MDP-24: Strategic Marketing Management Module
Case: Rohm and Haas (A) – New Product Marketing Strategy
Harvard Business School
Summarized by Sattawat (Jet)
• This case raises issue for reader for further recommendation of new product strategy. • The case is written about failure in sales volume of new product launching, Kathon MWX. The product is very good compared to competitors’. However, due to poor marketing strategy, sales were much poorer than target.
• Rohm & Haas (R&H) is chemical company with hundreds of different products. This case focuses on industrial chemical, biocides for metalworking fluid, Kathon 886 MW and Kathon MWX. • Metalworking fluid is used in operation such as milling, grinding and drilling. The fluid lubricates and cools down machine and work piece. • Microorganisms, such as bacteria and fungi, flourish in fluid during production process. It causes production and environmental problem. Biocides are solution for metal working fluid. • Formulators (Chemical companies) make concentrate metalworking fluid and sell to machine operators. Biocides are always added in fluid to prevent bacteria • For biocide, there are 2 major markets:
- Concentrate Biocide = Add in the first time to make concentrate metalworking fluid (then dilute with water 90-95%). >> Age 3-4 weeks. - Maintenance Biocide = Add to diluted metal working fluid to extend its life. >> Age 5-6 weeks (1-2 weeks longer). Adding maintenance fluid regularly does not required complete flushing of fluid tank.
Maintenance one will soon replace concentrated one within 10 years. 886 MW is primary maintenance biocide. • 886 MW is good for large metalworking fluid tanks, above 1,000-gallon capacity, but not suitable for small-capacity tank. Then MWX was developed to serve this segment. Comparison of both products per below table.
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