BUSINESS MARKETING

Peak Sealing Technologies

Submitted by: B9

KHUSHBOO TIWARI 18052

ANISH S A 18067
KARTHIK G 18101
AMEERHASAN 18130
SANDRA K MENON 18165
RAKESH R 18184

Submitted to : R Sugant
Submitted on : 3nd October 2019

SDM Institute for Management Development

Mysuru, Karnataka, India

1. What are the different product lines/ SBUs does the company have?
The different product lines of the company are:
Industrial tapes - K2-Tape - premium pressure sensitive carton sealing tape line- GP-48, LD-
48, RD-48, HD-48, RD-72, HD-72, RDS-72, HDS-72 and SD-72.Packaging systems and
solutions division’s main product lines - bagging and shrink wrap systems, tape dispensers,
and automated carton forming/closure equipment system like

o Economy carton sealing tape

o Economy plus carton sealing tape
o Industrial light duty economy tape
o Heavy duty economy industrial tape
 Specialized adhesives
 Natural Adhesives
 Emulsion and Dispersion chemistries
 Hot melt formulations
 Reactive and Solvent based adhesives
 Complementary system packaging and solutions

2. What are the segments the company addresses?

The adhesive industry was segmented on the basis of the following

Product type: Natural Adhesives, Emulsion and dispersion chemistries, hot melt formulation
and other reactive & solvent based adhesives. Segmentation by product included categories
such as natural adhesive, emulsion and dispersion chemistries, hot melt formulation and other
reactive and solvent based adhesive.

End user market type: Although adhesives are used almost every sector still they can be
classified into following ways

Packaging : This segment represents a mature market with demand generally driven by the
volume of packaging shipments.Adhesive demand in the packaging industry was at 5,045
million pounds in2012, a 4% net decline versus 2007

Manufacturing & assembly: Key industries in this segment includes motor vehicle, aerospace
equipment, electrical and electronic equipment, machinery with a moderate growth rate.

Constructions : This segment was forecasted to be the fastest growing sector with 6.1% annual
growth rate. Growth was expected to be driven by new building constructions and increased
repair spending. Demand for adhesives in the construction market was 1,053 million pounds in
2012. This segment was forecasted to be the fastest growing sector with 6.1% annual growth
projected from 2012 to 2017. Growth was expected to be driven by new building construction
and increased repair spending.

Consumer/ Other : This segment comprised a variety of adhesives for home use such as super
glue, wood glue, white glue as well as adhesives used in miscellaneous applications like
crafts/hobbies, nail repair, jewellery design and other.
3. Map the different product lines/ SBUs of PST onto BCG Matrix and GE-McKinsey 9 Box
matrix clearly justifying why you have slotted the product line/ SBU in a particular box.
GE-MCKINSEY 9 BOX MATRIX FOR PEAK SEALING TECHNOLOGIES:
The optimum business portfolio identified in such way that one that fits perfectly to the
company’s strengths and try to help it to explore the most attractive industry sectors or markets.
A systematic approach for the multi business corporation to prioritize its investments among
its business units. Industry attractiveness consists of many factors that collectively determine
the competition level in it. Each axis is divided into Low, Medium and High, giving the nine-
cell matrix. Company PST offered different product lines and various products ,segregated in
the matrix based on its sales, forecasted demand and margins received by the company.

It identifies the strategic steps the company needs to make to improve the performance of its
business portfolio. A framework evaluates business portfolio, provides further strategic
implications and helps to prioritize the investment needed for each business unit.
GE MCKINSEY MATRIX

BUSINESS UNIT STRENGTH

HIGH MEDIUM LOW
HIGH Packaging systems k2 Construction-
Tape(GP-48,RD-72) adhesives
MARKET MEDIUM Other packaging Packaging, manufacturing and
ATTRACTIVENESS .consumer assembly(adhesives)
LOW k2 Tape (LD-48, HDS- K2 Tape (SD-72)
72)
subdivision

Grow- In this Business, the units are fall under grow attract high investment. Huge cash is
generated in this phase. Firms may go for product differentiation or Cost leadership. In this phase,
Market leaders exist. Growth and CAGR of the company is considerable.
Selective Investment-In this Business, the units are fall under hold phase attract moderate
investment. Market segmentation, Market penetration, imitation strategies are adopted in this
phase. In this phase, Followers are exist
Harvest- In this Business, the units are fall under this phase are unattractive. In this phase,
Strategies like divestment, Diversification, mergers are adopted

Stars: Question Marks:

Market

High
growth

  Other packaging
rate

K2 Tape Products
solutions
 Cash Cows: Dogs:
Low Adhesive products
 

High Low

Relative market share

BCG Matrix
STARS
From the case we can also see that carton sealing and industrial tapes have increasing sales
from $39.6 to $68.6. Even through there are economy product competitors, they have managed
to produce its products in premium segment. The K2-Tape had product line of 9 pressure
sensitive carton sealing tapes. They used premium pricing strategy and thy used very selective
distribution policy which made it sustain in the market. It is expected that K2 tapes will soon
move up to the cash cow and generate money for the company.

CASH COW
Specialized Adhesives is placed in cash cows in BCG matrix because they have overall demand
for example, US market demand for adhesives typically followed overall economy trends, with
major indicators consisting of packaging shipments, manufacturers’ shipments and
construction expenditures

With the increasing demand and the company delivering to the right segments, it will be able
to achieve success and sustain in the market.

DOGS
The product with the lowest market share and the lowest growth rate needs to be placed in the
dog’s section. In the company, the adhesive company earning relatively less can be placed in
the Dogs.