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Aqua Logistics Limited An Attractive Target For Acquisition Case Study Help Checklist

Aqua Logistics Limited An Attractive Target For Acquisition Case Study Help Checklist

Aqua Logistics Limited An Attractive Target For Acquisition Case Study Solution
Aqua Logistics Limited An Attractive Target For Acquisition Case Study Help
Aqua Logistics Limited An Attractive Target For Acquisition Case Study Analysis



Analyses for Evaluating Aqua Logistics Limited An Attractive Target For Acquisition decision to launch Case Study Solution


The following area focuses on the of marketing for Aqua Logistics Limited An Attractive Target For Acquisition where the company's consumers, competitors and core competencies have assessed in order to validate whether the decision to launch Case Study Help under Aqua Logistics Limited An Attractive Target For Acquisition trademark name would be a feasible alternative or not. We have actually first of all taken a look at the type of customers that Aqua Logistics Limited An Attractive Target For Acquisition handle while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Aqua Logistics Limited An Attractive Target For Acquisition name.
Aqua Logistics Limited An Attractive Target For Acquisition Case Study Solution

Customer Analysis

Both the groups use Aqua Logistics Limited An Attractive Target For Acquisition high performance adhesives while the business is not only included in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the customers of instant adhesives for this analysis since the market for the latter has a lower potential for Aqua Logistics Limited An Attractive Target For Acquisition compared to that of instant adhesives.

The total market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Aqua Logistics Limited An Attractive Target For Acquisition potential market or consumer groups, we can see that the business offers to OEMs (Original Devices Producers), Do-it-Yourself clients, repair and overhauling business (MRO) and makers handling items made from leather, plastic, wood and metal. This diversity in consumers recommends that Aqua Logistics Limited An Attractive Target For Acquisition can target has various choices in terms of segmenting the marketplace for its new item specifically as each of these groups would be needing the very same kind of item with respective modifications in product packaging, amount or need. Nevertheless, the consumer is not cost delicate or brand mindful so introducing a low priced dispenser under Aqua Logistics Limited An Attractive Target For Acquisition name is not a recommended option.

Company Analysis

Aqua Logistics Limited An Attractive Target For Acquisition is not just a manufacturer of adhesives but delights in market management in the instantaneous adhesive market. The company has its own skilled and competent sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives. Aqua Logistics Limited An Attractive Target For Acquisition believes in special circulation as indicated by the reality that it has picked to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach through suppliers. The business's reach is not restricted to North America just as it also enjoys international sales. With 1400 outlets spread out all across North America, Aqua Logistics Limited An Attractive Target For Acquisition has its internal production plants instead of using out-sourcing as the preferred technique.

Core proficiencies are not limited to adhesive production just as Aqua Logistics Limited An Attractive Target For Acquisition likewise specializes in making adhesive dispensing equipment to facilitate the use of its products. This double production method gives Aqua Logistics Limited An Attractive Target For Acquisition an edge over competitors because none of the rivals of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the consumer either and makes use of distributors for connecting to customers. While we are looking at the strengths of Aqua Logistics Limited An Attractive Target For Acquisition, it is important to highlight the company's weaknesses.

The company's sales staff is experienced in training suppliers, the reality remains that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it ought to also be kept in mind that the distributors are revealing unwillingness when it pertains to selling equipment that needs maintenance which increases the challenges of selling devices under a particular brand.

If we look at Aqua Logistics Limited An Attractive Target For Acquisition line of product in adhesive devices especially, the company has actually products aimed at the high-end of the marketplace. The possibility of sales cannibalization exists if Aqua Logistics Limited An Attractive Target For Acquisition offers Case Study Help under the same portfolio. Provided the reality that Case Study Help is priced lower than Aqua Logistics Limited An Attractive Target For Acquisition high-end product line, sales cannibalization would absolutely be impacting Aqua Logistics Limited An Attractive Target For Acquisition sales earnings if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization affecting Aqua Logistics Limited An Attractive Target For Acquisition 27A Pencil Applicator which is priced at $275. There is another possible threat which might lower Aqua Logistics Limited An Attractive Target For Acquisition revenue if Case Study Help is released under the business's brand. The truth that $175000 has been spent in promoting SuperBonder suggests 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 instant adhesive.

