

Palabras Claves:Embalaje, Envase, Cartón, Service, Packing.

The Service Packing Project (Corrugated cardboard packaging services),

It originates from the business idea where the professional practice was carried out; it is currently being used.

There is a lot in terms of packaging for products as exports are growing, thus
as well as small and medium-sized enterprises in the industry that constantly
están utilizando servicios de embalajes para sus productos, esta idea nace a raíz de la
investigation of corrugated cardboard in the Chilean market, where it was observed that it is a
growing market, in addition to being a type of packaging that can
be easily recycled.

The problem is identified as a result of seeing that in many parts of the country and in

specific to the region, there are amounts of cardboard in the trash that can be
recycling, but beyond that, the business idea arises from the fact that nowadays companies
they do not invest in research and development to know which is the best packaging for their
products and also because we are a country that exports, and for this reason we need
to add value to products through packaging. That is why this is done.
project to build a company dedicated to the marketing of boxes
corrugated cardboard around packaging, but also provides solutions
strategic, regarding packaging and wrapping to the companies that are already present
in the market, as well as those that are just entering the industry and require
packaging for your products.
 1 FUNDAMENTALS
1.1 Introduction

For our country as a guarantee of progress, economic development, and well-being,

it is essential to maintain the ability to export diligently. In this way, the
the role of packaging and packaging takes on extraordinary importance due to its value that
they confer to the products to be marketed. The trade is obviously expanding and with
packaging and packaging as protection for products during their life cycle, have
converted into these latter ones, into an important industry on a global scale that is
projects continuous technological advances that respond to changing demands
of the consumers.

Packaging and packing (EyE) within the manufacturing industry consume

a high amount of resources, which when compared to its short lifespan, can give the
the impression that all those resources employed are going to be discarded at some point.
For this reason, the industry has worked hard to take reduction actions.
size and resource reuse. On the other hand, it has taken actions to make them
reusable or recyclable, in order to achieve material or energy recovery.

Within the manufacturing of containers and packaging, the most used material is cardboard.

because besides being a type of safe packaging, cardboard has no components

toxic, so recycling is safe and relatively easy to do. Recycling of
Cardboard also saves energy, natural resources, and the necessary space in landfills.
En Chile la industria del reciclado de cartón data de hace al menos unos 30 años, y hoy
More than 80% of the liner paper produced in Chile today is made from recycled material.
While paper, liners, or corrugated cardboard can be recycled endlessly, the fibers
they are losing their characteristics with each turn, so it is necessary to add
virgin fibers, for the strength of the papers, but always in much lesser amount
percentage of recycled material that makes it up.

In Chile, the packaging and packing industry is growing with a marked trend
on the rise. At the same pace as exports, the majority of companies with a
well-defined packaging strategy, they have a team of dedicated personnel to
full-time to R&D, given that it is a critical function that encompasses its manufacturing
and its waste or recycling. However, since companies tend to work more with
Less staff, it is necessary to provide them with some degree of support, hence Outsourcing.
It is the corporate strategy of any company.
1.2 Descripción de la problemática

The environment in which a product must survive from the moment it is manufactured until
reaching the end customer (distribution stage) can be very severe. The system
product–packaging, must be able to withstand without suffering excessive damage,
compressions, vibrations, humidity, static electricity, heat, cold, changes of
pressure, impact from falls, instability, infestation, etc. Although many
companies consider packaging to be a very important aspect to take into account,
there exists at the same time and generally the idea that the packaging system and
product packaging is more of a 'useless expense' or a 'problem' rather than a value
added to the product, or profitable short-term investment.

In light of the above, it is confirmed that for the development of a system of

optimal packaging and containers require consideration of numerous factors
in addition to a consistent methodology that relates and optimizes them without detriment to
none of them.

Many times a problem arises in companies regarding the creation of packaging.

suitable for their products, especially for small businesses that are just starting out
venturing into the market. They need a type of packaging that can meet the
customer expectations but also a packaging that is safe to transport. Today
Nowadays, there is a need and concern for the environment, the expectations and
customer demands have increased regarding the type of packaging being eco-friendly and also
recyclable since this is what the campaigns by the municipality are based on
they encourage people to recycle. That is why there is the problem of eliminating those
types of packaging that cause pollution, this is derived from the bags that
companies dedicated to business lines such as Courier use. That's why
complement the idea of creating a company dedicated to secure packaging but also
that can create reusable containers over time and that their components prevent in what
more possible the pollution.
1.3 Objetivos del proyecto

1.3.1 General Objectives

Gather all the necessary information in the packaging industry in order to

execute the business idea
Investigate and advise companies on types, qualities, and costs of packaging.
that comply with the required standards.
Gather economic, social, and environmental information related to the sector of
packaging and packaging materials.

Identify the current management of used packaging and containers at the national level.

1.3.2 Specific Objectives

Modelar un sistema de embalaje en el diseño de envases que cumpla con las

established norms that are also ecological and recyclable.
Creation of a marketing and production company for containers
corrugated cardboard.

Reach 1% of the total annual sales of the packaging market and

cardboard packaging in Chile.
Brand positioning in the medium term.

1.4 Methodology

En base a la metodología a utilizar para realizar el proyecto, se entregarán las

next stages:

Stage 1: General data of the sector.

At this stage, general data will be provided regarding the sector in which
develop the project.

Stage 2: Business model.

The problem will be identified and the general idea of the project will be defined along with it.
a SWOT analysis will be carried out and then start with the business model, thus creating
the mission and vision of the company.

Stage 3: Financial evaluation of the project.

Identification of initial investment, costs, cash flow, NPV, and IRR developing a
 2 PROJECT DEVELOPMENT

Analysis of the industry, customers, and competitors.

2.1 General background of the sector

The management of packaging and wrapping waste (EyE) is a topic that already
it shows a degree of progress in the country, although in a differentiated manner according to

type of material. Within the diagnosis, it was verified that, for all sub-sectors
currently analyzed there are recovery and valorization activities of part of
the materials under study, which have been developed from within the companies themselves
sector, based on voluntary actions and market requirements

2.1.1 Situation of the sector at the international level and situation in Chile

The packaging and wrapping market is generically composed of

by supplier companies (manufacturers and importers) and their distribution outlets as well
like through various distributors. The suppliers correspond to companies located
preferably in the Metropolitan Region Within this segment, a part
The importance of companies is associated with the Center for Packaging and Packaging.
from Chile (CENEM) and/or in specific Associations.

At the international level, the packaging and packaging supplier sector has shown
an average annual growth of 4.2% over the last decade, totaled to 2009
total estimated sales in US$ 563.847 billion. Even though the physical amount is
complex to determine, this would be approximately 485 million tons.
 The largest part of the global packaging market is in the paper subsector.
and cardboard, which in 2009 represented a fraction close to 38%.

Below is a graph with the market sales index by

subsector where it is shown that the paper and cardboard subsector represents the largest
part of the sales.

Figure 2-2 - World market sales by subsector

It is a recognized fact that the consumption of packaging and wrapping has

directly related to the standard of living of people. This is concluded from the figures
compared between per capita consumption of packaging in developed countries versus
countries with emerging or underdeveloped economies, as shown in the figures
previous. If we review the ranking of countries with the highest packaging consumption, the list is

led by the United States and Japan, with Brazil being the first Latin American country
in appearing, ranking 11th.

While Chile and Argentina lead in per capita annual consumption of packaging
Latin America is still very far from the equivalent consumptions that are recorded in
developed countries, mainly from North America and Europe, which more than
local consumption triples. However, this should not be viewed with indifference,
given that in European countries there are very organized systems for collection,
recovery and recycling of post-consumer packaging, that is, they have taken charge of the
situation, unlike what happens in Chile.
The following figure shows a comparison chart of the industry in production.
física (Toneladas) de Latinoamérica.

Figure 2-3 - Latin America EyE Industry - Comparative physical production.

The following table shows per capita consumption according to studies

delivered:

Country GDP per capita (US$/ Inhabitant year) Per capita consumption of packaging
(kg/Person per year)
United States 46.300 346
Canada 38.700 403
United Kingdom 35.500 304
Germany 34.200 256
Spain 33.100 271
France 32.800 303
Italy 31.200 319
Chile 14.000 109
Russia 14,000 114
Mexico 13.900 91
Argentina 12.500 108
Brazil 9.400 68
Peru 7.300 33
China 4.900 33
Table 2-1 - Global Packaging Industry: GDP and Per Capita Consumption Relationship

According to this, the organization of the industry should not be neglected and postponed.
envase y embalaje, dado que de mantenerse los ritmos de crecimiento del país, hacia el
in 2020, the consumption of packaging in Chile could double, and as a result,
also the generation of waste.
In Chile, there is an abundance of cellulose and, as a consequence, a comparative cost arises.

smaller on paper than in plastic resins, which are preferably imported.

Where a significant difference is marked is in glass containers, where the fraction
the market in Chile more than doubles that which is observed in the global context (13%)
versus 6%).

Table 2-2 - Participation of the Subsectors in the produced value.

Subsector Participation year 2009 (%)

World Chile
Metallic Containers 16% 12%
Glass Containers 6% 13%
Paper and Cardboard Containers 38% 28%
Wooden Packaging 6% 7%
Plastic Packaging 34% 40%
CENEM source

For the particular case of paper-carton packaging, the World Packaging

The Organization (World Packaging Organization WPO) reports that during 2009 the
the global market for these containers reached US$ 216.398 billion, where Central and
South America, contributing US$ 7.527 million, accounted for 3%. Chile with US$ 618 million.
it means 0.28%. The main market for this type of packaging is in the countries
Asians who together make up 36%. However, the individual market that is largest
The importance is the United States, which represents 23.4% of the global market.

2.1.2 Growth of packaging and packaging levels at the national level

In recent years, the physical production of the packaging and packing sector has
maintained a sustained growth, reaching 1,815,100 tons in the year 2009.

Table 2-3 - Production of the packaging and packaging sector in Chile

Year Production Value of production

Ton (Millions of US$)

2002 1,251,048 1.372

2003 1,328,752 1.432

2004 1,455,572 1.607

2005 1.513.482 1.794

2006 1,607,134 1.928

2007 1.784.447 2.200

 Likewise, the value of production has maintained a steady growth.
exception of the year 2009, where it experienced a reduction of 8.8% (see Table 3).
Razón de ello fue una baja generalizada en los precios de las principales materias primas
used in the manufacturing of containers and packaging: between 20% and 40% for the
metal materials, between 18% and 25% for paper and cardboard, and a reduction of a
30% decrease in the price of plastics. This decline was reflected in the price of packaging and
packaging, as between 40% to 70% of the total production cost corresponds to the cost
of raw materials

Diagnosis of paper and cardboard packaging and packaging.

2.1.3 Geographical identification of packaging companies in the sector.

In the market for paper and cardboard packaging and packaging, there are
composed of manufacturing and importing companies, as well as distributors. Within
from this segment, an important part of the companies are associated with
Center for Packaging and Packaging of Chile (CENEM) and in the association of printers of
Chile (ASIMPRES). The local market is concentrated among few suppliers, such as
indicates table No. 4. Based on the data from it, no more than 10 manufacturing companies.
They concentrate about 90% of the market.

Table 2-4 - Suppliers and their market share.

Container Company % of the market
Corrugated cardboard CMPC Companies (Roble Alto/ Containers
printed materials). 45%
International Paper. 10%
San Fernando Cartons. 10%
Cartocor. 8%
Smurfit Kappa. 5%
Imitate. 5%
Corruption. 5%
Chilempack. 5%
LPS. 3%
Others. 4%
Micro- corrugated Marinetti. 50%
Vera and Giannini. 20%
The Selected. 15%
Graphis Pack. 10%
Fare. 5%
Cardboard packaging Marinnetti. 40%
Vera and Giannini. 35%
The Selecta. 10%
Others. 15%

Paper bags CMPC Propa Companies. 100%

Pulp trays CMPC Chimolsa Companies. 100%
shaped
 The study has identified a total of 1310 points of sale for packaging and
paper and cardboard packaging at the national level. This universe includes both
companies specifically dedicated to the sector such as large retail stores,
including supermarkets. 70% of the companies that distribute these containers are
located in the RM, as well as 44% of retail commerce.

In parallel, over 100 supplier companies for inputs were identified.

for containers, practically all of them located in the RM.

Additionally, a total of 82 companies related to storage were detected.

recovery of paper and cardboard and related materials, of which 19% is located
in the Metropolitan Region, among them SOREPA, RECUPAC, and Reciclados stand out
Industries. The area between regions V and VIII concentrates 52% of this.
type of companies.

The summary of this information is presented in the following table:

Companies Companies of
Region Retail Manufacturers and Collection y
Distributors Recycling
of Containers

Fifteenth Region 7 1 1
I Region 17 1 0
II Region 43 2 1
III Region 24 1 5
IV Region 48 3 4
V Region 103 12 7
RM 484 91 17
VI Region 41 6 2
VII Region 108 1 15
Eighth Region 72 3 3
IX Region 44 4 10
XIV Region 29 1 5
X Region 55 4 10

XI Region 6 0 0
Twelfth Region 17 0 2

Total general 1098 130 82

Table 2-5 - Geographic distribution of companies related to the paper and cardboard subsector

The users of these containers correspond to a large number of

sectors including the food industry and, in general, all activity
which requires some cardboard packaging. (See Annex 1).

The previous analysis concludes that the largest number of companies

 In the lakes region, we can see that there are 4 manufacturing companies of
packaging and packaging materials, where multi-packaging is one of the companies with the strongest position

in the cardboard industry in the Lakes region.

The main exporting and importing companies of containers in this

The subsector is detailed below:

Table 2-6 - main exporting and importing companies of packaging

Corrugated cardboard boxes

Consumer market %
Fresh and frozen foods 52
Processed foods 16
Alcoholic beverages 5
Others 28
Micro-corrugated cardboard
Consumer Market %

Food industry 65

Chemistry and cosmetics 15

General manufacturer 10

Others 10

Cardboard cases

Consumer market %

Food industry 40

Cosmetics industry 25

Pharmaceutical industry 25

Non-food industry 10

CENEM Yearbooks

The following figure provides a detail of the geographic distribution of the

main manufacturing and distributing companies of these containers, as well as companies
the retail, in addition to those of collection and recycling, indicated previously:
 From the previous analysis, it is concluded that the largest number of companies

related to the manufacture, distribution, and recycling of paper and cardboard packaging are
they concentrate in the central-southern zone of the country (V to VIII regions), with a predominance of the

Metropolitan Region. This proportion is directly dependent on the areas of

highest concentration of the population at the national level.

2.1.4 Economic characterization of the sector

a) Determination of the sector size and relative importance in Chile.

The Paper and Cardboard Packaging Subsector, as of 2009, represented 34% of the
physical production of the EyE sector and 28% of the value of said production (in millions
of the US$) Within the percentage that the total of the EyE sector contributes to GDP (2.37% to
In 2009, the subsector contributed 0.67%. In 2009, physical production reached
609,800 tons, registering an increase of 1.5% compared to 2008, while
that the production value reached US$ 618.0 million, which represented a decrease
of 8.8%.

Within the subsector, the following segments are identified:

• Corrugated cardboard boxes

• Micro-corrugated cardboard boxes
• Fibrepaper tubular containers
• Cardboard packaging
• Multi-ply sacks (10 kg and more)
• Bags (< 10 kg)
• Packaging elements
• Molded pulp trays
• Cornerbacks
• Wrapping paper: smaller cuts
• Multicomponent packaging

In terms of produced tons, the segment that has the most impact is boxes of
corrugated cardboard, concentrating 78% of the production, followed by containers of
cardboard with a 10%. Regarding the value of that production, both maintain
similar shares (corrugated cardboard boxes account for 70% and containers of
cardstock up 15%.

In the subsector, 12 companies concentrate 100% of the EyE exports.

made of cardboard. The company Propa S. A. stands out, which exports sacks and bags, with a

equivalent to 65% of the total exports of the subsector and the company Envases
 In the subsector, imports are distributed among a large number of
companies; however, 12 companies account for 35%, with the company Sig standing out.
Combibloc Chile, which imports plain cardboard boxes and cardstock (7% of the total of
Imports). Next is Viña Concha y Toro S.A. with 5% of the total.

It is worth noting that according to the studies of CENEM, part of the production
nationally exported. In the year 2009, this represented 4% of the produced tons.
equivalent to about 40 tons. The following table indicates the historical volume of
export in tons and in thousands of US$.

