1.0 INTRODUCTION Sealed Air Corporation is committed to achieving market leadership through technological innovation. Ten years ago, the company was the first to market a highly successful coated bubble wrap protection product, AirCap. However, market trends indicate a rapid replacement of coated bubbles with a technologically inferior but inexpensive uncoated product. Growing demand for uncoated bubbles poses a direct threat to the long-term viability of the technologically superior and premium-priced AirCap. Therefore Sealed Air finds itself in a critical position. It can continue to focus exclusively on producing high-end coated bubbles emphasizing performance over price, or segment the market by introducing a lower-quality, cheaper uncoated bubble. To this end, this report will analyze the industry, competition and company's internal environment to evaluate the feasibility of targeting this low-end market segment. A strategic marketing plan for the launch of an uncoated product will follow. 2.0 ANALYSIS OF THE SITUATION 2.1 Analysis of the sector --- growing market. The protective packaging industry can be segmented into three ways based on usage: positioning, blocking and reinforcement; flexible casings; and filling voids. Coated (e.g. AirCap) and uncoated bubble wrap products serve the flexible wrap and void filling markets (refer to Glossary). The flexible packaging market, which far outpaces gap filling as measured by annual sales, is of primary concern to Sealed Air and will therefore form the focus of this report. Protective packaging is sold to organizational customers through selected distributor networks through personal selling. Sales commissions for AirCap are set at 2%. Often manufacturers must have a regional presence to be successful… middle of the paper… at 4% net to reflect the lowest retail price. This will provide commissions equal to AirCap. In particular, promotions should target consumers who use paper and foam products. The use of the company's highly trained sales staff and the associated benefits and long-term cost savings afforded by a higher quality bubble product should be emphasized. Additional promotional efforts should include sending direct mail to potential customers in the United States and Europe. It is important to emphasize that all promotional efforts must be aimed at packaging engineers. 6.0 CONCLUSION Obvious market trends cannot be ignored. Sealed Air must enter the uncoated market to maintain its leadership position. Using a frontal attack, it can achieve its goal and minimize associated problems by differentiating its product, leveraging its international ties, lowering prices, and improving its promotional efforts..