Peak Sealing Technologies

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Once PST shift their positioning by providing the market with lower quality at lower price, the market then will perceive PST as equal to other brand and will eventually lost its competitive advantage in premium quality brand. Thus considering the cost and benefit, pros and cons of launching economy tape, I recommended for PST not to introduce economy tape lines due to the cons of launching cheaper product will eventually create more damage instead of profitability.

Programs for both the selections: when PST introduces the economy tape and when PST doesn’t.

* Program initiatives that should be taken up if PST decided to launch its economy tape line up:

1. PST need to set clear differentiation between the economy and premium line up to avoid confusion and quality perceived from the premium line up user.

2. Design pricing and benefits structure to distributors to prioritize premium tape

3. Distribute economy tape to price sensitive area only

4. Introduce slightly superior product with level price compare to competitor

5. Do not use same brand as K2 higher quality tapes

* Programs initiatives that should be taken up if PST decided not to launch its economy tape line up:

1. One of PST sales reps strength is their ability to provide solutions and demonstrate PST’s product benefits to clients, by transferring this ability to distributor’s sales team they will be able to provide more value to the customer and demonstrate the benefit of using higher grade tape.

2. Launch new marketing campaign at more price sensitive area by showing the end benefit and cost structure comparison by using economy versus K2 premium tapes

3. Simplify and improve the process of sales and distribution to increase customer satisfaction index not just to PST’s sales force but also to distributor’s sales team.