Brick By Brick Case Study Help Checklist

Brick By Brick Case Study Help Checklist

Brick By Brick Case Study Solution
Brick By Brick Case Study Help
Brick By Brick Case Study Analysis

Analyses for Evaluating Brick By Brick decision to launch Case Study Solution

The following section focuses on the of marketing for Brick By Brick where the business's consumers, competitors and core proficiencies have assessed in order to justify whether the choice to release Case Study Help under Brick By Brick brand name would be a feasible option or not. We have actually firstly looked at the type of consumers that Brick By Brick deals in while an evaluation 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 Brick By Brick name.
Brick By Brick Case Study Solution

Customer Analysis

Brick By Brick customers can be segmented into two groups, final consumers and industrial customers. Both the groups utilize Brick By Brick high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these customer groups. There are two types of products that are being sold to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis since the marketplace for the latter has a lower potential for Brick By Brick compared to that of immediate adhesives.

The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Brick By Brick prospective market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and producers handling items made from leather, wood, metal and plastic. This variety in consumers recommends that Brick By Brick can target has various options in terms of segmenting the marketplace for its brand-new item especially as each of these groups would be needing the very same type of item with respective changes in product packaging, amount or demand. The consumer is not price sensitive or brand name conscious so launching a low priced dispenser under Brick By Brick name is not a recommended alternative.

Company Analysis

Brick By Brick is not simply a maker of adhesives however delights in market leadership in the instant adhesive market. The company has its own skilled and qualified sales force which adds value to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Brick By Brick believes in special circulation as shown by the reality that it has chosen to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for expanding reach by means of distributors. The company's reach is not restricted to The United States and Canada only as it likewise delights in international sales. With 1400 outlets spread all across The United States and Canada, Brick By Brick has its in-house production plants rather than using out-sourcing as the preferred strategy.

Core competences are not restricted to adhesive manufacturing just as Brick By Brick likewise focuses on making adhesive giving equipment to assist in using its items. This dual production strategy offers Brick By Brick an edge over rivals considering that none of the rivals of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors sells directly to the consumer either and makes use of suppliers for reaching out to customers. While we are looking at the strengths of Brick By Brick, it is essential to highlight the company's weak points.

The business's sales personnel is experienced in training distributors, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it must likewise be kept in mind that the distributors are revealing unwillingness when it comes to selling devices that needs servicing which increases the obstacles of offering devices under a particular trademark name.

If we look at Brick By Brick line of product in adhesive equipment particularly, the business has items targeted at the luxury of the market. The possibility of sales cannibalization exists if Brick By Brick offers Case Study Help under the very same portfolio. Offered the reality that Case Study Help is priced lower than Brick By Brick high-end product line, sales cannibalization would absolutely be affecting Brick By Brick sales earnings if the adhesive devices is offered under the business's trademark name.

We can see sales cannibalization affecting Brick By Brick 27A Pencil Applicator which is priced at $275. There is another possible hazard which could reduce Brick By Brick earnings if Case Study Help is launched under the business's brand. The reality that $175000 has been spent in promoting SuperBonder recommends 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 instant adhesive.

Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or price consciousness which offers us two extra factors for not releasing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Brick By Brick would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high development potential due to the presence of fragmented sections with Brick By Brick enjoying management and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry rivalry between these players could be called 'extreme' as the customer is not brand mindful and each of these players has prominence in regards to market share, the fact still stays that the industry is not saturated and still has several market sectors which can be targeted as prospective niche markets even when releasing an adhesive. However, we can even explain the reality that sales cannibalization may be resulting in industry rivalry in the adhesive dispenser market while the market for immediate adhesives offers development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the purchaser has low understanding about the product. While business like Brick By Brick have actually managed to train suppliers concerning adhesives, the final consumer is dependent on distributors. Roughly 72% of sales are made directly by producers and suppliers for instant adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by 3 players, it could be stated that the supplier delights in a greater bargaining power compared to the buyer. The reality stays that the supplier does not have much impact over the buyer at this point specifically as the purchaser does not reveal brand recognition or rate sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the real sales, this suggests 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 suggests that the market enables ease of entry. If we look at Brick By Brick in specific, the business has double abilities in terms of being a maker of instant adhesives and adhesive dispensers. Possible hazards in devices giving industry are low which shows the possibility of creating brand awareness in not just instant adhesives but also in dispensing adhesives as none of the market gamers has managed to position itself in dual abilities.

Threat of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The reality remains that if Brick By Brick presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Brick By Brick Case Study Help

Despite the fact that our 3C analysis has actually provided various reasons for not launching Case Study Help under Brick By Brick name, we have actually a suggested marketing mix for Case Study Help offered below if Brick By Brick chooses to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional growth capacity of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser deal 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 distributors or via direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance shop requires to acquire the product on his own.

Brick By Brick would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Brick By Brick for introducing Case Study Help.

Place: A circulation model where Brick By Brick straight sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Brick By Brick. Since the sales team is currently participated in selling instantaneous adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: Although a low advertising budget plan ought to have been designated to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended marketing strategy costing $51816 is recommended for at first introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Brick By Brick Case Study Analysis

A suggested strategy of action in the type of a marketing mix has been talked about for Case Study Help, the fact still stays that the item would not complement Brick By Brick item line. We take a look at appendix 2, we can see how the overall gross success for the two designs is anticipated to be around $49377 if 250 units of each model are manufactured each year according to the plan. The preliminary prepared advertising is approximately $52000 per year which would be putting a strain on the business's resources leaving Brick By Brick with a negative net income if the costs are assigned to Case Study Help just.

The fact that Brick By Brick has already incurred an initial financial investment of $48000 in the form of capital cost and prototype development indicates that the income from Case Study Help is insufficient to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a preferable choice specifically of it is impacting the sale of the business's earnings creating designs.