B2B Marketing & Tetra Pak
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Presented By:Amit Kumar Singh
Ashok Mehrotra
Dhruv Uppal
Govind Singh Bhati
Saurabh Shukla
Trishala Chaudhary
Vivek Dwivedi
Presented To:Prof. Maninder Singh
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“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. POLYETHYENE
2.
PRINT
3.
PAPERBOARD
4. ALUMINIUM FOIL
5.
POLYETHYLENE
6.
POLYETHYLENE
What consumer says…
• 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%
Sales
Liquid dairy
products
Juice & Necters
8,30%
Still drinks
18,50%
63,20%
Wine & spirits
Others
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TETRA PRISMA
TETRA FINO
TETRA WEDGE
TETRA GEMINA
TETRA CLASSIC
TETRA TOP
TETRA BRIK
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
such as : Cartons, Paper, Poly bags, cans & tins, etc…
Because of two main factors viz.,
STERILIZATION
&
HYGIENE FACTOR
Tetra Pak’s B2B Operations
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 world’s 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 China’s aseptic packaging market, after
becoming the largest soft packaging supplier.
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Tetra Pak in China Contd…….
• With the rapid development of China’s soft drinks and dairy produce
markets, Tetra Pak won many important clients from these two
industries. Yili, China’s 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 Pak’s 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.
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Tetra Pak’s Success Formulae
Tetra Pak’s 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.
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Tetra Pak’s Core Competencies
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
Pak’s customer value driven B2B solution.
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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.
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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”.
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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.
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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 Pak’s 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.
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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 Pak’s 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.
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PRM 6: Develop the Consumer Market together with its
Business Market
• China’s 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
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PRM 7: Tetra Pak’s Ingredient Branding and Socially
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
what’s 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.
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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
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