Ye, relook at segmentation is necessary for proper product Strategy.

 For promotion, company should use free sample for advertising but according to
break even analysis it would be better if Rohm and Hass give sample to 50% of the
main distributors and by adding the survey they can have feedback about their
sample
 Also they should have explanation about cost/benefit analysis on their package. As
adding sales reps would cost too much for company, they should allow distributor
and formulators market the product.

Problems
1. Multiple distribution channels
cause major price fluctuation
Price 2. Lower price may lead to bad
perception about the product
quality.
1. The advertisements did not
focus on cost savings and
additional benefits.
Promotion 2. The free sampling was not
monitored as very few
customers remembered about
the free sample in the survey
1. Formulators focus mostly on the
central system customers. The
MWX had lower margins
2. Low brand awareness as
Place distributors brand privately
3. Individual systems mainly buy
from industrial supply houses
4. Kathon MWX increases fluid life
reducing service requirement
for formulators.
Recommendations
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.
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
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.

1. Privately branded by 1. Removal for formulators leads to more brand

Product formulators awareness