Marketing scenario Essay

gatewayPositioned as an premium fling focused to lowest overall cost to end users through superior overall performance.Leader in whole step , performance and technological innovationProduct linesCarton sealing and industrial tapesSpecialized adhesivesOther packaging intersectionsK2 tape Manufactured using secure technology and a cross name for pressure thin cartonful sealing tapeVery high tensile strength and cut resistancePositioningsenior high school PriceK2 ProductsLow QualityHigh QualityIpackTensileNew ProductLow Price problem Statement K2 tape competed against inferior prudence grade products in carton sealing type IPACK offered 25-35% lesser price Revenue of K2- $68.6 one million million IPACK $28.5 million in 2012 Tensile a new challenger had $2.7 million clam sale with one sales representativeShould PST stay with high smell product or enter the economy grade segment ? excerption 1 Enter the economy gradesegment under the homogeneous brandPROSAccess to the eco nomy segmentDefend food market theatrical role against competitionDiversification of product portfolioCONSDilution of the brand image as a maker oftechnological superior productCannibalization of its own product offeringCluttered product lineOption 2 Enter the economy grade segmentunder different brandImplications forPROSCONSCustomer office to fulfill hire of price sensitive guests surmisal of change in perception ofbeing a flavor leaderDistributor Possibility to offer a low end PSTproduct Even wider product range Limitedsales forceSales Force talent to offer more variety in terms ofprice levels more(prenominal) effort to explain productdifferencesBrand No positive move Negative impact on brand imageOption 2 Stay with high-quality productsImplications forPROSCONSCustomer Maintaining image of qualityLeader Loss of commercialise share Not targetingprice sensitive consumersDistributor No need for adjustment indistribution policy Low-price offer only fromcompetitor not from PS TSales Force Consistent and easy productquality No ability to offer solution for pricesensitive customerBrand Consistent overall brand image No disallow impactRecommendationPST should enter the economy grade segment forward-looking BRAND New name (unrelated to PST) to avoid negative impact on brand image Marketed completely independentPRODUCT LAUNCH growing and launch of two new products to compete with Tensile Competitive set strategy (similar to Tensile)ENTER MARKET Make use of well naturalised distribution network Offer economy equivalents for RD-48 & RDS-72SUCCESS FACTORS There is a projected growth in demand (e.g. packaging segment 2.2%) PST has an open sales force and distribution network in the tape market There is a lack of brand loyalty of price sensitive customers (switching to PSTs new brand) There was suitable equipment and capacity for quick production dispersal Plan Distribution through existing network for faster brand growth Hire more sales people to increase o perate quality & sales in PSTs tape business