1. Describe the corporate culture at Sealed Air. What is its business model? How do they make money?
Since its start Sealed Air’s goal has been a position as a market leader and as a constant technology developer. Doing things first was always the main idea. This strong idea of being market leader was also inspired by greater and sustainable profits which have always been assured for the market leader. Continuing analysis of customer needs was based on this corporate behavior which always took place just after the production initiation. Even in terms of attention paid to customer desires ,Sealed Air was one of the first. Customer oriented approach was an important matter also because educating the customer about advantages of the
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First, since the firm has been a “historic champion of barrier-coating”, starting producing a product which has been characterized by the very firm as weaker and lower quality would go against the very major message of the company and its cost-effectiveness approach. This would at least put under question mark the image of the company and its philosophy, at most render almost futile all its market education efforts of more than a decade. Anyway, as mentioned, GAFCEL’s success did not come about as a result of creating additional market but rather of gaining a portion of market previously occupied by Astro. It is not that the profit margins were low for the uncoated products (indeed, these hovered around 60-70%), but the change in the product line would have been against the whole idea of Sealed Air. And the firm had very good brand awareness and the American customer was opting for quality and cost-effectiveness.
In contrast to the American market, the emergence of new competitors on the European market seemed to have the potential of a much more powerful impact. The European customer was not that “educated” about the product and many regarded packaging supplies as “expendable commodities”, making the price in this market a key driving determinant of purchase choice. In this context, the decision to diversify by enlarging the product line into uncoated bubble packaging material would have a lesser effect on firm’s image. Also, faced
It is critical for Sealed Air to introduce uncoated product if desire to maintain the market leader’s position, with existing machinery and technology, it would not require extra effort to produce uncoated products but have comparable production costs to competitors. As several distributors has been demanding uncoated products from Sealed Air, it seems reasonable for the company to start producing it, it would increase loyalty from the distributors and allow Sealed Air to have a more complete range of products with affordable prices for high to low-end customers. Sealed Air has already lost some market share and showed signs of continuous decline in the market’s position, uncoated product will be a ticket back into the game, it is likely to
Sealed Air prides itself on being the market leader and fostering technology leadership. It markets a superior product for
Mensa’s packaging business had three major markets; Food and Beverage, Specialty Packaging, and International. This sector was economically sensitive, as it was difficult to build any competitive
A new company (GAFCEL) has entered the market with an uncoated product and is having success on the New York, California and Ohio market. Sealed Air will face further erosion of its US market share.
Identify some core values of this organization as best as you can. What do they believe in (beyond organizational success or profitability)? How might their revealing these values to customers and employees create opportunities to exceed expectations? How can they translate core values into actions to produce A-plus value, thus strengthening relationships?
This paper will discuss the business chosen for the assignment. A mission statement will be developed, setting the business apart from others in the same or similar market. The vision statement will also made, discussing the direction the business wants to take in the future. Other topics such as, principles or values will be discussed. Concluding the paper will analyze the mission and vision statement, and values in guiding the business in a strategic direction. Followed by an evaluation of customers need in giving the competitive advantages.
Market leadership and technological innovation have marked Sealed Air's participation in the U.S. protective packaging market. Several small regional producers have introduced products, which are less effective than Sealed Air's but similar in appearance and cheaper. The company must determine its response to this new competition. The company is faced with a difficult choice of choosing from a range of feasible options ranging from doing nothing to introducing a new product. This has raised product line management issues, particularly cannibalization, and affords the opportunity for the development of a marketing plan for any new product introduction. The timing of launch and any change in policies for Air Cap
Customers get important cues of the product from the product quality, packaging, pricing, placement and promotions. A review of the pricing of select product categories (see figure 1) reveals that in all product categories that had a competitive National brand, HEB was priced lower than the leading National Brand. Customer psychology assumes that the brands charge for quality and that a highly priced brand signals a high quality product. HEB strategy to price lower than leading National Brands works against building a high quality reputation amongst its customers. To fix this disconnect, the company should price its H-E-B brand very close to
It is apparent that a growing segment of end users are willing to forgo product quality for a lower price. European firms, in particular, are price conscious and less technically oriented; many firms view packaging supplies as expendable commodities. This has enabled manufacturers of technically inferior, inexpensive uncoated bubble to co-opt AirCap customers with increasing success (Appendix B).
5. In what ways does the product’s packaging need changing when the product is being marketed in another country?
Stella Artois, informally called Stella, is a pilsner beer between 4.8 and 5.2% ABV. It is a beer brand from Belgium and it also brewed in other locations. Stella Artois is one of the prominent brands of Anheuser-Busch InBev, the world’s largest brewer. Stella Artois has its own Pouring Ritual and iconic serving chalice and it is savoured in 95 countries as a complement to elegant events and fine dining (ABInBev, 2014). The first point will be discussed is Stella Artois’ s market entry strategy. As same as other international companies, Stella Artois also uses acquisition strategy to expand its market. As InBev attempted to maximise its product portfolio by launching its leading brands into new markets, Stella Artois was launched as a premium product in Latin America (Passport, 2005). China is the key focus of Stella Artois’s efforts to generate growth. The 2014 acquisition helped the company make the fastest growing top 10 player in the market (ABInBev, 2015). The acquisition also served to strengthen its position in economy larger and enhanced the company’s production and distribution infrastructure in the market. The second point being analyzed is Stella Artois’s marketing strategy. First of all, the packaging strategy of Stella Artois will be analysed. The packaging of Stella Artois has evolved over time. However, the mandate on the design has not change. All packaging must be supreme quality and worth (Stella Artois, 2004). Stella Artois packaging always exclusive
Packaging and labeling of products are other key essential parts of the Cooper Company logistics to provide satisfaction to their customers. Accurate packaging and labeling can have a direct impact on the Cooper Company logistical productivity and efficiency (Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. p.251. 2013). The company’s packaging accounts differs for each channel this entail the retail accounts 80 percent of the packaging cost and Foodservice of 20 percent (Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. p.465. 2013). “The retail channel requires “labeling” to accrue the company a 2,000,000 expense includes materials, labor, and depreciation of the machine.
Packaging appearances act as a key element in brand communicators and play a dynamic part in purchase decision (1).
1. What is Costco’s business model? Is the company’s business model appealing? Why or why not?
Changes witnessed over the last few years on mode of packaging and its economic impact.