Table 2-7 - Exports of the paper and cardboard subsector (Period 2002-2009)

Year 2003 2004 2005 2006 2007 2008 2009

Export
(Ton) 14.08 19.834 20.07 22.537 29.931 29.835 22.975
Export
(thousands of US$) 14.597 19.713 22.514 26.725 37.934 41.827 31.421
FOB)
Source: CENEM Yearbooks

In the subsector, 12 companies concentrate 100% of the EyE exports.

made of cardboard. The company Propa S.A stands out, which exports bags and sacks, with a

equivalent to 65% of the total exports of the subsector and the company Envases
Printed materials (Corrugated cardboard boxes) with 21% of total exports. Both
Companies concentrate 86% of this market.

In general, the volume of imports of paper and cardboard EyE is quite

low compared to national production. The following table details the imports
historical data of the sector, in tons and thousands of US$:

Table 2-8 - Imports of the paper and cardboard subsector (Period 2002-2009)

Year 2003 2004 2005 2006 2007 2008 2009

Import
(ton) 47.217 58.426 58.772 62.368 59.158 38.100 34.997
Import
(thousands of US$ 76.361 86.719 94.969 105.978 109.975 107.312 118.981
CIF

[Link] Evolution of the Sector and Projections for the Next 10 Years.

The present diagnosis progressed in determining the generation of waste from

Eye, for which production, import, and export information for each was used.
subsector, also considering the flow of EyE that enters and exits the country containing some
specific product, for which the main user sectors were evaluated
each type of packaging. In turn, the destination of the waste was established based on the
 Table 2-9 - Projections for the next 10 years

Year 2009 Projection Year 2020

Generation Disposition Eye Disposition
Eye Eye Eye
per capita destination available destination
Sub- available Recycled Recycled
(kg/person.- unknown in the country unknown
sector in the country (tons) (tons)
year) (tons) (tons) tons
(tons)

Paper and 355.990

cardboard 438.099 25.9 (81%) 82.149 922.133 749.306 172.911
147.567
Glass 276.796 16.3 (53%) 129.230 582.616 310.606 272.009
33.193
Metal 61.399 3.6 (54%) 28.206 129.236 69.866 59.369
35.630
Wood 64.624 3.8 (55%) 28.994 89.455 49.320 40.134
40.875
Plastic 327.957 19.4 (12%) 287.082 690.301 86.036 604.265

Considering the growth of the population, the expected behavior of the

per capita consumption, the previously detailed balance and the participation of subsector, is
has determined the following projection for the next 10 years.

Table 2-10 - Growth Projection for the Paper and Paperboard Subsector (Tons)

Projection Paper and Cardboard Subsector

2011 667.181
2012 720.265
2013 777.512
2014 839.244
2015 905.808
2016 976.636
2017 1,052,940
2018 1,135,142
2019 1.223.693
2020 1,319,078

[Link] Type, Growth Characteristics and Product Composition

marketed in Chile.

All containers made of paper and cardboard are considered packaging.

["cardstock","solid cardboard","micro-corrugated cardboard","corrugated","multi-ply paper","bags"]
molded pulp bags and trays. The following table indicates some types of containers
and its manufacturing processes.

Table 2-11 - Main types of paper and cardboard Eyes and Ears

Aspect Cardboard Packaging Envases de Cartón

Corrugated

Tipo de Envase Cases, Multi-packages, Boxes

Display

Process of Die-cutting/Folding/Glueing Die-Cutting/Adhesive Assembly

Preparation
 In the national market, the food industry has a high share.
as a user of paper and cardboard packaging and packaging: 62% of what is produced is
It markets for this industry. Another representative demander is the chemical industry.
with a 21%. Packaged products are distributed through wholesalers, who
they act as intermediaries to reach the final consumer.

Due to the physical characteristics of this type of EyE, the importation and
indirect export has a significant influence. Most of the products
Imported and exported goods come contained in paper and cardboard containers or packaging.
For imports, the packaging remains at the wholesale centers or companies.
retail and packaging are directed towards customers. According to background
Sector-wise, it is estimated that nearly 50% of the production of corrugated cardboard is used.
in the export of products while the equivalent of 20% of the production
enter the market through the importation of products.

For the above reasons, it is estimated that the available paper and cardboard EyEs will finally

In the domestic market, they amount to approximately 438,099 tons.

In the country, there is a recycling market for paper and cardboard containers.
well developed, where mainly are found:

Recovery companies

• SOREPA
• RECUPAC
• Industrial Recyclables
• Others: formal and informal companies that collect paper and
cardboard and sell it to large recyclers.

Processing companies

• Cordillera Papers: primarily processes recycled material that

Sorepa sends. With this, it produces kraft paper and cardboard. It is estimated that

captures 90% of the packaging of paper and cardboard.

• Pacific Paper Mill and Paimasa (Isla de Maipo Papers).
• Forestry and Paper Company Concepción.

According to information provided by the companies, it is estimated that the year

Since 2009, various collection points have gathered and sent for recycling around
355.950 tons of this waste This allows us to estimate that 81% of the EyE of
paper and cardboard are currently recycled, and the difference (82,000 tons) is allocated to
landfill, dumps or unknown destination. Additionally, it has been determined
that there is a flow of imported recycled paper that enters the country to be
2.1.5 Marketing/recycling channels

[Link] Paper and cardboard

Figure 2-5 - Balance of the management of paper and cardboard at the national level.

In summary, considering all the previous data provided about the

In the sector, the paper and cardboard EyE subsector has made significant progress in management.
of its waste.
2.1.6 Companies in the packaging sector

It is estimated that the Chilean packaging and packaging sector is composed of

approximately 505 companies, most of them from the packaging subsector

of plastics (approximately 250). It should be noted that no less part of the
companies recorded do not have as their only item the manufacture of packaging. This
allows several companies to have sporadic transitions into the packaging sector,
registering cyclical income and expenses according to the convenience of the business of the
containers. The following table attempts to provide a quantity that represents the
companies that have a permanent presence in the sector.

Table 2-12 - Number of companies by subsector

Subsector Companies
Metallic 25
Glass 5
Paper and Cardboard 84
Wood 25
Plastics 250
Multicomponents 16
Suppliers, equipment, and supplies. 100
Total 505

Clearly, corrugated cardboard is the most important segment of the subsector.

where there are productive facilities with cutting-edge technology in companies that
they operate in the country. It is noteworthy that the main input of the subsector is papers of the type

kraft and waves, with all their variations. Additionally, and by deduction, they are also
relevant inputs such as adhesives, varnishes, inks, and coatings.
the subsector has always experienced growth rates close to 5% to 10% annually. It is said in the

In the sector, it is rare for this subsector not to

grows. It should be noted that a significant part of the demand comes from sectors
horticultural, salmon farming, and wine exporters, all with broad
future growth prospects. Where it is estimated that there should be an intervention
It is about the application of techniques to improve the printing and presentation of boxes. The
pre-print technologies are not yet widely applied as they are in
advanced countries. Where there is another vacant field is in packaging for products of
luxury, those that are already being offered by the local industry such as, for example, the
fine wines, specially flavored chocolates, prepared agricultural products
organic, and in general everything related to environmentally friendly packaging,
among others. These products are traditionally packaged in boxes or containers of
segments are in a downward trend. The cause of this reduction is
primarily due to the permanent replacement of these containers with alternatives in
plastic or corrugated cardboard. If it weren't for the segments of pallets and barrels, this
The subsector is at risk of being minimized.

[Link] Diagnosis of the current waste management in Chile

Within the current management of paper and cardboard waste, it is necessary to

to highlight the high recycling rate at the national level. As has been mentioned
previously in this chapter, there are already companies dedicated to the collection of these
materials, as well as productive companies that use it as raw material in their
processes. The direct management actions of manufacturing companies, regarding the
material recovery, aimed at recovering the waste to return it to
use as raw material in similar processes, depending on the lower cost that is
generate by recycling the material instead of using virgin raw material, currently under a
voluntary scheme.

Among the major recovery companies, the following can be mentioned:

SOREPA, a subsidiary of Empresas CMPC, was created with the mission of developing the
market for the collection of paper and cardboard, in order to recover them for recycling,
greater proportion of these elements. Collect used papers and cardboard boxes to
be recycled and reused as raw material in the various CMPC factories. Its
equipment includes electronic scales, balers, choppers, and a line of
classification that makes it possible to separate materials according to their categories.

The company provides consulting and training to businesses and organizations to

properly using and disposing of your waste, conducting collection in the Region
Metropolitan, Antofagasta, Coquimbo, Rancagua, Talca, Concepción, Temuco, and
Puerto Montt.

The following figure details the flow of

marketing that these EyE currently follow and the current management of their waste.
 Figure 2-6 - Marketing Flow of Paper and Cardboard Waste

[Link] Evaluation and recommendations for the waste management of EyE

in Chile.

According to what has been analyzed in the preceding sections, the subsector presents
currently a high recovery and recycling rate, which hovers around 81% of the EyE
of unused paper and cardboard available in the country, equivalent to almost 356,000
tonnes in the year 2009.
The recovery rate from paper and cardboard of EyE is similar to that which
some European countries present, but the current per capita generation (around 26
kg/capita–year) is two to three times lower.
The projection for 2020 considering a 7% annual growth in packaging.
available and a recovery rate similar to the current one indicates that by that year the
the amount of waste would be more than double. The recovered material is intended for the
producing companies in the same sector (paper industry of the RM, VI and VIII Region),
which have a processing capacity that would allow approaching 100%
of the material generated by 2009. However, by 2020, double the amount would also be required.
current capacity to meet recycling requirements. However, there is
information from companies indicating the existence of expansion projects already
of capacity.

Table 2-13 - Estimation of the waste flow of Eye paper and cardboard (tons)
The recovery companies that are currently operating cover collection at the level
from all over the country, which allows estimating that it is possible to maintain and even improve the rate

of current recycling at some points. When considering the geographical distribution of the
population and companies, more than 80% of the volume of these waste would be located
between regions IV and X.

[Link] Recycling and Composting Program in the Los Lagos region.

Within the framework of the bidding for the collection and extraction of waste
Household and/or Urban Solid Waste, the awarded company 'Gestión Ambiente',
find developing a Pilot Plan for Recycling and Composting in the Sectors of
Volcanoes Valley and Alto La Paloma which consists in the case of recycling, in the disposal.
of differentiated external containers by color, called Ecological Islands, for the
reception of papers and cardboard, cans and tetrapacks, glasses and plastics.

In the Lakes region, there is a company called 'Cleaning the South EIRL.'
It is a Chilean company with a presence throughout the national territory and headquarters.
located in the city of Puerto Montt, Los Lagos Region, dedicated to comprehensive recycling
of waste. It has human teams and specialized machinery for recycling.
and execution of industrial disassembly projects of structures.

2.1.7 Strategic Analysis

In order to correctly formulate and apply the strategy, information is needed.

relevant, derived from the analysis of the internal environment in order to determine what its
strengths and weaknesses, as well as the external environment that will determine what they are
opportunities and threats faced by an organization.

Literature presents different models or methodologies that can be used,

for the realization of these analyses.

A market analysis will be conducted focusing on the PEST analysis and a

internal SWOT analysis, all of this with the aim of determining the variables that may influence
in the project, the strengths and weaknesses we can find along the way.

[Link] PEST Analysis

The PEST analysis is a tool that allows us to identify all the

elements that make up the environment in which the organization operates. In
In general terms, this type of analysis identifies the factors of the general environment that
They will affect companies.
 efficiency of purchases and public procurement. Reveals the management role
of supply in the global management of state institutions.
Law No. 20,123 (Subcontracting of services) is responsible for regulating work in
subcontracting regime, the functioning of service companies
transitory and the temporary services employment contract.
Law No. 19.496 (Protection of Consumer Rights) establishes the
relationship between suppliers of goods or services and consumers
considering thus the rights and obligations for both consumers and
for companies. This Law has been amended to LAW NO. 20.555.

In 2010, the Ministry of the Environment was created to replace the

National Environment Commission (CONAMA), with which the protection of the environment
environment and themes such as recycling have taken an important place in the creation of
public policies (Public Consultation for decontamination, regulatory plans
environmental, sustainable heating program, waste management projects, among
others), and also of financing systems for environmental projects through
competitive funds (Environmental Protection Fund), present in the public account
participatory 2015 (reference link).

Health Regulation of Food. DTO. No. 977/96 ([Link]. 13.05.97).

Framework Law for Waste Management and Extended Responsibility of
Producer and Promotion of Recycling – Law No. 20,920.

b) Economic Aspects

The economic growth of Chile in recent years has led to an increase in

household incomes and changes in purchasing behavior of the
consumer. Rising incomes combined with the reduction of rates of
Birth rates have led to increases in both essential and non-essential spending.
of the consumer. Furthermore, Chile has weathered the global financial crisis quite well. It is
first South American member of the OECD and has reduced poverty year after year, thus
such as strengthening its state institutions and the fight against corruption. In
the economy the bank's projection regarding growth is low. The Bank
World cuts Chile's economic growth projection for 2016 to 1.9%
amid a scenario of weakness in copper prices. The World Bank also
reviewed the cut for the estimate for global economic growth placing it at
2.4% compared to the 2.9% forecast in January, while in 2017 an increase is estimated.
2.8% compared to 3.1% from the previous report.

Emerging markets and developing commodity-exporting countries

cousins have difficulties adapting to the weakness of oil prices and others
 The following table shows all the economic indices of the country:

Table 2-14 - Economic Indicators

Indicators 2013 2014 2015 2016

Real GDP growth (% of 4.0 1.9 2.1 2.4
growth
Inflation (% growth) 1.8 4.7 4.3 4.0

Population aged 65 and over ('000) 1,833.2 1,901.6 1,974.8 2,054.4

Population density (people 23.6 23.9 24.1 24.4

per square kilometer)

GDP measured in purchasing power parity 395,878.0 409,751.0 422,422.0 439,518.7

acquisitive dollar international
millions)
Consumer spending 174,234.4 162,954.8 152,167.1 156,050.2
(millions of USD)
Gross income (millions of USD) 217,428.9 201,672.8 187,935.0 192,444.5

El ingreso disponible (millones de 184,371.4 170,100.0 158,320.7 162,005.4

USD

INE source

The unemployment rate during the mobile quarter of March-May 2016 reached
6.8%, with positive variations of 0.4 percentage points compared to the previous one and 0.2
in a year.

The unemployment rate in Los Lagos for the April-June 2016 quarter was
of 3.0% and ranks second with the lowest unemployment nationally. At the national level
reached 6.9%.

In terms of recycling and environmental protection, public spending on protection

Environmental (GPPA) per person in is 8,900 pesos, representing 0.1% of GDP, expecting
future increases in the creation of the Ministry of the Environment and its entry into force
from the extended producer responsibility law.
 The unemployment rate in Los Lagos was 3.1% for the July quarter-
September 2016. Compared to the same quarter of the previous year, it registered a variation
negative by 1.2 percentage points. Compared to the previous quarter, June-August,
registered no variation. The Working Age Population, corresponding to the
people older than 15 years, recorded for this quarter a total of 733,090 people,
with a positive annual variation of 2.3%, equivalent to an additional 16,570 people.
The Economically Active Population (EAP) or Labor Force, made up of the
employed and unemployed corresponded to 420,700 people for the moving quarter of
July-September 2016 and regarding the same moving quarter of the previous year, recorded
a negative variation of 0.4%, decreasing by 1,690 people who are working
I am looking for a job in the Los Lagos Region.

Figure 2-8 - Global growth of the economy and the packaging and packaging sector.

The sector contributes more than 2% of the national GDP, with the global average being among

1% and 2.5%.

Year GDP Sector EyE Percentage of

Eye Sector in
GDP
2006 92.982 1.928,70 2.07%
2007 90.608 2,200.39 2.43%
2008 93.947 2,403.41 2.56%
2009 92.513 2.191,60 2.37%
Table 2-15 - Contribution of the sector to national GDP (millions US$)

Finally, they translate into an increase in GDP per capita.

According to this information, it is expected that in Chile it will go

increasing the generation of waste from post-consumer packaging as improvements are made
macroeconomic indicators.
 Figure 2-9 - Relationship between per capita income vs. Eye and Ear Consumption

c) Social Aspects

In social terms, the recycling industry acknowledges base collectors.

(since the implementation of the new law) to all the people who carry out
collection activities of materials, either in an artisanal or semi-industrial manner, the
what formally generates a labor market that was previously non-existent
recognized.

