Sealed Air

5/ Marketing mix

a) Product

The new product will have to:

- have a new name to differentiate it from the Aircap. Find a brand name!

- be cheaper than the competitorÐ'ÐŽÐ'Їs products to fight efficiently and quickly against them

The new product will also enlarge the range of products sold by Sealed Air. This is a problem because Sealed Air offer is already too complex (complaints of the distributors and the end users).

ThatÐ'ÐŽÐ'Їs why we propose to cancel some products. Based on the Exhibit 5, we propose to keep only:

- SC120 1 layer

- SC 120 2 layers

- SCT 120

- ST 120 2 layers

- SD240 4 layers

We reduce the offer of coated bubbles from 9 to 5 grades.

We will go to the uncoated bubbles market with only 2 grades. The same as the competitors: 3/16 and Ð'ЁÐ"¶.

We also though about stopping the SPB sales to use the production facilities for the uncoated bubbles. It is hard to give a definitive answer to this topic because we donÐ'ÐŽÐ'Їt have a lot of datas about the profitability of this activity, so we donÐ'ÐŽÐ'Їt know if it is relevant to Ð'ÐŽÐ'osacrifyÐ'ÐŽÐ'± this activity. In a first time, because this activity was mutliplied by 4 in 3 years, and because it is possible to use the production facilities without disturbing the process, we decided to keep it.

b) Price

Here are the Gafcel prices and margin estimations:

Our margins are still correct, and the margins are always smaller with low price products. But such a price, Sealed Air is sure to attract massively the customers and the quantity will compensate the low price.

In order to push our export policy, we can also give our distributor there an extra discount of 5%. But this must be validated by additional datas on the european price, the USD/EUR change rate. Another possibility is to give them a 60 days payment policy.

c) Promotion

Sealed Air will have to communicate efficiently to two communication plans:

- The market: it will be tough to change the perception of the company, traditionally

considered as the Ð'ÐŽÐ'ohistorical champion of coated bublesÐ'ÐŽÐ'± to a Ð'ÐŽÐ'obroad range offerÐ'ÐŽÐ'± company. The challenge is actually to keep a real barrier between the segments. ThatÐ'ÐŽÐ'Їs why Sealed Air will have to adopt a specific communication for each segment:

o A communication plan based on the price for the Ð'ÐŽÐ'oprice

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