Home » article examples » 56638059


Intended for the unique use of M. HUSSAIN Harvard Business School 9-582-103 Add some opuch. September twenty-four, 1985 Sealed Air Organization The president and ceo of Covered Air Firm, T.

J. Dermot Dunphy, explained the firm’s 25% average annual growth in net sales and net earnings by 1971 to 1980: You can actually history have been characterized by specialized accomplishment and market command. During the last ten years we constructed on each of our development of the first closed-cell, lightweight cushioning material, released the initial foam-in-place product packaging system, and engineered the first total solar heating system for swimming pools.

We want to follow the same management guidelines in the eighties. We intend to seek market leadership mainly because market leadership optimizes revenue, and create technological command because it is the only long-term assure of marketplace leadership. In July 81 Barrett Hauser, product manager of Sealed Air’s Atmosphere Cellular Products, was reflecting on Dunphy’s management beliefs as he deemed how Sealed Air should respond to some unexpected competition in the protective presentation market.

While product director, Hauser was responsible for the closed-cell, lightweight cushioning material that Dunphy had described. Sealed Air’s registered brand name just for this product was AirCap. you AirCap cushioning materials experienced always faced a variety of competitors in the safety packaging market. More recently, however , several little regional producers had developed around Closed Air’s production process us patents and started to market affordable imitations of AirCap in the usa. AirCap Extra padding and Its Rivals

AirCap shock absorption was a clear, laminated plastic sheet that contain air pockets of consistent size (see Exhibit 1). The characteristic that differentiated AirCap extra padding from all the other bubble products was their “barrier-coating: every AirCap bubble was covered on the inside with saran. This greatly increased air preservation, meaning significantly less compression from the material during shipment and, consequently, better protection. Barrier-coating and its customer benefits had been the central theme of Closed Air’s AirCap cushioning advertising effort pertaining to 10 years. Closed Air, AirCap, and Instapak are authorized trademarks of Closed Air Firm. Solar Pool area Blanket is a TM hallmark of the same company. Robert J. Dolan, associate professor, ready this case since the basis pertaining to class discussion rather than to demonstrate either successful or inadequate handling associated with an administrative scenario. Certain nonpublic data had been disguised. Copyright 1982 by the Leader and Fellows of Harvard College. To order clones or request permission to reproduce elements, call 1-800-545-7685 or compose Harvard Business School Submitting, Boston, MUM 02163.

Zero part of this kind of publication could possibly be reproduced, kept in a retrieval system, found in a chart, or sent in any type or simply by any means”electronic, mechanical, photocopying, recording, or otherwise”without the permission of Harvard Business School. you This file is authorized for use simply by Md. Saquib Hussain in marketing? nal trained by Suresh Ramanathan via October 2012 to March 2012. Pertaining to the unique use of Meters. HUSSAIN 582-103 Sealed Atmosphere Corporation Among 1971 and 1980 Closed Air and Astro Product packaging of Hawthorne, New Jersey, had been the only air bubble the labels material suppliers in the United States.

Covered Air licensed Astro to work with Sealed Air’s patented technology. Astro produced two types of bubbles: a barrier bubble similar to AirCap, 2 and an uncoated bubble. The sales were split regarding evenly between two. In 1980 Astro’s total U. S. sales were roughly $10. your five million, in comparison with $25. 35 million in U. S i9000. sales for AirCap padding. Sealed Air’s market education had made customers aware of the advantages of coated bubbles, consequently, uncoated bubbles had never achieved greater than a 15% dollar talk about of the U.

S. industry before 80. In July 1981 uncoated bubble functions were being set up in Ohio, Cal, and Ny. GAFCEL, which served the metropolitan New york city market, was your only competition yet to attain significant sales volume. Two GAFCEL salespeople”one full time, the other about 50 % time”had reached a $1,000,000 annual product sales rate. A number of AirCap’s marketers had used on the GAFCEL line. Hauser was preparing to recommend Sealed Air’s reaction to these to some degree unanticipated competitors.

The firm could create an uncoated bubble as cheaply since GAFCEL in a month without major capital investment, it may run on devices used for one other Sealed Surroundings product. In the event that Hauser would have been to recommend that the historic safe bet of barrier-coating offer an uncoated bubble, he would need to specify timing, the program for the brand new product, and any alterations in policies for AirCap cushioning and Sealed Air’s other goods. As Hauser thought about his options, this individual again flipped through the schooling manual just lately distributed to Sealed Air’s sales force: “How to Sell against Uncoated Pockets. 

The Protective The labels Market The three major employ segments of the protective presentation market had been: 1 . Placement, blocking, and bracing: These kinds of protective materials had to protected large, large, usually semirugged items in a container. Standard applications included shipment of motors and computer peripherals. 2 . Flexible wraps: These kinds of materials received less pressure per square foot. Applications included glasses, small replacement components, and light medical instruments. a few. Void fill up: These materials were put into prevent activity during shipping when an item and its defensive wrap (if any) did not fill their carton.