Currently, society is being encouraged through programs of

government the incentive on environmental care that motivates people to
maintain a pollution-free environment and provide points where the
The population can deposit their recyclable material. This has generated collective awareness.
and the rates have risen to 17% of people who recycle, however, the rest do not
is informed and does not know where to recycle.

Nowadays, there is a high demand and concern for the environment, it is

People are concerned about whether the packaging is eco-friendly and recyclable, but
In addition to being practical. They are available in supermarkets and stores in general.

tens of thousands of products waiting to attract the customer's attention compared to others
from the competition. Many small industries do not have the possibility or it is not profitable for them

Rentable to own departments or personnel to carry out the task of researching, designing and
develop suitable packaging for your products.

More and more, awareness is growing in Chile about the importance of the
sustainability for companies and organizations. Culturally we are progressing
trend and those who do not get involved in environmental issues will be left behind.
Caring for the environment is becoming very necessary for companies. A company
not only does it have to say that it is sustainable, but it must also demonstrate it through actions. It is

for this reason that companies like Coca-Cola have sustainability at their core
corporate strategy to preserve the business over time and co-assist in the reduction
of the carbon footprint that contaminates the planet.

Simple things that are being encouraged in offices nowadays:

Use a ceramic cup to avoid disposable cups.

Use the sheets on both sides and buy packages that are made from paper.
recycling.
Share a car with acquaintances who live nearby to save on fuel.
Turn off electronic devices when not in use to save energy.
Turn off unused lights and use energy-saving bulbs.

A great opportunity for us is all that is still left to be done regarding

To the sustainable and ecological culture in our country, this topic is just beginning.

The culture of recycling summarizes the challenge faced by society in the century.
XXI before the current problems of treatment and disposal of generated waste
In our daily activities, on the other hand, 'recycling' defines the industrial process by
that waste continues its life cycle, becoming raw materials for the
obtaining new products or energy.

Our contribution to the recycling process is essential, as it

It starts with the selective separation of waste at the source, that is, in our homes.
This simple gesture, turned into a habit after the routine, is essential for the
recycling works. As so far our actions regarding waste have been
deposit them in the same trash bag and for the same collection container, the
awareness and consciousness about the benefits of recycling as well as information
and training on how to separate our waste, are basic tools
to change attitudes and create a culture towards recycling.

The changes in habits, aimed at more unrestrained consumption, as well as the

excessive growth of urban centers demands changing behavior regarding
waste refers to, stimulating the responsibility that each one has simply by the fact
to generate waste. Furthermore, not separating our waste is tantamount to
to do it incorrectly, which is why the effort is focused on educating citizens
in the why and in the how together.

Principle of the 3 R's as part of the solution to the problem:

 3rd Recycling, which is the conversion of waste into new raw material and where
we all have to separate, according to categories, the waste we generate to
subsequently deposit them in the appropriate container.

According to what has been stated, we want a recycling material with the value
design addition, becomes an appreciated object for everyday use and generates
awareness of the care for the environment, gives importance and utility to the material
recycling and also encourages thinking "ecologically" by generating ideas with objects
out of use before becoming garbage.

d) Technological Aspects

Nowadays, the local industry is growing and imports have been made from
capital goods including injectors, thermo fusion, molds of
injection, steel matrices, among others to improve the treatment processes of
recyclable material, for amounts that have increased since 68 million dollars in
2010, up to 96 million of 15 dollars in 2014 only in the plastics sector, coming from
mainly from Italy, Germany, and China.

There are also machines that allow for the perfect manufacturing of a container.
in addition to machines that are responsible for reconstructing those post-consumption cartons

to be able to reuse them.

We live in an era where information technologies (IT) have an impact

in every area, becoming a motor of social and also economic development.
I would like to emphasize this, because your role is key, particularly in the economy.
digital age we live in today, where its participation will only continue to grow.
exponential.

IT directly favors the growth of SMEs, making them more efficient

its processes and improve the productivity of our economy, in general. This is why
that for the past two years CORFO, through the Smart Industry Programs,
he is alongside ACTI and other industry representatives, working on various
sectors where technology is undoubtedly very influential.

Corrugated cardboard is a material that has historically been used for the
manufacturing of packaging and boxes, it is made with 3 layers of glued paper
between each other with corn starch, the rigidity of the cardboard will be given by the resistance of each

one of the roles and the structural contribution that the interior wave provides.

The technology to manufacture this type of products is constantly innovating.

and offers new alternatives to improve and optimize their processes.

Industrially, the production of boxes requires 'Flexo' machines.

 In the very process of 'conversion' (turning a cardboard sheet into a box), it has
There have been a series of technological advances that contribute to optimizing, speeding up, and adding value.

added to the product, such as the incorporation of UV Varnish to the printing

flexography, the incorporation of metallic inks, coated papers for better
finished, advancements in laboratory equipment technology for studies of
material resistance, creation of new types of cardboard, etc.

Before the industrial process, corrugated cardboard companies create samples of the
product in 'Cad-Cam' machines, which simulate the die to confirm that the
The measurements and folds are in accordance with what was requested.

From these viewpoints, there are two alternatives for the creation and
manufacturing of products in corrugated cardboard.

e) Trends

Recycling is the process of converting unused materials, or those that could

to become landfill waste, into material for the production of new products.
This reduces the amount of waste that ends up in landfills, as well as the matter.
additional premium to produce new products.

Chile produces 16.9 million tons of waste per year. Each Chilean produces
an average of 384 kg of household waste per year, totaling around 6.5 million
of tons, of this figure, only 10% is recycled. According to the Ministry of the Environment
Environment, in Santiago 2.7 million tons of waste are generated per year and only the
13% is recycled. Of the 16.9 million tons, 10.4 million are produced by
the industries. The amount of waste produced by Chile is higher than the average of the
countries of Latin America and the Caribbean, estimated at 230 kgs. per inhabitant per year.
That is 154 kgs. less than us Chileans. 50% of the waste is of origin.
organic, a matter that implies that these waste come from fruit, vegetable or from the
gardens. Thus, to create compost, these waste materials should be separated at the source, it is
to say, from their own homes. As the population grows, increasing the
industrial production and early waste valuation rates are clearly growing
the amount of waste generated in our country

Recycling, whose aim is to process a product that has already been used to obtain a
raw material or a new product has allowed for the search for other manufacturing formulas
different from indiscriminate logging, in the case of cellulose factories. Avoiding the
disappearance of millions of native specimens.

f) Environmental

A very common waste in any home is cardboard. It can be found in

two cubic meters of landfill, 140 liters of oil, 50,000 liters of water and the emission
900 kilograms of carbon dioxide.
In light of concerns about climate change, recycling and energy saving are
keys, which makes this scenario a significant challenge for many
entrepreneurs. Among them are the designers and producers who join the
search for sustainability, through the use of cardboard for design and creation of
furniture. Thus, a trend is born that grows and shapes each day as an option
important for sustainable design.
Today, many share a taste for organic products and/or
reciclados. Cuando éstos demuestran ser totalmente innovadores, dejan de ser parte de
a responsible action and become more attractive to the consumer.

Management alternatives are based on the hierarchy of options for handling.

of the waste, which considers:

Prevention
Reutilization
Recycling
Energy valuation

Prevention

It can be carried out using clean technologies, eco-design, or production.

efficient and consumption guidelines. The paper and cardboard industry has made efforts to
reduce the use of raw materials, and in the last 15 years has achieved savings of up to
30% in the manufacturing of corrugated cardboard boxes and multi-component packaging
(keeping the value of the resistance).

Reuse.

Paper and cardboard packaging is generally not reused, except at a local level.
domestic.

Recycling.

Paper and cardboard are recyclable products that can be reused multiple times.
sometimes by the packaging industry. Recycling these materials helps to reduce
the amount of waste that ends its life in a landfill or sanitary fill. Furthermore,
Every time one ton of paper is recycled, it avoids the need to cut down, on average, 17 trees.
trees. Finally, using paper waste instead of virgin wood fiber to
manufacturing new paper reduces energy and water consumption and decreases the
[Link].1 Demographic Background Region of Los Lagos

According to information from the 2002 Census and its estimated projections, the

the population of the current Los Lagos Region amounts to 716,769 inhabitants, equivalent
4.74% of the total population of the country, which translates to a density of 14.75
inhabitants per km2. In the period between the censuses of 1992 and 2002 the
the population of the Los Lagos Region grew by 13.1%, a figure almost identical to
population growth in Chile of 13.2%. This population increase has
territorially manifested in quite an unequal way, with Palena and Osorno
growing 30 below the average (1.2%, 6.9% respectively), while in the same
intercensal period the provinces of Chiloé and especially Llanquihue show
increases well above the average (18.7% and 22.4% respectively). This
the situation coincides with the economic performance of the different provinces,
focusing precisely on the greatest population growth in those areas where
those more dynamic economic activities are based. It is a Region with
a fairly young population, with more than 50% of it under 29 years of age, range
in which male participation is higher (52.1%). In contrast, in the group of
In the age group of over 65 years, it is observed that the proportion of women is higher.
according to the projections and estimates of the population, based on the 2002 Census,
the projected average annual growth rate for the period 2005-2010 is
1.01%, with a crude death rate of 6.11 per thousand and a global rates of
fertility equivalent to 2.02 children per average woman. Reductions in fertility
such as mortality are factors that help explain the trends in growth and
the evolution by age structure. Thus, according to the projections of the INE, fertility
would drop from 2.08 children per woman in 2000-2005 to 1.92 in 2015-2020. Currently, the
life expectancy at birth in the region is 76.08 years, with the projected for the
período 2020-2025 de 78,08 años. Uno de los componentes más significativos de la
the same is the Infant Mortality, which would decrease from 9.38 per thousand live births to 6.26 per

mil.

Exports of the Los Lagos Region

Regarding the destinations of regional exports, in recent

in recent quarters, there has been a trend towards diversification, which, although nascent,
represents an opportunity to expand the destination markets of our
exports, traditionally oriented towards the markets of Japan and the USA.
 1) Growth index of the Exporting Food Industry

Figure 2-10 - Growth Index of the Exporting Food Industry

Regarding the branches related to natural resources, and especially the

Industria de Alimentos, es posible apreciar una importante tendencia al crecimiento, que
has pushed the indicators of total exports.

Sectoral exports of Chile and the Los Lagos region

Figure 2-11 - Sectoral exports Chile and Los Lagos region

Index of Physical Production and Sales of Paper and Cardboard Manufacturing
Wavy and Paper Packaging

Table 2-16 - Index of Production and Physical Sales of paper and cardboard

Source: SOFOFA Studies

[Link] Porter Analysis

Below, the analysis of Porter's five forces is carried out, with which
the degree of influence of each force will be determined.

a) Bargaining power of suppliers

To carry out the approach to people so that users can

contributing to our company is that through the recycling of corrugated cardboard in
Yes, they can obtain a reward associated with this and for this it is necessary to have
with blue containers (cardboard recycling) that are capable of identifying the
residue and that our clients can contribute to our company by adding their
recycling, there are some companies that are able to manufacture these containers and
configure them as necessary, according to standard 3322 that standardizes the
colors of the containers for the different types of waste cardboard is classified
with the blue color of recycling, there are also substitutes like reverse machines but
they are a highly technological, specific tool.

It is also necessary to have suppliers to provide us with supplies.

from corrugated cardboard, there are several companies in Chile that are dedicated to manufacturing

from this cardboard but as I said before according to the background diagnosis
There are not many well-known suppliers in the country in this field.
but there is a recycling commission called CENEM where all the
companies, whether suppliers or manufacturers of packaging. In the city of Puerto Montt.
there is a company dedicated to this packaging industry called Multiembalajes and
Then we have Sorepa, which is a paper supplier. Because cardboard
corrugado es un elemento muy común en el país pero considerando la cantidad de
suppliers both in the region and in the country the bargaining power of the
suppliers are halfway.

On the other hand, programmers are needed to carry out the design of the
web platform, where users can log in, register, consult their questions and
quote, in addition to contacting executives online to provide solutions. Regarding
The demand for these professionals in programming is high; therefore, their power is
Negotiation is Medium–Low.
 The following figure presents all the packaging manufacturing companies.
according to the members of the recycling committee (CENEM).

Figure 2-12 - Packaging Manufacturing Companies

Source: CENEM

b) Bargaining power of customers.

Although there are many companies dedicated to the production of packaging.

We want to provide customers with an innovative packaging solution that they can
help small and medium-sized enterprises. Nowadays there are many companies that
They need packaging production to sell their products, in addition to the
companies that are dedicated to courier that constantly need packaging for
transport. There are also companies that are dedicated to exporting abroad and that
They need secure packaging. In this type of clients, the bargaining power is medium.
since although the companies that need packaging and wrapping are infinite in the
city there are also several companies that are dedicated to this. But also like the
The business idea complements the idea of recycling, customers are an important part.
from waste producers, therefore, there is a large number of users
potential individuals willing to recycle, especially due to the campaigns that have been conducted lately.

realizing that they carry the central idea of contributing to recycling. In this type of clients
 Taking into account what was proposed, we can assume that there is a power of
Negotiation medium of clients in the market.

c) Threat of substitute products.

Our substitutes are in paper and cardboard product companies, those

companies that design boxes and envelopes based on cardstock, also for companies
plastic producers.

In terms of recycling, there is no exact equivalent product in the market.

to the recycling platform that is intended to be delivered to the client, there are several companies

substitutes in the industry, for example: clean points, private groups

collectors, waste deposits, among others. Even though they are strongly
positioned because most are located in strategic points that are easy
scope, there is no awareness of recycling in our country nor much less a
tool that directly compensates the user for recycling.
the industry itself does not face strong threats from substitutes because, despite the
the existence of some, the offer is not complex enough to encourage use
of recycling platforms. That is why there is a low threat from this force.

d) Threat of new entrants

There are significant barriers to carrying out this type of projects since the
investment in terms of production costs in the first years is high and if we want
focus on recycling to emphasize reducing costs, it is necessary to generate a
a considerable flow of material must exist in order to
make the project profitable through the waste accumulation system (to be up to
target audience reach). However, for companies with a long track record in the
market, this investment can be part of a process of renewing alternatives of
recycling and they could perfectly focus economic efforts on carrying it out, because
Therefore, the threat of new entrants or competitors is medium-high. In addition
Considering that the paper and cardboard industry is growing, it is a market
attempt even though there may be several barriers that limit access.

First of all, the capital requirements needed to enter this

businesses are huge, although the product itself is low cost, the infrastructure in
Fixed assets require investments that not every company can make.
Additionally, new entrants need to finance large campaigns of
marketing and managing inventories of a considerable size, conditions without the
that no competitor could survive. Considering the above, it becomes evident
that only multinational companies like the ones mentioned could enter the
 1) Intensity of rivalry

There are several companies in the country dedicated to the production of containers.
cardboard, box the company has a market segment to which they dedicate themselves. But we can
It is said that there are several producers of corrugated cardboard packaging, so the
the intensity of rivalry is high.

High initial investment

It occurs when the business requires a large initial capital to operate.

efficiently. For example, in the case of packaging companies, the production of
a large amount of packaging often keeps small competitors out. This is because
this reason is that the initial investment in terms of production costs is large.

2) High differentiation of a different product

If any of the competitors in the sector have a very good product

positioned in the consumer's mind makes it very difficult to compete. That is why it should be
create differentiated products in terms of packaging to be able to compete in the
market.

3) Lack of experience in the industry

Specialization and real experience are key factors for success. To launch oneself
Without the proper preparation, it can hinder access.

Porter's Forces Conclusions.

Power of
negotiation
from the clients
Media

Threat of Competitors
Threat of
new
starters
Existing. substitutes
Under
Medio
High
Business model

In this second stage of the chapter, the business idea will be described, in addition to
It will present a business model with the main aspects, strategies will be created.
del negocio para concluir con el plan de marketing y estrategias comunicacionales.

