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Beacon Lakes Case Study Solution
Beacon Lakes Case Study Help
Beacon Lakes Case Study Analysis
The following section focuses on the of marketing for Beacon Lakes where the business's customers, competitors and core proficiencies have assessed in order to justify whether the decision to release Case Study Help under Beacon Lakes trademark name would be a possible option or not. We have first of all looked at the kind of consumers that Beacon Lakes deals in while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Beacon Lakes name.
Both the groups utilize Beacon Lakes high performance adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these customer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Beacon Lakes compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been identified earlier.If we look at a breakdown of Beacon Lakes potential market or consumer groups, we can see that the company offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and producers dealing in products made from leather, wood, plastic and metal. This diversity in clients recommends that Beacon Lakes can target has numerous alternatives in terms of segmenting the market for its brand-new product especially as each of these groups would be needing the exact same kind of product with particular changes in need, packaging or amount. The consumer is not price sensitive or brand name mindful so introducing a low priced dispenser under Beacon Lakes name is not an advised choice.
Beacon Lakes is not simply a maker of adhesives but enjoys market management in the immediate adhesive industry. The business has its own competent and qualified sales force which includes value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core competences are not restricted to adhesive production only as Beacon Lakes also focuses on making adhesive giving devices to help with using its products. This double production strategy provides Beacon Lakes an edge over rivals given that none of the rivals of giving devices makes immediate adhesives. In addition, none of these rivals offers straight to the customer either and makes use of suppliers for reaching out to consumers. While we are looking at the strengths of Beacon Lakes, it is essential to highlight the company's weak points.
The business's sales staff is knowledgeable in training suppliers, the fact stays that the sales team is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It must likewise be noted that the distributors are revealing hesitation when it comes to offering equipment that requires servicing which increases the challenges of offering devices under a specific brand name.
The company has items aimed at the high end of the market if we look at Beacon Lakes product line in adhesive equipment especially. If Beacon Lakes 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 Beacon Lakes high-end line of product, sales cannibalization would definitely be impacting Beacon Lakes sales earnings if the adhesive equipment is offered under the business's brand.
We can see sales cannibalization affecting Beacon Lakes 27A Pencil Applicator which is priced at $275. There is another possible hazard which could lower Beacon Lakes profits if Case Study Help is released under the business's brand name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the truth 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 marketplace in general, the adhesives market does disappoint brand name orientation or price awareness which gives us two additional factors for not launching a low priced item under the business's trademark name.
The competitive environment of Beacon Lakes would be studied via Porter's five 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 knowledge about the item. While companies like Beacon Lakes have actually managed to train distributors regarding adhesives, the final consumer is dependent on distributors. Approximately 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by three players, it could be said that the provider delights in a higher bargaining power compared to the purchaser. However, the reality stays that the provider does not have much impact over the buyer at this point particularly as the purchaser does not show brand recognition or cost level of sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a major control over the actual sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace enables ease of entry. If we look at Beacon Lakes in specific, the business has double abilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Possible risks in devices giving market are low which shows the possibility of producing brand awareness in not just immediate adhesives but likewise in giving adhesives as none of the market gamers has actually managed to position 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 alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality remains that if Beacon Lakes presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given different factors for not releasing Case Study Help under Beacon Lakes name, we have a recommended marketing mix for Case Study Help offered below if Beacon Lakes decides to proceed with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a number of reasons. There are presently 89257 facilities in this section and a high usage of around 58900 lbs. is being used by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which might be a sufficient niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being cost usage with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the customer can decide whether he wants to go with either of the two accessories or not.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to purchase the item on his own.
Beacon Lakes would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Beacon Lakes for launching Case Study Help.
Place: A distribution model where Beacon Lakes directly sends the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Beacon Lakes. Considering that the sales team is already participated in selling instant adhesives and they do not have expertise in selling dispensers, involving them in the selling process would be pricey especially as each sales call expenses roughly $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing spending plan needs to have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising plan costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
