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Sealed Air- AirCap. Aurelie Operiol Alexandre Bonnier Nelly Tanizar Abe Feng. Sarthak Shah Julia Kim Inggi Winata. History. Bubble history Growth Uncoated bubble wrap threat European markets. (English  English)

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Sealed air aircap

Sealed Air- AirCap

Aurelie Operiol

Alexandre Bonnier

Nelly Tanizar

Abe Feng

Sarthak Shah

Julia Kim

Inggi Winata


History
History

  • Bubble history

  • Growth

  • Uncoated bubble wrap threat

  • European markets


Translation

(English  English)

I love AirCap bubbles, they always protect and I can pop them when I’m done!

(French  English)

Look, this product made it through shipment well! It only has a few bruises on it!

Translation


Us market recommendations
US Market Recommendations

  • Part 1: Increase sales force

  • Part 2: Enforce 35%

  • Part 3: Educate end users

  • Part 4: Test uncoated with distributor


European recommendations
European Recommendations

  • England: Launch SIBCO

    • Under the Sealed Air umbrella

  • France: Continue SIBCO

    • Watch AirCap

  • Germany: Launch SIBCO

    • Watch AirCap


Swot strengths
SWOT, Strengths

  • Market leadership

  • Innovation

  • Good Marketing and Sales

  • Loyalty of distributors


Swot weaknesses
SWOT, Weaknesses

  • How to market uncoated bubbles

  • Selective distribution

  • Inconsistent sales representatives


Swot opportunities
SWOT, Opportunities

  • Uncoated bubble sales increasing

  • Europe becoming more price sensitive

  • Further AirCap growth in US


Swot threats
SWOT, Threats

  • GAFCEL in US, uncoated bubble maker

  • Sansetsu in Europe, Germany

    • Quality uncoated bubbles

    • Lower price

  • Declining coated bubble market (Europe)


Us market recommendations1
US Market Recommendations

  • Part 1: Increase sales force

  • Part 2: Enforce 35%

  • Part 3: Educate end users

  • Part 4: Test uncoated with distributor


Us part 1 increase sales force
US Part 1: Increase sales force

  • 4 additional salesmen

  • More distributors = More sales

  • Maintain Loyalty

    • First line distributors

    • 6:1 Distributor/Salesmen ratio

  • Distributor capacity: 370 – 394

  • Makes financial sense


Us part 1 increase sales force1
US Part 1: Increase sales force

  • Income of around $40,000

    • Adjusted for inflation ~ early 80’s

  • Fixed costs from salaries

    • Increase 3.72%

  • Sales

    • Increase 6.57%


Us part 2 enforce 35
US Part 2: Enforce 35%

  • Time: Instapak 60%, AirCap 35%

  • Salesman currently ~ 20% to AirCap

  • Distributors currently unhappy

  • Incentive

    • Increase AirCap Commission ~ 2.5%

  • Happy distributors = more sales


Us part 3 educate end users
US Part 3: Educate end users

  • Distributors not educating end users

  • End users don’t know AirCap advantages

  • End users will pull sale from distributors

  • Pamphlets

    • 1 for every 5,000 sq ft


Us part 4 testing uncoated
US Part 4: Testing uncoated

  • Test with large client on trial basis

  • Large client: 2-3 first-line distributors

    • Less risk than in open market

  • Trial basis: 1 year trial


Uncoated test implications

Successful

Uncoated penetration

Readiness

Not successful

AirCap dominance

Hold US Market

Uncoated Test Implications


European recommendations1
European Recommendations

  • England: Launch SIBCO

    • Under Sealed Air umbrella

  • France: Continue SIBCO

    • Watch AirCap

  • Germany: Launch SIBCO

    • Watch AirCap


Europe england
Europe- England

  • AirCap still strong

    • 68% Market Share

  • Good distribution

  • Competitor: Sansetsu

  • Uncoated cost

    • 50% less than AirCap

  • Uncoated bubble growth


Europe england1
Europe- England

  • Launch SIBCO

  • SIBCO unprofitable alone

  • Under Sealed Air umbrella

    • Uses Sealed Air salesmen

    • Uses AirCap distribution

    • No additional investment

  • Expectations

    • AirCap down, SIBCO up


Europe england marketing sibco

Already buying

Don’t mention SIBCO

SIBCO still in catalogue

Emphasize AirCap performance

Not buying

Briefly mention SIBCO

Alternative

SIBCO lacks AirCap’s performance

Europe- England MARKETING SIBCO


Europe france
Europe- France

  • SIBCO’s home

  • Sealed Air – 31% Market Share

    • 17% SIBCO

    • 14% AirCap

  • Uncoated growth expected

    • 1978- 50% coated, 50% uncoated

    • 1980- 30% coated, 70% uncoated

  • Uncoated- 40% less than AirCap price


Europe france1
Europe- France

  • SIBCO

    • Natural growth

  • Expect AirCap to lose market share

  • AirCap no longer profitable

    • Pull the plug


Europe germany
Europe- Germany

  • AirCap late into market

  • Never did well, Losing ground

  • Sansetsu Domination

    • 78% market share

    • AirCap- 5.2% market share

  • Coated bubbles unpopular

  • Uncoated cost- 35% of AirCap price


Europe germany1
Europe- Germany

  • AirCap unprofitable

    • Pull the plug

  • Introduce SIBCO

  • SIBCO to use AirCap distribution, sales

    • No additional cost

  • Realistic Expectations


Financial analysis
Financial Analysis

  • Overview

    • Part 1: Increase sales force by 4

    • Part 2: Enforce 35% through increased commission (2.5%)

    • Part 3: Educate end users through pamphlets ($0.50 pamphlets)


Sales forecasts
Sales Forecasts

  • 6.5% Sales Increase

    • 370 distributors w/ 713,000 sq ft. avg volume per distributor

    • 62 sales representatives

    • 370/62 = 6 distributors per rep

    • 4 new sales representatives

    • 4*6 = 24 new distributors

    • 24*713,000 -> 6.49% more business


Important variables
Important Variables

  • Pamphlet Amortized Cost ($0.50 pamphlet) [variable]

  • Commission increase [variable]

  • Number of new employees at $40,000 salary [fixed]



Break even exhibit 2
Break-Even (Exhibit 2)


In depth analysis exhibit 3
In-Depth Analysis (Exhibit 3)

  • Original contribution: $22.16

  • New contribution: $21.95

    • Extra commission

    • Pamphlet cost

  • Break-Even: 3.72%

    • Retain last years profits and cover the $160,000 fixed costs

  • Projected Sales Increase: 6.5%

    • Profits: +2.75%



European market exhibit 5
European Market(Exhibit 5)

  • Fixed Costs: $0

  • Contribution

    • Germany: $10.94

    • France: $9.76

    • England: $2.66

  • Break-Even: 0 (profitable from the very first sale)


Conclusion
Conclusion

  • US Market Recommendations

  • Part 1: Increase sales force

  • Part 2: Enforce 35%

  • Part 3: Educate end users

  • Part 4: Test uncoated with distributor


Conclusion1
Conclusion

  • European Recommendations

  • England: Launch SIBCO

    • Under Sealed Air umbrella

  • France: Continue SIBCO

    • Watch AirCap

  • Germany: Launch SIBCO

    • Watch Aircap


Overall goals
Overall Goals

  • Europe

    • Market share in France, Germany

      • Sansetsu

  • US

    • Maintain AirCap’s strength

    • Monitor uncoated penetration


THE END

http://www.urban75.com/Mag/bubble.html


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