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    Iim Shi

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    Abhishek Khemka
    in bind

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    © All Rights Reserved
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    Iim Shi

    Uploaded by

    Abhishek Khemka
    65 views15 pages
    in bind

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    iim shi

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    in bind

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    65 views15 pages

    Iim Shi

    Uploaded by

    Abhishek Khemka
    in bind

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    Kalpesh Bramhankar

    PGX 103

    Topic-In a Bind, Peak Stealing Technologies’ Product


    line Extension Dilemma
    COMPANY PROFILE
    • Name-Peak sealing technologies's(PST)
    • Corporate Headquarter –Dallas,Texas
    • CEO & President-Mr. Ethane Sloane
    • Product Line-Carton sealing & Industrial tapes, Specialized adhesives, other
    packaging tapes and Complementary packaging tapes
    • Brand Mission-Continue development of cutting edge technology to provide
    stronger, more secure, efficient sealing solution to our customers
    • Competitive advantage-Technological leadership & Intensive R&D
    Increasing with an average of 30%
    PRODUCT DESCRIPTION
    • Name-K2 https://www.youtube.com/watch?v=hr7yWWq5ZZs
    • Application-Pressure sensitive carton sealing
    • Manufacturing Technology-Pressure sensitive hot melt adhesive patented technology
    with a premium polyester backing
    • Characteristics-Tensile strength and tear resistance, durability, holding force and higher
    heat and cold resistance than BOPP(bi-axially oriented polypropylene)
    • Value proposition-Lower overall cost to the end user through superior performance
    • Available in variety of widths, lengths, thickness, adhesives and backing material
    COMPETITORS
    • Inferior, economy grade and 25-30% cheaper – I-Pack
    BOPP, Lacked K2 strength
    28.5 million sales in 2012

    • Massachusetts based competitor-Tensile


    Economy, BOPP backed sealing tape
    Sales in 2012 $2.7 million sales

    • Few distributors have already shifted to competitors product


    INDUSTRY-Adhesive and sealant
    • SEGMENTATION
    Product Type-Natural Adhesives, Emulsion and dispersion chemistries, hot melt
    formulation and other reactive & solvent based adhesives

    End User Type


    1. Packaging
    2. Manufacturing & Assembly
    3. Construction
    4. Consumer/Other
    • Pricing: All tape were sold through the distributors. The company employs a
    premium price strategy.
    • Sales-Key Factors in company Success
    Manpower-40

    Scope-spend time with customers and solve problem

    Contribution for the positioning of the brands

    Hurdles due to expansion in packaging system


    • Before 22 people were spending 80% now only 35%

    Being most knowledgeable and talented in the industry

    Salary
    DISTRIBUTORS
    • Highly selective 125 distributors with 55 being “Distinctive
    Distributors”

    • One Stop for packaging & Steering

    • Order processing and fulfillment

    • Joint Call with the sales team

    • Hurdles due to expansion of PST

    • Sales team less time devotion as compare to 2009


    COMPETITIVE THREAT
    • Market is open to new low price product
    • Customers are extremely price sensitive
    • Lack of brand loyality

    • Taylor(K2 Product manager) analysis from lab results for I-Pack and Tensile products
     I-Packs products are very inferior
     Tensile products are halfway decent for uncomplicated, regular duty application
     Initial opinion is that Tensile’s Ecoslim might become a competitor to K2-Tape’s RD-48 and Ecoplus to
    RDS-72

    • Robinson(Nort-Eastern Regional sale manager ) believe that Tensile’s success to date came
    at the expense of I-Pack, not K2-Tape
    SUGGESTIONS
    • Some members of PST’s Executive committee suggested that
    the best way to defend against the threat is to add similar
    lower quality, less expensive product to the PST line-up

    • President & CEO was not convinced and had asked Product
    manager of K2, Emma Taylor, to give formal suggestion on
    how to avoid the economy product threat.
    Product manager recalled President
    and CEOs’ speech-
    MAINTAIN PREMIUM PRODUCT
    LINE OR FOLLOW DOWN-MARKET?
    THANK YOU

    THANK YOU

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