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Tetra Pak CSI

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Marketing analysis plan 3

Case Overview: Tetra Pak A&B
The two cases here focus on Tetra Pak's Italy division in the context of Tetra Pak's worldwide business. The Tetra Pak (A) case outlines the situation Tetra Pak Italy faced in 2000 with one of its most important customers, Pontero, the second largest dairy company in Italy. The end of that case finds Tetra Pak with "one more chance" to right relations with Pontero. The (B) case shows how Tetra Pak both recovered from its stumble and faced further challenges from Pontero. As a result of this and other customer problems, Tetra Pak's corporate headquarters institutes a Customer Satisfaction Initiative (CSI) program. Tetra Pak Italy participates in the second round of that initiative and receives satisfaction scores management doesn't like.

Discussion Questions
1. Should the CSI program be rolled out to all Tetra Pak market companies?
2. Assume the CSI program is rolled out. Suggest ideas on how to best do this.?

Notes/Tips
• Use the (A) case to understand Tetra Pak's worldwide business and Tetra Pak Italy's relations with Pontero.
• Use the (B) case to evaluate the customer satisfaction initiative.
Note the €50,000-70,000 cost for a survey (B case p. 5) is per crown jewel account.
• What business design (see Week 1) does Tetra Pak use to serve key accounts? How does CSI help manage this design?
• We will discuss Tetra Pak as a whole, but use the Tetra Pak Italy-Pontero relationship as a case example of how CSI can or cannot improve customer satisfaction for a Tetra Pak customer. Does the CSI program help Daniel Fortina understand how to move the Pontero relationship forward?
• Consider the culture and organization of Tetra Pak as part of addressing question 2.

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Solution Summary

An analysis of how CSI could help Tetra Pak is examined.

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CASE: TETRA PAK
Tetra Pak offers total packaging systems consisting of proprietary machinery, materials and services to companies. The main intent for designing packaging solutions for customers is to help them save more costs than it costs to buy Tetra Pak packaging. Tetra Pak offers plastic packaging (for which it acquired Alfa Laval, a food -processing equipment manufacturer) and carton packaging. In liquid foods market, Tetra Pak has global knowledge base that is unique in the industry.
Italy is a big market for Tetra Pak as is evident by the account management structure that Tetra Pak has set up specifically for customers in Italy. It was established to facilitate close working relationship with the strategic customers in Italy that had high quality management, were innovative in marketing and willing to invest for long-term category growth. Major customers of Tetra Pak in Italian milk market include Pontero, Andina and Filo. The marketing unit of Tetra Pak worked closely with customers' in-house marketing group by analyzing market and even offered strategies for new product launch, advertising and promotion.
The milk market was segmented into four product categories- full fat (majority of market share but low margins), Semi-skimmed (Higher priced with higher margins), Skimmed (Higher priced with higher margins) and Enriched (lowest market share, premium prices and highest average margins). Tetra Pak worked closely with its customers to differentiate their products with distinctive packaging. To counteract overall decline in milk consumption, Tetra Pak adopted this differentiation strategy to offer custom products ...

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