Marketing Strategy: Polyfibron Offset Printing Blanket Product in the U.S. Market
4044 Words17 Pages
Milchem LTD Polyfibron Offset Press Blanket
The objective of this paper is to analyse Milchem Ltd Company and make recommendations on the Marketing Strategy and on the introductory price for the Polyfibron Offset Printing Blanket product in the US Market. After years of research and development, with some previous doubts for launching a new product, John Keon, Marketing Manager of Milchem, has now the task for developing the marketing strategy for the new Polyfibron Off Set Printing Press Blanket.
The oligopoly US blanket market, where 5 competitors share 95% of the total market, is estimated at 2MM square yards that represent US$ 120 MM of revenues and 3,600 current customers. Milchem has developed a new…show more content… In sum, the main positive reaction for the customer for a new problem is to give him a product that can improve the quality and efficiency of the current blanket with a current price .
Another important information received as a market research conclusion, a product able to reduce surface tolerance from a current 0.001 to 0.0005 would be much appreciated for the customer, get a positioning in the market, and capture a large proportion of it.
Annually, the printing blanket market is estimated around 2 MM square yards. The price for square yard of current printing blankets fluctuates between US$56 and US$62.5. In fact, according to the research the market for polyfibron offset blankets would accept an average price of US$ 60 per square yard. In sum, the expected market has expected revenues around US$ 120 MM annually.
The company has invested at least in three market researches, has had positive outcomes as to know the reliability of a new product, unsatisfied necessities of the potential customers, marginal costs, and the expected marginal profit.
There have been positive comments in the last survey to 30 potential customers, held in Boston and done by the company. In fact, the trade Journal emphasised the benefits of the product by "might be a major breakthrough in blanket design resulting in a printing member that would improve the accuracy of tone reproduction and extend the life of plates" .