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Rohm and Haas Case Study 2

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Rohm and Haas Case Study 2
Rohm and Haas
Sayali Suryawanshi
John F. Kennedy University
Marketing Management
April. 26. 2015
No. Words: 1604

1. What is Kathon MWX really worth to users (answer needs to be a dollar value that is supported through your reasoning, show formula for value)
Kathon MWX’s primary benefit is that it keeps metalworking fluids in tanks clean for a longer period of time. Other competing alternatives when compared to Kathon MWX’s are less powerful and would need to replace the metalworking fluid very often which will result in user spending more.
Below is the example that supports my above reasoning:
Kathon MWX vs Tris Nitro:
Tris Nitro, another product that was available at the time when Kathon MWX was introduced into the market. However, Kathon MWX comes with a pack that supports 25 gallon fluid tank whereas the Tris Nitro supports 50 gallon fluid tank for the same price.
Also, the products were designed differently. Tris Nitro is effective only 3 days whereas Kathon MWX is effective for 21 days.
Let’s consider users have a 50 gallon fluid tank that needs to be cleaned.
One Kathon MWX packet = 1.1 $, One Tris Nitro packet = 2.2 $
One Kathon MWX packet is designed for = 21 days for 25 gallon fluid tank, One Tris Nitro packet is designed = 3 days for 50 gallon fluid tank.
Money spent by Kathon MWX user for one year:
365 days/21 days * 2 * 1.1 $ = 17.38 * 2.2 $ = 38.23 $
Money spent by Tris Nitro user for one year:
365 days/3 days * 2.2 $ = 121.6 * 2.2$ = 267 $
Total money saved by Kathon MWX user for one year is 267.67 – 38.23 = 229.43 $
Hence it is always advantage for user if they use Kathon MWX product when compared to other competitor such as Tris Nitro.
Standard Formula that can be used to calculate the annual spending for both products are:
Kathon MWX:
365/21 days * 2 * ($ price of each packet)
Tris Nitro:
365/3 days* ($ Price of each packet)

2. Why isn’t Kathon MWX not selling? How would you describe the user environment?
Kathon MWX has

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