Yuji Higuchi, Kazuhiro Nishimoto, Takeshi Mise, Eiji Takenaka, Markus Hartmann
Papers # 2014 Chicago
This study explores the Japanese market for polyamide 12 (PA12) pipes in terms of new product market success. To gain the market penetration, there are various entry barriers for the new product in the new market field which has big distance between current marketing areas and target country. In spite of becoming globally flatter, it still remains many considerations in not only market opportunities but also different sensitivities to a new product. Therefore, this case study addresses three major questions:
- Market analysis including long-term and short-term market opportunities for PA12 pipes
- Technical analysis to highlight additional requirements in order to install PA12 pipes in Japan
- Country analysis to measure the relationship among cultural, administrative, geographical, and economical distance.
This study can provide broad perspectives and acute insight into a new product marketing as well as global strategy.
PA12 is a type of nylon specifically developed for energy-efficient gas and oil pipelines. These pipes are superior to PE pipes in their resistance to mechanical stressors such as creep and scratches, and are also more effective gas barriers. PA12 pipes comply with ISO, ASTM, and technical standards in other countries, and have been successfully introduced in Germany, the U.S., and Brazil. In spite of many options to find potential markets for PA12 pipes, we attempted to consider the possibility in Japanese market where gas pipeline products have developed into the world’s leading safety technologies and the market has become mature due to the competitiveness of Japanese companies. In this paper, we examined whether this high performance PA12 meets the needs of the Japanese market from the three perspectives of (a) market analysis, (b) technical analysis, and (c) country analysis. This case study would be useful for product marketers to find opportunities and feasibility of overseas expansion.