Seneca Paper Company
| SENECA PAPER COMPANY Price Competition on Gummed Tape | | Marketing Plan |
October 9, 2010
EXECUTIVE SUMMARY Seneca Paper Company (SPC) is a gummed paper company operating in Niles, Michigan. SPC offered 3 types of tape; a 3rd grade tape named Durable, a standard grade called Sealite and a super standard grade called Imperial. Within the same industry there are 5 major players including SPC. However, SPC marked a considerable presence in terms of market share largely in the Midwest. This can be illustrated as follows: Market Players | Market Share | | National | East Coast | Midwest | Pheonix Paper Company | 18.0 | 13.5 | 4.5 | Seneca Paper Company | 10.0 | 2.5 | 7.5 | Compton Paper Company | 10.0 | 7.5 | 2.5 | Fletcher Corporation | 6.0 | 1.5 | 4.5 | Potsdam Tape Company | 6.0 | 4.5 | 1.5 | 3 Medium-Size Producers | 5.0 | 0.0 | 5.0 | Remaining Producers | 45.0 | 45.0 | 0.0 | | 100.0 | | | On December 10, 1987, SPC had decided to announce a price increase for its three grades of gummed sealing tape to be effective in January 9, 1988. The decision was contributed by the deteriorating profit experienced by SPC since 1985. As a result of the announcement, some producers had increased their prices too, however, several producers still did not follow suit. Thus, SMC had to decide whether to withdraw the price increase strategy or to shelf the price hike decision until February 8, 1988.
SPC’S BUSINESS VISION AND MISSION Vision Continue to be the market leader in the gummed paper industry specifically in the Midwest. Mission To give customers high-quality gummed tape values for their sealing and packaging tasks and ensuring customers satisfaction at all level.
SITUATION ANALYSIS ~ SWOT SUMMARY/ANALYSIS External/Internal | Key Strengths (S) *
October 9, 2010
EXECUTIVE SUMMARY Seneca Paper Company (SPC) is a gummed paper company operating in Niles, Michigan. SPC offered 3 types of tape; a 3rd grade tape named Durable, a standard grade called Sealite and a super standard grade called Imperial. Within the same industry there are 5 major players including SPC. However, SPC marked a considerable presence in terms of market share largely in the Midwest. This can be illustrated as follows: Market Players | Market Share | | National | East Coast | Midwest | Pheonix Paper Company | 18.0 | 13.5 | 4.5 | Seneca Paper Company | 10.0 | 2.5 | 7.5 | Compton Paper Company | 10.0 | 7.5 | 2.5 | Fletcher Corporation | 6.0 | 1.5 | 4.5 | Potsdam Tape Company | 6.0 | 4.5 | 1.5 | 3 Medium-Size Producers | 5.0 | 0.0 | 5.0 | Remaining Producers | 45.0 | 45.0 | 0.0 | | 100.0 | | | On December 10, 1987, SPC had decided to announce a price increase for its three grades of gummed sealing tape to be effective in January 9, 1988. The decision was contributed by the deteriorating profit experienced by SPC since 1985. As a result of the announcement, some producers had increased their prices too, however, several producers still did not follow suit. Thus, SMC had to decide whether to withdraw the price increase strategy or to shelf the price hike decision until February 8, 1988.
SPC’S BUSINESS VISION AND MISSION Vision Continue to be the market leader in the gummed paper industry specifically in the Midwest. Mission To give customers high-quality gummed tape values for their sealing and packaging tasks and ensuring customers satisfaction at all level.
SITUATION ANALYSIS ~ SWOT SUMMARY/ANALYSIS External/Internal | Key Strengths (S) *