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Tetra Pak

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by

Jin Bergsten

on 18 November 2014

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Transcript of Tetra Pak

Tetra Pak
Company Introduction
Globalization strategy
Tetra Pak entered the market first & captured most of the market

After a certain age, they wanted to protect the captured market share
Globalization Strategy
Also cut cost of production by taking advantages of economy of scales

- operated globally through 40 market companies
- doing business in over 170 countries

Low cost strategy is the main characteristics of Globalization strategy
7-step partner relationship management
Equipment investment
Market information sharing
Human resources and training
Value-added services
Qualified account team
Develop customer market as well as business market
Tetra Pak’s ingredient branding
- Business Strategies
Swedish food packaging and processing company
Founded in 1951
Offers packaging solutions, filling machines and processing solutions and distribution tools like accumulators, cap applicators and straw applicators.
Tetra Pak is currently the largest food packaging company in the world .
Comparison over time

Tetra Pak's exports from the individual countries were normally very low

Traditionally focused on their local markets

Different types of pallet labels at its facilities in different countries
Localization strategy
Low – Cost Defender’s Strategy by innovative pyramid-shaped milk carton packaging idea
How the globalization strategy works ?
- Production and R&D activities are applied identically in all of 33 Tetra Pak’s factories

-Production processes and qualities of products are similar in every factory

-Any innovation can be applied to every factory
In the past
Many of the company's factories have customers in several countries

Individual customers often have Tetra Pak facilities in different countries as packaging suppliers

Eg: In Germany, for example, there are customers who take deliveries from facilities
At present
This strategy is represented clearly in marketing activities

Principle of “growing with customers”
Its customers must flourish so that Tetra Pak will do well

Close relationships with their partners are a key factor for Tetra Pak’ success

HOW CLOSE??
Need thorough understanding
about specific countries
Combine different steps to apply to certain customers in certain markets
2 types of market
Premium markets
5 large customers in these markets account for 50% of Tetra Pak’s annual turnover


Keeping long-term relationships







Pontero
– one of 3 biggest milk companies in Italia- Tetra Pack is a partner of Pontero in doing market analysis and research in order to increase Pontero’s net sales
Small customers, but potentialBusiness of local food production and processing is normally in its infancy

BangladeshLack of domestic supply for milk (90% milk used in form of imported powder)Opening this market by
+ support local farmers to enhance productivity
- Setting strong footholds in new markets- Creating new habits for using packaged food- Widening new markets
Low-wage markets
Features
Reasons
Example
Competition
No longer companies producing similar packaging

Types of packaging with a lower cost of production, like the PET bottle

Chinese packaging company challenging Tetra Pak on the Chinese market
School milk project
Part of Food for Development projects

Providing milk to school children to help improve nutrition

Tetra Pak supplies the cartons, no profit on sales
Showed that vitamin deficiency, energy, growth and cognitive skills were improved and that children were more interested in their school work after taking part in the program
Company Introduction
Swedish multinational food packaging and processing company

Founded and named after the Tetra-shaped package in 1951

Dairy products, juices, ice cream, food and vegetables are examples of products that can be processed or packaged in Tetra Pak

The company provides safe, innovative and environmentally sound products

Each day meet the needs of hundreds of millions of people in more than 170 countries around the world
Tetra Pak has a very pronounced sustainability profile

Strive to improve best practice for itself and for its customers.

”a package should save more money than it costs”

Use of materials and waste management are "big issues"
Enviroment
Thank you for listening!
Full transcript