The Italian Milk Market is divided between three milk companies: Pontero, Filo, and Andina. Tetra Pack sells their products to all three of these companies, but while Filo and Andina buy from Tetra Pack and their competitors. However, Pontero buys 100% of their liquid foods packages from Tetra Pack. This is why Pontero is considered to be a model for other Tetra Pack customers in order to see the relationship that Tetra Pack wants to achieve with other customers. Tetra Pack has always given advice to Pontero to do research. For example, giving advice to Pontero regarding the introduction of a new juice line, which now forms a large sum of their total revenue.
Over the last few years Pontero has decreased its sales in families with children. In contrast, Andina has increased their sales in this sector. This is due to the fact that Filo and Andina have introduced an enriched milk element in their newer products. But on the other hand Pontero has been against this new enriched milk, claiming it is artificial. Consequently, Pontero launched a publicity attack in order to damage the reputation of enriched milk products due to their artificial nature. Pontero did this by showing numerous advertisements.
The relationship between Pontero and Tetra Pack has been profitable for both parties since they started working together. Having Tetra Pack as its partner in doing market analysis and research in order to increase Montero’s net sales. Pontero has always trusted Tetra Pack, thus establishing a mutually beneficial alliance. Pontero has looked at Tetra Pack as its mentor in re-establishing its market share. This could have negative consequences for Tetra Pack because the more sales Pontero losses, the more losses Tetra Pack attributes to itself.
Usually Tetra Pack benefits from Pontero and vice-versa. This could also have a counter productive effect, in which both parties lose. Tetra Pack is interested in helping Pontero get out of the...