Atlantic Corp Abridged Case Study Help Checklist

Atlantic Corp Abridged Case Study Help Checklist

Atlantic Corp Abridged Case Study Solution
Atlantic Corp Abridged Case Study Help
Atlantic Corp Abridged Case Study Analysis

Analyses for Evaluating Atlantic Corp Abridged decision to launch Case Study Solution

The following area focuses on the of marketing for Atlantic Corp Abridged where the business's clients, competitors and core proficiencies have assessed in order to justify whether the decision to release Case Study Help under Atlantic Corp Abridged brand would be a practical choice or not. We have firstly looked at the kind of clients that Atlantic Corp Abridged handle while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Atlantic Corp Abridged name.
Atlantic Corp Abridged Case Study Solution

Customer Analysis

Atlantic Corp Abridged customers can be segmented into two groups, final consumers and industrial clients. Both the groups utilize Atlantic Corp Abridged high performance adhesives while the company is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of products that are being sold to these prospective markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instant adhesives for this analysis given that the marketplace for the latter has a lower potential for Atlantic Corp Abridged compared to that of instantaneous adhesives.

The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Atlantic Corp Abridged possible market or customer groups, we can see that the business offers to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair and upgrading business (MRO) and manufacturers handling products made of leather, plastic, metal and wood. This diversity in customers suggests that Atlantic Corp Abridged can target has numerous alternatives in regards to segmenting the market for its brand-new item especially as each of these groups would be needing the same kind of product with particular changes in packaging, quantity or need. Nevertheless, the customer is not price delicate or brand name mindful so introducing a low priced dispenser under Atlantic Corp Abridged name is not an advised option.

Company Analysis

Atlantic Corp Abridged is not just a maker of adhesives but takes pleasure in market management in the instantaneous adhesive industry. The business has its own skilled and competent sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.

Core proficiencies are not restricted to adhesive production only as Atlantic Corp Abridged also specializes in making adhesive dispensing devices to assist in the use of its products. This double production strategy offers Atlantic Corp Abridged an edge over competitors considering that none of the competitors of dispensing equipment makes instantaneous adhesives. Additionally, none of these competitors offers directly to the consumer either and makes use of suppliers for reaching out to consumers. While we are taking a look at the strengths of Atlantic Corp Abridged, it is important to highlight the business's weaknesses too.

Although the company's sales staff is experienced in training suppliers, the truth stays that the sales group is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It needs to also be kept in mind that the suppliers are revealing reluctance when it comes to selling devices that needs servicing which increases the challenges of selling equipment under a particular brand name.

If we look at Atlantic Corp Abridged line of product in adhesive equipment particularly, the company has actually products targeted at the high-end of the market. If Atlantic Corp Abridged offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Atlantic Corp Abridged high-end product line, sales cannibalization would absolutely be affecting Atlantic Corp Abridged sales revenue if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization impacting Atlantic Corp Abridged 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Atlantic Corp Abridged revenue if Case Study Help is introduced under the business's brand name. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the fact 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 disappoint brand name orientation or cost awareness which offers us two additional reasons for not introducing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Atlantic Corp Abridged would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sectors with Atlantic Corp Abridged enjoying management and a combined market share of 75% with 2 other market gamers, Eastman and Permabond. While industry competition in between these players could be called 'intense' as the consumer is not brand name mindful and each of these gamers has prominence in regards to market share, the reality still remains that the market is not saturated and still has a number of market sections which can be targeted as prospective specific niche markets even when introducing an adhesive. However, we can even mention the truth that sales cannibalization may be causing industry rivalry in the adhesive dispenser market while the market for instant adhesives offers development potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low knowledge about the item. While business like Atlantic Corp Abridged have actually managed to train suppliers relating to adhesives, the final consumer depends on distributors. Approximately 72% of sales are made directly by producers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the truth that the adhesive market is controlled by 3 gamers, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the purchaser at this point particularly as the purchaser does not show brand name acknowledgment or rate level of sensitivity. This indicates that the distributor has the greater power when it concerns the adhesive market while the manufacturer and the purchaser do not have a major control over the actual sales.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market shows that the market allows ease of entry. However, if we look at Atlantic Corp Abridged in particular, the business has double capabilities in regards to being a maker of immediate adhesives and adhesive dispensers. Possible hazards in equipment dispensing market are low which shows the possibility of producing brand awareness in not only immediate adhesives however also in giving adhesives as none of the industry players has actually handled to position itself in double abilities.

Threat of Substitutes: The risk of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Atlantic Corp Abridged presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).

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

Atlantic Corp Abridged Case Study Help

Despite the fact that our 3C analysis has actually provided numerous reasons for not releasing Case Study Help under Atlantic Corp Abridged name, we have a suggested marketing mix for Case Study Help given below if Atlantic Corp Abridged chooses to go on with the launch.

Product & Target Market: The target audience picked for Case Study Help is 'Motor vehicle services' for a number of reasons. There are currently 89257 facilities in this segment and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an extra development capacity of 10.1% which might be a sufficient niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality 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 tip' and 'vari-drop' so that the customer can decide whether he wishes to go with either of the two devices or not.

Price: The suggested cost 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 cost below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance shop requires to purchase the product on his own.

Atlantic Corp Abridged would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Atlantic Corp Abridged for releasing Case Study Help.

Place: A distribution design where Atlantic Corp Abridged directly sends the item to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Atlantic Corp Abridged. Considering that the sales team is already taken part in offering instant adhesives and they do not have expertise in offering dispensers, including them in the selling process would be pricey 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 choice.

Promotion: A low marketing budget must have been appointed to Case Study Help however the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising plan costing $51816 is advised for initially presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in car maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Atlantic Corp Abridged Case Study Analysis

A recommended plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the truth still remains that the product would not match Atlantic Corp Abridged product line. We take a look at appendix 2, we can see how the total gross profitability for the two models is expected to be roughly $49377 if 250 units of each model are made per year based on the strategy. Nevertheless, the initial prepared advertising is approximately $52000 per year which would be putting a stress on the company's resources leaving Atlantic Corp Abridged with an unfavorable net income if the expenditures are assigned to Case Study Help only.

The fact that Atlantic Corp Abridged has already incurred an initial financial investment of $48000 in the form of capital cost and prototype development indicates that the revenue from Case Study Help is insufficient to carry out the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a more effective choice especially of it is impacting the sale of the business's revenue producing designs.