FAKIBAJ STUDENTS : ALL TERM PAPERS
Would you like to react to this message? Create an account in a few clicks or log in to continue.

TETRA PAK Case Study

Go down

TETRA PAK Case Study Empty TETRA PAK Case Study

Post  Admin Wed Apr 23, 2008 1:45 pm

http://www.fileden.com/files/2008/4/22/1879407/Case%20Tetra%20Pak.doc

Prepared by
Shahriar M Osman

PEST ANALYSIS

Political sector:
Tetra Pak follow its rules and regulations very strongly and perfectly. Like they have certain rules in case of hiring employees as they hired employee for long-term careers, and they always seek for people who are goal-oriented, team players, self-confident, humble and those who balanced results and relationships. Moreover the managers have to dress properly and formally and have to treat each other with courtesy. They paid their employee above-average compensation.


Economic sector:
Tetra Pak was the world’s largest producer of aseptic carton packaging for liquid foods including milk, juices, and fruit drinks. It had global sales of $7 billion and employed 20,100 people in 165 countries. Tetra Pak grew rapidly through the 1980’s. It held 80% of market shares of the world’s aseptic carton packaging market. It was aggressively dominant the market and give many types of packaging facilities by lowering the cost. Worldwide milk consumption grew from 213 billion litters in 1995 to 236 billions litters in 1999, representing 2.5% annual growth which as well as increased the sales of Tetra Pak’s.




Social Sector:
According to social context, Tetra Pak had a good relationship with its employees and its marketers. They took information about their salespersons and keep a regular contact with them. They discussed and resolve marketing and sales problems and gave technical support, kept regular maintenances and discussed about financial issues. They were likely to do businesses that were innovative in marketing, willing to invest for long-term category growth and maintain high quality products. Again Tetra Pak used to keep good relationship wit its customers. They worked closely with their customer’s in-house marketing by analyzing the market and even offering advice on product launch strategies, advertising and promotions. Tetra Pak helped to spread global knowledge among their customers as well as competitors which again helped to increase relationships among them.
Moreover, as per the culture, Tetra Pak enjoyed a strong corporate culture, evident in every one of its far-flung operations around the world. Tetra Pak was decentralized and entrepreneurial. They maintain five core values that they considered as key factors of success. These are –
• Freedom with accountability
• Partnership with customers, suppliers, and colleagues
• Long-term perspectives
• Innovation and creativity
• Commitment and fun.

Technical sector:
Tetra Pak used to maintain good quality machinery or technology to serve its customers with best quality milk, juices, foods which were sealed at the bottom, filled with liquid, and sealed at the top below and surface to eliminate air space and maximize food safety. Company’s most popular package was rectangular shape that was easy to stack and shrink-wrap on pallets. Their packages were ultra heat treated (UHT) which allowed to keep foods fresh for the long-time.
Tetra Pak’s packaging systems of the supply of both per-printed rolls of carton packaging materials and the filling equipment. It could make 22.000 packs per hour with its extreme capable equipments. Tetra Pak offered its customers the best technical service to maintain production machinery which would improve efficiency.



Business Strategy Typology

Tetra Pak entered the market first with the concept of aseptic carton packing and captured most of the market. They always tried to be the Prospector in the industry. Even when they were supposed to analyze the industry for Pontero and suggest them in accord to their experience, Tetra Pak team came up with a new pack idea. This mentality ensures their Prospector ideology when they were in a monopolistic market. After a certain age, when the market reached the emerging stage, they wanted to seal of the captured market share. They acted as Defender in this particular time while they were the market leader. They wanted to reliable relationship with their customer by providing quality product. They tried to protect their market share through continuty, reliability, efficient production.

Tetra Pak came up with innovative pyramid-shaped milk carton packaging idea which ensured low cost foundation for their customer, Pontero. Analyzing the above mentioned characteristics, we can assume that the firm have been portraying a Low – Cost Defender’s Strategy.



Product Category:
Every consumers basically wants the product to be served as a complete package, received in a safe and sound condition. On top of it, better shape, design and flexibility is expected now-a-days, in every competitive industry. Tetra Pak introduced further safety measures in food drink packs with aseptic carton packaging. This additional value was more than expected by the consumer, which denotes the product as an Augmented Product.


Marketing Strategy Typology:
Tetra Pac plays the role of a Value Marketer as we can see that when tetra Pack came with the strategy of “Specific products for specific needs”, they deemed the strategy to safeguard the overall profitability. Tetra values the product differentiation and the consumer thoughts. Tetra has always been concern of the customer and their requirement. Their effort was to come with the exact product that the market wanted through innovation, value and to provide the core benefits. They offered their customers technical services to maintain production machinery, improve efficiency and avoid downtime. They had proper research facilities and had a very good knowledge on packaged milk market. Tetra Pak’s tagline says, “ A package should save more than it costs”, this line says it about their ‘Value Marketing’ approach, as they try to redeem the cost adding more value to the product.

General Competitive Strategy (GCS):

Tetra Pak has been portraying the role of a prospector in the industry from the initial stage. With some value marketing policies, they have been following a general view within competitive strategies. The product being for a niche segment of the food market, attaining higher product value by quality would fall under the ‘niche’ category for a specific target segment. The suppliers, milk manufacturers in this case, are actually business to business consumers who like to maintain certain superiority. To add value to both the supplier and the end-consumer, Tetra Pak decided to cut the cost down to a minimal margin. So, we can decide that Tetra Pak followed the Niche Low Cost Leadership strategy.



Socio Biological Model of Interspecific Competition (SMIC):

Tetra Pak and SIG were more similar to each other in terms of product manufacturing, target market and relationship with clients. Both the firm specializes in the category of ‘aseptic’ carton package, though Tetra Pak owns the innovation of the category. Surprisingly the truth lies in their upcoming venture being similar yet, expanding into plastics, where Crown Crok & Seal and Elopak may appear on challenger’s role as ‘big boy’ in the market, the latter with huge joint venture investment.

As of the SMIC, the number of Key Strategic variables determines the optimum number of potential competitors in an industry. We find only the liquid food industry market in the case, which actuates a single leader. Tetra Pak leads the aseptic carton packaging market, Sidel leads PET market, Elopak eyes on gable top non-aseptic packaging and Crown Cork & Seal seems to take the metal can market. Accumulating the strategies, only 4 factors are available for the industry.

Tetra Pak is the innovator of aseptic packaging and they have strong relationship with their supplier which enables their unique advantage on the point.


PEM Model:

Not much left in the industry to try but start looking for new categories. Leaders are expanding to the plastic industry now, which means there are opportunities for the specialists. Some firms are trying all ends up, even going on a joint-venture. Rivalry playing its role already in the industry, when we see Combibloc taking 10% share of the carton packaging industry and stepping into the age old client of their competitor Tetra Pak. Reviewing all these factors, it is to be determined that the market is in Constrained Stage.

Admin
Admin

Posts : 4
Join date : 2008-04-23

https://fakibaj.board-directory.net

Back to top Go down

Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum