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Bang Networks Inc Case Study Solution
Bang Networks Inc Case Study Help
Bang Networks Inc Case Study Analysis
The following area focuses on the of marketing for Bang Networks Inc where the company's clients, rivals and core proficiencies have actually evaluated in order to justify whether the choice to release Case Study Help under Bang Networks Inc trademark name would be a possible option or not. We have to start with looked at the kind of consumers that Bang Networks Inc deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Bang Networks Inc name.
Bang Networks Inc clients can be segmented into two groups, industrial clients and last consumers. Both the groups utilize Bang Networks Inc high performance adhesives while the business is not only involved in the production of these adhesives however likewise markets them to these consumer groups. There are two types of items that are being offered to these potential markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis because the marketplace for the latter has a lower capacity for Bang Networks Inc compared to that of instant adhesives.
The total market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Bang Networks Inc possible market or client groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair and revamping companies (MRO) and manufacturers dealing in products made from leather, metal, plastic and wood. This diversity in clients suggests that Bang Networks Inc can target has various choices in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be needing the exact same type of product with respective changes in quantity, need or product packaging. Nevertheless, the client is not rate delicate or brand mindful so launching a low priced dispenser under Bang Networks Inc name is not an advised alternative.
Bang Networks Inc is not just a manufacturer of adhesives however takes pleasure in market management in the instant adhesive industry. The company has its own proficient and competent sales force which includes worth to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives. Bang Networks Inc believes in unique distribution as shown by the fact that it has actually picked to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for broadening reach by means of distributors. The business's reach is not limited to The United States and Canada just as it likewise delights in worldwide sales. With 1400 outlets spread all throughout The United States and Canada, Bang Networks Inc has its internal production plants instead of using out-sourcing as the preferred strategy.
Core proficiencies are not limited to adhesive production just as Bang Networks Inc also focuses on making adhesive dispensing equipment to help with the use of its items. This dual production method provides Bang Networks Inc an edge over rivals because none of the rivals of dispensing equipment makes immediate adhesives. Additionally, none of these competitors sells straight to the consumer either and utilizes distributors for reaching out to consumers. While we are looking at the strengths of Bang Networks Inc, it is essential to highlight the business's weaknesses.
Although the business's sales staff is experienced in training distributors, the reality remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It should likewise be kept in mind that the suppliers are showing hesitation when it comes to offering devices that requires maintenance which increases the obstacles of selling equipment under a particular brand name.
If we take a look at Bang Networks Inc line of product in adhesive devices particularly, the business has actually products focused on the high-end of the market. The possibility of sales cannibalization exists if Bang Networks Inc sells Case Study Help under the same portfolio. Given the truth that Case Study Help is priced lower than Bang Networks Inc high-end product line, sales cannibalization would certainly be impacting Bang Networks Inc sales earnings if the adhesive equipment is offered under the business'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 launched under the company's brand name, there is another possible risk which could lower Bang Networks Inc earnings. The fact that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good 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 instant adhesive.
Additionally, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or price awareness which provides us 2 extra factors for not launching a low priced item under the company's brand name.
The competitive environment of Bang Networks Inc would be studied through 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 market is low particularly as the buyer has low knowledge about the item. While companies like Bang Networks Inc have handled to train distributors regarding adhesives, the last consumer depends on suppliers. Around 72% of sales are made straight by producers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by three gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the buyer. However, the reality remains that the supplier does not have much impact over the purchaser at this moment specifically as the purchaser does not show brand acknowledgment or rate level of sensitivity. This indicates that the supplier has the greater power when it concerns the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market suggests that the market allows ease of entry. Nevertheless, if we take a look at Bang Networks Inc in particular, the company has dual capabilities in regards to being a maker of instant adhesives and adhesive dispensers. Prospective hazards in devices dispensing market are low which reveals the possibility of developing brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the industry players has handled to position itself in dual abilities.
Danger of Substitutes: The threat of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact remains that if Bang Networks Inc 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 Bang Networks Inc name, we have a suggested marketing mix for Case Study Help offered listed below if Bang Networks Inc decides to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an additional growth capacity of 10.1% which might be an excellent adequate specific niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to purchase the item on his own.
Bang Networks Inc would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Bang Networks Inc for introducing Case Study Help.
Place: A circulation design where Bang Networks Inc directly sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be used by Bang Networks Inc. Because the sales group is currently engaged in offering instantaneous adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be pricey especially as each sales call costs roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low marketing budget ought to have been assigned 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 incurred for production, the suggested marketing strategy costing $51816 is advised for initially introducing the item in the market. The prepared ads in magazines would be targeted at mechanics in lorry maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
