Peak Sealing Technologies

Business Marketing
Group-9

Submitted By:
Submitted To:

Shravan L 17036
Dr R.Sugant
Professor Marketing Monish S 17069
Sumegh S 17100

Mayur Hegde K 17118

Sourav Pattanaik 17137

Date: 24/09/2018

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 1) What are the different product lines/ SBUs does the company have?

PST was the market leader in the adhesive industry and their product lines were carton
sealing and industrial tapes, specialized adhesives, other packaging products and
complementary packaging systems and solutions.

Product:

K2 tape which was the PSTs brand name for its pressure sensitive carton sealing
tapeline. K2 product line consisted of nine pressure sensitive carton-sealing tapes they
were GP-48, LD-48, RD-48, HD-48, RD-72, HD-72, RDS-72, HDS-72 and SD-72.

2) What are the segments the company addresses?

The PST items are large utilized in bundling and assembling applications. The
organization did division in light of item compose and the end client advertise.

The segments PST addressed based on the end-user type were,

 Packaging: Demand was driven by volume packaging and represented a mature

market segment.
 Manufacturing and Assembly: They had a moderate growth addressed to
motor vehicles, aerospace equipment, electrical and electronic equipment,
furniture and machinery.
 Construction: This segment was fast growing as the demand was for adhesives.
 Consumer/other: Adhesives for home use as well as crafts

3) Map the different product lines/ SBUs of PST onto BCG Matrix and GE-McKinsey 9
Box matrix clearly justifying why you have slotted the product line/ SBU in a particular
box.

GE-MCKINSEY 9 BOX MATRIX FOR PEAK SEALING TECHNOLOGIES:

 It identifies the optimum business portfolio in such way that one that fits perfectly
to the company’s strengths and try to help it to explore the most attractive industry
sectors or markets.
 It is a nine-box matrix. (3 by 3) matrix

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  A strategy tool offers a systematic approach for the multi business corporation to
prioritize its investments among its business units.
 A framework evaluates business portfolio, provides further strategic implications
and helps to prioritize the investment needed for each business unit.
 Industry attractiveness consists of many factors that collectively determine the
competition level in it. Each axis is divided into Low, Medium and High, giving the
nine-cell matrix as depicted below.
 It identifies the strategic steps the company needs to make to improve the
performance of its business portfolio.
Subdivision:

It was further segregated in subdivision i.e. Grow, Hold, and Harvest

 Grow – In this Business, the units are fall under grow attract high investment. Huge
cash is generated in this phase. Firms may go for product differentiation or Cost
leadership. In this phase, Market leaders exist.
 Hold – In this Business, the units are fall under hold phase attract moderate
investment. Market segmentation, Market penetration, imitation strategies are
adopted in this phase. In this phase, Followers are exist.
 Harvest - In this Business, the units are fall under this phase are unattractive. In
this phase, Strategies like divestment, Diversification, mergers are adopted. Low
priority is given in these business units.

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 Business Strength

HIGH MEDIUM LOW

Packaging Systems
Construction
Market Attractiveness

K2-Tape (GP-48,
(Adhesives)
HIGH

RD-72)

Packaging, Consumer
& Others,
K2-Tape (HD-48,
Manufacturing &
MEDIUM

RDS-72)
Assembly
(Adhesives)

K2-Tape (LD-48,
K2-Tape (SD-72)
LOW

HDS-72)

 The company has offered different product lines and various products, which has been
segregated in this matrix based on sales, future demand (forecast) and margins received
by the company.
BCG Matrix for Peak Sealing Technologies: -
1. The market growth rate was taken from the Adhesives and sealants demand by market data
with the following: - (assumptions):
A. GP-48, LD-48- Used for consumer/other sectors
B. RD-48&RD-72-Used for Packaging sector
C. HD-48 & hD-72-Used for Manufacturing and assembly sector
D. RDS-72, HDS-72 & SD-72-Used for construction sector

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 BCG Matrix for Peak Sealing Technologies:

1. SD-72, HD-72 and HD-48 lies in the region of question mark because their Relative market
share is less compared to the market growth
2. GP-48 is nearing to the region of dogs as the have a market growth rate with CAGR of
1.1% and relative market share of 12,929.
3. HDS-72 lies between star and question mark because their relative market share is very low
compared to market growth rate.
4. RDS-72 lies in the region with high market growth rate and high market share where the
relative market share is 31,683 and the market growth rate is with a CAGR of 6.1%.
5. RD-48, LD-48, RD-72 lies in the region of cash cows as they are generating cash to the
company with their market share.

BCG MATRIX FOR PEAK SEALING TECHNOLOGIES

HIGH SD-72
RDS-72
HDS-72
STARS QUESTION

HD-72

GROWTH RATE HD-48

RD-48 RD-72

LD-48
GP-48
CASH COWS
DOG
LOW S

HIGH RELATIVE MARKET LOW

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