Rohm and Haas Case Study

1053 WordsDec 3, 20115 Pages
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 million market to individual systems. Alternative 1 Maintain Status Quo Pros: Kathon MWX is in the introductory stage of the product life cycle and the individual adoption…show more content…
They could use the information gathered to add to their survey. No additional staff would be needed and cost would be minimal compared to other options. Cons: Since it had little response the first time, the odds of new customers reading the magazine are not high and they really will not be raising awareness of the products benefits or reaching the small users of the product. The only readers who received samples had to fill out reader service coupon, which may act as a deterrent. Each ad cost $3,800. Distributors are expected to follow up and generate orders, which takes an element of control away from Rohm and Haas and leaves the “selling” up to the distributors who have other products to sell. Recommendation My recommendation is for Alternative 2. Adjusting the promotion strategy to target the new “small users” instead of the industry formulators brings awareness of the product which should be the first step in the introduction phase of the product life cycle. The results of the previous survey showed that the majority of users sourced from small, local supply shops close to their business, therefore this promotional strategy will make Kathon MWX more visible and accessible to wider range of consumers. If Kathon MWX can capture just 15% (each competitor in biocide markets holds 15-20%) of the potential $20 million dollar market, it can increase sales by
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