Essay on Rohm and Haas Case Study

1046 Words Dec 17th, 2011 5 Pages
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
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This creates a pull or demand from consumers as opposed to a push from suppliers. Also, the concentrate biocide market is predicted to be cannibalized by the maintenance biocide market, hence adjusting the promotional strategy more towards the end users can boost sales by expediting this process sooner. Since Kathon MWX is a far superior product and more cost effective to users, creating a buzz or awareness of the product can sway consumers away from the competition and assist in gaining the untapped market. Personal selling and trade shows would allow the retailers and customers to become familiar with the product and ask questions regarding usage and safety since the previous marketing survey revealed consumer apprehension about safety. Cons: Adjusting a promotional strategy and implementing changes can be costly and time consuming. Additional sales force would be needed to help penetrate the smaller markets. The cost of implementing could be hard to predict and management may be reluctant to invest money into a product that is doing poorly. Formulators may resent the change since the product extends the life of the product they sell, which could decrease their sales. Alternative 3 Rerun the full-page advertisements in American Machinist and offer sampling again for an additional 5 months. Pros: Little time or effort

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