The following area focuses on the of marketing for Bodie Industrial Supply Inc where the business's clients, competitors and core proficiencies have examined in order to validate whether the decision to release Case Study Help under Bodie Industrial Supply Inc brand name would be a possible option or not. We have to start with looked at the kind of customers that Bodie Industrial Supply Inc handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Bodie Industrial Supply Inc name.
Bodie Industrial Supply Inc consumers can be segmented into two groups, industrial clients and final customers. Both the groups use Bodie Industrial Supply Inc high performance adhesives while the business is not only associated with the production of these adhesives but likewise markets them to these client groups. There are two types of products that are being sold to these possible markets; anaerobic adhesives and instant adhesives. We would be concentrating on the customers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Bodie Industrial Supply Inc compared to that of instantaneous adhesives.
The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been recognized earlier.If we take a look at a breakdown of Bodie Industrial Supply Inc potential market or customer groups, we can see that the business offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair work and upgrading companies (MRO) and makers dealing in products made of leather, metal, plastic and wood. This diversity in clients recommends that Bodie Industrial Supply Inc can target has numerous choices in regards to segmenting the market for its brand-new item specifically as each of these groups would be needing the very same kind of product with particular changes in need, amount or product packaging. The consumer is not price delicate or brand mindful so releasing a low priced dispenser under Bodie Industrial Supply Inc name is not a suggested choice.
Bodie Industrial Supply Inc is not simply a manufacturer of adhesives however enjoys market leadership in the instantaneous adhesive industry. The business has its own skilled and certified sales force which adds value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Bodie Industrial Supply Inc believes in exclusive circulation as suggested by the truth that it has picked to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for broadening reach through distributors. The company's reach is not limited to The United States and Canada only as it likewise delights in international sales. With 1400 outlets spread out all across The United States and Canada, Bodie Industrial Supply Inc has its internal production plants instead of utilizing out-sourcing as the preferred technique.
Core proficiencies are not limited to adhesive manufacturing just as Bodie Industrial Supply Inc also focuses on making adhesive dispensing devices to help with using its products. This dual production technique provides Bodie Industrial Supply Inc an edge over competitors considering that none of the rivals of dispensing equipment makes immediate adhesives. Furthermore, none of these competitors offers directly to the customer either and utilizes suppliers for reaching out to clients. While we are taking a look at the strengths of Bodie Industrial Supply Inc, it is important to highlight the business's weak points also.
The business's sales staff is experienced in training suppliers, the reality stays that the sales group is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it ought to also be noted that the suppliers are showing unwillingness when it comes to selling equipment that requires maintenance which increases the challenges of offering equipment under a specific trademark name.
The company has products aimed at the high end of the market if we look at Bodie Industrial Supply Inc product line in adhesive equipment especially. If Bodie Industrial Supply Inc offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Bodie Industrial Supply Inc high-end product line, sales cannibalization would definitely be impacting Bodie Industrial Supply Inc sales income if the adhesive equipment is sold under the company's trademark name.
We can see sales cannibalization impacting Bodie Industrial Supply Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible threat which could decrease Bodie Industrial Supply Inc profits. The truth that $175000 has been invested in promoting SuperBonder suggests that it is not a great 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 immediate adhesive.
Furthermore, if we look at the market in general, the adhesives market does not show brand orientation or cost consciousness which provides us two extra reasons for not introducing a low priced item under the company's brand name.
The competitive environment of Bodie Industrial Supply Inc would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low knowledge about the product. While companies like Bodie Industrial Supply Inc have actually handled to train distributors relating to adhesives, the last consumer depends on distributors. Roughly 72% of sales are made straight by manufacturers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 gamers, it could be said that the provider delights in a higher bargaining power compared to the purchaser. The truth stays that the supplier does not have much impact over the buyer at this point specifically as the purchaser does not show brand recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the real sales, this indicates that the distributor 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 competitors in the instant adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we look at Bodie Industrial Supply Inc in particular, the business has double abilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Possible dangers in devices dispensing market are low which shows the possibility of creating brand awareness in not just instant adhesives but likewise in dispensing adhesives as none of the industry gamers has actually managed to place itself in dual capabilities.
Hazard of Substitutes: The hazard of replacements in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Bodie Industrial Supply Inc 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 provided various reasons for not releasing Case Study Help under Bodie Industrial Supply Inc name, we have a suggested marketing mix for Case Study Help given listed below if Bodie Industrial Supply Inc decides to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional growth potential of 10.1% which might be an excellent enough specific niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the reality that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. This rate would not include the cost of the 'vari idea' or the 'glumetic idea'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to acquire the item on his own. This would increase the possibility of affecting mechanics to buy the item for use in their daily upkeep jobs.
Bodie Industrial Supply Inc would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net profitability for Bodie Industrial Supply Inc for introducing Case Study Help.
Place: A circulation model where Bodie Industrial Supply Inc directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the distributor would be used by Bodie Industrial Supply Inc. Because the sales team is currently participated in selling instant adhesives and they do not have expertise in selling dispensers, including them in the selling process would be expensive specifically as each sales call costs around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low marketing budget plan must 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 advertising strategy costing $51816 is suggested for initially introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).