2.2 Description of the Idea

The business idea is based on creating a company dedicated to production and

manufacturing for the marketing of packaging and packaging derived from cardboard
corrugated but in the same way within the logistical process that entails this
pueda ser reutilizado entregando el mejor servicio a los clientes, junto con las más altas
quality and hygiene standards. The goal is to provide the best packaging service in
Regarding boxes and envelopes providing strategic solutions for this our company
will be dedicated to providing consulting services to companies that need packaging, creating a

packaging system for the packaging of your products. The general idea of this
the project is the design of original and creative packaging, with materials that can
to be reused over time, as is the case with corrugated cardboard, for this also
it is to consider the platform industry that aims to incentivize and
reward for recycling in the future through recycling machines and
the containers so that the clients themselves can contribute to this process. This
it is a service that can be offered to small or medium-sized businesses that are starting out in

the export or for those companies that use this type in their day-to-day operations
packaging to market their products, and they are unable to have staff available
dedicated to researching the types of packaging they will need for their products
meet the demands of the buying countries and successfully enter their
markets, this is why in addition to manufacturing our products we want to provide
advisory services to companies.

Within the platform system, we will have the containers where the
clients/consumers will be able to drop off the cardboard they no longer use and afterwards
reuse this cardboard with special machines. Together with the research
we can say that corrugated cardboard is the most used element for
containers and packaging, and it is also a more ecological element since it does not have

toxic components, and this allows it to be reused, and for this there are
machines that can help produce cardboard boxes during the process
corrugated.
Strategic statements.

Strategic definitions are a tool that provides information about

the guiding axes of the work of an organization and are obtained from a
process of Strategic Planning or a simpler diagnosis process,
analysis, reflection, and collective decision-making regarding current activities. The mission
and the vision is based on what we want to do today and what we want to be in the future
as a company.

2.3 Misión y visión de la empresa.

Mission

We are a packaging and wrapping production company, delivering solutions.

strategic and profitable for our clients. Contributing sustainably to the environment.
environment through the use of recyclable and ecological materials.

Vision

To be the largest packaging producer at the regional level in the medium term,
and position ourselves in the market for our quality and recycling seal.

Values

Respect, Commitment, Responsibility.

2.4 SWOT Analysis

The SWOT analysis, also known as FODA or DOFA analysis, is a

methodology for studying the situation of a company or a project, analyzing its
características internas (Debilidades y Fortalezas) y su situación externa (Amenazas y
Opportunities) in a square matrix.

Fortresses

Skilled personnel in search of new opportunities that help the

constant research into new forms of packaging and wrapping, for this we
it has strategic lines of training programs through the
organization of CENEM (Center for Packaging and Packaging of Chile) and SENCE.
Quality of the products manufactured through the processes involved in
Weaknesses

Cardboard is perceived as a weak material, it is easily damaged and must be

worked carefully not to damage its structure therefore creates distrust
in the clients.
Manual handling: risk of falls from low heights.
The cardboard absorbs moisture and loses properties.
Few machines in the factory which produces a slower process in the
delivery of the orders.

Opportunities

Grow in the market and position ourselves first in the region and then in the
country as a packaging manufacturing company thanks to our seal of
recycling and quality in packaging.
Innovate in the design of different types of packaging made from cardboard
covering the client's requirements.
Given its capacity and ease of recycling, cardboard does not generate waste (if it
execute the complete recycling process), it can be recycled several times and with
we can reuse cardboard thanks to the machines available in the market
exists.
Growth of companies in the market that need packaging and today in
Today, outsourcing is hired for the packaging solutions for their products.
Variety of market segments we are targeting.
Create strategic alliances with other companies in addition to joining the committee of
corrugated cardboard and recycling like CENEM.
Financial risks in the economy.

Threats

There are many cardboard packaging factories in the region and in the country that
they encompass a segment of large companies.
Stagnant economy in the country.
The entry of new packaging companies into the market.
 Fortresses Weaknesses

They make the most of the Cardboard is perceived as a material

resources in recycling. weak.
Staff Training Few machines in the factory what
Quality and Control. produce a slower process in the
delivery of the orders.

Opportunities Threats

Growth in the market and Lack of financial resources.

company positioning. Customer distrust
Strategic alliances. High competition in factories of
Business growth in the packaging.
market that need New Competitors.
packaging

Figure 2-13 - SWOT Analysis Summary

Value chain

The SWOT analysis is justified through the value chain.

The value chain is a theoretical model that graphically represents and allows for the description of the

activities of aorganizationto generate value for the end customer and for the company itselfcompany.
Based on this definition, it is said that a company has a competitive advantage over
to another when it is able to increase the margin (either by lowering costs or increasing
sales). This margin is analyzed, of course, through the value chain.
fromMichael Porter, concept that he presented to the world in his 1985 book, "Advantage"
Competitive.

Figure 2-14 - Value Chain

The proposed value chain for the company will be the following and will include
two types of activities. It will be proposed since the company is not yet operational
Process of operations

a) Selection: A visual inspection of the necessary materials will be conducted.

for production, that is, of the cardboard sheets and the cardboard
corrugated.
b) Sample taking: A sample of the cardboard will be taken to determine the thickness.

and the size we will work with.

Primary Activities

Internal Logistics
In order to produce this product, the main input that is
What is needed is cardboard, for that we will need cardboard sheets and corrugated cardboard.
rolls. For this, orders for these materials will be made in economies of scale.
searching for the best suppliers who can supply our company, the idea
make sure that materials are not missing at the time of production.

b) Operations
We will have machines that facilitate a quality production process and
quick that they are always in operation. Inside the operations will be everything
what is required for the production of boxes as well as their cutting and gluing.
c) External Logistics
In external logistics, we will have the processing of orders from the
companies for the production of this will be handled by our sales executives,
secretary and general manager who will start taking orders to conclude with
a production plan for the company.
d) Marketing and Sales
Here will be our sales forces, for this a plan will be created
marketing that will consist of advertising and campaigns to attract and retain customers.
e) After Sales Services
We will have excellent after-sales service where we will respond to the
problems of customers quickly and we will provide solutions in a timely manner
fast.

Support Activities

f) Supply

We will agree with the suppliers on the order and the arrival of the supplies.
required in the production process. For the storage of raw materials
it will have a suitable warehouse for their maintenance, and it will also be used
the inventory system “last in, first out”, for better inventory management.
 h) Human Resources

The necessary staff will be hired to carry out the production process.
should train the personnel for the correct operation of the equipment, as well as in the
product manipulation, for that we will have a training plan as well as
also with a constant investigation of the production of corrugated cardboard in the
country for this we will rely on strategic alliances with CENEM and the Committee of
corrugated cardboard.

i) Infrastructure

For the operation of the company, there will be a financial plan, in addition to
to have a factory that has a large area for production and handling
the products. We will have a monthly planning of the company's activities,
a production plan and a cost system. As well as the analysis of the
investment and financing for the company.

Conclusion SWOT Analysis

In conclusion of our analysis, we can say that we are a

relatively new company that is going to enter a market where there are
companies dedicated to the same as us, but we have an advantage which is
to innovate and provide strategic solutions to our clients, one of our strengths
to keep the staff trained and informed about safety, quality, and systems
In packaging, another of our strengths is that we promote recycling, therefore
We are going to reuse the material that has been damaged. As a weakness, we can say
that cardboard is a somewhat weak material and must be handled very carefully
that's why the processes require a bit more control, this generates distrust in the
clients whose products are not well packaged and do not provide safety.
We have the opportunity to grow in the market, but every day there are more and more
companies that are entering the market and exporting their products to others
countries where it is necessary to have a good packaging system. In threats
We must say that there are several companies dedicated to marketing and
manufacturing of corrugated carton producer and they are factories that have been in operation for many years

the market, but we can also say that they already have their companies and are
consolidated because they focus on larger productions from companies
profitable. It is worth noting that we have compiled the SWOT analysis from the chain of
value shown in the annex.
CANVAS business model

A business model describes the logic of how an organization creates, delivers,

and captures value.

Key Partners Activities Proposal of Relationships with Segment

Factory of keys value clients clients

machines. Promotions. Companies

Salmon farms
Company of Maintenance of Innovation Information about
mantenimiento machines recycling Industry of
Differentiation companies
of machines. Search y Communication exporters of
loyalty of Closeness y with the client.
Companies Access fruits.
clients
transporters Solutions Industry
Marketing practices of Food.
Municipalities of the material from packaging for
Committee of packaging your products. Companies of
cardboard drinks
Logistics alcoholic
corrugated. (Wines and Spirits)
Resources Channels
CENEM keys Clients:
Machinery Companies with
Social Networks
Web Platform green stamps.
Web Page
Elements of Companies
Manufacturing Physical Points affected by the law
of
Assistance y responsibility
maintenance of extended of
the machines. producer (law of
recycling
Companies of
Messaging services
(Courier
National

Companies of
Food.
Companies
exporters.

Cost structure Sources of income

Fixed Costs: Rent, maintenance of Sales by production
machines.
Strategic alliances.
Variable Costs: Salaries, Costs of
Recycling.
production.
Table 2-17 - CANVAS Business Model
Competitive Advantage

From the analysis of the competitors, it can be said that the joint platform of
this project involves in the recycling process, the direct benefit to the
consumer, beyond the satisfaction of contributing to the care of the environment,
what is part of the mission of each of the recycling companies that make up the
industry, the advantage is being able to provide added value through recycling to the
production of containers and various packaging with ongoing research and
innovation in these, is to create security in the packaging of their products.
Our competitive advantage lies in that, in addition to producing, we will help the clients.
in the way of packaging your products.

User/Customer analysis.

Two Consumer/Client segments are distinguished within the market: General Public and
Companies.

Among the companies we can focus on are the companies dedicated to

shipping of packages, producers and exporters of fruits, liquor companies
and wines, salmon farming companies, and companies in the food sector.

It is worth noting that this business proposal aims to encourage the

companies that have or do not have active recycling processes, to join this
red in order to seek a green image and act in a socially responsible manner
with the cleaning of the environment. In that order, they will be called Clients and will be all

companies willing to add recycling strategies as social responsibility

business in its activities and to companies that need some type of packaging
in their products as food companies or exporters of products abroad.

2.5 Marketing Plan

2.5.1 Objectives of the marketing plan

Achieve a 5% increase in annual sales according to the sales estimate.

real
To be among the top 5 in the top of mind of brands driving recycling.
the region.
Be number 1 in the top of mind packaging brand in the area.
4. Achieve that 1% of our target market associates the company with recycling and
quality.
5. Market leadership, in order to stay on everyone's lips and customer loyalty.
 Among our global market, we can start with companies in the industry.
food and salmon farms, as well as the companies that export products and
that are present in the region. National and international courier companies and
companies in the salmon farming industry. Also in accordance with the research conducted
We can say that there are 55 retailers in the Lakes region, which makes us want to...
to encompass that market.

The purpose of our target market is to achieve a high volume of sales.

By evaluating the population and potential customers of Puerto Montt, we will be able to determine which

is our target market. The target and potential market are small and
medium-sized companies for the marketing of salmon, producer and importer of
fruits, alcoholic beverage companies such as producers of wines and spirits.

Corrugated cardboard boxes

Consumer market %

Fresh foods and 52

frozen

Processed foods 16

Alcoholic beverages 5

Others 28

Table 2-18 - Consumer Market for Corrugated Cardboard

The purpose of our target market is to achieve a high sales volume.

By evaluating the population and potential customers of Puerto Montt, we will be able to determine which

is our target market.

The following tables present the total population of the country and of the regions.
defined also by social classes.

Table 2-19 GSE in the main cities of Chile

TOTAL POPULATION OF CHILE IN 2005

TOTAL POPULATION 16.136.137 100%

MEN 7.906.707 49.0%
WOMEN 8,229,430 51.0%

ESTIMATION OF G.S.E. IN 16.136.137 100%

CHILE
GSE: ABC1 806.807 5.0%
GSE: C2 2.517.237 15.6%
Product definition

As for the definition of our products, we will focus on different

categories creating a line with a variety of products for the market achieving
meet the needs of each company regarding packaging, also
We will work according to the client's requirements. Our products will be created
according to the best design and quality.
The development of a packaging and wrapping system is carried out following a
methodology that consists of three fundamental phases and within each of them, in
function of product characteristics, distribution cycle, etc. can be
contemplate different possibilities. This methodology is shown in the following chart:

Figure 2-15 - Methodology of a packaging system

Diagnosis of the Packaging System

The packaging diagnosis is carried out in order to analyze the

current situation of the company regarding the packaging and packing used,
taking into account the product requirements as well as those derived from its cycle
of distribution among others. As a result, conclusions are obtained and
recommendations for the improvement and optimization of packaging and containers, as well as
for its management and adaptation to the requirements of the product and its environment
distribution.
 Figure 2-16 - Scheme of incidents and risks in the product life cycle

The added value of our products will primarily be sustainability.

as a concept and culture to be integrated into people's habits, but also
innovation and strategic solutions to customer requirements in terms of
new packaging and containers. The sustainability of products is a trendy topic
nowadays, as well as the care for the environment. We want to educate our
clients and the market in general about the importance of recycling, reducing, and reusing and
above all guide companies on the best type of cardboard packaging they can use
to use, with cardboard being one of the elements with the least toxic components and with a
easier recycling process for reuse, also because they can be created
infinite packaging products, which allow us to continue innovating.
According to the market research conducted, we have gathered that 40% of the
Surveyed individuals find design in general important, and for 60% it is very important.
safety in packaging.

On the other hand, according to external research related to the project, several were generated.

statements through which we find the following Insight (internal vision)

People perceive design as a reflection of personality.

Value proposition

Our value proposition is related to recycling, innovation

permanent and the differentiation regarding companies in the same field, although we know
that differentiation is a concept and a strategy that is harder to achieve,
Considering that there are several factories in the market that are dedicated to design
packaging and corrugated cardboard containers. The added value of the company goes beyond
Positioning

What our company seeks is to create a differentiating and quality factor that
consider recycling as a concept within the packaging industry
delivering strategic solutions to our clients that blend innovation and
quality in corrugated cardboard packaging. It seeks to differentiate itself from its main competitors

competitors generating sustained growth that contributes to social well-being

and the environment.

What 'SERVICE PACKING CORIO SPC' seeks is to generate in the mind of

consumer is 'Less of the same and more of the new' and 'strategic solutions in
packaging" in this way to position itself in the market with a differentiating factor,
creating a different brand that encourages the consumer to prefer us.

The company seeks to achieve a real positioning, entering the ranking of the
companies that are already established in the market.

SALES
CMPC Companies International Paper San Fernando Cartons
Cartocor Smurfit Kappa Imitate
Corruption Chilempack LPS

3% 4%
5%
5%
5%
47%
9%

11%

11%

Figure 2-17 - Market positioning.

At least it is to achieve a positioning of 4% in the first years.

corrugated cardboard market to reach 5% as an established company
when the brand is already known by the customer.
2.5.3 Marketing Mix

Our packaging brand is in the introduction stage of the life cycle.

which will begin with the launch of the company that will have a line of
products based on an innovative idea of recycling corrugated cardboard that aims to
provide packaging solutions for a product to small and large companies
companies, sales will be low at first and costs high, but we aim to
generate demand in the design packaging market where customers who buy
Our products will also be innovative as we intend to cover three
segments of corrugated cardboard consumers. The idea is to incorporate into life
everyday recycling and care for the environment through corrugated cardboard that
have added value through industrial design. Products are a set of
packaging (boxes of all sizes, envelopes) capable of providing security in packaging
from companies but also that they adapt to all types of products. The companies
paper mills offer technology capable of producing this type of material industrially,
With the correct knowledge of the production process, we will be able to transform.
a proposal for creative packaging.

A. Product

Cardboard is a variant of paper, it consists of several layers of it, the

which, superimposed and combined, give it its characteristic stiffness. The corrugated cardboard
It consists of one or more sheets of smooth paper and one or more sheets of corrugated paper.

Single wall cardboard or double-sided corrugated cardboard: this type of cardboard

It is made of two cardboard sides with a fluting in the middle. Agreed.

In the application of the packaging, two types of waves can be used, the most commonly used one is the

wave; whose height is approximately 3.6 mm and a lower wave option

called wave B whose height is approximately 2.5 mm. The resistance to the
The breakage of corrugated cardboard is referred to as burst strength, commonly.
called bandwidth because the values of this resistance are expressed in
Pounds per square inch.

The cover or face allows for two options of paper: The measurements are expressed in

And normally the order for them is the following: 1st. Length, 2nd. Width and 3rd.
High. The boxes close at the base and at the top with flaps; according to the
dimensions of these. The Fins can be simple or common fins, fins
semi-crossed and double or crossed fins. BROWN or KRAFT WHITE PAPER.
The external COVER or FACE, the intermediate WAVE and the internal BACKCOVER or

ON THE CONTRARY, this type of corrugated with a single wave corresponds to the so-called

"SIMPLE ONDA" is the material commonly used in all types of packaging.

