Free Essay

Tetra Pak

In: Business and Management

Submitted By ishitaisrat
Words 3364
Pages 14
A Term Paper on Tetra Pak

Submitted to:
Kashfia Ahmed
Senior Lecturer, Dept. of Business Administration,
East West University Submitted By:
1. Chowdhury Ishita Israt (2009-1-10-198)
2. Md. Faisal Hasan (2009-1-10-289)

Name: Tetra Pak
Type: Private
Industry: Food packaging
Founded: Lund, Sweden (1951)
Company's Countries:
Tetra Pak announced particularly strong growth in China, Southeast Asia, Eastern Europe and Central and South America.
Company's activity fields: food packaging and processing
We commit to make food safe and available, everywhere
We work for and with our customers to provide preferred processing and packaging solutions for food. We 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. We believe in responsible industry leadership, creating profitable growth in harmony with environmental sustainability and good corporate citizenship
Business & Market:
Tetra Pak operates globally through 40 market companies, which are subsidiaries to Tetra Pak International SA, doing business in over 170 countries Because of the low relative cost of its end products, the developing world has been an important market for Tetra Pak from the start. Tetra Pak has particularly strong growth in China, Southeast Asia, Eastern Europe and Central and South America.

IMC Tools Used by Tetra Pak
In its long road of success Tetra Pak has used many different communication tools for building awareness among their customers and to hold their loyalty towards the brand by providing sound proposition and value. So far the tools they have used to enhance their IMC are;
(i) Print Advertisement
(ii) Television Advertisement
(iii) Billboard Advertising
(iv) Corporate Social Responsibilities
(v) Public Relation
(vi) Internet Advertising
(vii) Below the Line Advertisements (POP Ads)
Among these tools we will be discussing about only five of them considering two different regions, such as India and United Kingdom. But before that we are going to analyze the SWOT analysis of the IMC tools of Tetra Pak. That is how much they are succeeding in their communication attempts and where they are mostly strong and which are their weaknesses etc.

SWOT Analysis of IMC tools used by Tetra Pak:

By the analysis of the IMC tools used by Tetra Pak we have found some subtle strength, weakness, opportunities & threats in the tools and their field.
Strength & Weaknesses:
Tetra Pak by its method of processing and packaging itself is a big example of Corporate Social Responsibility, because they are producing food packages that keeps the food nutrition intact and with their waste products they are recycling it in many forms of usable goods. Certainly it has a strong & sustainable patterns and possibilities in the field of TV commercials and Press/ Print ads but they definitely lack some frequencies in billboard advertising. It is may be because of the type of industry they belong; as an food processing and packaging one they mostly have industrial customers which might lessen the importance of billboards as advertising media to them. But it is often important to aware the end consumer first, in order to pull the demand through the primary customers to the manufacturer. And that is why ‘billboard advertising’ has become the weakness of their IMC.
Opportunity & Threats:
On the other hand, both in Public Relation and BTL ads Tetra Pak has a line of threats as it is a packaging company licensed with many different food and beverage brands around the world. It sometimes faces difficulties in building awareness & promoting the brand unaccompanied by any other brand name. But in public relations from the very beginning Tetra Pak is always active and frequent.

Use of Different IMC Tools by Tetra Pak
Among different IMC tools used by Tetra Pak we have discussed and analyzed only five of them. These five are; TVC, Print ads, Corporate Social Responsibility, Public Relation and Billboards. We have compared the use of these tools in UK region and India region. We know that both the regions are very different in their language, culture, political practice and legal environment. That’s why it is obvious for any brand to follow different IMC strategies for each region. Following we’ll find the differences and their reasons.
TVC in India:
Video Link:
The symbol of protection of a baby by a ‘black spot’. As Indians are very much closer to their relatives and mostly consists a big family this advertisement shows that all relatives come to see a new born baby and they gives a black spot on his face. They believe that this spot will save him from evil and bad things. This belief is a part of their culture and it’s a kind of good wishes for baby. In the last moment it shows all family members are eating milk made sweet which is called “payesh”. This food is very much famous in their culture. Now this food is very much nutritious because the main ingredient of food is milk which preserve in tetra pack without any preservative.

TVC in UK:

Video Link:
'I Am Your Mother', created for Tetra Pak by Green Cave People, uses the theme of motherhood as a metaphor for constant and unquestioning care and protection. The ad shows vignettes of mothers with their children shot through the 'frame' of a light blue circle -- the 'Circle of Protection' that is a visual reference to the circular mark that appears on all Tetra Pak packaging.
As we know that European are individualistic so in tetra pack advertisement they only focus on nuclear family and they also focus little children those are depend on their mother, in this advertisement it also shows that family members are having milk in their breakfast because European would like to have a glass of milk in the morning.

