The following section focuses on the of marketing for Accuflow Inc where the company's customers, competitors and core proficiencies have assessed in order to justify whether the decision to release Case Study Help under Accuflow Inc brand name would be a practical choice or not. We have first of all looked at the type of consumers that Accuflow Inc deals in while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Accuflow Inc name.
Accuflow Inc customers can be segmented into two groups, last consumers and commercial consumers. Both the groups use Accuflow Inc high performance adhesives while the company is not only involved in the production of these adhesives but also markets them to these customer groups. There are 2 kinds of items that are being offered to these possible markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of immediate adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Accuflow Inc compared to that of immediate adhesives.
The total market for instant adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Accuflow Inc potential market or customer groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair and overhauling companies (MRO) and manufacturers handling items made of leather, metal, plastic and wood. This variety in consumers suggests that Accuflow Inc can target has various alternatives in terms of segmenting the market for its brand-new product particularly as each of these groups would be requiring the same kind of item with particular modifications in demand, product packaging or amount. However, the client is not cost delicate or brand conscious so launching a low priced dispenser under Accuflow Inc name is not an advised choice.
Accuflow Inc is not simply a manufacturer of adhesives however takes pleasure in market management in the immediate adhesive market. The company has its own competent and competent sales force which includes value to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.
Core skills are not restricted to adhesive manufacturing just as Accuflow Inc also focuses on making adhesive dispensing equipment to help with using its products. This double production strategy offers Accuflow Inc an edge over rivals given that none of the rivals of giving equipment makes immediate adhesives. In addition, none of these rivals sells straight to the consumer either and uses suppliers for connecting to customers. While we are looking at the strengths of Accuflow Inc, it is crucial to highlight the business's weaknesses.
The business's sales staff is knowledgeable in training suppliers, the fact remains that the sales group is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It ought to also be kept in mind that the distributors are revealing unwillingness when it comes to offering devices that needs servicing which increases the difficulties of offering devices under a specific brand name.
If we look at Accuflow Inc product line in adhesive devices particularly, the company has actually products targeted at the luxury of the marketplace. If Accuflow Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Accuflow Inc high-end line of product, sales cannibalization would definitely be impacting Accuflow Inc sales profits if the adhesive equipment is sold under the business's trademark name.
We can see sales cannibalization impacting Accuflow Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Accuflow Inc earnings if Case Study Help is released under the business's brand name. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for introducing 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 name orientation or rate consciousness which provides us 2 extra factors for not releasing a low priced product under the company's brand name.
The competitive environment of Accuflow Inc would be studied through Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the item. While companies like Accuflow Inc have handled to train distributors concerning adhesives, the final customer depends on suppliers. Approximately 72% of sales are made straight by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by 3 gamers, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. The reality stays that the provider does not have much impact over the purchaser at this point particularly as the purchaser does not reveal brand name acknowledgment or cost sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market indicates that the market allows ease of entry. However, if we look at Accuflow Inc in particular, the company has dual abilities in regards to being a producer of instant adhesives and adhesive dispensers. Potential risks in devices giving market are low which reveals the possibility of creating brand name awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry players has actually managed to position itself in double capabilities.
Danger of Substitutes: The hazard of substitutes in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Accuflow Inc presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered different factors for not releasing Case Study Help under Accuflow Inc name, we have actually a recommended marketing mix for Case Study Help offered below if Accuflow Inc decides to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. There are presently 89257 facilities in this sector and a high use of approximately 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which may be a good enough specific niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The product would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wants to choose either of the two devices or not.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep store requires to purchase the item on his own.
Accuflow Inc would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Accuflow Inc for launching Case Study Help.
Place: A distribution model where Accuflow Inc straight sends out the item to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be used by Accuflow Inc. Given that the sales team is already participated in offering instant adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be expensive especially as each sales call expenses approximately $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low marketing spending plan ought to have been assigned to Case Study Help but the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising strategy costing $51816 is recommended for at first presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in car maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).