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Cryovac: Market Driven Strategies

In: Business and Management

Submitted By azreetaaziz
Words 1722
Pages 7
Sealed Air: Cryovac
Market driven strategy is not about being the first in the market, but is about thinking and listening so that product we create is simple and meets redifined needs. Sometimes, the idea when we think out of the box can give new glimpses about what we might be possible to market, and become boom in the market. But the theorically about market driven startegy is that the market and the consumers that form the market should be the starting point in business strategy. To be in the market, company must have to create something what consumer need. It might be from existing products and services or new development of that particular products and services.
Food processing industry is an important to the growth of food and beverage industry. The increased demand for processed food and beverages has in turn escalated the needs for innovative food processing and packaging equipment and technology, making it major contribution to the economy. Packaging plays a key factor in gaining the attention of consumers whenthey make their purchasing decisions, especially to the highly aware of hygeinic consumers. Innovation in the area of packaging has become increasingly important driven by consumer demand and the need to address environmental issues.
The Cryovac brand leads the way in providing market driven solutions. The new packaging types and designs, as evidenced in the food and beverage sector, are frequently aimed at offering simplicity, cost-reduction and materials saving while maintaining the benefits of convenient, attractive and easy to-use and environmental friendly packaging design. The Cryovac are commited to uncovering and understanding what drives the market, so that their packaging solutions will improve their customer’s business.
The Cryovac brands is a Sealed Air asset. Sealed Air is a leading global innovator and manufacturer of a wide range of protective packaging and performance-based materials essential to many consumer and industrial markets. The company is best-known for its protective packaging products, including AirCap and Bubble Wrap air cellular cushioning materials; inflatable packaging products under the Fill-Air and Rapid Fill brand names; Instapak, a system for injecting a protective, expanding polyurethane foaminto shipping cartons and other containers; and protective mailers and bags sold under the Jiffy brand. Since its 1998 acquisition of the packaging business of W.R. Grace & Company, however, Sealed Air has derived the majority of its revenues from its line of food packaging products, mainly marketed under the Cryovac trademark. These items, which include shrink bags and films, laminated films, foamand solid plastic trays and containers, and absorbent pads, are used to package a wide variety of perishable foods, such as cheeses, produce, poultry, and fresh, smoked, and processed meat. The company has operations in 51 countries, though its products are distributed in many more. The United States accounts for about 55 percent of net sales; Europe, the Middle East, and Africa, 26 percent; the Asia-Pacific region, 10 percent;Latin America, 7 percent; and Canada, 3 percent.They combining a unique consultative sales expertise with our global network of science and innovation to demonstrate how improving packaging performance makes the world a better place.

For half a century, Sealed Air has expanded with the knowledge that innovation is the key to growing any business. And trust is the key to building any relationship. They focused on meeting the needs of a changing world while never losing sight of the priorities. They stand for their own company mission, “Commitment to safety and environmental excellence; Respect for others; Our Code of Conduct, fully in effect... all the time...everywhere.”
Cryovac’s Market-Driven Strategies:
Becoming Market Oriented – can be defined as a business approach or philosophy that focuses on identifying and meeting the stated or hidden needs orwants of customers. The Cryovac focus more on this because they want to know what world needs. Becoming a market-oriented, they must have skills in understanding and satisfying customers. From the 2010 Cryovac Foodservice Forum that held on September 2010, they give the chances to interact with their guest and shared ideas about how trends and technology can help foodservice operators. They focus more on two-way communications, and gather feedback or ideas from customers. They continuously gathers information about customers, their competitors and market trends. Cryovac requires participations and commitment from all of their employees to become the most market-driven company.
Customer Focus – The Cryovac understands their customers’ preferences and requirements, especially the foodservice operators and retailers. As example, they produced end-user-friendly packaging because they know what customer need. The evolotionary edge of Cryovac often goes to foods with value-added packaging. According to J.Scarpa (2006), many of today’s successful new products are packaged in ways that help to reduce prep work, shorten cooking time, extend shelf life, simplify cleanup or negate the need for advanced culinary skills. Cryovac already find what their values buyers want to help them satisfy their purchasing goals.
Competitor Intelligence – The Cryovac have a few major competitors such as Printpack, Sonoco Product, Pactiv Corporation, Bemis Company, Inc., Minnesota Mining & Manufacturing Company, AEP Industries, Inc., Reynolds Food Packaging and Interplast Group, Ltd. Cryovac have to study their competitors to overcome with new strategies to counter the threats from them.
Cross-Functional Coordination – Cryovac gets all it’s business functions worked together to provide excellent customer value. They practice TSA - Total System Approach, which it known as being a partner, not a supplier. They help customers solve every day challenges and operate their businesses more efficiently so that they can be more profitable. It’s been done by combining technology, engineering, manufacturing know-how, endless services, unparalleled customer support and a thirst for future growth that cannot be matched.

