Tetra Pack(A)

Group - 4

Tetra Paks SWOT analysis

STRENGTH
80 % of market share in Carton
Innovator of aseptic technology Good relation with Pontero and Key supplier for big milk companies.

WEAKNESS
Depend on sale of dairy product.
Decline sales of milk in Europe.

OPPORTUNITIES
Rise of new enriched milk business

THREAT
Potential threats from Combibloc in Cartons market with aggressive pricing strategy and new designs Reduction of full-fat milk demand. Relationship with Pontero was in danger.

Opportunity to start in plastic market

Threat to partnership with Pontero

Pontero has looked at Tetra Pack as its mentor in re-establishing its market share but suggestion of introducing enriched milk was against his business model. Pontero was not ready to dilute the brand image.

Pontero has always trusted Tetra Pack judgment so Tetra pack was not expecting dismissal of their suggestion.

Ponteros problems
Lost 2.5 market share in single year while share of its two competitors increased approx. 1.5 each. Lost equivalent of 2.5 million liters of self space in last 18 month. Demand of enriched milk in all age group.

Challenges in Italian milk market

Decline birth rate in Europe. Old people were not taking milk. Growth of alternative beverages. Decrease in Full fat segment market of milk. Lower margin in branded milk. Increasing private label milk sales

Market analysis Enriched Milk

Opportunities Growing enriched milk product category. Established brand Increase in profit margin Threats Damage to brand image May lose share in other milk segment

Tetra Pak suggestion to Pontero

Introduce new product Milk Shake and advertise it as natural milk with natural Vitamin.

Develop a mind set that Milk is not only for children but also for adults. Develop a separate brand for enriched milk

Thank You