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Advanced Technologies Inc Case Study Solution
Advanced Technologies Inc Case Study Help
Advanced Technologies Inc Case Study Analysis
The following section concentrates on the of marketing for Advanced Technologies Inc where the business's clients, competitors and core competencies have assessed in order to validate whether the choice to launch Case Study Help under Advanced Technologies Inc brand would be a feasible choice or not. We have first of all looked at the type of consumers that Advanced Technologies Inc 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 justification for not launching Case Study Help under Advanced Technologies Inc name.
Advanced Technologies Inc consumers can be segmented into 2 groups, final customers and commercial consumers. Both the groups utilize Advanced Technologies Inc high performance adhesives while the business is not only associated with the production of these adhesives but also markets them to these consumer groups. There are 2 kinds of items that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Advanced Technologies Inc compared to that of immediate adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have been determined earlier.If we look at a breakdown of Advanced Technologies Inc prospective market or customer groups, we can see that the business sells to OEMs (Original Devices Manufacturers), Do-it-Yourself clients, repair and upgrading business (MRO) and manufacturers handling products made from leather, metal, plastic and wood. This variety in customers recommends that Advanced Technologies Inc can target has various alternatives in terms of segmenting the market for its brand-new item particularly as each of these groups would be requiring the very same kind of product with particular changes in product packaging, need or amount. Nevertheless, the consumer is not price delicate or brand name mindful so launching a low priced dispenser under Advanced Technologies Inc name is not a suggested option.
Advanced Technologies Inc is not simply a maker of adhesives but takes pleasure in market leadership in the instantaneous adhesive market. The business has its own competent and certified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Advanced Technologies Inc believes in unique distribution as suggested by the fact that it has selected to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach by means of suppliers. The business's reach is not restricted to The United States and Canada just as it also delights in worldwide sales. With 1400 outlets spread all throughout The United States and Canada, Advanced Technologies Inc has its internal production plants instead of utilizing out-sourcing as the preferred strategy.
Core skills are not restricted to adhesive manufacturing only as Advanced Technologies Inc likewise concentrates on making adhesive giving devices to help with making use of its items. This dual production strategy provides Advanced Technologies Inc an edge over rivals given that none of the rivals of giving equipment makes immediate adhesives. Furthermore, none of these rivals sells straight to the customer either and uses suppliers for reaching out to clients. While we are looking at the strengths of Advanced Technologies Inc, it is crucial to highlight the business's weak points.
Although the business's sales personnel is knowledgeable in training distributors, the reality remains that the sales team 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 kept in mind that the distributors are revealing unwillingness when it comes to offering devices that needs servicing which increases the challenges of offering equipment under a particular brand name.
The business has actually items aimed at the high end of the market if we look at Advanced Technologies Inc product line in adhesive equipment particularly. If Advanced Technologies Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Advanced Technologies Inc high-end product line, sales cannibalization would definitely be impacting Advanced Technologies Inc sales earnings if the adhesive equipment is sold under the company's trademark name.
We can see sales cannibalization impacting Advanced Technologies Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible threat which could decrease Advanced Technologies Inc income. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good 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 instant adhesive.
Additionally, if we look at the market in general, the adhesives market does not show brand name orientation or rate consciousness which gives us two additional reasons for not releasing a low priced item under the business's brand.
The competitive environment of Advanced Technologies Inc 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 purchaser in this market is low especially as the purchaser has low knowledge about the item. While business like Advanced Technologies Inc have handled to train distributors relating to adhesives, the final customer depends on distributors. Around 72% of sales are made directly by makers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three players, it could be stated that the provider delights in a greater bargaining power compared to the buyer. The truth stays that the provider does not have much influence over the buyer at this point particularly as the purchaser does not show brand acknowledgment or price sensitivity. This shows that the supplier has the higher power when it concerns the adhesive market while the maker and the buyer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market suggests that the market enables ease of entry. However, if we look at Advanced Technologies Inc in particular, the business has double capabilities in regards to being a producer of immediate adhesives and adhesive dispensers. Potential hazards in devices dispensing industry are low which reveals the possibility of creating brand awareness in not just immediate adhesives however also in dispensing adhesives as none of the industry players has actually handled to place itself in double abilities.
Risk of Substitutes: The threat of replacements in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Advanced Technologies 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 given numerous reasons for not releasing Case Study Help under Advanced Technologies Inc name, we have actually a recommended marketing mix for Case Study Help given below if Advanced Technologies Inc chooses to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional growth potential of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This price would not include the cost of the 'vari tip' or the 'glumetic pointer'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop needs to purchase the product on his own. This would increase the possibility of influencing mechanics to buy the item for use in their day-to-day maintenance jobs.
Advanced Technologies Inc would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Advanced Technologies Inc for introducing Case Study Help.
Place: A circulation design where Advanced Technologies Inc straight sends the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Advanced Technologies Inc. Since the sales team is currently participated in selling immediate adhesives and they do not have competence in selling dispensers, involving them in the selling procedure would be expensive specifically as each sales call expenses roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable option.
Promotion: A low advertising budget needs to have been assigned to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended marketing strategy costing $51816 is suggested for at first presenting the item in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
