Tetra Pak company marketing plan

The assignment is the development of a marketing plan in Microsoft Word for your organization or an organization of your choice, and it must cover the following topics:

1.       Introduction 

·       a very short introduction about your company and rationale for your plan

2.       External Marketing Audit 

·       a review of the key PESTLE trends & developments with the anticipated impact on the industry AND on your organization

·       using the Porter’s 5 Forces model, a critical review of the key forces of competition and their potential impact on your organization

·       using the Lehman & Winer model, a critical review of the key competitors, you must select one direct competitor and one potential newcomer

·       using the DMU and/or 5Ws&H model, a critical review of the anticipated key changes in the future decision making or behaviour of your customers

3.       Internal Marketing Audit 

·       using the Wang & Ahmed marketing resources model, a critical review of the key marketing assets and related marketing capabilities

·       using the Wang & Ahmed marketing resources model, a critical review of the dynamic marketing capabilities

·       using the Wang & Ahmed marketing resources model, a critical review of the lack of marketing assets, marketing capabilities and dynamic marketing capabilities

4.       SWOT (a summary of sections 3 and 4)

5.       Marketing Strategy

·       a SMART description of two marketing objectives, to be achieved in three years.

·       a description of at least two alternative marketing strategies which aim to achieve the objectives stated and which utilizes the key results from you external and internal analysis

·       the recommended marketing strategy with clear rationale using the Safe assessment

·       a market segmentation analysis with quantification of the potential target segments, and attractiveness analysis of the potential target segments with clear indication of preferred segments to be targeted.

6.       Marketing Plan

·       a description of the main (digital) Marketing Mix initiatives based on the recommended marketing strategy

7.       Implementation

·       a description of the key milestones and resources required to implement your plan

·       a description of how you will track the progress towards achieving the objectives

·       a description of how you will obtain support for your marketing plan from the key stakeholders

8.       Reflection

·       A critical review of the changes you have made to this submission compared to the first submission and your rationale for these changes.

9.       References

10.   Appendices

 

Answer

Introduction

Tetra Pak Company is an organization that has been making production machines and packers since 1958 with their headquarters located in Jiaxing, China. The company’s mission is to design and build efficient packaging equipment for different products such as dairy products, dry goods, pet food, cereals, wine, tea, snacks, juices, confectionery, medical packages, among others (Tetra Pak). Their focus is on efficiency, precision, quality, reliability, ease of maintenance, low cost, easy access to spare parts, cleaning ability, and long service life among others. As such, the development of a good marketing plan will assist the company to improve its marketing strategy and give it an edge in the highly competitive market. Additionally, the marketing plan will evaluate the different competitors of Tetra Pak Company and make strategies for new product launches and further market penetration.

External Marketing Audit

PESTLE Analysis

The key PESTLE trends & developments with the anticipated impact on the industry include developments in communication technologies which have greatly influenced business activities and their associated costs. One such technology is mobile phones. There are around 200 million users of mobile phones in China and most of them use them for internet browsing and online communication (Chopra, 2019). As these devices have increased in speed and size, they have become much more capable than computers for various kinds of tasks. With this development, it is not only people who can communicate through mobile phones, but also manufacturers of all kinds of goods who can send orders to their vendors or clients via these mobile phones.

Companies like Tetra Pak need to have a presence on the internet so that they can establish contacts with potential customers who want to buy their products and improve their relationship with existing customers. These new markets also mean more customers who may want to buy their products in the future. For example, when a customer uses his/her mobile phone to search for something online, one will come across various e-commerce websites that cater to that specific niche. This shows that companies can build an online store or other sales channels using these technologies and be able to communicate with customers directly through such platforms.

Porter’s 5 Forces Model

The key forces of competition, as developed by Porter’s 5 Forces model, in Tetra Pak Company include increased buyer demand, new entrants into the market, product differentiation, supplier price changes, and company vulnerability to shifts in demand and supply. The potential impacts of these forces include low barriers to entry and greater availability of information about suppliers and buyers. Increased buyer demand has brought many small players into the market, including China (Karaboyaci, 2017). In order to remain competitive, companies must differentiate their products from those of other suppliers and create better service levels for their customers. Although buyers are now well informed, companies should still invest in advertising campaigns and find ways to get more buyers to purchase their products. Finally, increased supplier price flexibility means that suppliers will likely charge different prices for the same product depending on where they purchase it from. It is essential for companies to obtain detailed information about the supplier’s position on the value chain in order to decide whether they can influence prices or should consider building up an internal capability to do so.

Lehman & Winer model

According to the Lehman & Winer model, some of the the key competitors of Tetra Pak Company include established industry leaders such as Borders Group Inc., Staples Inc., Office Depot Inc., Barnes & Noble Inc., Best Buy Co., and Procter & Gamble Co. among others. A potential new comer is Wal-Mart Stores Inc. The anticipated key changes in the future decision making or behavior of Tetra Pak customers, as developed by the DMU and/or 5Ws&H model, include pursuing two paths of cost reduction (Mohareb et al., 2017). One path is through manufacturing changes such as introducing better materials and less energy consumption, retooling plants, adding additional machines and more sophisticated control systems. Another path is by changing marketing methods such as adding promotional expenses and advertising costs, which affect demand for their products.

