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Blue Turtle Clothing Company Case Study Solution
Blue Turtle Clothing Company Case Study Help
Blue Turtle Clothing Company Case Study Analysis
The following section focuses on the of marketing for Blue Turtle Clothing Company where the company's customers, competitors and core proficiencies have actually assessed in order to validate whether the decision to launch Case Study Help under Blue Turtle Clothing Company brand would be a possible option or not. We have to start with looked at the type of clients that Blue Turtle Clothing Company handle 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 Blue Turtle Clothing Company name.
Both the groups use Blue Turtle Clothing Company high efficiency adhesives while the company is not just included in the production of these adhesives but also markets them to these client groups. We would be focusing on the consumers of instant adhesives for this analysis since the market for the latter has a lower potential for Blue Turtle Clothing Company compared to that of instant adhesives.
The total market for immediate adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Blue Turtle Clothing Company possible market or consumer groups, we can see that the company sells to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair and upgrading business (MRO) and makers dealing in products made from leather, plastic, wood and metal. This diversity in customers suggests that Blue Turtle Clothing Company can target has numerous alternatives in regards to segmenting the market for its brand-new product especially as each of these groups would be requiring the exact same type of product with particular modifications in amount, packaging or need. The consumer is not cost delicate or brand conscious so launching a low priced dispenser under Blue Turtle Clothing Company name is not an advised option.
Blue Turtle Clothing Company is not just a producer of adhesives but enjoys market leadership in the immediate adhesive industry. The business has its own knowledgeable and competent sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core skills are not restricted to adhesive production only as Blue Turtle Clothing Company also focuses on making adhesive giving devices to help with making use of its products. This double production strategy provides Blue Turtle Clothing Company an edge over competitors because none of the rivals of dispensing devices makes immediate adhesives. In addition, none of these rivals sells directly to the customer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Blue Turtle Clothing Company, it is essential to highlight the company's weaknesses.
Although the company's sales staff is proficient in training suppliers, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It needs to also be noted that the suppliers are showing unwillingness when it comes to offering equipment that requires servicing which increases the obstacles of selling equipment under a particular brand name.
The company has items intended at the high end of the market if we look at Blue Turtle Clothing Company product line in adhesive equipment particularly. If Blue Turtle Clothing Company sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Blue Turtle Clothing Company high-end product line, sales cannibalization would absolutely be impacting Blue Turtle Clothing Company sales earnings if the adhesive equipment is sold under the business's trademark name.
We can see sales cannibalization impacting Blue Turtle Clothing Company 27A Pencil Applicator which is priced at $275. There is another possible danger which could lower Blue Turtle Clothing Company profits if Case Study Help is released under the business's trademark name. The truth that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or cost awareness which gives us 2 extra reasons for not releasing a low priced product under the company's brand.
The competitive environment of Blue Turtle Clothing Company would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low understanding about the product. While companies like Blue Turtle Clothing Company have actually handled to train distributors regarding adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made straight by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 players, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. Nevertheless, the fact stays that the supplier does not have much impact over the buyer at this moment especially as the purchaser does disappoint brand name acknowledgment or price level of sensitivity. This shows that the distributor has the higher power when it pertains to the adhesive market while the producer and the purchaser 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 shown by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace allows ease of entry. Nevertheless, if we take a look at Blue Turtle Clothing Company in particular, the business has double capabilities in regards to being a manufacturer of instant adhesives and adhesive dispensers. Potential risks in equipment dispensing industry are low which shows the possibility of developing brand awareness in not just immediate adhesives but also in giving adhesives as none of the industry gamers has actually managed to position itself in dual abilities.
Danger of Substitutes: The danger of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality stays that if Blue Turtle Clothing Company presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered different factors for not releasing Case Study Help under Blue Turtle Clothing Company name, we have a suggested marketing mix for Case Study Help given listed below if Blue Turtle Clothing Company decides to go on with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a variety of reasons. There are currently 89257 establishments in this section and a high usage of roughly 58900 lbs. is being used by 36.1 % of the market. This market has an additional growth capacity of 10.1% which may be a sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the reality that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder. The item would be sold without the 'glumetic pointer' and 'vari-drop' so that the customer can choose whether he wishes to select either of the two accessories or not.
Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance store requires to acquire the product on his own.
Blue Turtle Clothing Company would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Blue Turtle Clothing Company for releasing Case Study Help.
Place: A distribution design where Blue Turtle Clothing Company straight sends the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Blue Turtle Clothing Company. Because the sales group is already taken part in selling instant adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: A low promotional spending plan ought to have been assigned to Case Study Help but the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is suggested for initially introducing the product in the market. The prepared advertisements in magazines would be targeted at mechanics in car maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
