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Katoen Natie Ktn Enters Asia Case Study Help Checklist

Katoen Natie Ktn Enters Asia Case Study Help Checklist

Katoen Natie Ktn Enters Asia Case Study Solution
Katoen Natie Ktn Enters Asia Case Study Help
Katoen Natie Ktn Enters Asia Case Study Analysis



3 C Analyses for Evaluating Katoen Natie Ktn Enters Asia decision to launch Case Study Solution


The following area focuses on the 3Cs of marketing for Katoen Natie Ktn Enters Asia where the company's clients, rivals and core competencies have actually evaluated in order to validate whether the choice to introduce Case Study Help under Katoen Natie Ktn Enters Asia brand would be a possible alternative or not. We have first of all looked at the kind of consumers that Katoen Natie Ktn Enters Asia deals in while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Katoen Natie Ktn Enters Asia name.
Katoen Natie Ktn Enters Asia Case Study Solution

Customer Analysis

Both the groups use Katoen Natie Ktn Enters Asia high efficiency adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these customer groups. We would be focusing on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Katoen Natie Ktn Enters Asia compared to that of instantaneous adhesives.

The overall market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been recognized earlier.If we look at a breakdown of Katoen Natie Ktn Enters Asia prospective market or customer groups, we can see that the company sells to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair and revamping companies (MRO) and producers dealing in products made of leather, metal, wood and plastic. This variety in customers suggests that Katoen Natie Ktn Enters Asia can target has various alternatives in terms of segmenting the market for its new product especially as each of these groups would be requiring the exact same type of item with respective modifications in demand, quantity or packaging. The customer is not price delicate or brand name mindful so releasing a low priced dispenser under Katoen Natie Ktn Enters Asia name is not an advised choice.

Company Analysis

Katoen Natie Ktn Enters Asia is not just a maker of adhesives but delights in market leadership in the immediate adhesive industry. The company has its own skilled and certified sales force which includes worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core competences are not limited to adhesive manufacturing just as Katoen Natie Ktn Enters Asia likewise focuses on making adhesive giving devices to help with using its items. This double production strategy provides Katoen Natie Ktn Enters Asia an edge over competitors given that none of the competitors of dispensing equipment makes instantaneous adhesives. In addition, none of these rivals sells straight to the consumer either and uses distributors for reaching out to clients. While we are taking a look at the strengths of Katoen Natie Ktn Enters Asia, it is important to highlight the company's weaknesses too.

The business's sales personnel is proficient in training distributors, the truth remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it needs to also be noted that the distributors are showing reluctance when it concerns offering equipment that requires servicing which increases the difficulties of offering devices under a particular trademark name.

If we take a look at Katoen Natie Ktn Enters Asia line of product in adhesive equipment particularly, the company has actually products focused on the luxury of the market. The possibility of sales cannibalization exists if Katoen Natie Ktn Enters Asia offers Case Study Help under the exact same portfolio. Offered the truth that Case Study Help is priced lower than Katoen Natie Ktn Enters Asia high-end product line, sales cannibalization would absolutely be impacting Katoen Natie Ktn Enters Asia sales revenue if the adhesive devices is offered under the business's trademark name.

We can see sales cannibalization affecting Katoen Natie Ktn Enters Asia 27A Pencil Applicator which is priced at $275. There is another possible risk which could reduce Katoen Natie Ktn Enters Asia revenue if Case Study Help is released under the business's brand name. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

In addition, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or price consciousness which offers us two additional reasons for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Katoen Natie Ktn Enters Asia would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the existence of fragmented sectors with Katoen Natie Ktn Enters Asia taking pleasure in leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While market rivalry in between these gamers could be called 'intense' as the consumer is not brand name mindful and each of these players has prominence in terms of market share, the truth still stays that the market is not filled and still has a number of market sectors which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the reality that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the market for immediate adhesives uses development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the purchaser has low knowledge about the item. While business like Katoen Natie Ktn Enters Asia have managed to train distributors concerning adhesives, the final customer depends on distributors. Roughly 72% of sales are made straight by producers and suppliers for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by three players, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. Nevertheless, the reality stays that the supplier does not have much influence over the purchaser at this moment especially as the purchaser does not show brand acknowledgment or rate sensitivity. This suggests that the distributor has the higher power when it comes to the adhesive market while the buyer and the producer do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market indicates that the marketplace allows ease of entry. Nevertheless, if we take a look at Katoen Natie Ktn Enters Asia in particular, the business has double abilities in terms of being a maker of instant adhesives and adhesive dispensers. Possible threats in equipment dispensing industry are low which shows the possibility of producing brand name awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the market players has managed to place itself in dual abilities.

Hazard of Substitutes: The risk of alternatives in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Katoen Natie Ktn Enters Asia presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).


4 P Analysis: A suggested Marketing Mix for Case Study Help

Katoen Natie Ktn Enters Asia Case Study Help


Despite the fact that our 3C analysis has actually given numerous reasons for not launching Case Study Help under Katoen Natie Ktn Enters Asia name, we have actually a suggested marketing mix for Case Study Help provided listed below if Katoen Natie Ktn Enters Asia decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra growth capacity of 10.1% which might be a good adequate specific niche market section for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor automobile upkeep store needs to acquire the item on his own.

Katoen Natie Ktn Enters Asia would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Katoen Natie Ktn Enters Asia for launching Case Study Help.

Place: A distribution model where Katoen Natie Ktn Enters Asia directly sends out the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Katoen Natie Ktn Enters Asia. Considering that the sales group is already taken part in selling instant adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be expensive especially as each sales call costs roughly $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a favorable option.

Promotion: Although a low advertising budget should have been assigned to Case Study Help however the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing strategy costing $51816 is suggested for at first presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in automobile maintenance shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Katoen Natie Ktn Enters Asia Case Study Analysis

A suggested plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the reality still stays that the product would not complement Katoen Natie Ktn Enters Asia product line. We take a look at appendix 2, we can see how the overall gross success for the two models is anticipated to be around $49377 if 250 systems of each design are manufactured each year according to the strategy. However, the preliminary planned marketing is approximately $52000 per year which would be putting a strain on the company's resources leaving Katoen Natie Ktn Enters Asia with a negative net income if the expenditures are assigned to Case Study Help just.

The reality that Katoen Natie Ktn Enters Asia has actually currently sustained a preliminary investment of $48000 in the form of capital cost and model development indicates that the revenue from Case Study Help is inadequate to undertake the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a more suitable alternative specifically of it is impacting the sale of the company's profits generating designs.



Executive Summary Porters Five Forces Analysis Pestel Analysis Financial Analysis
Generic Strategy Vrine Analysis