Sealed air aircap
This presentation is the property of its rightful owner.
Sponsored Links
1 / 36

Sealed Air- AirCap PowerPoint PPT Presentation


  • 62 Views
  • Uploaded on
  • Presentation posted in: General

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)

Download Presentation

Sealed Air- AirCap

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


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)

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

  • Part 1: Increase sales force

  • Part 2: Enforce 35%

  • Part 3: Educate end users

  • Part 4: Test uncoated with distributor


European Recommendations

  • England: Launch SIBCO

    • Under the Sealed Air umbrella

  • France: Continue SIBCO

    • Watch AirCap

  • Germany: Launch SIBCO

    • Watch AirCap


SWOT, Strengths

  • Market leadership

  • Innovation

  • Good Marketing and Sales

  • Loyalty of distributors


SWOT, Weaknesses

  • How to market uncoated bubbles

  • Selective distribution

  • Inconsistent sales representatives


SWOT, Opportunities

  • Uncoated bubble sales increasing

  • Europe becoming more price sensitive

  • Further AirCap growth in US


SWOT, Threats

  • GAFCEL in US, uncoated bubble maker

  • Sansetsu in Europe, Germany

    • Quality uncoated bubbles

    • Lower price

  • Declining coated bubble market (Europe)


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

  • 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 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%

  • 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

  • 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

  • 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


Successful

Uncoated penetration

Readiness

Not successful

AirCap dominance

Hold US Market

Uncoated Test Implications


European Recommendations

  • England: Launch SIBCO

    • Under Sealed Air umbrella

  • France: Continue SIBCO

    • Watch AirCap

  • Germany: Launch SIBCO

    • Watch AirCap


Europe- England

  • AirCap still strong

    • 68% Market Share

  • Good distribution

  • Competitor: Sansetsu

  • Uncoated cost

    • 50% less than AirCap

  • Uncoated bubble growth


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


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

  • 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- France

  • SIBCO

    • Natural growth

  • Expect AirCap to lose market share

  • AirCap no longer profitable

    • Pull the plug


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- Germany

  • AirCap unprofitable

    • Pull the plug

  • Introduce SIBCO

  • SIBCO to use AirCap distribution, sales

    • No additional cost

  • Realistic Expectations


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

  • 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

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

  • Commission increase [variable]

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


Decision Possibilities (Exhibit 1)


Break-Even (Exhibit 2)


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%


Profit Estimations (Exhibit 4)


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

  • US Market Recommendations

  • Part 1: Increase sales force

  • Part 2: Enforce 35%

  • Part 3: Educate end users

  • Part 4: Test uncoated with distributor


Conclusion

  • European Recommendations

  • England: Launch SIBCO

    • Under Sealed Air umbrella

  • France: Continue SIBCO

    • Watch AirCap

  • Germany: Launch SIBCO

    • Watch Aircap


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


  • Login