1 / 36

Strategic Market Recommendations for Sealed Air's AirCap and SIBCO Product Lines

This document outlines strategic recommendations for enhancing the market presence of Sealed Air’s bubble wrap products, specifically AirCap and SIBCO, across the U.S. and European markets. Key strategies include increasing the sales force, enforcing a new commission structure, and educating end-users about the benefits of AirCap. Additionally, it highlights SWOT analyses for both product lines, addressing strengths such as market leadership and opportunities for uncoated bubble growth, while also recognizing threats and weaknesses in the competitive landscape.

hayes-decker
Télécharger la présentation

Strategic Market Recommendations for Sealed Air's AirCap and SIBCO Product Lines

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Sealed Air- AirCap Aurelie Operiol Alexandre Bonnier Nelly Tanizar Abe Feng Sarthak Shah Julia Kim Inggi Winata

  2. History • Bubble history • Growth • Uncoated bubble wrap threat • European markets

  3. (English  English) I love AirCap bubbles, they always protect and I can pop them when I’m done! (French  English) Look, this product made it through shipment well! It only has a few bruises on it! Translation

  4. US Market Recommendations • Part 1: Increase sales force • Part 2: Enforce 35% • Part 3: Educate end users • Part 4: Test uncoated with distributor

  5. European Recommendations • England: Launch SIBCO • Under the Sealed Air umbrella • France: Continue SIBCO • Watch AirCap • Germany: Launch SIBCO • Watch AirCap

  6. SWOT, Strengths • Market leadership • Innovation • Good Marketing and Sales • Loyalty of distributors

  7. SWOT, Weaknesses • How to market uncoated bubbles • Selective distribution • Inconsistent sales representatives

  8. SWOT, Opportunities • Uncoated bubble sales increasing • Europe becoming more price sensitive • Further AirCap growth in US

  9. SWOT, Threats • GAFCEL in US, uncoated bubble maker • Sansetsu in Europe, Germany • Quality uncoated bubbles • Lower price • Declining coated bubble market (Europe)

  10. US Market Recommendations • Part 1: Increase sales force • Part 2: Enforce 35% • Part 3: Educate end users • Part 4: Test uncoated with distributor

  11. US Part 1: Increase sales force • 4 additional salesmen • More distributors = More sales • Maintain Loyalty • First line distributors • 6:1 Distributor/Salesmen ratio • Distributor capacity: 370 – 394 • Makes financial sense

  12. US Part 1: Increase sales force • Income of around $40,000 • Adjusted for inflation ~ early 80’s • Fixed costs from salaries • Increase 3.72% • Sales • Increase 6.57%

  13. US Part 2: Enforce 35% • Time: Instapak 60%, AirCap 35% • Salesman currently ~ 20% to AirCap • Distributors currently unhappy • Incentive • Increase AirCap Commission ~ 2.5% • Happy distributors = more sales

  14. US Part 3: Educate end users • Distributors not educating end users • End users don’t know AirCap advantages • End users will pull sale from distributors • Pamphlets • 1 for every 5,000 sq ft

  15. US Part 4: Testing uncoated • Test with large client on trial basis • Large client: 2-3 first-line distributors • Less risk than in open market • Trial basis: 1 year trial

  16. Successful Uncoated penetration Readiness Not successful AirCap dominance Hold US Market Uncoated Test Implications

  17. European Recommendations • England: Launch SIBCO • Under Sealed Air umbrella • France: Continue SIBCO • Watch AirCap • Germany: Launch SIBCO • Watch AirCap

  18. Europe- England • AirCap still strong • 68% Market Share • Good distribution • Competitor: Sansetsu • Uncoated cost • 50% less than AirCap • Uncoated bubble growth

  19. Europe- England • Launch SIBCO • SIBCO unprofitable alone • Under Sealed Air umbrella • Uses Sealed Air salesmen • Uses AirCap distribution • No additional investment • Expectations • AirCap down, SIBCO up

  20. Already buying Don’t mention SIBCO SIBCO still in catalogue Emphasize AirCap performance Not buying Briefly mention SIBCO Alternative SIBCO lacks AirCap’s performance Europe- England MARKETING SIBCO

  21. Europe- France • SIBCO’s home • Sealed Air – 31% Market Share • 17% SIBCO • 14% AirCap • Uncoated growth expected • 1978- 50% coated, 50% uncoated • 1980- 30% coated, 70% uncoated • Uncoated- 40% less than AirCap price

  22. Europe- France • SIBCO • Natural growth • Expect AirCap to lose market share • AirCap no longer profitable • Pull the plug

  23. Europe- Germany • AirCap late into market • Never did well, Losing ground • Sansetsu Domination • 78% market share • AirCap- 5.2% market share • Coated bubbles unpopular • Uncoated cost- 35% of AirCap price

  24. Europe- Germany • AirCap unprofitable • Pull the plug • Introduce SIBCO • SIBCO to use AirCap distribution, sales • No additional cost • Realistic Expectations

  25. Financial Analysis • Overview • Part 1: Increase sales force by 4 • Part 2: Enforce 35% through increased commission (2.5%) • Part 3: Educate end users through pamphlets ($0.50 pamphlets)

  26. Sales Forecasts • 6.5% Sales Increase • 370 distributors w/ 713,000 sq ft. avg volume per distributor • 62 sales representatives • 370/62 = 6 distributors per rep • 4 new sales representatives • 4*6 = 24 new distributors • 24*713,000 -> 6.49% more business

  27. Important Variables • Pamphlet Amortized Cost ($0.50 pamphlet) [variable] • Commission increase [variable] • Number of new employees at $40,000 salary [fixed]

  28. Decision Possibilities (Exhibit 1)

  29. Break-Even (Exhibit 2)

  30. In-Depth Analysis (Exhibit 3) • Original contribution: $22.16 • New contribution: $21.95 • Extra commission • Pamphlet cost • Break-Even: 3.72% • Retain last years profits and cover the $160,000 fixed costs • Projected Sales Increase: 6.5% • Profits: +2.75%

  31. Profit Estimations (Exhibit 4)

  32. European Market(Exhibit 5) • Fixed Costs: $0 • Contribution • Germany: $10.94 • France: $9.76 • England: $2.66 • Break-Even: 0 (profitable from the very first sale)

  33. Conclusion • US Market Recommendations • Part 1: Increase sales force • Part 2: Enforce 35% • Part 3: Educate end users • Part 4: Test uncoated with distributor

  34. Conclusion • European Recommendations • England: Launch SIBCO • Under Sealed Air umbrella • France: Continue SIBCO • Watch AirCap • Germany: Launch SIBCO • Watch Aircap

  35. Overall Goals • Europe • Market share in France, Germany • Sansetsu • US • Maintain AirCap’s strength • Monitor uncoated penetration

  36. THE END http://www.urban75.com/Mag/bubble.html

More Related