Abstract
Since the conception of its new product Kathon MWX, Rohm and Haas has been failing to place it successfully in the market and achieving target sales. Being familiar to a marketing strategy appropriate for large industrial buyers, the company has tried to push its new product through this same marketing model, even though its target consumers were different, who have smaller-scale operations. Banking on the four P's of marketing as a starting point (product, price, place, and promotion), we have analysed their strengths and weaknesses in the Rohm and Haas case. Concluding that the product itself is the best in the market, the following observations and suggestions for improvement are mentioned in the areas of pricing, distribution channel (place), and promotional efforts.
Kathon MWX currently lacks a consistent pricing strategy. Not only has Rohm and Haas forfeited control of the price charged for Kathon MWX by distributors, but the price ranges from $2/packet to $6/packet depending upon the number of steps required to reach the end user. However, the sales revenue received by Rohm and Haas per packet of Kathon MWX ranges from $1-$1.25. With a manufacturing cost of approximately $0.50 cents per packet, the existing pricing system is ad-hoc and inefficient for the multiple middlemen, and possibly a major factor behind the failure of Kathon MWX in the market. There is a need for a clear pricing strategy for Kathon MWX.
