Astor Park Hotel Case Study Help Checklist

Astor Park Hotel Case Study Help Checklist

Astor Park Hotel Case Study Solution
Astor Park Hotel Case Study Help
Astor Park Hotel Case Study Analysis

Analyses for Evaluating Astor Park Hotel decision to launch Case Study Solution

The following section focuses on the of marketing for Astor Park Hotel where the business's customers, competitors and core proficiencies have actually examined in order to validate whether the decision to release Case Study Help under Astor Park Hotel trademark name would be a feasible choice or not. We have actually firstly taken a look at the kind of customers that Astor Park Hotel deals in while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Astor Park Hotel name.
Astor Park Hotel Case Study Solution

Customer Analysis

Both the groups utilize Astor Park Hotel high efficiency adhesives while the business is not just involved in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower potential for Astor Park Hotel compared to that of immediate adhesives.

The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Astor Park Hotel potential market or client groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and manufacturers handling products made of leather, metal, wood and plastic. This variety in consumers suggests that Astor Park Hotel can target has numerous options in regards to segmenting the market for its brand-new item specifically as each of these groups would be needing the exact same type of product with particular modifications in need, quantity or product packaging. The client is not cost sensitive or brand mindful so launching a low priced dispenser under Astor Park Hotel name is not a suggested option.

Company Analysis

Astor Park Hotel is not just a producer of adhesives however delights in market management in the instantaneous adhesive industry. The business has its own proficient and competent sales force which adds value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Astor Park Hotel believes in unique distribution as indicated by the fact that it has actually selected to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach via distributors. The company's reach is not restricted to The United States and Canada just as it likewise takes pleasure in international sales. With 1400 outlets spread out all throughout North America, Astor Park Hotel has its in-house production plants rather than using out-sourcing as the favored strategy.

Core proficiencies are not restricted to adhesive production only as Astor Park Hotel likewise focuses on making adhesive dispensing devices to help with the use of its products. This dual production technique offers Astor Park Hotel an edge over competitors considering that none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these rivals sells straight to the consumer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Astor Park Hotel, it is necessary to highlight the business's weak points as well.

The company's sales personnel is proficient in training distributors, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it needs to also be noted that the suppliers are showing unwillingness when it comes to selling devices that needs maintenance which increases the obstacles of offering equipment under a particular brand.

The company has products aimed at the high end of the market if we look at Astor Park Hotel item line in adhesive devices especially. If Astor Park Hotel offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Astor Park Hotel high-end line of product, sales cannibalization would definitely be affecting Astor Park Hotel sales revenue if the adhesive devices is offered under the business's brand.

We can see sales cannibalization impacting Astor Park Hotel 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible danger which might decrease Astor Park Hotel revenue. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or rate awareness which provides us 2 additional reasons for not launching a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Astor Park Hotel would be studied by means of 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 development capacity due to the presence of fragmented sections with Astor Park Hotel enjoying leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry rivalry in between these players could be called 'extreme' as the customer is not brand name mindful and each of these players has prominence in regards to market share, the reality still stays that the market is not saturated and still has several market segments which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization might be leading to market rivalry in the adhesive dispenser market while the market for instant adhesives uses development potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the purchaser has low knowledge about the item. While business like Astor Park Hotel have managed to train suppliers concerning adhesives, the last consumer is dependent on distributors. Approximately 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by three gamers, it could be stated that the provider enjoys a higher bargaining power compared to the buyer. However, the reality stays that the supplier does not have much impact over the buyer at this moment especially as the buyer does not show brand acknowledgment or cost level of sensitivity. This shows that the supplier has the higher power when it pertains to the adhesive market while the buyer and the manufacturer do not have a major control over the real 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. Nevertheless, if we take a look at Astor Park Hotel in particular, the business has double capabilities in regards to being a producer of adhesive dispensers and immediate adhesives. Possible risks in devices giving market are low which shows the possibility of creating brand awareness in not only instant adhesives however likewise in giving adhesives as none of the market gamers has managed to place itself in dual capabilities.

Hazard of Substitutes: The danger of replacements in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth stays that if Astor Park Hotel presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).

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

Astor Park Hotel Case Study Help

Despite the fact that our 3C analysis has provided numerous reasons for not launching Case Study Help under Astor Park Hotel name, we have a suggested marketing mix for Case Study Help provided listed below if Astor Park Hotel decides to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. There are presently 89257 establishments in this sector and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional development potential of 10.1% which may be a good enough specific niche market section for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the truth that the Diy market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can choose whether he wants to opt for either of the two devices or not.

Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep store needs to acquire the product on his own.

Astor Park Hotel would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Astor Park Hotel for launching Case Study Help.

Place: A circulation design where Astor Park Hotel straight sends out the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Astor Park Hotel. Given that the sales team is already taken part in selling immediate adhesives and they do not have know-how in offering dispensers, including them in the selling process would be pricey specifically as each sales call expenses roughly $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: Although a low marketing spending plan ought to have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested marketing plan costing $51816 is recommended for at first introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in car maintenance shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Astor Park Hotel Case Study Analysis

A suggested strategy of action in the type of a marketing mix has been gone over for Case Study Help, the truth still stays that the product would not complement Astor Park Hotel item line. We take a look at appendix 2, we can see how the overall gross success for the two designs is anticipated to be around $49377 if 250 units of each design are produced annually as per the plan. Nevertheless, the preliminary prepared advertising is approximately $52000 per year which would be putting a strain on the company's resources leaving Astor Park Hotel with an unfavorable net income if the costs are assigned to Case Study Help just.

The truth that Astor Park Hotel has actually already sustained an initial financial investment of $48000 in the form of capital cost and model development suggests that the profits from Case Study Help is not enough to undertake the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable choice especially of it is impacting the sale of the business's income producing designs.