?Case Writeups : Sealed Air Corporation
?Case Writeups : Sealed Air Corporation

?Case Writeups : Sealed Air Corporation

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  • Pages: 3 (1076 words)
  • Published: October 7, 2017
  • Type: Case Study
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1 ) What has been go oning in this market? How has Sealed Air ( SA ) been making? To what make you impute SA’s success? Sealed Air had achieved 25 % one-year growing in net gross revenues and net net incomes from 1971 to 1980. The company has been maintaining a proficient leading place in the market. During 10 old ages, the company built on its development of the first-cell, lightweight buffering stuff, introduced the first foam-in-place packaging system, and engineered the first complete solar warming system for swimming pools. Sing the protective packaging market, the Sealed Air’s merchandise AirCap has the characteristic that differentiated called “barrier-coating” .

Barrier-coatng and its client benefits had been the major driving force of Sealed Air’s AirCap buffering gross revenues for 10 old ages. Therefore, Sealed Air created value to its clients by constructing high proficient merchandise quality in its coated bubbles and by informing the clients about the benefits of coated bubbles through the attempts of its sales representative. Sealed Air’s sales representative besides did “consultative merchandising approach” to increase its market portion and net incomes. Furthermore, the company created value for its distributers by the strength of its trade name equity and the strong demand for its merchandises. The company besides used selective distribution policy with less competition among distributers and therefore this policy makes the distributors’ net income borders maximized.

2 ) Should SA present an uncoated bubble in the U.S market to vie with GAFCEL? Why or why non? – SA should present an uncoated bubble for the u

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ndermentioned grounds Introducing uncoated bubbles can let Sealed Air to retain these clients whose demands are met with uncoated bubbles. It seems that GAFCEL’s ability to acquire gross revenues at the rate of $ 1 Million/year with merely 1.5 sales representative from merely the New York market is a strong indicant that the uncoated bubble is traveling to be a strong rival for Sealed Air’s coated bubble concern. Introducing uncoated bubbles would necessitate no extra capital or R & A ; D investing on this instance. This cost economy could be a competitory advantage over GAFCEL.

Distributors need to stock uncoated bubbles for their gross revenues. If Sealed Air does non hold uncoated bubbles, distributers can stop up selling other companies’ ( such as GAFCEL ) uncoated bubbles. This would ache Sealed Air’s relationship with these distributers.

– SA should NOT present an uncoated bubble for the undermentioned grounds Distributors sometimes complained about the degree of AirCap selling attempt. Since distributor’s borders on AirCap buffering were by and large higher than the 10 % to 12 % for Instapak, distributers were non happy. Besides, their borders for uncoated merchandises make them non happy compared to AirCap merchandise. Sealed Air in the market is a engineering leader. It has had a history of inventions. Introducing uncoated bubbles would intend presenting a me-too merchandise. This could ache the company’s repute and trade name equity in the market topographic point. For old ages, Sealed Air has told the clients that coated bubbles are better than uncoated bubbles.

It is impossible for the company to state the market that the

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uncoated bubble is every bit good as coated bubbles. The company would decidedly lose its credibleness as the engineering expert in the market place. This is non about confusion, but about the trustiness of the company in the customers’ perspectives. A similar state of affairs can go on with regard to the sales representative. If the company now tells the sales representative that uncoated bubbles every bit good for some applications, the company would lose its credibleness among the gross revenues people. There can a job on acquiring the sales representative motivated for the new merchandise. If the sales representative have to sell the lower priced bubbles, so their committee income will acquire reduced.

3 ) Assuming an uncoated bubble is introduced, suggest a selling program for the merchandise, including: placement & A ; aiming, pricing, stigmatization, direct gross revenues scheme and channel policy

I would suggest a selling program for distinction between a coated and an uncoated bubble. First of all, Sealed Air should maintain the current trade name equity position non affected by an uncoated bubble launched particularly in the U.S market. It is of import to develop intensive sales representative directed at distributers concentrating on their high net income border because the distributers don’t want well-trained sales representative to be allocated to an uncoated merchandise which leads to take down border. Sing consumer positions, the company should maintain its trade name position of the coated as it participates in exhibition shows. Sing clients, the company should supply extra services to the coated clients and different packaging for the different classs merchandise to countervail the effects of lower monetary values of viing uncoated bubbles. Different merchandise use can be applied. For the of import and delicate merchandises such as laptops to be protected, a coated bubble should be used. For the relatively less delicate merchandises, a coated bubble can be used. This distinction will be able to do different market value positioning for consumers under uncoated bubble launched.

In the European market where packaging supplies are viewed as “expendable commodities” , Sealed Air should cut monetary values of the merchandises affected by the uncoated bubble. Additionally, the company should concentrate on uncoated because the European consumes are so monetary value sensitive. Alternatively of concentrating on sales representative, the company should be aligned with some hyper and mass merchandisers for volume gross revenues on an uncoated bubble. Besides, the company expands channel grapevine to utilize direct mail and trade shows to aim smaller concerns.

4 ) Assuming an uncoated bubble is introduced, what alterations would you do to the selling program for the bing, coated bubble? Given how successful the merchandise line has been, would you merely go forth it to be? Although, selling cost rises up, I would urge utilize different trade name name. If the company stays with the current name, there would be some confusion about Sealed Air’s merchandises and some dilution of the trade name equity of the current name because the new merchandise is wholly different from the current merchandises. Some of this job can be mitigated if the company launches the uncoated bubbles under a different name.

Besides, merchandise distinction such as colour or form alteration can be one of the solutions. The distinction can do consumers and distributers non confused approximately high valued coated merchandises. In others words, the uncoated bubble merchandise can non ache trade name equity of the current merchandise.