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ENGM 181

Gaurang Desai

Amir Golnabi

Allie McKendry

 Jens Moebius

Harinarayanan Ranganathan

Case Reie!"

Rohm and Haas

 Thayer School of Engineering 11/4/2010

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Background

1983: $2B worldwide ale fro! 4 eg!en"

#a"hon !icroiocide %roduc": $2&'

 Thayer School of Engineering

2

Polymers, resins,

and monomers Plastics

Agricultural

chemicals

Industrial

chemicals

Fluid Process

chemicals

Petroleum

chemicals

Kathon 886 MW Kathon MWX

Specialty

chemicals

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Background

'e"alworking (uid: )0 !illion gallon in "he*S

Biocide kill !icroorgani! in !e"alworking

(uid

 Thayer School of Engineering

3

#roduct name#roduct name K 88$ M%K 88$ M% K M%&K M%&

 Trea"!en"ca%aci"y

1+000 gal&0,100 galreer-oir

'arke"%o"en"ial

$18' $20'

Sale .olu!e $&4' 1983$02' "arge" in

1984

c"ual ale

during 1"

 -e!on"h $21' $12+000$12+000 11/4/2010

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5%"i!i"ic 6ro%ec" for '7

rea" !arke" %o"en"ial $38'

'ain"enance iocide likely "o gain !arke"

hare

Se-eral ad-an"age:• Eay "o ue•

o !ain"enance• Safe• ;igher e

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Bu" i" doen>" ell

=ack of need recogni"ion for iocide

=ack of rand awarene a!ong end

conu!er

=ack of '7 awarene

=ack of awarene of "he ene" of '7

=ack of incen"i-e for di"riu"or "o ell '7

 Thayer School of Engineering

&

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End,*er E.? of #a"hon '7

?o!%are co" incurred y end,uer who doeand doe no" ue #a"hon '7

 Thayer School of Engineering

)

Not 'singM%&

'sing M%&

@luid ?oncen"ra"e6urchae

$ $

@luid Ai%oal $ $

ik of @luid Ai%oal C C

.alualAi

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End,*er E.? of #a"hon '7

u!%"ion

'ain"enance iocide eD"end (uid life indeni"ely

1 al *ndilu"ed @luid  2& al Ailu"ed @luid

1 6acke" of '7  &0 al Ailu"ed @luidTy%icalF S!all 'achine Sho% 22 'achine D &0 al Tank G 1+100 al/?ycle

4,week ?ycle aed ?alcula"ion Sho% no" uing '7: Ai%oe @luid

Sho% uing '7: dd '7

5"her .ariale and @iDed ?o" Hgnored

 Thayer School of Engineering

I

11/4/2010

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End,*er E.? of #a"hon '7

@luid ?oncen"ra"e 6urchae ?o" ?alcula"ion

$&)8/al ?oncen"ra"e

 Thayer School of Engineering

8

cle$24992/cycycle1

dilu"egal1+100

dilu"egal2&

econcen"ra"gal1

econcen"ra"gal1

$&)8=××

Fluid concentrate purchase cost percycle for small machine shop

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End,*er E.? of #a"hon '7

@luid Ai%oal ?o" ?alcula"ion

$13)/al Ailu"e

 Thayer School of Engineering

9

Fluid disposal cost per cyclefor small machine shop

cycl$1+49)00/cycle1

dilu"egal1+100

dilu"egal1

$13)=×

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End,*er E.? of #a"hon '7

 Thayer School of Engineering

10

Not 'sing(iocide

'sing KathodM%&

@luid ?oncen"ra"e6urchae

$24992 $24992

@luid Ai%oal $1+49)00 $1+49)00

ik of eeding

Ai%oal

100C 0C

.alualAi

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ke"$I93)/%ac%acke"1

dilu"edgal&0

dilu"edgal1+100

cycle1

cycle1

$1+I4&92=××

End,*er E.? of #a"hon '7

 Thayer School of Engineering

11

Cost small machine shop is willing

to pay per MWX packet 

cycl$1+I4&92/$1+49)00$24992E.?   =+=

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?o!%are re-enue accrued y di"riu"orwhich doe and doe no" ell #a"hon '7

Ai

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Break,E-en 6rice for Ai"riu"or

 Thayer School of Engineering

13

u!%"ion

Sa!e a %re-iou

 Jearly Baed ?alcula"ion

1 Ai"riu"or  1 S!all 'achine Sho% Ai"riu"or e-enue G 'achine Sho% ?o"

Ai"riu"orK only %roduc" for ale are (uid

concen"ra"e and '7

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Break,E-en 6rice for Ai"riu"or

Selling 5nly @luid ?oncen"ra"e

Selling @luid ?oncen"ra"e and '7

 Thayer School of Engineering

14

r$3+248/yeyear1

cycle13

cycle1

$24992=×

Revenue per year for distributor selling only uid to smallmachine shop

Revenue per year for distributor selling uid & MWX to smallmachine shop

13D/ye$24992year1cycle13

cycle1$D

year1$24992

+=×+

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ke"$1048/%ac%acke"1

dilu"egal&0

dilu"egal1+100

cycle1

cycle1

$230)2=××

Break,E-en 6rice for Ai"riu"or

 Thayer School of Engineering

1&

,nlyConcentrate

Concentrate -M%&

@luid ?oncen"ra"eSale

$3+24800 $24992

'7 Sale $000 13.otal /ales 023458677 04564 12&

cle$230)2/cy=

Revenue distributor will earn for selling MWX to small machine shop percycle

reak!even price a distributor will charge per MWX packet sold to smallmachine shop

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6A 6roce

 Thayer School of Engineering

1)

16 9deaGenerat

ion

H "heHdeawor"hconideringL

46 9deascreening

H "he%roduc"ideaco!%a"ilewi"hco!%anyK

oMec"i-e+"ra"egie+andreourceL

26Conce:tdeelo:ment andtesting

?an we nda goodconce%"conu!er

ay "heywould "ryL

56Mar;eting/trategydeelo:m

ent

?an we nda co",e

ation

re %roduc" ale!ee"ingeD%ec"a"ionL

5%%or"uni"y nalyi 6roduc"

Aeign'arke"ing 'iD

=aunch

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Error in "he 6A 6roce

 Thayer School of Engineering

1I

16 9deaGenerat

ion

H "heHdeawor"hconiderin

gL

46 9dea

screening

H "he%roduc"ideaco!%a"ilewi"hco!%anyKoMec"i-e+"ra"egie+and

reourceL

26Conce:tdeelo:ment andtesting

?an we nda goodconce%"conu!er

ay "heywould "ryL

56Mar;eting/trategy

Deelo:ment

?an we nda co",e

ation

re %roduc" ale!ee"ingeD%ec"a"ionL

'arke"ing S"ra"egy Ae-elo%!en" o %ri-a"e randing for '7

=ack of incen"i-e for di"riu"or

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eco!!enda"ion for HncreaedSale

llow %ri-a"e randingN ?an %roduce good reul" in "he near fu"ure

N Aoe no" ha-e a long "er! %er%ec"i-e

'arke" co" e

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 Thayer School of Engineering

20

.han; you?

eference

#o"ler+ 6hili%+ and #e-in #eller Marketing Management  13"h ed *%%erSaddle i-er+ P: 6ren"ice ;all+ 2009 &I4 6rin"

angan+ . #a"uriQ =aley+ SuanQ oh! and ;aa : ew 6roduc"'arke"ing S"ra"egy+F ;BS o 9,&8I,0&& Bo"on: ;ar-ard Buine School6ulihing+ 1993

11/4/2010