Rohm and Haas Analysis

MARKETING MANAGEMENT

CASE: ROHM AND HAAS

Executive Summary:

Rohm and Haas is a chemicals company. It is a leader in chemical technology. It has four business segments:

* Polymers, resins and monomers

* Plastics

* Agricultural chemicals

* Industrial chemicals

The company’s product lines consist of over 500 different products. The Industrial Chemicals segment consists of 3 product groups:

* Fluid process chemicals

* Petroleum chemicals

* Speciality chemicals

In the speciality chemical group, Kathon 886 MW and Kathon MWX are the two metalworking fluid biocides. Despite a superior product, Kathon MWX reached only 6% of its annual sales target.

1) What is the value of Kathon MWX for users?

* Kathon MWX extends the life of metal working fluid

* Can treat 25-75 gallons of metal working fluid for 2-4 weeks as compared to its competitor Tris Nitro Sump Saver (3 days)

* No monitoring/other maintainance needed

* Eliminates bad odor

* The packet of Kathoon MWX is safe to handle and dispose

* Effective against bacteria and fungi unlike other metalworking fluids in the market

* Inert and effectice over a wide range of pH

* Does not release formaldehyde and hence less toxic than its competitor Dowicil 75

* Compatible with most of the metal working fluids

* Minimizes machine downtime and hence aids easy maintainance

* Educated sales force and hence can advise well

Economic value:

Rohm and Haas' succesful product, Kathon 886, was considered very effective and efficient, but was usable only for capacity above 1000 gallons. Thus, the total market share of this product (combining ferrous and non-ferrous metals) was close to $8 million.

Compared to the large systems, the potential market for individual systems, which Kathon MWX is targeting, was $20 million. Kathon 886 MW had only 325 potential customers, while Kathon MWX was estimated to have close to 150000 of them. In the category of small...