Performance Implications – To be a market oriented, Cryovac done their strategic analysis with penetrate view of the market and competition. They always show their financial statements as below:
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Key numbers for fiscal year ending December, 2010:
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Sales : $4,490.1M
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One year growth : 5.8%
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Net income : $255.9M
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Income growth : 4.7%
Source from: http://www.answers.com/topic/sealed-air-corp#ixzz1ZRQFZ2vM
Distinctive Capabilities at Cryovac
Organizational Processes – Cryovac is a world’s leading food packaging company. From the large Sealed Air been merge and under subsidary, Cryovac still been leader in this industry. For more than half a century, the Cryovac brand food packaging business has been developing technologies to keep food fresh better tasting and more accessible. Their customer is their first priority.
Skills and Accumulated Knowledge - The Cryovac advantage is rooted in values that go back to the early days of the company. Although they are flexible enough to change over time by growth, acquisition, global expansion, societal change and new ideas, the core of the culture and philosophy remains constant, and is protected and reinforced by leadership. Based on Sealed Air’s daily operating priorities and Code of Conduct are the foundation of the company. These are woven into the fabric of everything they do at Sealed Air and Cryovac. Their business model is being leveraged to non-profit such as sustainable growth and corporate citizenship. They create value for customers, shareholders and the world at large through innovation and a steady stream of valued-added products, systems and service revenues from both in and outside of packaging.
Coordination of Activities - At Sealed Air, we are proud to have created products and services that help make the world a better place. They are faced with the challenge of guiding our customers and consumers in making “sustainable” choices in their business and purchasing decisions. One of their goals is to demonstrate how packaging technology prevents waste and is not just solely a source of waste. From a sustainability standpoint, product wastage and energy usage are vital to consider when addressing the environmental impact of packaging.
Assets – Based on company culture and philosopy, their first priority is customer. Throughout the life of the company, their success has been and always will be measured by the customers' success. Second priority is cash flow. They encourage employees to spend the company's money like it is their own, because in a real sense, it is. Through the profit-sharing plan many of their employees are shareholders. The third priority is World Class Manufacturing initiative that focuses all of them on doing their jobs a little better every day. Through employee involvement and teams, seeking to identify opportunities to create faster, simpler processes that enhance the ability to serve customers and improve cash flow. The fourth priority is innovation, and from day one, that is what Sealed Air has focused on in every aspect of the business. The final priority is earnings per share. If it been practice and successfully execute the first four fundamental priorities, growth in earnings will follow. Growth will ensure the company's long-term value and security.
Creating Value for Customer:
Providing Value to Customer – Cryovac’s customers loyal to them because they provide the packaging products that needs the demands. Customers form value expectations and decide to purchase goods and services based on theirperceptions of Cryovac Brands product such as vaccum shrink, tray lidding, thermoforming, and so on. They also provide e-business services to their customers. Most of the customer’s review, they are proud with Cryovac packaging because it leads to the high demand, user friendly (end-user friendly range), aware of globalization issues such as environmental friendly.
Conclusion:
Cryovac or Sealed Air especially create packaging products and systems to meet specific market needs, not just for today, but with the future in mind. This distinction is critical, and represents one of the reasons they are perceived not as a vendor, but as a strategic partner. They are working closely with the supermarket, food processing and foodservice industries by developed packaging systems in use throughout the world that enable perishable foods to be distributed safely and efficiently.

References:
Sealed Air Annual Report 2010
James Scarpa, (2006),Culinology off The Shelf; End-User-Friendly Packaging, Culinology http://www.answers.com/topic/sealed-air-corp#ixzz1ZRQFZ2vM http://media.corporate-ir.net/media_files/IROL/10/104693/2010_AnnualReport/index.html http://ir.sealedair.com/phoenix.zhtml?c=104693&p=irol-reportsannual http://www.sealedair.com/Default.aspx http://www.mifb.com.my/2011/foodfuture/ http://www.cryovac.com/en/Sustainability.aspx

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