One Finger Down CristianDohi, Lena Grosse, Nicklas Peele Consumer Behavior General Overview General Overview Was this a threat PST should respond to? Yes, judging by the SWOT Analysis, they should respond by entering the economy market with a separate economy brand. Internal Perspective Own Strengths Own Weaknesses External Perspective • PST has no economy products • Technology and R&D • Patented products • Highest quality • Innovation Opportunities • Diversification • Eco-friendly technology • New adhesive technology • (acrylic, natural rubber) • Growth of economy market Threats • Diversified product portfolio (packaging services) • Decreasing service quality • Premium strategy • No products for • construction • Stagnating • market • Price sensitive customers • Growing construction market • Limited products • Basic services
One Finger Down CristianDohi, Lena Grosse, Nicklas Peele Consumer Behavior General Strategic Recommendations • Market research: • Customer behavior • New usage opportunities • Diversification opportunities • Understanding the buying center • Obtain external quality certificates (e.g. SGS). • Shift of corporate mentality: selling the benefit (safety), instead of product • Improve delivery service to boost customer satisfaction. • More effective sales management & usage of CRM • Include direct distribution • Explore green technology, resealable tape technology, acrylic and natural rubber adhesive tape technology.* • Up- and downstream integration *Epple, T. C. (2013). Evolving Pressure- Sensitive Tape Adhesives. Adhesives & Sealants Industry, 20(9), 18-19. Adams, J. T. (2013). In Pursuit of the Perfect Cover Tape. SMT: Surface Mount Technology, 28(4), 30-34.
One Finger Down CristianDohi, Lena Grosse, Nicklas Peele Consumer Behavior Brand-based Strategic Recommendations K2 Recommendations • Restructure sales: • Key Account Management with specialized services (Direct Sales). • Distributor consultant team • Remuneration scheme focused on repurchase and relationship building. • Build a dedicated sales force for K2. • Distribution: • Introduce incentive programs for distributors. • Co-brand with retailers or service providers (e.g. using and branding K2 adhesive for UPS packages for both B2B and B2C) • Form partnerships with construction firms, since this is a growing industry. • Expansion into other industries (e.g. medical industry with kinesio tape, modern heart disk drives) Cheapo Recommendations • Sales: • Offer only basic services • Dedicated sales force to inform distributors about new product line. • Distribution: • Introduce incentive programs for distributors. • Initiate dialogue with smaller distributors • Form partnerships with home improvement stores (e.g. Home Depot) • Marketing activities geared more towards mass marketing. New brand (subsidiary)