Aspen Aerogels Case Study Help Checklist

Aspen Aerogels Case Study Help Checklist

Aspen Aerogels Case Study Solution
Aspen Aerogels Case Study Help
Aspen Aerogels Case Study Analysis

Analyses for Evaluating Aspen Aerogels decision to launch Case Study Solution

The following area focuses on the of marketing for Aspen Aerogels where the company's consumers, rivals and core competencies have evaluated in order to justify whether the choice to introduce Case Study Help under Aspen Aerogels trademark name would be a possible option or not. We have to start with taken a look at the type of consumers that Aspen Aerogels handle while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Aspen Aerogels name.
Aspen Aerogels Case Study Solution

Customer Analysis

Both the groups use Aspen Aerogels high efficiency adhesives while the business is not only included in the production of these adhesives but also markets them to these client groups. We would be focusing on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Aspen Aerogels compared to that of instantaneous adhesives.

The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have been recognized earlier.If we look at a breakdown of Aspen Aerogels possible market or customer groups, we can see that the business sells to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair work and overhauling business (MRO) and producers dealing in items made from leather, plastic, metal and wood. This variety in consumers recommends that Aspen Aerogels can target has numerous alternatives in terms of segmenting the marketplace for its brand-new product specifically as each of these groups would be requiring the same type of product with respective changes in demand, product packaging or quantity. The consumer is not cost sensitive or brand name mindful so launching a low priced dispenser under Aspen Aerogels name is not an advised choice.

Company Analysis

Aspen Aerogels is not just a producer of adhesives but delights in market leadership in the instantaneous adhesive market. The company has its own experienced and certified sales force which includes worth to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Aspen Aerogels believes in exclusive distribution as shown by the truth that it has picked to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be checked out for expanding reach via suppliers. The company's reach is not restricted to North America just as it also delights in global sales. With 1400 outlets spread out all across North America, Aspen Aerogels has its in-house production plants rather than utilizing out-sourcing as the preferred method.

Core skills are not restricted to adhesive manufacturing just as Aspen Aerogels likewise focuses on making adhesive giving devices to help with the use of its products. This double production strategy gives Aspen Aerogels an edge over rivals since none of the competitors of giving equipment makes instantaneous adhesives. Additionally, none of these rivals offers directly to the customer either and makes use of suppliers for connecting to clients. While we are looking at the strengths of Aspen Aerogels, it is necessary to highlight the business's weak points also.

Although the business's sales staff is competent in training suppliers, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It must likewise be kept in mind that the suppliers are showing hesitation when it comes to selling devices that needs servicing which increases the challenges of offering devices under a particular brand name.

The business has actually items intended at the high end of the market if we look at Aspen Aerogels item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Aspen Aerogels offers Case Study Help under the very same portfolio. Offered the truth that Case Study Help is priced lower than Aspen Aerogels high-end product line, sales cannibalization would definitely be impacting Aspen Aerogels sales earnings if the adhesive devices is sold under the business's brand.

We can see sales cannibalization affecting Aspen Aerogels 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible threat which could decrease Aspen Aerogels profits. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for launching 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.

In addition, if we look at the market in general, the adhesives market does disappoint brand name orientation or price awareness which offers us 2 additional reasons for not releasing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Aspen Aerogels would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sections with Aspen Aerogels enjoying management and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market competition in between these players could be called 'intense' as the consumer is not brand mindful and each of these players has prominence in terms of market share, the fact still remains that the market is not saturated and still has a number of market sectors which can be targeted as potential specific niche markets even when introducing an adhesive. Nevertheless, we can even mention the reality that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for instantaneous adhesives provides development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low knowledge about the item. While companies like Aspen Aerogels have actually handled to train distributors regarding adhesives, the last customer is dependent on suppliers. Around 72% of sales are made directly by producers and suppliers for instant 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 said that the supplier enjoys a greater bargaining power compared to the buyer. The fact stays that the provider does not have much influence over the buyer at this point specifically as the buyer does not show brand name acknowledgment or cost level of sensitivity. This indicates that the supplier has the greater power when it concerns the adhesive market while the buyer and the manufacturer do not have a major control over the actual sales.

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 instantaneous adhesive market shows that the market permits ease of entry. If we look at Aspen Aerogels in specific, the business has dual abilities in terms of being a maker of instant adhesives and adhesive dispensers. Prospective hazards in devices giving industry are low which reveals the possibility of producing brand name awareness in not only instant adhesives however also in dispensing adhesives as none of the industry players has actually managed to position itself in double capabilities.

Risk of Substitutes: The threat of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Aspen Aerogels introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).

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

Aspen Aerogels Case Study Help

Despite the fact that our 3C analysis has given different reasons for not introducing Case Study Help under Aspen Aerogels name, we have actually a suggested marketing mix for Case Study Help provided below if Aspen Aerogels decides to go ahead with the launch.

Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of factors. There are currently 89257 facilities in this section and a high usage of around 58900 lbs. is being utilized by 36.1 % of the market. This market has an additional growth capacity of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wants to select 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 suppliers or by means of direct selling. This price would not consist of the cost of the 'vari pointer' or the 'glumetic suggestion'. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to acquire the item on his own. This would increase the possibility of influencing mechanics to purchase the product for use in their day-to-day maintenance jobs.

Aspen Aerogels would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Aspen Aerogels for introducing Case Study Help.

Place: A circulation model where Aspen Aerogels directly sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Aspen Aerogels. Since the sales team is currently taken part in selling instant adhesives and they do not have knowledge in offering dispensers, including them in the selling procedure would be expensive specifically as each sales call costs around $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a favorable option.

Promotion: A low promotional budget needs to have been designated to Case Study Help but the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is suggested for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry maintenance shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Aspen Aerogels Case Study Analysis

Although a suggested strategy in the form of a marketing mix has actually been discussed for Case Study Help, the reality still stays that the product would not match Aspen Aerogels product line. We have a look at appendix 2, we can see how the total gross profitability for the two models is expected to be roughly $49377 if 250 units of each model are produced each year according to the plan. The initial planned marketing is around $52000 per year which would be putting a pressure on the company's resources leaving Aspen Aerogels with a negative net earnings if the expenses are assigned to Case Study Help only.

The truth that Aspen Aerogels has actually already incurred an initial investment of $48000 in the form of capital cost and model development suggests that the income from Case Study Help is inadequate to carry out the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of need is not a preferable choice especially of it is affecting the sale of the business's income creating models.