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Assured Guaranty Case Study Solution
Assured Guaranty Case Study Help
Assured Guaranty Case Study Analysis
The following area focuses on the of marketing for Assured Guaranty where the company's clients, competitors and core competencies have actually evaluated in order to justify whether the choice to release Case Study Help under Assured Guaranty brand name would be a feasible alternative or not. We have firstly taken a look at the kind of customers that Assured Guaranty 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 Assured Guaranty name.
Both the groups utilize Assured Guaranty high efficiency adhesives while the company is not only included in the production of these adhesives but 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 Assured Guaranty compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we look at a breakdown of Assured Guaranty possible market or consumer groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair and revamping companies (MRO) and makers handling products made of leather, plastic, wood and metal. This variety in consumers recommends that Assured Guaranty can target has numerous options in terms of segmenting the marketplace for its brand-new item especially as each of these groups would be needing the same kind of item with particular modifications in product packaging, amount or demand. The consumer is not price delicate or brand name conscious so releasing a low priced dispenser under Assured Guaranty name is not a recommended alternative.
Assured Guaranty is not just a manufacturer of adhesives but enjoys market leadership in the instantaneous adhesive market. The company has its own knowledgeable and qualified sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Assured Guaranty believes in unique distribution as indicated by the fact that it has actually chosen to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach via suppliers. The company's reach is not limited to North America only as it likewise takes pleasure in global sales. With 1400 outlets spread all throughout The United States and Canada, Assured Guaranty has its in-house production plants rather than utilizing out-sourcing as the preferred technique.
Core proficiencies are not limited to adhesive production just as Assured Guaranty also specializes in making adhesive dispensing equipment to help with making use of its items. This dual production technique gives Assured Guaranty an edge over rivals considering that none of the competitors of dispensing equipment makes instant adhesives. In addition, none of these rivals offers straight to the customer either and uses suppliers for connecting to clients. While we are looking at the strengths of Assured Guaranty, it is very important to highlight the company's weaknesses as well.
The business's sales staff is skilled in training suppliers, the reality stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. It must likewise be kept in mind that the distributors are revealing reluctance when it comes to selling devices that requires maintenance which increases the difficulties of offering devices under a particular brand name.
If we look at Assured Guaranty product line in adhesive devices particularly, the business has actually items targeted at the luxury of the marketplace. The possibility of sales cannibalization exists if Assured Guaranty offers Case Study Help under the exact same portfolio. Given the truth that Case Study Help is priced lower than Assured Guaranty high-end line of product, sales cannibalization would certainly be impacting Assured Guaranty sales income if the adhesive equipment is sold under the business's brand name.
We can see sales cannibalization impacting Assured Guaranty 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could decrease Assured Guaranty profits. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or price awareness which gives us 2 additional factors for not releasing a low priced product under the business's brand.
The competitive environment of Assured Guaranty would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the buyer has low knowledge about the item. While companies like Assured Guaranty have actually managed to train distributors concerning adhesives, the last consumer depends on distributors. Roughly 72% of sales are made directly by producers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three players, it could be said that the supplier delights in a greater bargaining power compared to the buyer. However, the fact remains that the provider does not have much impact over the buyer at this point particularly as the purchaser does not show brand name acknowledgment or price level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the actual sales, this shows that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market shows that the market permits ease of entry. If we look at Assured Guaranty in particular, the company has double capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Possible dangers in devices dispensing market are low which reveals the possibility of producing brand awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the industry gamers has actually handled to position itself in dual abilities.
Hazard of Substitutes: The danger of replacements in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact remains that if Assured Guaranty introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered different factors for not releasing Case Study Help under Assured Guaranty name, we have actually a suggested marketing mix for Case Study Help given listed below if Assured Guaranty decides to proceed with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a number of factors. There are presently 89257 establishments in this section and a high use of around 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra development potential of 10.1% which might be a good enough specific niche market section for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can decide whether he wishes to go with either of the two devices or not.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to acquire the item on his own.
Assured Guaranty would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Assured Guaranty for launching Case Study Help.
Place: A distribution model where Assured Guaranty straight sends the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Assured Guaranty. Considering that the sales group is currently engaged in selling immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be expensive specifically as each sales call expenses approximately $120. The distributors are already offering dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low advertising budget plan should have been designated to Case Study Help but the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing strategy costing $51816 is suggested for initially presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in car upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