Though there are some similarities in this two commercial. Which is; Tetra Pak focuses on family bonding. They create affection and emotion between mother and children. It shows that tetra pak protects the food and nutrition as well as it protects family and closeness to the beloved one.
Press Ad in India: Here we again we see the reflection of family bonding and relations in Tetra Pak’s press ad of India. It is portraying a joint family of grandparents, father-mother and their children all having nutritious juice from Tetra Pak. And it is saying that “When there’s a Tetra Pak sign, it’s 100% fine” delivering the promise and protection of a loving family.

Press Ad in UK: In UK’s press ad we have both the ad of milk and wine. When Tetra Pak is providing milk in UK markets they are targeting on a very sensitive issue regarding the illegal affair between a milkman and a housewife of typical UK household. This is a issue which is very bizarre to Indian culture and society but not in UK.
On the other hand, they have an emerging market of wine in UK. The second ad is about their wine brand ‘French Rabbit’ published in UK. Where they are simultaneously depicting about the taste of their wine and to save the planet by recycling. Whereas in the context of India publishing rights of any kind of alcohol ad is prohibited.

Public Relations in India:
In India Tetra Pak has taken so many initiatives for maintaining a healthy PR activity. There are numbers of articles published about tetra pak in different newspapers and many events have taken places to create and maintain relations with the media persons. Below we have given one of the articles published in the ‘Times of India’.

Besides articles and press releases Tetra Pak have organized many public events to keep the relation running. It has launched a campaign named “6 layer Tetra Pak care” and also an awareness campaign for recycling named “Good Trashy Life” in India.

Public Relations in UK:
Similar to India Tetra pak has maintained sound public relation activities in UK through several articles and press releases and also many events. But we found the differences in PR in their type & form of many public events. Such as following there is a short description of a Cheese Awards event held in Nantwich town of Cheshire, England. The difference is though Indians love cheese as a food ingredient they do not have the practice of making different cheese types and taking it to any event level. Whereas UK has a numerous types of cheese and they love to have them with wine. That’s why tetra pak can organize such event in UK not in India.
‘International Cheese Awards, Nantwich 2012’
Founded in 1897, the International Cheese Awards are certainly ‘extra mature’ and full of flavour, yet continue to grow and develop year-on-year. New for this year is an education centre, complete with live cheese making demonstration and equally alive, milk-producing farm livestock.
A new purpose-built theatre can hold up to 750 people, plus celebrity chefs Gino D’Acampo, James Martin and Jean-Christophe Novelli. A charity e-book of winning cheese recipe’s is also being launched, packed with ‘virtual sizzle’ and e-delights. And for connoisseurs who appreciate a well-matched wine with their cheese, there’s a new cheese and wine bar.

Corporate Social Responsibility (CSR) of Tetra Pak:
In Tetra Pak the ways of doing CSR (Corporate Social Responsibility) are raising the company’s, customers’ and subcontractors’ awareness about environmental impact, actively promoting staff welfare, donating to charitable causes, and assuming responsibility with regard to the company’s business ethics. Moreover, Tetra Pak has run their business like this for decades–in everything from school milk programs to the development of infrastructure and sustainable environments. The cornerstones of their social responsibility are: Food for Development, Global Compact and Sustainable Environmental Development.
CSR of Tetra Pak in India:
• The Daman Ganga Tetra Pak Recycling Plant: It is located in Vapi, Gujarat and owned by Tushar Shah. The plant is currently working at 20% of its capacity and trying to increase its output to respond to a growing demand for the material it produces. The consumption of tetrapak in India increases 35% every year. It was 4 billion ton in 2011. The Tetra Pak packages collected are sent to Daman Ganga, the paper component which makes up about 75% of the package is recycled back into paper products like notebooks. The rest which includes polyethylene and aluminum is recycled into different products like roofing.

• Helping Dairy Industries to Grow: The livestock sector in India contributes approximately 12 percent of the country’s GDP. It is an integral part of the socio-economic activities of rural India. The dairy sector operates mostly in the informal economy and needs a consistent effort to formalize and be able to contribute better to the national economy. Due to problems in collection of good quality milk as well storage and deliver, only 3 percent of the milk production is processed and marketed through formal channels. However Tetra Pak, together with local NGO’s and with the support of local government has been actively promoting sustainable economic development of the dairy sector in India, through dairy development project the Dairy Hub. Its key objectives include improving quality, quantity and market access of milk, by creating an efficient value chain to enhance small-holder competitiveness. This initiative serves to formalize and improve dairy infrastructure, and enable the farmers to have direct contact with processors and consumers. The Dairy Hub is a one-herd concept, consisting of 20 villages located within 15-20 km radius, which organizes and develops smallholder farmers’ milk production, which is then collected by the dairy that owns the Dairy Hub. Equipped with facilities for cooling, testing, agriservices and trainings, dairy hubs enable registered smallholders to supply their milk and access the formal sector.