The positioning, stopping, and bracing market was unique due to heavier weights of items shipped. Flexible wrap and void fill up were sometimes hard to separate your lives because it was convenient to use precisely the same product for both features. The key variation was that loose fills (for instance, polystyrene beads) focused the emptiness fill market but presented no extra padding protection and, hence, would not qualify while flexible place. Until 70 most materials used for protecting packaging were produced mostly for various other purposes. Weighty, paper-based goods had completely outclassed the market. Closed Air was one of the first Astro’s barrier bubble and the AirCap bubble differed in both equally manufacturing procedure and covering material. Figura used synthetic rather than saran. The basic thought of reinforcing the polyethylene pockets to improve surroundings retention was, however , precisely the same. 2 This document is definitely authorized for proper use only by simply Md. Saquib Hussain in marketing? nal taught by simply Suresh Ramanathan from October 2012 to October 2012. For the exclusive make use of M. HUSSAIN Sealed Surroundings Corporation 582-103 companies to approach the marketplace with a buyer orientation, i. e., it began product development with an assessment of packagers’ needs.

Since then a variety of products specifically designed for defensive packaging got appeared. Covered Air dished up these markets with two products: 1 ) Instapak foam-in-place systems (1980 worldwide sales of $38. 8 million) could cater to any software, though all their most advantageous make use of was intended for heavy products. In this procedure two liquid chemicals were pumped into a shipping box. The chemicals swiftly expanded to create a foam pillow around the product. Instapak’s comparative advantage led to a majority of applications in positioning, blocking, and bracing.. AirCap bubbles (1980 worldwide product sales of $34. 3 million) primarily served the adaptable wrap and void fill up markets. In addition to covered and uncoated polyethylene atmosphere bubbles, there were two key competitors during these markets: paper based products (cellulose wadding, single-face corrugated, and indented kraft), and foams (polyurethane, thermoplastic-polymer, and polyethylene). An excerpt from a great AirCap marketing brochure in Exhibit 2 shows just how Sealed Air positioned AirCap as a budget-friendly substitute for these kinds of competitive products and loose floods.

The products / services brochure first talked about the cost personal savings from AirCap cushioning, after that presented outcomes of “fatigue and “original thickness retention tests to show AirCap’s protecting superiority. Show 3 even comes close products competitive with AirCap cushioning and Exhibit 4 gives their very own U. H. Iist prices, which signify relative costs for any purchase size by an end user. Quantity discounts were presented on almost all materials. Buying Influences The proliferation of packaging companies the lack of conveniently demonstrable widespread superiority caused confusion between end users.

For instance , products just like pewter plastic mugs today were shipped around the Us in AirCap cushioning, Figura coated pockets, or even old newspapers. Users were a varied great deal. Some bought on a medical price/performance basis. They realized “cushioning curves such as individuals in Display 5. Sealed Air can provide individually measured shock absorption curves for competitive goods as well as its own. Regardless, various firms performed their own screening. At the opposite end of the range were firms with “a purchasing-department mindset,  as some packaging materials suppliers put it.

Price per square foot was their very own first account, delivery their second. Together Sealed Air flow executive commented, “To they, cushioning curves are like accounting numbers. They think you can make them say anything you want.  There are no methodically collected data on the buying process and also the extent that price centered performance in the purchase decision. Based upon his knowledge as a section sales administrator and now product manager, Hauser guessed which a packaging engineer influenced about 40% with the material order decisions. 3 This record is authorized for use only by Maryland.

Saquib Hussain in advertising? nal educated by Suresh Ramanathan by October 2012 to October 2012. Intended for the unique use of Meters. HUSSAIN 582-103 Sealed Atmosphere Corporation The U. H. Market In 1980, buck sales simply by segment inside the U. S. protective packaging market were: ¢ ¢ ¢ Positioning, blocking, and bracing: $585 million Versatile wrap: $126 million Emptiness fill: $15. 6 mil Exhibit 6th breaks down total sales for the flexible wrap market by item type pertaining to 1975, 78, and 80. AirCap padding annual product sales in the United States seeing that 1972 were: Year 72 1973 mid 1970s 1975 1976 Gross Sales (in millions) $7. 10. zero 13. zero 12. almost 8 14. six Year 1977 1978 1979 1980 Revenues (in millions) $16. 4 18. some 21. 2 25. a few Despite the very high cost coated pockets relative to the uncoated merchandise, Sealed Surroundings had held most of the U. S. atmosphere bubble marketplace. Key elements were Covered Air’s patent protection and licensing of only one rival, extensive industry education, plus the packaging mindset in the United States. Packaging engineers appreciated a status in U. S i9000. organizations not accorded all of them elsewhere. The labels supplies had been viewed as a productive, cost-saving resource.

In comparison, recent research by Closed Air mentioned that many Euro firms looked at packaging supplies as “expendable commodities.  The Western european Market Closed Air experienced manufacturing operations in England and France and a revenue organization in Germany. a few It was the only company selling a covered product in these countries. Revenue figures pertaining to 1980 were: Country England France Philippines Total Bubble Sales $3, 649, 000 4, 480, 000 six, 688, 500 AirCap Sales $2, 488, 500 592, 200 404, 600 three or more The company also a new manufacturing facility in Canada and a sales business in The japanese.

