B2B Marketing & Tetra Pak

Presented By:Amit Kumar Singh Ashok Mehrotra Dhruv Uppal Govind Singh Bhati Saurabh Shukla Trishala Chaudhary Vivek Dwivedi Presented To:Prof. Maninder Singh

Doing something that nobody else has done before is actually quite hard.
Ruben Rausing

HISTORY
Tetra Pak is a Swedish packaging and processing solution providers for food manufacturers across the world Tetra Pak can be traced back to Akerlund & Rausing (A&R), a packaging company established in 1920 by Ruben Rausing (Rausing) and Erik Akerlund. In 1997, the company introduced three packaging ranges: 1. Tetra Prisma Aseptic. 2. Tetra Wedge Aseptic. 3. Tetra Fino Aseptic. They differed only in shape.

In 1953 first TETRA PAK MACHINE

A FLAT unformed package :

Passes a 30% H2O2 bath/ 70oC/ 6sec The unformed package is washed using Hot Air or Pressure Rollers Producing credibility to the end product;

requires Filtered Air around the system

(Aseptic Packaging Council, 2006)

THE LAYERS OF TETRA ASEPTIC PACKAGE

1. 2. 3. 4. POLYETHYENE PRINT PAPERBOARD ALUMINIUM FOIL

5. POLYETHYLENE
6. POLYETHYLENE

Whatconsumersays
Protects food from spoilage Protects the taste of foods and beverages

Prevents living organism from entering the pack

Prevents harmful radiation from entering the pack. Protects the nutrient quality of food

PRODUCTS SOLD IN TETRA PAK PACKAGES IN 2010 OF 70,674 MILLION LITRES OF PRODUCTS

Liquid dairy products - 63.2% Juice & nectars - 18.5% Still drinks - 8.3% 7.20% 2.80% Wine & spirits - 2.8% Other - 7.2%
8.30% 18.50%

Sales
Liquid dairy products
Juice & Necters Still drinks 63.20%

Wine & spirits

Others

10

TETRA PRISMA

TETRA WEDGE

TETRA FINO

TETRA GEMINA

TETRA CLASSIC

TETRA BRIK

TETRA TOP

TETRA RECART

Poly Ethylene Terepthalate

Use no clamps

Use clamps

Use no hooks

Avoid sunlight

Fragile

Avoid water

This side Up

The INDIAN Story

 Tetra Pack is better than any other forms of packing suchas:Cartons,Paper,Polybags,cans&tins,etc

Because of two main factors viz., STERILIZATION & HYGIENE FACTOR

TetraPaksB2BOperations
Tetra Pak in China
Tetra Pak, a multi-national company headquartered in Sweden, is a world leading company in producing machines and materials for packaging beverages. As a supplier in B2B market, Tetra Pak holds about 75% shares of worlds aseptic packaging market. In 2010, its net sales income was 9.98 billion Euros with an employee base of 21,672 employees. In 1985 Tetra Pak officially entered China and founded Tetra Pak China Ltd. Co. Based in Hong Kong initially, it set up representative offices in Shanghai and Beijing in 1993. By 2002, Tetra Pak had occupied nearly 90% of Chinas aseptic packaging market, after becoming the largest soft packaging supplier.

18

Tetra Pak in China Contd.

With the rapid development of Chinas soft drinks and dairy produce markets, Tetra Pak won many important clients from these two industries. Yili, Chinas biggest dairy producers, has to pay Tetra Pak 0.5 yuan for every cardboard package to contain the milk, which in turn is sold at 2.3 yuan. The cost of Tetra Paks package makes up about 40% of the price of the milk. Besides its Shanghai headquarters, Tetra Pak now has three jointventures and nine offices located in Beijing, Hong Kong, Xiamen, Harbin, Kunshan, and Foshan. Tetra Pak also has sales and marketing offices. Together, these offices make up a distribution network covering the whole of China. Tetra Pak has one solely-owned factory in Kunshan, two joint-venture factories in Beijing and Foshan, as well as a processing equipment system center in Shanghai.
19

TetraPaksSuccessFormulae
Tetra Paks main strategy in its success in China lies in its three-prong formula: High technical requirement helps to keep out competitors Low cooperative requirement attracts customer cooperation No requirement of all-round services win customer dependence.
20

TetraPaksCoreCompetencies
Tetra Pak always advocates the principle of growing with customers. Hence, it never stops perfecting the Partner Relationship Management (PRM), the very core of Tetra Paks customer value driven B2B solution.

