The following area focuses on the of marketing for Atp Private Equity Partners A January 2002 where the company's customers, competitors and core proficiencies have assessed in order to validate whether the decision to introduce Case Study Help under Atp Private Equity Partners A January 2002 brand name would be a possible option or not. We have actually firstly looked at the type of clients that Atp Private Equity Partners A January 2002 deals in while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Atp Private Equity Partners A January 2002 name.
Atp Private Equity Partners A January 2002 clients can be segmented into 2 groups, final customers and industrial customers. Both the groups utilize Atp Private Equity Partners A January 2002 high performance adhesives while the company is not just associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of products that are being offered to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower capacity for Atp Private Equity Partners A January 2002 compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have actually been identified earlier.If we look at a breakdown of Atp Private Equity Partners A January 2002 prospective market or consumer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and manufacturers dealing in items made from leather, plastic, wood and metal. This diversity in customers recommends that Atp Private Equity Partners A January 2002 can target has various alternatives in terms of segmenting the marketplace for its new product specifically as each of these groups would be needing the exact same kind of product with respective changes in amount, product packaging or demand. The client is not rate sensitive or brand conscious so launching a low priced dispenser under Atp Private Equity Partners A January 2002 name is not an advised choice.
Atp Private Equity Partners A January 2002 is not simply a maker of adhesives however delights in market management in the instant adhesive industry. The company has its own proficient and certified sales force which adds 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 Atp Private Equity Partners A January 2002 also specializes in making adhesive dispensing equipment to assist in using its items. This dual production technique offers Atp Private Equity Partners A January 2002 an edge over rivals because none of the competitors of giving equipment makes instantaneous adhesives. Furthermore, none of these rivals offers directly to the consumer either and makes use of distributors for reaching out to clients. While we are looking at the strengths of Atp Private Equity Partners A January 2002, it is important to highlight the company's weaknesses.
Although the company's sales staff is proficient in training distributors, the truth stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. However, it needs to likewise be kept in mind that the suppliers are showing hesitation when it comes to offering equipment that requires maintenance which increases the obstacles of selling devices under a particular brand name.
The business has items intended at the high end of the market if we look at Atp Private Equity Partners A January 2002 item line in adhesive equipment especially. If Atp Private Equity Partners A January 2002 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 Atp Private Equity Partners A January 2002 high-end product line, sales cannibalization would absolutely be affecting Atp Private Equity Partners A January 2002 sales income if the adhesive devices is offered under the company's brand name.
We can see sales cannibalization affecting Atp Private Equity Partners A January 2002 27A Pencil Applicator which is priced at $275. There is another possible danger which could lower Atp Private Equity Partners A January 2002 earnings if Case Study Help is released under the business's trademark name. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or rate awareness which offers us two additional factors for not launching a low priced item under the business's brand.
The competitive environment of Atp Private Equity Partners A January 2002 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 buyer in this market is low specifically as the buyer has low understanding about the item. While companies like Atp Private Equity Partners A January 2002 have actually handled to train suppliers relating to adhesives, the last customer is dependent on distributors. Around 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 gamers, it could be said that the supplier enjoys a greater bargaining power compared to the buyer. Nevertheless, the truth remains that the provider does not have much impact over the purchaser at this point particularly as the buyer does not show brand name recognition or cost sensitivity. This indicates that the distributor has the greater power when it concerns the adhesive market while the producer and the buyer 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 shown by foreign Japanese rivals in the instant adhesive market shows that the market enables ease of entry. However, if we look at Atp Private Equity Partners A January 2002 in particular, the company has double abilities in regards to being a manufacturer of instant adhesives and adhesive dispensers. Potential threats in equipment dispensing market are low which shows the possibility of creating brand awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the market gamers has actually managed to position itself in dual abilities.
Threat of Substitutes: The danger of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The truth stays that if Atp Private Equity Partners A January 2002 introduced 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 offered numerous reasons for not releasing Case Study Help under Atp Private Equity Partners A January 2002 name, we have a recommended marketing mix for Case Study Help given listed below if Atp Private Equity Partners A January 2002 chooses to proceed with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this sector and a high use of approximately 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an extra development capacity of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wishes to go with either of the two accessories or not.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or through direct selling. This price would not include the expense of the 'vari suggestion' or the 'glumetic idea'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store requires to purchase the product on his own. This would increase the possibility of influencing mechanics to purchase the product for usage in their day-to-day upkeep jobs.
Atp Private Equity Partners A January 2002 would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Atp Private Equity Partners A January 2002 for launching Case Study Help.
Place: A distribution design where Atp Private Equity Partners A January 2002 straight sends the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Atp Private Equity Partners A January 2002. Because the sales team is already engaged in offering immediate adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be expensive specifically as each sales call expenses around $120. The distributors are already offering dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget should have been appointed 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 suggested advertising strategy costing $51816 is advised for initially presenting the item in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).