Tetra Pak Business and Innovation Models
1) Tetra Pak as a Market Pull model for innovation.
Before the introduction of Tetra Classic pack in 1952, milk was sold unpackaged, in returnable glass bottles, in groceries and small stores. Distribution was by horse-drawn cart, which took days to reach certain areas. As self service stores gradually replaced traditional groceries, it led to the need for a more practical and hygienic system for selling milk. Tetra Pak's packaging process enabled milk to be stored for extended periods of time without the need for temperature control. The Tetra pack succeeded in solving both distribution and hygiene issues, while also making the sale of milk in self-service stores simpler and more practical. Since then, Tetra Pak has essentially followed a market pull model for innovation, diversifying into related food products and beverages for packaging.
Tetra Pak Marketing Innovations : The Integrated Value Chain Model.
Tetra Pak has also been highly innovative in their approach towards marketing their products in emerging markets. Emerging markets, such as India and China, had initially posed a similar scenario when Tetra Classic Pack was launched in 1952. Tetra Pak's presence in these markets has not been new, however by modernizing and revitalizing the Tetra Classic System they were confident of meeting the needs of such markets.
The focus of the Tetra Pak business model in emerging markets consisted essentially of two elements: advanced technology for processing and packaging of liquid food, and the development of a network of partnerships with the public and private sectors. They focussed their operations in two fields : school milk programs and consumer drinks outside the home, based on the consumption characteristics and habits of these emerging countries. However, due to the inability of many dairy farms and processing plants to purchase its valuable technology and machinery, Tetra Pak faced the...
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