Whether Sealed Air Should Introduce a Line for Uncoated in Us MarketEssay Preview: Whether Sealed Air Should Introduce a Line for Uncoated in Us MarketReport this essayWhether sealed air should introduce a line for uncoated in US marketSealed air should introduce the line for uncoated in US market. Sealed air has the reputation of customer oriented. The coated bubbles have had greatly met customers demand on quality as well as total cost solution. As the business environment changes, uncoated bubbles is likely be able to meet certain customers need with more cost effective solution. The strategy of introduction of uncoated bubble lines can be market campaigned for Sealed air’s continuous endeavor for providing best cost solution to customers.
Customer-Market SegmentationSealed air is a company to provide effective packaging solution to end users who need pack and ship the parts. Sealed air differentiates themselves by total packaging cost and its superior quality. One of the most important factors that Sealed air advocates is the total thickness loss at initial and 30days, which outperforming all the products available in market. However, towards this differentiated point, a further segmentation of customers package in-transit time is required (e.g. by week). With that information, the market can be segmented based on customer package in-transit time. Sealed air will be benefited by doing such to understand which customer segment actually does not care too much about thickness loss over certain period time, which are really continue demand less thickness loss. Although the market confused by what material can be used to protect the parts during transit. Sear air need to continue its efforts to segment the customer base who understand the packaging material cost/performance from the ones who purely look at the price/delivery factor.
Customer- Market potential analysisThe total protective material market size is $726.6M .The Flexible wraps plus void fill is 141.6M, where the majority is flexible wraps at $126M in 1980: for paper based material is $51M, forms based in $44M, and the Polyethylene air bubble is $31M. For the past two years from 1978 to 1980, the CAGR for flexible wraps market is 17%. Coated and uncoated bubbles grows at 20%; Paper-based remains stable; While foams based material increase significantly at 50% driven by Polyethylene forms. These data suggested that the overall market has been growing. From the retail price chart, foams came as a cost effective solution to compete with paper. Hence, as long as it comes out a competitive cost solution, bubble companies can also play a significant role to compete with paper and form based companies in the lower cost segment.
Customer AnalysisFor uncoated bubbles application, Sealed air should target more price sensitive (/lower cost) segment. In this segment, it can be divided by two groups. One is that they are sophisticated packaging engineer and they know the coated bubbles is not the best solution due to various reasons- e.g. the in-transit time is limited and therefore the advantage of coated bubbles for not losing thickness is not viewed necessary. The other group is very price driven and has not much technical packaging background; they most likely randomly purchases paper, foam, and or uncoated bubbles. This is also the targeted customer as Sealed airs strong consultative sales forces by being able to demonstrate the benefits for uncoated bubbles.
Customer AnalysisFor uncoated bubbles application, Sealed air should target more price sensitive (expect no extra value to be included) segment (also not a premium).
Customer AnalysisFor uncoated bubbles application, Sealed air should target more price sensitive (expect lower cost) segment as the cost of products is higher than at the start of the trial, hence cost of products is higher with Sealed Air. However we still want to be prepared to share these insights with the public. It is best if Sealed air has its own pricing structure (e.g. all costs of buying all products in a particular segment) while the market for products in all products is the same. Hence, Sealed air should be able to offer an accurate estimation of the total profits and price points of the all the products on the market.
Customer AnalysisFor uncoated bubbles application, Sealed air should target less price sensitive (expect low cost to be included) segment.
There is also a need for more advanced pricing strategies of Sealed air. For sealed bubbles we would aim to provide better information about the various pricing components used for Sealed air. Sealed Air can be found at different companies, e.g. SBC, BHLN, etc.
Customer AnalysisFor uncoated bubbles application, Sealed air should target only low cost segment.
If we know that customers from different segments already own the same product we will include the product segment information in the price segment. If we fail to use different pricing components we can expect to cost more for the customers from different segments and so on. A basic approach on this question would be to just do a generic discount and just include that same pricing structure for customers. In a single market you wouldn’t want to be forced to create multiple pricing structures when you cannot predict the pricing structure all together.
Customer AnalysisFor uncoated bubbles application, Sealed air should target for low cost segment.
This price segment is made up of high cost products (typically in-store), low cost products (often within a company) and for the customers who pay in-store, Sealed air is available for those customers. If the customer pays by phone, via e-mail, through the web sites, or online, Sealed Air is available (or sold at most in-store for cheaper). Sealed Air is also available online. For customers with some specific segments, we will refer to individual product discounts (e.g. for BHLN) as follows:
Customer AnalysisFor uncoated bubbles application, Sealed air should target more price sensitive (expect no extra value to be included) segment (also not a premium).
Customer AnalysisFor uncoated bubbles application, Sealed air should target more price sensitive (expect lower cost) segment as the cost of products is higher than at the start of the trial, hence cost of products is higher with Sealed Air. However we still want to be prepared to share these insights with the public. It is best if Sealed air has its own pricing structure (e.g. all costs of buying all products in a particular segment) while the market for products in all products is the same. Hence, Sealed air should be able to offer an accurate estimation of the total profits and price points of the all the products on the market.
Customer AnalysisFor uncoated bubbles application, Sealed air should target less price sensitive (expect low cost to be included) segment.
There is also a need for more advanced pricing strategies of Sealed air. For sealed bubbles we would aim to provide better information about the various pricing components used for Sealed air. Sealed Air can be found at different companies, e.g. SBC, BHLN, etc.
Customer AnalysisFor uncoated bubbles application, Sealed air should target only low cost segment.
If we know that customers from different segments already own the same product we will include the product segment information in the price segment. If we fail to use different pricing components we can expect to cost more for the customers from different segments and so on. A basic approach on this question would be to just do a generic discount and just include that same pricing structure for customers. In a single market you wouldn’t want to be forced to create multiple pricing structures when you cannot predict the pricing structure all together.
Customer AnalysisFor uncoated bubbles application, Sealed air should target for low cost segment.
This price segment is made up of high cost products (typically in-store), low cost products (often within a company) and for the customers who pay in-store, Sealed air is available for those customers. If the customer pays by phone, via e-mail, through the web sites, or online, Sealed Air is available (or sold at most in-store for cheaper). Sealed Air is also available online. For customers with some specific segments, we will refer to individual product discounts (e.g. for BHLN) as follows:
Sealed air have played dominated role in bubbles market. They have well established distributor system across the country. In addition, the company and major distributors have strong relationships (demonstrated by major distributors loyalty) thanks to selective distribution system.
From manufacturing perspective,
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