Preview

Rohm and Haas Case Study 2

Good Essays
Open Document
Open Document
1589 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Rohm and Haas Case Study 2
Rohm and Haas
Sayali Suryawanshi
John F. Kennedy University
Marketing Management
April. 26. 2015
No. Words: 1604

1. What is Kathon MWX really worth to users (answer needs to be a dollar value that is supported through your reasoning, show formula for value)
Kathon MWX’s primary benefit is that it keeps metalworking fluids in tanks clean for a longer period of time. Other competing alternatives when compared to Kathon MWX’s are less powerful and would need to replace the metalworking fluid very often which will result in user spending more.
Below is the example that supports my above reasoning:
Kathon MWX vs Tris Nitro:
Tris Nitro, another product that was available at the time when Kathon MWX was introduced into the market. However, Kathon MWX comes with a pack that supports 25 gallon fluid tank whereas the Tris Nitro supports 50 gallon fluid tank for the same price.
Also, the products were designed differently. Tris Nitro is effective only 3 days whereas Kathon MWX is effective for 21 days.
Let’s consider users have a 50 gallon fluid tank that needs to be cleaned.
One Kathon MWX packet = 1.1 $, One Tris Nitro packet = 2.2 $
One Kathon MWX packet is designed for = 21 days for 25 gallon fluid tank, One Tris Nitro packet is designed = 3 days for 50 gallon fluid tank.
Money spent by Kathon MWX user for one year:
365 days/21 days * 2 * 1.1 $ = 17.38 * 2.2 $ = 38.23 $
Money spent by Tris Nitro user for one year:
365 days/3 days * 2.2 $ = 121.6 * 2.2$ = 267 $
Total money saved by Kathon MWX user for one year is 267.67 – 38.23 = 229.43 $
Hence it is always advantage for user if they use Kathon MWX product when compared to other competitor such as Tris Nitro.
Standard Formula that can be used to calculate the annual spending for both products are:
Kathon MWX:
365/21 days * 2 * ($ price of each packet)
Tris Nitro:
365/3 days* ($ Price of each packet)

2. Why isn’t Kathon MWX not selling? How would you describe the user environment?
Kathon MWX has

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The textbook also states that there are only 360 days within the year. The ADB can be calculated as…

    • 93 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Case Study Comm 215

    • 1516 Words
    • 7 Pages

    Mr.Carl Robins is currently encountering several issues in his new role as the new campus recruiter for ABC, Inc. Mr. Robins was hired in at ABC Inc. and has been with the company approximately six months when he was tasked to hire 15 new trainees. These new trainees are to work for Monica Carrolls, who is the operations supervisor of ABC Inc. Mr. Robins has run into several issues during the hiring process of these 15 individuals. Ms. Carrolls has also neglected to follow up with Mr. Robins to ensure he was accomplishing the task that had been assigned to him. The largest problem is Mr. Robins is unprepared for orientation; he failed to notice that several trainees’ applications were incomplete, several trainees’ files were missing transcripts, and mandatory drug screenings were not completed on any of the new trainees. In addition to those problems Mr. Robins needs 15 completed orientation manuals, and he has not found a reasonable place to hold orientation for the new trainees. As we analyze this situation, we will observe issues that Mr. Robins has had, training issues within the company, and lack of mentoring by his management.…

    • 1516 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    15. Xuan saved $5340 during 3 years. If he saved $95 each month in the first year and an equal amount per month for the following 2 years, how much did he save per month in the last 2 years?…

    • 522 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    3. Something is missing from the scenario. Based on his history, L.J. should have been taking an important medication. What is it, and why should he be taking it?…

    • 845 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    1st Individual Homework

    • 609 Words
    • 10 Pages

    The average Total $ spent is 208.32, the average Total # of purchases is 3.89 and the average number of months since last purchase is 12.36.…

    • 609 Words
    • 10 Pages
    Satisfactory Essays
  • Good Essays

    Quiz 1 solutions

    • 1325 Words
    • 13 Pages

    In September direct labor was 25% of conversion cost. If the manufacturing overhead for the month was $108,750 and the direct materials cost was $25,800, the direct labor cost was:…

    • 1325 Words
    • 13 Pages
    Good Essays
  • Good Essays

    25. How long will it take to double your savings at 5 percent compounded semi-annually? D. 14.04…

    • 1166 Words
    • 4 Pages
    Good Essays
  • Good Essays

    TEU (Pizza) = 70(3) + 50(1.5) + 80(1) = 210 + 75 + 80 = 365…

    • 874 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Geometric Progression

    • 378 Words
    • 2 Pages

    You would use a geometric series formula because the increase will be different each year…

    • 378 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Q3) Conduct an analysis of Williams’ sources and uses of funds during the first half of 2002. How do you expect these numbers to evolve over the second half of 2002? What is the problem facing Williams? How did it get into this situation? How has it tried to address the problem it is facing?…

    • 2088 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Variable Cost

    • 424 Words
    • 2 Pages

    The variable cost per unit = dividing the difference in cost by the difference in service $5,500 / 1,400 = $3.93…

    • 424 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Soren Chemical

    • 1026 Words
    • 5 Pages

    Considering the facts like distributors typically carried tens of the thousands of products from many suppliers, including the regional formulators that sold Kailan MW, at least two of the formulators sold Kailan MW with a diluted version as a private label clarifier, and the competition from leading competitors and small competitors, we suggest that…

    • 1026 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Total annual purchases were approximately $250, and about $60 million to be sourced through Materials Department…

    • 872 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    of each product based on the activity based costing. This can be found by including the direct…

    • 294 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Rohm & Haas

    • 1389 Words
    • 6 Pages

    Kathon MWX potentially increases the life of metalworking fluid by 2-4 weeks. This would cause a significant reduction in revenues for the formulators since the individual system customers would now be purchasing fluids less frequently.…

    • 1389 Words
    • 6 Pages
    Powerful Essays

Related Topics