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Cequel Energy Inc Increasing Shareholder Value Case Study Help Checklist

Cequel Energy Inc Increasing Shareholder Value Case Study Help Checklist

Cequel Energy Inc Increasing Shareholder Value Case Study Solution
Cequel Energy Inc Increasing Shareholder Value Case Study Help
Cequel Energy Inc Increasing Shareholder Value Case Study Analysis



Analyses for Evaluating Cequel Energy Inc Increasing Shareholder Value decision to launch Case Study Solution


The following area focuses on the of marketing for Cequel Energy Inc Increasing Shareholder Value where the business's customers, competitors and core competencies have evaluated in order to validate whether the choice to release Case Study Help under Cequel Energy Inc Increasing Shareholder Value trademark name would be a practical choice or not. We have actually first of all taken a look at the kind of clients that Cequel Energy Inc Increasing Shareholder Value deals in while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Cequel Energy Inc Increasing Shareholder Value name.
Cequel Energy Inc Increasing Shareholder Value Case Study Solution

Customer Analysis

Both the groups use Cequel Energy Inc Increasing Shareholder Value high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the customers of immediate adhesives for this analysis because the market for the latter has a lower potential for Cequel Energy Inc Increasing Shareholder Value compared to that of instantaneous adhesives.

The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we look at a breakdown of Cequel Energy Inc Increasing Shareholder Value potential market or consumer groups, we can see that the business sells to OEMs (Original Devices Producers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and makers dealing in items made of leather, wood, metal and plastic. This variety in consumers suggests that Cequel Energy Inc Increasing Shareholder Value can target has numerous choices in terms of segmenting the market for its new item specifically as each of these groups would be requiring the same kind of item with particular changes in need, product packaging or amount. The client is not cost delicate or brand conscious so releasing a low priced dispenser under Cequel Energy Inc Increasing Shareholder Value name is not an advised alternative.

Company Analysis

Cequel Energy Inc Increasing Shareholder Value is not just a manufacturer of adhesives however delights in market leadership in the immediate adhesive industry. The business has its own proficient and competent sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not restricted to adhesive manufacturing just as Cequel Energy Inc Increasing Shareholder Value also focuses on making adhesive giving devices to help with the use of its products. This dual production method gives Cequel Energy Inc Increasing Shareholder Value an edge over rivals given that none of the rivals of giving devices makes instant adhesives. Furthermore, none of these competitors sells directly to the customer either and uses suppliers for connecting to clients. While we are looking at the strengths of Cequel Energy Inc Increasing Shareholder Value, it is very important to highlight the company's weaknesses as well.

Although the company's sales personnel is skilled in training suppliers, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it ought to likewise be kept in mind that the distributors are revealing unwillingness when it comes to selling devices that requires maintenance which increases the obstacles of offering devices under a specific brand.

If we take a look at Cequel Energy Inc Increasing Shareholder Value product line in adhesive equipment especially, the business has items focused on the high end of the marketplace. If Cequel Energy Inc Increasing Shareholder Value sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Cequel Energy Inc Increasing Shareholder Value high-end product line, sales cannibalization would certainly be impacting Cequel Energy Inc Increasing Shareholder Value sales revenue if the adhesive equipment is offered under the company's brand name.

We can see sales cannibalization affecting Cequel Energy Inc Increasing Shareholder Value 27A Pencil Applicator which is priced at $275. There is another possible hazard which could lower Cequel Energy Inc Increasing Shareholder Value profits if Case Study Help is introduced under the company's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder recommends 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.

Furthermore, if we look at the marketplace in general, the adhesives market does not show brand orientation or rate awareness which gives us 2 additional factors for not launching a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Cequel Energy Inc Increasing Shareholder Value would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high development potential due to the presence of fragmented segments with Cequel Energy Inc Increasing Shareholder Value delighting in management and a combined market share of 75% with two other market gamers, Eastman and Permabond. While industry rivalry in between these players could be called 'intense' as the consumer is not brand conscious and each of these gamers has prominence in terms of market share, the truth still stays that the market is not saturated and still has several market sectors which can be targeted as prospective specific niche markets even when releasing an adhesive. We can even point out the truth that sales cannibalization might be leading to industry rivalry in the adhesive dispenser market while the market for instantaneous adhesives uses growth capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low understanding about the item. While companies like Cequel Energy Inc Increasing Shareholder Value have actually managed to train distributors concerning adhesives, the final consumer depends on suppliers. Roughly 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by 3 players, it could be said that the supplier enjoys a greater bargaining power compared to the purchaser. However, the truth stays that the provider does not have much impact over the purchaser at this point specifically as the buyer does not show brand name acknowledgment or cost level of sensitivity. This shows that the distributor has the higher power when it concerns the adhesive market while the buyer and the producer do not have a significant control over the real sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market indicates that the marketplace allows ease of entry. Nevertheless, if we look at Cequel Energy Inc Increasing Shareholder Value in particular, the business has double capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible threats in equipment giving market are low which reveals the possibility of creating brand name awareness in not just instant adhesives but likewise in dispensing adhesives as none of the market players has actually handled to position itself in dual capabilities.

Threat of Substitutes: The threat of alternatives in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The reality stays that if Cequel Energy Inc Increasing Shareholder Value introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).


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

Cequel Energy Inc Increasing Shareholder Value Case Study Help


Despite the fact that our 3C analysis has actually offered different factors for not launching Case Study Help under Cequel Energy Inc Increasing Shareholder Value name, we have actually a recommended marketing mix for Case Study Help given listed below if Cequel Energy Inc Increasing Shareholder Value chooses to go ahead with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of factors. There are currently 89257 establishments in this sector and a high use of around 58900 pounds. is being used by 36.1 % of the market. This market has an extra development potential of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The item would be sold without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wishes to go with either of the two devices or not.

Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This rate would not include the cost of the 'vari pointer' 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 shop requires to acquire the item on his own. This would increase the possibility of affecting mechanics to purchase the item for usage in their daily maintenance tasks.

Cequel Energy Inc Increasing Shareholder Value would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Cequel Energy Inc Increasing Shareholder Value for introducing Case Study Help.

Place: A circulation design where Cequel Energy Inc Increasing Shareholder Value straight sends out the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by Cequel Energy Inc Increasing Shareholder Value. Since the sales group is currently engaged in offering immediate adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be costly especially as each sales call expenses around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: Although a low marketing spending plan ought to have been appointed to Case Study Help but the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing strategy costing $51816 is advised for at first introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in car upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Cequel Energy Inc Increasing Shareholder Value Case Study Analysis

A suggested plan of action in the kind of a marketing mix has actually been talked about for Case Study Help, the fact still remains that the item would not complement Cequel Energy Inc Increasing Shareholder Value item line. We take a look at appendix 2, we can see how the total gross profitability for the two designs is expected to be around $49377 if 250 units of each model are produced each year as per the plan. Nevertheless, the initial planned marketing is around $52000 each year which would be putting a stress on the company's resources leaving Cequel Energy Inc Increasing Shareholder Value with an unfavorable earnings if the costs are allocated to Case Study Help just.

The truth that Cequel Energy Inc Increasing Shareholder Value has actually already sustained an initial investment of $48000 in the form of capital cost and prototype development indicates that the income from Case Study Help is insufficient to carry out the danger of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a preferable choice particularly of it is impacting the sale of the business's profits generating designs.



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