Barco Case Analysis

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___________________________________________________________________________ Problem Statement Joan Macey, the market manager for Metalworking Fluid Biocides, was facing a dilemma as she had to come up with a new approach of taking the Kathon MWX to market. Kathon MWX was a new biocide that killed microorganisms in metalworking fluids and could be used in metalworking fluid reservoirs smaller than 1,000 gallons. It had targeted sales volumes of $0.2, although sales in 1984 were immensely low: 5% against the predicted volume. Macey was also responsible for the marketing of Kathon 886 MW, which was a primary maintenance biocide on the market, a powerful biocide used in large metalworking fluid tanks and well-received by the consumers. However, there was a significant market potential of the product for smaller capacity tanks. By producing a product that could satisfy the needs of customers, who required a convenient and safe-to-use biocide for their smaller reservoirs, Rohm and Haas had an opportunity to expand the maintenance market. In order to tap this huge segment and increase sales the company had to re-evaluate the marketing strategy for Kathon MWX and enhance its allocation for distribution and marketing expenditures. It was also important to consider the necessity to communicate the safety in usage and cost-effectiveness to the end users. Taking into account the limited budget and the nature of existing distribution channels the marketing director had to review her marketing plan and find out new ways to accomplish the company’s objectives. ___________________________________________________________________________ Recommendations. In the view of the above mentioned we have identified a number of recommendations for Rohm and Haas to promote Kathon MXW and increase its market share. 1) Allow private label branding by formulators. 2) Increase the price

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