Marketing 7 Case

8/9/2019 Marketing 7 Case

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Rohm and Haas New Product Marketing in B2B VenkataGhanta

1. What factors ha e !ed to the fai!ure of "athon MW#$

"athon MW#% A biocide that can kill microorganisms in metal working fuids,tailor made to be used in tanks with less than 1000 gals capacity. Theproduct/its substiutes didnt arewell as they hardly were able to capture anyo the e pected !"0 million market share #$%& sales ha'e been !1",000against targeted !"00,000 ()*+. Total market si e was around 1-0,000 smallend consumers. %ater permeable plastic packet sachets o was used in smalltanks. The ailure o the product can be largely attributed to

&he marketing cam'aign hasn(t addressed the safet) concernsraised *) the com'etiti e 'roducts in the +1,--- ga!!onssegment% articipants in the sur'ey were apprehensi'e about sa ety andhandling systems. Addressing the concerns would ha'e been a betterstrategy along with e plaining the cost bene t details

istri*ution network for MW# was in nascent stage/non0e istent2ohms 33) $% relied e tensi'ely on primary ormulation distribution as it

catered to medium/large businesses, whereas $%& that primarily targetssmall business customers has no hold on the secondary distributionchannel rom whom the consumers typically buy the product/ser'ice rom.%ithout the a'ailability o product at right place, a hal baked campaignalone cant generate the en'isaged sales.

&he 'u!! marketing strateg) wasn(t e ecti e!) im'!emented% 4uto (1-0,000 small businesses, interest in trying out a ree sample wasrecei'ed only rom "00 #(0.1*+ and e'en in those who e pressed interestonly "0* remember recei'ing the samples.

3ow awareness of 'roduct and its uses% articipants in the sur'eyre'ealed using regular household disin ectants and none were aware o $%&. The customers dont eel the need and arent aware o the bene ts

pro'ided by this/substitutes.

2. 4n contrast to "athon MW#, wh) is "athon 556 MW sosuccessfu!$

"athon 556 MW% A biocide that can kill microorganisms in metal workingfuids, tailor made to be used in tanks with more than 1000 gals capacity. Theproduct has ared e tremely well o ten beating the targets and was able togarner a market share o 50* in !13 $illion market. 6istributed by 1" ma7ormetalworking fuid ormulators. Total market si e was around 5"- large andmedium end consumers. The success o this product contrary to the one that

is targeted at smaller capacity tanks can be largely attributed to Product is wide!) a ai!a*!e to consumers 'ia primary distribution

channels o ormulators mostly under pri'ate labels. 7 ecti eness% ower ul product, only need small 8uantities to treat large

tanks, so the percei'ed 'alue o consumers is high. #10 times moree9ecti'e than competing products+

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Rohm and Haas New Product Marketing in B2B VenkataGhanta

7 tended the !ife of di!uted 8uids in centra! s)stem reser oirs%2educed the replacement cost o diluted fuids which also increased theeconomic 'alue to the end customer

9o!d as a 'art of *und!ed maintenance 'ackage *) ma:orsu''!iers to the end customers

;om'ati*!e with /1-,--- Ga!!on#;.;-@10000/ 00+, Bess e9ecti'e against microorganisms and lasted only or5 days.

owici!

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Rohm and Haas New Product Marketing in B2B VenkataGhanta

$%& product is mainly targeted towards indi'idual systems with lesscapacity and hence the end users are the ragmented small plants who reliedma7orly on =ndustry supply houses and machine tool supplies or theirmaintenance needs. Cut the industry supply houses and machine tools shopspurchased their supplies primarily rom ormulators or whom maintenance

supplies/ser'ices is an add on product/di9erentiator and contributed 'ery lessto the o'erall topline #(10*+. Dupplier plays a crucial role in de'elopment o the market, the end users arent 'ery concerned about the standalonemaintenance fuids and o ten get the ser'ice/product as a bundled package.Do both ormulators and the secondary distribution network partners bothplay a key role in taking this product to consumers.

?. What is the a''ro'riate marketing strateg) for "athon MW#$What shou!d each of the >Ps !ook !ike$

Product/P!ace/Promotion% The product is relati'ely superior compared to

the competitors in sa ety and e>cacy aspects/ =t needs buy in rom both theprimary and secondary distribution players, e'en though the company hastied up with ma7ority o primary distributors, they probably doesnt seementhusiastic about promoting 2ohms product o'er their e isting line o products. Also as the customer awareness regarding the brand/company is'ery low #as e'idenced in the sur'ey+ it is better o9 to allow pri'ate labelingso that it can easily mo'e to the secondary distribution channel members. =?terms o promotion the company should initial place emphasis on de'elopingthe distribution network at primary and secondary le'el, i.e pursue a pushmarketing strategy initially and then once the product is a'ailable it can ocuson generating primary demand through a pull marketing strategy.

Price%