Sealed Air Corporation

2601 Words Aug 15th, 2014 11 Pages
General Description
Sealed Air Corporation was one of the leading protective packaging companies with a good market reputation in countries like France, Germany, US and England. The company differentiated itself in the market with technological innovative leadership and hence the company was the first who made a new protective packaging product using coated air-bubble, AirCap. For ten years, the company remained successful with its unique AirCap protection packaging product however, unfortunately the market trends were rapidly changed and the technologically advanced coated bubble was replaced by the inexpensive and regular uncoated bubble products. The increasing demand of inexpensive uncoated bubble packaging was a direct threat for
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The current strategy of that time for Sealed Air Corporation was customer orientation and they had manufactured products according to the needs of the customers regarding packaging. So they manufactured a number of products including InstaPak foam in-place systems. Later on due to the continuing drop in demand for coated products the company needed to change their strategy and Hauser proposed to produce low cost uncoated bubbles in a short time with no major capital investments. Hauser was himself unclear about the marketing plan for the new product because the launch of new products and the new marketing program would increase the cost to the company and so the company would be needed to make certain adjustments in its overall policies.
Analysis of the Competitive Structure of the Market
The market of the protective packaging products was divided into two major classes, uncoated bubbles and coated bubbles. Thus different types of packaging products were Positioning, Blocking, Bracing, Flexible wraps and Void fill (uncoated bubbles) and AirCap (Coated Bubbles). In this regard the competitive structure of the market for uncoated bubbles was high with a number of competitors whereas in the category of coated bubbles, Sealed Air Corporation was the only producer and market leader and so they offered this product at a premier price.
The customers of all these products were companies and organizations through select distributor

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