1.0 INTRODUCTION
The Sealed Air corporation is committed to market leadership through technological innovation. Ten years ago, the company was first to market with a highly successful coated air-bubble packaging protection product, AirCap. However, market trends indicate a rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated product. Burgeoning demand for uncoated bubble poses a direct threat to the long-term viability of the technologically superior, premium priced AirCap.
Thus Sealed Air is situated at a critical standpoint. It can either continue to deal exclusively in the manufacture of high-end coated bubbles emphasizing performance over price, or segment the market by introducing an inferior, inexpensive uncoated bubble. To this end, this report will analyze the industry, competition, and company internal environment to assess the viability of targeting this low-end market segment. A strategic marketing plan for launching an uncoated product will follow.
2.0 SITUATION ANALYSIS
2.1 Industry Analysis ---state growing market.
The protective packaging industry can be segmented three ways by use: positioning, block, and bracing; flexible wraps; and void fill. Coated (e.g., AirCap) and uncoated air bubble products serve the flexible wrap and void fill markets (refer to Glossary). The flexible wrap market, which dwarfs void fill as measured by annual sales, is of primary concern to Sealed Air and will thus constitute the focus of this report.
Protective packaging is sold to organizational customers through select distributor networks via personal selling. Sales commissions for AirCap are set at 2%. Often, manufacturers must have a regional presence to be successfu...
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... at 4% net to reflect its lower retail price. This will provide commissions equal to AirCap.
In particular, promotions should target consumer who use paper-products and foams. Leveraging the company's highly trained sales personnel, relative benefits and long-term cost savings afforded by superior bubble product should be stressed. Additional promotional efforts should include direct mailings to potential clients in the US and Europe. Importantly, all promotional efforts must target packaging engineers.
6.0 CONCLUSION
The apparent market trends cannot be ignored. Sealed Air must enter the uncoated market to maintain its leadership position. Using a frontal attack, it can achieve its objective and minimize associated issues by differentiating its product, leveraging its international ties, undercutting prices, and improving its promotional efforts.
An increase in competition is a very serious threat that YETI is facing. One disadvantage to making this fully sealable lid is that some of YETI’s main competitors already have this option available to our customers, so YETI would not be a first mover for this niche market as we have been in the past. But since this product already exists in competitor product lines, the introduction of a fully sealable lid to YETI products is sure to help YETI become more competitive, which results in higher sales and profit. A potential threat to this new product is that YETI will almost certainly charge more for their product, even though the product already exists on the market.
[5] "Increasing Number of Regulations Challenge Manufacturers." Industry Week. N.p., 24 Oct. 2013. Web. 11 Dec. 2013. .
Project responsibility is assigned to the division’s Research and Development Group: Mike Richards, the project scientist who developed the product, is assigned responsibiliy for project management. Assistance will be required from other parts of the company: Packaging Task Force, R & D Group: Corporate Engineering: Corporate Purchasing: Hospital Products Manufacturing Group: Packaged Products Manufacturing Group.
... about its products in a variety of ways. Promo budget and sales budget currently make up the bulk of Baldwin’s promotional strategy. Industry wise, we are aiming in heavy promotion so customers can be aware of our products and us. This promotion reflects the increasing market share as well as sales growth year after year, as it can be seen per graph below individually, or per graph on the right with the whole industry included.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
Global: Worldwide packaging shipping volume is increasing as a result of global exchange, e-commerce, and changes in supply-chain management.
middle of paper ... ... dated (2002, November 11). Aircraft Icing. Retrieved February 19, 2005 from http://www.aopa.org/asf/publications/sa11.pdf Kilroy, C. (n.d.). Special Report: Air Florida Flight 90.
Willis Haviland Carrier invented the first air conditioner in 1902. This was designed to boost the working process control in a printing plant. Carrier’s invention controlled temperature and humidity. The low heat and humidity helped keep the paper dimensions and ink alignment the same. Later his invention was used to populate productivity in the workplace. The Carrier Air Conditioning Company of America developed for the increasing demands. Gradually, air conditioning was used to help increase comfort in homes and cars. Residential sales increased rapidly in the 1950's.
Have you ever thought how all those water bottles, orange juice bottles, shampoo, conditioner, Gatorade or other common bottled goods you use every day get filled with the associated product or how the cap is put on or how the label is applied? Well that would be the job of the Monoblock Filler and Capper system developed by Pneumatic Scale Angelus. Pneumatic Scale Angelus is a global privately held company based out of Stow, OH that makes packaging equipment used by your everyday companies like Nestle, Tropicana, Johnson & Johnson and many more. One of their most common sold packaging equipment products is one of the most important within the vast industry, the monoblock filler and capper system.
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
The methods that will be used for extracting volatile components include using a “sniffer.” The “sniffer,” otherwise known as a portable vapor detector, sucks in the air surrounding the questio...
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Charles and Keith uses synthetic materials and polyurethane to ensure affordable prices of their products (Singapore Press Holding, 2009). However, the qualities of the products are not compromised despite its inexpensive prices. The managing director Charles Wong reassured the customers that although the ...