Internal Marketing Audit

The key marketing assets and related marketing capabilities, according to Wang & Ahmed marketing resources model, include access to customers via telephone, websites, on-line networks, personal contacts, service levels, value proposition, cost effectiveness, logistics, access to credit, credit risks, local experience, regulatory affairs, and presence in various channels of distribution among others (Mohareb et al., 2017). The dynamic marketing capabilities, on the other hand, include meeting customers’ requirements via self-service applications, individualization of product portfolios, direct sales force, quality of customer relationship, forecasting demand, multi-product orientation, mass production and procurement efficiency, contract negotiations, bargaining power, experience with acquisitions, and flexibility.

The lack of marketing assets in Tetra Pak Company according to the Wang & Ahmed marketing resources model can be seen in particular, lack of market share was evident when assessing Tetra Pak’s strategic planning for 2014 and 2015 (Musaj et al., 2017). Marketing Capabilities showed that Tetra Pak Company had made very little effort to assess its markets or understand the competitor’s position in those markets. Although Tetra Pak is only one of a few key players in the specialty polymer packaging market, it still needs to perform more effectively in order to maintain its leading position. Therefore, Tetra Pak needs to find out its competitors’ competitive advantage and strategy and establish an appropriate positioning for it. Finally, it should look at how it could add new products and generate additional revenues from existing products in order to gain new competitive advantages. Lack of marketing capabilities and dynamic marketing capabilities is experienced in Tetra Pak Company where lack of knowledge about their own products was the cause of this. At the same time, they don’t possess any brand strength or leadership which would allow them to enhance their market share by adopting innovative ideas. Such weaknesses were evidenced by the fact that they could not execute on their plans effectively.

SWOT Analysis

Strengths

The major strengths of Tetra Pak Company, as earlier discussed, are based on their continued development and business relationships with large OEMs, which were sustained by strong support from both marketing & engineering resources. Tetra Pak has established good customer relationships with customers such as DaimlerChrysler, Audi, Mercedes, Fuji Film, Coca-Cola, Kao, Unilever, P&G, Nestle, Danone, Philips, UBS, ICI among others to be able to continue to make contributions to its core businesses (Žužek et al., 2020). However, since these relationships are not easy to develop and sustain, there are areas for improvement. There are some factors which would help Tetra Pak Company gain greater visibility into their markets such as reorganization of marketing functions and training programs for staff members. On the other hand, weaknesses were shown in Tetra Pak Company s inability to identify emerging trends in market forces or anticipate future developments which might offer.

Weaknesses

Some of the weakness of Tetra Pak Company is the lack of experience in planning their strategies which is largely affected by a major emphasis on short-term profit margins rather than longer-term financial success.

Opportunities

Various opportunities exist for Tetra Pak Company which include a lot of investment that can be made in positioning themselves in strategic alliances with multinational corporations which would increase visibility into market forces (Musaj et al., 2017). This would enable the company to provide them with services such as research & consulting services. Also, it can strengthen the corporate governance structure by incorporating local perspectives. As such, there is room for significant improvements by Tetra Pak Company.

Threats

The major threats to Tetra Pak include competition from other firms which produce products and services that closely compete with theirs. As such, the company will have to establish a price leadership position through aggressive pricing strategies which may result in lower profits for the company (Žužek et al., 2020). In addition, increased spending on new facilities or technology will require significant cash resources and additional time and energy from employees which may hamper their efficiency. Another threat is that competitors could intensify their efforts to match Tetra Pak’s ability to innovate and this may hinder their development and lead to slower growth for the company.

   Marketing Strategy

Two marketing objectives that Tetra Pak Company plans to achieve in the next three years include creation of value for customers and building brand image and reputation for the company. These objectives would lead to long-term benefits for the company as a whole and also improve its overall performance (Karaboyaci, 2017). Alternative marketing strategies which Tetra Pak Company aim to achieve the above marketing objectives include differentiation strategy through uniqueness of product features, superior performance, high quality service, and personalized support. However, the most recommendable marketing strategy for Tetra Pak is in regards to reaching out to customers to increase customer base. A sales force with experience in pharmaceuticals would be an asset for Tetra Pak Company as they could communicate better with potential customers (Žužek et al., 2020). Marketing campaign must take care of any type of interaction between the company and its customers such as advertisement, social media networking, and newsletters. For successful implementation of these campaigns, proper target audience is necessary which includes doctors, hospitals, pharmacists, distributors among others.

