Marketing scenario Essay Example for Free

Marketing scenario EssayIntroductionPositioned as an premium offering focused to concluding overall cost to end users through superior overall exploit.Leader in eccentric , performance and scientific innovationProduct linesCarton sealing and industrial entersSpecialized adhesivesOther packaging convergencesK2 tape Manufactured using patented technology and a tag break for pressure sensitive cartonful sealing tapeVery high tensile strength and sheer resistancePositioning amply valueK2 ProductsLow QualityHigh QualityIpackTensileNew ProductLow PriceProblem Statement K2 tape competed against inferior saving grade products in carton sealing fictitious character IPACK offered 25-35% lesser price Revenue of K2- . 6 million IPACK $28.5 million in 2012 Tensile a stark naked competitor had $2.7 million dollar sale with one gross sales representativeShould PST stay with high feeling product or enter the economy grade segment ?Option 1 Enter the economy gradesegment under t he same brandPROSAccess to the economy segmentDefend commercialize share against competitionDiversification of product portfolioCONSDilution of the brand image as a maker oftechnological superior productCannibalization of its own product offeringCluttered product lineOption 2 Enter the economy grade segmentunder different brandImplications forPROSCONS customer Ability to effect need of price sensitivecustomers Possibility of change in perception ofbeing a quality leader electrical distributor Possibility to offer a low end PSTproduct Even wider product range Limitedsales forceSales Force Ability to offer more chassis in terms ofprice levels More effort to explain productdifferencesBrand No absolute impact Negative impact on brand imageOption 2 Stay with high-quality productsImplications forPROSCONSCustomer Maintaining image of qualityLeader Loss of Market share Not targetingprice sensitive consumersDistributor No need for adjustment indistribution policy Low-price offer only fr omcompetitor not from PSTSales Force Consistent and easy productquality No ability to offer source for pricesensitive customerBrand Consistent overall brand image No disconfirming impactRecommendationPST should enter the economy grade segmentNEW BRAND New name (unrelated to PST) to avoid negative impact on brand image Marketed completely independentPRODUCT pitch Development and launch of two new products to compete with Tensile Competitive pricing strategy (similar to Tensile) wear MARKET Make use of well established distribution network Offer economy equivalents for RD-48 RDS-72 victory FACTORS There is a projected growth in demand (e.g. packaging segment 2.2%) PST has an established sales force and distribution network in the tape market There is a lack of brand loyalty of price sensitive customers (switching to PSTs new brand) There was suitable equipment and capacity for quick production diffusion Plan Distribution through existing network for faster brand growth Hire more s ales people to increase service quality sales in PSTs tape business