During AG (Fottle)

A detailed Summary of During AG (Fottle)

In the 1980s the Fottle, During AG's, latest development in liquid packaging had proved its success in the detergent industry throughout most of Europe. Walter During, owner and manager of the Swedish company was determined to take his incredible product as far as the highly competitive non-carbonated drink market, namely the growing French liquid milk industry. During noticed the favorable potential in this industry when he became aware of the trend in switching from "paper" (carton packaging) to "plastic." The Fottle was sure to succeed but challenging decisions dealing with segmentation of dairy corporations, and entry barriers for the targeted markets forced During to heed his speedy introduction of this foldable bottle.

The Fottle is an environmentally sound, low cost plastic bottle, whose concept appealed to detergent producers who were becoming ecologically aware and economically concerned. The Fottle's situation analysis is extremely varied but by using "SWAT" it can be simplified. The Fottle's strengths are many which is why its success was almost predetermined. This product markets itself on four main characteristics: cost reduction, environment cautious, differentiation through its des

Not only is the Fottle economically desirable but it is also versatile. During AG has made this product so that its molds come in 4 different shapes, and the sizes can range from 20cl to 3 liters. This is why During AG's experience with the detergent industry is an asset to the marketing of the Fottle. During was accustomed to dealing with packaging innovation technologies in the detergent industry and the liquid milk market was becoming just as competitive. The Fottle's success was almost guaranteed in the milk industry because differentiation by packaging is extremely important in an industry where the product is essentially uniform.

Walter During's determination of making France the entry country for the Fottle was also a great decision that opened many windows of opportunity for his innovative product. The liquid milk industry in France is so big that it has become the third largest producer on milk in Europe. France was also the leader in plastic packaging for milk, where more than 18% of milk is sold in plastic containers. During hoped to involve the Fottle in this percentile and actually increase the sale of plastic packaging in the milk industry. Another auspicious condition for the Fottle was a growing trend in the French market of consuming high-value, fresh food products due to the forecasted end of the recession. This trend brought a variety of new milk drinks for niche markets, an increase in the consumption of breakfast cereals, and the introduction of the "6 pack of milk." This new "6 pack" was only one indication of the repositioning of milk from a kid's drink to a beverage for healthy !

During AG should definitely rule out attempting to enter the market under the industries private labels. Not only are these brands restricted to retail chains but they cannot be competitive when it comes to pricing, and in this industry besides differentiation through packaging, consumers also differentiate through price. The premier prix are also well-suited candidates for the Fottle. They have a competitive pricing policy that appeals to consumers, which is the reason for their growing market. The one reason for not choosing the discount brand would be that they depend on low production costs for growth, and the Fottle would definitely raise their low manufacturing policy. Furthermore they subcontract small producers to supply their product, which is not going to work for too long if they are facing a growing market.

The Fottle also faced threats from its competition. The liquid milk industry was dominated by carton packaging, which is more space saving for distribution than plastic containers. Most dairy farmers could not afford to spend extra money on distribution because of the price wars they were fighting with Eastern European corporations. Also the competition from other plastic-producing firms was beginning to appear on the horizon. Tetra Pak acquired a plastic packaging technology and also introduced a pl

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Approximate Word count = 1996
Approximate Pages = 8 (250 words per page double spaced)

Category: Miscellaneous