Metso Paper – B2B Marketing Plan for StreamLine
Onsider Wrapping Machine

von: Robert Borchel

Contents

List of abbreviations

Executive Summary

1. Introduction  p.1

1.1 Company profile p.1
1.2 Company history in brief p.2
1.3 Metso Paper structure  p.2

1.3.1 Paper Business Line  p.3
1.3.2 Board Business Line  p.3
1.3.3 Tissue Business Line  p.4
1.3.4 Fibre Business Line  p.4

2. Situational analysis. p.5

2.1 Paper machines - Market summary p.5

2.1.1 Market Needs  p.6
2.1.2 Market Trends  p.6
2.1.3 Market Growth  p.7

2.2 Porters Five Forces  p.8
2.3 SWOT analysis  p.9

2.3.1 Strengths p.9
2.3.2 Weakness  p.10
2.3.3 Opportunities  p.10
2.3.4 Threats  p.10

2.4 Competition   p.11

2.4.1 Saimatec  p.11
2.4.2 Voith Paper  p.12
2.4.3 Metso’s own competition position   p.13
2.4.4 Financial figures in 2004  p.14

2.5 Product offered p.14
2.6 Production  p.16
2.7 Keys to success p.19

3. B2B – Marketing strategy  p.21

3.1 Mission  p.21
3.2 Target markets  p.21
3.2 Marketing Mix p.23

3.2.1 Product p.23
3.2.2 Price p.24
3.2.3 Place p.24
3.2.4 Promotion p.25

4. Financials p.26

4.1 Sales Forecast  p.26
4.2 Calculation of contribution margin p.27
4.3 Expense Forecast p.28
4.4 Marketing expense budget  p.28

5. Implementations  p.29

5.1 Controls p.29
5.2 Marketing organisation p.29

Literature and Sources

Appendix
 

List of abbreviations

AEX = Euronext Amsterdam (stock exchange)
B2B = Business-to-Business
Corp. = Corporations
EU = European Union
[...]
[...]
R&D = Research and development
ROI = Return on investment
′TBE = The Benchmarking Exchange




Executive Summary

The following marketing plan gives a review about the paper industry company Metso Paper. Furthermore we focus on the Business-to-Business relationship Metso has with its customers and partners. The first part of the available report contains a brief introduction about the Metso Corp. and its business field Metso Paper. It shows a company profile, the company history in brief and some key figures about Metso Paper.

In the second part we analyse the actual situation and give an overview about the paper machine market, the competition and the product we want to offer. Furthermore this part contains Porters Five Forces, a SWOT analysis, gives keys to success and information about the production process.

The B2B - Marketing strategy is the third part of this report and show the mission, target markets and the marketing mix for our product – paper machines.

In the fourth part we explain the financing of our marketing plan and show a sales forecast, calculation of contribution margin, expense forecast and the marketing expense budget.

With the fifth part we give an overview about the controls and how we organise all the marketing actions.

1. Introduction

1.1 Company profile

Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The Corporation′s core businesses are fibre and paper technology, rock and minerals processing and automation and control technology. The corporation is divided to 4 business areas: Metso Paper, Metso Minerals, Metso Automation and Metso Ventures. Metso has business operations in over 50 countries. The most important customers operate globally in the pulp and paper industry, the mining, construction industries, aggregate production, the energy and process industry and the mechanical forest industry. This marketing plan is specifically for Metso Paper and its new product One-Sider wrapper.

Metso Paper is a global supplier of papermaking, tissue making, pulp making and board making lines. It serves pulp, paper, tissue and board manufacturers throughout their processes – from pulp making to the wrapping of finished rolls. Today a growing share of its business is concentrated on aftermarket operations.1

1.2 Company history in brief

The history of Metso Corporation goes all the way back to 1750’s when it started as a small shipyard in Viapori. Later in the early 20th century it ended up in the ownership of the Finnish state and become part of Valmet. At least three of the companies forming part of the present Metso Corporation date back to the 19th century. These companies are The Karlstad foundry (Sweden 1865), Sunds Bruk (Sweden 1868), and the Nordberg Manufacturing Company (United States 1886).

Metso as we know it today was created through the merger of Valmet and Rauma in 1999. Both companies were specialised on different segments; Valmet being paper and board machine supplier, while Rauma’s operations were focused on fibre technology, rock crushing and flow control solutions. The merger produced an equipment supplier serving the global process industry; the Metso Corporation later creating the Metso Paper business area.2

1.3 Metso Paper structure

Metso Paper′s organization will be divided into seven business lines, which include service functions:
• Paper Machines
• Board Machines
• Panel board Technology
• Tissue Machines
• Converting Equipment
• Mechanical Pulping Technology and
• Chemical Pulping Technology

Metso Paper′s Board consists of Tor Bergman, Chairman and Sakari Tamminen, Vice Chairman. Other members of the Board are Arto Aaltonen, Juhani Pakkala, President of the business area, and Vesa Kainu. Harri Luoto is the Secretary of the Board. 2

1.3.1 Paper Business Line

Metso Paper′s Paper Business Line is the industry′s leading supplier of lifecycle solutions. Through its global presence and local networks the Paper Business Line delivers services, process improvements, machine rebuilds and new installations for the entire lifecycle of the customer′s production processes. Metso Paper′s Paper Business Line employs some 5000 professionals worldwide.

Metso Paper produces new paper machines and production equipment as well as offers machine rebuilds and service. The product lines also include new machines, machine rebuilds and service for coating, calendaring, winding and roll handling, and chemical handling equipment for paper mills.

A typical paper machine costs between EURO 50 million and EURO 100 million and produces from 200,000 to more than 400,000 tons of paper per year. These machines are designed to meet specific customer needs and are used to produce fine paper (for office stationery), newsprint, super calendared and coated paper (for magazines and similar publications) and coated base papers (for brochures and art purposes).

1.3.2 Board Business Line

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1 Note http://www.metso.com - last access 05.05.2005

2 Note http://www.metso.com - last access 05.05.2005