Rohm and Haas Case Study
ROHM AND HAAS CASE WRITE-UP
Problem Statement
Rohm and Haas have a great product with the potential to make millions of dollars; however the end user is not aware of this product or its potential benefits due to their uninspiring promotional strategy, which really has only targeted large formulators and distributors leading to disappointing sales of Kathon MWX. The Kathon MWX has barely reached 6% of their targeted sales volume during its first five months and is nowhere near the potential $20 million market to individual systems. Alternative 1 Maintain Status Quo Pros: Kathon MWX is in the introductory stage of the product life cycle and the individual adoption process may take longer than expected, therefore sales may increase once consumers become aware of the product without additional cost to change marketing efforts. No additional cost, man hours, accounting, or clerical work would be incurred if they maintained the same marketing plan. Cons: The cost of doing nothing may snowball the poor sales and cause a decrease in long term profits. The more time it takes for consumers to become aware of the product, the more time it is giving the competition to react to the market. Market potential for Kathon MWX is estimated at $20 million, therefore allowing competition to be the first to reach consumers. Management may withdraw product from the market if this plan does not work. The current marketing strategy does not focus efforts on bringing awareness or knowledge of the product to the 150,000 individual system plants or the small companies that rely on supply houses and machine tool shops. Alternative 2 Adjust promotional strategy of Kathon MWX using extensive sales promotions along with advertising and personal selling focused on penetrating industrial supply houses and machine tool shops. Pros: By
Problem Statement
Rohm and Haas have a great product with the potential to make millions of dollars; however the end user is not aware of this product or its potential benefits due to their uninspiring promotional strategy, which really has only targeted large formulators and distributors leading to disappointing sales of Kathon MWX. The Kathon MWX has barely reached 6% of their targeted sales volume during its first five months and is nowhere near the potential $20 million market to individual systems. Alternative 1 Maintain Status Quo Pros: Kathon MWX is in the introductory stage of the product life cycle and the individual adoption process may take longer than expected, therefore sales may increase once consumers become aware of the product without additional cost to change marketing efforts. No additional cost, man hours, accounting, or clerical work would be incurred if they maintained the same marketing plan. Cons: The cost of doing nothing may snowball the poor sales and cause a decrease in long term profits. The more time it takes for consumers to become aware of the product, the more time it is giving the competition to react to the market. Market potential for Kathon MWX is estimated at $20 million, therefore allowing competition to be the first to reach consumers. Management may withdraw product from the market if this plan does not work. The current marketing strategy does not focus efforts on bringing awareness or knowledge of the product to the 150,000 individual system plants or the small companies that rely on supply houses and machine tool shops. Alternative 2 Adjust promotional strategy of Kathon MWX using extensive sales promotions along with advertising and personal selling focused on penetrating industrial supply houses and machine tool shops. Pros: By