1. Sarthak Shah Julia Kim Inggi Winata
Sealed Air- AirCap
Sarthak Shah
Julia Kim
Inggi Winata
Aurelie Operiol
Alexandre Bonnier
Nelly Tanizar
Abe Feng

2. History Bubble history Growth Uncoated bubble wrap threat
European markets

3. Translation (English  English)
I love AirCap bubbles, they always protect and I can pop them when I’m done!
(French  English)
Look, this product made it through shipment well! It only has a few bruises on it!

4. US Market Recommendations
Part 1: Increase sales force
Part 2: Enforce 35%
Part 3: Educate end users
Part 4: Test uncoated with distributor

5. European Recommendations
England: Launch SIBCO
Under the Sealed Air umbrella
France: Continue SIBCO
Watch AirCap
Germany: Launch SIBCO

6. SWOT, Strengths Market leadership Innovation Good Marketing and Sales
Loyalty of distributors

7. SWOT, Weaknesses How to market uncoated bubbles Selective distribution
Inconsistent sales representatives

8. SWOT, Opportunities Uncoated bubble sales increasing
Europe becoming more price sensitive
Further AirCap growth in US

9. SWOT, Threats GAFCEL in US, uncoated bubble maker
Sansetsu in Europe, Germany
Quality uncoated bubbles
Lower price
Declining coated bubble market (Europe)

10. US Market Recommendations
Part 1: Increase sales force
Part 2: Enforce 35%
Part 3: Educate end users
Part 4: Test uncoated with distributor

11. US Part 1: Increase sales force
4 additional salesmen
More distributors = More sales
Maintain Loyalty
First line distributors
6:1 Distributor/Salesmen ratio
Distributor capacity: 370 – 394
Makes financial sense

12. US Part 1: Increase sales force
Income of around $40,000
Adjusted for inflation ~ early 80’s
Fixed costs from salaries
Increase 3.72%
Sales
Increase 6.57%

13. US Part 2: Enforce 35% Time: Instapak 60%, AirCap 35%
Salesman currently ~ 20% to AirCap
Distributors currently unhappy
Incentive
Increase AirCap Commission ~ 2.5%
Happy distributors = more sales

14. US Part 3: Educate end users
Distributors not educating end users
End users don’t know AirCap advantages
End users will pull sale from distributors
Pamphlets
1 for every 5,000 sq ft

15. US Part 4: Testing uncoated
Test with large client on trial basis
Large client: 2-3 first-line distributors
Less risk than in open market
Trial basis: 1 year trial

16. Uncoated Test Implications
Successful
Uncoated penetration
Readiness
Not successful
AirCap dominance
Hold US Market

17. European Recommendations
England: Launch SIBCO
Under Sealed Air umbrella
France: Continue SIBCO
Watch AirCap
Germany: Launch SIBCO

18. Europe- England AirCap still strong Good distribution
68% Market Share
Good distribution
Competitor: Sansetsu
Uncoated cost
50% less than AirCap
Uncoated bubble growth

19. Europe- England Launch SIBCO SIBCO unprofitable alone
Under Sealed Air umbrella
Uses Sealed Air salesmen
Uses AirCap distribution
No additional investment
Expectations
AirCap down, SIBCO up

20. Europe- England MARKETING SIBCO
Already buying
Don’t mention SIBCO
SIBCO still in catalogue
Emphasize AirCap performance
Not buying
Briefly mention SIBCO
Alternative
SIBCO lacks AirCap’s performance

21. Europe- France SIBCO’s home Sealed Air – 31% Market Share
14% AirCap
Uncoated growth expected
% coated, 50% uncoated
% coated, 70% uncoated
Uncoated- 40% less than AirCap price

22. Europe- France SIBCO Expect AirCap to lose market share
Natural growth
Expect AirCap to lose market share
AirCap no longer profitable
Pull the plug

23. Europe- Germany AirCap late into market Never did well, Losing ground
Sansetsu Domination
78% market share
AirCap- 5.2% market share
Coated bubbles unpopular
Uncoated cost- 35% of AirCap price

24. Europe- Germany AirCap unprofitable Introduce SIBCO
Pull the plug
Introduce SIBCO
SIBCO to use AirCap distribution, sales
No additional cost
Realistic Expectations

25. Financial Analysis Overview Part 1: Increase sales force by 4
Part 2: Enforce 35% through increased commission (2.5%)
Part 3: Educate end users through pamphlets ($0.50 pamphlets)

26. Sales Forecasts 6.5% Sales Increase
370 distributors w/ 713,000 sq ft. avg volume per distributor
62 sales representatives
370/62 = 6 distributors per rep
4 new sales representatives
4*6 = 24 new distributors
24*713,000 -> 6.49% more business

27. Important Variables
Pamphlet Amortized Cost ($0.50 pamphlet) [variable]
Commission increase [variable]
Number of new employees at $40,000 salary [fixed]

28. Decision Possibilities (Exhibit 1)
Pamphlet Cost (Amortized)
Commission
Number of Sales Reps ($40,000 salary)
Break-Even Point
Estimated Profit Increase
$0.10
2.50% 4
3.72%
2.75% 5
4.41%
2.07% 6
5.10%
1.38%
$0.50
3.00%
7.60%
-1.07%
3.50%
6.73%
-0.22%
7.44%
-0.91%
8.16%
-1.59%

29. Break-Even (Exhibit 2)

30. In-Depth Analysis (Exhibit 3)
Original contribution: $22.16
New contribution: $21.95
Extra commission
Pamphlet cost
Break-Even: 3.72%
Retain last years profits and cover the $160,000 fixed costs
Projected Sales Increase: 6.5%
Profits: +2.75%

31. Profit Estimations (Exhibit 4)

32. European Market (Exhibit 5)
Fixed Costs: $0
Contribution
Germany: $10.94
France: $9.76
England: $2.66
Break-Even: 0 (profitable from the very first sale)

33. Conclusion US Market Recommendations Part 1: Increase sales force
Part 2: Enforce 35%
Part 3: Educate end users
Part 4: Test uncoated with distributor

34. Conclusion European Recommendations England: Launch SIBCO
Under Sealed Air umbrella
France: Continue SIBCO
Watch AirCap
Germany: Launch SIBCO
Watch Aircap

35. Overall Goals Europe US Market share in France, Germany
Sansetsu US
Maintain AirCap’s strength
Monitor uncoated penetration

36. THE END