Advanced Technologies Inc Case Study Help Checklist

Advanced Technologies Inc Case Study Help Checklist

Advanced Technologies Inc Case Study Solution
Advanced Technologies Inc Case Study Help
Advanced Technologies Inc Case Study Analysis

Analyses for Evaluating Advanced Technologies Inc decision to launch Case Study Solution

The following section focuses on the of marketing for Advanced Technologies Inc where the company's consumers, competitors and core competencies have actually evaluated in order to validate whether the choice to launch Case Study Help under Advanced Technologies Inc brand name would be a feasible choice or not. We have to start with taken a look at the type of consumers that Advanced Technologies Inc deals in while an evaluation 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 Advanced Technologies Inc name.
Advanced Technologies Inc Case Study Solution

Customer Analysis

Advanced Technologies Inc consumers can be segmented into two groups, industrial consumers and final customers. Both the groups utilize Advanced Technologies Inc high performance adhesives while the company is not just associated with the production of these adhesives however also markets them to these consumer groups. There are two kinds of items that are being sold to these potential markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower potential for Advanced Technologies Inc compared to that of instantaneous adhesives.

The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Advanced Technologies Inc prospective market or customer groups, we can see that the company sells to OEMs (Initial Equipment Makers), Do-it-Yourself clients, repair work and revamping companies (MRO) and manufacturers handling products made of leather, plastic, metal and wood. This variety in clients recommends that Advanced Technologies Inc can target has different alternatives in terms of segmenting the market for its brand-new item particularly as each of these groups would be needing the exact same kind of item with respective modifications in demand, quantity or packaging. The consumer is not price sensitive or brand mindful so launching a low priced dispenser under Advanced Technologies Inc name is not a suggested alternative.

Company Analysis

Advanced Technologies Inc is not just a producer of adhesives however takes pleasure in market management in the immediate adhesive market. The company has its own experienced and certified sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Advanced Technologies Inc believes in special distribution as indicated by the fact that it has actually chosen to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for expanding reach through suppliers. The company's reach is not restricted to The United States and Canada only as it likewise enjoys worldwide sales. With 1400 outlets spread out all throughout North America, Advanced Technologies Inc has its in-house production plants instead of utilizing out-sourcing as the preferred method.

Core skills are not restricted to adhesive production just as Advanced Technologies Inc likewise specializes in making adhesive dispensing devices to assist in making use of its items. This dual production strategy gives Advanced Technologies Inc an edge over rivals because none of the rivals of giving devices makes instant adhesives. Additionally, none of these rivals sells straight to the consumer either and uses distributors for reaching out to consumers. While we are taking a look at the strengths of Advanced Technologies Inc, it is necessary to highlight the company's weaknesses as well.

The company's sales staff is experienced in training suppliers, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. Nevertheless, it needs to also be noted that the distributors are showing reluctance when it pertains to offering devices that requires maintenance which increases the obstacles of selling equipment under a particular brand name.

If we take a look at Advanced Technologies Inc line of product in adhesive equipment particularly, the company has items targeted at the high end of the market. The possibility of sales cannibalization exists if Advanced Technologies Inc offers Case Study Help under the same portfolio. Provided the truth 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 revenue if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization affecting 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 profits. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a great 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 instant adhesive.

In addition, if we look at the market in general, the adhesives market does not show brand name orientation or price consciousness which gives us 2 additional reasons for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Advanced Technologies Inc would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the presence of fragmented sections with Advanced Technologies Inc enjoying management and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While market competition in between these gamers could be called 'extreme' as the consumer is not brand name conscious and each of these players has prominence in terms of market share, the truth still stays that the industry is not filled and still has a number of market segments which can be targeted as potential specific niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization may be leading to market competition in the adhesive dispenser market while the market for instantaneous adhesives offers growth potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the buyer has low understanding about the product. While companies like Advanced Technologies Inc have managed to train suppliers regarding adhesives, the last customer depends on suppliers. Approximately 72% of sales are made straight by manufacturers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by three players, it could be said that the provider delights in a higher bargaining power compared to the purchaser. Nevertheless, the fact remains that the supplier does not have much impact over the purchaser at this moment particularly as the purchaser does disappoint brand recognition or cost level of sensitivity. This suggests that the supplier has the greater power when it pertains to the adhesive market while the producer and the purchaser 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 instantaneous adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we look at Advanced Technologies Inc in particular, the company has double capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective threats in devices dispensing industry are low which reveals the possibility of producing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the industry players has actually managed to position itself in double abilities.

Threat of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality remains that if Advanced Technologies Inc presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Advanced Technologies Inc Case Study Help

Despite the fact that our 3C analysis has provided different factors for not launching Case Study Help under Advanced Technologies Inc name, we have a recommended marketing mix for Case Study Help provided below if Advanced Technologies Inc chooses to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of factors. This market has an extra development capacity of 10.1% which might be an excellent sufficient specific niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact that the Diy market can also be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.

Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to buy the product on his own.

Advanced Technologies Inc would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Advanced Technologies Inc for releasing Case Study Help.

Place: A distribution design where Advanced Technologies Inc straight sends out the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Advanced Technologies Inc. Since the sales team is already engaged in offering instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be pricey particularly as each sales call costs roughly $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: A low marketing budget plan should 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 sustained for production, the recommended advertising plan costing $51816 is recommended for at first introducing the product in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Advanced Technologies Inc Case Study Analysis

A recommended strategy of action in the form of a marketing mix has actually been discussed for Case Study Help, the fact still remains that the item would not match Advanced Technologies Inc item line. We have a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be roughly $49377 if 250 systems of each design are manufactured annually according to the strategy. The initial planned marketing is roughly $52000 per year which would be putting a pressure on the company's resources leaving Advanced Technologies Inc with a negative net earnings if the expenditures are assigned to Case Study Help only.

The reality that Advanced Technologies Inc has currently incurred a preliminary financial investment of $48000 in the form of capital cost and model development suggests that the profits from Case Study Help is inadequate to carry out the danger of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a more effective choice especially of it is impacting the sale of the business's earnings generating designs.