CSR of Tetra Pak in UK:
• Recycling project in UK: Tetra Pak is working hard to ensure that more and more people are able to recycle their cartons in the UK. Until 2006, recycle of beverage cartons was arranged in Fife, UK but when that mill gets closed down and since then they have been exporting UK’s collected cartons to Sweden. However, Tetra Pak is committed to increasing the global recycling rate of its beverage cartons from 20% in 2010 to 40% by 2020 and has been a driving force behind the new plant. By the end of 2012 the aim is for 47% of UK local authorities to be collecting cartons from kerbside, which could then be recycled at the new site.
According to the new research, almost two-thirds (63%) of UK adults would prefer to have their food and drink cartons recycled into other materials in the UK, compared to less than one-in-sixteen (6%) who want this done abroad. Of those who want cartons to be recycled in the UK, more than two-thirds (69%) see it as a point of principle agreeing that ‘if cartons are used in the UK, they should be recycled in the UK’. More than half (56%) recognize that the recycled material should be kept in the UK because it is valuable and two-fifths (40%) see the benefit of a UK-based recycling plant keeping trucks off the road. As well as driving up carton recycling, Tetra Pak is also aiming to offer cartons made entirely from renewable material. In the UK, 74% of the cartons sells are now made from FSC certified paperboard.

• Carbon Management Plan: As a packaging company, Tetra Pak UK is subject to consumer and regulatory pressure on its environmental record. It has therefore put in place measures to reduce its overall impact on the environment, among them a carbon management plan that is already paying dividends. The project also provides additional employment and a source of sustainable timber for the local area, as well as helping to combat soil erosion. In addition, they are set to gain considerably from greater access to national markets for timber, poles, fuel wood and fruit and fodder, according to project partner Ecotrust, which spends much of its time promoting forest management that encourages biodiversity. However, Three years ago Tetra Pak UK began working with the Edinburgh Centre for Carbon Management, a specialist consultancy, to do just that, and set itself an initial target of reducing overall carbon dioxide emissions by 12 per cent by the end of 2012. To achieve that goal, the company drew up a carbon management plan that takes account of every aspect of Tetra Pak UK’s manufacturing operations – from production of packaging material to its delivery to UK customer sites.
‘Sustainability is part of Tetra Pak’s competitive strategy and thus a key driver in the way the company conducts its business – sustainability ensures profitability. However, the bottom line is not the whole story, ‘People really like to see the company is doing something to help the environment. With the British government looking for a 60 per cent reduction in UK carbon emissions by 2050, Tetra Pak UK is putting itself in a position to lead from the front to get successful on this occasion.

Richard Nisbett in his wonderful book ‘The Geography of Thought’ broadly discusses differences in “Asian and Western” thinking. However we have acknowledged all those differences in our everyday life. Despite all those differences there are some matched thought also. We all know that Sustainable Environmental Development is nowadays a burning issue throughout the world. And by considering this fact Tetra Pak is doing the recycling work of their cartons both in India and UK. While their recycling work in both countries proved that they are environment conscious and doing best for the society also.
Social institution including family, religion, school, the media, government and corporation all affect the ways in which people relate to one another, organize their activities to live in harmony with one another, teach acceptable behavior to succeeding generations, and govern themselves. However in India by using all other social institution a corporation like Tetra Pak is doing their CSR by helping the dairy industries in India to grow with the higher growth. On the other side, Tetra Pak is not doing this type of CSR in UK because of sound dairy industry of UK and the economic solvency of their dairy farmers. On the contrary, Tetra Pak is doing other CSR stuffs by using UK’s social institutions like school food program and recycling projects etc.

Billboard Advertising of Tetra Pak:
As before we explained the weakness of tetra pak in billboard advertising is its infrequency yet we found few examples of them in both India and UK. Following there are the examples;
In India:

Here they portrayed an Indian child who is aware of the recycling process of Tetra pak is saying her mom to always pick the Tetra pak products. Here is a passive message for the concern mothers in the advertisement.

In UK:

This is a billboard ad of UK which is a part of their TVC about their aseptic pak with separable top. This shows how easy it is to tear off the top of the package and recycle it, that any child can do.
Though both the billboards have used child to portray the message they have certain differences in certain perspectives. Such as, in India they used the child to concern the mothers to buy tetra pak products for their children whereas in UK, they showed that a child can help it recycled. It is because western children brought up in a way that they become very individualistic and independent but in India children are brought up in a way to be dependent on their parent for almost everything. This difference in the message is very subtle yet very strong in the psycho-social aspects.

