Peak Sealing Technologies (PST) headquartered at Dallas, Texas, is a manufacturer of premium carton sealing tapes. Technological Leadership, secure and efficient sealing solutions, and intensive R&D efforts has been a competitive advantage for the company. It focuses on providing most innovative and high quality products to the customers. PST Brand -K2-tape is manufactured by using patented adhesive technology and high quality materials. It also uses polyester backing which results in very high tensile strength and tear resistance. Some of the company’s values are mentioned under: Even with premium pricing, K2 products are competing overall cost by their remarkable performance. Its exceptional performance under wide ranging conditions, …show more content…
There were certain arguments against the production of economy tape by the company which are mentioned below: The company has to lower its brand value to be able to compete in down-market. They have to face price wars and this might reduce profitability of the company. They might get complaints from distributors and existing customers. Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive. There will be loss of market share. Difficult to regain trust of existing loyal customers who expected high quality and performance when in competition with other firms in upper trade market. More competition in lower trade as other firms will try to convince that their product is better than K2-products. They will face even wider range of products. Being a high quality leader, it has to change its perception. ANSWER-4 If the company extends its production line towards economy tape, they would have to lower the quality and reduce price to compete with other firms in that
product that has the added value of being cost effective. However, in China, cost effectiveness
KRYLON is a Sherwin-Williams product its ads on the television back in the 70's With no runs, no drips, no errors is famous and is now making its way back into the market. Sherwin-Williams is also responsible for Dutch Boy, which is sold at all Sears stores. Minwax and Thompson's Water Seal were recently acquired by Sherwin-Williams in 1996. All these products are made by Sherwin Williams and are brand recognizable with their name only.
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
...nufacture its products more quickly and with reduced labor costs while maintaining the desired quality standards.
In particular, promotions should target consumer who use paper-products and foams. Leveraging the company's highly trained sales personnel, relative benefits and long-term cost savings afforded by superior bubble product should be stressed. Additional promotional efforts should include direct mailings to potential clients in the US and Europe. Importantly, all promotional efforts must target packaging engineers.
UST Inc. is a smokeless tobacco company with a long tradition and a recognizable brand name. A strong brand name can have lots of associations with high quality, revenues, soundness, growth, etc. But, this is one of the characteristics that can be like two edged sward. On one side, company with long tradition is expected to to operate in a stable and prosperous way as it always did, but on the other side, company itself can get too self confident and fail to see the newcomers and other threats. UST has ignored newcomers, and now they all have a growing market shares, while only UST Inc. total share, consequently, decreases. Smaller players are expanding their market share primarily by cutting prices, something that UST ignored. UST Inc. decided to fight competition not by decreasing prices, but with overstretching it product lines. However, this might not be the best solution. As the main player in the market, they had the better position to take on and win in the price war. If UST Inc. had been able to take this step, competitors probably would not be able to follow the price decrease imposed by the UST Inc and at least some of them would be shut down. So as one of the biggest drawbacks of UST's policy can be slow reaction to new market conditions and worse of all when they react the reaction is inappropriate.
Project responsibility is assigned to the division’s Research and Development Group: Mike Richards, the project scientist who developed the product, is assigned responsibiliy for project management. Assistance will be required from other parts of the company: Packaging Task Force, R & D Group: Corporate Engineering: Corporate Purchasing: Hospital Products Manufacturing Group: Packaged Products Manufacturing Group.
As like every retail organization, Wet Seal Inc., has seen the best and worst during their years in business. With the 9/11 tragedy and other natural disasters, the nation’s economy had seen better days. Wet Seal Inc. stuck it out with Kathy Bronstein behind the wheel, and in late 2001 sales increased into the double digits, and stock was up 61% for the year. A vendor partner stated, “ She’s one of the greatest merchants I know in the industry...she lives, eats, and breathes this junior business.”
Proctor & Gamble understands the high competition that already exists in the toilet paper industry, but feel that new Bounty Toilet Paper will change how this industry is geared. In recent times, toilet paper producers have stressed comfort and style in the production of their products, but as the times have changed, the American public is now more interested in getting the job done in the shortest amount of time with the smallest amount of the product. P&G have produced Bounty Toilet Paper because of this change in the lifestyle of Americans. With this focus on effectiveness and durability, Bounty will go into the new Millennium leading the toilet paper world.
Saran gave Sealed Air a competitive advantage by providing increased protection during shipping compared to uncoated bubbles. Another major point of success for Sealed Air was the importance they placed on market education to inform customers of the advantages of using coated bubbles. It worked extremely well because in 1980 Sealed Air was able to make $25.35 million in sales in the US. It wasn’t long after until competitors were able to penetrate the market forcing Sealed Air to make a choice, whether to enter the uncoated bubble packaging market or not. It was a difficult decision to make due to Sealed Air’s experience developing coated bubbles and its brand recognition. All while trying to maintain its market leadership and drive for technological innovation. The problem was if Sealed Air added uncoated bubble packaging to its mix it could unintentionally damage the reputation its most profitable product and set the company back
If consumers see the product as a convenience good rather than a shopping good, they are more than likely to go with the cheaper price. • Establishing new relationships with new suppliers requires time and effort to get the best materials at the lowest cost. • A possible weakness is the entry into large corporation retailers. A store such as Costco has a huge variety of items. There will be a lack of promoting and educating the customer in store about the key features of the product which is vital.
as foreign products enter the market, they may be of a better quality and even
Buyer power within the industry is low as substitute products are not easily accessible, unless the customer decides to negotiate with the providers.
Advertising may solve this problem in most cases. Consumers can gather information for several products through advertisements and because of this, producers must improve the quality of their products. But why firms advertise so much? As I noted above advertising increases consumer¡¦s information. So we can suppose that a firm which advertise much, has high quality products. A very expensive advertising campaign is something like a signal to potential consumers, that the firm believes that its product has good quality. Furthermore the company believes that because of its good quality products, is going to make repeat sales for a long time in order to ¡§recoup the fixed costs of initial advertising¡¨. On the other hand, firms with poor quality products ¡§that know that consumers will soon discover they have been misled about quality¡¨, do not invest much in advertising.
The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.