WhatsApp 
Bodie Industrial Supply Inc Case Study Solution
Bodie Industrial Supply Inc Case Study Help
Bodie Industrial Supply Inc Case Study Analysis
The following area concentrates on the of marketing for Bodie Industrial Supply Inc where the business's consumers, competitors and core proficiencies have actually assessed in order to validate whether the decision to release Case Study Help under Bodie Industrial Supply Inc brand name would be a possible alternative or not. We have actually firstly looked at the kind of consumers that Bodie Industrial Supply Inc deals in while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Bodie Industrial Supply Inc name.
Bodie Industrial Supply Inc clients can be segmented into 2 groups, final customers and commercial customers. Both the groups utilize Bodie Industrial Supply Inc high performance adhesives while the business is not only involved in the production of these adhesives but also markets them to these client groups. There are 2 kinds of products that are being sold to these possible markets; instantaneous adhesives and anaerobic adhesives. We would be focusing on the customers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Bodie Industrial Supply Inc compared to that of immediate adhesives.
The total market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both client groups which have been identified earlier.If we look at a breakdown of Bodie Industrial Supply Inc possible market or client groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair work and upgrading business (MRO) and producers dealing in products made from leather, wood, plastic and metal. This variety in consumers recommends that Bodie Industrial Supply Inc can target has different alternatives in regards to segmenting the marketplace for its brand-new item specifically as each of these groups would be needing the very same type of item with respective changes in need, quantity or product packaging. Nevertheless, the consumer is not rate delicate or brand mindful so launching a low priced dispenser under Bodie Industrial Supply Inc name is not an advised option.
Bodie Industrial Supply Inc is not just a manufacturer of adhesives but delights in market management in the instantaneous adhesive industry. The business has its own competent and qualified sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Bodie Industrial Supply Inc believes in special circulation as shown by the fact that it has actually selected to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for broadening reach through suppliers. The company's reach is not restricted to North America only as it also enjoys global sales. With 1400 outlets spread out all throughout North America, Bodie Industrial Supply Inc has its internal production plants rather than utilizing out-sourcing as the preferred strategy.
Core proficiencies are not limited to adhesive manufacturing just as Bodie Industrial Supply Inc likewise specializes in making adhesive dispensing equipment to assist in the use of its products. This double production strategy provides Bodie Industrial Supply Inc an edge over rivals considering that none of the rivals of dispensing devices makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the customer either and makes use of distributors for reaching out to consumers. While we are taking a look at the strengths of Bodie Industrial Supply Inc, it is necessary to highlight the business's weak points also.
Although the business's sales personnel is proficient in training suppliers, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It must likewise be noted that the distributors are showing unwillingness when it comes to selling devices that needs servicing which increases the obstacles of selling equipment under a specific brand name.
If we take a look at Bodie Industrial Supply Inc product line in adhesive devices particularly, the business has actually items focused on the high-end of the market. The possibility of sales cannibalization exists if Bodie Industrial Supply Inc sells Case Study Help under the exact same portfolio. Given the fact that Case Study Help is priced lower than Bodie Industrial Supply Inc high-end line of product, sales cannibalization would certainly be impacting Bodie Industrial Supply Inc sales revenue if the adhesive devices is offered under the company's brand.
We can see sales cannibalization impacting Bodie Industrial Supply Inc 27A Pencil Applicator which is priced at $275. There is another possible threat which might reduce Bodie Industrial Supply Inc earnings if Case Study Help is launched under the company's brand. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a good 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 look at the market in general, the adhesives market does disappoint brand name orientation or rate awareness which gives us 2 additional reasons for not launching a low priced product under the business's trademark name.
The competitive environment of Bodie Industrial Supply Inc would be studied through 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 market is low specifically as the buyer has low knowledge about the item. While companies like Bodie Industrial Supply Inc have managed to train suppliers concerning adhesives, the final consumer is dependent on distributors. Approximately 72% of sales are made straight by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by three gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. Nevertheless, the truth remains that the provider does not have much impact over the purchaser at this moment particularly as the purchaser does not show brand acknowledgment or price sensitivity. This shows that the distributor has the greater power when it pertains to the adhesive market while the purchaser and the maker do not have a major control over the actual 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 instant adhesive market suggests that the marketplace permits ease of entry. However, if we look at Bodie Industrial Supply Inc in particular, the business has double abilities in regards to being a maker of instantaneous adhesives and adhesive dispensers. Prospective risks in equipment dispensing industry are low which reveals the possibility of producing brand name awareness in not only instant adhesives however also in giving adhesives as none of the market players has managed to place itself in double capabilities.
Danger of Substitutes: The risk of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality stays that if Bodie Industrial Supply Inc presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given numerous reasons for not launching Case Study Help under Bodie Industrial Supply Inc name, we have actually a suggested marketing mix for Case Study Help offered listed below if Bodie Industrial Supply Inc chooses to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra growth potential of 10.1% which may be a good enough niche market sector for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This price would not consist of the expense of the 'vari suggestion' or the 'glumetic tip'. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to acquire the item on his own. This would increase the possibility of affecting mechanics to buy the item for usage in their day-to-day maintenance tasks.
Bodie Industrial Supply Inc would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Bodie Industrial Supply Inc for launching Case Study Help.
Place: A distribution design where Bodie Industrial Supply Inc directly sends out the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Bodie Industrial Supply Inc. Considering that the sales group is currently engaged in selling instant adhesives and they do not have proficiency in offering dispensers, including them in the selling process would be costly specifically as each sales call expenses roughly $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: A low marketing budget plan ought to have been appointed to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended marketing strategy costing $51816 is advised for initially introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