Separators: they are accessories for certain types of boxes, whose

Products, due to their fragility or other specific reasons, must be packaged while
separated. They may have a different number of spaces or cells, for
ejemplo: para 4 productos, para 6 productos, para 12 productos, etc. CERCO o refuerzo
perimeter of the box.

Folding boxes: They have a wide range of uses, and are used as
primary packaging of the product or as a secondary packaging, container of
primary packaging.

Figure 2-18 - Example Foldable Boxes

Multipurpose box: It is a box designed from rigid cardboard, it is used for

the transport of all types of products, used for books, computers, files among
others. It is one of the products with which we want to enter the market to compete
demonstrating that it is a highly rigid and quality box that provides security in the
packaging of the products. In addition to a company being a rigid box for different
types of products, this product will be designed with bubble wrap on the inside to
the transport of technological items, documentation, or bottles. It is a box that
se utiliza mucho por las empresas que envían encomiendas a otras regiones del país a
through courier companies.

Figure 2-19 - Example Multipurpose Box

 Product lifespan
Dangerousness
Support capacity: load-bearing, semi-load-bearing, or non-load-bearing

Placement of the product in the container and/or packaging using separators

Value of the product
State of the product (liquid-solid-gas) and nature
Weight / volume (light, heavy, very bulky, etc.)
Forms (regular or irregular)
Dimensions (provided)
Product
Packaging line
Environment
Legislation and regulations
Logistics
Transport and Storage
Manipulation

Two-piece boxes: also called telescopic boxes, base structure lacking.

of upper closure, it can be self-assembling (style 0330) or to be secured with
adhesives or brackets (style 0300), structure lacking a background, just like the case
The front can be self-assembled (0330) or secured with adhesives or staples.
(style 0300).

Figure 2-20 - Example two-piece box

Inner and Master Boxes: The term 'Inner' refers to one or more boxes with the same...

Characteristics To qualify as inner box(es), it must be contained mandatorily.

in another larger box. As its name indicates, this 'Master' box contains
inside it, one or several Inner boxes, keeping them grouped and protected.
Self-assembling boxes

According to FEFCO (European Association of Corrugated Packaging in Brussels)

There are various styles for this type of boxes shown below:

Figure 2-22 - Self-assembling box models.

To better explain the European Federation of Corrugated Cardboard

Manufacturers (FEFCO) is a non-profit organization that represents the
interests of the industry across Europe and address a wide range of issues,
from technical topics to economic issues.

Process of producing corrugated paper

A corrugated paper is a set of machines designed to bring together three,

five or seven sheets of paper to form a simple, double, or triple wall board in a
continuous process.

The 3 main stages:

Wave the flutes and secure to a single cover

Adding the outer lining to make a rigid board
Cutting the plate to the correct size
 The support sheet is given a 'wave'. This undulation is obtained by pressing the
sheet under heat through grooved metal rollers. This operation gives the paper its
grooved shape on the flat side.

Starch is applied to the tips of the grooves, on one side, the outer lining.
and the inner lining are glued to the tip of the corrugated sheet of paper.

This final stage of the procedure consists of printing and then

assignment of dates, folding and gluing of corrugated cardboard for the manufacturing of a
corrugated container.

Different operations are carried out according to the specifications of the

customer and depending on the type of packaging.

The conversion process varies according to the type of packaging.

Whatever the type of packaging, printing on corrugated sheets always

is possible.

El proceso de impresión flexográfica se utiliza comúnmente para la impresión

about corrugated cardboard.

This process uses the"relief printing" the technique is characterized by:

High processing speed

High level of quality
And an excellent quality / price ratio

Printing can be done 'online' or 'offline'

The corrugated cardboard is composed of two elements as shown in the

figure 14 with more details:

The liner
Flute material, (medium)
 Determination of the resistance of a corrugated based on the weight to be held
and its dimensions.

Table 2-20 Determination of the resistance of corrugated cardboard

Our company will initially focus on producing those products of

our target market includes the following products that are
they will market:

Boxes for inner salmons (Referring to kilos and sizes)

Boxes for wines and liquors (Alcoholic beverage market)
Boxes for fruits (20 kilos)

Figure 2-24 - Boxes for fruits.

 Figure 2-26 - Box for bottles.

B. Price

To set the price of our products, we must take into account that the
people are very sensitive when the price of a product goes up, that's why we
we will focus on some pricing strategies such as pricing
prices by lines since as a company we will have different lines of products in
what goes are designed boxes, envelopes, rigid boxes, and simple boxes.
We will have the cost analysis of the manufacturing of each product.
Raw Material:
Corrugated cardboard sheets, vertical compression resistance of 400 kgf/ml.
Glue, cold glue
Machinery.
Labor:
Manufacturer of the plate, production matrix.
Workers
Distribution:
A distribution cost will be added to the design and exhibition stores.
Freight from the manufacturing company.

Freight from the attached workshop.

Next, we will display a table with the price rating according to the
recycling.
RECUPAC PRICES SOREPA PRICES
With Withdrawal Without Withdrawal

Diary $ 20 White 1 $ 150

Cardboard $ 70 White 2 $ 125
Mr. White $ 90 White 3 $ 71
Mixed Current $ 20 Cardboard $ 38
Special Mixed $ 45 Classified 2 $ 20
Classified 1 $ 40
Diary $ 45
Duplex 1 $ 21
Duplex 2 $ 29
 Product Price
Inner Master Box $800
Box for fruits (20 kilograms) $690
Box for wines and spirits $480
Multipurpose Box $820
Special Dates Box $370
Table 2-22 Product Prices

C. Plaza

Initially, the products will be sold at the factory where we will have our
sales offices and we will be able to receive our clients who will be attended by
our sales executives. Later on we will be able to create our own
brand of containers and sell them in some stores, where we will be charged a percentage
per product sold.
It is also necessary to be present as cardboard collectors based on
recycling, for this we will install blue containers at some physical points and
strategic where a large amount of cardboard is used to then be able to return to
reuse them.
The company will be located in La Vara Business Center, located at Km 3.5
road to Alerce. Modular wineries of a minimum size of 390 m2 of winery + 72
Office m2, total area of 462 m2. More m2 of warehouse can be added.
office.
The average value is 0.15 UF + VAT per m2 of warehouse and 0.20 UF + VAT per m2.
The business center has parking lots, exhibition area, large
maneuvering yard, controlled access, and parking lot.
Drinking water installations, sewage, single-phase and three-phase connections. Telephony
internet. Galvanized steel structure and cellular concrete fire walls.

Figure 2-27 - Physical space of the company.

 Figure 2-28 - Location of the company.

D. Promotion

Within promotion and advertising, an advertising campaign will be conducted with

the end of attracting new customers additionally to this the launch campaign of
Our promotional brand for this will provide brochures with information about our
company and brand and gifts to retain customers.
As the first means of advertising, we will use social media such as Facebook,
Twitter and Instagram where we will have direct contact with our clients and also
we will update the news and promotions that we will have as a company, also
we will announce our website where customers will be able to contact us and
to learn about the work we do as a company, in addition to requesting your quotes
to our sales executives since we will have a special menu with our
products for active quotes.

Campaigns for special dates (Christmas, national holidays, Easter, etc.):

We want to launch a campaign on special dates where we will design boxes.
specials for each date such as at Christmas where we will offer
5% discounts to our customers for ordering these boxes.
 We want to associate our brand with recycling committees like CENEM.
SOREPA and the corrugated cardboard table that is formed by companies that
they represent about 80% of corrugated production in Chile, we also want
create strategic alliances with corrugated cardboard factories.
The transport of our cargo such as recycling containers will be
designed with our logo with the purpose of communicating and promoting our brand.
Later we want to have staff who will be collecting cardboard.
populations of the region.

Cardboard recycling campaign: We will carry out a recycling campaign for

semesterly to inform people about our company, the work
what we do with the aim of promoting, protecting, and disseminating the use of cardboard
corrugated, highlighting its environmentally friendly qualities, for having a
source of 100% renewable and 100% recyclable raw material.

Sales Promotions and Discounts

We will have the discounts indicated in the Price item. The discounts will be on
special dates where production is high. Additionally, we want to develop a
proposal that rewards people who come to recycle at our points
of sales per gram of recycled cardboard. The sum of these points may be
exchanged for boxes with designs. The weight of the recycled cardboard will be noted and then
will enter a database where our clients will be able to review their status and
the exchanges that can be made through the website. The initial equivalence would be 1
Recycled kg = $100, approx.

Sales Force

We will have sales executives who will help us with customer loyalty
clients and the search for new clients as they will have a portfolio in order to evaluate
the purchasing behavior for this it is necessary to train the staff of the
respective areas to explain the project well, the importance of recycling and link the
brand with sustainability, quality, and respect for the environment.

2.5.4 Communication Strategy

Our communication strategy is based on the fact that we want to be a

a company that encourages recycling and caring for the environment as it is in
our mission is to contribute to a clean environment and the reuse of resources for
marketing strategy that consists of achieving objectives and goals
disposed. The advertising and promotion of the establishment will be done through the different

media
Flyers.

Advertising notices on social media (Facebook, Instagram, Twitter, YouTube)

Discount for large company accounts.

Specialized magazines on corrugated cardboard and packaging of this type to the

clients.

Radio

Communicational Video

As a communication strategy, a communication video will be created for

YouTube and the website where people will be encouraged to recycle cardboard and use
corrugated cardboard packaging, showcasing its endless advantages and conveniences.
We will create flyers and eco-friendly notebooks made of cardboard that will be delivered in the

company launch campaign, as well as advertisements where

will inform about our company, with information on packaging and the products that
we will have as a company.
A personalized magazine will be created that will include types of packaging, guide
of package designs, the standards and newsletters that will be sent to clients
in order to retain them and keep them informed about the company's news.

2.5.5 Segmentation Strategy

With the aim of making marketing efforts more specific, it is

it is necessary to identify more precisely the clients being targeted,
competitiveness and helps achieve better results.

Demographic: Here we can distinguish the generation to which they belong

users (knowledgeable about the recycling system) from 15 to 65 years old, clearly
with knowledge about the use of web platforms.

Geographical: Mainly the recycling campaigns will be carried out in the

lake region, and we will focus on the small businesses that are
incursions into the market of the region.

Psychographic: The only relevant aspect in this type of segmentation is the style of
 Industry
Salmonella
Drinks
Alcoholics
Fruits

Figure 2-30 - Segmentation strategy chart.

The focus of our segmentation is 70% on Inner master boxes for

the market for fresh and frozen products such as the salmon farming industries since
they generate most of the income for us. The second segment is the market for
fruit exports account for 20% of the income and the last segment is from the
alcoholic beverages like bottles of liquor with a 10%. This approach tells us the
segments to which our products are directed according to their consumption in
corrugated cardboard boxes.

2.5.6 Marketing Strategy

The marketing strategy we will use will be segmentation and

differentiation through products, where through a design line, made of cardboard
recycled and recyclable corrugated, we will offer a value proposition with a lot of emphasis
in the sustainable theme, with which our communication strategy will be based on
digital marketing, where we will teach our clients to be responsible with it
environment and optimize resources and make the most of them in order to achieve
high-quality designs for businesses. Our marketing strategy will be
focused on providing our clients with advice on the best packaging for their
products creating in a second stage the design of these containers to their
requirements. In the segmentation strategy we will focus on three markets
potential exporters of fruits (Fresh products industry),
salmon companies (salmon industry) and alcoholic beverage market (wines)
and liquors).

2.5.7 BCG Matrix (Boston Consulting Group)

This model aims to help companies position their

products or business units in the market (UEN: Strategic Business Units)
 The methodology used employs a double-entry matrix (2 x 2) to group the
different types of business that a particular company has. On the vertical axis of the
matrix defines the growth that is present in the market while on the axis
the market share is presented horizontally. Therefore, the business units
They should be situated in one of these quadrants based on the importance of their value.
strategic.

Figure 2-31 - BCG Matrix

Star

The "stars" operate in high-growth industries and have a high market share.
of the market. Stars are essentially cash generators (with some
investment). They are the primary units in which the company must invest its money, already
that are expected to become cows (generators of positive cash flows). Our
The star product will be the Master Inner boxes as they generate greater participation in the
market with a 70% and it is a market in broad growth.

Question

The 'question marks' are the UEN that require consideration.

much more demanding. They have a reduced market share and are in markets of
rapid growth that consumes a large amount of cash. One may incur
in losses. It has the potential to gain market share and become a star,
that would later become a source of income. The question marks do not always
they are successful and even after a large amount of investments they struggle to win
market share can ultimately become dogs. Therefore, they require a lot of
consideration to decide whether it is worth investing or not. In this case our product
interrogante será la caja multipropósito con plástico burbuja ya que es un producto con
should invest in the stars to support their growth. According to the matrix of
growth-participation, societies should not invest in cash sources to
induce growth, they just need to support them to maintain their current market share.
Once again, this is not always the case. Cows are generally found in large
corporations or business units that are capable of innovating in new products
or processes, which can become new stars. If there wouldn't be support for the
cash cows, would not be capable of such innovations. Our cash cow products
they will be the self-assembling boxes and the boxes for fruits, as they are aimed at units of
businesses that are willing to innovate in the packaging design of their products.

Dog

The 'dogs' quadrant has a low market share compared to the

competitors and operate in a slow-growing market. Overall, it is not worth it.
to invest in them, as they generate low returns or losses. But this is not so
categorical. Some "dogs" can be profitable in the long term, or they can
provide synergies with other brands or business units or as defense or
counterattack against competitors' movements. Therefore, it is always important
carry out a deeper analysis of each UEN to ensure that it is worth the
worth investing or not. In this case, our dog product will be the envelopes since if we
Analysis well is a product with lower market share in the corrugated cardboard market.
As a strategy, we will bet on market diversification since we will be
competing in an already existing market but with new products with which
we want to bet on innovation and differentiation. For now, our product
dogs would be the cardboard envelopes since there is a large number of envelopes of other types
of material and they don't add much to the income. Our innovation product is the box
multipurpose and the product that generates the most revenue is the Inner Master cardboard box
rigid corrugated.
2.5.8 Product life cycle

The product life cycle is the evaluation of the products offered by a

company when they are already in the market.

Figure 2-32 - Product life cycle

Our company is in the introduction stage as we are just starting out.

entering the market and therefore our investment both in advertising and in
initial investment is high.
Introduction stage: It is the moment when the product is introduced in the
Market. The sales volume is low, given that it is still not known in the market.
The costs are very high and the benefits are negligible. At this stage, it is very important
investing in promoting the product. It requires a very high cost in advertising and in
initial investment for the operation of the company.
Growth stage: In this stage, sales increase as interest rises.
from the client since customer loyalty is expected and our company already
be known. The benefits start to grow and the product needs a lot of support.
to stay.
Maturity stage: Sales growth slows down and stabilizes at the
market. The product is established and consolidated in the market and the benefits are
highs. But it is always necessary to continue innovating in new products and clients to
no entrar en la etapa declive.
Decline stage: Sales begin to decrease significantly and the
the product is being prepared to leave a normally saturated market. The main cause
2.6 Implementation Plan

The implementation and development plan will start with the purchase of the
corresponding machines to then install them in the factory. To carry out the
approach with our future users/customers we will install the containers for
it is necessary to start with the key activities that are the partnerships and
respective municipal permits.
Then we will begin the second stage of implementation, which is the
creation of our web platform with our corresponding brand. The creation of
social media to better introduce ourselves and have closer contact with
clients.
Once the launch of our company has been given, it is necessary to follow a
direct assessment of people's behavior regarding recycling and our brand,
is to evaluate how our company is perceived by customers and to build their loyalty through
our CRM (Customer Relationship Management) platform which is a model of
management of the entire organization, based on customer satisfaction where we will carry out
a database to be able to retain our customers around their
buying behavior.

2.6.1 Organizational Structure

General Manager
Secretary

Executive Logistics Manager and Resources

of sales Operations Humans

Chief of
Wine cellar

Operator 1

Operator 2

Figure 2-33 - Company Organizational Chart

2.6.2 Job Description

together with the annual objectives and deliver the projections for those goals. Create and
maintain good relationships with the suppliers and workers of the establishment in addition to the

customers to maintain the proper functioning of the premises.

