ROHM AND HAAS CASE Harvard Case Solution & Analysis

ROHM AND HAAS Case Solution

1.     Introduction A (purpose & value):

The purpose of this memo is to assess the value of new product, Kathon MWX proposed by the company in the maintenance of biocides market with its existing product line and provide the necessary recommendations in resolving the issues that were not previously considered which resulted in it not getting a return on investment.

2.     Introduction B (preview):

The primary issue that the company is facing is related to a decline in the sales revenue of the newly issued product. Mainly due to a lack in awareness regarding the product’s attributes. Therefore, it is recommended that the company should replace the formulator channel and distribute Kathon MWX through its private branded channels, including the industrial supply house as well as the factory outlet shops that could also help in creating awareness in the mind of the customers, which is the key concern and could result in the provision of vigorous promotion.

3.     Analysis and Support:

Kathon MWX is relatively a very good product for solving issues faced by its customers. In addition to this, this product is more compatible as compared to other competitive products. However, the only issue with this product that the costumers are reluctant to use this product. This is also due to its aesthetical attributes, as they do not appeal to customers. However, the company has provided sufficient information concerning its use.

As far as the user experience is concerned, customers tend to have a negative impression towards this product as they feel it can be a cause of rancidity and dermatitis, which resulted in less sales of this product. Another important factor behind the lack of use of this product is due to lack of awareness regarding its benefits and the availability of substitute goods that include deodorants and household disinfectants.

Kathon MWX can increase the life of metalworking fluids by up to four weeks in comparison to its competitors. With the help of private channels, the company can create awareness in among customers concerning its benefits. In addition to this, the market has a potential reach of $ 38 million.

Thus by looking at this case qualitatively as well as quantitatively, their issues regarding revenue generation could be solved by stopping of fees paid to formulator channels and through distribution using private channels. In addition to this, the company should also focus on its packaging. The current package can easily be used for 50-gallon tanks; however, there should be some more packaging for larger tanks that could help the company in increasing the demand of their product.

From the exhibits, it can be observed that Kathon MWX is economical for its customers in comparison to products that it is competing with. It is also recommended that the company should increase Kathon MWX’s price by at least $3 to $4 after they have successfully increased awareness regarding its benefits. (McFarlane, 2013)

Moreover, an increase in the would add a sense of prestige to the product. In addition to this, the excess revenue from the increase in price can be spent further on promotional campaigns and advertisements of the product.................

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