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Rohm and Hass

In: Business and Management

Submitted By rjainfinance
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Write up for Rahm and Haas (Group 4) Rohm and Haas launched a product Kathon MWX in Dec 1983 for less than 1000 gallon capacity. Sales in first five months for Kathon MWX are $12000. Kathon 886MW and Kathon MWX were sold through a network of formulator/Distributor. Kathon 886MW had a 30%share of $18 million maintenance biocide market for large systems. The issues which we are addressing here are, * Does Kathon MWX like Kathon 886 MW be privately branded by Rohm & Hass?
“The company offered private branding on kathon 886 MW but not on Kathon MWX”
As quoted by a company manager
“… We want the end-user to know it’s a Rohm and Hass Product…”

* Formulators included Kathon MWX as part of their maintenance service, though kathon 886 MW was expected to be used by the end-user themselves to do the maintenance work.

* Issue with the distribution channel

* Does increase in price of the product would change the end perception about the product?

* Does not know what the short term and long term sales were appropriate for Kathon MWX?

* Is Kathon 886 MW a help or hindrance in developing a market for Kathon MWX?

Assumption:- * Expiration period of 6 months. * Selling price of Kathon MWX by Rohm & Hass is $1.

Kathon MWX:-
Strength
* It is more economical compared to competitor products. * Sales force is well educated and would advise consumer in formulation. This product controls bacteria and fungi. It does not release formaldehyde.
Weakness:-
* There is no private branding for Kathon MXW. * This product exhibited a poor sales figure in last five months even though the product is good. They were not able to sell the product as expected.
Opportunities:-
* Huge market for metal fluid reservoir smaller than 1000 gallons. * Also there are very less competitors in this segment.

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