Intro to Tetra Pak

SWOT Analysis

Market Trend Analysis

Competitor Analysis

Problem Statement

Solution

The world’s largest producer of aseptic carton packaging for liquid food

Founded in 1952 in Sweden and employs 20,100 people in 165 countries

Tetra Pak sold total packaging systems including proprietary machinery, materials, and services

Milk packaging was accounted for 57% of total Tetra Pak sales

Strengths-World’s Market leader in aseptic carton (80%)-Good corporate culture-Economy of scale-Good marketing strategies-Efficient packaging system-Credibility to client

Weaknesses-Depend on dairy product-Integrated relation is not always good-High price as compare to competitors-Not completely independent-Trust deficit

Opportunities-High switching cost that prevent losing customers-The growth of alternative beverages-The demand for the space saving packaging-The growing market usage of plastic bottle

Threats-Increase number of competitors-The concern about the environment-The increase of substitute products

Less dairy product consumption due to◦ Lower birth rate and ageing population

◦ Declining homes with children under 15

Growth of alternative beverages among youth

More health-minded consumer among adults

The increase competition for shelf space

The increase in alternative packaging products i.e. PET bottle

Declining margins in branded milk

Tetra Pak (7.0 billion*)

Combibloc (1.5 billion*)◦ Second largest producer

◦ Aggressively low price

◦ Fast growing in Europe and Asia

Elopak (3.9 billion*)◦ Leader in non-aseptic packaging

Crown Cork & Seal (7.7 billion*)◦ World’s leading plastic manufacturing and metal

cans

(*Sales in 1999)

Problem◦ How to continue being the sole supplier for Pontera

and mutually enhance growth?

Abandon Enriched milk altogether

Yes - Lose 7% market shareNo – They will take the U-Turn to their strategy, problem with branding and reputation, expand the product range

Solutions Comments

Reintroduce enriched milk with the twist

i.E Enriched Milk Shake

Yes – Can get the new customers, it may or may not work as expected

Recommended SolutionCompletely Different Proposal

“Natural Enriched Milk”-Vitamin C from real fruits with innovative packaging-Benefit:

-Not violate client value-For customers who prefer enriched milk and are health conscious

Group 5Thank you