Sealed Air corporation is a global
leader in providing business customers with packaging solutions, this means
that they need to employ a specific pricing approach for each customer, by
doing so they can meet and exceed the customer expectations, which is an
important strategic priority in any business. To address the needs of the
corporation’s customer, Sealed air Co. must understand the needs and goals of
the purchasing decision makers and how these goals contribute to the buying
The purchasing goals summed up and
their objective are 1:
Uninterrupted Flow of
Materials: Any company when purchasing they want to be provided by the needed
materials and supplies without interruption to continuously operate.
Manage Inventory: Reducing
the usage of inventory.
Improve Quality: They want
to maintain if not improve the quality provide by evaluating and choosing the
best products and services.
Developing and Managing
Supplier relationships: They seek to find good suppliers and achieve a
collaborative relationship with them
Achieve Lowest Total Cost:
Purchase required products and services at lowest total cost. Buying the needed
product while paying the minimum total cost
Reduce Administrative Costs:
Complete the purchase without paying high administrative fees.
Advance Firm’s Competitive
Position: Achieving competitive advantage over competitors by reducing the
total costs or using the capabilities of suppliers
decision makers usually cannot find a solution that can address all their goals
without sacrificing some of those goals, so they must understand the total cost
of the product they are purchasing and the factors that drive this cost, the
costs of managing and initially acquiring the product, the quality and
reliability of the product for its lifecycle and finally the value of the
product to the company and its customers
So, Sealed Air co.
can use Total Cost Ownership (TCO) approach when providing a pricing for a
specific customer, this approach must be done without any hidden costs or
charges and it must address the concerns the purchasing decision makers face
trying to understand the product’s total cost, this will justify sacrificing
some of their purchasing goals.
Sealed Air co. can
also take into consideration the “Pricing of Captive Products” as a pricing
strategy for selling their products. In such a strategy and according to the
Davis Neon case the SpeedyPacker insight system was designed and manufactured
specifically for Davis Neon’s operations. The usage of the foam supplied by
Sealed Air for Davis operations is highly dependent the SpeedyPacker System,
which keeps the consumer in a position where they will be dependent on the
services provided by Sealed Air.
require close protection and packaging while in the shipping process to avoid
damages of the products at their final destination. Sealed Air Corporation can
penetrate the market by offering their services to different types of companies
whether they require foam protection, bubble wrapping or any other solution.
1- Electronic Goods: Electronic goods requires
special kind of protection “Anti-static bubble wrap” as there can be a chance
of electrical discharge; can be of a high risk.
2- Perishable items: perishable items such as food or
medical items also require a special kind of protection as they need to be kept
in a specific temperature while in the shipping process to avoid spoilage.
Sealed Air Corporation can offer a special type of bubble wrapping where the
perishable items will remain in a temperature protected condition.
3- Beauty products: As most beauty products such as
makeup and perfume are glass bases products, they require special kind of
packaging to avoid breakage and spillage of the product itself. In this case,
Sealed Air Corp can provide wrapping solutions for these products where they
will have a competitive advantage.
4- Glass product and liquids: glass products or
liquids require special packaging to avoid breakage as well as movement of the
product itself while shipping. In this case, the company can offer solutions
where they can offer “void fillers” to fill the gaps between each glass product
to avoid the movement of the product and collision.
5- Valuable antiques: some antiques also require
special type of protection such as “vases” where they are ceramic or glass
based where the chance of fracture is high. Sealed Air Corporation can provide
packaging solutions to protect the product while in shipping process to insure
the arrival of the products to their final destination in the same condition.