WhatsApp 
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
The following section focuses on the of marketing for Affymax Nv An Initial Public Offering where the company's consumers, competitors and core competencies have examined in order to justify whether the choice to introduce Case Study Help under Affymax Nv An Initial Public Offering trademark name would be a practical alternative or not. We have first of all taken a look at the kind of clients that Affymax Nv An Initial Public Offering handle while an evaluation of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Affymax Nv An Initial Public Offering name.
Affymax Nv An Initial Public Offering customers can be segmented into two groups, commercial customers and final customers. Both the groups utilize Affymax Nv An Initial Public Offering high performance adhesives while the company is not just associated with the production of these adhesives but also markets them to these client groups. There are two kinds of products that are being sold to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Affymax Nv An Initial Public Offering compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is approximately 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 (Initial Devices Manufacturers), Do-it-Yourself customers, repair and upgrading companies (MRO) and manufacturers handling items made of leather, wood, metal and plastic. This variety in consumers recommends that Affymax Nv An Initial Public Offering can target has different alternatives in terms of segmenting the market for its brand-new product specifically as each of these groups would be needing the same kind of item with particular modifications in packaging, amount or demand. However, the consumer is not cost delicate or brand name conscious so launching a low priced dispenser under Affymax Nv An Initial Public Offering name is not a recommended alternative.
Affymax Nv An Initial Public Offering is not simply a manufacturer of adhesives but enjoys market management in the immediate adhesive industry. The business has its own proficient and competent sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core skills are not limited to adhesive manufacturing only as Affymax Nv An Initial Public Offering likewise specializes in making adhesive dispensing equipment to facilitate using its products. This double production method provides Affymax Nv An Initial Public Offering an edge over rivals considering that none of the rivals of giving devices makes immediate adhesives. Additionally, none of these competitors sells straight to the customer either and utilizes distributors for reaching out to consumers. While we are taking a look at the strengths of Affymax Nv An Initial Public Offering, it is very important to highlight the business's weak points too.
Although the business's sales staff is knowledgeable in training suppliers, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It must likewise be noted that the suppliers are showing hesitation when it comes to selling equipment that needs maintenance which increases the challenges of selling equipment under a specific brand name.
The business has actually products aimed at the high end of the market if we look at Affymax Nv An Initial Public Offering product line in adhesive devices especially. If Affymax Nv An Initial Public Offering offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Affymax Nv An Initial Public Offering high-end line of product, sales cannibalization would certainly be affecting Affymax Nv An Initial Public Offering sales revenue if the adhesive equipment is sold under the business's brand.
We can see sales cannibalization impacting Affymax Nv An Initial Public Offering 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Affymax Nv An Initial Public Offering profits if Case Study Help is introduced under the business's brand name. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for launching 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.
Additionally, if we look at the market in general, the adhesives market does not show brand name orientation or rate consciousness which provides us two extra factors for not introducing a low priced item under the company's brand name.
The competitive environment of Affymax Nv An Initial Public Offering would be studied through 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 industry is low especially as the purchaser has low understanding about the item. While companies like Affymax Nv An Initial Public Offering have managed to train suppliers relating to adhesives, the final customer is dependent on distributors. Around 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three players, it could be said that the supplier delights in a greater bargaining power compared to the buyer. However, the fact remains that the supplier does not have much impact over the purchaser at this point especially as the purchaser does disappoint brand name acknowledgment or price sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales, this shows that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the market allows ease of entry. If we look at Affymax Nv An Initial Public Offering in specific, the company has dual abilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Potential dangers in equipment giving market are low which reveals the possibility of creating brand name awareness in not just instant adhesives but likewise in dispensing adhesives as none of the industry players has handled to position itself in double capabilities.
Hazard of Substitutes: The hazard of replacements in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Affymax Nv An Initial Public Offering introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous factors for not introducing Case Study Help under Affymax Nv An Initial Public Offering name, we have a suggested marketing mix for Case Study Help given listed below if Affymax Nv An Initial Public Offering decides to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional growth potential of 10.1% which may be a great enough specific niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being offered for use with SuperBonder.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold 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 vehicle upkeep shop requires to buy the item on his own.
Affymax Nv An Initial Public Offering would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Affymax Nv An Initial Public Offering for launching Case Study Help.
Place: A circulation design where Affymax Nv An Initial Public Offering straight sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Affymax Nv An Initial Public Offering. Given that the sales group is already engaged in offering instantaneous adhesives and they do not have competence in selling dispensers, including them in the selling process would be expensive especially as each sales call costs around $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low advertising budget ought to have been designated to Case Study Help however the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is advised for at first introducing the product in the market. The prepared ads in magazines would be targeted at mechanics in lorry maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
