Metso Paper - B2B Marketing Plan for StreamLine Onsider Wrapping Machine


Term Paper, 2005
43 Pages, Grade: good

Excerpt

Contents

List of abbreviations

Executive Summary

1. Introduction
1.1 Companyrofile
1.2 Company history in brief
1.3 Metsoaper structure
1.3.1aper Business Line
1.3.2 Board Business Line
1.3.3 Tissue Business Line
1.3.4 Fibre Business Line

2. Situational analysis
2.1aper machines - Market summary
2.1.1 Market Needs
2.1.2 Market Trends
2.1.3 Market Growth
2.2orters Five Forces
2.3 SWOT analysis
2.3.1 Strengths
2.3.2 Weakness
2.3.3 Opportunities
2.3.4 Threats
2.4 Competition
2.4.1 Saimatec
2.4.2 Voithaper
2.4.3 Metso’s own competitionosition
2.4.4 Financial figures in 2004
2.5roduct offered
2.6roduction
2.7 Keys to success

3. B2B – Marketing strategy
3.1 Mission
3.2 Target markets
3.2 Marketing Mix
3.2.1roduct
3.2.2rice
3.2.3lace
3.2.4romotion

4. Financials
4.1 Sales Forecast
4.2 Calculation of contribution margin
4.3 Expense Forecast
4.4 Marketing expense budget

5. Implementations.
5.1 Controls
5.2 Marketing organisation

Literature and Sources

Appendix

List of abbreviations

Abbildung in dieser Leseprobe nicht enthalten

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.

Abbildung in dieser Leseprobe nicht enthalten

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.3

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

Metso Paper's Board Business Line supplies technology, processes and equipment for container and carton board production. These lifecycle offerings include services, process improvements, rebuilds and new installations. Metso Paper's Board Business Line employs some 900 professionals worldwide.

Metso Paper supplies machines for all board and packaging grades, the most important grades being corrugated board, linerboard, folding boxboard and liquid packaging board. A typical board machine costs between EURO 30 million and EURO 100 million and produces from 200,000 to more than 600,000 tons of board per year.4

1.3.3 Tissue Business Line

Metso Paper's Tissue Business Line offers technology, processes and equipment for new complete production lines, for all types of tissue production. These lifecycle offerings include services, process improvements, rebuilds and new installations. Metso Paper's Tissue Business Line employs some 900 professionals worldwide.

Metso Paper produces machines for manufacturing various types of tissue papers and continues to be a leading supplier of Thru-Air technology for tissue and towel. A typical tissue machine costs between EURO 10 million and EURO 35 million and produces from 10,000 tons more than 70,000 tons of tissue per year.5

1.3.4 Fibre Business Line

Metso Paper's Fibre Business Line is the leading supplier of environmentally sound technologies. Its offerings cover all technologies for the production of chemical and mechanical pulp, as well as recycled stock. Metso Paper's Fibre Business Line employs some 2200 professionals worldwide.

Chemical pulp is used for high quality paper products primarily due to its strength, printability and ability to maintain brightness. Mechanical pulp is used primarily for newsprint and magazine papers and certain paperboard grades. Metso Paper’s Fibre Business Line includes all process equipment and service necessary for complete fibre plants. Metso Paper offers fibre producers technology that significantly reduces the environmental impact of their operations.6

1.4 Key Figures

Metso Paper's net sales in 2004 were EUR 1,559 million, which was 38% of Metso Corporation's net sales. The business area employs approximately 9,000 people in 30 countries (q.v. Figure 1 / Figure 2 / Figure 3 at Appendix). This makes Metso Paper the biggest business area for Metso Corporation.7

2. Situational analysis

2.1 Paper machines – Market summary

Generally the paper machine market is a neck-and-neck race between the two leading companies Metso/Finland and Voith/Germany with a market share of 70% together. The global pulp and paper machine market estimated value of EURO 8–10 billion and Metso Paper is one of the global market leader in this business – means paper and tissue making lines. Besides the company is one of the leading suppliers of board making lines and pulp lines and supplies approximately 40 percent of the global market for large paper machines. Voith is the market leader at the paper recycling machine segment and the packaging. There are many small paper machine producer and one of them – Mitsubishi – tries to reach a market leader position as well. As a result of acquisitions and mergers, Metso Paper today supports a host of products from numerous companies. The three main companies and brands and currently covered by the Metso Paper umbrella are Valmet, Sunds Defibrator and Beloit. (q.v. Figure 4 at Appendix)

164 million tonnes of paper and tissue, 142 million tonnes of board, 166 million tonnes of wood fibre, 181 million tonnes of other fibre and 34 million tonnes of sack kraft and other paper / board were worldwide used in 2003.

