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Areva Case Study Solution
Areva Case Study Help
Areva Case Study Analysis
The following area focuses on the of marketing for Areva where the business's clients, rivals and core competencies have actually examined in order to justify whether the choice to launch Case Study Help under Areva trademark name would be a practical option or not. We have actually to start with taken a look at the type of clients that Areva deals in while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Areva name.
Both the groups use Areva high performance adhesives while the company is not just included in the production of these adhesives however also markets them to these customer groups. We would be focusing on the customers of immediate adhesives for this analysis given that the market for the latter has a lower potential for Areva compared to that of instantaneous adhesives.
The overall market for immediate adhesives is around 890,000 in the US in 1978 which covers both client groups which have actually been identified earlier.If we take a look at a breakdown of Areva potential market or customer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair work and revamping business (MRO) and manufacturers handling products made from leather, plastic, wood and metal. This diversity in customers recommends that Areva can target has various options in regards to segmenting the marketplace for its new item especially as each of these groups would be requiring the same kind of product with particular changes in demand, packaging or quantity. Nevertheless, the customer is not rate delicate or brand name mindful so introducing a low priced dispenser under Areva name is not an advised option.
Areva is not just a manufacturer of adhesives but delights in market leadership in the immediate adhesive market. The company has its own skilled and qualified sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.
Core competences are not restricted to adhesive manufacturing only as Areva likewise focuses on making adhesive giving devices to help with the use of its products. This dual production strategy offers Areva an edge over competitors since none of the rivals of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the consumer either and makes use of distributors for reaching out to customers. While we are looking at the strengths of Areva, it is important to highlight the company's weak points also.
Although the company's sales personnel is skilled in training distributors, the fact stays that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It should also be noted that the suppliers are showing unwillingness when it comes to offering devices that needs servicing which increases the difficulties of offering equipment under a particular brand name.
If we take a look at Areva line of product in adhesive devices particularly, the company has products focused on the high end of the market. If Areva offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Areva high-end line of product, sales cannibalization would certainly be impacting Areva sales income if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Areva 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible hazard which might lower Areva earnings. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great 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 instantaneous adhesive.
Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or cost consciousness which gives us two additional factors for not introducing a low priced product under the company's brand name.
The competitive environment of Areva 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 market is low specifically as the buyer has low understanding about the product. While business like Areva have actually handled to train distributors concerning adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by 3 gamers, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. The truth remains that the supplier does not have much influence over the buyer at this point particularly as the purchaser does not reveal brand recognition or rate level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the real sales, this suggests 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 instant adhesive market shows that the market enables ease of entry. Nevertheless, if we take a look at Areva in particular, the company has dual abilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Possible dangers in devices giving industry are low which shows the possibility of developing brand awareness in not just instant adhesives however also in dispensing adhesives as none of the market players has actually managed to position itself in dual abilities.
Threat of Substitutes: The threat 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 Areva introduced 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 actually provided various factors for not releasing Case Study Help under Areva name, we have actually a suggested marketing mix for Case Study Help given below if Areva decides to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Automobile services' for a variety of reasons. There are presently 89257 establishments in this sector and a high usage of around 58900 pounds. is being used by 36.1 % of the market. This market has an additional growth potential of 10.1% which might be a sufficient niche market segment 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 also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic pointer' and 'vari-drop' so that the customer can choose whether he wants to go with 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 sold through suppliers or by means of direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to acquire the item on his own.
Areva would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Areva for releasing Case Study Help.
Place: A circulation model where Areva straight sends the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be used by Areva. Considering that the sales group is currently taken part in selling instantaneous adhesives and they do not have know-how in offering dispensers, including them in the selling process would be pricey particularly as each sales call costs roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: Although a low advertising budget plan must have been assigned to Case Study Help however the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested marketing strategy costing $51816 is suggested for at first introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in automobile upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
