PST Tape
For the exclusive use of A. Zaveri
9-914-533
JANUARY 28, 2014
ROBERT J. DOLAN
HEATHER BECKHAM
In a Bind: Peak Sealing Technologies’ Product Line
Extension Dilemma
It was a scorching hot day in July 2013 as Emma Taylor arrived at her office in Peak Sealing
Technologies’ Dallas, Texas corporate headquarters. Taylor had been with Peak Sealing Technologies
(PST) for six years since earning her MBA. She was the product manager for K2-Tape, the company’s premium pressure sensitive carton sealing tape line. Recently, a small regional tape producer had found some success with a cheaper, economy grade version that lacked the patented adhesive technology and high quality materials that K2-Tape products offered. Some members of PST’s executive steering committee thought the best way to defend against this threat was to add a similar lower quality, less expensive product to the PST line up. PST’s president and chief executive officer,
Ethan Sloane, was not convinced this was the best strategy and had asked Taylor to provide a formal recommendation on how to deal with the economy product threat.
As Taylor was thinking through the pros and cons of introducing a down-market product, she recalled the speech Sloane had given last month at the Investor Day event:
PST’s annual sales growth rate has averaged over 30% over the past five years. This represents unparalleled performance. During the past decade we have led the industry in pressure sensitive tape innovations and advanced adhesive functionality. Our success has been rooted in our technological leadership and intensive R&D efforts. Our future lies in our continued development of cutting-edge technology to provide stronger, more secure, efficient sealing solutions to our customers. PST’s mission focuses on providing our customers with the highest quality, most innovative products on the market.
Background and Competitive Overview
In the adhesive industry, PST was recognized as a leader in quality, performance and
9-914-533
JANUARY 28, 2014
ROBERT J. DOLAN
HEATHER BECKHAM
In a Bind: Peak Sealing Technologies’ Product Line
Extension Dilemma
It was a scorching hot day in July 2013 as Emma Taylor arrived at her office in Peak Sealing
Technologies’ Dallas, Texas corporate headquarters. Taylor had been with Peak Sealing Technologies
(PST) for six years since earning her MBA. She was the product manager for K2-Tape, the company’s premium pressure sensitive carton sealing tape line. Recently, a small regional tape producer had found some success with a cheaper, economy grade version that lacked the patented adhesive technology and high quality materials that K2-Tape products offered. Some members of PST’s executive steering committee thought the best way to defend against this threat was to add a similar lower quality, less expensive product to the PST line up. PST’s president and chief executive officer,
Ethan Sloane, was not convinced this was the best strategy and had asked Taylor to provide a formal recommendation on how to deal with the economy product threat.
As Taylor was thinking through the pros and cons of introducing a down-market product, she recalled the speech Sloane had given last month at the Investor Day event:
PST’s annual sales growth rate has averaged over 30% over the past five years. This represents unparalleled performance. During the past decade we have led the industry in pressure sensitive tape innovations and advanced adhesive functionality. Our success has been rooted in our technological leadership and intensive R&D efforts. Our future lies in our continued development of cutting-edge technology to provide stronger, more secure, efficient sealing solutions to our customers. PST’s mission focuses on providing our customers with the highest quality, most innovative products on the market.
Background and Competitive Overview
In the adhesive industry, PST was recognized as a leader in quality, performance and