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Atlantic Corp Abridged Case Study Solution
Atlantic Corp Abridged Case Study Help
Atlantic Corp Abridged Case Study Analysis
The following section concentrates on the of marketing for Atlantic Corp Abridged where the company's customers, competitors and core proficiencies have examined in order to validate whether the choice to introduce Case Study Help under Atlantic Corp Abridged trademark name would be a practical alternative or not. We have to start with looked at the type of clients that Atlantic Corp Abridged deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Atlantic Corp Abridged name.
Both the groups utilize Atlantic Corp Abridged high performance adhesives while the company is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Atlantic Corp Abridged compared to that of instant adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Atlantic Corp Abridged potential market or client groups, we can see that the business offers to OEMs (Initial Equipment Producers), Do-it-Yourself consumers, repair and overhauling business (MRO) and producers dealing in products made of leather, wood, metal and plastic. This variety in customers recommends that Atlantic Corp Abridged can target has various choices in terms of segmenting the marketplace for its new item specifically as each of these groups would be requiring the same kind of item with respective changes in packaging, need or amount. However, the client is not price sensitive or brand name mindful so launching a low priced dispenser under Atlantic Corp Abridged name is not an advised choice.
Atlantic Corp Abridged is not simply a producer of adhesives however enjoys market leadership in the instant adhesive industry. The company has its own knowledgeable and certified sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives. Atlantic Corp Abridged believes in special distribution as suggested by the truth that it has chosen to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach through distributors. The business's reach is not limited to North America only as it also enjoys global sales. With 1400 outlets spread out all across The United States and Canada, Atlantic Corp Abridged has its internal production plants instead of using out-sourcing as the favored technique.
Core competences are not restricted to adhesive production only as Atlantic Corp Abridged likewise concentrates on making adhesive giving equipment to assist in using its products. This double production technique offers Atlantic Corp Abridged an edge over rivals because none of the rivals of giving devices makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the consumer either and utilizes suppliers for connecting to customers. While we are taking a look at the strengths of Atlantic Corp Abridged, it is important to highlight the business's weak points also.
Although the company's sales staff is knowledgeable 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 distributors when promoting adhesive devices. It must likewise be kept in mind that the distributors are showing hesitation when it comes to offering equipment that requires maintenance which increases the obstacles of offering devices under a specific brand name.
If we take a look at Atlantic Corp Abridged product line in adhesive equipment especially, the company has actually items aimed at the high end of the market. The possibility of sales cannibalization exists if Atlantic Corp Abridged offers Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Atlantic Corp Abridged high-end product line, sales cannibalization would definitely be affecting Atlantic Corp Abridged sales revenue if the adhesive devices is offered under the company's brand name.
We can see sales cannibalization affecting Atlantic Corp Abridged 27A Pencil Applicator which is priced at $275. There is another possible danger which might reduce Atlantic Corp Abridged revenue if Case Study Help is introduced under the business's brand. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching 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.
In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or cost awareness which gives us two extra factors for not releasing a low priced item under the business's brand.
The competitive environment of Atlantic Corp Abridged 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 industry is low particularly as the purchaser has low understanding about the item. While business like Atlantic Corp Abridged have actually managed to train distributors regarding adhesives, the final consumer depends on distributors. Around 72% of sales are made straight by producers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three players, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The truth stays that the supplier does not have much impact over the buyer at this point particularly as the buyer does not show brand acknowledgment or cost level of sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the maker and the buyer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market indicates that the market enables ease of entry. If we look at Atlantic Corp Abridged in specific, the business has dual capabilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Prospective risks in equipment giving industry are low which reveals the possibility of developing brand name awareness in not just immediate adhesives but likewise in giving adhesives as none of the industry gamers has actually handled to place itself in dual capabilities.
Danger of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Atlantic Corp Abridged introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered numerous reasons for not releasing Case Study Help under Atlantic Corp Abridged name, we have actually a recommended marketing mix for Case Study Help provided listed below if Atlantic Corp Abridged decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of reasons. There are presently 89257 establishments in this sector and a high usage of around 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra development capacity of 10.1% which may be a good enough niche market sector 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 safe and clean low priced adhesive is being cost usage with SuperBonder. The item would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wants to opt for 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 offered through suppliers or via direct selling. This price would not include the cost of the 'vari idea' or the 'glumetic pointer'. A price listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store requires to buy the product on his own. This would increase the possibility of influencing mechanics to purchase the product for usage in their everyday upkeep jobs.
Atlantic Corp Abridged would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net success for Atlantic Corp Abridged for launching Case Study Help.
Place: A circulation design where Atlantic Corp Abridged directly sends out the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Atlantic Corp Abridged. Considering that the sales group is already participated in offering instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling procedure would be pricey specifically as each sales call expenses roughly $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low marketing budget must have been assigned to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is suggested for at first introducing the product in the market. The prepared ads in magazines would be targeted at mechanics in car upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
