Axa Mony Case Study Help Checklist

Axa Mony Case Study Help Checklist

Axa Mony Case Study Solution
Axa Mony Case Study Help
Axa Mony Case Study Analysis

Analyses for Evaluating Axa Mony decision to launch Case Study Solution

The following section concentrates on the of marketing for Axa Mony where the business's clients, rivals and core competencies have evaluated in order to justify whether the choice to introduce Case Study Help under Axa Mony trademark name would be a practical option or not. We have to start with looked at the kind of customers that Axa Mony handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Axa Mony name.
Axa Mony Case Study Solution

Customer Analysis

Axa Mony clients can be segmented into 2 groups, final consumers and commercial customers. Both the groups use Axa Mony 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 products that are being offered to these potential markets; anaerobic adhesives and instant adhesives. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower capacity for Axa Mony compared to that of immediate adhesives.

The total market for instant adhesives is around 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Axa Mony prospective market or customer groups, we can see that the business offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair work and upgrading companies (MRO) and manufacturers dealing in products made from leather, wood, metal and plastic. This variety in consumers recommends that Axa Mony can target has different alternatives in terms of segmenting the market for its new product especially as each of these groups would be requiring the very same type of item with particular changes in product packaging, demand or quantity. The client is not price delicate or brand name conscious so introducing a low priced dispenser under Axa Mony name is not an advised option.

Company Analysis

Axa Mony is not simply a producer of adhesives but delights in market leadership in the immediate adhesive industry. The business has its own competent and qualified sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not limited to adhesive manufacturing just as Axa Mony also specializes in making adhesive giving devices to facilitate using its items. This dual production method gives Axa Mony an edge over competitors given that none of the competitors of dispensing equipment makes immediate adhesives. Furthermore, none of these rivals sells straight to the consumer either and makes use of suppliers for connecting to consumers. While we are looking at the strengths of Axa Mony, it is essential to highlight the company's weaknesses also.

The company's sales staff is experienced in training distributors, the reality remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it should likewise be kept in mind that the distributors are showing unwillingness when it comes to selling devices that requires maintenance which increases the difficulties of selling devices under a particular brand.

If we take a look at Axa Mony product line in adhesive equipment especially, the business has products aimed at the high-end of the marketplace. If Axa Mony sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Axa Mony high-end line of product, sales cannibalization would absolutely be impacting Axa Mony sales profits if the adhesive devices is sold under the business's trademark name.

We can see sales cannibalization impacting Axa Mony 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Axa Mony income if Case Study Help is launched under the business's brand. The truth that $175000 has been spent in promoting SuperBonder recommends that it is not a great 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 immediate adhesive.

Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which gives us two additional reasons for not releasing a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Axa Mony would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth potential due to the existence of fragmented sectors with Axa Mony delighting in management and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market competition in between these gamers could be called 'intense' as the customer is not brand name conscious and each of these players has prominence in terms of market share, the fact still remains that the market is not saturated and still has a number of market sectors which can be targeted as potential specific niche markets even when introducing an adhesive. However, we can even point out the fact that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instantaneous adhesives provides growth potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low specifically as the purchaser has low understanding about the item. While companies like Axa Mony have actually managed to train suppliers concerning adhesives, the final customer depends on distributors. Roughly 72% of sales are made directly by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by 3 players, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. However, the reality stays that the supplier does not have much impact over the buyer at this point especially as the purchaser does not show brand name recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the actual sales, this shows that the distributor has the higher 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 shows that the market permits ease of entry. If we look at Axa Mony in particular, the company has double abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible threats in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the industry players has handled to position itself in dual abilities.

Threat of Substitutes: The threat of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Axa Mony introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Axa Mony Case Study Help

Despite the fact that our 3C analysis has given numerous reasons for not introducing Case Study Help under Axa Mony name, we have actually a suggested marketing mix for Case Study Help offered listed below if Axa Mony 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 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 deal convenience to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or through direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor car upkeep shop requires to buy the product on his own.

Axa Mony would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Axa Mony for releasing Case Study Help.

Place: A distribution design where Axa Mony directly sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Axa Mony. Considering that the sales team is already taken part in offering immediate adhesives and they do not have know-how in offering dispensers, including them in the selling process would be pricey especially as each sales call expenses roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: A low promotional spending plan must have been designated to Case Study Help but 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 recommended advertising plan costing $51816 is advised for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in car maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Axa Mony Case Study Analysis

A suggested plan of action in the type of a marketing mix has actually been discussed for Case Study Help, the truth still remains that the item would not complement Axa Mony product line. We take a look at appendix 2, we can see how the total gross profitability for the two models is expected to be roughly $49377 if 250 units of each design are manufactured per year based on the strategy. However, the initial planned marketing is approximately $52000 each year which would be putting a pressure on the business's resources leaving Axa Mony with an unfavorable net income if the expenditures are designated to Case Study Help just.

The truth that Axa Mony has currently incurred a preliminary investment of $48000 in the form of capital expense and model development indicates that the revenue from Case Study Help is insufficient to carry out the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a preferable option specifically of it is impacting the sale of the business's earnings creating designs.