Rohm And Haas (A) New Product Marketing Strategy Case Solution

1. What is Kathon MWX really worth to users?

The Kathon MWX can be useful for the users for reducing their costs of the concentrate biocide. The maintenance biocide would increase the life of the concentrate resulting in lesser money being spent on the concentrate. The price point of the MWX is adjusted according to the strategy that the purchase of the product gives an economical benefit to the lower, individual level producers.

However, the usage of unbranded and other home-based products to avoid the bacteria in the metal is greater than the usage or preference of branded goods. The general perception is that the branded goods would give the same benefits, without any additional features of no bad odor. The bad odor is a secondary reason for the purchase of the branded biocide. However, with the home solutions in place, the value derived from the brand would not be very high. Therefore, the usability of the MWX can be only worth the economic benefits it provides as well as the production of high quality, non-bacterial product.

2. Why isn't MWX selling?

The primary reason for the low level of sales of the product is the market for the product. The market has not yet been established among the individual or small-scale producers. This means that the customers are not aware of the value derived from the product. The marketing strategy is the push that is not very successful due to the disinterest of the distributors in the sale of the products. The marketing is being done through booklets and samples. However, only 20% of the sample reached the consumers that show the level of disinterest from the distributor end. Also, the marketing strategy has no demonstrations for the product’s usage which is why the level of interest in the product has been low.  

The distributors are interested in selling their unbranded redistributions to the small-scale consumers. Also, they are not getting a high level of margin, and the price bargain is on the distributor because the price is not fixed. This has created a level of disinterest for the product, resulting in the failure of the push strategy as well. 

3. How would you describe the user environment? Who makes the purchase decision? How? Who uses biocides? How? 

The user environment in the small-scale manufacturers is not developed. There is no acceptability for a product like MWX. The perception is that there is no need for the product and the level of interest among the users is low. The people use household disinfectants in place of the branded biocide. They do not realize the difference in benefits derived from the two products. The final purchase decision is made by business owners who are the primary decision makers for the small-scale businesses. They make the decision based on the needs of the business. They opt for the option that is more readily available (the disinfectants). The people involved in the manufacturing in the small-scale business use the biocides. Therefore, the benefits should be marketed to the business owners and decision makers, whereas the instructions for the usage should be given to the people in the manufacturing or the employees of the business.