Star Chemical

In: Business and Management

Submitted By caseyh92
Words 1477
Pages 6
Star Chemical Company: Case Study
Casey Hall
4/28/14

Executive Summary:
Star Chemical is a chemical manufacturing company that is experiencing a profit slump due to the loss of competitive edge in pricing and efficiency. Also, stockholders have been criticizing them not getting into consumer product in the market. Star Chemical has not participated in this form of integration because of their lack of experience in consumer marketing and lack of a product to introduce. Star Chemical is in desperate need of a new and efficient channel strategy in order to sell and distribute their new germicidal pool chemical.
There are many alternatives and decisions to make, but it is recommended that Star Chemical hire a distributor. They can brand the product and sell it in bulk form for private labeling to broaden their potential customers, push the product through the market due to the decrease in cost compared to advertising, bring established channels and knowledge through a distributor, and focus on a few certain markets and channels to start out with in order to help develop their strategy before they expand.

Situational Analysis:

Positive Market Factors:
• The marketing size is good because there are a good large of pool owners in the United States.
• The market geography is definitely favoring. The distribution of pool owners in the United States spans broadly due to a wide variety of pool owners (residential owners, hotel owners, and school pools).
Positive Company Factors:
• Star Chemical Company is a medium sized company with a larger range of options than a smaller manufacturer. They can pursue more channels so that they can expand their market.
• They have an objective of getting the product (germicidal chemical) distributed as widely as possible to gain experience in consumer marketing. If they have this goal, it may limit which channel members…...

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