Tetra Pack(A)

Group - 4

Tetra Pak’s SWOT analysis

STRENGTH WEAKNESS

80 % of market share in Carton Depend on sale of dairy product.

Innovator of aseptic technology Decline sales of milk in Europe.

Good relation with Pontero and Key supplier for big milk companies.

OPPORTUNITIES THREAT

Rise of new “enriched milk” business Potential threats from Combibloc in Cartons market with aggressive pricing strategy and new designs

Opportunity to start in plastic market Reduction of full-fat milk demand. 

Relationship with Pontero was in danger.

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.

Pontero’s problemsLost 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 marketDecline 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 PonteroIntroduce 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