The following section concentrates on the of marketing for Ben Walter where the business's customers, competitors and core proficiencies have examined in order to justify whether the choice to introduce Case Study Help under Ben Walter brand name would be a practical choice or not. We have first of all taken a look at the kind of customers that Ben Walter deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Ben Walter name.
Ben Walter consumers can be segmented into two groups, commercial clients and last consumers. Both the groups use Ben Walter high performance adhesives while the business is not just associated with the production of these adhesives but also markets them to these customer groups. There are 2 types of items that are being offered to these potential markets; instant adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis given that the marketplace for the latter has a lower potential for Ben Walter compared to that of instantaneous adhesives.
The overall market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we look at a breakdown of Ben Walter possible market or client groups, we can see that the company sells to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair work and overhauling business (MRO) and producers handling items made from leather, plastic, metal and wood. This variety in consumers recommends that Ben Walter can target has different alternatives in terms of segmenting the market for its new product particularly as each of these groups would be needing the same type of item with particular changes in need, quantity or product packaging. However, the consumer is not cost sensitive or brand conscious so releasing a low priced dispenser under Ben Walter name is not a recommended choice.
Ben Walter is not just a maker of adhesives however delights in market leadership in the instantaneous adhesive market. The business has its own knowledgeable and certified sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Ben Walter believes in exclusive circulation as shown by the truth that it has actually chosen to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for expanding reach through distributors. The company's reach is not limited to North America just as it likewise enjoys worldwide sales. With 1400 outlets spread out all across The United States and Canada, Ben Walter has its internal production plants rather than using out-sourcing as the favored technique.
Core proficiencies are not restricted to adhesive manufacturing only as Ben Walter likewise concentrates on making adhesive giving devices to assist in making use of its products. This double production method gives Ben Walter an edge over rivals given that none of the competitors of giving devices makes instant adhesives. Furthermore, none of these rivals offers directly to the consumer either and utilizes suppliers for connecting to consumers. While we are looking at the strengths of Ben Walter, it is essential to highlight the business's weak points.
Although the company's sales personnel is competent in training suppliers, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it needs to also be kept in mind that the distributors are revealing reluctance when it concerns offering devices that requires servicing which increases the difficulties of selling devices under a particular brand name.
If we take a look at Ben Walter product line in adhesive devices especially, the company has actually items targeted at the luxury of the market. If Ben Walter offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Ben Walter high-end line of product, sales cannibalization would certainly be impacting Ben Walter sales revenue if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization affecting Ben Walter 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible hazard which could reduce Ben Walter revenue. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the fact 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 name orientation or rate awareness which offers us two additional reasons for not releasing a low priced item under the business's trademark name.
The competitive environment of Ben Walter would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low knowledge about the item. While companies like Ben Walter have managed to train suppliers relating to adhesives, the last customer depends on suppliers. Roughly 72% of sales are made straight by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by three gamers, it could be said that the supplier takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the reality remains that the provider does not have much influence over the purchaser at this moment especially as the purchaser does not show brand recognition or price sensitivity. When it comes to the adhesive market while the producer and the buyer do not have a major control over the actual sales, this indicates that the supplier 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 instant adhesive market shows that the marketplace permits ease of entry. However, if we look at Ben Walter in particular, the company has dual capabilities in regards to being a manufacturer of adhesive dispensers and immediate adhesives. Potential dangers in devices dispensing industry are low which reveals the possibility of creating brand awareness in not just instant adhesives however also in dispensing adhesives as none of the industry gamers has actually managed to place itself in dual abilities.
Hazard of Substitutes: The hazard of alternatives in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The reality stays that if Ben Walter presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered different factors for not releasing Case Study Help under Ben Walter name, we have a suggested marketing mix for Case Study Help given below if Ben Walter decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of factors. This market has an extra development capacity of 10.1% which may be a good adequate specific niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended rate 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 price below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance shop needs to acquire the product on his own.
Ben Walter would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Ben Walter for releasing Case Study Help.
Place: A distribution design where Ben Walter straight sends the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Ben Walter. Because the sales team is already engaged in offering instantaneous adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be costly especially as each sales call costs roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: Although a low marketing budget must have been designated to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is suggested for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).