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Agnico Eagle Mines Ltd Case Study Solution
Agnico Eagle Mines Ltd Case Study Help
Agnico Eagle Mines Ltd Case Study Analysis
The following area concentrates on the of marketing for Agnico Eagle Mines Ltd where the business's customers, rivals and core proficiencies have actually assessed in order to validate whether the decision to launch Case Study Help under Agnico Eagle Mines Ltd brand would be a feasible option or not. We have firstly looked at the type of clients that Agnico Eagle Mines Ltd deals in while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Agnico Eagle Mines Ltd name.
Both the groups utilize Agnico Eagle Mines Ltd high efficiency adhesives while the company is not only involved in the production of these adhesives but also markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Agnico Eagle Mines Ltd compared to that of instantaneous adhesives.
The overall market for immediate adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Agnico Eagle Mines Ltd potential market or consumer groups, we can see that the business offers to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair work and overhauling business (MRO) and manufacturers dealing in items made from leather, metal, plastic and wood. This variety in consumers suggests that Agnico Eagle Mines Ltd 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 exact same kind of item with respective modifications in demand, amount or product packaging. The client is not cost sensitive or brand conscious so launching a low priced dispenser under Agnico Eagle Mines Ltd name is not an advised option.
Agnico Eagle Mines Ltd is not simply a maker of adhesives however takes pleasure in market management in the immediate adhesive market. The business has its own knowledgeable and qualified sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.
Core skills are not limited to adhesive manufacturing only as Agnico Eagle Mines Ltd likewise specializes in making adhesive dispensing equipment to facilitate using its items. This double production technique gives Agnico Eagle Mines Ltd an edge over competitors considering that none of the rivals of giving equipment makes immediate adhesives. Furthermore, none of these rivals sells straight to the customer either and makes use of distributors for reaching out to consumers. While we are looking at the strengths of Agnico Eagle Mines Ltd, it is essential to highlight the business's weak points too.
Although the business's sales personnel is knowledgeable in training suppliers, the fact remains that the sales team is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. It needs to also be kept in mind that the distributors are revealing unwillingness when it comes to selling devices that needs maintenance which increases the difficulties of offering equipment under a specific brand name.
The company has items intended at the high end of the market if we look at Agnico Eagle Mines Ltd product line in adhesive devices particularly. If Agnico Eagle Mines Ltd offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Agnico Eagle Mines Ltd high-end line of product, sales cannibalization would absolutely be affecting Agnico Eagle Mines Ltd sales earnings if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization affecting Agnico Eagle Mines Ltd 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which might reduce Agnico Eagle Mines Ltd revenue. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or rate consciousness which gives us 2 additional reasons for not releasing a low priced item under the company's brand.
The competitive environment of Agnico Eagle Mines Ltd would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the buyer has low understanding about the product. While business like Agnico Eagle Mines Ltd have handled to train distributors relating to adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made straight by makers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by three gamers, it could be stated that the provider takes pleasure in a higher bargaining power compared to the purchaser. However, the reality remains that the supplier does not have much impact over the purchaser at this point particularly as the purchaser does disappoint brand recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a major control over the real sales, this indicates that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we look at Agnico Eagle Mines Ltd in particular, the business has dual abilities in regards to being a producer of adhesive dispensers and instant adhesives. Potential threats in devices dispensing market are low which reveals the possibility of developing brand awareness in not only instant adhesives but likewise in giving adhesives as none of the industry players has handled to position itself in dual capabilities.
Hazard of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The truth stays that if Agnico Eagle Mines Ltd presented 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 actually offered different factors for not introducing Case Study Help under Agnico Eagle Mines Ltd name, we have actually a recommended marketing mix for Case Study Help given below if Agnico Eagle Mines Ltd decides to go ahead with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a number of factors. There are currently 89257 facilities in this segment and a high usage of around 58900 pounds. is being used by 36.1 % of the market. This market has an extra development potential of 10.1% which may be a good enough niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wants to opt for 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 offered through suppliers or through direct selling. This rate would not consist of the cost of the 'vari idea' or the 'glumetic pointer'. A rate below $250 would not require approvals from the senior management in case a mechanic at an automobile upkeep store requires to purchase the product on his own. This would increase the possibility of influencing mechanics to purchase the item for use in their day-to-day upkeep tasks.
Agnico Eagle Mines Ltd would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Agnico Eagle Mines Ltd for introducing Case Study Help.
Place: A circulation design where Agnico Eagle Mines Ltd directly sends out the item to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Agnico Eagle Mines Ltd. Since the sales group is currently taken part in offering instant adhesives and they do not have expertise in selling dispensers, involving them in the selling procedure would be pricey especially as each sales call expenses approximately $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low advertising spending plan should have been designated to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising plan costing $51816 is recommended for initially introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in car maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