Sealed Air flow licensees operated manufacturing services in Australia, South america, South Africa, and Spain. four This doc is authorized for use just by Maryland. Saquib Hussain in marketing? nal trained by Suresh Ramanathan from October 2012 to March 2012. For the special use of M. HUSSAIN Covered Air Corporation 582-103 Table A Varying Grades of AirCap Extra padding Bubble Height SB: SOUTH CAROLINA: ST: SD: 1 almost eight / in. high, intended for surface safety when cushioning requirements had been minimal. 3/16 in. high, used mostly for wrap small , complicated items, possibly for larger items if not very sensitive. 5 16 / in. igh, employed in same kinds of applications since SC grade, except with slightly better cushioning requirements. Also used as a emptiness fill. as well as in. excessive, used for significant, heavy, or fragile things or as a void load. 1 2 Plastic Film Thicknesses Light duty (110): each layer of film was 1 million (1/1, 500 of an inch) thick, utilized for light loads. Regular duty (120): one particular layer of 1 mil and one coating of 2 mils, for tons up to 60 lbs. per sq . feet. Heavy duty (240): one part of 2 mils and one among 4 mils, for lots up to 100 lbs. per sq . feet. Super work (480): a single layer of 4 mils and certainly one of 8, intended for loads more than 100 lbs. er sq ft. Great britain. Sealed Air flow had designed the protecting packaging marketplace here and had good circulation. Later on, Sansetsu, a Japan firm, started marketing a high-quality uncoated product made in Germany. Prices intended for the uncoated bubble had been 50% less than the cost of comparably sized AirCap cushioning. Sansetsu and other uncoated bubble companies had damaged away in Sealed Air’s one-time 90% market share. The most pessimistic Closed Air vendors estimated that the firm could lose 50 percent of it is current market talk about to uncoated bubbles within three years. Italy.

Here, Sealed Air possessed an uncoated bubble producer SIBCO, with sales of $750, 500 in 1980. In 1972 SIBCO was the only marketer of uncoated pockets in Portugal. Two key competitors, one particular with excellent production facilities, had joined the market. Uncoated bubbles were priced regarding 40% less than AirCap, and price was your key ordering determinant. The major French distributor of AirCap cushioning a new 50-50 blend coated and uncoated revenue in 1978. In 1980 the combo had changed to 70-30 (uncoated over coated), with 90% of new bubble applications staying uncoated. Indonesia.

AirCap shock absorption was a later entrant (1973) to the German market and never held commanding share. Additionally, from 78 to 80, it had dropped share at a rate of 20% to 30% per year. Sansetsu had an useful manufacturing facility in Germany and sold around $6 million of uncoated product in 1980. (The price pertaining to uncoated was about 35% less than for covered. ) AirCap Cushioning Levels and Product sales AirCap shock absorption grades differed in bubble height and thickness from the plastic motion pictures. Bubble heights were selected by a notification code, and the plastic videos came in four thicknesses (see Table A).

Sealed Atmosphere produced 8-10 different height/thickness combinations (see Table B). Some of the noted end uses for each grade are demonstrated in Exhibit 7. five This file is certified for use only by Md. Saquib Hussain in promoting? nal taught by Suresh Ramanathan coming from October 2012 to Oct 2012. Intended for the unique use of M. HUSSAIN 582-103 Sealed Atmosphere Corporation Stand B Ten Different Height/Thicknesses by Closed Air Density Height (inches) SB-1 almost eight 110 Times 120 Back button X X 240 By X By 480 as well as SC-3/16 ST-5 16 SD-1 2 as well as / By Table C AirCap Product sales by Grade Sales in 1, 1000 Square Feet Level 1/8 in.

SB-110 3/16 in. SC-120 SC-240 5/16 in. ST-120 ST-240 1/2 in. SD-120 SD-240 SD-480 Total product sales July”December lates 1970s 59, 128 76, 349 5, 036 31, 912 4, 369 44, 252 25, 202 3, 138 249, 386 January”June1980 48, 513 seventy eight, 014 4, 426 42, 234 a few, 914 43, 624 21, 799 you, 358 246, 882 Take note: In addition , since SB-110 could hardly compete in price against foams for many surface area protection applications, Sealed Air introduced an A-100 class in January 1980. The A-100 bubble was 3/32 in. high”the shortest layered bubble Covered Air will certainly make with offered technology. January to June 1980 product sales of A-100 were seventeen, 802, 500 sq . feet.

Sales by simply grade the past six months of 1979 plus the first 6 months of 1980 are demonstrated in Stand C. Prices All AirCap cushioning was sold through distributors. Prices reflected Sealed Air’s costs and the prices of competitive products. Variable costs and costs to the supplier are demonstrated in Stand D. Covered Air’s suggested resale price list can be shown in Exhibit 8. Largely for its selective division policy, marketers generally implemented this list. The price routine entailed amount discounts for owners. Thus, supplier margins varied with the scale the customer’s individual purchase. Quantity cost was determined by the total total area of a sole order, merging all levels, ordered for shipment at one time to a solitary destination. ) In some significant metropolitan areas, up to 50% of AirCap organization was truckload/railcar orders by simply end users. In this event Sealed Air delivered the material from its plant directly to the end customer, the supplier received a 10% margin and dealt with user credit rating and technological service. In certain markets the percentage of immediate shipments was as low as 10%. 6 This kind of document can be authorized to be used only by simply Md. Saquib Hussain in marketing? ing taught by Suresh Ramanathan from Oct 2012 to October 2012. For the exclusive make use of M. HUSSAIN Sealed Atmosphere Corporation 582-103 Selling Effort Sealed Air’s U. S i9000. operation contains 7 local manufacturing procedures, 62 sales agents (each selling AirCap extra padding, Instapak, and other Sealed Atmosphere products), and 370 distributors. To control the shipping expense of its heavy product, Covered Air acquired regional making operations in three asian states, Ohio, Illinois, Arizona, and Cal. The regional presence, however , had confirmed to be an effective product sales promotion gadget as well.

