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Rohm And Haas

Essay by   •  November 16, 2010  •  275 Words (2 Pages)  •  1,702 Views

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Rohn and Haas

Customer

Machinist - segmented by networking fluid system

Central Systems

Segmented by metal

Ferrous

Large to small scale

Market $12-16M (78% total)

Kathan 886 MW 15-20% share ($2.45M)

Bacteria levels not critical

Nonferrous

Reservoirs -> 150,000 gal

Market $3-5M (22% total)

Fluid required to be kept bacteria free

Kathan 886 MW 70-80% share ($3M)

Total Market: $18M

Individual Systems

Candidates for MWX

150,000 plants, 1.7M machines

- Customer Survey

o Discard fluid after 3 weeks due to rancidity and dermatitis

o Indifferent to service cost of disposal

o 20% of participants received MWX info packet - Distributors did not help

o Apprehensive about safety, but explanation of technique overcame fears

o Majored sourced from supply houses and tool shops within 30 miles

o Only 50% of users used any product to kill odor-causing bacteria

o None tried MWX

R&H Company

- Strengths

o Margin

o Product - reduces churn

o Market well segmented for 886 MW and MWX (same product/different form)

- Weaknesses

o No brand recognition of Kathon

o Customers don't appreciate problems with tanks

Competitors

- Other chemical manufacturers

o Dow Chemical - competes on maintenance central and standalone

 Dowicil 75

* Good against bacteria and fungi - Ferrous

o Angus Chemical - competes on maintenance central and standalone, also does concentrate

 Sump Saver: $7.75 / pound

* Less effective against bacteria - Nonferrous

* Ineffective against fungi

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