Rohm and Haas

Essay text:

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...