Stand D AirCap Variable Costs and Supplier Prices (in dollars every 1, 000 sq . ft. ) (1) Total Adjustable Cost $13. 78 18. 01 twenty. 56 thirty-two. 47 35. 65 38. 12 thirty eight. 31 44. 45 70. 81 (2) Price to Distributor pertaining to Truckload Deliverya $20. sixty 30. twenty-five 43. 55 56. 35 51. 45 65. thirty five 65. thirty-five 78. 60 140. 80 (2) , (1) Sealed Air Dollar Margin $6. 82 18. 24 22. 94 twenty-three. 83 20. 75 28. 23 30. 04 34. 15 75. 09 Grade A-100 (3/32 in. ) SB-110 (1/8 in. ) SC-120 (3/16 in. ) SC-240 (3/16 in. ) ST-120 (5/16 in. ) ST-240 (5/16 in. ) SD-120 (1/2 in. ) SD-240 (1/2 in. ) SD-480 (1/2 in. ) Manufacturing $12. 46 18. 02 seventeen. 92 twenty nine. 83 25. 36 32. 83 twenty eight. 38 thirty-six. 52 sixty two. 88

Freight $1. thirty-two 1 . 99 2 . 64 2 . sixty four 5. 29 5. up to 29 7. 93 7. 93 7. 93 a Below truckload deliveries were costed 15% to 20% bigger. Consequently, vendors almost always bought in truckload quantities. We were holding allowed to combine grades within an order. With respect to the grade ordered, a truckload could consist of 70, 500 sq . ft. (all SD-480) to four twenty, 000 sq ft. (all A-100). Before Instapak was acquired in 1976, twenty eight salespeople committed 90% of time to AirCap cushioning goods. In 1981 the 62-person force was expected to designate time the following: 60% to Instapak devices, 35% to AirCap extra padding, and five per cent to other Sealed Air products. Exhibit on the lookout for shows Sealed Air revenue by products and other economical data. ) Part of Sealed Air’s market share leadership viewpoint was a consultative selling way. Salespeople put in about half their time making cost research at end-user locations. By making use of Sealed Air’s packaging labs, salespeople attempted to show just how their products could save on materials and labor cost and reduce damage eventually user’s particular situation. Distributors’ salespeople required orders about AirCap extra padding but performed little to demonstrate AirCap work with and program to customers.

If a distributor’s salesperson identified a potential AirCap account, he / she would notify the Covered Air salesperson and a joint contact would be set up. In this way the potential account learned all about the product and ordering procedures simultaneously. Suppliers sometimes lamented to Covered Air regarding the level of AirCap selling efforts. Since distributor’s margins in AirCap extra padding were generally higher than the 10% to 12% intended for Instapak sales, distributors are not happy with Sealed Air’s increased allocation of salesperson time to Instapak.

A few distributors stated they would be content in case the salesperson within their area actually allocated 35% to AirCap, some claimed the actual AirCap selling efforts amounted to 20%. Instapak’s sales expansion had been remarkable, but some Covered Air business owners felt this had price them a lot of distributor pleasure. Both vendors and end users regarded Covered Air’s sales agents as the most effective trained and a lot knowledgeable in the packaging industry. Sales force salaries were endowed. They were composed of a base income plus commissions of 2% on net AirCap sales and 1% on net sales of all other items, including Instapak. As an extra incentive Covered Air provided salespeople $75 for each Instapak dispenser located. It took backside $75 for every single one taken off. ) In a typical week a salesperson referred to as on twenty end users and checked in with two or three vendors. 7 This kind of document is definitely authorized for use only by Md. Saquib Hussain in marketing? nal taught simply by Suresh Ramanathan from Oct 2012 to October 2012. For the exclusive utilization of M. HUSSAIN 582-103 Covered Air Organization U. H. Distributors Throughout the 1970s Covered Air used heavily in developing a chosen distributor network. The company had 370 distributors by 1980.

Covered Air regarded as 135 of such their “first-line distributors because they along handled over 80% of its business. The 20 largest AirCap distributors managed about 35% of the business. Larger vendors typically taken both Instapak foam-in-place and AirCap padding. The largest supplier of Covered Air products acquired 1980 Sealed Air product sales of approximately $2 million, just about half of that have been AirCap. Marketers traditionally tried to be full-line houses”capable of meeting every single customer’s total packaging needs”so they taken a broad product selection.

A review of Closed Air’s firstline distributors confirmed that 83% carried loose fills, 65% carried polyethylene foam, and 29% taken Du Pont’s polypropylene froth. Although the majority of carried competitive products, marketers had displayed loyalty to Sealed Atmosphere and AirCap cushioning. Covered Air, subsequently, had stored to its selective division policy. Competitive Uncoated Bubble Cushioning Closed Air regarded both types of pockets made by Astro as poor products. GAFCEL, the new regional producer, manufactured a “decent product in Hauser’s appraisal, he sensed that the success of the claims to date came largely at Astro’s charge.

The New You are able to metropolitan market was suitable for the new developer. It was not really customer- or distributor-loyal, and price was a key adjustable. Sealed Air’s estimate of GAFCEL sales rates was $750, 1000 per year pertaining to the 1/2-in. -high uncoated bubble and $250, 500 per year intended for the 3/16-in. bubble. Both equally had two layers of film a couple of mils every. GAFCEL’s distributor prices pertaining to truckload shipments and suggested resale prices to end users for the metropolitan New york city market happen to be shown in Table Elizabeth. (Astro’s uncoated bubble rates are in Exhibit 4. ) Sealed Air had not yet substantially tested the GAFCEL uncoated bubble.

