?Case Writeups : Sealed Air Corporation Essay Example
?Case Writeups : Sealed Air Corporation Essay Example

?Case Writeups : Sealed Air Corporation Essay Example

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  • Pages: 4 (892 words)
  • Published: October 7, 2017
  • Type: Case Study
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Sealed Air (SA) has achieved success in the growing market through innovative products and a consultative selling approach. From 1971 to 1980, SA experienced a 25% annual growth in net sales and profits. They have developed groundbreaking products including lightweight buffering material, foam-in-place packaging system, and solar warming system for swimming pools. One of their successful products is AirCap, which features a unique "barrier-coating" that has driven its sales for 10 years. By providing high-quality coated bubbles and educating customers on their benefits, SA creates value for them. Their sales representatives use a consultative selling approach to increase market share and profits. Furthermore, they have leveraged their brand equity to meet strong product demand and implemented a selective distribution policy to minimize competition among distributors and maximize profit margins.

Considering whether SA should introduce an uncoated bubb

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le in the US market to compete with GAFCEL: introducing an uncoated bubble can help retain customers who specifically require it to meet their needs. GAFCEL's ability to generate $1 million in annual sales with only 1.5 sales representatives from the New York market suggests that their uncoated bubble product will pose strong competition for Sealed Air's coated bubble business.
The introduction of uncoated bubbles would give Sealed Air a cost advantage over GAFCEL, as it would not require additional investment. However, distributors must stock uncoated bubbles to avoid selling other companies' and damaging their relationship with Sealed Air. Despite these advantages, there are reasons why Sealed Air should NOT introduce uncoated bubbles. Distributors have expressed dissatisfaction with the marketing efforts for AirCap compared to Instapak, which yielded higher profit margins. Additionally, the profit margins for uncoated products made distributors unhappy

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when compared to AirCap's profitability. Moreover, introducing an inferior product could damage Sealed Air's reputation as a technological leader and innovator in the market. Convincing customers that uncoated bubbles are just as effective as coated ones would be difficult since they have consistently promoted coated bubbles as superior.The loss of credibility as a technology expert may harm Sealed Air's market position and trust from customers. Additionally, sales representatives might face challenges when selling the new product, impacting their motivation and credibility if they are informed about the suitability of uncoated bubbles for certain applications. Moreover, selling lower priced bubbles could result in reduced commission income for the sales representatives. To successfully introduce the uncoated bubble product, a marketing plan should be implemented to differentiate it from other products. Firstly, Sealed Air must ensure that introducing the uncoated bubble does not negatively affect its current brand equity status in the U.S market. The company should focus on specific market segments that prioritize cost-effectiveness over premium quality when positioning and targeting. Competitive pricing will help attract customers seeking affordable options. It is crucial for Sealed Air to communicate clearly about the advantages and limitations of both coated and uncoated bubbles while highlighting their suitability for different applications to maintain trust and credibility. This approach will prevent confusion and establish Sealed Air as an authoritative and reliable source for packaging solutionsAn effective marketing strategy for the uncoated bubble product includes directly engaging with potential customers, offering personalized advice on bubble selection based on their specific requirements. To ensure easy access to the uncoated bubble product, a channel policy can be implemented that makes it available in various retail

stores and online platforms. Successful marketing of the uncoated bubble product requires careful positioning, pricing, branding, direct sales strategy, and channel policies. Maintaining profit margins involves developing specialized sales representatives focused on high-profit margin distributors. During exhibition shows, the company should also maintain its branded position for coated products to cater to consumer perspectives. Offering additional services to coated product customers and different packaging options for various merchandise categories helps offset the impact of lower prices from competing non-coated bubbles. Differentiating products based on usage is recommended - using coated bubbles for protecting important and delicate items like laptops and non-coated bubbles for relatively less fragile products. This differentiation allows targeted market positioning among consumers for the launch of non-coated bubbles. In the European market where packaging supplies are viewed as expendable commodities, Sealed Air should reduce prices for products with non-coated bubbles.It is crucial to prioritize non-coated options for European consumers who are price sensitive. Rather than relying solely on sales representatives, it would be advantageous for the company to establish partnerships with hypermarkets and mass merchandisers to increase the sales volume of non-coated bubbles. Moreover, the company is expanding its marketing strategies by incorporating direct mail and trade shows to target smaller businesses. If an uncoated bubble is introduced, adjustments will need to be made to the current marketing plan for coated bubbles. Considering the success of the existing product line, it may be prudent to maintain it as is. However, due to increased marketing costs, I suggest using a different brand name. Retaining the current name could cause confusion about Sealed Air's products and dilute brand equity since the new product differs

completely from existing ones. Introducing uncoated bubbles under a distinct name could help alleviate some of these issues. Additionally, product differentiation such as altering color or shape could also be a solution in order to avoid confusion among consumers and distributors regarding high-value coated products. In other words, using the uncoated bubble product would not impact the brand equity of the current product.

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