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Accuflow Inc Case Study Solution
Accuflow Inc Case Study Help
Accuflow Inc Case Study Analysis
The following area focuses on the of marketing for Accuflow Inc where the business's clients, rivals and core proficiencies have actually assessed in order to justify whether the choice to release Case Study Help under Accuflow Inc brand would be a practical alternative or not. We have actually first of all looked at the type of customers that Accuflow Inc handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Accuflow Inc name.
Accuflow Inc consumers can be segmented into two groups, commercial customers and last customers. Both the groups use Accuflow Inc high performance adhesives while the business is not only involved in the production of these adhesives but also markets them to these consumer groups. There are two kinds of items that are being offered to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of immediate adhesives for this analysis given that the market for the latter has a lower potential for Accuflow Inc compared to that of instantaneous adhesives.
The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Accuflow Inc prospective market or client groups, we can see that the company offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself customers, repair work and revamping business (MRO) and makers dealing in products made from leather, wood, metal and plastic. This diversity in clients recommends that Accuflow Inc can target has various alternatives in regards to segmenting the market for its new product specifically as each of these groups would be needing the same kind of item with particular changes in packaging, need or amount. Nevertheless, the consumer is not cost sensitive or brand name mindful so introducing a low priced dispenser under Accuflow Inc name is not a recommended choice.
Accuflow Inc is not just a producer of adhesives but takes pleasure in market management in the instant adhesive market. The business has its own skilled and competent sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Accuflow Inc believes in unique distribution as indicated by the reality that it has picked to sell through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach via suppliers. The company's reach is not limited to North America just as it likewise takes pleasure in worldwide sales. With 1400 outlets spread all throughout The United States and Canada, Accuflow Inc has its in-house production plants rather than using out-sourcing as the preferred method.
Core skills are not limited to adhesive manufacturing just as Accuflow Inc likewise specializes in making adhesive dispensing devices to facilitate making use of its products. This dual production technique provides Accuflow Inc an edge over competitors given that none of the rivals of dispensing equipment makes immediate adhesives. In addition, none of these rivals sells straight to the customer either and makes use of suppliers for reaching out to clients. While we are looking at the strengths of Accuflow Inc, it is crucial to highlight the company's weaknesses.
The company's sales staff is knowledgeable in training distributors, the reality stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it should also be kept in mind that the suppliers are showing hesitation when it comes to selling devices that requires servicing which increases the obstacles of offering devices under a specific brand.
The company has actually products intended at the high end of the market if we look at Accuflow Inc item line in adhesive equipment particularly. If Accuflow Inc offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Accuflow Inc high-end product line, sales cannibalization would absolutely be impacting Accuflow Inc sales income if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization affecting Accuflow Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible threat which could decrease Accuflow Inc revenue. The truth that $175000 has been spent 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 instant adhesive.
Furthermore, if we look at the market in general, the adhesives market does not show brand orientation or rate consciousness which provides us 2 extra reasons for not introducing a low priced item under the company's trademark name.
The competitive environment of Accuflow Inc would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low specifically as the purchaser has low knowledge about the product. While companies like Accuflow Inc have actually managed to train distributors regarding adhesives, the final consumer is dependent on suppliers. Roughly 72% of sales are made straight by producers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three gamers, it could be stated that the provider enjoys a greater bargaining power compared to the buyer. The fact remains that the supplier does not have much influence over the buyer at this point specifically as the buyer does not reveal brand recognition or cost level of sensitivity. This indicates that the supplier has the higher power when it comes to the adhesive market while the producer and the buyer do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the market permits ease of entry. Nevertheless, if we look at Accuflow Inc in particular, the company has double abilities in terms of being a producer of adhesive dispensers and instant adhesives. Possible threats in devices dispensing industry are low which reveals the possibility of developing brand name awareness in not just instant adhesives however likewise in dispensing adhesives as none of the industry gamers has actually handled to position itself in dual capabilities.
Danger of Substitutes: The threat of alternatives in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact stays that if Accuflow Inc presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given various factors for not introducing Case Study Help under Accuflow Inc name, we have a recommended marketing mix for Case Study Help given listed below if Accuflow Inc chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an additional development capacity of 10.1% which might be a good enough niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact 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 suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the product on his own.
Accuflow Inc would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net profitability for Accuflow Inc for launching Case Study Help.
Place: A circulation model where Accuflow Inc directly sends the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Accuflow Inc. Since the sales team is currently participated in selling instantaneous adhesives and they do not have knowledge in selling dispensers, including them in the selling procedure would be costly particularly as each sales call costs approximately $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: A low promotional budget needs to have been designated to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is advised for at first introducing the item in the market. The planned ads in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