Although it was greater than Astro’s uncoated, its performance would not end up being dramatically not the same as that seen in previous uncoated testing (see Exhibit 2). In terms of extra padding curves, the l/2 in. GAFCEL bubble was just like Sealed Air’s ST-120 or SD-120 to get very lumination loads, not really greater than 0. 15 lbs .. /sq. in. pressure. By greater lots, however , the acceleration shape would increase rapidly, moving above however, SB-110 by simply pressures of 0. 25 lbs. /sq. in. (see Exhibit 5). 8 This kind of document is authorized for proper use only by simply Md. Saquib Hussain in marketing? nal taught by simply Suresh Ramanathan from August 2012 to October 2012.

For the exclusive make use of M. HUSSAIN Sealed Surroundings Corporation 582-103 Table E GAFCEL’s Distributor Prices per 1, 000 Sq . Feet. SO-22 (3/16 in. ) LO-22 (1/2 in. ) $36. 03 Distributor truckload Suggested resale by buy size: 1, 000 sq ft 20, 000 sq ft 45, 000 sq . ft 100, 000 sq ft Truckload $31. 63 $56. 54 47. doze 42. 84 39. forty 34. seventy nine $75. twenty-four 62. 75 57. ’07 44. 68 39. 63 Sealed Surroundings Decisions Covered Air got conducted a good deal of research about manufacturing uncoated bubble items. It understood the best production process would be similar to that currently used for its Solar Pool Blankets¢.

Thus, the firm could begin produce of an uncoated product quickly in its Nj-new jersey plant. Likely distributor respond to a Closed Air uncoated product was difficult to forecast. Some marketers had asked it, yet others on a regular basis complained that there were already too many coated grades. Preliminary estimates with the variable costs for generating Sealed Air flow uncoated bubbles were $19 per you, 000 sq . ft. to get 3/16 in. height, $20 per you, 000 sq ft. to get 5/16 in., and $21 per 1, 000 sq ft. for 1/2 in. Freight price depended on bubble height and distance sent.

Although GAFCEL’s production process was very different, its production costs were believed to be identical. Hauser at this point had to determine whether to recommend that Sealed Air your uncoated bubble market (with an about-face on the previous special emphasis on lined bubbles), or whether to suggest a few other reaction to its new competition. 9 This kind of document is usually authorized for use only by simply Md. Saquib Hussain in marketing? nal taught by simply Suresh Ramanathan from August 2012 to October 2012. For the exclusive use of M. HUSSAIN 582-103 Covered Air Firm Exhibit 1 AirCap Products and Uses

Extra padding AirCap air flow bubble cushioning protects items against vibration and shock during handling and delivery by virtually floating these people on a safety net of atmosphere. This material gives consistent functionality because each of our unique barrier-coating guarantees atmosphere retention. AirCap withstands repeated impact since it will not tiredness or require a compression arranged. Cushioning applications include a selection from light-weight retail items to delicate electricity supplies weighing several hundred pounds. Choose the level that best suits your shock absorption application! Protecting Wrap/Interleaving

AirCap is an excellent “protective wrap material and well suited for “interleaving between similarly molded items. It is clean, nonabrasive, easy to use and supplies superior surface area protection. Lay down your item on AirCap sheeting, collapse it over and your product is completely protected! Typical protective wrap/interleaving applications include china, glasses, printed routine boards, and spare parts. Emptiness Fill Each time a void within a package is not completely filled, the cushioned item may migrate within the shipping container. This movement is known as a major source of damage in transit.

Since large regular-duty AirCap bubbles do not reduce, they load voids efficiently and get rid of product activity. Simply products AirCap sheeting into the ticket, (left) or perhaps use an inexpensive rolled “log.  It can easy, clean, lightweight, and cost efficient! twelve This document is official for use just by Md. Saquib Hussain in promoting? nal trained by Suresh Ramanathan coming from October 2012 to Oct 2012. 582-103 -11- Exhibit 2 Closed Air Presents AirCap as Cost-Effective Replacement Typical Cost-Savings Comparisons 70 Cellulose Wadding Rubberized Type of hair IV Resists Fatigue 50 40 zero Uncoated Pockets Urethane Polyurethane foam Polypropolene Foam AirCap % Increase in Distress 20 In the transportation environment packages are subjected to many jolts, humps, and shock absorbers that can potentially cause damage. To function properly a cushioning material need to retain it is ability to guard over a series of repeated impacts. The loss of protective ability during repeated effects is known as ‘material tiredness. ‘ This graph (left) indicates the increased impact an average procut (0. twenty-five psi) will receive during a 10 drop series from twenty four inches. Test results display barrier-coated AirCap outperforms almost all materials analyzed. 0 zero 1 Number of Impacts a couple of 3 some 5 six 7 almost 8 9 twelve BARRIER-COATING Every person AirCap bubble is barriercoated to retain mid-air. AirCap Or Corrugated Inserts A releasing firm discovered that it required an excessive amount of flowable to prevent item migration. A new AirCap bundle (left) utilizing a simple criss-cross technique resulted in reduced materials, shipping, labor and ticket costs. Item Carton Internal packaging Labor Freight Total Cost Savings w/ AirCap QUICK THICKNESS LOSS AirCap retains its first thickness upon the immediate application of a load (See Below).

