The following section concentrates on the of marketing for Automation Consulting Services where the business's consumers, competitors and core proficiencies have actually examined in order to justify whether the decision to introduce Case Study Help under Automation Consulting Services brand would be a possible alternative or not. We have actually to start with taken a look at the kind of consumers that Automation Consulting Services handle while an evaluation of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Automation Consulting Services name.
Automation Consulting Services clients can be segmented into two groups, final customers and industrial consumers. Both the groups utilize Automation Consulting Services high performance adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these customer groups. There are 2 types of products that are being sold to these possible markets; anaerobic adhesives and instant adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Automation Consulting Services compared to that of instantaneous adhesives.
The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Automation Consulting Services potential market or consumer groups, we can see that the company sells to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair work and revamping business (MRO) and makers handling products made of leather, metal, plastic and wood. This diversity in customers recommends that Automation Consulting Services can target has numerous options in regards to segmenting the market for its new item especially as each of these groups would be requiring the exact same kind of item with respective changes in need, quantity or product packaging. However, the consumer is not price delicate or brand name mindful so introducing a low priced dispenser under Automation Consulting Services name is not a recommended alternative.
Automation Consulting Services is not just a maker of adhesives but takes pleasure in market management in the immediate adhesive industry. The company has its own competent and certified sales force which adds value to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.
Core skills are not restricted to adhesive manufacturing only as Automation Consulting Services also specializes in making adhesive dispensing devices to help with making use of its products. This double production strategy provides Automation Consulting Services an edge over rivals because none of the competitors of dispensing devices makes instant adhesives. Furthermore, none of these rivals sells directly to the customer either and makes use of distributors for connecting to customers. While we are taking a look at the strengths of Automation Consulting Services, it is essential to highlight the company's weak points as well.
The business's sales personnel is proficient in training suppliers, the truth remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it should likewise be noted that the suppliers are showing hesitation when it pertains to offering equipment that requires servicing which increases the obstacles of offering equipment under a specific brand name.
If we look at Automation Consulting Services line of product in adhesive devices especially, the business has actually products aimed at the high-end of the market. The possibility of sales cannibalization exists if Automation Consulting Services offers Case Study Help under the same portfolio. Provided the reality that Case Study Help is priced lower than Automation Consulting Services high-end line of product, sales cannibalization would definitely be affecting Automation Consulting Services sales income if the adhesive devices is offered under the business's brand name.
We can see sales cannibalization affecting Automation Consulting Services 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease Automation Consulting Services profits if Case Study Help is introduced under the company's brand. The fact that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or price awareness which gives us 2 additional factors for not launching a low priced product under the company's trademark name.
The competitive environment of Automation Consulting Services would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition 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 item. While business like Automation Consulting Services have actually handled to train suppliers concerning adhesives, the final customer is dependent on distributors. Roughly 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by three gamers, it could be said that the provider delights in a higher bargaining power compared to the purchaser. The reality remains that the provider does not have much influence over the purchaser at this point particularly as the purchaser does not reveal brand recognition or price level of 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 loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market suggests that the marketplace allows ease of entry. If we look at Automation Consulting Services in specific, the company has double abilities in terms of being a maker of instant adhesives and adhesive dispensers. Possible risks in equipment giving industry are low which reveals the possibility of creating brand name awareness in not just instant adhesives but also in dispensing adhesives as none of the market players has managed to position itself in double capabilities.
Threat of Substitutes: The danger of replacements in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Automation Consulting Services presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided various reasons for not releasing Case Study Help under Automation Consulting Services name, we have a recommended marketing mix for Case Study Help provided below if Automation Consulting Services decides to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an additional growth capacity of 10.1% which might be a great adequate specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being offered for use with SuperBonder.
Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep shop requires to buy the product on his own.
Automation Consulting Services would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Automation Consulting Services for releasing Case Study Help.
Place: A distribution model where Automation Consulting Services straight sends the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Automation Consulting Services. Since the sales team is already engaged in offering immediate adhesives and they do not have expertise in offering dispensers, including them in the selling process would be expensive specifically as each sales call costs roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: Although a low marketing spending plan needs to have been assigned to Case Study Help but the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is suggested for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in automobile upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).