Sealed Air Company

Sealed Air Company

2. SUMMARY

The protective packaging market is becoming more competitive.

Sealed Air company is encountering a growing number of competitors in its field. Similar or alternative systems are now proposed against those of Sealed Air. These new systems are often cheaper but as argued by Sealed Air less effective concerning the protection they offer and therefore less cost-effective.

A new company (GAFCEL) has entered the market with an uncoated product and is having success on the New York, California and Ohio market. Sealed Air will face further erosion of its US market share.

Based on the analysis of the AirCap® product as well as on the analysis of the market, we will answer questions regarding Sealed Air's reaction to its new competitor GAFCELL and the opportunity to introduce a new uncoated product in the market.

We will make marketing recommendations on how to introduce this new product and in which geographical market to launch it in order to maintain Sealed Air as a leader of the protective packaging market.

3. QUESTIONS

3.1. What should Sealed Air be trying to accomplish in any decision it makes in response to the GAFCEL threat?

• It should be trying to gain back the market share that was taken by GAFCEL and it should ensure it does not loose anymore market share.

• It should ensure it keeps its reputation of a company built on ‘technical accomplishments’ and must ensure its image does not suffer from the possible introduction of this new uncoated product.

• It should not ‘cannibalise’ itself and therefore it should ensure the products are segmented correctly.

3.2 What has been happening in the market and how is Sealed Air doing?

In order to answer this double question, we have completed and focused our analysis mainly on the AirCap product manufactured by Sealed Air.

3.2.1 Strengths and Weaknesses

MIX STRENGTHS WEAKNESSES

PRODUCT - quality & reliability

- benefit to customers

- barrier coating with saran

- 8 different grades to fit all applications

- patent protection

- registered trade mark - only coated products offered in the USA

PRICE - 10[%] margin to distributors for direct sales

- quantity discount - higher than competitors, up to 50[%] (England)

COMMUNICATION ...

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...nd this will be effective only with specific selling training sessions with real life scenarios.

5. Conclusion

Sealed Air Group will now be able to offer a complete range of products : uncoated and coated.

Sealed Air Group will maintain its reputation, its image of quality regarding the coated products.

Sealed Air Group with its accurate and well-thought strategy will avoid the cannibalism effect as much as possible.

Sealed Air Group will regain market share and sustain its leadership across the US, Europe and in the developing countries (expansion programme).

Sealed Air Group will be able to propose and sell the appropriate product to the appropriate customer through the appropriate distributor.

Sealed Air Group will set up tailored-made programmes for each country according to the buying mentalities, the purchasing habits and specificities of each country .

Sealed Air Group is fully aware that key success factor of its above strategy is the distributor network : Sealed Air Group will build up loyalty with the key distributors through exclusivity, special incentives, special events and higher commissions, in the US and even more across Europe.