21

PRM 1: Equipment Investment

For many growing small-scale dairy companies in China, it would mean heavy financial burden having to invest in the machinery for packaging milk. Tetra Pak worked out a program for equipment investment which enabled customers to install the Tetra Pak Fino equipment with only 20% payment required upfront. The remaining 80% of payment would be exempted as long as they order certain quantity of packaging materials annually in the next four years. Tetra Pak quickly expanded its market share and became the first choice for almost all dairy producers in China, keeping its competitors out of the Chinese market successfully. For old equipment replacement, Tetra Pak had another program known as old equipment-money conversion, which helped replace the old equipment at low costs, provided the companies continued buying packaging materials from Tetra Pak.

22

PRM 2: Market Information Sharing

Tetra Pak uses its world-wide information consulting system to realize business information sharing with its customers.
Besides, Tetra Pak edits the Tetra Pak News including market information, industry news, and relevant statistics, which is provided to customers for free. Tetra Pak has given so much information to customers that many of them regard Tetra Pak as a management consulting company which provides investment advices and professional marketing services, besides being an equipment seller and package material supplier.

23

PRM 3: Human Resources and Training

Tetra Pak is generous in providing training sessions for its customers. These training sessions range from the most basic ones to various high-level ones. Tetra Pak is also active in recommending consulting company and training company, arranging visits to relevant companies, and even looking for higher management talents such as CEO around the world for its customers. These are either free of charge or with some nominal charge.

24

PRM 4: Value-added Services

Tetra Pak not only offers its customers help in packaging products and equipments, but also helps them to grow in other aspects such as market surveys, package designing, channel promotion, and finance. One of Tetra Paks important competitive edges is to provide valueadded services. In order to implement this idea, Tetra Pak establishes strategic cooperating partnership with downstream factories and carries out its embedded customer services. Being the system supplier, Tetra Pak works with customers in exploring markets and marketing communication efforts, trying to work out solutions for win-win situations.
25

PRM 5: Qualified Account Team

Tetra Pak sets up a key account management team that offers customers professional support and service; including quality control, marketing, technology, processing, research and development, finance and management. Every key account manager of Tetra Pak helps to integrate, organize, and balance the necessary work force and resource for each of its customer. Working closely with its customers allows Tetra Paks account teams to know of problems first and to seek solutions fast. In this process, Tetra Pak not only ensures service quality but also converts the cooperation between individuals into team cooperation.
26

PRM 6: Develop the Consumer Market together with its Business Market
Chinas dairy producing spots are scattered all over the country, resulting in inconvenience in transporting fresh milk that can easily turn sour.
Based on this, Tetra Pak develops the Tetra Pak Fino, which solved the problems in milk packaging. Tetra Pak Fino ensured safety, convenience, and a longer shelf life for the milk, thus allowing consumers in remote areas to access high quality milk. Tetra Pak Fino
27

PRM:7TetraPaksIngredientBrandingandSocially Responsible Marketing

Tetra Pak values its brand influence in China very much, and it pushes the B2B brand establishment through ingredient branding. In 2005, Tetra Pak officially publicized its new logo Tetra Pak, protects whats good, which has been attached on customers packages. In this way, Tetra Pak exposed its brand to the final consumers, and also pulls markets together with its customers brands. Tetra Pak also promotes its brand image and brand value through Socially Responsible Marketing. It always pays attention to and supports various environmental issues and public interest undertakings. One example is its sponsorship programs to raise environmental protection awareness and to spread environmental protection knowledge among youngsters. It spares no effort in promoting recycling; and has sponsored a program --Action 120 for the Safety of Mother and Baby to help alleviate poverty.
28

Tetra Pak supports green plastic

In November 2009, Tetra Pak reached an agreement with the largest Brazilian petrochemical company, Braskem SA, to purchase limited volumes of high-density polyethylene (HDPE) derived entirely from a renewable feedstock. The agreement represents the first move towards using green polyethylene in the carton packaging industry

29