Rohm and Haas

I. Situation Analysis

Rohm and Haas is having difficulty selling their Kathon MWX biocide product. After having great success with their Kathon 886 MW product used for large metalworking fluid reservoirs (greater than 1,000 gallons), Rohm and Haas has developed a potent biocide that can be used in smaller metalworking fluid systems. This was particularly attractive as the small capacity market was estimated to be at 150,000 plants worth $20 million.

The Kathon 886 MW product had high compatibility with metalworking fluids (70% of commercial fluids), was more effective than the competition (one gallon did the same job as ten to fifteen gallons of the competition), and cheaper to use ($71.40 for a 10,000 gallon system in one cycle compared to $151.20 and $269.64 for the competition). The product was not sold directly to plants though, but rather was sold to metalworking fluid formulators. The distributors then had a maintenance package that included the product with all the other products and services that encompassed the package. This package was sold under the formulators’ private brand names so the brand name could be rarely seen by the end user.

The Kathon MWX product had similar characteristics to the 886 MW product in the sense that a packet was more compatible, effective, and cheaper than comparative treatments from competitors. The differences came from its delivery system, as it had to be distributed in a packet hung from a hook in the tank and not just dropped in like the 886 MW. The other major difference was that the product was not being sold as part of a package from a distributor, as these comprehensive packages only made sense for the large tank plants, not the smaller tanks that the MWX product targeted. As such, the Kathon MWX had to be sold on its own as boxes of packets that had the brand name on the box, not a private label.

II. Problem Definition

The lack of familiarity with the brand being sold as a singular package, along...