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Aspen Aerogels Case Study Solution
Aspen Aerogels Case Study Help
Aspen Aerogels Case Study Analysis
The following section focuses on the of marketing for Aspen Aerogels where the business's consumers, rivals and core competencies have examined in order to validate whether the choice to introduce Case Study Help under Aspen Aerogels brand would be a possible option or not. We have to start with looked at the type of consumers that Aspen Aerogels deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Aspen Aerogels name.
Aspen Aerogels consumers can be segmented into two groups, last customers and industrial customers. Both the groups use Aspen Aerogels high performance adhesives while the business is not just associated with the production of these adhesives but also markets them to these consumer groups. There are two types of products that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Aspen Aerogels compared to that of instantaneous adhesives.
The total market for instant adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Aspen Aerogels prospective market or customer groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and producers handling products made from leather, wood, plastic and metal. This diversity in customers recommends that Aspen Aerogels can target has numerous choices in terms of segmenting the marketplace for its new product especially as each of these groups would be needing the very same kind of product with particular changes in product packaging, need or quantity. The client is not cost sensitive or brand name mindful so launching a low priced dispenser under Aspen Aerogels name is not a suggested option.
Aspen Aerogels is not just a manufacturer of adhesives but delights in market management in the instant adhesive market. The business has its own knowledgeable and certified sales force which includes worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.
Core skills are not restricted to adhesive manufacturing only as Aspen Aerogels likewise focuses on making adhesive giving equipment to assist in using its items. This dual production technique offers Aspen Aerogels an edge over competitors since none of the competitors of giving equipment makes instant adhesives. Additionally, none of these competitors sells directly to the customer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Aspen Aerogels, it is important to highlight the business's weak points.
Although the company's sales staff is competent in training distributors, the fact stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it should likewise be kept in mind that the distributors are revealing unwillingness when it comes to selling equipment that requires servicing which increases the obstacles of selling equipment under a specific trademark name.
The business has actually items aimed at the high end of the market if we look at Aspen Aerogels product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Aspen Aerogels offers Case Study Help under the same portfolio. Given the fact that Case Study Help is priced lower than Aspen Aerogels high-end product line, sales cannibalization would definitely be impacting Aspen Aerogels sales revenue 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 danger which could reduce Aspen Aerogels income. The truth that $175000 has been spent in promoting SuperBonder recommends 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 not show brand name orientation or cost consciousness which gives us 2 extra reasons for not launching a low priced item under the company's trademark name.
The competitive environment of Aspen Aerogels 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 industry is low especially as the purchaser has low knowledge about the product. While business like Aspen Aerogels have handled to train suppliers relating to adhesives, the last consumer depends on distributors. Roughly 72% of sales are made directly by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 players, it could be stated that the supplier delights in a higher bargaining power compared to the buyer. The reality remains that the provider does not have much influence over the buyer at this point particularly as the purchaser does not show brand recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a major control over the real sales, this shows that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the market permits ease of entry. If we look at Aspen Aerogels in specific, the business has dual capabilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Possible dangers in devices dispensing market are low which reveals the possibility of producing brand awareness in not just instant adhesives however also in giving adhesives as none of the industry players has actually handled to place itself in double abilities.
Danger of Substitutes: The threat of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Aspen Aerogels presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given different factors for not releasing Case Study Help under Aspen Aerogels name, we have actually a suggested marketing mix for Case Study Help offered 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 use of roughly 58900 lbs. is being used by 36.1 % of the marketplace. This market has an extra development potential of 10.1% which might be a sufficient specific niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being cost usage with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to select either of the two accessories or not.
Price: The recommended price 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 rate would not consist of the cost of the 'vari suggestion' or the 'glumetic pointer'. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to buy the product on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their day-to-day upkeep tasks.
Aspen Aerogels would only be getting $157 per unit as displayed 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 straight sends out the product to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Aspen Aerogels. Since the sales group is already taken part in selling instant adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be expensive particularly 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: A low promotional budget must have been assigned to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is advised for initially presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
