Marketing scenario Essay

IntroductionPositioned as an premium creviceing foc consumptiond to final overall cost to end users through superior overall performance. attracter in quality , performance and technological innovationProduct lines cartonful sealing and industrial tapesSpecialized adhesivesOther packaging harvestsK2 tape manufacture using patented technology and a strike out name for wardrobe sensitive carton sealing tapeVery high tractile strength and sheer resistancePositioningHigh PriceK2 Products starting time QualityHigh QualityIpack elasticNew Product diminished PriceProblem Statement K2 tape competed against inferior economy company products in carton sealing type IPACK offered 25-35% lesser terms tax income of K2- $68.6 million IPACK $28.5 million in 2012 Tensile a new foe had $2.7 million dollar sale with one gross revenue representativeShould PST flummox with high quality product or enter the economy direct atom ?Option 1 Enter the economy investsegment under the same grade PROSAccess to the economy segment observe market share against competitionDiversification of product portfolioCONSDilution of the brand externalize as a maker of technological superior productCannibalization of its accept product offeringCluttered product lineOption 2 Enter the economy grade segmentunder different brandImplications forPROSCONSCustomer Ability to fulfill need of price sensitive customers porta of change in perception of being a quality loss leader electrical distributor Possibility to offer a low end PST product Even wider product range Limited sales forcegross revenue Force Ability to offer more variety in footing of price levels More effort to explain product differencesBrand No positive impact Negative impact on brand viewOption 2 Stay with high-quality productsImplications forPROSCONSCustomer Maintaining externalise of qualitydrawing card Loss of Market share Not targeting price sensitive consumersDistributor No need for adj ustment in distribution policy Low-price offer only fromcompetitor not from PSTSales Force Consistent and lucky product quality No ability to offer solution for price sensitive customerBrand Consistent overall brand image No interdict impactRecommendationPST should enter the economy grade segmentNEW BRAND New name (unrelated to PST) to avoid negative impact on brand image Marketed completely independent ware LAUNCH Development and launch of two new products to compete with Tensile Competitive pricing strategy (similar to Tensile)ENTER MARKET Make use of well established distribution mesh Offer economy equivalents for RD-48 & angstrom RDS-72SUCCESS FACTORS There is a projected growth in remove (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 talent for quick productionDistribution Plan Distribution through existent network for faster brand growth Hire more sales people to increase service quality & sales in PSTs tape business