Worldwide the USA is the biggest paper consumer (88 Mio. tons year) followed by the EU (76 Mio. tons), China (40 Mio. tons) and Japan (30 Mio. tons). The annual paper consumption per head is around 50kg at which the US American consumes 324kg and the Chinese just 29kg a year. In spite of the more and more increasing World Wide Web paper is not substitutable and the demand will increase annually 2.4% the next 50 years. The biggest paper producer at the world is the EU (82 Mio. tonnes) followed by the USA (80 Mio. tons), China (32 Mio. tons) and Japan (30 Mio. tons).8

2.1.1 Market Needs

Due to the really big costs (up to EUR 750 Mio.) for paper machines a close B2B relationship between seller and buyer is very important. Continuity at the market and the management, operating experience and know-how are very important in this industry. The customer requirements for new paper machines are normally very clear and depend strongly on their own customer demands (e.g. new printer technologies, new tissue products, etc.). Generally the demand for pulp and paper machines depends on the general economic outlook, trends in the demand for pulp and paper, the development of the price of pulp and different paper and board grades, as well as the capacity utilization rates of the manufacturers of these products. Nowadays rebuilds of existing machines are more common than building new machines

The worldwide around 8,800 paper factories with a production of 325 Mio tons paper a year demand mainly high quality and economic paper machines with short set-up times, short delivery times, new financial offers like leasing and a tailor-made all-round service of the paper machine producer. The plant utilisation of the paper machine is one the key factors in this industry for a successful business and that’s why the paper factories demand paper machines with lowest rates of failures as possible.9

2.1.2 Market Trends

The trends in the paper machine market are the reduction of costs for the paper production with lower set-up times, tailor-made logistics at the paper plants and in this reason a necessarily connection between paper machine and paper plant logistic system (more and more online). The trends in this market are also new requirements for paper machines due to new paper production processes, a better raw material utilisation, increased production capacity and higher speed machines at the paper production line. Generally the trend goes to rebuilding and updating of paper machines instead of investments in new production lines.10

In addition to the economic trends the paper machine industry takes care more and more about the requirement for sustainable development. At the last decades the environmental pollution while the paper production has been decrease noticeable. Due to new production line innovations the water consumption while the production process has been decreased about ordinary 33%. Today the paper factories produce around 1,000 tons a day and use more and more recycling paper (150 Mio. tons in 2002) as base for the production. That means the paper machine industry has to follow this trend as well and need to develop new innovative and environmentally sound paper production lines. Metso Paper develops technologies and service products that enable and support eco-efficient (pulp and paper) production in various situations: new lines, production increases and/ or tightening emission limits.

2.1.3 Market Growth

Due to changing market needs and the long term character of the paper machine market it is not easy to estimate the market growth in the future. Generally the paper machine market growth depends strongly at the economic situation and new markets for example in Asia. In China the paper consumption increase strong and there are many small paper producer which have to upgrade and remove there paper machine in the next years. In this reason there are new opportunities for the paper machine industry at the Asian markets. Since the computer and internet age the paper consumption increased every year with constant rates. The companies needs more printing paper and more goods have to be transported in paperboard packages. In this reason the paper machine market will benefit from the new trends in the future as well and has a good chance for a stable growth.11

[...]


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

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

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

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

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

6 Note http://www.cvg.nl/english/pdf/ava%203%20mei%202005%20engels.pdf

7 Note http://www.papernews.de/pdf/2004/2004_08/giganten.pdf

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

9 Note http://www.cvg.nl/english/pdf/ava%203%20mei%202005%20engels.pdf

10 Note http://www.papernews.de/pdf/2004/2004_08/giganten.pdf

11 Note http://www.cvg.nl/english/pdf/ava%203%20mei%202005%20engels.pdf

Excerpt out of 43 pages

Details

Title
Metso Paper - B2B Marketing Plan for StreamLine Onsider Wrapping Machine
College
HAN University of Applied Sciences  (Arnhem Business School)
Course
B2B Marketing
Grade
good
Authors
Year
2005
Pages
43
Catalog Number
V39760
ISBN (eBook)
9783638384513
File size
1191 KB
Language
English
Notes
This available report is a Business-to-Business Marketing plan about the new Metso Paper "StreamLine Onsider Wrapping Machine". Metso Paper is member of the international acting Finnish company Metso Corp. and on of the world leader for paper production lines. The task was to create a B2B Marketing Plan for a innovative product in an international team of students.
Tags
Metso, Paper, Marketing, Plan, StreamLine, Onsider, Wrapping, Machine
Quote paper
Diplom Betriebswirt (FH) Robert Borchel (Author)Noora Aivio (Author)Maria Arteche (Author)Elizabeth Skewes (Author)Buci Chan (Author)Markus Schiller (Author), 2005, Metso Paper - B2B Marketing Plan for StreamLine Onsider Wrapping Machine, Munich, GRIN Verlag, https://www.grin.com/document/39760

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