1) Describe the company values at PST

 The Peak Selling Technology added value in form of technology

innovation.
 The company has embarked efficient performance in meeting
intensive Research and development leadership.

 Continuous innovation, good quality , superior performance and high

level of durability serves the market in a very effective way.
 The growth rate has been phenomenal and has added much to the
brand value of the company and hence to the value proposition.

 The company trains its sales staff with utmost seriousness and delivers
value addition in form of knowledge which in turn makes the sales force
best in the market.
 The company’s value was mostly dependent upon strong relations in
the market by way of effective distribution network.

2. What arguments can be made for introducing an economy tape?

What might the CEO think of these arguments?

 Introduction of low tensile strength grade seals by by I Pack at a low

price .

 It was found that customers focused on delivery system and price per
roll which persuaded the company to introduce economy tape in
market.

 Capturing more market segment and revenue by lowering the price .

 Entering into competition which would generate revenues and make

the company sustained in the market.

 Cost effectiveness is the key for the company to produce economy

tapes to capture a huge market with cut throat competition.

3. What arguments can be made against introducing an economy tape?

  The company manufactured premium quality tapes since a long time so
it was against their value to produce such lower cost tapes
compromising on the quality.
 It would also result in lowering of the brand position in the market
which would certainly effect the market share and goodwill of the
company.
 It would create more damage than profitability to the company if they
go for economy tapes.
 The perception of the consumers will change about the quality of the
product if economy tape would be introduced.

4. What would be the major issues to overcome if PST were to introduce

economy tape? Propose introductory marketing program suggestions to
overcome these problems

 Absence of a superior product competitor made K2 to be compared with

competitors with somewhat inferior product in the market.

 The company acquired the packaging system firm which diverted the
focus of the sales force to product line system .

 Distributors of K2 focused fulfilment and processing of the order and was

not much efficient as brand and technical ambassador which left not a
good impact on customer service .

 There was a comparison going on in comparing K2 profile with lower

price as the buyer was much price sensitive and it impacted the market
size to a great extent.

Suggestions :

 PST should not move to an economy tape segment which would

ultimately dilute the brand equity of the company in the market .
 Its competitors are far away to the products offered by the PST , hence it
would not effect the sales much because of the premium quality being
offered .
 One solution can be to make people aware about the low quality tape
being produced and its effects .
 Also margin of revenue can be reduced to a level which would not force
the company to go for economy tape solution.