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Ben Walter Case Study Solution
Ben Walter Case Study Help
Ben Walter Case Study Analysis
The following area concentrates on the of marketing for Ben Walter where the business's clients, competitors and core competencies have evaluated in order to validate whether the choice to launch Case Study Help under Ben Walter brand name would be a feasible choice or not. We have to start with taken a look at the kind of clients that Ben Walter handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Ben Walter name.
Ben Walter clients can be segmented into two groups, final consumers and industrial consumers. Both the groups utilize Ben Walter high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these customer groups. There are 2 kinds of products that are being offered to these prospective markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower capacity for Ben Walter compared to that of immediate adhesives.
The total market for immediate adhesives is around 890,000 in the United States in 1978 which covers both client groups which have actually been recognized earlier.If we take a look at a breakdown of Ben Walter potential market or client groups, we can see that the company offers to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair work and overhauling business (MRO) and manufacturers dealing in products made from leather, wood, metal and plastic. This variety in customers suggests that Ben Walter can target has different choices in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be requiring the exact same kind of item with particular modifications in product packaging, amount or need. The customer is not cost sensitive or brand conscious so launching a low priced dispenser under Ben Walter name is not an advised option.
Ben Walter is not simply a producer of adhesives however delights in market management in the immediate adhesive industry. The company has its own experienced and certified sales force which includes value to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Ben Walter also focuses on making adhesive dispensing equipment to help with making use of its products. This dual production method provides Ben Walter an edge over competitors since none of the competitors of dispensing equipment makes immediate adhesives. Additionally, none of these rivals offers directly to the customer either and utilizes distributors for connecting to clients. While we are looking at the strengths of Ben Walter, it is essential to highlight the company's weaknesses too.
Although the business's sales personnel is knowledgeable in training distributors, the reality stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It should likewise be noted that the distributors are showing unwillingness when it comes to offering devices that requires servicing which increases the obstacles of selling devices under a specific brand name.
If we look at Ben Walter line of product in adhesive equipment especially, the company has actually items targeted at the high-end of the marketplace. The possibility of sales cannibalization exists if Ben Walter sells Case Study Help under the very same portfolio. Given the reality that Case Study Help is priced lower than Ben Walter high-end line of product, sales cannibalization would certainly be affecting Ben Walter sales earnings if the adhesive devices is sold under the company's brand name.
We can see sales cannibalization impacting Ben Walter 27A Pencil Applicator which is priced at $275. There is another possible hazard which might decrease Ben Walter income if Case Study Help is released under the business's brand. The truth that $175000 has been spent in promoting SuperBonder recommends 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 immediate adhesive.
In addition, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or rate consciousness which provides us two additional factors for not releasing a low priced item under the company's trademark name.
The competitive environment of Ben Walter would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the buyer has low understanding about the product. While companies like Ben Walter have actually handled to train suppliers regarding adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made directly by producers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by three players, it could be stated that the provider takes pleasure in a greater bargaining power compared to the buyer. The truth remains that the provider does not have much impact over the purchaser at this point especially as the buyer does not reveal brand recognition or cost level of 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 shows that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market suggests that the market permits ease of entry. Nevertheless, if we look at Ben Walter in particular, the company has dual abilities in regards to being a producer of instantaneous adhesives and adhesive dispensers. Prospective threats in equipment dispensing industry are low which shows the possibility of developing brand name awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry gamers has handled to place itself in double abilities.
Threat of Substitutes: The threat of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality remains that if Ben Walter 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 actually offered different reasons for not releasing Case Study Help under Ben Walter name, we have a suggested marketing mix for Case Study Help given listed below if Ben Walter decides to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of reasons. This market has an additional development potential of 10.1% which might be an excellent sufficient niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the truth that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold 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 sold through suppliers or by means of direct selling. This cost would not consist of the cost of the 'vari idea' or the 'glumetic tip'. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the product on his own. This would increase the possibility of affecting mechanics to buy the product for use in their daily upkeep tasks.
Ben Walter would just 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 circulation design where Ben Walter straight sends the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Ben Walter. Considering that the sales team is already engaged in offering instant adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be costly specifically as each sales call expenses around $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: Although a low marketing spending plan must have been appointed 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 recommended marketing strategy costing $51816 is advised for initially introducing the product in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
