Group 4A

Sabarinath U H13041 Shaadab Zafar H13048

Santu Paul H13045 Shubhang Aggarwal H13050
Satyartha Srivastava H13046 Sourik Syed H13053
Case Summary
Rohm and Haas is a diversified chemical company operating in four distinct business segments of which
the focus of the case is on biocide products division of the specialty chemicals group. The biocide
products catered to the needs of the metal working industry. Its two major products- Kathon 886 MW and
MWX were maintenance biocides and Rohm and Haas controlled about a 15-20% share in the
maintenance biocide market. The Kathon 886 MW operated in the central systems market while the
Kathon MWX was targeted at smaller users in the relatively new individual users market (Table B). In the
latter, current products are inferior and require substitutes like deodorants or disinfectants which have
little positive effect. The challenge lay in the fact that despite producing a superior product with obvious
benefits, Kathon MWX was unknown to a large fraction of the target population and thus less than 6% of
the initial target was achieved. Rohm and Haas wishes to revamp its marketing strategy to improve the
MX’s prospects in this huge untapped market.

Analysis
Based on our analysis of case facts we found the following problems and suggest corresponding
remedies for the product:
Problems
1. Multiple distribution channels
cause major price fluctuation
Price 2. Lower price may lead to bad
perception about the product
quality.
1. The advertisements did not
focus on cost savings and
additional benefits.
Promotion 2. The free sampling was not
monitored as very few
customers remembered about
the free sample in the survey
1. Formulators focus mostly on the
central system customers. The
MWX had lower margins
2. Low brand awareness as
Place distributors brand privately
3. Individual systems mainly buy
from industrial supply houses
4. Kathon MWX increases fluid life
reducing service requirement
for formulators.
Recommendations
1. The price of the product needs to be fixed for
the end user.
2. Until the market matures, the price should be
kept at par with the competitors.
1. The following benefits must be highlighted in
the advertisements to increase awareness.
a. 1% concentration required for treatment
compared to an industry average of 15%.
b. Reduction in maintenance cost to longer
life of the biocide.
c. Safety benefits of using Kathon MWX.
d. Cost effectiveness vs competitors
2. An incentive system for sample in the
distribution channel must be introduced
1. Remove formulators from the channel and
distribute directly to the industry supply
houses. This will :
a. Open up $40 bn distribution channel
b. Primary selling to industrial supply
houses leading to more potential
earnings and increased marketing
efforts from the latter
2. Vertical integration where company opens own
distribution channel has high potential benefits.

1. Privately branded by 1. Removal for formulators leads to more brand

Product formulators awareness