The following section focuses on the of marketing for Blackstone Alternative Asset Management where the company's clients, competitors and core competencies have evaluated in order to justify whether the decision to launch Case Study Help under Blackstone Alternative Asset Management brand name would be a possible choice or not. We have actually to start with looked at the kind of consumers that Blackstone Alternative Asset Management deals in while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Blackstone Alternative Asset Management name.
Both the groups utilize Blackstone Alternative Asset Management high efficiency adhesives while the company is not just included in the production of these adhesives however likewise markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis since the market for the latter has a lower potential for Blackstone Alternative Asset Management compared to that of instant adhesives.
The total market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we look at a breakdown of Blackstone Alternative Asset Management possible market or client groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair work and revamping business (MRO) and manufacturers dealing in items made from leather, plastic, wood and metal. This diversity in consumers recommends that Blackstone Alternative Asset Management can target has various alternatives in regards to segmenting the marketplace for its new product specifically as each of these groups would be needing the very same kind of product with respective modifications in amount, demand or packaging. Nevertheless, the client is not rate sensitive or brand conscious so releasing a low priced dispenser under Blackstone Alternative Asset Management name is not a recommended choice.
Blackstone Alternative Asset Management is not just a manufacturer of adhesives however enjoys market management in the instant adhesive market. The business has its own experienced and certified sales force which includes value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Blackstone Alternative Asset Management believes in exclusive distribution as shown by the truth that it has actually chosen to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach via suppliers. The company's reach is not limited to The United States and Canada only as it also takes pleasure in worldwide sales. With 1400 outlets spread all throughout North America, Blackstone Alternative Asset Management has its internal production plants instead of using out-sourcing as the favored strategy.
Core competences are not limited to adhesive manufacturing just as Blackstone Alternative Asset Management likewise specializes in making adhesive giving devices to help with using its items. This dual production method gives Blackstone Alternative Asset Management an edge over rivals because none of the competitors of giving devices makes immediate adhesives. Furthermore, none of these rivals sells directly to the consumer either and uses suppliers for connecting to clients. While we are taking a look at the strengths of Blackstone Alternative Asset Management, it is important to highlight the business's weak points too.
Although the business's sales personnel is knowledgeable in training distributors, the reality remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It must also be kept in mind that the distributors are showing reluctance when it comes to offering devices that requires servicing which increases the difficulties of offering equipment under a specific brand name.
If we take a look at Blackstone Alternative Asset Management product line in adhesive devices particularly, the business has items focused on the luxury of the marketplace. If Blackstone Alternative Asset Management sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Blackstone Alternative Asset Management high-end product line, sales cannibalization would certainly be affecting Blackstone Alternative Asset Management sales earnings if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization affecting Blackstone Alternative Asset Management 27A Pencil Applicator which is priced at $275. There is another possible danger which might reduce Blackstone Alternative Asset Management revenue if Case Study Help is released under the company's brand name. The fact that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching 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.
Additionally, 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 extra reasons for not launching a low priced item under the business's trademark name.
The competitive environment of Blackstone Alternative Asset Management 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 buyer in this industry is low specifically as the buyer has low knowledge about the item. While business like Blackstone Alternative Asset Management have managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Around 72% of sales are made directly by manufacturers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 gamers, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the fact remains that the provider does not have much impact over the purchaser at this point especially as the buyer does not show brand recognition or cost level of sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the maker and the buyer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market indicates that the market permits ease of entry. However, if we look at Blackstone Alternative Asset Management in particular, the business has dual capabilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Potential dangers in equipment giving market are low which reveals the possibility of developing brand awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the industry players has managed to position itself in dual abilities.
Risk of Substitutes: The threat of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth remains that if Blackstone Alternative Asset Management 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 given various factors for not launching Case Study Help under Blackstone Alternative Asset Management name, we have actually a recommended marketing mix for Case Study Help given below if Blackstone Alternative Asset Management decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this segment and a high usage of approximately 58900 lbs. is being used by 36.1 % of the marketplace. This market has an extra growth potential of 10.1% which might be a sufficient specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can choose whether he wants to select either of the two accessories or not.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance shop needs to buy the product on his own.
Blackstone Alternative Asset Management would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Blackstone Alternative Asset Management for releasing Case Study Help.
Place: A distribution design where Blackstone Alternative Asset Management straight sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Blackstone Alternative Asset Management. Given that the sales group is currently participated in offering instantaneous adhesives and they do not have knowledge in selling dispensers, including them in the selling procedure would be expensive specifically as each sales call costs roughly $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: A low advertising budget plan ought to have been designated to Case Study Help however the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended marketing strategy costing $51816 is suggested for initially presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in car upkeep shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).