Overview of the company:
Kathon product sales have been disappointing considering the potential market available and the quality and benefit provided to consumers. The product is a metalworking fluid designed to kill microorganisms in metalworking fluids. The factor which has contributed to the poor results was brand recognition issues.
Private Branding - Rohm, the manufacturer, made a mistake by not allowing their distributors to continue utilizing their own brand name which have had publicity in the market, a loyal following and a stable foundation. By using "Kathon" as the new name of the new product, it brought hesitation to consumers because of the lack of familiarity and knowledge. Consumers are comfortable with the brands they have used in the past even though it does not meet their expectation..
Question: Plan of action and why?
Some plan of actions which I think will work:
1. Distributors want a private brand so I recommend private branding with a secondary line called "Kathon.
2. The manufacturing company that produces Kathon is concerned that the target consumer require a uniform package." So why doesn't the company create their own uniform packaging and let the distributors produce their own?