Sealed Air Essay

Problem Statement:   AirCap, a coated bubble wrap, has been Sealed Air’s (SA) most profitable product which allowed the firm to remain a market leader and technological innovator of in the U.S. protective packaging market. Recent successful market penetration of new competitors has forced SA to consider launching a new product line of uncoated bubble packaging.   SA must develop a response and plan to its competition (GAFCEL and others) and carefully evaluate new product introduction in U.S. and European markets given their brand recognition, core competency and management style of leaders and technological innovators within the industry.
Segmentation, Targeting, Positions (STP):  
Segmentation:   1-Blocking-used for shipments of motors, computers 2-Flexible– used as filler for glassware, small parts, medical devices 3-Void – used as filler for large shipments; not characterized under flexible wrapping.
Targeting:   Coated bubble -SA should continue focus on AirCap; develop niche market in U.S.   Uncoated bubble- focus on European (EU) market which is narrow-competitors may not be able to eliminate threat of SA product entry.  
Positioning: Target dealer & distributors for both U.S. & EU – reinforce, maintain high quality image & reliability, develop price premium for customers who value performance and cost-efficiencies.  
One of the 4P’s- Product
•Product: Individual brand strategy-Launch uncoated w/ different brand name than AirCap – differential b/w products.
•Price: Match price strategy to GAFCEL, focus on reducing production costs for SA in future.   Work w/ distributors to market product, focus on B2B – Awareness so distributors fully understand benefits for end users.   Shared-Cost-Effect-reinforce sales presentations of lab data –demonstrate SA products save material, labor costs and reduce product damage.   Propose savings shared w/ distributors to increase margins (both coated & uncoated)....