Sealed Air
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5/ Marketing mix
Product
The new product will have to:
have a new name to differentiate it from the Aircap. Find a brand name!
be cheaper than the competitorÐÐŽÐЇs products to fight efficiently and quickly against them
The new product will also enlarge the range of products sold by Sealed Air. This is a problem because Sealed Air offer is already too complex (complaints of the distributors and the end users).
ThatÐÐŽÐЇs why we propose to cancel some products. Based on the Exhibit 5, we propose to keep only:
SC120 1 layer
SC 120 2 layers
SCT 120
ST 120 2 layers
SD240 4 layers
We reduce the offer of coated bubbles from 9 to 5 grades.
We will go to the uncoated bubbles market with only 2 grades. The same as the competitors: 3/16 and ÐÐД¶.
We also though about stopping the SPB sales to use the production facilities for the uncoated bubbles. It is hard to give a definitive answer to this topic because we donÐÐŽÐЇt have a lot of datas about the profitability of this activity, so we donÐÐŽÐЇt know if it is relevant to ÐÐŽÐosacrifyÐЎб this activity. In a first time, because this activity was mutliplied by 4 in 3 years, and because it is possible to use the production facilities without disturbing the process, we decided to keep it.
Price
Here are the Gafcel prices and margin estimations:
Our margins are still correct, and the margins are always smaller with low price products. But such a price, Sealed Air is sure to attract massively the customers and the quantity will compensate the low price.
In order to push our export policy, we can also give our distributor there an extra discount of 5%. But this must be validated by additional datas on the european price, the USD/EUR change rate. Another possibility is to give them a 60 days payment policy.
Promotion
Sealed Air will have to communicate efficiently to two communication plans:
The market: it will be tough to change the perception of the company, traditionally
considered as the ÐÐŽÐohistorical champion of coated bublesÐЎб to a ÐÐŽÐobroad range offerÐЎб company. The challenge is actually to keep a real barrier between the segments. ThatÐÐŽÐЇs why Sealed Air will have to adopt a specific communication for each segment:
A communication plan based on the price for the ÐÐŽÐoprice