Marketing Plastics Resins:

GE & BW
Team 5
Ajai Sachchar
Anamika Roy
Krishna Suhas
Ram Menon
Ravi Chaitanya
Summiya Saify
 Introduction
 Deals with Borg Warner Chemicals &
General Electric Plastics
 General overview of the business
 Competition & Changing market
environment
 Device an optimal channel structure

 The Business & Process
 Limited Consumer Awareness
 Captive Facilities
 Custom Injection Molders
 Supplied in pellet form
 Purchasing Habits &
Products
 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
›
 BIRTH OF PLASTICS
• A move towards saving elephants

• John Wesley Hyatt discovered celluloid

•
• American Cellulose Chemical
Corporation
•
• Refinement of petroleum products
•
• Pricing is purely competition based
•
• Evolution of engineering plastics from
commodity plastics
 Majoroil and chemical companies
showed little interest in engineering
products
 Small volume niche products
Engineering materials require additional
manufacturing and processing steps
 GEstarted 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 specifiers
Keep specifiers up to date about new
product development and design
techniques
•
 CHANGING ENVIRONMENT
 Energy crisis of 1970s
 Small molders faced problem in getting
raw material
 Little flexibility to find alternatives
 Lexan500 or equivalent

  BW Market Research
 Serve medium and small sized
customers
 Concentration only on large volume
customer
 Competition from US firms
 Competition from Mitsubishi(Japan) and
Lucky(Korea)
•
 CHANNEL IMPLICATION
BW’s approach

ü Plastic Service centers for LTL customers

ü
ü Eliminates the need of keeping inventory
ü
ü Direct sales force only for major
companies
 GE’s Approach
ü Relied exclusively upon sales team
ü
ü To develop molding capacity of small
molders into bigger ones
ü
ü Overall growth of industry
 Advantages of Direct Sales

ü Sales support before and after sales

ü
ü Engineering plastic requires more
technical support
ü
ü Directly deal with prime supplier
ü
ü
 GE’s Measures
1.Place additional sales resources
ü
ü Enables higher direct communication
ü
ü Increase contacts with smaller molders
ü
ü Addressing customer need
ü
ü Better order handling
ü
ü Better inventory management
ü
ü Feedback
ü
ü Electronic order entry
2.Specialty compounding facility
ü
ü
PSC
 Alternatives…
 GE Plastics Sets Up EOU To Tap
Asia-Pacific Market

 TWO DIFFERENT
APPROACHES
 GE vs BW
 Product market characteristics
 Standardized products and customized
products
 Commodity products and BW approach
 Engineering products and GE approach
  Energy crisis
•
Substitute materials and internal
standards
 Increased
competition in the
engineering plastics market- foreign
companies
•