Marketing strategies Sealed Air VS. Gafcel.

Essay by warlordsA, May 2005

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No preliminairy remark


The protective packaging market is becoming more competitive.

Sealed Air company is encountering a growing number of competitors in its field. Similar or alternative systems are now proposed against those of Sealed Air. These new systems are often cheaper but as argued by Sealed Air less effective concerning the protection they offer and therefore less cost-effective.

A new company (GAFCEL) has entered the market with an uncoated product and is having success on the New York, California and Ohio market. Sealed Air will face further erosion of its US market share.

Based on the analysis of the AirCap® product as well as on the analysis of the market, we will answer questions regarding Sealed Air's reaction to its new competitor GAFCELL and the opportunity to introduce a new uncoated product in the market.

We will make marketing recommendations on how to introduce this new product and in which geographical market to launch it in order to maintain Sealed Air as a leader of the protective packaging market.


3.1. What should Sealed Air be trying to accomplish in any decision it makes in response to the GAFCEL threat?

It should be trying to gain back the market share that was taken by GAFCEL and it should ensure it does not loose anymore market share.

It should ensure it keeps its reputation of a company built on 'technical accomplishments' and must ensure its image does not suffer from the possible introduction of this new uncoated product.

It should not 'cannibalise' itself and therefore it should ensure the products are segmented correctly.

3.2 What has been happening in the market and how is Sealed Air doing?

In order to answer this double question, we have completed and focused our analysis mainly on the...