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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
The following area focuses on the of marketing for Aqua Logistics Limited An Attractive Target For Acquisition where the company's clients, rivals and core competencies have actually evaluated in order to justify whether the choice to release Case Study Help under Aqua Logistics Limited An Attractive Target For Acquisition brand name would be a feasible alternative or not. We have firstly taken a look at the type of clients that Aqua Logistics Limited An Attractive Target For Acquisition handle while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Aqua Logistics Limited An Attractive Target For Acquisition name.
Both the groups utilize Aqua Logistics Limited An Attractive Target For Acquisition high efficiency adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these client groups. 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 Aqua Logistics Limited An Attractive Target For Acquisition compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been identified 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 sells to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and producers dealing in products made from leather, wood, metal and plastic. This variety in clients suggests that Aqua Logistics Limited An Attractive Target For Acquisition can target has different alternatives in regards to segmenting the marketplace for its new item particularly as each of these groups would be needing the exact same kind of product with particular changes in product packaging, need or amount. The client is not rate sensitive or brand conscious so releasing a low priced dispenser under Aqua Logistics Limited An Attractive Target For Acquisition name is not a recommended alternative.
Aqua Logistics Limited An Attractive Target For Acquisition is not simply a producer of adhesives however delights in market management in the instantaneous adhesive market. The business has its own knowledgeable and certified sales force which includes worth 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 just as Aqua Logistics Limited An Attractive Target For Acquisition likewise focuses on making adhesive dispensing devices to facilitate using its products. This dual production technique offers Aqua Logistics Limited An Attractive Target For Acquisition an edge over rivals because none of the rivals of dispensing equipment makes instant adhesives. Furthermore, none of these competitors offers directly to the consumer either and utilizes distributors for connecting to customers. While we are looking at the strengths of Aqua Logistics Limited An Attractive Target For Acquisition, it is essential to highlight the business's weaknesses too.
Although the company's sales personnel is skilled in training distributors, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it needs to likewise be noted that the suppliers are showing unwillingness when it concerns offering equipment that requires servicing which increases the challenges of offering devices under a particular brand name.
If we look at Aqua Logistics Limited An Attractive Target For Acquisition line of product in adhesive equipment especially, the business has products aimed at the luxury of the marketplace. If Aqua Logistics Limited An Attractive Target For Acquisition sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Aqua Logistics Limited An Attractive Target For Acquisition high-end product line, sales cannibalization would definitely be impacting Aqua Logistics Limited An Attractive Target For Acquisition sales income if the adhesive devices is sold under the business's brand.
We can see sales cannibalization affecting Aqua Logistics Limited An Attractive Target For Acquisition 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 might lower Aqua Logistics Limited An Attractive Target For Acquisition earnings. The fact that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for releasing 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.
Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or rate awareness which provides us two additional factors for not launching a low priced product under the company's trademark name.
The competitive environment of Aqua Logistics Limited An Attractive Target For Acquisition would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the buyer has low understanding about the product. While companies like Aqua Logistics Limited An Attractive Target For Acquisition have actually handled to train distributors relating to adhesives, the last consumer depends on distributors. Roughly 72% of sales are made straight by makers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 players, it could be stated that the provider takes pleasure in a greater bargaining power compared to the buyer. However, the truth stays that the supplier does not have much influence over the purchaser at this point specifically as the buyer does disappoint brand name recognition or rate sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a significant control over the actual sales, this indicates that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace allows ease of entry. If we look at Aqua Logistics Limited An Attractive Target For Acquisition in particular, the company has dual capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Prospective risks in devices giving industry are low which reveals the possibility of producing brand name awareness in not just instant adhesives but also in dispensing adhesives as none of the industry gamers has actually handled to position itself in dual abilities.
Danger of Substitutes: The danger of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality stays that if Aqua Logistics Limited An Attractive Target For Acquisition presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided numerous factors for not launching Case Study Help under Aqua Logistics Limited An Attractive Target For Acquisition name, we have actually a suggested marketing mix for Case Study Help given below if Aqua Logistics Limited An Attractive Target For Acquisition chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this sector and a high usage of around 58900 lbs. is being used by 36.1 % of the market. This market has an extra development potential of 10.1% which may be a sufficient specific niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the reality that the Diy market can likewise be targeted if a drinkable low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wishes to choose either of the two devices or not.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep shop requires to acquire the item on his own.
Aqua Logistics Limited An Attractive Target For Acquisition would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Aqua Logistics Limited An Attractive Target For Acquisition for releasing Case Study Help.
Place: A circulation model where Aqua Logistics Limited An Attractive Target For Acquisition directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Aqua Logistics Limited An Attractive Target For Acquisition. Given that the sales group is already participated in offering immediate adhesives and they do not have knowledge in selling dispensers, involving them in the selling process would be costly specifically as each sales call costs approximately $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: Although a low marketing budget must have been assigned to Case Study Help but the reality that the dispenser is a development 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 initially introducing the product in the market. The planned ads in magazines would be targeted at mechanics in car maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