Accounting and Finance: Its function is to carry out accounting matters and
financial matters of the Area, including the control and supervision of annual budgets,
control and monitoring of the collection of fees for rights and services. Coordinate the
development and maintenance of financial-accounting information systems in order to
to register and control the economic events that occurred in the firm and to support management
from the finance department, so that they allow for effective knowledge and evaluation of the

financial behavior. Prepare financial-accounting information statements by

commercial branches, which allow for understanding the results and financial situation of
each of them, relying on a model of responsibility centers. Preparing and
suggest financial-accounting standards and provide advice on these matters and others of a nature
tax to the General Manager. Establish and operate the necessary measures to guarantee
that the accounting system of the Center is designed so that its operation facilitates the
audit of assets, liabilities, income, costs, expenses, progress in execution of
programs and in general in a way that allows measuring the effectiveness and efficiency of spending

federal public. Carry out the accounting of the Center under the terms established by the
Budget, Accounting and Public Expenditure Law.

Operations and Logistics Manager: Achieve the efficient management of all

physical, human and financial resources made available to achieve that the
operational processes are carried out on time and in accordance with the franchise's objectives. Their

essential functions are the analysis of the operational aspects of the company,
participate when required in the analysis of the amount of investment necessary for
reach the expected sales, design and modify work routes to maintain improvement
processes, to know and understand all the processes and the resources that are used, to identify
and inform management of the technical and human requirements,
necessary logistics to achieve their goals and objectives, identification of all the
lines of operation within the company to achieve resource optimization,
conduct quality measurements in the different lines of operation and design
organization of the process according to technical requirements.

Sales Executives: The main tasks of the sales executive are

develop commercial development strategies and sales objectives, preparing graphs
management. Communicate with the general manager and the sales manager. Plan the
sales in new and existing markets. Prospecting the market to capture new
clients. Manage client portfolios. Plan and conduct field visits to clients.
Create proposals, quotes, and subsequent follow-up.
aware that it is running out or which products it has in greater quantity. Receive and
check the products that come in to be sure that what is advertised
In the corresponding document is what is actually delivered. Fill out the
necessary documents that certify the receipt or dispatch of the merchandise since he
he is the direct responsible and thus avoid future claims that something did not arrive
product or that was delivered in excess. Make the respective reports to the purchasing manager.
and sales and to the accountant in order to have the authorization of these. Report to the
logistics department if at the time of unloading detects damage to the products
such as humidity, damaged packaging, infestation problems, missing items or
surpluses. Check that the storage of the products is appropriate.

Operators: The production operator is important to maintain the process.

productive. This will track production and its progress, ensuring
that everything is functioning smoothly and efficiently. They will take the data and
they will keep records of speed, efficiency, and production results. With
this information will suggest changes that could improve the process. The operators of
Production supervises the entire process. Any machine used in the process of
production must be maintained by the operator. This means that he must know how
operating the machine, how to carry out its maintenance and the way to do the
necessary repairs. For example, if a forklift is necessary to
move raw materials from one side of the factory to another, you must understand how
provide fuel to the forklift, drive it and operate its mechanism of
elevation. You should know where your fuses are located and what tools are
necessary to fix any problem.
2.6.3 Remunerations

Below are the salaries of the workers of the

companies conducting simple liquidations, we focus on the indicators of
Previred for the wages of October 2016. It is worth noting that the company pays
monthly gratification and we have contributed to the possible pension funds of each worker (Próvida

In PlanVital, each worker is paid a transportation and meal allowance.

General Manager Operations Manager and

Logistics
Base Salary $1,500,000 Base Salary $800,000
Gratification $ 98.958 Bonus $ 98.958
Total Imponible $1,598,958 Taxable Total $ 898.958
Snack $35,000 Meal Allowance $ 35.000
Mobilization $ 35,000 Mobilization $35,000
Total Non-Taxable $70,000 Total Non-Taxable $ 70.000
Total Earnings $ 1,668,958 Total Assets $ 968.958
Health (7%) $ 111.927 Salud (7%) $ 62.927
AFP ProVida $ 184.520 AFP ProVida (11.54%) $ 103.740
(11.54%)
AFC (0.6%) $9.594 AFC (0.6%) $ 5.394
Total Discounts $ 306.041 Total Descuentos $ 172.061
Net Total $1,362,917 Net Total $ 796.897
Warehouse Manager Secretariat
Base Salary $450,000 Base Salary $ 300,000
Reward $ 98.958 Gratification $75,000
Total Imponible $548,958 Taxable Total $ 375.000
Snack $35,000 Meal Allowance $35,000
Mobilization $ 35,000 Mobilization $ 35.000
Total Non-Taxable $ 70,000 Total Non-Taxable $70,000
Total Earnings $ 618.958 Total Earnings $ 445.000
Health (7%) $ 38.427 Salud (7%) $26,250
AFP ProVida $ 63,350 AFP PlanVital (10.47%) $ 26.250
(11.54%)
AFC (0.6%) $3.294 AFC (0.6%) $ 2.250
Total Descuentos $ 105.071 Total Descuentos $ 54.750
Net Total $ 513.887 Total Net $ 390.250
Workers Sales Executive
Base Salary $400,000 Base Salary $ 320.000
Gratification $ 64,250 Bonus $80,000
Production Bonus $20,000 Sales Bonus $ 20,000
Total Imponible $ 484,250 Taxable Total $ 420.000
Snack $ 35,000 Lunch $ 35.000
Mobilization $35,000 Mobilization $ 35.000
Total Non-Taxable $70,000 Total Non-Taxable $ 70.000
Total Earnings $ 554,250 Total Earnings $ 490.000
Health (7%) $ 33.898 Salud (7%) $ 29.400
AFP PlanVital $50.701 AFP PlanVital (10.57%) $ 43.974
 The company intends to start the first year with 1 sales executive, 2 operators.
In one single shift, they will be hired later to cover the other night shifts.
but for now we will only work one shift of 45 hours from Monday to Saturday. Se
It will start with a General Manager in charge of all administrative tasks of the
company and a secretary. The general manager will be in charge of leading the strategies of
commercial marketing that will also be responsible for the sales executives.
We will have a Operations and Logistics Manager responsible for leading the team of
operations, in charge of the company's logistics concerning purchases and sales and
maintenance of equipment will have a direct relationship with the warehouse manager. A department

of human resources that will be responsible for settlements and hiring of

personal as well as the training of each of them regarding
courses and training that may arise along the way and which will be one of our
fortresses as a company.

Employer's charges

General Manager Manager

Logistics
SIS (1.15%) $ 18.388 SIS (1.15%) $10.338
AFC (3%) $ 47.969 AFC (3%) $ 26.969
SEG ACC (0.95% $ 15.190 SEG ACC $ 8.540
(0.95%
Total $ 81.547 Total $ 45.847
Chief of Warehouse Chief
Remunerations
SIS (1.15%) $ 8.613 SIS (1.15%) $ 6.543
AFC (3%) $ 22.469 AFC (3%) $ 17.069
SEC ACC (0.95% $ 7.115 SEG ACC $ 5.405
(0.95%
Total $ 38.197 Total $ 29.017
Workers Secretariat
SIS (1.15%) $ 5.569 SIS (1,15%) $ 4.313
AFC (3%) $ 14.528 AFC (3%) $ 11.250
SEG ACC (0.95% $4,600 SEG ACC $ 3.563
(0.95%
Total $ 24.697 Total $ 19.125
Executives
SIS (1.15%) $ 4.830
AFC (3%) $ 12.600
SEG ACC (0.95% $3.990
Total $ 397.720
Table 2-24 Employer Charges
Financial assessment

2.7 Financial Evaluation

The financial evaluation of the project will be carried out, taking into account the
income from sales and costs. A cash flow will be conducted with an evaluation over 10 years,
to determine the evaluation criteria (NPV, IRR, Payback Period). With the financial evaluation
We will be able to know, in broad terms, the feasibility of our project in the long term.
calculating the potential income and investments of the company.

2.7.1 Investment Plan

An Investment Plan is a systematic model, a set of steps to follow, with the

the objective of guiding our investments (current or future) towards a safer path.
The investment plan is essential to reduce risks when investing. Those who
If they do not have a well-developed plan, they will have many chances of failing at the hour.
to invest your money.
First, it is important to establish what the expected objectives of the plan are and
What the investment team aims to achieve. We will have two partners who have availability.
of a liquid capital to invest in this project of $30,000,000. The risk to be assumed
from the investing team is conservative. This project aims to
increase the available capital by requiring a minimum return from the team
15% investor on the investment.
The time horizon for evaluating the project is 10 years. The annexes will be provided.
all the respective quotes.

[Link] Costs and Investments

Initially, the costs related to the marketing plan are shown.

to use.

Marketing Plan Costs

The following table presents the budget for the website design:

QUANTITY DESCRIPTION NETO VAT TOTAL

1 LOGO DESIGN. $49,000 $9.310 $58.310
1 LAYOUT AND PAGE DESIGN $179.000 $34.010 $213.010
WEB.
1 DEVELOPMENT OF FORM $29,000 $5.510 $34.510
 The following table presents the budget for the Marketing Plan:

Activity Total Value

Corporate Video $549.990
Entries in Networks $189.990
Social (community manager)
Notebooks $370.000
Informative Flyers $20,000
Total $1,129,980
Table 2-26 Marketing Plan Costs

Initial Investment in Machinery

The initial investment in machinery will be what is necessary to get started.

to operate as a company in the following table the total values of these are shown
machinery and the names, the respective quotes will be shown in the annexes.

Investment Quantity Unit Value VAT Total

HSM Recycler 1 $ 1.665.000 $ 316.350 $ 1.981.350
ProfiPack 400
HSM Recycler 1 $4,765,500 $ 905.445 $ 5.670.945
ProfiPack 425
Yale Machinery 1 $2,350,000 including $ 2.350.000

Machine 1 1,370,000 $ 260.300 $1,630,300

box sealer
made of cardboard

Machine 1 $2,593,500 $ 492.765 $ 3.086.265

sealer
semineumatic
Machinery 1 $19,920,000 including $ 19.920.000
corrugator
Total investment 6 $ 30.999.000 $ 1.974.860 $ 34.638.860
Machinery
Table 2-27 - Investment in Machinery.

Office Expenses

Concept Monthly
Stationery $ 100.000
Office Supplies $20,000
Phone $40,000
Light $100,000
Water $40,000
Other Expenses $ 50,000
Salaries

Regarding salaries, it is estimated that according to the CPI they will grow by 7%
annual.
Cargo Workers Salary
General Manager 1 $ 1.500.000
Operations Manager and 1 $800,000
logistics
Head of Compensation 1 $ 650.000
Secretary 1 $ 300.000
Operators 2 $ 800.000
Executives 1 $320,000
Warehouse Manager 1 $ 450.000
Total 8 $ 4.820.000
Table 2-29 Salaries

Total Investment

The following table shows the total investment of our project.

Concept Quantity Unit Value Total Value

Investigation and 1 $ 262.267 $ 262.267
development
Expenses of 1 $ 1.500.000 $1,500,000
Facilities
Vans 2 $6,500,000 $13,000,000
Creation of 1 $ 500.000 $ 500,000
Companies
Machinery 7 $30,999,000 $ 34.638.860
Website 1 $ 379.351 $ 379.351
Furniture $800,000
Office equipment 4 $629,000 $ 1.258.000
Truck 1 $11,500,000
Fire extinguishers 2 $ 32.130 $ 64.260
Total Inversión Inicial 15 $ 32.039.481 $ 63.902.738
Table 2-30 - Total Investment

Clarifications

The annexes show some of the quotes made for the

project. The concept of investment in 'business creation' includes all costs and
expenses related to municipal permits, licenses, and everything necessary for creation
from the company. The concept of initial investment refers to the principal in an initial manner
to start working. In the office equipment, we consider 2 printers.
($279.000) y 2 computadores ($350.000).
2.7.2 Bank Loan Evaluation

An initial loan of $30,000,000 will be requested to cover part of the

investment for a term of 4 years (48 months) and was quoted at the following banks:

Bank CAE % Rate of Rate of Valor cuota Costo Total

interest interest Credit
Monthly yearly
BBVA 23.40% 1.74% 20.88% $ 968.081 $ 46.467.888
Santander 20,75% 1.53% 18,36% $ 924.957 $ 44.397.936
Bank Chile 19,07% 1.09% 13,08% $ 898.056 $43,106,718
ScotiaBank 21.06% 1.60% 19,20% $ 1.012.712 $ 48.601.025
Table 2-31 Bank Loan Assessment

In this case, we will stick with the credit from Banco Chile since it has a
lower interest rate and the total cost of credit is lower than other banks,
In addition, its APR is lower than those of other credit providers.
The Equivalent Annual Charge (EAC) is an indicator introduced by the Law
20.555 on Financial Sernac, which allows comparison between the different
alternatives offered by providers of financial products or services.
The APR is expressed as a percentage that reveals the cost of a loan in a
annual period, regardless of the agreed term for the payment of the obligation.
In this case, the APR of the loan from the financial institution Banco Chile is
lower than that of other banks.

Amortization

Amortization is the financial process through which it is extinguished, gradually,

a debt through periodic payments, which can be either equal or different.
In the amortization of a debt, each payment or installment that is made serves
to pay the interest and reduce the amount of debt. In the following table, there
show the amortization of our loan evaluated at 4 years.

Balance Quota Interest Amortization

$ 30.000.000 $ 10.102.596 3924000 $ 6.178.596
$ 23.821.404 $ 10.102.596 3115839,7 $ 6.986.756
$ 16,834,648 $ 10.102.596 2201972,02 $ 7.900.624
$ 8.934.025 $ 10.102.596 1168570,46 $ 8.934.025
Table 2-32–Amortization
2.7.3 Demand Estimation

The estimation of our demand will be aligned with our projections for
sales. In the demand estimation approach, we will focus on those
companies that would use our products considering the consumer market
made of corrugated cardboard. For this, we evaluated three possible markets: Exporters and

fruit producers, wine and liquor producers, and salmon farming companies.
The percentage of income that each company leaves according to consumption of
The corrugated cardboard market is presented below:

Sales
Fresh and frozen foods Processed Foods Alcoholic Beverages Others

28%

51%
5%
16%

Figure 2-34 - Potential market graph.

The following shows the approach for estimating our revenues,

three markets are shown that our products will target and with that the
monthly and annual consumption of boxes in a real estimation according to the
research conducted.

Segment 1

There is a producer and importer company of fruits (blueberries) that its

production is presented below:

Export of blueberry fruits

Months Kilos Monthly Consumption
January 296616 14830
February 244970 12249
March 91104 4555
April 15474 770
May 21041 1050
June 4322 216
July
August
 The monthly consumption in boxes for this company varies by month, but the
The boxes we sell are 20 kilos, therefore we calculate the monthly consumption of
boxes according to the kilos and we managed to calculate the monthly box estimate of this
company, according to our annual production we calculate the income at a price
reference of $690 therefore we have the following annual income for the first
año:
Consumption of Revenue
Product Annual Production Price
Boxes Annual
Boxes for fruits (20
33670 34000 $ 690 $ 23.460.000
Kilos
Table 2-34 - Fruit Box Consumption.

BOXCONSUMPTION
Total 33670
December
Noviembre
October
September Export of fruits from
August blueberries Consumption boxes
July Monthly
June 216 Export of fruits from
May 1050 blueberries Kilos
April 770
March 4555
February 12249
January 14830

0 200000 400000 600000 800000

Figure 2-35 - Box Consumption

If we analyze the export of blueberries in the region, we have an estimate.

approximately 6417 tons, that is 6417000 kilos, so the consumption of boxes
it is 320,850 boxes annually. To calculate the total market revenue for this type of
segment we estimate a consumption of a production of blueberry boxes of 321000
per year for a capacity of 20 kilos. Therefore, we have the following:

Consumption Estimate of Production Price Income

boxes of blueberries. Annual Annual
320850 321000 $690 $ 221.490.000

Table 2-35 - Estimated total consumption of fruit boxes.

The annual production of this type of boxes, which are 20 kilos for fruits, is
321,000 boxes annually if sold at a reference price of $690 will give us as
annual income a total of $221,490,000
 Figure 2-36 - Blueberry exportation in Chile

Segment 2

Our second target market is alcoholic beverage producers.

those dedicated to the production of wines and spirits, among these we carry out one
investigation of an artisanal liquor store called 'Dona Guillermina' in the region which we
He said that his production projections for the volume of sales are 1,332 bottles.
months and that their annual projections reach 27,970 bottles.

