The following area concentrates on the of marketing for Adelphia Communications Corp where the company's customers, rivals and core competencies have examined in order to validate whether the decision to launch Case Study Help under Adelphia Communications Corp brand name would be a practical alternative or not. We have firstly taken a look at the type of customers that Adelphia Communications Corp handle while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Adelphia Communications Corp name.
Adelphia Communications Corp consumers can be segmented into 2 groups, final consumers and industrial customers. Both the groups use Adelphia Communications Corp high performance adhesives while the company is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of items that are being offered to these prospective markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the customers of immediate adhesives for this analysis given that the market for the latter has a lower potential for Adelphia Communications Corp compared to that of instant adhesives.
The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been identified earlier.If we take a look at a breakdown of Adelphia Communications Corp possible market or customer groups, we can see that the business offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair work and overhauling business (MRO) and producers dealing in items made of leather, metal, wood and plastic. This variety in clients suggests that Adelphia Communications Corp can target has various alternatives in terms of segmenting the marketplace for its new product especially as each of these groups would be needing the very same type of product with particular modifications in packaging, need or quantity. The client is not price delicate or brand name conscious so launching a low priced dispenser under Adelphia Communications Corp name is not a recommended option.
Adelphia Communications Corp is not simply a manufacturer of adhesives however enjoys market management in the instant adhesive market. The company has its own proficient and qualified sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Adelphia Communications Corp believes in special distribution as indicated by the fact that it has picked to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach via suppliers. The company's reach is not limited to North America just as it also takes pleasure in worldwide sales. With 1400 outlets spread out all throughout The United States and Canada, Adelphia Communications Corp has its internal production plants instead of using out-sourcing as the preferred strategy.
Core competences are not restricted to adhesive manufacturing only as Adelphia Communications Corp likewise concentrates on making adhesive giving devices to assist in making use of its items. This dual production technique provides Adelphia Communications Corp an edge over rivals because none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these rivals offers directly to the customer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Adelphia Communications Corp, it is crucial to highlight the company's weak points.
Although the business's sales personnel is proficient in training distributors, the fact stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it ought to likewise be kept in mind that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the obstacles of selling equipment under a particular brand.
If we take a look at Adelphia Communications Corp line of product in adhesive equipment particularly, the company has products aimed at the high end of the market. If Adelphia Communications Corp sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Adelphia Communications Corp high-end product line, sales cannibalization would definitely be affecting Adelphia Communications Corp sales profits if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization affecting Adelphia Communications Corp 27A Pencil Applicator which is priced at $275. There is another possible danger which could decrease Adelphia Communications Corp revenue if Case Study Help is launched under the company's brand name. The fact that $175000 has actually 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.
Additionally, if we look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which offers us 2 additional factors for not introducing a low priced item under the business's brand.
The competitive environment of Adelphia Communications Corp would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the purchaser has low knowledge about the item. While companies like Adelphia Communications Corp have managed to train suppliers relating to adhesives, the last customer depends on suppliers. Roughly 72% of sales are made straight by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by three players, it could be said that the provider takes pleasure in a greater bargaining power compared to the buyer. The reality stays that the provider does not have much influence over the purchaser at this point specifically as the buyer does not show brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the buyer and the producer do not have a significant control over the actual sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market indicates that the market allows ease of entry. If we look at Adelphia Communications Corp in particular, the company has dual abilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Potential risks in devices dispensing market are low which shows the possibility of developing brand awareness in not just instant adhesives however likewise in giving adhesives as none of the market gamers has actually handled to place itself in double capabilities.
Risk of Substitutes: The hazard of alternatives in the immediate adhesive market is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Adelphia Communications Corp introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous reasons for not introducing Case Study Help under Adelphia Communications Corp name, we have actually a suggested marketing mix for Case Study Help offered below if Adelphia Communications Corp chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of reasons. This market has an additional development capacity of 10.1% which may be a good sufficient niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This price would not include the expense of the 'vari pointer' or the 'glumetic tip'. A cost below $250 would not require approvals from the senior management in case a mechanic at an automobile upkeep store needs to purchase the product on his own. This would increase the possibility of influencing mechanics to purchase the product for use in their everyday upkeep jobs.
Adelphia Communications Corp would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net profitability for Adelphia Communications Corp for introducing Case Study Help.
Place: A distribution model where Adelphia Communications Corp directly sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Adelphia Communications Corp. Since the sales team is already participated in selling immediate adhesives and they do not have expertise in selling dispensers, involving them in the selling process would be costly specifically as each sales call costs around $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: A low advertising budget should have been assigned to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested marketing plan costing $51816 is suggested for initially introducing the item in the market. The prepared advertisements in publications would be targeted at mechanics in car upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).