The following section concentrates on the of marketing for Athleta where the business's clients, competitors and core competencies have examined in order to validate whether the choice to release Case Study Help under Athleta trademark name would be a practical alternative or not. We have actually first of all looked at the kind of consumers that Athleta deals in while an evaluation of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Athleta name.
Athleta clients can be segmented into two groups, industrial customers and last customers. Both the groups use Athleta high performance adhesives while the company is not only involved in the production of these adhesives but also markets them to these consumer groups. There are 2 types of products that are being offered to these potential markets; immediate adhesives and anaerobic adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis given that the marketplace for the latter has a lower potential for Athleta 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 recognized earlier.If we look at a breakdown of Athleta possible market or client groups, we can see that the business sells to OEMs (Original Devices Producers), Do-it-Yourself customers, repair and overhauling companies (MRO) and makers handling products made of leather, wood, metal and plastic. This diversity in clients recommends that Athleta can target has different options in terms of segmenting the marketplace for its new item specifically as each of these groups would be needing the very same kind of product with respective changes in demand, product packaging or quantity. However, the customer is not price sensitive or brand mindful so launching a low priced dispenser under Athleta name is not a recommended alternative.
Athleta is not simply a maker of adhesives however enjoys market management in the instantaneous adhesive industry. The company has its own experienced and qualified sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core skills are not limited to adhesive manufacturing only as Athleta also specializes in making adhesive dispensing equipment to help with making use of its items. This dual production strategy gives Athleta an edge over competitors because none of the rivals of dispensing equipment makes instant adhesives. Additionally, none of these competitors sells directly to the customer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Athleta, it is essential to highlight the company's weaknesses.
Although the business's sales staff is knowledgeable in training suppliers, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it ought to also be noted that the distributors are revealing unwillingness when it comes to selling devices that needs servicing which increases the difficulties of offering equipment under a specific brand name.
The business has actually products intended at the high end of the market if we look at Athleta item line in adhesive equipment particularly. If Athleta sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Athleta high-end line of product, sales cannibalization would certainly be affecting Athleta sales revenue if the adhesive equipment is offered under the business's brand name.
We can see sales cannibalization affecting Athleta 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible hazard which could lower Athleta earnings. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a great 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 instantaneous adhesive.
Furthermore, if we look at the market in general, the adhesives market does not show brand orientation or rate awareness which gives us 2 additional reasons for not releasing a low priced product under the business's brand name.
The competitive environment of Athleta would be studied via 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 market is low particularly as the purchaser has low knowledge about the product. While business like Athleta have managed to train distributors concerning adhesives, the final consumer depends on distributors. Approximately 72% of sales are made directly by manufacturers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is controlled by 3 players, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. The fact remains that the provider does not have much impact over the purchaser at this point particularly as the buyer does not reveal brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the actual sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we take a look at Athleta in particular, the company has double abilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Possible hazards in equipment giving market are low which reveals the possibility of creating brand name awareness in not just instant adhesives but likewise in giving adhesives as none of the industry gamers has managed to position itself in dual capabilities.
Hazard of Substitutes: The risk of substitutes in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact remains that if Athleta presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous factors for not releasing Case Study Help under Athleta name, we have actually a suggested marketing mix for Case Study Help offered below if Athleta decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of factors. This market has an extra development capacity of 10.1% which might be an excellent enough niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the truth that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This rate would not consist of the cost of the 'vari tip' or the 'glumetic pointer'. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to buy the product on his own. This would increase the possibility of affecting mechanics to buy the product for use in their daily maintenance jobs.
Athleta would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Athleta for releasing Case Study Help.
Place: A distribution model where Athleta straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Athleta. Because the sales group is already taken part in offering instant adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be costly specifically as each sales call expenses roughly $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low promotional spending plan ought 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 costs sustained for production, the suggested marketing strategy costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in automobile upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).