Rohm and Haas Executive Summary Joan Macy‚ Rohm and Haas (R&H) market manager for Metalworking Fluid Biocides‚ has the primary responsibility of marketing R&H’s new consumer packaged MWX metalworking fluid biocide aimed at the small‚ individual cutting fluid system market. MWX‚ has been on the market for the past five months‚ but has only $12‚000 in sales when it has been projected for $84‚000 during that time span. Initial surveys have shown that there is a vast potential for
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Executive Summary Rohm & Haas recently introduced a new product‚ Kathon MWX‚ in order to exploit an untapped portion (reservoir capacity under 1‚000 gallons) of the biocide market. Even with limited competition within this segment‚ Kathon MWX has not been able to produce its annual target revenues‚ only capitalizing on roughly 6% of said target in a 5 month period. Large-scale distributors‚ who exhibit the most buyer power and influence over end customers in the industry‚ threaten manufacturer
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Rohm & Haas Marketing plan for Kathon MWX (1984) 1. EXECUTIVE SUMMARY Rohm & Haas is a diversified chemicals company. Its industrial chemicals division manufactures maintenance biocide products to the metal working industry. The company enjoys a healthy 30% market share with its Kathon 886 MW in the Central Systems segment. Rohm & Haas has recently launched Kathon MWX to target 150‚000 customers in the Individual systems segment where the market for biocides is underdeveloped and has
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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
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Module Case: Rohm and Haas (A) – New Product Marketing Strategy Harvard Business School Summarized by Sattawat (Jet) Overview • This case raises issue for reader for further recommendation of new product strategy. • The case is written about failure in sales volume of new product launching‚ Kathon MWX. The product is very good compared to competitors’. However‚ due to poor marketing strategy‚ sales were much poorer than target. Case Summary • Rohm & Haas (R&H) is chemical
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When analyzing the Rohm & Haas case‚ it is important to understand the current situation it finds itself in vis-à-vis Kathon MWX. Rohm & Haas‚ a current worldwide leader in the chemical technology industry‚ was founded in Germany in 1906. Since its inception‚ the company has significantly expanded its services into the United States market‚ achieving sales of $2 billion in 1983‚ largely derived from the company’s operations in four business segments: 1) Polymers‚ Resins‚ and Monomers‚ 2) Plastics
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million) of Rohm and Haas’ $1.9 billion sales (1983) is derived from the sale of metal working fluids. Currently these sales are realized through the product Kathon 886MW (886MW)‚ which is mainly used as a maintenance biocide in central metal working systems fluid reservoirs. Because of suggestions from the current end-users and the limitations of 886 MW in terms of minimum reservoir size‚ recently a new product was developed for use in smaller individual reservoir systems‚ namely Kathon MWX (MWX). 1
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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
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Case Review: Rohm and Haas Thayer School of Engineering 11/4/2010 Background 2 1983: $2B worldwide sale from 4 segments Kathon microbiocide products: $25M Polymers‚ resins‚ and monomers Plastics Industrial chemicals Agricultural chemicals Fluid Process chemicals Specialty chemicals Petroleum chemicals Kathon 886 MW Kathon MWX Thayer School of Engineering 11/4/2010 Background 3 Metalworking fluid: 60 million gallons in the US Biocides kill microorganisms
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Introduction The case presents an American company Dow‚ producer of commodity chemicals‚ who is in the final stages of acquiring another company Rohm and Haas. Dow’s CEO has been working for four years to transform Dow from a producer of low-value‚ highly cyclical commodity chemicals to a producer of high-value‚ specialty chemicals and advanced materials. Rohm is a perfect match for Dow in respect of the strategic and financial perspective. Dow is also pursuing another key deal with Kuwait’s Petrochemical
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