rohm and haas new product marketing strategy case analysis
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Transcript of rohm and haas new product marketing strategy case analysis
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ENGM 181
Gaurang Desai
Amir Golnabi
Allie McKendry
Jens Moebius
Harinarayanan Ranganathan
Case Reie!"
Rohm and Haas
Thayer School of Engineering 11/4/2010
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Background
1983: $2B worldwide ale fro! 4 eg!en"
#a"hon !icroiocide %roduc": $2&'
Thayer School of Engineering
2
Polymers, resins,
and monomers Plastics
Agricultural
chemicals
Industrial
chemicals
Fluid Process
chemicals
Petroleum
chemicals
Kathon 886 MW Kathon MWX
Specialty
chemicals
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Background
'e"alworking (uid: )0 !illion gallon in "he*S
Biocide kill !icroorgani! in !e"alworking
(uid
Thayer School of Engineering
3
#roduct name#roduct name K 88$ M%K 88$ M% K M%&K M%&
Trea"!en"ca%aci"y
1+000 gal&0,100 galreer-oir
'arke"%o"en"ial
$18' $20'
Sale .olu!e $&4' 1983$02' "arge" in
1984
c"ual ale
during 1"
-e!on"h $21' $12+000$12+000 11/4/2010
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5%"i!i"ic 6ro%ec" for '7
rea" !arke" %o"en"ial $38'
'ain"enance iocide likely "o gain !arke"
hare
Se-eral ad-an"age:• Eay "o ue•
o !ain"enance• Safe• ;igher e
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Bu" i" doen>" ell
=ack of need recogni"ion for iocide
=ack of rand awarene a!ong end
conu!er
=ack of '7 awarene
=ack of awarene of "he ene" of '7
=ack of incen"i-e for di"riu"or "o ell '7
Thayer School of Engineering
&
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End,*er E.? of #a"hon '7
?o!%are co" incurred y end,uer who doeand doe no" ue #a"hon '7
Thayer School of Engineering
)
Not 'singM%&
'sing M%&
@luid ?oncen"ra"e6urchae
$ $
@luid Ai%oal $ $
ik of @luid Ai%oal C C
.alualAi
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End,*er E.? of #a"hon '7
u!%"ion
'ain"enance iocide eD"end (uid life indeni"ely
1 al *ndilu"ed @luid 2& al Ailu"ed @luid
1 6acke" of '7 &0 al Ailu"ed @luidTy%icalF S!all 'achine Sho% 22 'achine D &0 al Tank G 1+100 al/?ycle
4,week ?ycle aed ?alcula"ion Sho% no" uing '7: Ai%oe @luid
Sho% uing '7: dd '7
5"her .ariale and @iDed ?o" Hgnored
Thayer School of Engineering
I
11/4/2010
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End,*er E.? of #a"hon '7
@luid ?oncen"ra"e 6urchae ?o" ?alcula"ion
$&)8/al ?oncen"ra"e
Thayer School of Engineering
8
cle$24992/cycycle1
dilu"egal1+100
dilu"egal2&
econcen"ra"gal1
econcen"ra"gal1
$&)8=××
Fluid concentrate purchase cost percycle for small machine shop
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End,*er E.? of #a"hon '7
@luid Ai%oal ?o" ?alcula"ion
$13)/al Ailu"e
Thayer School of Engineering
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Fluid disposal cost per cyclefor small machine shop
cycl$1+49)00/cycle1
dilu"egal1+100
dilu"egal1
$13)=×
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End,*er E.? of #a"hon '7
Thayer School of Engineering
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Not 'sing(iocide
'sing KathodM%&
@luid ?oncen"ra"e6urchae
$24992 $24992
@luid Ai%oal $1+49)00 $1+49)00
ik of eeding
Ai%oal
100C 0C
.alualAi
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ke"$I93)/%ac%acke"1
dilu"edgal&0
dilu"edgal1+100
cycle1
cycle1
$1+I4&92=××
End,*er E.? of #a"hon '7
Thayer School of Engineering
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Cost small machine shop is willing
to pay per MWX packet
cycl$1+I4&92/$1+49)00$24992E.? =+=
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?o!%are re-enue accrued y di"riu"orwhich doe and doe no" ell #a"hon '7
Ai
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Break,E-en 6rice for Ai"riu"or
Thayer School of Engineering
13
u!%"ion
Sa!e a %re-iou
Jearly Baed ?alcula"ion
1 Ai"riu"or 1 S!all 'achine Sho% Ai"riu"or e-enue G 'achine Sho% ?o"
Ai"riu"orK only %roduc" for ale are (uid
concen"ra"e and '7
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Break,E-en 6rice for Ai"riu"or
Selling 5nly @luid ?oncen"ra"e
Selling @luid ?oncen"ra"e and '7
Thayer School of Engineering
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r$3+248/yeyear1
cycle13
cycle1
$24992=×
Revenue per year for distributor selling only uid to smallmachine shop
Revenue per year for distributor selling uid & MWX to smallmachine shop
13D/ye$24992year1cycle13
cycle1$D
year1$24992
+=×+
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ke"$1048/%ac%acke"1
dilu"egal&0
dilu"egal1+100
cycle1
cycle1
$230)2=××
Break,E-en 6rice for Ai"riu"or
Thayer School of Engineering
1&
,nlyConcentrate
Concentrate -M%&
@luid ?oncen"ra"eSale
$3+24800 $24992
'7 Sale $000 13.otal /ales 023458677 04564 12&
cle$230)2/cy=
Revenue distributor will earn for selling MWX to small machine shop percycle
reak!even price a distributor will charge per MWX packet sold to smallmachine shop
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6A 6roce
Thayer School of Engineering
1)
16 9deaGenerat
ion
H "heHdeawor"hconideringL
46 9deascreening
H "he%roduc"ideaco!%a"ilewi"hco!%anyK
oMec"i-e+"ra"egie+andreourceL
26Conce:tdeelo:ment andtesting
?an we nda goodconce%"conu!er
ay "heywould "ryL
56Mar;eting/trategydeelo:m
ent
?an we nda co",e
ation
re %roduc" ale!ee"ingeD%ec"a"ionL
5%%or"uni"y nalyi 6roduc"
Aeign'arke"ing 'iD
=aunch
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Error in "he 6A 6roce
Thayer School of Engineering
1I
16 9deaGenerat
ion
H "heHdeawor"hconiderin
gL
46 9dea
screening
H "he%roduc"ideaco!%a"ilewi"hco!%anyKoMec"i-e+"ra"egie+and
reourceL
26Conce:tdeelo:ment andtesting
?an we nda goodconce%"conu!er
ay "heywould "ryL
56Mar;eting/trategy
Deelo:ment
?an we nda co",e
ation
re %roduc" ale!ee"ingeD%ec"a"ionL
'arke"ing S"ra"egy Ae-elo%!en" o %ri-a"e randing for '7
=ack of incen"i-e for di"riu"or
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eco!!enda"ion for HncreaedSale
llow %ri-a"e randingN ?an %roduce good reul" in "he near fu"ure
N Aoe no" ha-e a long "er! %er%ec"i-e
'arke" co" e
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Thayer School of Engineering
20
.han; you?
eference
#o"ler+ 6hili%+ and #e-in #eller Marketing Management 13"h ed *%%erSaddle i-er+ P: 6ren"ice ;all+ 2009 &I4 6rin"
angan+ . #a"uriQ =aley+ SuanQ oh! and ;aa : ew 6roduc"'arke"ing S"ra"egy+F ;BS o 9,&8I,0&& Bo"on: ;ar-ard Buine School6ulihing+ 1993
11/4/2010