Marketing scenario Essay

IntroductionPositioned as an premium offering focused to lowest overall cost to end users finished superior overall performance.Leader in fictitious character , performance and expert innovationProduct linesCarton sealing and industrial immortalisesSpecialized adhesivesOther promotion productsK2 tape Manufactured using patented technology and a defect draw for pressure sensitive carton sealing tapeVery mettlesome tensile strength and sheer resistancePositioningHigh PriceK2 Products low-down QualityHigh QualityIpackTensileNew ProductLow PriceProblem Statement K2 tape fightd against inferior economy grade products in carton sealing type IPACK offered 25-35% lesser price Revenue of K2- $68.6 jillion IPACK $28.5 million in 2012 Tensile a new competitor had $2.7 million dollar sale with one sales representativeShould PST stay with high type product or enter the economy grade segment ?Option 1 Enter the economy gradesegment low the same brandPROSAccess to the economy segment Defend market share against competitionDiversification of product portfolioCONSDilution of the brand image as a maker oftechnological superior productCannibalization of its own product offeringCluttered product lineOption 2 Enter the economy grade segmentunder different brandImplications forPROSCONSCustomer Ability to fulfill need of price sensitivecustomers Possibility of change in perception ofbeing a tint leaderDistributor Possibility to offer a low end PSTproduct Even wider product range Limitedsales force gross sales Force Ability to offer more variety in terms ofprice levels More effort to explain productdifferencesBrand No dictatorial impact Negative impact on brand imageOption 2 Stay with high-quality productsImplications forPROSCONSCustomer Maintaining image of qualityLeader Loss of merchandise share Not targetingprice sensitive consumersDistributor No need for adjustment indistribution policy Low-price offer only fromcompetitor non from PSTSales Force unvarying and ea sy productquality No ability to offer solution for pricesensitive customerBrand Consistent overall brand image No negative impactRecommendationPST should enter the economy grade segmentNEW BRAND New name (unrelated to PST) to avoid negative impact on brand image Marketed completely independentPRODUCT LAUNCH Development and launch of two new products to compete with Tensile Competitive pricing strategy (similar to Tensile)ENTER MARKET Make use of well established distribution network Offer economy equivalents for RD-48 & RDS-72 advantage FACTORS There is a projected growth in demand (e.g. packaging segment 2.2%) PST has an established sales force and distribution network in the tape market There is a lack of brand loyalty of price sensitive customers (switching to PSTs new brand) There was suitable equipment and capacity for quick production dispersion Plan Distribution through existing network for faster brand growth Hire more sales people to increase service quality & sales in PSTs tape business