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The cons of the plan is it may incur large investment costs, also the research time can be significant. MaterialArenasKeep current market and focus on innovative recycled and recyclable food packaging material to provide diverse packaging materials solutionsVehiclesBy increasing investment in R&D and utilizing new technologyDifferentiatorsTo achieve maximal value by achieving both the packaging function and ecological sense. To catch more markets’ attention by providing innovative and helpful productStagingImmediately begin wide research and develop process to explore more innovative and recyclable food packaging materialsEconomicSales will increase as more innovative materials developed to be applied in different products in different marketProsTetra Pak | 8
-Enhance brand image and positioning. Company has positioned itself as a sustainable, responsible, environmental one to bring added value to food industry-High expectations of improvement on packaging materials in an ecological way. Consumers expect improvement on cartons, so demand will increase-Employees and customers would be satisfied with Tetra Pak’s environmental positioning-The organization can develop more innovative culture through the greater utilization of new technology. Cons-Large investment in R&D process-Time consuming as the company may need moretime in R&D processOption Two: Product/service diversificationOverall, the market segment for Tetra Pak is still monotonous and more products and services should be developed and explored for a variety of industries such as niche food categories, and even luxuries and cosmetics. Tetra Pak financial reports for the past 5 years show that the market segments have been dominated bydairy products. From 2014 to 2017, the main product utilizing Tetra Pak services and materials are dairy products and on average, dairy products occupied more than 60% of the whole market. Till 2018,the percentage dropped to 37% the percentage for cheese product increased, because in 2018, it has equipped one of the largest cheese plants in southern Russia by partnering with Russian producer. The economic logic behind the option is that sales will increase as more partners bring more opportunities regarding the utilization of the paper packages on different products.To achieve the goal, Tetra Pak needs to keep its original differentiators: to fully take advantage of its existing competitive advantage, brand reputation and expertise in the industry.For staging, Tetra Pak can conduct several pilot projects domestically or globally to discover and explore potential partnership in the future. Even Tetra Pak can try stepping out of the food packaging market and collaborate with cosmetic companies, luxurious and fashion brands to provide packaging solutions for a variety of products.