Bang Networks Inc Case Study Help Checklist

Bang Networks Inc Case Study Help Checklist

Bang Networks Inc Case Study Solution
Bang Networks Inc Case Study Help
Bang Networks Inc Case Study Analysis

Analyses for Evaluating Bang Networks Inc decision to launch Case Study Solution

The following section focuses on the of marketing for Bang Networks Inc where the company's consumers, competitors and core proficiencies have actually examined in order to validate whether the choice to launch Case Study Help under Bang Networks Inc brand would be a possible option or not. We have first of all looked at the type of customers that Bang Networks Inc handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Bang Networks Inc name.
Bang Networks Inc Case Study Solution

Customer Analysis

Bang Networks Inc customers can be segmented into 2 groups, industrial clients and final consumers. Both the groups use Bang Networks Inc high performance adhesives while the business is not only associated with the production of these adhesives but also markets them to these consumer groups. There are 2 kinds of products that are being sold to these prospective markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis since the marketplace for the latter has a lower capacity for Bang Networks Inc compared to that of instant adhesives.

The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have actually been identified earlier.If we take a look at a breakdown of Bang Networks Inc potential market or consumer groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and producers handling products made from leather, plastic, wood and metal. This variety in consumers recommends that Bang Networks Inc can target has numerous alternatives in regards to segmenting the marketplace for its new product specifically as each of these groups would be requiring the exact same kind of product with respective changes in amount, need or product packaging. The customer is not cost delicate or brand name conscious so introducing a low priced dispenser under Bang Networks Inc name is not an advised choice.

Company Analysis

Bang Networks Inc is not simply a maker of adhesives however delights in market management in the instant adhesive market. The business has its own experienced and qualified sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Bang Networks Inc believes in special distribution as indicated by the fact that it has actually selected to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for broadening reach via distributors. The business's reach is not restricted to North America only as it likewise takes pleasure in international sales. With 1400 outlets spread out all throughout The United States and Canada, Bang Networks Inc has its in-house production plants rather than using out-sourcing as the preferred technique.

Core proficiencies are not restricted to adhesive manufacturing only as Bang Networks Inc also specializes in making adhesive giving equipment to help with using its products. This dual production method gives Bang Networks Inc an edge over rivals since none of the competitors of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the customer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Bang Networks Inc, it is crucial to highlight the company's weaknesses.

Although the company's sales staff is competent in training suppliers, the truth stays that the sales group is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it needs to also be kept in mind that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the difficulties of offering devices under a specific brand name.

If we take a look at Bang Networks Inc line of product in adhesive equipment particularly, the company has items focused on the high end of the marketplace. If Bang Networks Inc sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Bang Networks Inc high-end line of product, sales cannibalization would certainly be affecting Bang Networks Inc sales revenue if the adhesive equipment is offered under the company's trademark name.

We can see sales cannibalization impacting Bang Networks Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible threat which might decrease Bang Networks Inc earnings. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for introducing 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.

Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or rate awareness which provides us 2 extra reasons for not launching a low priced product under the business's brand name.

Competitor Analysis

The competitive environment of Bang Networks Inc would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the presence of fragmented sectors with Bang Networks Inc delighting in leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market rivalry in between these gamers could be called 'intense' as the consumer is not brand name conscious and each of these players has prominence in terms of market share, the reality still remains that the market is not filled and still has numerous market sectors which can be targeted as possible niche markets even when introducing an adhesive. We can even point out the reality that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instant adhesives provides development capacity.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the purchaser has low knowledge about the product. While companies like Bang Networks Inc have actually handled to train distributors regarding adhesives, the final customer is dependent on distributors. Approximately 72% of sales are made straight by producers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by 3 gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the purchaser. The truth stays that the supplier does not have much influence over the purchaser at this point specifically as the buyer does not reveal brand name recognition or price sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a major control over the real sales, this indicates that the distributor 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 competitors in the instantaneous adhesive market suggests that the market enables ease of entry. If we look at Bang Networks Inc in particular, the company has double capabilities in terms of being a producer of adhesive dispensers and instant adhesives. Prospective dangers in devices dispensing market are low which shows the possibility of developing brand awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the industry players has managed to place itself in dual capabilities.

Threat of Substitutes: The threat of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact stays that if Bang Networks Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).

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

Bang Networks Inc Case Study Help

Despite the fact that our 3C analysis has actually given various reasons for not launching Case Study Help under Bang Networks Inc name, we have actually a recommended marketing mix for Case Study Help provided below if Bang Networks Inc decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of factors. This market has an extra growth capacity of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the truth that the Diy market can also be targeted if a potable low priced adhesive is being offered for usage with SuperBonder.

Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or through direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor lorry maintenance store requires to purchase the item on his own.

Bang Networks Inc would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Bang Networks Inc for introducing Case Study Help.

Place: A circulation design where Bang Networks Inc directly sends the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Bang Networks Inc. Since the sales team is already participated in selling immediate adhesives and they do not have proficiency in offering dispensers, involving them in the selling procedure would be expensive specifically as each sales call costs roughly $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a beneficial choice.

Promotion: A low advertising budget must have been appointed to Case Study Help however the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested marketing plan costing $51816 is suggested for initially presenting the item in the market. The prepared advertisements in publications would be targeted at mechanics in lorry maintenance stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Bang Networks Inc Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has been discussed for Case Study Help, the truth still stays that the product would not complement Bang Networks Inc line of product. We take a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be around $49377 if 250 units of each model are produced per year according to the strategy. The preliminary planned advertising is around $52000 per year which would be putting a stress on the company's resources leaving Bang Networks Inc with an unfavorable net income if the expenses are assigned to Case Study Help only.

The reality that Bang Networks Inc has actually currently sustained an initial investment of $48000 in the form of capital expense and model development shows that the profits from Case Study Help is not enough to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a preferable option especially of it is impacting the sale of the business's income producing designs.