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Bluewater Foods Corporation Case Study Solution
Bluewater Foods Corporation Case Study Help
Bluewater Foods Corporation Case Study Analysis
The following area concentrates on the of marketing for Bluewater Foods Corporation where the company's clients, rivals and core proficiencies have assessed in order to validate whether the decision to launch Case Study Help under Bluewater Foods Corporation trademark name would be a practical option or not. We have firstly looked at the kind of customers that Bluewater Foods Corporation deals in while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Bluewater Foods Corporation name.
Bluewater Foods Corporation clients can be segmented into 2 groups, commercial consumers and last customers. Both the groups utilize Bluewater Foods Corporation high performance adhesives while the business is not only involved in the production of these adhesives however likewise markets them to these client groups. There are 2 kinds of items that are being sold to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis since the marketplace for the latter has a lower capacity for Bluewater Foods Corporation compared to that of instant adhesives.
The total market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Bluewater Foods Corporation potential market or consumer groups, we can see that the business sells to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair and upgrading business (MRO) and makers dealing in items made of leather, wood, plastic and metal. This variety in customers suggests that Bluewater Foods Corporation can target has various choices in regards to segmenting the marketplace for its new product especially as each of these groups would be requiring the very same kind of item with respective changes in need, amount or packaging. However, the customer is not rate sensitive or brand name mindful so releasing a low priced dispenser under Bluewater Foods Corporation name is not a recommended option.
Bluewater Foods Corporation is not just a producer of adhesives but takes pleasure in market management in the instantaneous adhesive industry. The company has its own knowledgeable and qualified sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Bluewater Foods Corporation believes in exclusive circulation as shown by the reality that it has picked to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for broadening reach through suppliers. The business's reach is not restricted to North America only as it also takes pleasure in global sales. With 1400 outlets spread out all throughout North America, Bluewater Foods Corporation has its internal production plants instead of utilizing out-sourcing as the preferred technique.
Core competences are not limited to adhesive manufacturing just as Bluewater Foods Corporation also concentrates on making adhesive dispensing devices to assist in using its products. This double production technique offers Bluewater Foods Corporation an edge over competitors because none of the rivals of giving devices makes immediate adhesives. In addition, none of these competitors sells straight to the customer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Bluewater Foods Corporation, it is important to highlight the business's weak points.
Although the business's sales staff is competent in training distributors, the truth remains that the sales team is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It ought to also be noted that the suppliers are showing reluctance when it comes to offering equipment that needs maintenance which increases the difficulties of offering devices under a particular brand name.
If we take a look at Bluewater Foods Corporation line of product in adhesive equipment particularly, the company has actually products targeted at the luxury of the marketplace. If Bluewater Foods Corporation offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Bluewater Foods Corporation high-end product line, sales cannibalization would certainly be impacting Bluewater Foods Corporation sales earnings if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization affecting Bluewater Foods Corporation 27A Pencil Applicator which is priced at $275. There is another possible hazard which could lower Bluewater Foods Corporation earnings if Case Study Help is introduced under the company's brand. The reality that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good time for launching 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.
In addition, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost consciousness which gives us two extra factors for not launching a low priced product under the company's brand name.
The competitive environment of Bluewater Foods Corporation would be studied via 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 especially as the purchaser has low knowledge about the item. While companies like Bluewater Foods Corporation have managed to train suppliers concerning adhesives, the final consumer depends on distributors. Roughly 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by 3 gamers, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the truth remains that the provider does not have much impact over the buyer at this moment especially as the buyer does not show brand acknowledgment or rate sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a significant 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 loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market indicates that the market allows ease of entry. If we look at Bluewater Foods Corporation in particular, the company has double capabilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Potential risks in equipment dispensing industry are low which reveals the possibility of producing brand name awareness in not just instant adhesives but also in dispensing adhesives as none of the industry gamers has managed to place itself in dual capabilities.
Risk of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Bluewater Foods Corporation presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given various reasons for not releasing Case Study Help under Bluewater Foods Corporation name, we have actually a suggested marketing mix for Case Study Help given below if Bluewater Foods Corporation decides to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this segment and a high usage of around 58900 lbs. is being used by 36.1 % of the market. This market has an extra growth capacity of 10.1% which might be a sufficient niche market sector for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being cost usage with SuperBonder. The item would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wants to choose 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 sold through distributors or through direct selling. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor lorry maintenance shop needs to purchase the product on his own.
Bluewater Foods Corporation would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Bluewater Foods Corporation for releasing Case Study Help.
Place: A circulation model where Bluewater Foods Corporation directly sends out the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Bluewater Foods Corporation. Given that the sales group is already engaged in selling instant adhesives and they do not have expertise in offering dispensers, including them in the selling process would be costly especially as each sales call costs around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget needs to have been assigned to Case Study Help however the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended advertising plan costing $51816 is advised for at first introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in car maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
