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Tetra Pak Marketing

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Toto Sugianto

on 22 November 2012

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Transcript of Tetra Pak Marketing

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli Marketing Concepts and Practice Established on 1952, based on Sweden.

The world’s largest producer (80%) of aseptic packaging for liquid foods.

Grew rapidly through the 1980s, but slowed in the 1990s. Tetra Pak The top customer of Tetra Pak based in Italy.

Bought 1 billion packages a year.

Second largest dairy and the leading brand of liquid milk in Italy.

“Quality” is the advertising theme.
Pontero 26 November 2012 THANK YOU Question? Tetra Pak’s Recommendations to Pontero:
Product Orientation
Innovative product development
Target the health conscious segment
Special product (produced as liquid and as powder) to target this market segment
Age-specific (toddler) product
Tetra Pak needs to focus on:
Customer Satisfaction Initiative(CSI) to evaluate its key accounts
Develop better and more effective B2B CRM Company Profile
Market and Industry
Company Performance
Pontero Profile
B2B and CRM
Issue and Challenges
Key Implementations Content Suggestions
create a mind set on consumer that Milk is not only for children but also for adults and seniors
create different segmentation for milk consumer (baby, children, teenager, adults, seniors)
differentiate marketing mix for each segments
Innovations on packaging
see through packaging
youth theme such as tribal, (un"milky" theme)
deluxe series
unique straws
limited edition series cartons
improve CSR
recycle-friendly cartons
refund offer for empty cartons
carton collection scheme
Tetra Pak postal recycling service.
cooperation with recycled paper manufacturers such as cardboard packaging producer 
Brand ambassador
value propositions
occasional- milk bundle for gifts (birthdays, Christmas, etc)
 Family pack / bundle (to target big household size)
event promotion:
origami/paper art contest using aseptic cartons
aseptic carton design contest for pontero milk
squash carton contest
customer survey
increase complaint handling and pre-order activity Develop new cornflakes with Multi Vitamin

1) Benefits for Pontero
TV promotion emphasizing “Take multi vitamin with natural milk”
Physical Package
Sustainable packaging Suggestion 2 Changing life style
Aging population

Decreasing market share in the segment ‘Family with young children’

Cannot expand market share in the growing market, since its philosophy ‘Natural’ does not fit with ‘Artificial Milk’ Issues and Challenges for Pontero Opportunities:
Growing competitors: Andina and Filo
Lost the equivalent of 2.5 million liters of shelf space to its competitors
Its market share declined 2.5%
Lost market share among homes with children pontero Strengths:
Inflexible position towards the idea of modified milk and having developed an advertising campaign in this sense pontero TETRAPAK Strengths:
80% of market share of the world’s aseptic carton packaging
Superior technology compared to its competitors
Expansion in growing plastic packaging
Organizational culture: people goal-oriented, long term careers=loyalty and better performance
Marketing services to most important customers in Italy which gives Tetrapak global knowledge of different industries
Slow grow during the nineties Microposition of Tetrapak:
Tetrapak has a very close relation with Pontero. It has assigned to its customer a Key Account Manager who led the customer relationship maintaining daily customer contact and discussing and resolving marketing, sales, technical support, machine maintenance and financial issues.
Pontero buys 1 billion packages a year and Tetrapak is its only suppliers
Tetrapak positions is reifnorced due to the high cost of switching
Tetrapak gives a double service to Pontero which is not usual in the industry, acting both as a supplier and a marketing consultant. Pontero - tetrapak Profitable for both parties since they started working together
Pontero has always trusted Tetra Pak, thus establishing a mutually beneficial alliance
Pontero has looked at Tetra Pack as its mentor in re-establishing its market share
Tetra Pack benefits from Pontero and vice-versa. Tetra Pak-Pontero Relationship Evaluation Market Orientaton vs Business Performance Opportunities:
Milk consumption in Western Europe (main market) declined by 1 billion liters by 1999
Due to switching costs, changing suppliers was not common but it was on the rise
Cambibloc and Elopak expanding into plastics packaging
Cambibloc is cutting prices and developing new packages sizes. It wins customers away from competitors and it is waiting a crack between Pontero and Tetrapak TETRAPAK Open Milk Juice stands to sell fresh fruit-milk juice

1) Benefits for Pontero
Open (temporally) milk juice stands in hyper markets
Emphasize ‘Natural Vitamin & Natural Milk’ = Authentic
Campaign - convincing young housewives to purchase a juicer and to make “Natural Fresh Juice” using fresh fruits and natural milk for their children rather than “artificial milk” at home. Suggestion 1 Trends:
Decreasing market share
Smaller sales per shop than competitors
Offering competitive price Pontero vs Competitors Market Trends:
Shrinking market as a whole
Increasing demand of Semi skimmed milk
Growing Enriched Milk Liquid Milk Sales in Italy Competitor Analysis Focus on high quality product with premium prices that gives high margin Focus on innovation and differentiation gives value added preposition Focus on quality & natural product with premium price. Andina Filo Pontero Pontero and competitor Tetra Pak/Pontero Integrated Interdependent Co-perative Basic Relationship Development Model Simple Complex Collaborative Transactional Nature of
Relationship Level of involvement
with customer Innovation
- Powder + Liquid Enriched Milk Future Direction Market Orientation Product Orientation How to address this issue?
Objectives Tetra Pak Differentiate Products and Brands through distinctive packages and label designs to drive greater efficiency, impact and value for Tetra Aseptic, Innovations in automation, integration and traceability delivering efficiency, quality and confidence Working closely with our customers and suppliers, we provide safe, innovative and environmentally sound products.) We commit to making food safe and available, everywhere Tetra Pak Tetra Pak and Competitor Analysis Provide superior quality product with low price in order attract customer away from competitor (Combibloc) Seeks to bring its international expertise and product technology to new markets (Elopak) Provide global packaging industry with value strategic advice on sustainability issue (Elopak) To be the first choice for carton packaging solutions and deliver superior and distinctive value to our customer and “make a difference” (Combibloc) Assumption Capabilities strategy Objectives Competitor’s Analysis
Competitor Market Orientation affects Business Performance Identification of the Problem Declined Sale’s
Growth Market
Share Competitor’s
Focus Customer
Focus Enriched
Milk Pontero’s
Business Performance Market Orientation Andina invade Potenro’s market share
in the segment of family with:
Young house wife
Yong children & infant Pontero Andina Pontero Andina Pontero Andina Consumer Research Analysis Projects & Marketing, Technical service & Maintenance, etc. Global expertise in project planning, after sales service, efficiency control system, spare part, etc. Processing equipment & solution, Service solution, provide idea and suggestion, etc. Program & Service (type, quality & services Provided) Carton, design, print & board, Closures Liquid dairy, still water, wine, food Dairy, Juice, Wine & Spirit, food, Cheese Products
- Committed / invested
- Committed / Invested
Committed / invested
Committed / Invested
Committed / invested
Committed / Invested Human Resources:
Board Intensively (News, Newsletter, publication, Intensively ( Media releases, brochures, magazine Intensively (Media, Brochures, Publication Media attention/publicity -
- Over 80 % (M. Share) -
-57% (M. Share)
-80% (based on quality, reliability & lead time) - 80 % (M. Share)
80% (bases on spontaneous recall Customer (Main customer, Market share & Satisfaction) Elopak Combibloc Tetra Pak Resources Continue
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