The following section focuses on the of marketing for Bluewater Foods Corporation where the business's clients, competitors and core competencies have actually examined in order to justify whether the decision to release Case Study Help under Bluewater Foods Corporation trademark name would be a possible option or not. We have actually to start with taken a look at the kind of clients that Bluewater Foods Corporation deals in while an evaluation of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Bluewater Foods Corporation name.
Both the groups use 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 customer groups. We would be focusing on the customers of instant adhesives for this analysis since the market for the latter has a lower capacity for Bluewater Foods Corporation compared to that of immediate adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Bluewater Foods Corporation potential market or customer groups, we can see that the business sells to OEMs (Original Devices Manufacturers), Do-it-Yourself customers, repair work and revamping companies (MRO) and makers dealing in items made from leather, plastic, metal and wood. This variety in consumers recommends that Bluewater Foods Corporation can target has various choices in terms of segmenting the market for its new product specifically as each of these groups would be requiring the exact same type of item with respective changes in need, product packaging or quantity. The client is not cost sensitive or brand name conscious so releasing a low priced dispenser under Bluewater Foods Corporation name is not a suggested option.
Bluewater Foods Corporation is not just a maker of adhesives however delights in market leadership in the instant adhesive industry. The business has its own knowledgeable and certified sales force which adds worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core competences are not limited to adhesive manufacturing only as Bluewater Foods Corporation likewise specializes in making adhesive giving equipment to facilitate using its items. This dual production technique gives Bluewater Foods Corporation an edge over rivals considering that none of the rivals of dispensing devices makes immediate adhesives. Furthermore, none of these competitors offers straight to the consumer either and uses suppliers for reaching out to customers. While we are looking at the strengths of Bluewater Foods Corporation, it is essential to highlight the business's weaknesses too.
The business's sales staff is skilled in training suppliers, the fact remains that the sales team is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. Nevertheless, it must likewise be noted that the suppliers are showing hesitation when it concerns offering devices that needs maintenance which increases the challenges of offering equipment under a specific brand.
If we look at Bluewater Foods Corporation product line in adhesive devices especially, the company has actually products aimed at the high-end of the marketplace. If Bluewater Foods Corporation sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Bluewater Foods Corporation high-end line of product, sales cannibalization would absolutely be impacting Bluewater Foods Corporation sales profits if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization impacting Bluewater Foods Corporation 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could reduce Bluewater Foods Corporation revenue. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the reality 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 consciousness which offers us two extra factors for not introducing a low priced item under the business's brand name.
The competitive environment of Bluewater Foods Corporation would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low understanding about the item. While business like Bluewater Foods Corporation have managed to train distributors regarding adhesives, the final consumer depends on distributors. Around 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three players, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. The reality stays that the provider does not have much influence over the purchaser at this point specifically as the purchaser does not show brand acknowledgment or cost sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a significant control over the real sales, this indicates 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 shows that the marketplace enables ease of entry. If we look at Bluewater Foods Corporation in specific, the business has dual abilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Prospective risks in equipment dispensing market are low which reveals the possibility of creating brand awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry gamers has actually managed to position itself in dual abilities.
Threat of Substitutes: The danger of replacements in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The fact stays that if Bluewater Foods Corporation presented 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 numerous factors for not launching Case Study Help under Bluewater Foods Corporation name, we have a recommended marketing mix for Case Study Help given listed below if Bluewater Foods Corporation decides to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this section and a high usage of approximately 58900 pounds. is being used by 36.1 % of the market. This market has an additional development capacity of 10.1% which might be a good enough specific 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 also be targeted if a safe and clean low priced adhesive is being cost usage with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the consumer can choose whether he wants to go with either of the two devices or not.
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 rate listed 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.
Bluewater Foods Corporation would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net profitability for Bluewater Foods Corporation for launching Case Study Help.
Place: A distribution model where Bluewater Foods Corporation directly sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Bluewater Foods Corporation. Since the sales team is already engaged in offering immediate adhesives and they do not have expertise in selling dispensers, involving them in the selling procedure would be expensive particularly as each sales call expenses roughly $120. The distributors are already offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low promotional budget plan must have been designated to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising strategy costing $51816 is suggested for initially introducing the item in the market. The prepared ads in magazines would be targeted at mechanics in vehicle upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).