BUAD 880 Rohm and Haas Case Study 1. Purpose of the Report: Joan Macey, the Rohm and Haas market manager for Metalworking Fluid Biocides, was reviewing the marketing approach for the recently introduced Kathon MWX maintenance biocide. Rohm and Haas is one of several manufacturers that develop liquid biocide chemicals for eliminating microorganisms in metalworking fluids. The company currently manufactures the Kathon 886 MW concentrate biocide, the leading biocide in the concentrate biocide market
Corporate Finance case 2 Dow’s Bid for Rohm and Haas Justin Overtoom 6132111 Rutger Go 10782923 Binghong Cheng 10824588 Xianjing Cai 10874089 23-02-2015Introduction Dow started as a manufacturer of commercial bleach in 1897, and was founded by Herbert Dow. He merged his company in 1900 with Midland Chemical, which lead to diversification of his portfolio to agricultural and food products. In 1912, Dow started to pay dividends every quarter without any reductions or interruptions
Introduction 1.1Background This report has been written as part of the academic requirements of the Master of Business Administration. 1.2Size up A small part ($5.4 million) of Rohm and Haas' $1.9 billion sales (1983) is derived from the sale of metal working fluids. Currently these sales are realized through the product Kathon 886MW (886MW), which is mainly used as a maintenance biocide in central metal working systems fluid reservoirs. Because of suggestions from the current end-users and
Rohm & Haas Marketing plan for Kathon MWX (1984) 1. EXECUTIVE SUMMARY Rohm & Haas is a diversified chemicals company. Its industrial chemicals division manufactures maintenance biocide products to the metal working industry. The company enjoys a healthy 30% market share with its Kathon 886 MW in the Central Systems segment. Rohm & Haas has recently launched Kathon MWX to target 150,000 customers in the Individual systems segment where the market for biocides is underdeveloped and has
ROHM AND HAAS CASE WRITE-UP 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
Executive Summary Rohm & Haas recently introduced a new product, Kathon MWX, in order to exploit an untapped portion (reservoir capacity under 1,000 gallons) of the biocide market. Even with limited competition within this segment, Kathon MWX has not been able to produce its annual target revenues, only capitalizing on roughly 6% of said target in a 5 month period. Large-scale distributors, who exhibit the most buyer power and influence over end customers in the industry, threaten manufacturer
Dow’s Bid for Rohm and Haas 1.Why does Dow want to buy Rohm and Haas? Dow, a producer of low-valued cyclical commodity chemicals, had future aspirations of being not only the largest but as well the highest valued chemical company in the United States. Its strategy was simple: to be an asset-light company with extremely high growth potential fuelled through advanced technology, geographical reach, strong industry channels and an overall switch in to the advanced specialty chemical
Write up for Rahm and Haas (Group 4) Rohm and Haas launched a product Kathon MWX in Dec 1983 for less than 1000 gallon capacity. Sales in first five months for Kathon MWX are $12000. Kathon 886MW and Kathon MWX were sold through a network of formulator/Distributor. Kathon 886MW had a 30%share of $18 million maintenance biocide market for large systems. The issues which we are addressing here are, * Does Kathon MWX like Kathon 886 MW be privately branded by Rohm & Hass? “The company
Why does Dow want to buy Rohm and Haas? Was the $78 per share bid reasonable? Why was the deal structured as all cash? Dow Chemical (“Dow”) wants to acquire Rohm and Haas (“Rohm”) for its strong operational and strategic fit. When Liveris became Chairman and CEO of Dow, he shifted the focus to growth and profitability by becoming an asset light producer of commodity chemicals and becoming a high-valued-added producer of specialty chemicals and advanced materials. This combination is a step in
Introduction The case presents an American company Dow, producer of commodity chemicals, who is in the final stages of acquiring another company Rohm and Haas. Dow’s CEO has been working for four years to transform Dow from a producer of low-value, highly cyclical commodity chemicals to a producer of high-value, specialty chemicals and advanced materials. Rohm is a perfect match for Dow in respect of the strategic and financial perspective. Dow is also pursuing another key deal with Kuwait’s Petrochemical