Loose Fill Bundle $. 73. 75. 40 3. 02 $4. ninety two AirCap Versus Loose Floods Material Examined A company using corrugated inserts, cellulose wadding and polyethylene carriers eliminated the requirement to inventory a large number of packaging components (right) and reduced labor 84% by simply switching to AirCap (left). Total Density Loss Keeps Original Thickness Item Fichier Inner Product packaging Labor Freight Total Financial savings w/ AirCap Corrugated Bundle $. 55. 80. 83 2 . 62 $4. 80 AirCap Deal $. 55 1 . 05. 13 2 . 40 $4. 13 bucks. 65 AirCap Package money. 47. fifty four. 25 2 . 72 $3. 98 money. 94

AirCap SD 240 14% Thermoplastic-polymer Foam 30% Polyethylene Polyurethane foam 40% Cellulose Wadding 38% Rubberized Hair IV 51% Uncoated Pockets 64% (Large) Urethane Froth (1. 25 53% 5. * pct) Embossed 54% * 5. Polyethylene (Hex) *30 working day evaluation certainly not conducted due to excessive initial thickness reduction. Initial Density Loss After 04 pound-force per square inch (psi) Load 7% 19% 16% 26% 24% 14% Progressive Thickness Reduction After thirty days 7% 11% 24% 12% 27% 50% When a fill is placed on the cushioning materials two things arise that may lead to a degeneration in its performance. First, is the immediate compression of the materials.

Second, is a additional, even more gradual decrease of thickness known as ‘creep. ‘ Generally abnormal thickness decrease of a material results in improved material usage in shock absorption and dunnage applications. Creep may contribute to product destruction as loosing thickness makes a void within a package, permitting the product to maneuver, shift, or migrate. This chart (left) demonstrates just how barrier-coated AirCap retains it is original width better than all materials tested and provides merchandise protection throughout the entire packaging, shipping, handling, and storage area cycle.

GRADUAL THICKNESS LOSS (CREEP) AirCap’s unique barrier-coating retains the air more effectively than uncoated pockets, eliminating slip. AirCap Versus Thin-Grade Foams AirCap Vs . Cellulose Wadding A metering firm uncovered it necessary only 1 / 2 as much AirCap to achieve the same performance that cellulose wadding provided (right). In addition to lowering material costs, AirCap (left) is clean, lint free of charge, nonabrasive, and lightweight. Item AirCap Package An electric service centre employing the use of a thin-grade foam (right) needed many levels of wrap to protect against shock and vibration.

Large AirCap bubbles (left) provided excellent performance and lower presentation costs. This kind of document is definitely authorized for proper use only by simply Md. Saquib Hussain in marketing? nal taught simply by Suresh Ramanathan from October 2012 to October 2012. Carton Internal Packaging Labor Freight Total Cost Savings w/ AirCap Cellulose Wadding Bundle $. 40. 22. twenty-five 1 . thirty five $2. 12 $. twenty two. 12. ’08 1 . 20 $1. 62 $. 55 CONVENTIONAL CELLULOSE MATERIAL UNCOATED BUBBLES Item Foam Deal For the exclusive utilization of M. HUSSAIN Carton Internal Packaging Labor Freight Total Cost Savings w/ AirCap bucks. 46 1 . 33. sixty six 4. 2009 $6. 4 AirCap Deal $. 32. 87. 33 3. 94 $5. 52 $1. 02 For the exclusive usage of M. HUSSAIN 582-103 Sealed Air Organization Exhibit several 1 . Competitive Product Information Cellulose wadding (a paper based product which tries to capture air among piles of sheeting) ¢ Major suppliers: Jiffy Presentation, Hillside, D. J. CelluProducts Co., Patterson, N. C. ¢ Sizes available: Width of zero. 17 in., 0. 25 in., zero. 37 in., 0. 60 in. ¢ Advantages/disadvantages: Cheap than AirCap in thin grades, will not likely mark item wrapped, heavy than AirCap (3″4 Irritable bowel syndrome. per cu. ft. or less than one particular lb. or perhaps AirCap) meaning higher shipping and delivery cost, extreme compression underneath heavy a lot (see evaluation results, Display 2). Corrugated products (sheets of webbed cardboard, frequently cut and perforated to specific sizes) ¢ Key suppliers: About 800 companies manufacturing in 47 claims, including larger paper businesses. ¢ Advantages/disadvantages: Single face (cardboard with ribs on one side) appreciably cheaper than AirCap in square-foot basis, labor expense of using corrugated usually extremely high, poor cushioning. Polyethylene froth (thin, smooth, rigid sheets of low-density foam) ¢ Major suppliers: Sentinel Foam Products, Hyannis, Mass.

