Christopher Ward MKTG 492

Sealed Air Co.

1. Based on information in the Case, calculate a ballpark figure of the potential value VTID creates for a typical meat processing plant?

8000 heads/day x 900 lbs. of meat x $1.5 = $10,800,000 per day lost from a recall o $10,800,000 x 14 days of recall = $151,200,000 lost in a two week recall

o With VTID in place, length of recalls would decrease such that:

10-day recall = $10,800,000 x 10 = $108,000,000

5-day recall = $10,800,000 x 5 = $54,000,000

o Customer Value (CV) = Benefits provided by products costs incurred

CV = $151,200,000 savings ($395 monthly costs x 12 mo.) + $1,500 set up fee

= $151,193,760 in potential value of avoided recall per year

2. What went wrong for Sealed Air in the case of worker safety?

While sales reps for Sealed Air already had a foot in the door with the appropriate manufacturing

companies, who would likely be interested in the VTID technology, they came up against a

couple of other factors that worked against them. First, the sales team lacked much of the

expertise necessary to sell this unique product. It was new to them, and the fact that it was an

invisible software solution, and not a tangible packaging solution, left the sales team out of its

element. Second, while Sealed Air had relationships with the correct businesses, they lacked the

key personal relationships that would facilitate sales of the VTID software. So, this meant that

the floor managers and facility supervisors with whom they normally worked were unable to

make purchase decisions about VTID. Sealed Air needed an audience with HR reps or

accountants, who would see the safety benefits of the product. This failure to identify the

Christopher Ward MKTG 492

Sealed Air Co.

appropriate customers cost them sales and ultimately led to another search for VTIDs correct

market.