Marketing scenario Essay

Positioned as an premium offering focused to lowest overall cost to stop users through superior overall public presentation.
Leader in quality. public presentation and technological invention
Merchandise lines
Carton waterproofing and industrial tapes
Specialized adhesives
Other packaging merchandises
K2 tape – Manufactured utilizing patented engineering and a trade name name for force per unit area sensitive carton waterproofing tape
Very high tensile strength and sheer opposition


High Monetary value

K2 Merchandises

Low Quality

High Quality
New Product
Low Price

Problem Statement
• K2 tape competed against inferior economic system class merchandises in carton waterproofing type
• IPACK offered 25-35 % lesser monetary value
• Revenue of K2- $ 68. 6 million IPACK – $ 28. 5 million in 2012
• Tensile – a new rival had $ 2. 7 million dollar sale with one gross revenues representative

Should PST stay with high quality merchandise or come in the economic system grade section?

Option 1: Enter the economic system class
section under the same trade name
Entree to the economic system section
Defend market portion against competition
Diversification of merchandise portfolio

Dilution of the trade name image as a shaper of technological superior merchandise
Cannibalization of its ain merchandise offering
Cluttered merchandise line

Option 2: Enter the economic system grade section
under different trade name
Deductions for:




• Ability to carry through demand of monetary value medium clients

• Possibility of alteration in perceptual experience of being a quality leader


• Possibility to offer a low terminal PST merchandise

• Even wider merchandise scope ; Limited gross revenues force

Gross saless Force

• Ability to offer more assortment in footings of monetary value degrees

• More attempt to explicate merchandise differences

Trade name

• No positive impact

• Negative impact on trade name image

Option 2: Stay with high-quality merchandises
Deductions for:




• Maintaining image of quality

• Loss of Market portion ; Not aiming monetary value sensitive consumers


• No demand for accommodation in distribution policy

• Low-price offer merely from
rival non from PST

Gross saless Force

• Consistent and easy merchandise quality

• No ability to offer solution for monetary value sensitive client

Trade name

• Consistent overall trade name image

• No negative impact

PST should come in the economic system grade section


• New name ( unrelated to PST ) to avoid negative impact on trade name image
• Marketed wholly independent


• Development and launch of two new merchandises to vie with Tensile
• Competitive pricing scheme ( similar to Tensile )

ENTER Market

• Make usage of good established distribution web
• Offer economic system equivalents for RD-48 & A ; RDS-72

• There is a jutting growing in demand ( e. g. boxing section 2. 2 % )
• PST has an established gross revenues force and distribution web in the tape market
• There is a deficiency of trade name trueness of monetary value sensitive clients ( exchanging to PSTs new trade name )
• There was suited equipment and capacity for speedy production

Distribution Plan
• Distribution through bing web for faster trade name growing
• Hire more gross revenues people to increase service quality & A ; gross revenues in PSTs tape concern


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