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Advanced Material Technology Corp Ltd Case Study Solution
Advanced Material Technology Corp Ltd Case Study Help
Advanced Material Technology Corp Ltd Case Study Analysis
The following area concentrates on the of marketing for Advanced Material Technology Corp Ltd where the company's customers, competitors and core competencies have actually evaluated in order to justify whether the choice to release Case Study Help under Advanced Material Technology Corp Ltd brand name would be a practical alternative or not. We have firstly looked at the type of customers that Advanced Material Technology Corp Ltd deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Advanced Material Technology Corp Ltd name.
Both the groups utilize Advanced Material Technology Corp Ltd high efficiency adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Advanced Material Technology Corp Ltd compared to that of instant adhesives.
The overall market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have actually been identified earlier.If we look at a breakdown of Advanced Material Technology Corp Ltd prospective market or customer groups, we can see that the company offers to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair work and overhauling business (MRO) and manufacturers handling items made from leather, metal, wood and plastic. This variety in clients recommends that Advanced Material Technology Corp Ltd can target has different options in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the very same kind of item with respective modifications in need, quantity or packaging. The customer is not price delicate or brand name conscious so launching a low priced dispenser under Advanced Material Technology Corp Ltd name is not an advised choice.
Advanced Material Technology Corp Ltd is not just a manufacturer of adhesives however enjoys market leadership in the immediate adhesive market. The company has its own competent and competent sales force which adds worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core competences are not limited to adhesive manufacturing only as Advanced Material Technology Corp Ltd likewise focuses on making adhesive dispensing equipment to facilitate making use of its items. This dual production method provides Advanced Material Technology Corp Ltd an edge over rivals since none of the rivals of dispensing equipment makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the customer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Advanced Material Technology Corp Ltd, it is essential to highlight the company's weaknesses as well.
The business's sales staff is proficient in training distributors, the fact stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. It should also be noted that the suppliers are showing hesitation when it comes to offering equipment that needs servicing which increases the challenges of offering equipment under a specific brand name.
If we look at Advanced Material Technology Corp Ltd line of product in adhesive devices particularly, the company has items targeted at the luxury of the market. The possibility of sales cannibalization exists if Advanced Material Technology Corp Ltd offers Case Study Help under the very same portfolio. Offered the reality that Case Study Help is priced lower than Advanced Material Technology Corp Ltd high-end product line, sales cannibalization would absolutely be affecting Advanced Material Technology Corp Ltd sales revenue if the adhesive devices is sold under the business's brand.
We can see sales cannibalization affecting Advanced Material Technology Corp Ltd 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which might decrease Advanced Material Technology Corp Ltd income. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which provides us 2 additional reasons for not introducing a low priced item under the company's brand.
The competitive environment of Advanced Material Technology Corp Ltd would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the buyer has low knowledge about the item. While business like Advanced Material Technology Corp Ltd have actually managed to train suppliers relating to adhesives, the last customer depends on suppliers. Approximately 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by three players, it could be stated that the supplier delights in a greater bargaining power compared to the purchaser. However, the reality stays that the supplier does not have much influence over the buyer at this point specifically as the buyer does not show brand name acknowledgment or price level of sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a major control over the actual sales, this suggests that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the market allows ease of entry. However, if we look at Advanced Material Technology Corp Ltd in particular, the company has dual capabilities in regards to being a manufacturer of immediate adhesives and adhesive dispensers. Possible threats in devices giving industry are low which reveals the possibility of producing brand awareness in not just instantaneous adhesives however likewise in dispensing adhesives as none of the industry players has actually managed to position itself in double capabilities.
Hazard of Substitutes: The threat of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Advanced Material Technology Corp Ltd introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given numerous factors for not introducing Case Study Help under Advanced Material Technology Corp Ltd name, we have a suggested marketing mix for Case Study Help given listed below if Advanced Material Technology Corp Ltd chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development capacity of 10.1% which might be a great enough niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or through direct selling. This cost would not include the cost of the 'vari suggestion' or the 'glumetic pointer'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store requires to acquire the item on his own. This would increase the possibility of affecting mechanics to purchase the item for usage in their day-to-day upkeep jobs.
Advanced Material Technology Corp Ltd would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Advanced Material Technology Corp Ltd for introducing Case Study Help.
Place: A distribution design where Advanced Material Technology Corp Ltd straight sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Advanced Material Technology Corp Ltd. Considering that the sales team is already taken part in offering instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling process would be costly specifically as each sales call expenses approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable option.
Promotion: Although a low advertising budget should have been appointed to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is recommended for initially presenting the product in the market. The planned ads in magazines would be targeted at mechanics in lorry maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
