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ROHM AND HAASCase Solution Case Solution & Answer

ROHM AND HAAS Case Solution

The reason behind the success of Kathon 886 MW is mainly the increase in investment of the promotion of the product, which resulted in the smooth running of the New Product Development process. However, the company did not provide proper incentives to distributors and it is they who control the distribution of the product to the end users. This was a mistake on the company’s part. (Bhuiyan, 2011)

The free samples issued were a good idea but the customers did not even remember the attributes attached with that product. Therefore, the company should adopt a feedback strategy that would help them in help them understand their customer base. Moreover, from the breakeven point it can be seen that the company should sell at least 96000 products to cover up the cost of free samples.

The quantitative analysis of the given case reveal that by looking at the advantages of the product, the customers would pay more money willingly for it.

Exhibits

Exhibit 1

Sales Goals Calculations
Sales goal $200,000
Cost per box $145
Number of boxes required to reach sales goal 1379
Packets per box 144
Number of packets        198,621
Weeks in year 52
Number of weeks before a new packet is required 4
Number of packets per year per customer 13
Number of customers          15,279
Size of market 150,000
Percentage of market 10.19%

Exhibit 2

Comparative cost of treating a 10,000 gallon system with Biocide (for one cycle)
Name   Cost % Markup vs. Kathon 886
Dowicil 75 $269.64 278%
Grotan $151.20 112%
Kathon 886 $71.40

Exhibit 3

Savings Calculations
Metalworking fluid concentrate (per gallon) $5.68
Waste disposal (per gallon) $1.36
Kathon MWX (per packet) $2.00
Gallons of fluid treated per packet of Kathon MWX 50
Weeks per year 52
Typical machine shop size (machines) 22
Typical fluid reservoir Capacity Per Machine (gallons) 50
Typical lifespan of fluid (weeks) 4
Typical machine shop annual fluid usage w/o Kathon MWX (gallons) 14300
Typical machine shop annual fluid usage cost $100,672
Minimum extended lifespan of fluid w/ Kathon MWX (weeks) 2
Typical machine shop annual fluid usage w/ minimum extended lifespan using Kathon MWX (gallons, rounded up) 9900
Typical machine shop annual fluid cost w/ minimum extended lifespan using Kathon MWX $69,696
Minimum savings w/ Kathon MWX $30,976
Savings as a percentage of typical annual fluid cost w/ minimum extended lifespan using Kathon MWX 30.77%

Exhibit 4

Maximum extended lifespan of fluid w/ Kathon MWX (weeks) 5
Typical machine shop annual fluid usage w/ maximum extended lifespan using Kathon MWX (gallons, rounded up) 6600
Typical machine shop annual fluid cost w/ maximum extended lifespan using Kathon MWX $46,464.00
Maximum savings w/ Kathon MWX $54,208.00
Savings as a percentage of typical annual fluid cost w/ maximum extended lifespan using Kathon MWX 53.85%

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