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Tetra Pack

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Submitted By VictorSandoval
Words 1947
Pages 8
Executive Summary
The following marketing plan addresses the marketing of Tetra pack. A history of the company is given, objectives are established, and the internal and external environments are analyzed. Obstacles Tetra Pak could face are discussed and solutions are presented.
Tetra Pak is in an industry most would consider boring, packaging. Yet somehow the company has continued to grow throughout the last 50 years. Tetra Pak now supplies packaging for a large number of major food suppliers. Tetra Pak’s designs are influenced by their Swedish heritage. Their packaging is simple yet elegant. What may seem like small changes to the untrained eye are actually revolutionary leaps for food.
It is these revolutionary leaps alone that have catapulted Tetra Pak to success. In an industry full of competitors with a product that has a low switching cost, they must continue this innovation if they are to continue their growth.
Tetra Pak’s strengths are innovation and brand. No one would have expected there to be so many different ways to produce a straw—no one but Tetra Pak. Now that they have built their reputation in the mind of businesses Tetra Pak can build a more sustainable competitive advantage by positioning themselves in the mind of consumers. If consumers believe Tetra Paks are superior to other cardboard boxes producers may feel the pressure to use Tetra Paks when they would use an alternative.
In order to continue their growth tetra Pak needs to focus on innovation, first and foremost. Innovation can be achieved in the form of, producing entirely new product lines that change other packaging industries like they have changed liquid foods, discovering new means of reducing costs in production, and new means of reducing costs in transportation. If Tetra Pak continues to innovate they will continue to lead the category.
However, innovation is unpredictable. Thus the company must also focus on other means of promotion. Tetra Pak should invest in community relations campaigns and build brand awareness. Brand awareness can be achieved not only through these community relation campaigns but through some consumer advertising and making their brand more obvious on the packaging they produce. This is untraditional for a business to business brand but we believe it can have a positive impact on their sustainability as a company. Not only will companies be forced to use Tetra Paks, but new kinds of products may choose to use Tetra Paks, image Vodka and beer in Tetra Paks.
By focusing on the future of the company Tetra Pak will guarantee its place in the future economy. So far the company has realized this and continued down this path. This marketing plan reestablishes and concretes these ideas and goals. Table of Contents History………4
Mission………4
Vision………4
Core Values………4
Objectives………5
SWOT………6
TOWS………7
Alternatives………8
Conclusion………8
Recommendation………9
Works Cited………10
History
Tetra Pak is a Swedish company created in 1951 by Ruben Rausing and Erik Wallenberg. Their invention is based on a revolutionary concept: the first packaging for milk in sterile carton waterproof. This idea was in order to keep the aliments well conserved and to compete with the bottle of glass (packaging used until this time).
Since the creation, the packaging created by Tetra Pak has never stop improving and expanding around the world. In 2007, the company specialized in carton packaging was present in over 165 countries around the world and has deliver more than 137 billion packages. Today, the carton packaging is not only use for milk but for all type of aliments: wine, juice, soup, cheese, ice-cream…
The company also expand its range of products by adding for example straws.
Today, the Swedish company is one of the largest global suppliers of packaging for milk, beverages and other food products.

Mission
They commit to making food safe and available, everywhere.

Vision
They work for and with our customers to provide preferred processing and packaging solutions for food.
They apply our commitment to innovation, our understanding of consumer needs and our relationships with suppliers to deliver these solutions, wherever and whenever food is consumed.
They believe in responsible industry leadership, creating profitable growth in harmony with environmental sustainability and good corporate citizenship

Core values
⁃ Customer Focus & Long-Term View
We ensure we add value and inspire our customers because we recognize that they come to us by choice. We dare to lead with a focus beyond tomorrow and take opportunities to learn and grow.
⁃ Quality & Innovation
We do not compromise on quality. We relentlessly drive for better, fit-for-purpose solutions and breakthrough innovations.
⁃ Freedom & Responsibility
We have the freedom to take initiative and act decisively in the best interests of Tetra Pak and our customers. We take responsibility for our actions and contribute to the communities in which we operate.
⁃ Partnership & Fun
We respect and rely on one another and all our stakeholders for exceptional results.

We enjoy working together and celebrating our achievements.

Objectives

Tetra Pak wants to continue to be the leading provider of packaging solutions for food. Tetra Pak has already made an excellent name for itself. Tetra Pak needs to continue upholding this image and make it more widely known.

Because patents run out and innovation can be copied Tetra Pak has consistently focused on innovation in order to sustain growth. Because of this, innovation will always be part of Tetra Paks DNA. This makes it much easier to introduce innovations as they have a history of ideas that work. This puts them at an advantage that they cannot afford to lose. From straws to cardboard boxes, businesses trust Tetra Pak.

In order for business to continue trusting Tetra Pak, the company has not only focused on innovation but also reducing costs for businesses and providing marketers with canvases. Tetra Pak has literally reshaped liquid products.

Now that Tetra Pak has been revolutionizing the liquid product business it has moved onto other food categories. If Tetra Pak is able to innovate in other categories the way it has innovated liquid beverages, it will change the world for the better. Tetra Pak has the ability to bring safe food to the masses and it will not miss that opportunity.