CelluProducts Co., Patterson, N. C. Jiffy Packaging, Hillside, In. J. ¢ Sizes offered: 48 or 68 in. wide comes of thickness 1/16, 3/32, 3/16, 1/4 in. ¢ Advantages/disadvantages: Considerably cheaper than AirCap in thin grades on square-foot basis, will not mark item wrapped, strict product means hard to work with, tendency to tear, padding inferior to AirCap, more pricey than AirCap in thicker grades. Thermoplastic-polymer foam (thin, coarse, rigid sheets of low-density foam) ¢ Major supplier: I Pont Microfoam ¢ Sizes available: Regular 72 in. wide rolls of thickness 1/16, 3/32, 3/16, 0.25 in. Advantages/disadvantages: Basically the just like for polyethylene foam. Loose fills (expanded polystyrene beans, peanuts, and so forth ) ¢ Major suppliers: Many tiny firms ¢ Advantages/disadvantages: fifty percent cheaper than AirCap about cubic foot basis, untidy, poor shock absorption. Uncoated bubbles (sheets of small air flow bubbles created from polyethylene film) ¢ Main producer: Satellite, Hawthorne, In. J. (Sealed Air licensee) ¢ Sizes available: forty eight in. wide roll regular, bubble heights 3/16, .25, 1/2 in. Bubbles as well varied in the thickness of the films used. Generally, thicknesses were one particular, 2, a few, or four mils with increasing film thickness supplying greater strength. Advantages/disadvantages: Cheaper than comparable elevation coated bubble, excessive air loss over time (about 65% height loss under 50 Ibs. per sq ft. pressure over 30 days vs . 15% for AirCap). Competitive lined bubble (essentially the same as uncoated bubble apart from nylon film coating added) ¢ Major supplier: Astro, Hawthorne, N. J. (Sealed Air licensee) ¢ Sizes available: forty-eight in. wide roll common, bubble altitudes 1/8, 3/16, 1/4, 0.5, 1 in. ¢ Advantages/disadvantages: Under heavy loading, nylon barrier holds up better than Covered Air’s saran barrier, low quality control (bubble heights generally 13% less than specified).. three or more. 4. your five. 6. six. 12 This document is usually authorized for proper use only by simply Md. Saquib Hussain in marketing? nal taught by simply Suresh Ramanathan from October 2012 to October 2012. For the exclusive use of M. HUSSAIN Sealed Atmosphere Corporation 582-103 Exhibit four Suggested User Prices (in dollars) intended for Major Competitive Products 1 ) Paper-Based Cellulose Wadding (Jiffy Packaging) Width (in. ) 0. seventeen 0. 25 0. thirty seven 0. 50 2 . Foams Thickness (in. ) 1 16 Price $27. 70 37. forty 50. 70 65. 00 Single-Face Corrugated $22. 75 Jiffy Product packaging (polyethylene) 20 dollars. 30 25. 90 34. 15 53. 35 em Sentinel Items (polyethylene) $18. 20 twenty four. 00 32. 70 forty-nine. 40 em

Du Pont Microfoam (polypropylene) $17. twenty 25. 18 34. 90 53. eighty six 109. 72 / / 1/8 3/16 3/8 3 32 a few. Competitive Bubbles (Astro) Coated Nylon Bubble Height (in. ) one particular 8 several 16 Uncoated”Polyethylene a Film Thickness (mils) you and you 1 and 2 1 and two 1 and 2 two and 5 1 and 2 two and 5 Price 35 dollars. 25 49. 50 57. 00 71. 75 87. 75 80. 00 110. 00 Bubble Height (in. ) several 16 Film Thicknessa (mils) 2 and 3 two and a few 2 and 4 Price $47. 00 54. 55 65. seventy five / as well as 1/4 1/2 1/2 one particular 1 / / 0.5 1 4 Note: Prices are every 1, 000 sq . foot. based on a 50, 500 sq . foot. order. a. Each bubble is made of two layers of film. Thicknesses shown will be for individual levels in mils.

Thicker film produces a better product. 13 This record is approved for use just by Maryland. Saquib Hussain in marketing? nal taught by Suresh Ramanathan by October 2012 to August 2012. To get the exclusive use of M. HUSSAIN 582-103 Sealed Atmosphere Corporation Show 5 Relative Cushioning Overall performance by Grade Engineered To supply Superior Cushioning The test data on the chart below was created by the Lansmont Corporation, an independent testing clinical. The test technique used closely simulates real shipping circumstances, and uses the use of an enclosed test prevent and distress machine.

Five bottom drops were performed from twenty four inches each and every static stress. The last 4 drops were averaged to realize data factors used to develop each padding effectiveness shape. This info illustrates AirCap’s superior overall performance over a broad variety of loadings, and might be used pertaining to comparison and specify the very best AirCap quality and width for your extra padding requirements. (SD-240 curves extracted from data offered in Army Handbook 304-A). 300 SB-110 SC-120 two hundred fifity SC-120 (2 layers) Optimum Acceleration (G’s) 200 SCT-120 150 SD-120 100 ST-120 (2 layers) SD-120 (2 layers) SD-120 (3 layers) SD-240 (4 layers) 40 SD-240 (6 layers). 05. 1 . 15. 2 . twenty-five. 3. 35. 4 Static Stress (psi) Source: AirCap brochure. Note: To be browse: For a product exerting zero. 25 Ibs. per sq in. of pressure around the packaging materials while at relax, the peak speeding (a measure of shock to the product) when ever dropped coming from 2 feet. is 118 g. if SD-120 is used, 260 g. if SB-110 is used. 16 This file is official for use just by Md. Saquib Hussain in promoting? nal taught by Suresh Ramanathan from October 2012 to March 2012. Pertaining to the special use of Meters. HUSSAIN Covered Air Organization 582-103 Exhibit 6 U. S.

