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Affymax Nv An Initial Public Offering Case Study Help Checklist

Affymax Nv An Initial Public Offering Case Study Help Checklist

Affymax Nv An Initial Public Offering Case Study Solution
Affymax Nv An Initial Public Offering Case Study Help
Affymax Nv An Initial Public Offering Case Study Analysis



Analyses for Evaluating Affymax Nv An Initial Public Offering decision to launch Case Study Solution


The following area concentrates on the of marketing for Affymax Nv An Initial Public Offering where the business's consumers, competitors and core proficiencies have actually evaluated in order to validate whether the decision to launch Case Study Help under Affymax Nv An Initial Public Offering brand would be a feasible choice or not. We have to start with looked at the type of consumers that Affymax Nv An Initial Public Offering deals in while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Affymax Nv An Initial Public Offering name.
Affymax Nv An Initial Public Offering Case Study Solution

Customer Analysis

Both the groups utilize Affymax Nv An Initial Public Offering high efficiency adhesives while the company is not only 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 since the market for the latter has a lower capacity for Affymax Nv An Initial Public Offering compared to that of instant adhesives.

The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Affymax Nv An Initial Public Offering prospective market or consumer groups, we can see that the business offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair and upgrading business (MRO) and makers handling products made from leather, plastic, metal and wood. This diversity in consumers suggests that Affymax Nv An Initial Public Offering can target has numerous alternatives in regards to segmenting the market for its brand-new item especially as each of these groups would be requiring the very same type of item with particular modifications in product packaging, need or amount. Nevertheless, the consumer is not cost delicate or brand conscious so releasing a low priced dispenser under Affymax Nv An Initial Public Offering name is not a suggested choice.

Company Analysis

Affymax Nv An Initial Public Offering is not just a manufacturer of adhesives however enjoys market leadership in the instant adhesive industry. The business has its own competent and qualified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.

Core skills are not restricted to adhesive production just as Affymax Nv An Initial Public Offering also focuses on making adhesive dispensing equipment to help with making use of its items. This double production strategy offers Affymax Nv An Initial Public Offering an edge over competitors considering that none of the competitors of dispensing equipment makes instant adhesives. Additionally, none of these competitors offers straight to the customer either and makes use of distributors for connecting to clients. While we are taking a look at the strengths of Affymax Nv An Initial Public Offering, it is necessary to highlight the company's weak points as well.

The company's sales staff is experienced in training distributors, the truth remains that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It needs to also be noted that the suppliers are revealing reluctance when it comes to selling devices that needs servicing which increases the challenges of offering equipment under a particular brand name.

The company has actually products intended at the high end of the market if we look at Affymax Nv An Initial Public Offering product line in adhesive devices especially. The possibility of sales cannibalization exists if Affymax Nv An Initial Public Offering sells Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Affymax Nv An Initial Public Offering high-end line of product, sales cannibalization would definitely be impacting Affymax Nv An Initial Public Offering sales income if the adhesive equipment is offered under the company's brand name.

We can see sales cannibalization impacting Affymax Nv An Initial Public Offering 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible danger which could decrease Affymax Nv An Initial Public Offering earnings. The truth that $175000 has actually been spent in promoting SuperBonder suggests 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 instantaneous adhesive.

Additionally, if we look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which provides us two additional factors for not introducing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Affymax Nv An Initial Public Offering would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sections with Affymax Nv An Initial Public Offering delighting in leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While market competition in between these players could be called 'intense' as the consumer is not brand conscious and each of these gamers has prominence in regards to market share, the truth still stays that the market is not filled and still has numerous market sectors which can be targeted as possible specific niche markets even when launching an adhesive. Nevertheless, we can even mention the truth that sales cannibalization may be causing industry competition in the adhesive dispenser market while the market for instantaneous adhesives provides growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low knowledge about the product. While business like Affymax Nv An Initial Public Offering have handled to train suppliers concerning adhesives, the final customer is dependent 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 controlled by 3 gamers, it could be said that the supplier enjoys a greater bargaining power compared to the purchaser. However, the fact remains that the provider does not have much impact over the purchaser at this moment especially as the purchaser does not show brand recognition or price level of sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a major control over the actual sales, this shows that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the marketplace allows ease of entry. However, if we look at Affymax Nv An Initial Public Offering in particular, the company has double capabilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Prospective dangers in devices giving market are low which reveals the possibility of producing brand awareness in not just immediate adhesives but likewise in dispensing adhesives as none of the market gamers has actually handled to position itself in double abilities.

Danger of Substitutes: The danger of substitutes in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact stays that if Affymax Nv An Initial Public Offering introduced 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

Affymax Nv An Initial Public Offering Case Study Help


Despite the fact that our 3C analysis has actually provided various factors for not releasing Case Study Help under Affymax Nv An Initial Public Offering name, we have a suggested marketing mix for Case Study Help offered below if Affymax Nv An Initial Public Offering chooses to go on with the launch.

Product & Target Market: The target audience picked for Case Study Help is 'Motor vehicle services' for a number of factors. There are currently 89257 facilities in this segment and a high use of approximately 58900 pounds. is being used by 36.1 % of the market. This market has an extra growth capacity of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wishes to choose either of the two devices or not.

Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep store needs to buy the product on his own.

Affymax Nv An Initial Public Offering would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net profitability for Affymax Nv An Initial Public Offering for releasing Case Study Help.

Place: A circulation design where Affymax Nv An Initial Public Offering directly sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Affymax Nv An Initial Public Offering. Since the sales team is currently engaged in selling instant adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be pricey especially as each sales call expenses around $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: Although a low marketing spending plan must have been appointed to Case Study Help however 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 suggested marketing strategy costing $51816 is advised for at first introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in automobile upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Affymax Nv An Initial Public Offering Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the reality still stays that the product would not complement Affymax Nv An Initial Public Offering line of product. We take a look at appendix 2, we can see how the overall gross profitability for the two models is anticipated to be around $49377 if 250 units of each model are produced each year as per the plan. Nevertheless, the preliminary prepared advertising is around $52000 annually which would be putting a strain on the company's resources leaving Affymax Nv An Initial Public Offering with an unfavorable net income if the costs are designated to Case Study Help just.

The reality that Affymax Nv An Initial Public Offering has already sustained an initial financial investment of $48000 in the form of capital cost and prototype development indicates that the earnings from Case Study Help is insufficient to carry out the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable choice specifically of it is impacting the sale of the business's earnings generating models.



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