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Cachet Technologies Case Study Help Checklist

Cachet Technologies Case Study Help Checklist

Cachet Technologies Case Study Solution
Cachet Technologies Case Study Help
Cachet Technologies Case Study Analysis



Analyses for Evaluating Cachet Technologies decision to launch Case Study Solution


The following section concentrates on the of marketing for Cachet Technologies where the business's customers, rivals and core competencies have evaluated in order to validate whether the decision to introduce Case Study Help under Cachet Technologies trademark name would be a feasible alternative or not. We have to start with looked at the type of customers that Cachet Technologies deals in while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Cachet Technologies name.
Cachet Technologies Case Study Solution

Customer Analysis

Cachet Technologies customers can be segmented into two groups, final customers and commercial consumers. Both the groups use Cachet Technologies high performance adhesives while the company is not just involved in the production of these adhesives however likewise markets them to these client groups. There are two types of products that are being sold to these prospective markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of immediate adhesives for this analysis since the market for the latter has a lower potential for Cachet Technologies compared to that of immediate adhesives.

The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have actually been recognized earlier.If we look at a breakdown of Cachet Technologies prospective market or customer groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself customers, repair work and upgrading business (MRO) and makers dealing in items made from leather, wood, metal and plastic. This diversity in consumers suggests that Cachet Technologies can target has different alternatives in regards to segmenting the marketplace for its new product especially as each of these groups would be needing the exact same type of item with respective modifications in amount, demand or packaging. Nevertheless, the customer is not cost sensitive or brand name conscious so introducing a low priced dispenser under Cachet Technologies name is not an advised alternative.

Company Analysis

Cachet Technologies is not simply a producer of adhesives but takes pleasure in market management in the immediate adhesive industry. The company has its own competent and qualified sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Cachet Technologies believes in special circulation as suggested by the reality that it has picked to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for expanding reach through suppliers. The company's reach is not limited to North America just as it likewise delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Cachet Technologies has its in-house production plants instead of using out-sourcing as the preferred method.

Core competences are not restricted to adhesive manufacturing only as Cachet Technologies also focuses on making adhesive dispensing devices to facilitate using its items. This double production method gives Cachet Technologies an edge over rivals given that none of the rivals of giving equipment makes instant adhesives. In addition, none of these competitors offers directly to the consumer either and uses suppliers for reaching out to clients. While we are looking at the strengths of Cachet Technologies, it is crucial to highlight the company's weaknesses.

Although the business's sales personnel is skilled in training distributors, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It should likewise be kept in mind that the distributors are showing unwillingness when it comes to selling devices that needs servicing which increases the challenges of selling devices under a particular brand name.

If we take a look at Cachet Technologies line of product in adhesive devices especially, the business has actually items focused on the high-end of the marketplace. If Cachet Technologies sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Cachet Technologies high-end line of product, sales cannibalization would absolutely be impacting Cachet Technologies sales earnings if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization impacting Cachet Technologies 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible risk which could lower Cachet Technologies revenue. The reality that $175000 has actually 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 instant adhesive.

In addition, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost awareness which provides us two extra reasons for not introducing a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Cachet Technologies would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sections with Cachet Technologies enjoying leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While industry rivalry in between these gamers could be called 'extreme' as the customer is not brand name conscious and each of these gamers has prominence in terms of market share, the fact still remains that the industry is not saturated and still has numerous market segments which can be targeted as prospective niche markets even when introducing an adhesive. However, we can even explain the fact that sales cannibalization might be resulting in market rivalry in the adhesive dispenser market while the market for immediate adhesives provides growth potential.


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 Cachet Technologies have managed to train suppliers concerning adhesives, the last customer is dependent on distributors. Approximately 72% of sales are made straight by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by three players, it could be said that the provider takes pleasure in a greater bargaining power compared to the buyer. However, the reality stays that the supplier does not have much impact over the buyer at this point especially as the buyer does not show brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a major control over the real sales, this indicates that the distributor has the greater power.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we look at Cachet Technologies in particular, the business has double capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective hazards in devices dispensing market are low which reveals the possibility of creating brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the market gamers has actually handled to position itself in dual capabilities.

Risk of Substitutes: The danger of alternatives in the immediate 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 remains that if Cachet Technologies presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Cachet Technologies Case Study Help


Despite the fact that our 3C analysis has provided numerous reasons for not launching Case Study Help under Cachet Technologies name, we have a suggested marketing mix for Case Study Help given below if Cachet Technologies decides to proceed with the launch.

Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a number of reasons. There are presently 89257 establishments in this segment and a high usage of approximately 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 good enough niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic idea' and 'vari-drop' so that the consumer can choose whether he wishes to select either of the two accessories 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 suppliers or through direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance shop requires to acquire the product on his own.

Cachet Technologies would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Cachet Technologies for releasing Case Study Help.

Place: A distribution model where Cachet Technologies straight sends out the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Cachet Technologies. Since the sales group is currently engaged in selling immediate adhesives and they do not have competence in selling dispensers, involving them in the selling procedure would be costly especially as each sales call costs around $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: Although a low marketing budget plan must have been assigned to Case Study Help however the truth 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 marketing plan costing $51816 is advised for initially presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in lorry upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Cachet Technologies Case Study Analysis

A recommended plan of action in the type of a marketing mix has actually been discussed for Case Study Help, the truth still stays that the item would not match Cachet Technologies product line. We have a look at appendix 2, we can see how the total gross success for the two designs is expected to be around $49377 if 250 units of each design are manufactured each year as per the plan. However, the initial planned advertising is around $52000 annually which would be putting a stress on the business's resources leaving Cachet Technologies with an unfavorable net income if the expenditures are designated to Case Study Help just.

The fact that Cachet Technologies has actually already incurred an initial financial investment of $48000 in the form of capital expense and model development indicates that the revenue from Case Study Help is not enough to carry out the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable option particularly of it is affecting the sale of the business's profits producing designs.



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