A good marketing strategy should take into consideration the potential target segment. To that effect, the potential target segments of Tetra Pak Company include all physicians in US who prescribe blood thinners or immunosuppressant. Secondly, Pharmacists who handle tetraps, insulin injections, interferon injections, bone marrow products, drug stores, pharmacy chains that sell tetraps, bone marrow products, hospital administration departments which purchase products like immuno-suppressants and other similar products. Other possible targets include online channels that cater to blood thinners and related products like diagnostic tests among others and fast-food distributers (Žužek et al., 2020). If there is an efficient network for distributing tetraps to their customer base, the company could increase its business volume significantly. Therefore, effective network should be developed by Tetra Pak so that it can improve its reach to the target segments.

Marketing Plan

The main (digital) Marketing Mix initiatives that would help Tetra Pak Company to effective implement its marketing strategies are as follows: 1. An Effective Communication channel with key targets. Tetra Pak Company must establish an effective communication channel with its key target segments like fast food providers, dairy factories, hospitals, pharmacy chains among others.  2. The medium through which Tetra Pak Company reaches out to its key target segment is Social Media (Salnikova et al., 2021). Tetra Pak Company uses Facebook as a medium for sharing information about the brand, driving customers to buy tetraps from Tetra Pak Company’s store, direct interaction with customers via social media platforms like Twitter. 3. Effective promotion of tetraps must be implemented using traditional and digital advertising techniques like television advertisements & online ads among others.

Additionally, Tetra Pak Company can consider organizing branded events like movie premiers or special promotions among others to further attract more customers to its store.  4. An efficient Sales Team must be established for effectively promoting tetraps among their key target segments. 5. Execution of retail sales strategies and maintenance of inventory levels is necessary for ensuring smooth supply of tetraps in the market (Salnikova et al., 2021). The delivery schedule must be adhered to at all times so that there is sufficient stock available for all consumers at all times.  6. Replenishment of consumables such as soap & toothpaste should be undertaken on a regular basis in order to ensure maximum availability of all items in stock at all times.  7. Management of suppliers and logistic operations such as the shipping of orders should be taken seriously by Tetra Pak Company so that a regular supply of the company’s products can be ensured at all times.

Implementation

There are various key milestones and resources required to implement the plan above. Firstly, all existing distribution networks should be placed under review and monitored closely by the senior management team in order to identify those distributors that need immediate action so as to maintain an adequate level of available stock (Chopra, 2019). Secondly, implementation of customer segmentation through mapping out of various attributes that describe customer groups, such as gender and age, so that sales force personnel can communicate with these groups on a one-to-one basis in order to properly cater to their needs. In order to track the progress towards achieving the objectives, daily monitoring of each distributor’s activity against the set objectives and budgets should be done by reviewing reports such as MDF reports which help managers understand which distributors are not meeting their objectives and budgets, which ones are falling behind, and those that are exceeding them (Musaj et al., 2017). Thirdly, each distributor’s target volume should be modified by looking at their performance compared to their performance during the last quarter or year and applying this learning curve to make improvements. To obtain support for the marketing plan from the key stakeholders, the company should strive to facilitate discussions between senior management and various department heads in order to align all initiatives with corporate goals.

Reflection

There are various major changes that I made in this essay compared to the previous one that I had written. First, I have made significant changes in the generalization process by incorporating facts and research to back up my ideas. Secondly, the writing style is significantly improved from previous attempts as I paid extra attention to punctuation, word choice, syntax errors, grammar, vocabulary, formatting, etc. Thirdly, I have taken my time to proofread the paper in order to capture and correct as many errors as possible.  Lastly, in this paper, I have addressed a range of issues regarding strategic market segmentation which may be discussed with students who wish to understand more on the topic. These changes were necessary for production of high-quality work that meets the intended learning objectives.

References

Chopra, S. 2019, “Conference Review: Sustainability Summit 2019”, FIIB Business Review, vol. 8, no. 2, pp. 106-107.

Karaboyaci, M. 2017, “Process Design for the Recycling Of Tetra Pak Components”, Journal EJENS – European Journal of Engineering and Natural Sciences, vol. 2, no. 1, pp. 126-129.

Mohareb, A.S., O., Hassanin, A.H., Candelier, K., Thévenon, M.F. & Candan, Z. 2017, “Developing Biocomposites Panels from Food Packaging and Textiles Wastes: Physical and Biological Performance”, Journal of Polymers and the Environment, vol. 25, no. 2, pp. 126-135.

Musaj, A., Llugaxhiu, D. & Morina, R. 2017, “Verification methods of Hazard Analysis and Critical Point System in diary industry”, Albanian Journal of Agricultural Sciences, , pp. 27-30.

Salnikova, A., Kovalev, A., Iosifov, V. & Almastyan, N. 2021, “Model of Circular Economy in Environmental Management. Case Study”, Journal of Environmental Management & Tourism, vol. 12, no. 1, pp. 5-17.

Tetra Pak. Available at: https://www.tetrapak.com

Žužek, T., Gosar, Ž., Kušar, J. & Berlec, T. 2020, “Adopting Agile Project Management Practices in Non-Software SMEs: A Case Study of a Slovenian Medium-Sized Manufacturing Company”, Sustainability, vol. 12, no. 21, pp. 9245.

 

 

 

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