marketing plastics resins: ge & bw

8/14/2019 Marketing Plastics Resins: GE & BW

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Marketing Plastics Resins:Marketing Plastics Resins:

GE & BWGE & BWTeam 5

Ajai Sachchar

Anamika RoyKrishna Suhas

Ram MenonRavi Chaitanya

Summiya Saify


2/17

IntroductionIntroduction

Deals with Borg Warner Chemicals &General Electric Plastics

General overview of the businessCompetition & Changing market

environment

Device an optimal channel structure


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The Business & ProcessThe Business & Process

Limited Consumer Awareness

Captive Facilities

Custom Injection Molders Supplied in pellet form


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Purchasing Habits &Purchasing Habits &

ProductsProducts

Advantage of Economies of Scale Quantity pricing policy

Commodity Plastics Used in consumer packaging

Inexpensive & short term durability

Mature phase in PLC

Engineering Plastics Used in mechanical functions

Expensive & durable

End of growth stage in PLC


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BIRTH OF PLASTICSBIRTH OF PLASTICS

A move towards saving elephants

John Wesley Hyatt discovered celluloid

American Cellulose ChemicalCorporation

Refinement of petroleum products Pricing is purely competition based

Evolution of engineering plastics from

commodity plastics


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Major oil and chemical companies

showed little interest in engineeringproducts

Small volume niche products

Engineering materials require additionalmanufacturing and processing steps

GE started providing End-userEducation, Plastic component design,

development and product information


7/17

Value added sales approach throughFMD(Field Market Development)

Field Sales Team directly responsible for

direct salesFST working closely with end users andplastic specifiers

Keep specifiers up to date about newproduct development and designtechniques


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CHANGING ENVIRONMENTCHANGING ENVIRONMENT

Energy crisis of 1970s

Small molders faced problem in getting

raw material Little flexibility to find alternatives

Lexan500 or equivalent


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BW Market Research

Serve medium and small sized

customersConcentration only on large volume

customer

Competition from US firms

Competition from Mitsubishi(Japan) andLucky(Korea)


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CHANNEL IMPLICATIONCHANNEL IMPLICATIONBWs approach

Plastic Service centers for LTL customers

Eliminates the need of keeping inventory

Direct sales force only for majorcompanies


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GEs ApproachGEs ApproachRelied exclusively upon sales team

To develop molding capacity of smallmolders into bigger ones

Overall growth of industry


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Advantages of Direct SalesAdvantages of Direct Sales

Sales support before and after sales

Engineering plastic requires moretechnical support

Directly deal with prime supplier


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GEs MeasuresGEs Measures

1.Place additional sales resources Enables higher direct communication

Increase contacts with smaller molders

Addressing customer need

Better order handling

Better inventory management

Feedback

Electronic order entry

2.Specialty compounding facility


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PSCPSC


15/17

AlternativesAlternatives

GE Plastics Sets Up EOU To TapAsia-Pacific Market


16/17

TWO DIFFERENTTWO DIFFERENT

APPROACHESAPPROACHES

GE vs BW

Product market characteristics

Standardized products and customizedproducts

Commodity products and BW approach

Engineering products and GE approach


17/17

Energy crisis

Substitute materials and internal

standards Increased competition in the

engineering plastics market- foreigncompanies

marketing plastics resins: ge & bw

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