Marketing scenario Essay Example for Free

Marketing scenario EssayIntroductionPositi unmatchabled as an premium offering focused to final overall cost to end users through superior overall performance.Leader in quality , performance and technological innovationProduct linesCarton seal off and industrial tapesSpecialized adhesivesOther packaging yieldsK2 tape Manufactured using patented technology and a shuffling name for pressure sensitive cartonful sealing tapeVery high tensile strength and sheer resistancePositioningHigh PriceK2 ProductsLow calibreHigh QualityIpackTensileNew ProductLow PriceProblem Statement K2 tape competed against inferior providence roll products in carton sealing font IPACK offered 25-35% lesser price Revenue of K2- . 6 million IPACK $28.5 million in 2012 Tensile a new competitor had $2.7 million dollar sale with one gross sales representativeShould PST stay with high quality product or enter the economy grade segment ?Option 1 Enter the economy gradesegment under the same brandPROSAcce ss to the economy segmentDefend market share 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 forPROSCONS guest Ability to fulfill need of price sensitivecustomers Possibility of spay in perception ofbeing a quality leaderDistributor Possibility to offer a low end PSTproduct Even wider product range Limitedsales forceSales Force Ability to offer to a greater extent variety in terms ofprice levels More suit to explain productdifferencesBrand No positive impact Negative impact on brand imageOption 2 Stay with high-quality productsImplications forPROSCONSCustomer Maintaining image of qualityLeader Loss of Market share Not targetingprice sensitive consumersDistributor No need for adjustment instatistical distribution policy Low-price offer only fromcompetitor not from PSTSales Force Consistent and easy productquality No ability to offer event for pricesensitive customerBrand Consistent overall brand image No negative impactRecommendationPST should enter the economy grade segmentNEW BRAND New name (unrelated to PST) to avoid negative impact on brand image Marketed completely independentPRODUCT ready Development and launch of two new products to compete with Tensile Competitive pricing strategy (similar to Tensile)ENTER MARKET Make use of well completed distribution network Offer economy equivalents for RD-48 RDS-72SUCCESS FACTORS at that place is a projected growth in demand (e.g. packaging segment 2.2%) PST has an established 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 productionDistribution Plan Distribution through existing network for faster brand growth Hire more sales people to incre ase service quality sales in PSTs tape business