Market”Flexible Wraps simply by Product Type (in millions of manufacturers’ dollars) 1975 1978 23 twenty-five 1 49 11 5 6 twenty-two 22 93 1980 twenty three 27 you 51 doze 7 25 44 31 126 Paper-based Cellulose wadding Single-face corrugated Indented energi Foamsa Polyurethane material Polypropylene Polyethylene Polyethylene air bubbles Covered and uncoated (combined) Total Source: Firm records. w 20 twenty 1 41 10 four 1 15 15 71 a. Product sales figures banish nonpackaging uses, such as construction and home furniture industries. w. Figures are for adaptable wrap industry only and are therefore lower than AirCap’s and Astro’s total U. T. sales. Demonstrate 7 Class SB-110

AirCap Applications by Grade Package deal Contents Furnace thermostats Shorthand machines Follón shells Reinforced glass bedding Clocks Solid wood picture support frames Light accessories Overhead projector lenses Computer system components Telephone bell ringtones Amplifiers Saucepans Two-way radios Exit sensors Mixers Fryers Carbonless daily news rolls Oven burners Pharmaceutical bottles Candleholders Recorders Carburetor Lamps Gallon jugs Computer terminals Imprinted circuit boards Foil wallpapers Blood congélation timers Leaded glass windows Personalized motorcycle seating Motor controls Shredded daily news Packaging Materials Displaced (if known) 16-in. Corrugated / polypropylene polyurethane foam SC-120 SC-240 ST-120 Disposed paper Corrugated Corrugated Corrugated / polyethylene foam Corrugated Urethane polyurethane foam pads three or more 32-in. ST-240 SD-120 Polypropylene foam SD-240 Corrugated Polyurethane foam pads and corrugated Corrugated Astro uncoated bubble LP-24 SD-480 12-15 This document is approved for use only by Md. Saquib Hussain in marketing? nal educated by Suresh Ramanathan by October 2012 to October 2012. Pertaining to the unique use of Meters. HUSSAIN 582-103 Sealed Surroundings Corporation

Demonstrate 8 Suggested U. H. Resale Value List, Powerful March 80 Sq . Ft. per Purchase per Single Destination one particular, 000 or maybe more 5, 1000   10, 000   30, 000   50, 000   Truckload/railcar 1, 000 or more 5, 1000   10, 000   30, 000   50, 500   Truckload/railcar 1, 000 or even more 5, 1000   10, 500   30, 000   50, 500   Truckload/railcar 1, 000 or more 5, 500   10, 1000   30, 1000   50, 500   Truckload/railcar one particular, 000 or more 5, 1000   10, 1000   30, 500   50, 1000   Truckload/railcar Same price every 1, 1000 sq . big t. as SD-120 1, 000 or more your five, 000   10, 000   30, 000   55, 000   Truckload/railcar 1, 000 or more a few, 000   10, 000   35, 000   50, 000   Truckload/railcar 1, 1000 or more your five, 000   twelve, 000   30, 000   50, 000   Truckload/railcar $107. eighty five 97. 70 87. fifty-five 81. forty five 79. thirty five 72. 45 130. 75 118. 35 105. 95 98. fifty five 95. 75 87. 25 232. 75 210. 55 188. thirty five 175. fifty-five 171. twenty-five $155. sixty Price every 1, 000 Sq . Foot. $34. 31 30. eighty-five 27. forty five 25. 70 24. seventy five 22. eighty 50. 00 45. forty 40. 90 38. 15 37. 05 33. 60 71. zero 64. 55 57. forty five 53. 75 52. 60 47. sixty five 93. 45 84. 40 74. 95 70. 20 68. 70 62. 25 85. 30 77. 10 68. 40 64. 25 62. 75 $57. 25 Item (thickness in inches) A-100 (3/32) SB-110 (1/8) SC-120 (3/16) SC-240 (3/16 ) ST-120 (5/16) ST-240 (5/16) SD-120 (1/2) SD-240 (1/2) SD-480 (1/2) of sixteen This record is certified for use simply by Md. Saquib Hussain in promoting? nal taught by Suresh Ramanathan by October 2012 to Oct 2012. To get the unique use of Meters. HUSSAIN Sealed Air Organization 582-103

Show 9 Picked Financial Info ($ thousands) 1976 1977 $21, 422 15, 489 3, 595 2, 682 $43, one eighty eight 35, 765 $24, 270 12, 093 (816) six, 009 1978 $25, 028 21, 133 3, 453 4, 644 $54, 258 43, 410 $31, 111 14, 527 (738) 7, 882 lates 1970s $29, 996 29, 056 3, 432 7, 951 $70, 435 54, 325 $43, 199 16, 855 (278) 15, 103 80 $34, 330 38, 802 3, 688 11, 777 $88, 597 67, 344 $54, 125 21, 325 (119) 12, 868 Net sales by class of product Atmosphere cellular product packaging Foam-in-place presentation Other product packaging Recreational and energy push.

Total around the world United States Costs and bills Cost of revenue Marketing, operations, development Various other income (expense) Earnings prior to income tax $18, 872 three or more, 049 4, 553 $26, 474 ” $16, 451 6, 696 32 several, 359 Resource: Sealed Atmosphere Annual Studies 1979, 80. 17 This document is authorized for proper use only simply by Md. Saquib Hussain in marketing? nal taught by Suresh Ramanathan from October 2012 to October 2012.

< Prev post Next post >
Category: Article examples,

Words: 6271

Published: 02.18.20

Views: 601