Marketing scenario

Positioned as an premium offering focused to lowest overall cost to shutdown users through superior overall performance. Leader in quality , performance and technological innovation Product railroads Carton sealing and industrial tapes Specialized adhesives different packaging yields SKI tape Manufactured using patented technology and a brand name for pressure untoughened carton sealing tapeEvery noble tensile strength and sheer resistance Positioning High Price K Products Low Quality High Quality pack Tensile revolutionary Product Low Price Problem Statement K tape competed against inferior economy grade ingatherings in carton sealing type obturate offered 25-35% lesser price Revenue of K- $68. 6 million PACK $28. 5 million 2012 Tensile -a new competitor had $2. 7 million dollar barter with one sales representative Should SST stay with high quality product or enter the economy grade segment ?Option 1 inaugurate the economy grade segment under the same brand PROS Acc ess to the economy segment Defend market share against competition Diversification of product portfolio CONS Dilution of the brand material body as a maker of technological superior product Conceptualization of its own product offering Accoutered product line Option 2 Enter the economy grade segment under different brand Implications for Customer Ability to fulfill need of price sensitive customers Possibility of change in perception of being a quality leaderDistributor Possibility to offer a low end SST product Even wider product range Limited sales force Sales Force Ability to offer more variety in terms of price levels More grounds to explain product differences Brand No positive impact Negative impact on brand image Option 2 Stay with high-quality products Maintaining image of quality Leader Loss of Market share Not targeting price sensitive consumers No need for adjustment in distribution policy.