Analysis of Global IMC Tools in Different Aspects:
Tetra Pak has used many different tools of IMC in both India and UK. Some of them are similar to some extent and some are completely different in all the ways. But the major variations were in the communication message they were portraying. Because it is the media which reflects and also effects the society and culture of the consumers. The elements which effect the media and advertising are following;
(i) Cultural Diversity:
India and UK, East and West have prominent cultural diversity by their origin. One has a polychromic culture another has monochromic. The mind set of these two cultures are totally different. That’s why where an ad of India shows a big joint family celebrating a child’s birth with traditional sweet dish made of tetra pak’s milk, there an UK ad showing just a single mother taking care of her child with a tetra pak’s sign.
(ii) Linguistics Limitations:
Language difference is a very common natural difference in the advertisement media. One brand will obviously convey its message in the language of its target consumer.
(iii) Media Limitation:
Every country has some control or regulations towards its media and press. That’s why in India tetra pak cannot show or publish any ad of their French wine but in UK it’s a normal practice.
(iv) Legal Constraints:
Just like the media restrictions there are some legal constraints in every country which restrain certain activity in public or media. Such as in UK Tetra Pak can organize a wine testing event as a PR activity, but in India it is not possible in public. Though privately it can be arranged in India too. But the differences are clear.

With all the researches and explorations about the IMC of Tetra Pak in two different regions we can conclude that these similarities and dissimilarities is natural for any other product in different countries, because of the different cultural values and norms of the consumers. That’s why International Marketers have to design their IMC tools as per the taste of their target market.
For the help of our research we have taken information and help from the following websites;

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... Keywords – Lean Manufacturing, Process Activity Map, Distribution Warehouse of Milk Industry, Pakistan I. INTRODUCTION Milk industry is one of those industries which has its presence all around the world and are known to have a mass target market. Milk is of great importance as it is an everyday necessity for almost every individual of any age group, income group and gender. The most widely acknowledged and reliable source of milk is tetra pack. Although it found its existence a few decades back it widely became popular around the globe changing the basic concept and landscape of milk industry. The tetra pack companies introduced the concept of hygienic and healthy milk with increased focus on the customer satisfaction and health.[1] As in other countries milk has its significance in Pakistan, but unfortunately good quality hygienic milk is still not available for the majority of the population. Milk Pak a subsidiary of Engro foods was the pioneer of tetra pack milk in Pakistan in 1981. The main target market of all the Tetra pack companies is segments, which prefers safe, healthy and hygienic milk easily available to them and are ready to buy at a slightly higher price. Due to consistent shortage of supply and increase in demand many companies were prompted to enter this industry making a noticeable shift towards increase in supply. Although a lot of companies entered this and there has been a significant increase in its production, but it still has been beyond...

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...countries. Haleeb foods’ products are available in all over Pakistan but it don’t have a very well planned distribution network as compared to its competitors. The non-dairy products of Haleeb are mostly consumed in Urban areas. 12. Promotion Nestle gives utmost importance to marketing. In 2009 Nestle’s annual advertisement expenditure was $2.62 Billion making it world’s #5 top advertiser. Promotion strategies of the company are very well planned and they always pay multiples of the expected amounts. Advertisement is done on electronic and print media along with sign boards and e-marketing. Nestle’s limited economy offers boost up the popularity of brand especially in the case when new induction to the market is made. Advertisement by Tetra Pak is also indirectly contributing to promotion of Nestle’s Products Haleeb Foods lacks a consistent promotional strategy. Advertisement is done through electronic and print media but also much focus is on sign boards There is almost no...

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Suply Chain Report

...15%of the milk is lost at the stage of farm due to mishandling and wrong milking practices. While 5% gets wasted during the transportation stage. The buying capacity for small scale farmers is very low they do not afford high cost of feed for their animals and they are lacking advantage of economies of scale. They do not access to formal market channels and are often exploited by the middlemen who offer low prices for their milk and they enjoy the huge profit margin for their own customer. INTRODUCTION OF NESTLE PAKISTAN LTD. Nestle Pak works as a subsidiary of Nestle S.A. Nestle Pak started working in Karachi since 1988 under a joint venture with Milk Pak Ltd. With its headquarter in Lahore, Nestle Pak. has four production facilities. Two of its factories are in the heart of Punjab province; Sheikhupura and Kabirwala which are multi-purpose factories, one in Islamabad and the other in Karachi, Sindh which produces bottled water. Nestle Pak is the biggest milk collector in Pakistan. Currently, it collects milk from 190,000 farmers over 145,000 square kilo meters in Punjab and Sindh. With its 8000 brands world-wide, Nestle is the leading brand in beverages and food industry. It has a separate department for supply chain management which was founded in 2001. The objective behind the creation of separate department of supply chain management is to ensure the smooth running operations from the supply of raw materials from farms or other sources to the supply of finished......

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