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Rohm and Haas – Case Write-up Problem Statement: The well-established leather tanning giant in the US, Rohm and Haas, has introduced a new product in industrial chemicals segment, the Kathon MWX, a maintenance biocide for metalworking fluid meant to cleanse and disinfect smaller capacity tanks of less than 1000 gallons.
Alternative 1: Improve promotion strategy of Kathon MWX: Pros: Kathon, as a metalworking biocide product is already an established one in the market. If small-scale businesses are made aware of the fact that Kathon MWX is a product of Rohm and Haas that had earlier introduced Kathon 886 MW which had worked very well for treatment of large fluid tanks, its sales would automatically rise. Cons: Distributors/formulators had sold Kathon 886 MW as an integrated product for fluid maintenance rather than individual product. This means not many customers would know about Kathon 886 MW although its sales occupied 30% of the market share; and hence they would not know Kathon MWX either in spite of the current promotional efforts. Alternative 2: Promote Kathon MWX to the industrial supply houses for sales. Pros: Introducing more number of direct distributors to the end users will help in improving promotion and sales for Kathon MWX. The present multiple unit pricings are favorable for including more distributors. The 14327 industrial supply houses can be a great source for improving awareness of Kathon MWX. Cons: Specialization of sales force to promote Kathon MWX at such large scale would be required. Secondly, this would require greater budget initially. The budget is already lean for this project, and more discounts might be required. ...
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