Marketing Plastics Resins - GE _ BW, Case Study by gauravjindal

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									 Deals with Borg Warner Chemicals &
  General Electric Plastics
 General overview of the business
 Competition & Changing market
 Device an optimal channel structure
 Limited Consumer Awareness
 Captive Facilities
 Custom Injection Molders
 Supplied in pellet form
 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
   Major oil and chemical companies
    showed little interest in engineering
       Small volume niche products
       Engineering materials require additional
        manufacturing and processing steps
   GE started providing End-user Education,
    Plastic component design, development
    and product information
 Value added sales approach through
  FMD(Field Market Development)
 Field Sales Team directly responsible for
  direct sales
     FST working closely with end users and plastic
     Keep specifiers up to date about new product
      development and design techniques
 Energy crisis of 1970s
 Small molders faced problem in getting
  raw material
 Little flexibility to find alternatives
 Lexan 500 or equivalent
 BW Market Research
 Serve medium and small sized customers
 Concentration only on large volume
 Competition from US firms
 Competition from Mitsubishi(Japan) and
   GE Plastics Sets Up EOU To Tap Asia-
    Pacific Market
 GE vs BW
 Product market characteristics
 Standardized products and customized
 Commodity products and BW approach
 Engineering products and GE approach
   Energy crisis
    Substitute materials and internal
   Increased competition in the
    engineering plastics market- foreign

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