Overview of the company:
Kathon product sales have been disappointing considering the potential market available and the quality and benefit provided to consumers. The product is a metalworking fluid designed to kill microorganisms in metalworking fluids. The factor which has contributed to the poor results was brand recognition issues.
Private Branding - Rohm, the manufacturer, made a mistake by not allowing their distributors to continue utilizing their own brand name which have had publicity in the market, a loyal following and a stable foundation. By using "Kathon" as the new name of the new product, it brought hesitation to consumers because of the lack of familiarity and knowledge. Consumers are comfortable with the brands they have used in the past even though it does not meet their expectation..
Question: Plan of action and why?
Some plan of actions which I think will work:
1. Distributors want a private brand so I recommend private branding with a secondary line called "Kathon.
2. The manufacturing company that produces Kathon is concerned that the target consumer require a uniform package." So why doesn't the company create their own uniform packaging and let the distributors produce their own?
Interesting scenario, indeed. Please see response attached, which is also presented below. I hope this helps and take care
1. Distributors want a private brand, so I recommend private branding with a secondary line called "Kathon".
Why did you make this recommendation?
Things to consider: Are you suggesting that the same product be sold under two different brands, or a similar product be sold under the name "Kathon"? How would that benefit the manufacturer when the brand "Kathon" already has had poor results? Would a new name, for a secondary product be a better marketing strategy, if they wanted to go with a secondary line? Do you think that eventually, it would make a name for itself and gain brand recognition as "Kathon"? Who would distribute the secondary line "Kathon", the same distributor that is presently distributing the product or another distributor? For example, when Coca Cola Company came out with the New Coca Cola line, it ended up pulling the brand and going back to the ...
Based on the scenario where the manufacturer made a mistake by not allowing their distributors to continue utilizing their own brand name, this solution considers an alternative plan and makes several recommendations.