This is a case intended for illustrating some key issues with respect to segmentation, targeting & positioning in developing new industrial markets. Focus on the marketing program.

Case Synopsis In a diversification move, Harper Chemical acquired a Dominite mine. Refined Dominite had a potentially large market as a replacement for talc in making ceramic tile; it could also be used as an extender pigment or filler in making paints. After five years of attempting to develop markets for Dominite, however, Harper's Special Products Department has accumulated a $7.5 million before-tax loss on the new venture. In the meantime, the company has received an unsolicited offer from a tile manufacturer to buy the Dominite operation. Harper's management, then, is faced with a decision as to whether it should sell and, if so, at what price. If the decision is not to sell, then it becomes important to formulate a strategy that will quickly bring the Dominite business into the black.

Discussion Questions 1. Fill out the worksheet below by enumerating main direct vs. indirect benefits and easy-to- quantify vs. hard-to-quantify of adopting Dominite by tile manufactures.

Benefits for tile manufactures Direct Indirect Easy-to-quantify Hard-to-quantify

2. Fill out the worksheet below by enumerating main direct vs. indirect benefits and easy-to- quantify vs. hard-to-quantify of adopting Dominite by paint manufactures.

Benefits for paint manufactures Direct Indirect Easy-to-quantify Hard-to-quantify

3. Fill out the worksheet below by summarizing the benefits and the deterrents of adopting Dominite by tile and paint manufactures.

- Tile manufacturers Paint manufacturers Benefits of adopting Dominite Deterrents of adopting Dominite

REFERENCE ARTICLE:

Harvard Business School 9-590-027 Rev. December 15, 1998 Professor E. Raymond Corey prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright 1989 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part