Marketing Plastic Resins: BW & GE

1. Market Environment of GE & BW

There are few elements which has impact on their market environment which are following:
 Energy crisis of 1970s
 Small molders faced problem in getting raw material
 Little flexibility to find alternatives
 Increase compitetion
There are also some difference between their views they are
GE: Value-added strategy
GE: Direct sales team
BW: Direct sales team larger customers
BW: Uses PSC’s for smaller
2. Different Approaches of GW & BE

BW’s approach

 Plastic Service centres for LTL customers

 Eliminates the need of keeping inventory
 Direct sales force only for major companies

GE’s Approach
 Relied exclusively upon sales team
 To develop moulding capacity of small moulders into bigger ones
 Overall growth of industry
Between these two approaches I think GW is better one because they emphasize on overall
growth of the industry which is essential to maintain a sustainable growth of the industry.

3. Customer NEED (BW & GE)

Customer Needs viewed by GE & BW are given below:
 Mostly Different Needs
 Fewer similar needs
 Competitive Advantage
Instead of all these their prospective towards the customer are same.
4. Different Segments of GE and BW
Market segment of GE & BW where different they both target the different strategy Here from
the case we come to know that GE emphasizes on Distribution process through various ways one
of their successful attempts is PSC, on the other hand GE emphasizes on direct sales. From the
case it’s clear that GE is more interested on final customers rather than using other channels they
use direct sales & FMD.

5. Target Market & channel Design

 BW designed as per target market
 BW reaches LTL customers, branches out
 Wide distribution channel allows for cost effective selling
 GE focused on direct selling and FMD
 Value added system opposed by molders
 GE stands alone in direct customer service

6. BW & GE Goals
From the case above we see that both of the firm are interested n increasing their market
share that’s why they increase their category first they only produces engineering
material later on both like to target other range of customer such as small and mid-sized
customers. Like DuPont the have both types of market which make a huge range of
customer in economical crisis they suffered a lot so thy like to extend their business.
Their goals impact on their market because now they have to change their ways they need
more customer engagement.
7. Different Channel Different purposes
The channel plan is derived from channel objectives. They are based on the requirements of the
purchasers and users, the overall marketing strategy, and the long-run goals of the corporation.
However, in cases when a company is just getting started, or an older company is trying to carve
out a new market niche, the channel objectives may be the dominant objectives. There are
different channel and their motto are different they serve different purposes. Some of the channel
objectives are:

 Growth in sales by reaching new markets, and/or increasing sales in existing markets.

 Maintenance or improvement of market share—educate or assist channel components in

their efforts to increase the amount of product they handle.

 Achieve a pattern of distribution—structure the channel in order to achieve certain time,

place, and form utilities.

 Create an efficient channel—improve channel performance by modifying various flow

mechanisms.

These channel objectives indicates how they fulfill different purposes in the business.
One channel may not be suitable for one business gain there can be more channel for one
business like GE follows to FMD and direct sales.
8. Service Mix of GE and BW are charted below:
General Electric Brog Warner
Product Engineering Plastic Commodity Plastic
Promotion What it can do, not what it cost Quality using PSCs to reach out to LTL
to produce. End user education , customers better. Filled avoid in
product information, updates customer sales and service
FMDs and Field sellers
Price Not Price conscious Price conscious
Placement Direct sales PSCs and direct sales for larger
customers

9. FMD
Field marketing involves working on site to connect with markets. As such, it comprises all
marketing activities that involve face-to-face contact with the consumer. FMD is essential for
every company to maintain their market share.
FMD of GE is given including conflict:
Roles:
 Relationship Builders
 Buying Center
 Plastic specifies and END Users

Conflict:
 FMD vs. Field structure teams.