bemis-company
Businessmodel of Bemis Company
Customer Segments
Bemis has a mass market business model, with no significant differentiation between customer segments. The company targets its offering at all industries that require packaging products.
That said, most of its clients are in the food industry, with the remainder primarily operating in the personal care, medical, pharmaceutical, chemical, agribusiness, construction, and electronics sectors.
Value Proposition
Bemis Company offers five primary value propositions: convenience, risk reduction, accessibility, innovation, and brand/status.
The company offers convenience by making life simpler for customers. Its packaging facilitates easier opening and reclosing of containers, as well as portioning of their contents.
The company reduces risk by maintaining high quality and safety standards. Its packaging features an oxygen and moisture barrier that combats bacteria and optimizes product freshness. This in turn reduces food spoilage, increasing safety and reducing food waste. For pharmaceutical and medical applications, the packaging provides sterility as necessary.
The company creates accessibility by presenting a wide variety of options. It has acquired numerous companies since its founding. In the past three years alone, it has purchased Foshan New Changsheng Plastics Films and the packaging operations of SteriPack and Emplal Participações S.A. These actions have enabled it to diversify its portfolio of offerings and expand its capabilities.
The company places a strong emphasis on innovation. It operates the Bemis Innovation Center, a facility designed to move packaging ideas from the concept to the commercialization stage more quickly. Specific activities include rapid prototyping, hands-on research, and collaboration. The center also enables customers to test out how the company’s packaging affects their products inside and outside of the store environment. Specific activities here include shelf-life testing, product evaluation/trials, focus groups, consumer eye-tracking, and collaborative team sessions.
The company has established a strong brand due to its success. It bills itself as the largest flexible packaging company in the Americas, with revenues of $4.1 billion in 2015 and 18,000 employees worldwide. It has won a number of honors, including the following:
- The Highest Achievement Award for the Campbell’s Ready Meals pouch from the Flexible Packaging Association (2016)
- A Diamond Finalist Award for the Doril Enxaqueca medicine package, given by Dupont for Responsible Packaging, Technological Advancement, and Enhanced User Experience (2016) ### Channels
Bemis Company’s main channel is its direct sales team, which operates through offices located in North America, Europe, Latin America, and the Asia-Pacific. It also utilizes some additional unspecified distribution channels. The company promotes its offering through its website, social media pages, and participation in trade shows and conferences.
Customer Relationships
Bemis Company’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone and e-mail support.
Key Activities
Bemis Company’s business model entails designing, developing, and manufacturing its packaging products for its customers.
Key Partners
Bemis Company’s key partners are the suppliers that provide it with the raw materials it needs to manufacture its products. The major materials it uses are polymer resins and films, adhesives, inks, paper, chemicals, and aluminum.
Key Resources
Bemis Company’s main resources are its human resources, who include the design technicians, product development experts, and engineers that design, develop, and manufacture its products, the sales people that promote it, and the customer service personnel that provide support. The company maintains important physical resources in the form of the following manufacturing facilities:
- U.S. Packaging Segment – Operates 27 manufacturing plants in 13 U.S. states, 26 of which it owns directly and one of which is leased from a third party.
- Global Packaging Segment – Operates 34 manufacturing plants in three U.S. states, the Commonwealth of Puerto Rico, and ten non-U.S. countries, 28 of which it owns directly and six of which are leased from third parties. ### Cost Structure
Bemis Company has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions.
Its biggest cost driver is cost of products sold, a variable cost. Other major drivers are in the areas of sales/marketing, research/development, and administration, all fixed costs.
Revenue Streams
Bemis Company has one revenue stream: revenues it generates from sales of its packaging products to its customers. Sales usually occur through the signing of long-term contracts.