Case Summary Rohm and Haas is a diversified chemical company operating in four distinct business segments of which

the focus of the case is on biocide products division of the specialty chemicals group. The biocide

products catered to the needs of the metal working industry. Its two major products- Kathon 886 MW and

MWX were maintenance biocides and Rohm and Haas controlled about a 15-20% share in the

maintenance biocide market. The Kathon 886 MW operated in the central systems market while the

Kathon MWX was targeted at smaller users in the relatively new individual users market (Table B). In the

latter, current products are inferior and require substitutes like deodorants or disinfectants which have

little positive effect. The challenge lay in the fact that despite producing a superior product with obvious

benefits, Kathon MWX was unknown to a large fraction of the target population and thus less than 6% of

the initial target was achieved. Rohm and Haas wishes to revamp its marketing strategy to improve the

MX’s prospects in this huge untapped market.

Analysis

Based on our analysis of case facts we found the following problems and suggest corresponding

remedies for the product:

Problems Recommendations

Price

1. Multiple distribution channels cause major price fluctuation

2. Lower price may lead to bad perception about the product quality.

1. The price of the product needs to be fixed for the end user.

2. Until the market matures, the price should be kept at par with the competitors.

Promotion

1. The advertisements did not focus on cost savings and additional benefits.

2. The free sampling was not monitored as very few customers remembered about the free sample in the survey

1. The following benefits must be highlighted in the advertisements to increase awareness. a. 1% concentration required for treatment

compared to an industry average of 15%. b. Reduction in maintenance cost to longer

life of the biocide. c. Safety benefits of using Kathon MWX. d. Cost effectiveness vs competitors

2. An incentive system for sample in the distribution channel must be introduced

Place

1. Formulators focus mostly on the central system customers. The MWX had lower margins

2. Low brand awareness as distributors brand privately

3. Individual systems mainly buy from industrial supply houses

4. Kathon MWX increases fluid life reducing service requirement for formulators.

1. Remove formulators from the channel and distribute directly to the industry supply houses. This will :

a. Open up $40 bn distribution channel b. Primary selling to industrial supply

houses leading to more potential earnings and increased marketing efforts from the latter

2. Vertical integration where company opens own distribution channel has high potential benefits.

Product

1. Privately branded by formulators

1. Removal for formulators leads to more brand awareness

Group 4A

Sabarinath U H13041 Shaadab Zafar H13048

Santu Paul H13045 Shubhang Aggarwal H13050

Satyartha Srivastava H13046 Sourik Syed H13053