Annual box consumption Production Income

Price
Liquors Annual Annual
27.970 28000 $ 480 $13,440,000
Table 2-36 - Box Consumption Liquor Company

So in the table above, the annual income that would be obtained is shown.
from the production of 28,000 annual boxes of wine that will be sold at a price of $480
C/unit what would give us annual income of $13,440,000 All this according to
an approximate estimation of the company.

Segment 3

So we have another market segment of a salmon farming company.

who provided us with their 6-month production where we could estimate their annual consumption

of boxes. The boxes used for this type of market are the Inner Master. They
They process 96,000 kg of salmon per day, which is divided into 50,000 kg of filleted salmon and
46.000 kg of whole salmon.
Therefore, for the production of 46,000 kg, Inner master boxes are used of
corrugated cardboard of 25 kilos, then we have a consumption of 1840 boxes in a day.
For a production of 50,000 kg, 2,000 boxes are used in one day. Therefore, in a
 Production
Consumption
Product Annual of Price Annual Income
of Boxes
boxes
Inner Master Boxes
576000 576000 $ 800 $ 460.800.000
25 kilos

Tabla 2-37 - Ingresos por Cajas Inner Master

This is our broadest type of market, which generates the most income for us.
annual and that additionally the market is very competitive regarding prices therefore
our reference price for the sale of these boxes is $800 which generates us
annual revenue of $460,800,000 for the first year.

2.7.4 Estimation of annual revenue growth

The estimated income for the first year is presented below in

consideration of the three segments previously presented.

Product Consumption Production Price Annual Income

of Boxes Annual
Boxes for 33670 34000 $ 690 $ 23.460.000
fruits (20
Kilos
Boxes for 27.970 28000 $ 480 $ 13.440.000
liquors and
wines
Inner boxes 576000 576000 $ 800 $ 460.800.000
Master (25
Kilos
Total 637640 638000 $497,700,000
Table 2-38 - Total Income First Year

It is expected that the production of boxes for each segment will grow every year.

for segment 1 of fruit boxes we are going to estimate a growth percentage

in the production of boxes by 5% where an increase from 1700 to 2000 is considered
annual boxes.

Growth Segment 1: Boxes for 20 Kilogram Fruits

Years Percentage of % Producción Total Precio Annual Income

growth
Year 1 5% 34000 $ 690 $ 23,460,000
Year 2 5% 35700 $ 690 $24,633,000
Year 3 5% 37485 $ 690 $ 25.864.650
Year 4 5% 39359 $ 690 $ 27.157.883
Year 5 5% 41327 $ 690 $ 28.515.777
Year 6 5% 43394 $ 690 $ 29.941.565
Year 7 5% 45563 $ 690 $ 31.438.644
Year 8 5% 47841 $690 $ 33.010.576
Year 9 5% 50233 $ 690 $ 34.661.105
Growth Segment 2: Boxes for Bottles

Percentage of
Years % crecimiento Producción Total Price Annual Income
Year 1 5% 28000 $ 480 $13,440,000
Year 2 5% 29400 $480 $ 14.112.000
Year 3 5% 30870 $ 480 $ 14.817.600
Year 4 5% 32414 $ 480 $15,558,480
Year 5 5% 34034 $ 480 $ 16.336.404
Year 6 5% 35736 $ 480 $ 17.153.224
Year 7 5% 37523 $ 480 $ 18.010.885
Year 8 5% 39399 $ 480 $ 18,911,430
Year 9 5% 41369 $ 480 $19,857,001
Year 10 5% 43437 $ 480 $20,849,851
Table 2-40 - Segment 2 Growth: Boxes for Bottles

Growth Segment 3: Boxes for salmon Inner Master 25 Kilos

Percentage of Production
Years % growth Total Price Annual Income
Year 1 5% 576000 $ 800 $460,800,000
Year 2 5% 604800 $ 800 $ 483.840.000
Year 3 5% 635040 $ 800 $ 508,032,000
Year 4 5% 666792 $ 800 $ 533,433,600
Year 5 5% 700132 $ 800 $ 560.105.280
Year 6 5% 735138 $800 $ 588,110,544
Year 7 5% 771895 $ 800 $ 617.516.071
Year 8 5% 810490 $ 800 $ 648.391.875
Year 9 5% 851014 $ 800 $ 680.811.468
Year 10 5% 893565 $800 $ 714.852.042
Table 2-41 - Income Growth Inner Master Boxes

Total income for the evaluation period of 10 years

Years Annual Income

Year 1 $ 497.700.000
Year 2 $522,585,000
Year 3 $ 548.714.250
Year 4 $ 576,149,963
Year 5 $ 604.957.461
Year 6 $ 635,205,333
Year 7 $ 666.965.600
Year 8 $ 700.313.881
Year 9 $ 735.329.574
Year 10 $ 772.096.053
Table 2-42 - Total Income
 Annual Income
$900,000,000
$800,000,000
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$0
Año 1 Año 2 Año 3 Año 4 Año 5 Año 6 Año 7 Año 8 Año 9 Año 10

Ingresos Anuales

Figure 2-37 - Annual Income

2.7.5 Production Costs First Year

For the first year, the following production costs are presented:
It is worth noting that what is most commonly used for the manufacturing of these boxes are the sheets of

corrugated cardboard where a box is made on each sheet, besides that you are
Sheets will be purchased according to the number of boxes we manufacture on site.
In addition, there is an intention to purchase at economies of scale and to reuse cardboard.
to reduce costs.

Other Costs Total Value

Corrugated cardboard $ 135.000

Cardboard Sheets $294,000,000

Bubble Wrap $25,000

Total $ 294.160.000
Table 2-43 - Production Costs First Year

As our income grows, our production costs

They will also grow by 5% as it is intended to meet more demand.

Years Percentage of % Annual Income

growth Totals
Year 1 5% $294,160,000
Year 2 5% $ 308.868.000
Year 3 5% $324,311,400
Year 4 5% $ 340.526.970
Year 5 5% $ 357.553.319
Year 6 5% $ 375.430.984
Year 7 5% $394,202,534
 Production Costs
$500,000,000
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
Año 1 Año 2 Año 3 Año 4 Año 5 Año 6 Año 7 Año 8 Año 9 Año 10

Figure 2-38 - Production Costs

As stated earlier, the corrugated cardboard market is in constant

growth in the country, for this project as a first instance we focus on
three segments of potential markets where the consumption estimate could be concluded
and sale of these corrugated cardboard containers. But it is intended that in the years
Following the demand, revenues will also start to grow.

2.7.6 Depreciation of Assets

The following is the linear depreciation schedule for the assets:

Fixed Asset Useful Life Value Depreciation Value Book

Investment
Machinery 15 $ 34.638.860 $ 2.309.257 $ 11,546,287

Team of 3 $ 1.258.000 $ 419.333 $0

Office
Installations 10 $ 1.500.000 $150,000 $0
Vans and 7 $ 24,500,000 $ 3.500.000 $0
Trucks
Furniture 7 $ 800.000 $ 114.286 $0
Total $ 62.696.860 $6,492,876 $ 11.546.287
Table 2-45 - Depreciations

It is estimated that the vans and trucks will be sold at the end of the evaluation for a

70% of its acquisition value, which would give us a total sale value of $
17,150,000.
In the second year, two operators and one more sales executive will be hired.
that after this, for the third year, these salaries increase by 7%.
Cargo Workers Salary Annual Total
General Manager 1 $ 1.500.000 $ 18.000.000
Commercial Manager 1 $800,000 $ 9.600.000
2.7.7 Cash Flow

Table 2-47 - Cash flow

2.7.8 Evaluation Criteria

1. NPV (net present value)

El valor actual neto, también conocido como valor actualizado neto o valor
net present value. The net present value is very important for investment valuation
in fixed assets, despite their limitations in considering unforeseen circumstances or
market exceptions. If its value is greater than zero, the project is profitable,
considering the minimum yield value for the investment.

Formula:

To calculate the NPV as mentioned earlier, investors demand a 15% return.

profitability.
For this project, it gives us a positive NPV.
FCN 0 -$ 63.902.738
FCN 1 $ 52.018.184
FCN 2 $39,944,403
FCN 3 $ 41.950.809
FCN 4 $33,196,950
FCN 5 $ 35.234.236
FCN 6 $ 31.950.813
FCN 7 $28,941,913
FCN 8 $ 25.904.291
FCN 9 $ 23.423.355
FCN 10 $ 23.021.878
VAN $ 271.684.093
Table 2-48 - VAN evaluation criteria

Therefore, in this case, the NPV is $271,684,093, so it is clear that the project
it should be approved since it generates a value greater than the profitability of what the
investors are asking, in this case the NPV shows how much more it earns above
what was wanted to be gained.
 2. PRI (Investment recovery period)

The payback or 'payback period' is a static valuation criterion for

investments that allow selecting a certain project based on how much
time it will take to recover the initial investment through cash flows.
This method makes more sense when it is fully used with present value.
net. The mere fact that the investment is recovered indicates that the NPV is
positive.

Period of F.C.N [Link] [Link]

Evaluation
1 $ 59.820.911 $ 52.018.184 $52,018,184
2 $ 52.826.473 $ 39.944.403 $91,962,587
3 $ 55.479.945 $ 41.950.809 $ 133,913,395
4 $ 58.061.672 $ 33.196.950 $ 167.110.345
5 $ 70.868.634 $ 35,234,236 $ 202.344.581
6 $73,904,172 $ 31.950.813 $ 234.295.394
7 $ 76.986.063 $ 28.941.913 $ 263.237.307
8 $ 79.241.819 $ 25.904.291 $289,141,598
9 $ 82.400.465 $ 23.423.355 $ 312.564.953
10 $93,136,336 $ 23.021.878 $ 335.586.831
Table 2-49 - Investment recovery period

In this case, the PRI evaluation criterion is telling us that the investment is
I would recover in the second year of evaluation.

2.7.9 CAPM Model

To evaluate this project, we will also use the CAPM model.

The CAPM model (Capital Asset Pricing Model) states that the rate of return
the equilibrium of all risky assets is a function of their covariance (co
movement) with the market portfolio (the one that includes all risky assets
of the economy). In mathematical terms, the CAPM states that the expected return, which
any risky asset is required, given by: E (Ri) = Rf + βi E (Rm - Rf) (1)
where Ri is the return of asset i, Rf is the risk-free rate, Rm is the return of
market portfolio, and βi = Cov(Ri,Rm) Var(Rm) is the beta of the asset. (Cov and Var
denote covariance and variance, respectively). The term (E(Rm)−Rf) is called
market risk premium. This is because it represents the return above the risk-free rate.
of risk, that investors require to maintain the market portfolio.
It is understood that to calculate the NPV we have to calculate the rate of
discount in the first instance with this model, therefore we have the performance of
market (IPSA) of 14.21%. The Rf is the risk-free rate, which in this case is the
profitability of the BCP issued by the central bank, which in this case is for a long term
 Rf + βi E (Rm − Rf)

Therefore, we have an equation: 4.57 + 1(14.21 - 4.57)

We have a return on equity of 14.21%.

The second step is to calculate the WACC (Weighted Average Cost of Capital).
The cost of capital is the rate of return that the company must achieve on its
investments so that their market value remains unchanged, taking into account
that this cost is also the discount rate of future business profits,
This is why the administrator of business finances.
To calculate, we use the following formula:

CCPP = D / V * (1 - T) * Rd + P / V * Rp.

For this project, it is evaluated on a 50/50 basis, 50% of the investment will be financed.
with equity and the other 50% with debt, and it is understood that the tax rate is
a 24%, Rd is the interest rate of the loan which in this case was 13.08% rate
annual interest.
So we have the following:

0.5 * (1 - 0.24%) * 0.1308 + 0.5 * 0.1421 = 0.12%

12%
So we have our second scenario to calculate the NPV at a rate
a discount of 12%. This gives us a NPV of $563,531,628.

Therefore, we can calculate the payback period of the investment:

Period of F.C.N [Link] [Link]

Assessment
1 $ 59,820,911 $ 53.411.528 $ 53.411.528
2 $ 52.826.473 $ 47.166.494 $ 100.578.022
3 $ 55.479.945 $ 49.535.665 $ 150.113.686
4 $ 58,061,672 $51,840,779 $ 201.954.465
5 $70,868,634 $ 63.275.566 $ 265.230.031
6 $ 73.904.172 $ 65.985.868 $ 331.215.899
7 $ 76.986.063 $ 68.737.556 $399,953,455
8 $ 79.241.819 $ 70.751.624 $ 470.705.079
9 $ 82.400.465 $ 73.571.844 $ 544.276.923
10 $ 93.136.336 $ 83.157.443 $627,434,366

This model also tells us that the investment would be recovered in the second year.
of evaluation.
 1. TIR (Tasa Interna de Retorno)

The IRR seeks to determine how much the investor could increase the return rate.
required. That is to say, up to how much one can earn. For this, it will look for that rate that will make it

equals zero. The IRR will show us how much return can be demanded for
that the NPV is equal to zero. For this project, the IRR gives us a value of 82%.

2.8 Legal Aspects

Our type of company will be a Limited Liability Commercial Company.

This type of partnership is characterized by the fact that the partners are liable up to the amount of

your contributions of social obligations to third parties in accordance with articles 2 and 3
from law 3.918 of the year 1923. In this way, the Commercial Society will be constituted
Limited Liability under the name Service Packing Corio where it must
carry out all the other corresponding procedures.

For this, the first step is the registration of the trademark.

The first step is the submission of the respective application, which must contain
protection for products, services, commercial establishments, establishments
industrial or advertising phrases, establishing the class or classes for which it is requested
protection with the specific activity within the respective class. From this request, it
conduct a formal examination to verify that the legal requirements are met
regulatory. Once the formal exam is approved, the application must be published in the
diario oficial a efectos de que terceros puedan oponerse a la solicitud en caso de que
they estimate to have a better right. Whether there has been opposition or not, the INAPI conducts an examination of

Background to verify that the trademark application does not infringe any of the legal grounds.
of non-registration. Once the application passes this formal examination, the Director
National INAPI grants the administrative resolution that grants the trademark and subsequent
registration of the same. In case the trademark application is rejected, there is the
possibility of appealing this resolution before the Industrial Property Tribunal.

Cost of the procedure:

It is free of charge. However, those who do not have FEA will have to pay the
cost of the signing at the Notaries, which amounts to UF 0.26.

Duration of the process:

The process must be completed within 60 days.
Legal Framework
 Law No. 19,799 on electronic documents, electronic signature and
certification services of said firm.

National Legislation:
Supreme Decree No. 977. Ministry of Health. Sanitary Regulation of the
Foods. Paragraph III On packaging and utensils

Article 122.- Defines containers and packaging for food.

Article 123.- States that the packaging and containers of food,
they must be built or coated with materials resistant to the product and not
toxic substances, contaminants or modifier substances will be released
organoleptic or nutritional characteristics of such products.

Article 125.- Indicates that metals in contact with food and their
raw materials should not contain more than 1% of impurities consisting of lead,
antimony, zinc, copper, chromium, iron, tin considered together, not more than 0.01
% of arsenic, nor other contaminants made up of metals or metalloids that may
considered harmful.
Article 126.- It indicates that packaging and packaging materials, as well as others

plastic material accessories that come into contact with food and its ingredients
primers should not contain more than 0.25% of styrene as residual monomers.
ppm of vinyl chloride and 11 ppm of acrylonitrile. Likewise, all objects made of materials
plastics should not allow more than 0.05 ppm of vinyl chloride to food or
acrylonitrile, and no other substance used in the manufacture of plastic materials that
they can be harmful to health.
Article 128.- The use of returnable containers is permitted as long as
it is possible to carry out proper sanitation of them before using them
again. The cleaning of these containers must be complete, and they must
to be discarded when, due to its use or for any other reason, they are found to be altered.
the case of food sold in returnable packaging, the information
sanitary and nutritional that is printed, when the label or tag is part of the
packaging will be enforceable from the date of manufacture of the packaging. In the packaging
Returnable packages must have the manufacturing date of the container registered. The month of manufacture

it will be indicated, as appropriate, by letters from A to L and the year by the two
last digits.
Article 129.- It is prohibited to use for containing food substances and
their corresponding raw materials, containers that in their origin or in some
opportunity have been in contact with non-food or incompatible products
with the same. Likewise, it is prohibited to package industrial products in containers of
food products.
 Rules applicable to packaging and packaging waste

Used containers and packaging are classified as solid waste.

domestics, or as comparable to domestic waste, if they are generated by
industries or trade. As such, they can be recycled or disposed of in landfills.
authorized sanitary facilities or landfills, which are monitored by the SEREMI of
HEALTH in each region. The regulations related to this area are detailed in
continuation.

