Sealed Air Case Summary
Executive Summary
Sealed Air has been the market leader in the coated bubble product segment. It is considering introducing uncoated bubble product lines as it is gaining acceptance as a cheap alternative to the coated bubble product. Sealed Air may not be able to maintain and improve the current market share just by offering the uncoated bubble product. Instead, Sealed Air needs to introduce new uncoated bubble products at competitive prices to maintain yearly sales growth and market share.
Analysis
Sealed Air has three possible alternatives to consider. The first option is to launch the uncoated bubble product line and price it competitively to attract customers. The second option is to not launch the uncoated bubble product and aggressively …show more content…
They could do this by not only launching the uncoated bubble product but also pricing it competitively.
Pros:
· Attract many cost conscious customers and ultimately improve Sealed Air's market share.
· Increase the customer base for new product introduction in the future.
· Decrease revenue in the short run on uncoated bubble product that can be compensated by the high profit margin coated bubbles.
Cons:
· Sealed Air has the risk of losing its coated bubble product consumers who might shift more towards the low profit margin uncoated bubble product.
· Customers may be confused with this new line as Sealed Air has been touting the "barrier-coating".
· Sealed Air's products may be considered to be just like any other low-cost supplier.
· Profit margins may be lower than previous years for the same amount of sales.
Alternative 2: Don't launch uncoated bubble product line and aggressively market bubble coated products
Sealed Air can try to put all its marketing efforts on its coated bubble product to make the brand almost impregnable. New promotional campaigns like mail-in rebates, coupons, etc will help induce consumers towards Sealed Air products.
Sealed Air has been the market leader in the coated bubble product segment. It is considering introducing uncoated bubble product lines as it is gaining acceptance as a cheap alternative to the coated bubble product. Sealed Air may not be able to maintain and improve the current market share just by offering the uncoated bubble product. Instead, Sealed Air needs to introduce new uncoated bubble products at competitive prices to maintain yearly sales growth and market share.
Analysis
Sealed Air has three possible alternatives to consider. The first option is to launch the uncoated bubble product line and price it competitively to attract customers. The second option is to not launch the uncoated bubble product and aggressively …show more content…
They could do this by not only launching the uncoated bubble product but also pricing it competitively.
Pros:
· Attract many cost conscious customers and ultimately improve Sealed Air's market share.
· Increase the customer base for new product introduction in the future.
· Decrease revenue in the short run on uncoated bubble product that can be compensated by the high profit margin coated bubbles.
Cons:
· Sealed Air has the risk of losing its coated bubble product consumers who might shift more towards the low profit margin uncoated bubble product.
· Customers may be confused with this new line as Sealed Air has been touting the "barrier-coating".
· Sealed Air's products may be considered to be just like any other low-cost supplier.
· Profit margins may be lower than previous years for the same amount of sales.
Alternative 2: Don't launch uncoated bubble product line and aggressively market bubble coated products
Sealed Air can try to put all its marketing efforts on its coated bubble product to make the brand almost impregnable. New promotional campaigns like mail-in rebates, coupons, etc will help induce consumers towards Sealed Air products.