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Adventurous Computer Games Inc Case Study Solution
Adventurous Computer Games Inc Case Study Help
Adventurous Computer Games Inc Case Study Analysis
The following section concentrates on the of marketing for Adventurous Computer Games Inc where the company's consumers, rivals and core proficiencies have actually examined in order to justify whether the decision to launch Case Study Help under Adventurous Computer Games Inc brand name would be a feasible option or not. We have actually first of all looked at the type of clients that Adventurous Computer Games 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 justification for not releasing Case Study Help under Adventurous Computer Games Inc name.
Adventurous Computer Games Inc clients can be segmented into 2 groups, industrial clients and last customers. Both the groups use Adventurous Computer Games Inc high performance adhesives while the company is not just associated with the production of these adhesives but likewise markets them to these customer groups. There are 2 types of products that are being offered to these potential markets; anaerobic adhesives and instantaneous adhesives. We would be focusing on the consumers of immediate adhesives for this analysis because the marketplace for the latter has a lower capacity for Adventurous Computer Games Inc compared to that of instantaneous adhesives.
The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have actually been determined earlier.If we look at a breakdown of Adventurous Computer Games Inc possible market or client groups, we can see that the business sells to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair and overhauling business (MRO) and producers dealing in items made of leather, plastic, wood and metal. This variety in customers recommends that Adventurous Computer Games Inc can target has numerous choices in regards to segmenting the market for its brand-new product specifically as each of these groups would be needing the exact same type of product with particular changes in product packaging, amount or need. The consumer is not rate sensitive or brand conscious so introducing a low priced dispenser under Adventurous Computer Games Inc name is not an advised choice.
Adventurous Computer Games Inc is not simply a maker of adhesives but takes pleasure in market management in the immediate adhesive market. The company has its own experienced and certified sales force which adds value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Adventurous Computer Games Inc believes in exclusive circulation as indicated by the fact that it has selected to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for expanding reach through suppliers. The business's reach is not limited to North America only as it also delights in global sales. With 1400 outlets spread out all across The United States and Canada, Adventurous Computer Games Inc has its internal production plants instead of utilizing out-sourcing as the preferred strategy.
Core skills are not limited to adhesive production only as Adventurous Computer Games Inc also focuses on making adhesive giving equipment to facilitate making use of its products. This dual production method offers Adventurous Computer Games Inc an edge over rivals given that none of the competitors of giving devices makes immediate adhesives. Additionally, none of these rivals offers straight to the customer either and utilizes suppliers for reaching out to consumers. While we are taking a look at the strengths of Adventurous Computer Games Inc, it is essential to highlight the business's weak points also.
Although the company's sales staff is competent in training distributors, the reality stays that the sales team is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it needs to also be kept in mind that the distributors are showing reluctance when it concerns offering equipment that needs servicing which increases the difficulties of offering devices under a specific brand.
If we take a look at Adventurous Computer Games Inc product line in adhesive devices especially, the company has products focused on the high-end of the market. If Adventurous Computer Games Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Adventurous Computer Games Inc high-end line of product, sales cannibalization would absolutely be impacting Adventurous Computer Games Inc sales profits if the adhesive devices is offered under the company's brand.
We can see sales cannibalization affecting Adventurous Computer Games Inc 27A Pencil Applicator which is priced at $275. There is another possible threat which could reduce Adventurous Computer Games Inc revenue if Case Study Help is introduced under the business's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
In addition, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or rate awareness which provides us two additional factors for not launching a low priced product under the business's trademark name.
The competitive environment of Adventurous Computer Games Inc would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low understanding about the product. While companies like Adventurous Computer Games Inc have managed to train suppliers relating to adhesives, the final consumer is dependent 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: Offered the fact that the adhesive market is dominated by 3 players, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. However, the truth remains that the provider does not have much influence over the buyer at this moment particularly as the buyer does not show brand acknowledgment or cost sensitivity. This indicates that the distributor has the higher power when it concerns the adhesive market while the buyer and the maker do not have a major control over the actual 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 immediate adhesive market indicates that the market enables ease of entry. However, if we look at Adventurous Computer Games Inc in particular, the company has dual capabilities in regards to being a producer of instantaneous adhesives and adhesive dispensers. Possible threats in devices giving market are low which shows the possibility of developing brand name awareness in not just instantaneous adhesives but also in giving adhesives as none of the industry players has handled to place itself in double abilities.
Threat of Substitutes: The threat of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Adventurous Computer Games Inc introduced 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 offered different reasons for not launching Case Study Help under Adventurous Computer Games Inc name, we have a suggested marketing mix for Case Study Help given below if Adventurous Computer Games Inc chooses to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of factors. This market has an additional development potential of 10.1% which may be a great enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance store requires to purchase the product on his own.
Adventurous Computer Games Inc would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Adventurous Computer Games Inc for introducing Case Study Help.
Place: A circulation model where Adventurous Computer Games Inc directly sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Adventurous Computer Games Inc. Considering that the sales team is currently taken part in offering instantaneous adhesives and they do not have know-how in selling dispensers, involving them in the selling procedure would be expensive especially as each sales call costs roughly $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: Although a low promotional budget must have been appointed to Case Study Help however the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested marketing strategy costing $51816 is advised for at first presenting the item in the market. The planned ads in magazines would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
