Sealed Air Corporation manufactures coated protected packaging products for a long time. It had 25% average annual growth in net sales from 1971 to 1980 and has been a market leader. Most of its success can be attributed to technical advancement, innovation and patent protection. It is has been the first in many like closed cell light weight cushioning system, foam-in-place packaging system among many others. It was also one of the first companies to approach market with a customer orientation. Sealed air corporation has licensed its patent technology only to one another firm called Astro. Till recently, these were the two major players in protected packaging market.
Recently, there has been a lot of localized competition from uncoated packaging products. GAFCEL was one of the only competitors to achieve significant sales volume. Due to the growing competition and losing market share to GAFCEL, Sealed Air Corporation has to decide whether to enter the uncoated bubble packaging market. It would be a complete about face from their existing emphasis on superiority of coated bubbles, and might lead to some changes in strategy to market the coated bubble packaging as well.
There are three major segments of the protective packaging industry: positioning, blocking and bracing; flexible wraps and void fill. Sealed Air Corp is facing competition mainly for its product AirCap used for protective packaging.
Distribution: Sales distribution is done through selective distributor network. It is a strong regional presence in eastern states which has helped in marketing the product. Distributors were loyal to Sealed Air Corp, but in order to become full-line houses, they carried a broad range of products, including products from competitors.
Customers: There were two categories of customers:
a.One two understood the technical details and quality and made informed decisions about buying the product. b.Ones who were more concerned...