STRENGTHS

- World first fully retortable carton system for commercial use => innovative product
- Wide range of products (Tetra Brik, Tetra Aseptic, Tetra Rex, Tetra Top…)
- Always innovating with new products
- Significant marketing efforts
- Widen the range of food contents (pet food, soups…)
- International presence
Competitive advantages
- Tetra Pak received two awards (EAFA & DuPont Diamond Award)
- Attractive design of the Tetra Pak products
- Cost effective (with cheap materials like paper, plastic…)
- Easy opening => no tools needed
- Hygienic packaging
- Environmentally friendly
- Resistant
- Long shelf life of the content, remains fresh
- Space for the brand, easy communication Weaknesses

- Too many extensions of products/launch of products can discredit the brand. E.g.: Tetra Pak straws

OPPORTUNITIES

- Manual services replaced by self-service => desire to have manageable and practical packaging, easy to carry
- Increase of supermarkets
- Hygienic packaging increased => increase of demand THREATS

- 2 major competitors: SIG Combibloc & Elopak with a significant international presence
¬¬

TOWS STRENGTHS

World 1st fully retortable carton system
Wide range of products
Constant innovation
Significant marketing efforts
Range food contents extension
International presence

Attractive design
Cost effective (cheap materials)
Easy opening
Hygienic packaging
Environmental friendly
Resistant
Long shelf life of the content
Brand space WEAKNESSES

Too many extensions of products/launch of products.
E.g.: Tetra Pak straws => increase the number of competitors with these new products

OPPORTUNITIES

Self-service => desire to have manageable and practical packaging, easy to carry

Increase of supermarkets

Hygienic packaging increased SO Strategies

Continue the marketing efforts/communication for the manufacturers, the retailers insisting on their hygienic and environmental friendly products

Reinforce their presence in the supermarkets WO Strategies

Moderate the launch of new products and dwell upon the existing products (marketing efforts?)
THREATS

2 major competitors: SIG Combibloc & Elopac with a significant international presence ST Strategies

Continue having competitive advantages

Be attentive on the competitors’ products

Increase its international presence in developing countries for example WT Strategies

Alternatives

Conclusion

Tetra Pak is an extremely well operating business. They have stayed focused, and profitable and have influenced the way the world consumes food. Tetra pack plays a bigger part in our everyday lives than most other companies.

Tetra pak has grown to become the leading packaging provider worldwide because of its focus on innovation. One could expect a packaging provider to be passive. After all, Tetra Pak’s product is in constant demand. Howver, with major competitors in the market Tetra Pak needs to continue innovation in order to keep its leading edge.

Luckily, Tetra Pak seems to realize its need to stay current. The company has a long history of innovation and has even begun expanding its offerings outside of the liquid containers category. If Tetra Pak continues to mold the category the occupy they will continue to be the leader.

Tetra Pak is a business to business product and it advertises accordingly. The only unfortunate thing is that the average consumer does not realize the way that Tetra Pak has affected their lives. If Tetra Paks were perceived as innovative, sterile, environmentally friendly, and fresh-keeping, to the average consumer, they could build a competitive advantage without having to continuously innovate.

There is nothing wrong with the way Tetra Pak operates but that does not mean it can’t improve. A recommendation for the future of Tetra Pak follows. Recommendation

As to be active in all possible media like facebook, and a comprehensive website that offers a steady improvement through the advice of the consumers themselves, we wanted to focus on the aspect of neuromarketing. It is a technique in the field of marketing, which studies the effects of advertising and other communications has on the human brain with the intention to get to predict consumer behavior (brain activity, heart rate …). That is one of the reasons why a company pays extra, for a better product placement in supermarket shelves.

In simple terms what we mean with neuromarketing, is a way to predict the wishes of those who choose a product. It is said that 85% of our capacity of decision is influenced by our impulses during the first 2.4 seconds. This practice can be confused with subliminal advertising, but it is still legal.

By utilizing peuromarketing and focusing the consumers attention on Tetra Pak we will build a competitive advantage in, not only the mind of businesses, but of the mind of consumers. This will influence businesses to use Tetra Pak when competitors have similar offerings.

Otherwise if Tetra pak wants to improve the image of social responsibility, they can do it by sponsoring movements for environmental and social concerns. (Such as AVINA known for being an organization of recycling products in Latin America as well as other international Organizations).

Concerning the improvement of the product, we have focused on the investment not only by reducing costs in process, or graphic prints, but also by researching various forms of packaging attractive to children, or even systems that allow the child to draw on the package itself associated with a message of environmental awareness. This way Tetra Paks will occupy a position in the consumers mind at a young age.

Last but not least is to focus our activity of the different packages in those places which are suitable for reducing costs (in Saudi Arabia milk, juice in south africa, straws in Taiwan) so that transportation will be cheaper. We also belierve that Tetra Pak needs to focus its research and development efforts on food preservation methods. With Tetra Pack’s knack for innovative packaging, they can end world hunger.

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