Cintas Y Lazos Inc Case Study Help Checklist

Cintas Y Lazos Inc Case Study Help Checklist

Cintas Y Lazos Inc Case Study Solution
Cintas Y Lazos Inc Case Study Help
Cintas Y Lazos Inc Case Study Analysis

Analyses for Evaluating Cintas Y Lazos Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Cintas Y Lazos Inc where the business's consumers, rivals and core competencies have examined in order to justify whether the choice to launch Case Study Help under Cintas Y Lazos Inc brand name would be a possible alternative or not. We have first of all looked at the kind of consumers that Cintas Y Lazos Inc deals in while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Cintas Y Lazos Inc name.
Cintas Y Lazos Inc Case Study Solution

Customer Analysis

Cintas Y Lazos Inc consumers can be segmented into two groups, final customers and commercial clients. Both the groups use Cintas Y Lazos Inc high performance adhesives while the company is not only associated with the production of these adhesives however also markets them to these client groups. There are two types of products that are being sold to these prospective markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of instant adhesives for this analysis given that the marketplace for the latter has a lower capacity for Cintas Y Lazos Inc compared to that of immediate adhesives.

The total market for immediate adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Cintas Y Lazos Inc prospective market or client groups, we can see that the company offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and manufacturers handling items made from leather, metal, wood and plastic. This variety in customers recommends that Cintas Y Lazos Inc can target has numerous choices in terms of segmenting the marketplace for its brand-new item especially as each of these groups would be needing the exact same type of product with respective changes in quantity, packaging or need. However, the consumer is not cost sensitive or brand name mindful so releasing a low priced dispenser under Cintas Y Lazos Inc name is not an advised choice.

Company Analysis

Cintas Y Lazos Inc is not just a producer of adhesives however delights in market management in the immediate adhesive market. The business has its own competent and certified sales force which adds value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.

Core skills are not limited to adhesive production only as Cintas Y Lazos Inc also concentrates on making adhesive dispensing devices to help with making use of its items. This dual production technique provides Cintas Y Lazos Inc an edge over rivals since none of the competitors of giving equipment makes immediate adhesives. In addition, none of these rivals offers straight to the consumer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Cintas Y Lazos Inc, it is important to highlight the business's weaknesses.

The business's sales personnel is skilled in training suppliers, the fact remains that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It ought to also be kept in mind that the suppliers are revealing hesitation when it comes to offering devices that needs maintenance which increases the obstacles of offering devices under a specific brand name.

The business has products aimed at the high end of the market if we look at Cintas Y Lazos Inc product line in adhesive equipment particularly. If Cintas Y Lazos Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Cintas Y Lazos Inc high-end product line, sales cannibalization would certainly be affecting Cintas Y Lazos Inc sales earnings if the adhesive devices is offered under the business's brand name.

We can see sales cannibalization affecting Cintas Y Lazos Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible threat which might lower Cintas Y Lazos Inc earnings. The truth 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 instantaneous adhesive.

Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which gives us 2 extra reasons for not introducing a low priced item under the company's brand.

Competitor Analysis

The competitive environment of Cintas Y Lazos Inc would be studied via 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 development potential due to the presence of fragmented sections with Cintas Y Lazos Inc taking pleasure in leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry rivalry in between these gamers could be called 'extreme' as the customer is not brand conscious and each of these gamers has prominence in terms of market share, the fact still stays that the market is not saturated and still has a number of market segments which can be targeted as prospective niche markets even when launching an adhesive. We can even point out the fact that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instantaneous adhesives provides development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low knowledge about the item. While business like Cintas Y Lazos Inc have managed to train suppliers relating to adhesives, the last consumer is dependent on distributors. Approximately 72% of sales are made directly by makers and distributors for instant adhesives so the buyer 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 supplier delights in a greater bargaining power compared to the purchaser. However, the reality remains that the supplier does not have much impact over the buyer at this point specifically as the purchaser does not show brand name acknowledgment or price sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the real sales, this indicates that the supplier 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 instant adhesive market indicates that the market allows ease of entry. However, if we look at Cintas Y Lazos Inc in particular, the business has double abilities in regards to being a manufacturer of adhesive dispensers and instant adhesives. Potential dangers in equipment dispensing industry are low which shows the possibility of producing brand awareness in not just instantaneous adhesives but also in giving adhesives as none of the market gamers has handled to position itself in double abilities.

Threat of Substitutes: The risk of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality stays that if Cintas Y Lazos Inc presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).

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

Cintas Y Lazos Inc Case Study Help

Despite the fact that our 3C analysis has actually given numerous reasons for not introducing Case Study Help under Cintas Y Lazos Inc name, we have a recommended marketing mix for Case Study Help provided below if Cintas Y Lazos Inc chooses to proceed 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 development capacity of 10.1% which may be a great adequate specific niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the reality that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being offered for use with SuperBonder.

Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to buy the item on his own.

Cintas Y Lazos Inc would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Cintas Y Lazos Inc for introducing Case Study Help.

Place: A circulation design where Cintas Y Lazos Inc directly sends the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Cintas Y Lazos Inc. Since the sales team is currently taken part in selling immediate adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be costly especially as each sales call expenses roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: Although a low advertising budget should have been designated to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Cintas Y Lazos Inc Case Study Analysis

A recommended plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the fact still remains that the item would not match Cintas Y Lazos Inc product line. We take a look at appendix 2, we can see how the total gross profitability for the two designs is expected to be approximately $49377 if 250 systems of each model are manufactured each year according to the plan. The initial planned advertising is around $52000 per year which would be putting a pressure on the company's resources leaving Cintas Y Lazos Inc with a negative net income if the expenses are designated to Case Study Help just.

The truth that Cintas Y Lazos Inc has already incurred a preliminary investment of $48000 in the form of capital cost and model development shows that the income from Case Study Help is not enough to undertake the threat of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable option especially of it is impacting the sale of the business's profits producing models.