Rohm and Haas
ROHM AND HAAS
Joan Macey, Rohm and Haas market manager for Metalworking Fluid Biocides, was reviewing distributor purchases of Kathon MWX, a new biocide that killed microorganisms in metalworking fluids. She found that total sales to distributors for the first five months were 74 boxes against a first-year target of 1.350 boxes. “I have a super product but I can’t sell it” she said. “I am in the process of reviewing our approach of taking this product to market, but at this point I am not convinced we have a better alternative”.
Macey was also responsible for the marketing of Kathon 886 MW, a liquid biocide used in large metalworking fluid tanks (above 1.000-gallon capacity). Kathon 886 MW was a powerful biocide, and very small quantities were sufficient to treat large tanks. Because of its low-use level,
Kathon 886MW was not suitable for smaller-capacity tanks, and Kathon MWX was developed specifically for use in tanks with less that 1.000-gallon capacity.
Kathon 886MW had a sales volume of $5.4 million. Kathon MWX had been launched with a targeted sales volume of $0.2 million in the first year, but sales remained very disappointing.
Macey estimated the market potential for Kathon 886MW to be $18 million and Kathon MWX to be
$20 million. Explaining the poor sales of Kathon MWX, she said:
The total usage of Kathon MWX and its substitutes is nowhere near the
$20 million potential for this market. Many small users are either unaware or don’t see the need for biocides in their metalworking fluid treatment. We do poorly because we do not have enough competition to build primary demand.
Company Background
In 1906, Otto Rohm and Otto Haas founded the company in Germany to sell chemicals to that country’s leather tanning industry. The U.S. branch opened in Philadelphia in 1909. Over the years, it became a leader in chemical technology, especially in acrylic emulsion polymers. By the time of the case, the American company reported worldwide sales of $2 billion derived
Joan Macey, Rohm and Haas market manager for Metalworking Fluid Biocides, was reviewing distributor purchases of Kathon MWX, a new biocide that killed microorganisms in metalworking fluids. She found that total sales to distributors for the first five months were 74 boxes against a first-year target of 1.350 boxes. “I have a super product but I can’t sell it” she said. “I am in the process of reviewing our approach of taking this product to market, but at this point I am not convinced we have a better alternative”.
Macey was also responsible for the marketing of Kathon 886 MW, a liquid biocide used in large metalworking fluid tanks (above 1.000-gallon capacity). Kathon 886 MW was a powerful biocide, and very small quantities were sufficient to treat large tanks. Because of its low-use level,
Kathon 886MW was not suitable for smaller-capacity tanks, and Kathon MWX was developed specifically for use in tanks with less that 1.000-gallon capacity.
Kathon 886MW had a sales volume of $5.4 million. Kathon MWX had been launched with a targeted sales volume of $0.2 million in the first year, but sales remained very disappointing.
Macey estimated the market potential for Kathon 886MW to be $18 million and Kathon MWX to be
$20 million. Explaining the poor sales of Kathon MWX, she said:
The total usage of Kathon MWX and its substitutes is nowhere near the
$20 million potential for this market. Many small users are either unaware or don’t see the need for biocides in their metalworking fluid treatment. We do poorly because we do not have enough competition to build primary demand.
Company Background
In 1906, Otto Rohm and Otto Haas founded the company in Germany to sell chemicals to that country’s leather tanning industry. The U.S. branch opened in Philadelphia in 1909. Over the years, it became a leader in chemical technology, especially in acrylic emulsion polymers. By the time of the case, the American company reported worldwide sales of $2 billion derived