To find a substitute for ivory in billiard balls In late19th century, the game became so popular that hundreds of elephants were killed In 1866, John Wesley Hyatt discovered celluloid
Plastic Manufacturers
Captive Facilities
Produce plastic parts strictly for the manufacturer Large scale production
Custom Molders
Produce plastic parts as designed and specified by the manufacturer Independent small businesses
Types of Plastics
Commodity Plastics
Used for packaging, throw-away items, toys Inexpensive, in mature phase of PLC Little brand loyalty exists, attention paid to price and availability Ex: Detergents bottles ( Polyethylene), throwaway cups ( Polystyrene)
Engineering Plastics
Used to perform mechanical or structural functions, meet durability and safety standards Most of them in the growth stage of PLC Ex: Computer cases ( Polycarbonate), plastic gears (Nylon)
Purchasing Habits
General Electric
Advantages of engineering plastic Assist in plastic component design, development and production
GE Sales Approach
Plastic specifiers Buying centers End users Design and development of products Update on new product development and techniques
Assist for
CHANGING ENVIRONMENT
Energy crisis of 1970s Small molders faced problem in getting raw material Little flexibility to find alternatives Lexan500 or equivalent Development of internal standards
Large customers
Direct sales force for major companies
Focus Of BW Channel
One-stop, efficient and cost-effective shop
Standard packaging Standard quantity-scaled prices
Independent, nationwide distribution network Quick, effective inventory delivery Eliminates inventory storage Assistance in emergencies, technical advice Free-up field resources for market development
Focus Of GE Channel
JIT delivery systems Special facility for small orders Pre-sales, post-sales and technical support Centralized customer service
Why BW is better?
Channel designed as per target market Wider, uninterrupted distribution channel Cost-effective approach Pitfalls in GE approach
Single point service provision Expensive Accumulation of inventory
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