The following area concentrates on the of marketing for Atlantida where the business's consumers, rivals and core proficiencies have examined in order to validate whether the decision to launch Case Study Help under Atlantida trademark name would be a feasible alternative or not. We have to start with looked at the type of customers that Atlantida handle while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Atlantida name.
Atlantida consumers can be segmented into two groups, last consumers and industrial clients. Both the groups use Atlantida high performance adhesives while the company is not just associated with the production of these adhesives but also markets them to these client groups. There are two kinds of products that are being offered to these prospective markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of instant adhesives for this analysis given that the marketplace for the latter has a lower potential for Atlantida compared to that of immediate adhesives.
The overall market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have actually been determined earlier.If we look at a breakdown of Atlantida prospective market or customer groups, we can see that the company offers to OEMs (Original Devices Producers), Do-it-Yourself customers, repair work and revamping companies (MRO) and producers handling products made from leather, plastic, wood and metal. This diversity in customers recommends that Atlantida can target has different alternatives in regards to segmenting the market for its new item specifically as each of these groups would be needing the very same type of item with particular changes in packaging, demand or amount. Nevertheless, the client is not cost sensitive or brand name mindful so releasing a low priced dispenser under Atlantida name is not a suggested option.
Atlantida is not simply a manufacturer of adhesives however takes pleasure in market leadership in the immediate adhesive market. The business has its own skilled and qualified sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Atlantida believes in unique circulation as indicated by the reality that it has actually picked to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for broadening reach via suppliers. The company's reach is not limited to North America only as it likewise delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Atlantida has its internal production plants instead of using out-sourcing as the favored strategy.
Core competences are not limited to adhesive manufacturing only as Atlantida also focuses on making adhesive dispensing devices to facilitate making use of its items. This dual production strategy offers Atlantida an edge over competitors considering that none of the rivals of giving devices makes instantaneous adhesives. Additionally, none of these rivals sells straight to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Atlantida, it is necessary to highlight the company's weaknesses also.
Although the business's sales staff is knowledgeable in training suppliers, the truth stays that the sales team is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. Nevertheless, it needs to also be noted that the distributors are showing hesitation when it comes to offering devices that needs servicing which increases the difficulties of offering devices under a specific brand.
If we look at Atlantida product line in adhesive devices especially, the business has products focused on the high end of the marketplace. If Atlantida 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 Atlantida high-end line of product, sales cannibalization would definitely be impacting Atlantida sales profits if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Atlantida 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible threat which could reduce Atlantida profits. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost consciousness which provides us two extra factors for not launching a low priced item under the business's trademark name.
The competitive environment of Atlantida 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 especially as the purchaser has low understanding about the item. While companies like Atlantida have handled to train distributors concerning adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made straight by makers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by three gamers, it could be said that the supplier delights in a greater bargaining power compared to the buyer. The reality stays that the supplier does not have much influence over the purchaser at this point particularly as the purchaser does not show brand name acknowledgment or price sensitivity. This indicates that the distributor has the greater power when it concerns the adhesive market while the purchaser and the manufacturer 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 competitors in the immediate adhesive market indicates that the market permits ease of entry. Nevertheless, if we take a look at Atlantida in particular, the company has double capabilities in regards to being a producer of immediate adhesives and adhesive dispensers. Possible dangers in devices dispensing market are low which reveals the possibility of producing brand awareness in not only immediate adhesives however also in giving adhesives as none of the market players has handled to place itself in dual capabilities.
Risk of Substitutes: The hazard of alternatives in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Atlantida presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given various factors for not launching Case Study Help under Atlantida name, we have actually a recommended marketing mix for Case Study Help provided listed below if Atlantida decides to go on 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 additional development potential of 10.1% which may be a great enough specific niche market section for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the truth that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being offered for use with SuperBonder.
Price: The suggested cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor lorry maintenance shop requires to purchase the item on his own.
Atlantida would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Atlantida for releasing Case Study Help.
Place: A circulation design where Atlantida directly sends the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Atlantida. Considering that the sales team is currently engaged in offering instantaneous adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be pricey especially as each sales call costs roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: Although a low promotional budget plan should have been designated to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended marketing plan costing $51816 is suggested for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in lorry maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).