Sealed Air corporation is a globalleader in providing business customers with packaging solutions, this meansthat they need to employ a specific pricing approach for each customer, bydoing so they can meet and exceed the customer expectations, which is animportant strategic priority in any business. To address the needs of thecorporation’s customer, Sealed air Co.
must understand the needs and goals ofthe purchasing decision makers and how these goals contribute to the buyingorganization objectives.The purchasing goals summed up andtheir objective are 1:· Uninterrupted Flow ofMaterials: Any company when purchasing they want to be provided by the neededmaterials and supplies without interruption to continuously operate.· Manage Inventory: Reducingthe usage of inventory.· Improve Quality: They wantto maintain if not improve the quality provide by evaluating and choosing thebest products and services.· Developing and ManagingSupplier relationships: They seek to find good suppliers and achieve acollaborative relationship with them· Achieve Lowest Total Cost:Purchase required products and services at lowest total cost. Buying the neededproduct while paying the minimum total cost· Reduce Administrative Costs:Complete the purchase without paying high administrative fees.· Advance Firm’s CompetitivePosition: Achieving competitive advantage over competitors by reducing thetotal costs or using the capabilities of suppliersThe purchasingdecision makers usually cannot find a solution that can address all their goalswithout sacrificing some of those goals, so they must understand the total costof the product they are purchasing and the factors that drive this cost, thecosts of managing and initially acquiring the product, the quality andreliability of the product for its lifecycle and finally the value of theproduct to the company and its customers So, Sealed Air co.can use Total Cost Ownership (TCO) approach when providing a pricing for aspecific customer, this approach must be done without any hidden costs orcharges and it must address the concerns the purchasing decision makers facetrying to understand the product’s total cost, this will justify sacrificingsome of their purchasing goals.
Sealed Air co. canalso take into consideration the “Pricing of Captive Products” as a pricingstrategy for selling their products. In such a strategy and according to theDavis Neon case the SpeedyPacker insight system was designed and manufacturedspecifically for Davis Neon’s operations. The usage of the foam supplied bySealed Air for Davis operations is highly dependent the SpeedyPacker System,which keeps the consumer in a position where they will be dependent on theservices provided by Sealed Air.Question 2:Many productsrequire close protection and packaging while in the shipping process to avoiddamages of the products at their final destination. Sealed Air Corporation canpenetrate the market by offering their services to different types of companieswhether they require foam protection, bubble wrapping or any other solution. 1- Electronic Goods: Electronic goods requiresspecial kind of protection “Anti-static bubble wrap” as there can be a chanceof electrical discharge; can be of a high risk.
2- Perishable items: perishable items such as food ormedical items also require a special kind of protection as they need to be keptin a specific temperature while in the shipping process to avoid spoilage.Sealed Air Corporation can offer a special type of bubble wrapping where theperishable items will remain in a temperature protected condition. 3- Beauty products: As most beauty products such asmakeup and perfume are glass bases products, they require special kind ofpackaging to avoid breakage and spillage of the product itself. In this case,Sealed Air Corp can provide wrapping solutions for these products where theywill have a competitive advantage. 4- Glass product and liquids: glass products orliquids require special packaging to avoid breakage as well as movement of theproduct itself while shipping. In this case, the company can offer solutionswhere they can offer “void fillers” to fill the gaps between each glass productto avoid the movement of the product and collision. 5- Valuable antiques: some antiques also requirespecial type of protection such as “vases” where they are ceramic or glassbased where the chance of fracture is high. Sealed Air Corporation can providepackaging solutions to protect the product while in shipping process to insurethe arrival of the products to their final destination in the same condition.