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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
The following area focuses on the of marketing for Cequel Energy Inc Increasing Shareholder Value where the company's clients, rivals and core competencies have assessed in order to justify whether the decision to launch Case Study Help under Cequel Energy Inc Increasing Shareholder Value trademark name would be a possible option or not. We have to start with looked at the type of customers that Cequel Energy Inc Increasing Shareholder Value deals in while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Cequel Energy Inc Increasing Shareholder Value name.
Cequel Energy Inc Increasing Shareholder Value consumers can be segmented into 2 groups, last customers and industrial clients. Both the groups utilize Cequel Energy Inc Increasing Shareholder Value high performance adhesives while the business is not just associated with the production of these adhesives however likewise markets them to these customer groups. There are 2 kinds of products that are being sold to these prospective markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of instantaneous adhesives for this analysis since 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 instantaneous adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have actually been recognized earlier.If we take a look at a breakdown of Cequel Energy Inc Increasing Shareholder Value possible market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and makers dealing in products made from leather, metal, wood and plastic. This diversity in clients recommends that Cequel Energy Inc Increasing Shareholder Value can target has various options in regards to segmenting the marketplace for its brand-new item especially as each of these groups would be needing the very same kind of product with particular changes in demand, product packaging or quantity. The customer is not price delicate or brand name conscious so launching a low priced dispenser under Cequel Energy Inc Increasing Shareholder Value name is not a recommended option.
Cequel Energy Inc Increasing Shareholder Value is not just a manufacturer of adhesives however delights in market management in the immediate adhesive market. The business has its own skilled and qualified sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives. Cequel Energy Inc Increasing Shareholder Value believes in exclusive circulation as indicated by the reality that it has actually selected to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for expanding reach via distributors. The company's reach is not restricted to The United States and Canada just as it likewise delights in international sales. With 1400 outlets spread out all throughout The United States and Canada, Cequel Energy Inc Increasing Shareholder Value has its internal production plants instead of utilizing out-sourcing as the favored technique.
Core competences are not restricted to adhesive manufacturing just as Cequel Energy Inc Increasing Shareholder Value likewise concentrates on making adhesive dispensing equipment to help with using its items. This dual production technique gives Cequel Energy Inc Increasing Shareholder Value an edge over competitors considering that none of the competitors of dispensing devices makes instant adhesives. Additionally, none of these rivals offers straight to the customer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Cequel Energy Inc Increasing Shareholder Value, it is crucial to highlight the business's weak points.
The business's sales staff is proficient in training distributors, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It ought to also be noted that the suppliers are showing hesitation when it comes to selling equipment that requires maintenance which increases the difficulties of selling equipment under a particular brand name.
The business has items aimed at the high end of the market if we look at Cequel Energy Inc Increasing Shareholder Value product line in adhesive equipment especially. The possibility of sales cannibalization exists if Cequel Energy Inc Increasing Shareholder Value sells Case Study Help under the same portfolio. Provided the truth that Case Study Help is priced lower than Cequel Energy Inc Increasing Shareholder Value high-end line of product, sales cannibalization would definitely be affecting Cequel Energy Inc Increasing Shareholder Value sales revenue if the adhesive devices is offered under the business's brand name.
We can see sales cannibalization impacting Cequel Energy Inc Increasing Shareholder Value 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible threat which might reduce Cequel Energy Inc Increasing Shareholder Value profits. The reality that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which offers us two additional factors for not introducing a low priced product under the business's brand name.
The competitive environment of Cequel Energy Inc Increasing Shareholder Value would be studied through Porter's five 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 buyer has low knowledge about the item. While business like Cequel Energy Inc Increasing Shareholder Value have actually managed to train suppliers concerning adhesives, the final consumer depends on distributors. Around 72% of sales are made straight by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by three gamers, it could be said that the provider enjoys a greater bargaining power compared to the buyer. The fact stays that the provider does not have much impact over the buyer at this point especially as the purchaser does not show brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a major control over the actual sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the market allows ease of entry. However, if we take a look at Cequel Energy Inc Increasing Shareholder Value in particular, the business has dual abilities in regards to being a producer of instantaneous adhesives and adhesive dispensers. Potential threats in equipment dispensing market are low which reveals the possibility of producing brand name awareness in not only instant adhesives however also in dispensing adhesives as none of the industry players has managed to position itself in dual abilities.
Risk of Substitutes: The danger of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Cequel Energy Inc Increasing Shareholder Value introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided various 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 offered listed below if Cequel Energy Inc Increasing Shareholder Value chooses to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of reasons. There are presently 89257 establishments in this segment and a high usage of approximately 58900 lbs. is being utilized by 36.1 % of the market. This market has an extra growth capacity of 10.1% which may be a sufficient niche market section for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost usage 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 price 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 below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to buy the item on his own.
Cequel Energy Inc Increasing Shareholder Value would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Cequel Energy Inc Increasing Shareholder Value for releasing Case Study Help.
Place: A circulation design where Cequel Energy Inc Increasing Shareholder Value directly sends out the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Cequel Energy Inc Increasing Shareholder Value. Given that the sales team is already engaged in offering immediate adhesives and they do not have competence in offering dispensers, including them in the selling process would be expensive especially as each sales call costs around $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable option.
Promotion: Although a low marketing budget plan must have been appointed to Case Study Help but the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising strategy costing $51816 is advised for initially presenting the product in the market. The planned ads in magazines would be targeted at mechanics in car maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
