1. Protecting The Future Of Sealed Air:
Financial Analysis and Recommendations

2. Company Background Market leadership Technical accomplishment
Consistent 25% annual growth
“We intend to seek market leadership because market leadership optimizes profit, and foster technological leadership because it is the only long-term guarantee of market leadership.” CEO T.J. Dunphy

3. Challenge Competition in the protective packaging market
How to sell against uncoated bubbles.
Enter uncoated bubble market
US, Germany, England, France
Continue exclusively in the coated bubble market

4. European Air Bubble Market
Price Sensitive
Viewed packaging supplies as “expendable commodities”
England
Sansetsu market dominance
Estimated 50% loss of current market share to uncoated for Sealed Air
France
Increasing use of uncoated over coated.
90% of new bubble applications uncoated
Germany
Loss share to uncoated by 20%-30% a year for Sealed Air

5. U.S. Air Bubble Market Quality over Price.
Packaging supplies viewed as productive, cost-saving resource
Growing protective packaging market
Sealed Air dominance in U.S. air bubble market

6. S.W.O.T. Analysis Strengths Weaknesses Opportunities Threats
Brand name recognition
Existing manufacturing operations
High quality products
Knowledgeable sales force
Strong competitors
Difficult to differentiate
Decreasing market shares for Sealed Air
Opportunities
Threats
Cannibalization of coated products
Weakening quality image
Large market for uncoated bubbles
Increase profit

7. Financial Analysis

8. Marketing Objectives:
Increase annual sales and net earnings of AirCap by 30% for the next two years.
Increase awareness of AirCap as a packaging option.
AirCap Market Segment:
Small to large scale businesses located in the US, UK, Germany or France, that sell products which require packaging after manufacture.

9. Flexible Wrap Segment Direct Competitors Indirect Competitors US
Astro Packaging of Hawthorne
GAFCEL
Europe
Sansetsu (Germany & UK)
Two major competitors entered 　the market in France
Paper Based
Foams

10. AirCap Competing Dimensions:
Price
Value
Customization

11. Price: Thickness/ Height Paper-Based Foams Astro uncoated
GAFCEL uncoated
AirCap uncoated
AirCap Coated
3/16
$27.70
$52.00
$47.00
$42.84
$39.53
$67.56
4/16 – 6/16
$50.60
$109.72
$54.50 --
$41.10
$78.42
1/2
$65.00
$65.75
$57.07
$55.35
$94.32
Note: Prices for AirCap are adjusted with a 20% distributor mark-up.

12. A Two-Pronged Strategy Is Needed
Price (cont):
A Two-Pronged Strategy Is Needed
Avoid “Price War” with entrenched competitors
Tailor strategy to fit each particular region
Any price advantages had by lowering prices are temporary
Steps must be taken to boost demand

13. Our Initial Pricing Strategy
Price (cont):
Our Initial Pricing Strategy
Allows us to use uncoated bubbles to penetrate Protective Wrap and Void Fill markets further in the US
Helps penetrate European markets where there is more price sensitivity
Captures market share from Air Bubble manufacturing competitors

14. Value:
Differentiate coated and uncoated AirCap bubble uses.
Uncoated: Packaging of less fragile products geared towards smaller businesses.
Ex: Wood items, plastic goods, smaller products, etc.
Coated: Packaging for fragile items geared towards bigger businesses.
Ex: Glass, pharmaceutical bottles, computer components, clocks, larger items, etc.

15. Customization: We have the specific wrap to meet your specifications
6 Grades Coated (Simplified):
A-100, SB-110, SC-120, ST-120, SD-120, SD-240
Potential of 3.7% loss in sales
6 Grades Uncoated:

16. Sales Strategy in U.S./England
Use existing sales network to target large business orders.
Focus on value and quality
Emphasize Coated AirCap
Use direct mail and trade shows to target smaller businesses and refer to distributors
Maintain efficient distribution network

17. Sales Strategy in U.S./England (cont.)
Change sales strategy to focus more on penetration and away from anti-uncoated
Increase sales force to 77 in the US
Maintain current time allocation (Instapak more growth potential)
Used to accommodate 30% sales increase (Avg. sales person = $600,000 in AirCap sales)

18. Sales Strategy in Germany/France:
Increase sales force within Germany and France
Use one sales person for every $600,000 of expected or hopeful sales
Target large businesses focusing on Price of uncoated AirCap
Establish distribution network equivalent to sucessful models seen in US and England
Use direct mail and trade shows to target smaller businesses and refer to distributors

19. Marketing Objectives:
Increase annual sales and net earnings of AirCap by 30% for the next two years.
Increase awareness of AirCap as a packaging option.
AirCap Market Segment:
Small to large scale businesses located in the US, UK, Germany or France, that sell products which require packaging after manufacture.

20. Outlook for the Future
Further differentiating Aircap uncoated and coated bubbles by introducing colored bubbles
Renaming both uncoated and coated bubbles for further differentiation and eliminate negative connotations on uncoated bubbles

21. And, that’s a WRAP!

22. Questions & Answers