In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which offers us 2 additional reasons for not launching a low priced product under the company's brand name.

Competitor Analysis

The competitive environment of Aqua Logistics Limited An Attractive Target For Acquisition would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high growth potential due to the presence of fragmented sections with Aqua Logistics Limited An Attractive Target For Acquisition enjoying leadership and a combined market share of 75% with two other industry players, Eastman and Permabond. While market rivalry between these gamers could be called 'extreme' as the customer is not brand name conscious and each of these players has prominence in regards to market share, the truth still stays that the industry is not filled and still has several market sections which can be targeted as prospective specific niche markets even when launching an adhesive. Nevertheless, we can even mention the fact that sales cannibalization might be leading to market rivalry in the adhesive dispenser market while the market for immediate adhesives provides development capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the buyer has low understanding about the item. While business like Aqua Logistics Limited An Attractive Target For Acquisition have handled to train distributors relating to adhesives, the final consumer depends on suppliers. Approximately 72% of sales are made straight by makers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by three players, it could be said that the supplier enjoys a greater bargaining power compared to the purchaser. Nevertheless, the truth remains that the supplier does not have much influence over the buyer at this moment especially as the purchaser does not show brand recognition or rate level of sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a major control over the actual sales, this indicates that the distributor 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 instant adhesive market suggests that the market enables ease of entry. Nevertheless, if we take a look at Aqua Logistics Limited An Attractive Target For Acquisition in particular, the business has dual capabilities in regards to being a producer of adhesive dispensers and immediate adhesives. Possible risks in devices dispensing industry are low which reveals the possibility of developing brand name awareness in not just immediate adhesives however also in dispensing adhesives as none of the market gamers has actually handled to position itself in dual capabilities.

Threat of Substitutes: The danger of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Aqua Logistics Limited An Attractive Target For Acquisition presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).


4 P Analysis: A suggested Marketing Mix for Case Study Help

Aqua Logistics Limited An Attractive Target For Acquisition Case Study Help


Despite the fact that our 3C analysis has given different factors for not launching Case Study Help under Aqua Logistics Limited An Attractive Target For Acquisition name, we have actually a recommended marketing mix for Case Study Help provided listed below if Aqua Logistics Limited An Attractive Target For Acquisition decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an extra development potential of 10.1% which might be a great enough niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered for use with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This price would not include the expense of the 'vari tip' or the 'glumetic pointer'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to purchase the product on his own. This would increase the possibility of affecting mechanics to buy the item for use in their day-to-day maintenance tasks.

Aqua Logistics Limited An Attractive Target For Acquisition would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Aqua Logistics Limited An Attractive Target For Acquisition for introducing Case Study Help.

Place: A circulation design where Aqua Logistics Limited An Attractive Target For Acquisition straight sends out the item to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Aqua Logistics Limited An Attractive Target For Acquisition. Since the sales group is currently participated in offering instant adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be expensive particularly as each sales call expenses around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial choice.

Promotion: A low marketing budget plan must have been appointed to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested advertising plan costing $51816 is suggested for initially presenting the item in the market. The prepared advertisements in magazines would be targeted at mechanics in car upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Aqua Logistics Limited An Attractive Target For Acquisition Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the fact still remains that the product would not complement Aqua Logistics Limited An Attractive Target For Acquisition 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 roughly $49377 if 250 systems of each design are produced per year according to the strategy. Nevertheless, the preliminary planned advertising is around $52000 each year which would be putting a stress on the company's resources leaving Aqua Logistics Limited An Attractive Target For Acquisition with a negative earnings if the costs are designated to Case Study Help just.

The fact that Aqua Logistics Limited An Attractive Target For Acquisition has already incurred an initial financial investment of $48000 in the form of capital cost and prototype development suggests that the profits from Case Study Help is not enough to undertake the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a more suitable alternative specifically of it is affecting the sale of the business's income producing models.



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