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Atlantida Case Study Solution
Atlantida Case Study Help
Atlantida Case Study Analysis
The following area concentrates on the of marketing for Atlantida where the business's customers, rivals and core proficiencies have examined in order to justify whether the decision to launch Case Study Help under Atlantida trademark name would be a possible alternative or not. We have actually firstly taken a look at the type of consumers that Atlantida handle while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Atlantida name.
Atlantida customers can be segmented into two groups, industrial consumers and final customers. Both the groups use Atlantida high performance adhesives while the business is not just involved in the production of these adhesives however likewise markets them to these consumer groups. There are two types of items that are being sold to these prospective 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 capacity for Atlantida compared to that of immediate adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have actually been recognized earlier.If we take a look at a breakdown of Atlantida prospective market or consumer groups, we can see that the company offers to OEMs (Original Devices Producers), Do-it-Yourself clients, repair and revamping business (MRO) and makers handling products made of leather, wood, metal and plastic. This diversity in consumers recommends that Atlantida can target has different choices in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be needing the very same kind of product with respective changes in amount, product packaging or demand. The customer is not rate delicate or brand name conscious so launching a low priced dispenser under Atlantida name is not a recommended choice.
Atlantida is not just a maker of adhesives but delights in market leadership in the instant adhesive industry. The company has its own skilled and competent sales force which adds worth to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.
Core proficiencies are not restricted to adhesive manufacturing just as Atlantida also concentrates on making adhesive dispensing devices to assist in the use of its products. This dual production strategy provides Atlantida an edge over competitors considering that none of the competitors of giving devices makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the customer either and uses distributors for connecting to clients. While we are looking at the strengths of Atlantida, it is essential to highlight the company's weak points.
Although the company's sales staff is skilled in training distributors, 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. It needs to likewise be noted that the distributors are revealing reluctance when it comes to selling equipment that requires maintenance which increases the challenges of offering equipment under a specific brand name.
The company has items intended at the high end of the market if we look at Atlantida product line in adhesive equipment particularly. If Atlantida offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Atlantida high-end product line, sales cannibalization would certainly be affecting Atlantida sales revenue if the adhesive devices is sold under the business's brand.
We can see sales cannibalization impacting Atlantida 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible hazard which might reduce Atlantida profits. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great 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 immediate adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or cost awareness which offers us 2 additional reasons for not introducing a low priced product under the company's brand name.
The competitive environment of Atlantida would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low understanding about the product. While business like Atlantida have actually managed to train distributors regarding adhesives, the final consumer depends on distributors. Roughly 72% of sales are made directly by manufacturers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is controlled by 3 gamers, it could be said that the provider enjoys a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much impact over the purchaser at this point specifically as the purchaser does not show brand acknowledgment or rate sensitivity. When it comes to the adhesive market while the buyer and the producer do not have a major control over the real sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market indicates that the market allows ease of entry. If we look at Atlantida in specific, the company has dual abilities in terms of being a maker of adhesive dispensers and instant adhesives. Possible risks in devices dispensing industry are low which shows the possibility of developing brand awareness in not just immediate adhesives however likewise in dispensing adhesives as none of the industry players has managed to position itself in double abilities.
Danger of Substitutes: The hazard of alternatives in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality remains that if Atlantida presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given different factors for not launching Case Study Help under Atlantida name, we have a suggested marketing mix for Case Study Help given below if Atlantida decides to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. There are currently 89257 establishments in this section and a high usage of roughly 58900 pounds. is being used by 36.1 % of the market. This market has an extra growth potential of 10.1% which may be a good enough niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wants to choose 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. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to purchase the item on his own.
Atlantida would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Atlantida for releasing Case Study Help.
Place: A circulation model where Atlantida directly sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Atlantida. Since the sales group is currently engaged in offering instant adhesives and they do not have competence in selling dispensers, involving them in the selling process would be expensive particularly as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low marketing spending plan should have been designated to Case Study Help however the truth 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 advertising strategy costing $51816 is recommended for at first presenting the item in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
