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Astor Park Hotel Case Study Solution
Astor Park Hotel Case Study Help
Astor Park Hotel Case Study Analysis
The following area concentrates on the of marketing for Astor Park Hotel where the company's clients, rivals and core competencies have evaluated in order to validate whether the decision to launch Case Study Help under Astor Park Hotel trademark name would be a possible option or not. We have to start with looked at the type of clients that Astor Park Hotel handle while an examination of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Astor Park Hotel name.
Astor Park Hotel customers can be segmented into 2 groups, commercial clients and final customers. Both the groups utilize Astor Park Hotel high performance adhesives while the company is not only associated with the production of these adhesives but also markets them to these customer groups. There are 2 kinds of items that are being offered to these prospective markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis considering that 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 roughly 890,000 in the United States in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Astor Park Hotel potential market or customer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair work and overhauling business (MRO) and producers handling items made from leather, metal, wood and plastic. This variety in customers suggests that Astor Park Hotel can target has different options in terms of segmenting the marketplace for its new product specifically as each of these groups would be requiring the exact same kind of item with respective changes in demand, product packaging or quantity. Nevertheless, the consumer is not cost sensitive or brand mindful so releasing a low priced dispenser under Astor Park Hotel name is not an advised option.
Astor Park Hotel is not simply a maker of adhesives but takes pleasure in market management in the instantaneous adhesive industry. The company has its own competent and qualified sales force which adds value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Astor Park Hotel believes in exclusive circulation as shown by the truth that it has actually chosen to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for expanding reach by means of suppliers. The company's reach is not limited to North America just as it likewise delights in international sales. With 1400 outlets spread out all across The United States and Canada, Astor Park Hotel has its in-house production plants rather than using out-sourcing as the preferred method.
Core proficiencies are not limited to adhesive production only as Astor Park Hotel likewise focuses on making adhesive dispensing devices to assist in making use of its items. This double production method gives Astor Park Hotel an edge over rivals given that none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these rivals offers straight to the customer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Astor Park Hotel, it is essential to highlight the company's weaknesses.
The business's sales staff is proficient in training suppliers, the reality remains that the sales team is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it must also be kept in mind that the distributors are revealing reluctance when it concerns selling devices that requires maintenance which increases the challenges of offering devices under a specific brand.
The business has items aimed at the high end of the market if we look at Astor Park Hotel product line in adhesive equipment especially. If Astor Park Hotel offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Astor Park Hotel high-end product line, sales cannibalization would certainly be impacting Astor Park Hotel sales income if the adhesive equipment is offered under the company's brand.
We can see sales cannibalization affecting 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 threat which could decrease Astor Park Hotel income. The reality that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good 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.
Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or rate awareness which provides us 2 extra reasons for not launching a low priced product under the business's trademark name.
The competitive environment of Astor Park Hotel would be studied through Porter's 5 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 particularly as the purchaser has low understanding about the product. While business like Astor Park Hotel have actually handled to train distributors regarding adhesives, the last consumer depends on suppliers. Roughly 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: Offered the fact 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 buyer. Nevertheless, the fact remains that the supplier does not have much impact over the purchaser at this point especially as the buyer does not show brand name acknowledgment or rate sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a major control over the real sales, this shows that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market indicates that the market permits ease of entry. However, if we look at Astor Park Hotel in particular, the company has double capabilities in terms of being a maker of adhesive dispensers and instantaneous adhesives. Potential hazards in devices giving industry are low which shows the possibility of creating brand awareness in not only instant adhesives however also in dispensing adhesives as none of the market players has managed to place itself in dual capabilities.
Hazard of Substitutes: The danger of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth remains that if Astor Park Hotel introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided various reasons for not introducing Case Study Help under Astor Park Hotel name, we have actually a suggested marketing mix for Case Study Help offered listed below if Astor Park Hotel decides to proceed with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a number of reasons. There are presently 89257 establishments in this segment and a high use of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional development capacity of 10.1% which might be a good enough niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the fact that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being cost usage with SuperBonder. The item would be sold without the 'glumetic tip' and 'vari-drop' so that the customer can decide whether he wishes to go with either of the two accessories or not.
Price: The suggested price 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. This rate would not include the cost of the 'vari tip' or the 'glumetic tip'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to acquire the product on his own. This would increase the possibility of affecting mechanics to purchase the item for usage in their everyday maintenance jobs.
Astor Park Hotel would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Astor Park Hotel for releasing Case Study Help.
Place: A distribution design where Astor Park Hotel directly sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Astor Park Hotel. Because the sales group is currently taken part in selling immediate adhesives and they do not have competence in offering dispensers, including them in the selling procedure would be pricey specifically as each sales call expenses around $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: A low promotional budget should have been appointed to Case Study Help however 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 recommended marketing strategy costing $51816 is advised for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in automobile upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
