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Marketing scenario Essay


Paper type: Essay Pages: 2 (480 words)

Views: 254

Positioned as an premium offering focused to lowest overall cost to end users through superior overall performance.
Leader in quality , performance and technological innovation
Product lines
Carton sealing and industrial tapes
Specialized adhesives
Other packaging products
K2 tape – Manufactured using patented technology and a brand name for pressure sensitive carton sealing tape
Very high tensile strength and sheer resistance


High Price

K2 Products

Low Quality

High Quality
New Product
Low Price

Problem Statement
• K2 tape competed against inferior economy grade products in carton sealing type
• IPACK offered 25-35% lesser price
• Revenue of K2- .

6 million IPACK – $28.5 million in 2012
• Tensile – a new competitor had $2.7 million dollar sale with one sales representative

Should PST stay with high quality product or enter the economy grade segment ?

Option 1: Enter the economy grade
segment under the same brand
Access to the economy segment
Defend market share against competition
Diversification of product portfolio

Dilution of the brand image as a maker of technological superior product
Cannibalization of its own product offering
Cluttered product line

Option 2: Enter the economy grade segment
under different brand
Implications for:




• Ability to fulfill need of price sensitive customers

• Possibility of change in perception of being a quality leader


• Possibility to offer a low end PST product

• Even wider product range; Limited sales force

Sales Force

• Ability to offer more variety in terms of price levels

• More effort to explain product differences


• No positive impact

• Negative impact on brand image

Option 2: Stay with high-quality products
Implications for:




• Maintaining image of quality

• Loss of Market share; Not targeting price sensitive consumers


• No need for adjustment in distribution policy

• Low-price offer only from
competitor not from PST

Sales Force

• Consistent and easy product quality

• No ability to offer solution for price sensitive customer


• Consistent overall brand image

• No negative impact

PST should enter the economy grade segment


• New name (unrelated to PST) to avoid negative impact on brand image
• Marketed completely independent


• Development and launch of two new products to compete with Tensile
• Competitive pricing strategy (similar to Tensile)


• Make use of well established distribution network
• Offer economy equivalents for RD-48 & RDS-72

• 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

Distribution Plan
• Distribution through existing network for faster brand growth
• Hire more sales people to increase service quality & sales in PSTs tape business

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Marketing scenario. (2016, Apr 23). Retrieved from https://studymoose.com/marketing-scenario-essay

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Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Click to learn more https://goo.gl/CYf83b


Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Click to learn more https://goo.gl/CYf83b


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