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Aion Corp Case Study Solution
Aion Corp Case Study Help
Aion Corp Case Study Analysis
The following section focuses on the of marketing for Aion Corp where the business's customers, competitors and core competencies have actually examined in order to justify whether the decision to release Case Study Help under Aion Corp brand would be a practical alternative or not. We have actually first of all looked at the type of consumers that Aion Corp deals in while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Aion Corp name.
Both the groups utilize Aion Corp high performance adhesives while the business is not just involved in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower capacity for Aion Corp compared to that of instantaneous adhesives.
The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been identified earlier.If we look at a breakdown of Aion Corp potential market or client groups, we can see that the company offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair work and overhauling business (MRO) and producers dealing in products made from leather, plastic, metal and wood. This diversity in clients suggests that Aion Corp can target has different options in terms of segmenting the market for its new item particularly as each of these groups would be needing the same type of product with respective modifications in need, product packaging or amount. Nevertheless, the customer is not cost sensitive or brand mindful so launching a low priced dispenser under Aion Corp name is not an advised option.
Aion Corp is not simply a maker of adhesives however enjoys market leadership in the instant adhesive market. The business has its own experienced and qualified sales force which adds value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production only as Aion Corp likewise concentrates on making adhesive giving equipment to facilitate using its items. This dual production technique gives Aion Corp an edge over competitors given that none of the competitors of dispensing equipment makes instant adhesives. Additionally, none of these rivals offers directly to the consumer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Aion Corp, it is important to highlight the business's weak points.
The business's sales staff is experienced in training suppliers, the truth remains that the sales team is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It needs to likewise be noted that the distributors are revealing reluctance when it comes to selling devices that needs servicing which increases the difficulties of selling equipment under a particular brand name.
The company has items aimed at the high end of the market if we look at Aion Corp item line in adhesive devices particularly. The possibility of sales cannibalization exists if Aion Corp sells Case Study Help under the exact same portfolio. Given the truth that Case Study Help is priced lower than Aion Corp high-end product line, sales cannibalization would absolutely be affecting Aion Corp sales earnings if the adhesive devices is offered under the company's brand.
We can see sales cannibalization affecting Aion Corp 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible risk which could decrease Aion Corp income. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or rate consciousness which provides us two extra reasons for not launching a low priced item under the company's trademark name.
The competitive environment of Aion Corp would be studied via 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 particularly as the purchaser has low understanding about the product. While business like Aion Corp have handled to train distributors regarding adhesives, the final consumer is dependent on distributors. Around 72% of sales are made directly by producers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by 3 players, it could be stated that the provider enjoys a greater bargaining power compared to the purchaser. The reality stays that the supplier does not have much impact over the purchaser at this point specifically as the purchaser does not show brand recognition or price sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a major control over the actual sales, this suggests 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 revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the market permits ease of entry. Nevertheless, if we look at Aion Corp in particular, the business has dual capabilities in regards to being a manufacturer of immediate adhesives and adhesive dispensers. Potential dangers in devices dispensing industry are low which shows the possibility of developing brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the market gamers has managed to position itself in dual capabilities.
Risk of Substitutes: The risk of substitutes in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Aion Corp presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given numerous factors for not introducing Case Study Help under Aion Corp name, we have actually a recommended marketing mix for Case Study Help provided below if Aion Corp decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra growth potential of 10.1% which might be a good sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the reality 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 suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. This cost would not include the expense of the 'vari suggestion' or the 'glumetic suggestion'. A cost 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 affecting mechanics to buy the item for usage in their daily maintenance jobs.
Aion Corp would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Aion Corp for releasing Case Study Help.
Place: A distribution model where Aion Corp straight sends the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Aion Corp. Considering that the sales group is currently participated in selling instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be costly specifically as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low advertising budget plan needs to 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 strategy costing $51816 is suggested for at first introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in lorry upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
