Milchem LTD ? Polyfibron Offset Press Blanket
Executive Summary
The objective of this paper is to analyse Milchem Ltd Company and make recommendations on the Marketing Strategy and on the introductory price for the Polyfibron Offset Printing Blanket product in the US Market. After years of research and development, with some previous doubts for launching a new product, John Keon, Marketing Manager of Milchem, has now the task for developing the marketing strategy for the new Polyfibron Off Set Printing Press Blanket.
The oligopoly US blanket market, where 5 competitors share 95% of the total market, is estimated at 2MM square yards that represent US$ 120 MM of revenues and 3,600 current customers. Milchem has developed a new product after years of research. This has been a huge effort with challenging decisions. Years before, the company stopped some developments because of high manufacturing costs, an issue that Milchem considers very carefully.
In a mature market where costs of production are higher than 80% of sales, Milchem top management has already decided to launch the product. Mr Keon has to consider the concentration of the printing US Market that is located mainly in the Northeast of the country and California. In fact, the marketing strategy needs to have geographical steps to be able to cover the national printing blanket market. In addition, pricing, in a market with standard products, is a key issue that Mr Keon is considering.
Therefore, I am a specialist consultant who has been hired by Mr Keon, in order to give specific recommendations, which are the purpose of this paper. I will analyse the new polyfibron offset press blanket produced by the company Milchem Ltd., make recommendations on its future marketing ...