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Case
-
Reference no. 9-586-059
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); David May (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 15 April 1990
Length: 18 pages
Data source: Field research
Topics: Target markets; Packaging; Pricing; Pricing strategy; Marketing strategy
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Abstract

Signode Industries' packaging division manufactures steel and plastic strapping. In 1981 the company underwent the largest leveraged buyout in US corporate history. The case focuses on the packaging division's need to maintain high profitability in a declining market for steel strapping. Since 1974, Signode has been losing 1% per year of the steel strapping market. Since then, there has also been significant erosion of prices. The division president is faced with 1) decreasing price to increase market share, or 2) maintain/increase prices to increase cash flow. The specific decision revolves around the potential adoption of a price-flex system that is designed to authorize selective discounting by the division's sales personnel.
Location:
Illinois
Industries:
Iron & steel; Manufacturing
Size:
USD250 million sales
Other setting(s):
1982-1984
Teaching note
-
Reference no. 5-588-023
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1987
Version: 20 October 1987
Length: 28 pages
Data source: Field research
View full details
Case
-
Reference no. 9-502-S10
Spanish language
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); David May (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2003
Version: 15 April 1990
Length: 22 pages
Data source: Field research
Topics: Target markets; Packaging; Pricing; Pricing strategy; Marketing strategy
View full details
Compact case
Supplement
-
Reference no. 9-586-060
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 25 July 1989
Length: 2 pages
Data source: Field research
Topics: Marketing strategy; Packaging; Pricing; Pricing strategy; Target markets
View full details
Compact case
Supplement
-
Reference no. 9-586-061
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 25 July 1989
Length: 2 pages
Data source: Field research
Topics: Business policy; Marketing strategy; Packaging; Pricing; Pricing strategy; Target markets
View full details
Compact case
Supplement
-
Reference no. 9-586-062
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 25 July 1989
Length: 1 pages
Data source: Field research
Topics: Target markets; Packaging; Pricing; Pricing strategy
View full details

About

Abstract

Signode Industries' packaging division manufactures steel and plastic strapping. In 1981 the company underwent the largest leveraged buyout in US corporate history. The case focuses on the packaging division's need to maintain high profitability in a declining market for steel strapping. Since 1974, Signode has been losing 1% per year of the steel strapping market. Since then, there has also been significant erosion of prices. The division president is faced with 1) decreasing price to increase market share, or 2) maintain/increase prices to increase cash flow. The specific decision revolves around the potential adoption of a price-flex system that is designed to authorize selective discounting by the division's sales personnel.

Settings

Location:
Illinois
Industries:
Iron & steel; Manufacturing
Size:
USD250 million sales
Other setting(s):
1982-1984

Related

Teaching note
-
Reference no. 5-588-023
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1987
Version: 20 October 1987
Length: 28 pages
Data source: Field research
View full details
Case
-
Reference no. 9-502-S10
Spanish language
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); David May (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2003
Version: 15 April 1990
Length: 22 pages
Data source: Field research
Topics: Target markets; Packaging; Pricing; Pricing strategy; Marketing strategy
View full details
Compact case
Supplement
-
Reference no. 9-586-060
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 25 July 1989
Length: 2 pages
Data source: Field research
Topics: Marketing strategy; Packaging; Pricing; Pricing strategy; Target markets
View full details
Compact case
Supplement
-
Reference no. 9-586-061
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 25 July 1989
Length: 2 pages
Data source: Field research
Topics: Business policy; Marketing strategy; Packaging; Pricing; Pricing strategy; Target markets
View full details
Compact case
Supplement
-
Reference no. 9-586-062
Subject category: Marketing
Authors: Rowland T Moriarty Jr (Harvard Business School); Gordon Swartz (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1985
Version: 25 July 1989
Length: 1 pages
Data source: Field research
Topics: Target markets; Packaging; Pricing; Pricing strategy
View full details