Tuesday, November 12, 2019
Positioned as an premium offering focused to lowest overall cost to end users through superior overall performance. Leader in quality , performance and technological innovation Product lines Carton sealing and industrial tapes Specialized adhesives Other packaging products SKI tape Ã¢â¬â Manufactured using patented technology and a brand name for pressure sensitive carton sealing tapeEvery high tensile strength and sheer resistance Positioning High Price K Products Low Quality High Quality Ã¢â¬Ëpack Tensile New Product Low Price Problem Statement ; K tape competed against inferior economy grade products in carton sealing type ; Ã¢â¬ËPACK offered 25-35% lesser price ; Revenue of K- $68. 6 million Ã¢â¬ËPACK Ã¢â¬â $28. 5 million 2012 ; Tensile -a new competitor had $2. 7 million dollar sale with one sales representative Should SST stay with high quality product or enter the economy grade segment ?Option 1: Enter the economy grade segment under the same brand PROS Access to t he economy segment Defend market share against competition Diversification of product portfolio CONS Dilution of the brand image as a maker of technological superior product Conceptualization of its own product offering Accoutered product line Option 2: Enter the economy grade segment under different brand Implications for: Customer ; Ability to fulfill need of price sensitive customers ; Possibility of change in perception of being a quality leaderDistributor ; Possibility to offer a low end SST product ; Even wider product range; Limited sales force Sales Force ; Ability to offer more variety in terms of price levels ; More effort to explain product differences Brand ; No positive impact ; Negative impact on brand image Option 2: Stay with high-quality products ; Maintaining image of quality Leader ; Loss of Market share; Not targeting price sensitive consumers ; No need for adjustment in distribution policy.