Containers and packaging out of use as municipal solid waste

Decree No. 144/6. Ministry of Health: Regulates that the systems

intended for garbage incineration must have authorization from the
health authority. It also prohibits within the urban area of the cities, the
free incineration, whether in public spaces or in private premises.
Decree Law No. 18695/06 Organic Law of Municipalities. Ministry of
Interior: Establishes the attribution of the Municipalities regarding the maintenance of cleanliness and

ornate of the commune (Article 3).

Decree Law No. 3,063/79, Municipal Revenue Law and Law 20,280/08.
Ministry of the Interior: From this decree law derive the different Municipal Ordinances
for the waste collection and cleaning of the respective district, among which stands out the
separation of containers for recycling, for example Article 24 of Ordinance No. 8
from the Municipality of Ñuñoa, which states that the recyclable materials described
glass containers, papers and cardboard, aluminum cans, plastic beverage containers
and metallics, scrap, and tetrapack containers) must be separated from the rest of the waste
delivery people and arrange for their withdrawal on the day determined by the Municipality.

Used packaging and containers as industrial waste, comparable

the domestics.

Decree with Force of Law No. 725/67 Health Code. Ministry of

Health: It establishes that the health authority is responsible for authorizing the installation and

to monitor the functioning of all places designated for accumulation, selection,

industrialization, trade or final disposal of waste and garbage.
Decree with the Force of Law No. 1 (1989) of the Ministry of Health. Determines
the matters that, in accordance with the provisions of Article 7 of the Health Code,
they require Explicit Health Authorization as works intended for evacuation,
treatment or final disposal of industrial waste. It also considers any place
intended for accumulation, selection, industrialization, trade or final disposal of
wastes and refuse of any kind, as well as the installation and operation of
 Resolution No. 5,081/93, of the Metropolitan Health Service
Ministry of Health Environment, Regarding the declaration and monitoring of Waste
Solid Industrial Waste (RIS): Establishes the authority's competence for the Health Authority to

monitor the process and maintain a record of this type of waste for purposes of
control. This resolution applies to all industrial establishments located
in the R.M that generate, as a result of their processes, solid industrial waste
(RIS), in addition to the carriers and recipients of these waste.
Supreme Decree No. 594/99 of the Ministry of Health. Approves Regulation
about Basic Sanitary and Environmental Conditions in the Workplace: Between
others, regulates the accumulation, treatment, and final disposal of industrial waste
inside the industrial property, premises or workplace.
Comprehensive Solid Waste Management Policy, CONAMA: It states the
intention to develop a regulatory framework for solid waste in the medium and long term
deadline.

Regulations concerning Packaging and Packing for Export.

Ministry of Agriculture, Agricultural and Livestock Service, Instruction

Operational of the Pre-embarkation Program SAG/USDA APHIS ASOEX Chapter 9:
USDA-APHIS Regulations (Revised December 7, 2004) Packaging and Materials
Authorized Packaging: The regulations of the Pre-shipment Program are referred to
exclusively for those that will be used in the packaging of products that have
Methyl Bromide Fumigation as the only condition for entry into the U.S.
or for those who choose to undergo treatment when they have the Fumigation as
alternative. These regulations are aimed at the type of material and design, both of the
packaging materials like containers
Ministry of Agriculture - Agricultural and Livestock Service. Conditions of
Export Packaging and Packing. Code: D-PA-EA-003 Version: 01 Date of
Validity: 13-12-2007: Details the conditions that packaging must meet for the
phytosanitary inspection and quarantine treatments.

Management models for packaging, packaging materials, and their waste.

The company must identify its packaging within the following categories,
according to Law 11/1997:

• Domestic packaging: Those that remain after fulfilling their function.

 In case the packaging is considered domestic type, the company
is required to take responsibility for the management of the waste generated, having two
options for it:

a) Develop a Deposit, Return and Retrieval (DDR) system:

It poses logistical complexity and some drawbacks. The DDR may be valid for
certain products (for example, beverage containers, as long as there is a)
technical and economic feasibility that justifies such implementation.
Through a Deposit, Return or Recycling System (SDDR). The
packers, traders of packaged products or those responsible for the implementation of
the packaged goods market must charge its customers an amount for
each container subject to transaction, and return an identical amount upon return
from the empty container.

b) Adhere to an Integrated Management System (IMS): For example

Ecoembes brings together the efforts of all member companies, preventing the
companies manage it themselves. Once they have adhered to this System of
Management, the company disregards the waste generated by packaging,
debiendo previamente imprimir el logotipo del “Punto Verde” en todos los embalajes
positions in the national market.
En caso de que los embalajes sean considerados de tipo comercial o industrial,
the company that first puts the packaging into circulation has the obligation to
take responsibility for packaging waste, being able to choose one of the following
options:
Voluntarily join a GIS
Transfer the responsibility of management to their clients (last holder)
packaging waste, noting it on the invoice (specifying both the nature
commercial or industrial packaging as the new responsibility it entails for the
client), and on the other hand, notify the commercial or industrial nature of the packaging to the
competent authorities in environmental matters within the Autonomous Community
corresponding, indicating the type, number, and total weight of the containers and packaging
positions in the national market annually.
In any case, regardless of whether the packaging is considered
of one type or another, provided that the quantities expressed in the R.D. are exceeded.
782/1998, must develop and implement a Business Packaging Prevention Plan
This implies having to review the design of packaging and packaging systems.
distribution.
The Business Prevention Plans (PEP) are a management tool.
business-related, to prevent and control the generation of waste from packaging and containers.
Packagers are required to prepare a Business Prevention Plan.
 • 250 tons, if it is exclusively glass,
• 50 tons, if it is exclusively about steel,
• 30 tons, if it is exclusively aluminum,
• 21 tons, if it is exclusively plastic,
• 16 tons, if it is exclusively about wood,
• 14 tons, if it is exclusively about cardboard or materials
compounds.
• 350 tons, if it involves several materials and each one of them does not
exceeds, on an individual basis, the previous amounts.

The Plans can be developed by the Integrated Management Systems.

waste from containers and used containers, through which the packers put
your packaged products in the market. Companies individually can
also develop said Plans. These will have a triennial periodicity, although they must
to be reviewed whenever a significant change occurs in production or in the
type of packaging used. Once the corresponding plan is approved, before the 31st
Every March of each year, the degree of compliance with the objectives must be accredited.
expected for the previous year

In Spain, the management of most 'domestic' packaging and containers,

like the 'commercial or industrial' voluntarily embraced by an integrated system
Management (SIG) is carried out through ECOEMBES and ECOVIDRIO.

ECOEMBALAJES ESPAÑA, S.A. (ECOEMBES) is a non-profit organization.

profit, whose objective is the creation and organization of systems that allow for the collection
selective collection and recovery of packaging and wrapping waste, for its subsequent
treatment and valuation, in compliance with European Directive 62/1994, on
packaging and packaging waste.

The companies attached to the SIG of ECOEMBALAJES S.A. identify their

containers with the "Green Point" symbol (art. 7.3 of Law 11/97), owned by said
Society for the entire Spanish territory

These companies pay an amount for each container identified with the 'Point
"Green" put into circulation in the national market for the first time. This allows for the
financing of ECOEMBES and its SIG, and therefore enables the achievement of the objectives
of reduction, recycling and recovery provided for in the Law.
 3 COMPLEMENTARY ASPECTS

3.1 Bibliography
3.2 Annexes

3.2.1 Annex A - Main users by type of packaging.

PAPER AND CARDBOARD PACKAGING

Consumer Market %
Fresh and frozen foods 52
Processed foods 16
Alcoholic beverages 5
Others: manufacturing, hygiene and cleaning products 28
dangerous, etc.
Table 3-1 - Corrugated Cardboard Boxes

Consumer Market %
Food industry 65
Chemistry and cosmetics 15
General manufacturer 10
Others 10
Table 3-2 - Micro-corrugated Cardboard

Consumer Market %
Food industry 40
Cosmetics industry 25
Pharmaceutical Industry 25
Non-food industry 10
Table 3-3 - Cardboard Cases

Consumer Market %
Construction supplies 55
Food industry 34
Retail trade 6
Others 5
Table 3-4 - Multi-ply Bags (10 kg and more)

Consumer Market %
Construction supplies 5
Retail trade 30
Food industry – individual packaging 40
Others 25
3.2.2 Appendix B - Statistics of production, export, and import of
Eye

PAPER AND CARDBOARD SUBSECTOR

Tipo de Envase 2002 2003 2004 2005 2006 2007 2008 2009

Corrugated cardboard boxes 317.64 320.030 368.238 375.000 398.830 433.772 470.102 475.000
Cardboard boxes 4.400 5.060 6,500 7.475 7.850 8.243 8.655 9.000
microcorrugated
tubular containers of 4.150 4.358 6,500 6.890 7.303 7.522 7.748 7,500
fiberglass paper
Cardboard packaging 49.000 47.000 49.000 51.450 52.479 55.103 55.963 60.000
Multi-ply bags (10 kg and 21.925 24.146 25.000 26.750 28.086 31.456 29.569 30.000
more)
Bags (< 10 kg) 2.860 2.946 3,500 3.675 3.676 3.768 3.617 3.800
Packaging elements:
single-layer corrugated 6.290 6.479 6.500 6.825
Molded pulp trays 8.928 9.821 10.500 11.340 12.020 13.222 13.883 13,500
Cornerbacks 4.200 5.355 6.200 6.696 7.031 7.734 7.811 7,500
Wrapping paper 3.474 3.578 3,000 3.180 3.371 3.540 3.575 3.500

Total 422.86 428.773 482.938 499.281 523.646 564.359 600.923 609.800

Table 3-6 - Physical production of paper and cardboard packaging (Tons)

Table 3-7 - Value of the physical production of paper and cardboard packaging (millions of
US$)
Type of packaging 2002 2003 2004 2005 2006 2007 2008 2009
Corrugated cardboard boxes 232,11 235,35 293.82 329,50 351,00 401,67 482,79 434,00
Cardboard boxes 7.50 8.84 10.00 12.65 13,28 14,78 16,61 16,00
microcorrugated
Tubular containers of 9,67 10.41 10.50 12,24 13,23 14,44 15,45 10,00
fiberglass paper
Cardboard packaging 72.00 69.60 73.00 84.33 87.74 97,65 99,18 94,00
Multi-ply bags (10 kg and 19.50 22.29 23.00 27.07 28.99 34,42 33,93 30,50
more)
Bags (< 10 kg) 6.15 5,80 7.00 8.09 8.60 9.17 9,14 7.00
Packaging elements:
Single-layer corrugated 3.30 3.56 3.80 5,12
Molded pulp trays 7.75 8.50 9.0 10.21 10.82 12.38 13.26 12.00
Corners 3.50 5.13 5.8 6.89 7.24 8.44 8,85 7.50
Wrapping paper: 6.20 6.00 5.7 6.04 6.34 6,92 7.20 7.00
Total 367,68 375,48 441.62 502,14 527,24 599,87 686,40 618,00
Source: CENEM

Packaging 2002 2003 2004 2005 2006 2007 2008 2009

Cardboard Boxes 2.910 4.662,9 6.524,8 5.922,9 7.739,8 11.980,2 11.930,6 7.713,5
Plain Cardboard Boxes 832.9 305,9 427.7 154,0 205.3 148.8 621.0 205,4
and Cardboard
Bags and Pouches 9.155,0 9.116,0 12.882,4 14.001,3 14.592,7 17.802,2 17.283,6 15.056,7
TOTAL 12.898 14.08 19.834 20.07 22.537 29.931 29.835 22.975
Table 3-8 - Export of paper and cardboard packaging (Tons)

Packaging 2002 2003 2004 2005 2006 2007 2008 2009

Boxes 2.487 4.037 5.278 5.098 6.516 11.558 12.891 8.179
Cardboard
Corrugated
 Segment Company Price % inside the
FO segment
Printed Packaging S.A. 8.761 68%
Boxes of C. San Fernando S.A. 934 7%
Cardboard Roble Alto Packaging S.A. 828
Corrugated 6%
Cartocar Chile S.A. 648
5%
Corrupac S.A. 415 3%
On Paper S.A. 354 47%
Industrial Ceramics 95 13%
Cardboard Boxes
Smooth and Cardboards Avon Cosmetics S.A. 51 7%
Com. Tulip Int. Ltda. 40 5%
Eynaudi Impresores S.A. 39 5%
Propa S.A. 27.160 96%
Containers 538
Bags and Pouches Fibrotambore 2%
Total 41827
Table 3-10 - Main exporting companies of paper and cardboard containers

Segment 2002 2003 2004 2005 2006 2007 2008 2009

Cajas Cartón 22.509,2 27.909,0 37.415 34.746 36.292 31.430 11.090 8.094
Corrugated

Cardboard Boxes 4,648.2 3,523.3 4.883 6.423 6.330 6.696 3.849 4.333
Smooth and
Cardboard
Bags and 1.546,3 1.734,4 1.578 2.242 2.587 2.945 3.606 2.996
Bags
Multi- 14.550,5 15.361,1 17.160,2 18.087,6 19.556,0 19.574,0
components
TOTAL 28.703,7 33.166,7 58.426,30 58.772,20 62.368,10 59.158,4 38.099,9 34.997,5

Table 3-11 - Imports of paper and cardboard packaging (Tons)

Segment 2002 2003 2004 2005 2006 2007 2008 2009

Cardboard Boxes 21.259 25.635 34.721 33.701 35.415 35.393 15.039 10.591
Corrugated
Cardboard Boxes 6.524 6.502 7.727 10.142 9.799 10.935 8.466 8.514
Smooth and Cardboard

Bags and Pouches 2.852 3831 3.625 4.936 7.396 8.591 11.006 9.171

Multi- 34.007 40.193 50.810 55.458 60.429 52.676 48.707 43.676

components

TOTAL 77.990 76.361 86.719 94.969 105.978 109.975 107.312 118.981

Table 3-12 - Imports of paper and cardboard packaging (Thousands US$ CIF)

Subsector Company Price thousands %

CIF US$
dent
Cardboard Boxes Concha y Toro Winery S.A. 1.796 12%
Corrugated Agricom S.A. 1.455 10%
Commercial Greenwic S.A. 1.150 8%
tetrapack 58605 87%
Sig Combibloc Chile 2.322 3%
Cardboard Boxes Foodcorp Chile S.A. 1.266 2%
Smooth and Cardboards Axis Logistics Inc. 785 1%
SouthPacific Korp S.A. 432 1%
Bags and Pouches National Insulators 1.512 14%
Column 724 7%
3.2.3 Annex C - Origin of Imports

There are various countries from which the containers come. However, it
four countries stand out that collectively represent 68% of imports in
function to the value of production: Argentina, China, France, and the United States.

Main destination countries %

Argentina 32.7
China 12.1
France 11.4
United States 11.2
Brazil 8,9
Germany 3.2
Italy 2.7
Spain 2.6
United Kingdom 1.7
Mexico 1,4
Table 3-14 - Countries of Origin of Imports of Packaging and Packing

Paper and Cardboard EyE Subsector

Corrugated Cardboard Boxes %

Argentina 65%
United States 21%
China 6%
Brazil 4%
Colombia 1%
others 3%
Plain Cardboard Boxes and Cardstock
%
Netherlands 39%
Germany 18%
Argentina 13%
Denmark 9%
Austria 7%
others 14%
Bags and Pouches %
China 21%
Argentina 21%
Brazil 14%
United States 14%
France 12%
others 19%
Polymers
Argentina 100%
Table 3-15 - Main countries of origin (based on the value of imports)
3.2.4 Appendix D –Quotations

Figure 3-1 - Web Development Budget

Figure 3-2 - Advertising Budget

Figure 3-3 - HSM ProfiPack 400 Recycler Quotation
3.2.5 Annex E - PreviRed Indicators

Figure 3-5 - PreviRed Indicators

3.2.6 Annex F - Per Capita Income per Household

Figure 3-6 - Per Capita Income per Household

Table 3-16 - Per Capita Income by sector

3.2.7 Annex G - Economic Data of the Country

The following graphs present the economic indices of the country.

Figure 3-7 - Gross Domestic Product (GDP)

Figure 3-8 - Unemployment and Employment Rate.