The following section concentrates on the of marketing for Agnico Eagle Mines Ltd where the business's consumers, competitors and core competencies have actually evaluated in order to justify whether the decision to launch Case Study Help under Agnico Eagle Mines Ltd brand would be a practical option or not. We have to start with looked at the kind of clients that Agnico Eagle Mines Ltd handle while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification 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 customer groups. We would be focusing on the customers of immediate adhesives for this analysis because the market for the latter has a lower potential for Agnico Eagle Mines Ltd compared to that of immediate adhesives.
The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been recognized earlier.If we take a look at a breakdown of Agnico Eagle Mines Ltd possible market or customer groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and manufacturers dealing in products made from leather, metal, plastic and wood. This variety in customers recommends that Agnico Eagle Mines Ltd can target has different options in terms of segmenting the market for its brand-new item especially as each of these groups would be needing the exact same type of product with respective modifications in amount, need or packaging. The customer is not cost delicate or brand name conscious so releasing a low priced dispenser under Agnico Eagle Mines Ltd name is not a suggested alternative.
Agnico Eagle Mines Ltd is not simply a maker of adhesives but enjoys market management in the instantaneous adhesive industry. The business has its own skilled and competent sales force which adds value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Agnico Eagle Mines Ltd believes in exclusive circulation as shown by the truth that it has actually chosen to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach via suppliers. The company's reach is not limited to North America just as it likewise takes pleasure in global sales. With 1400 outlets spread out all across The United States and Canada, Agnico Eagle Mines Ltd has its in-house production plants rather than using out-sourcing as the preferred strategy.
Core skills are not restricted to adhesive production only as Agnico Eagle Mines Ltd also focuses on making adhesive giving devices to assist in the use of its products. This double production technique provides Agnico Eagle Mines Ltd an edge over rivals since none of the competitors of giving devices makes instantaneous adhesives. In addition, none of these rivals sells straight to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Agnico Eagle Mines Ltd, it is necessary to highlight the business's weaknesses too.
Although the company's sales staff is proficient in training distributors, the fact stays that the sales team is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It must also be kept in mind that the suppliers are revealing hesitation when it comes to selling devices that needs servicing which increases the challenges of offering equipment under a specific brand name.
The business has actually items intended at the high end of the market if we look at Agnico Eagle Mines Ltd item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Agnico Eagle Mines Ltd sells Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Agnico Eagle Mines Ltd high-end line of product, sales cannibalization would certainly be affecting Agnico Eagle Mines Ltd sales profits if the adhesive equipment is sold under the company's trademark name.
We can see sales cannibalization impacting Agnico Eagle Mines Ltd 27A Pencil Applicator which is priced at $275. There is another possible hazard which might reduce Agnico Eagle Mines Ltd revenue if Case Study Help is introduced under the business's brand name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or cost consciousness which provides us two extra factors for not launching a low priced item under the company's brand name.
The competitive environment of Agnico Eagle Mines Ltd would be studied via 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 market is low especially as the purchaser has low knowledge about the item. While business like Agnico Eagle Mines Ltd have managed to train suppliers concerning adhesives, the final consumer depends on distributors. Roughly 72% of sales are made directly by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by three gamers, it could be stated that the supplier takes pleasure in a greater bargaining power compared to the buyer. The fact remains that the provider does not have much influence over the purchaser at this point especially as the buyer does not reveal brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a major control over the actual sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market indicates that the marketplace permits ease of entry. However, if we take a look at Agnico Eagle Mines Ltd in particular, the company has dual abilities in regards to being a maker of instantaneous adhesives and adhesive dispensers. Possible hazards in devices giving market are low which shows the possibility of developing brand name awareness in not just instant adhesives however also in giving adhesives as none of the industry gamers has actually handled to place itself in double abilities.
Hazard of Substitutes: The threat of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Agnico Eagle Mines Ltd presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided numerous 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 chooses to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development potential of 10.1% which may be a good enough specific niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance store needs to buy the product on his own.
Agnico Eagle Mines Ltd would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Agnico Eagle Mines Ltd for releasing Case Study Help.
Place: A circulation model where Agnico Eagle Mines Ltd directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Agnico Eagle Mines Ltd. Since the sales team is currently engaged in offering instant adhesives and they do not have competence in selling dispensers, including them in the selling procedure would be expensive specifically as each sales call costs approximately $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low marketing budget needs to have been assigned 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 sustained for production, the recommended marketing strategy costing $51816 is advised for initially introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in car maintenance shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).