The following area focuses on the of marketing for Citibank Card Product Group where the business's clients, competitors and core competencies have actually evaluated in order to validate whether the choice to release Case Study Help under Citibank Card Product Group brand name would be a possible choice or not. We have firstly looked at the type of customers that Citibank Card Product Group handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Citibank Card Product Group name.
Citibank Card Product Group customers can be segmented into 2 groups, final customers and commercial customers. Both the groups use Citibank Card Product Group high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these client groups. There are 2 kinds of items that are being sold to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis since the marketplace for the latter has a lower capacity for Citibank Card Product Group compared to that of immediate adhesives.
The total market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Citibank Card Product Group possible market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself customers, repair work and revamping companies (MRO) and makers dealing in items made of leather, wood, plastic and metal. This variety in clients recommends that Citibank Card Product Group can target has numerous options in regards to segmenting the market for its new item particularly as each of these groups would be needing the same type of product with particular modifications in product packaging, need or quantity. Nevertheless, the customer is not price sensitive or brand name mindful so introducing a low priced dispenser under Citibank Card Product Group name is not a suggested choice.
Citibank Card Product Group is not just a maker of adhesives but delights in market management in the instant adhesive market. The business has its own skilled and competent sales force which adds worth to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.
Core competences are not limited to adhesive manufacturing just as Citibank Card Product Group also focuses on making adhesive giving equipment to facilitate the use of its items. This dual production method provides Citibank Card Product Group an edge over competitors considering that none of the rivals of giving devices makes instant adhesives. Furthermore, none of these rivals offers directly to the consumer either and uses suppliers for reaching out to consumers. While we are taking a look at the strengths of Citibank Card Product Group, it is important to highlight the company's weaknesses also.
Although the company's sales personnel is experienced in training suppliers, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it should likewise be noted that the distributors are showing reluctance when it pertains to offering devices that requires maintenance which increases the challenges of offering equipment under a specific brand name.
If we look at Citibank Card Product Group product line in adhesive equipment particularly, the business has actually products targeted at the luxury of the marketplace. The possibility of sales cannibalization exists if Citibank Card Product Group offers Case Study Help under the very same portfolio. Offered the truth that Case Study Help is priced lower than Citibank Card Product Group high-end product line, sales cannibalization would absolutely be impacting Citibank Card Product Group sales revenue if the adhesive equipment is offered under the company's brand.
We can see sales cannibalization affecting Citibank Card Product Group 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible danger which could lower Citibank Card Product Group earnings. The fact that $175000 has actually been spent in promoting SuperBonder suggests 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 immediate adhesive.
In addition, if we look at the market in general, the adhesives market does not show brand orientation or rate consciousness which provides us 2 extra reasons for not launching a low priced product under the company's trademark name.
The competitive environment of Citibank Card Product Group would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the buyer has low knowledge about the product. While companies like Citibank Card Product Group have actually managed to train suppliers regarding adhesives, the final customer is dependent on distributors. Around 72% of sales are made directly by manufacturers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by three gamers, it could be stated that the supplier enjoys a higher bargaining power compared to the buyer. The truth remains that the supplier does not have much influence over the buyer at this point especially as the buyer does not reveal brand recognition or price level of sensitivity. This suggests that the supplier has the greater power when it comes to the adhesive market while the maker and the buyer do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace allows ease of entry. However, if we take a look at Citibank Card Product Group in particular, the company has dual capabilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Prospective risks in devices dispensing industry are low which reveals the possibility of developing brand name awareness in not only instantaneous adhesives however also in dispensing adhesives as none of the industry gamers has handled to place itself in double capabilities.
Danger of Substitutes: The danger of replacements in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Citibank Card Product Group introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered numerous reasons for not introducing Case Study Help under Citibank Card Product Group name, we have a suggested marketing mix for Case Study Help given listed below if Citibank Card Product Group chooses to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of factors. This market has an extra growth capacity of 10.1% which may be a good sufficient niche market segment 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 also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.
Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This cost would not consist of the expense of the 'vari tip' or the 'glumetic tip'. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop needs to acquire the item on his own. This would increase the possibility of affecting mechanics to purchase the product for use in their everyday upkeep jobs.
Citibank Card Product Group would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net success for Citibank Card Product Group for launching Case Study Help.
Place: A distribution design where Citibank Card Product Group straight sends the product to the local supplier and keeps a 10% drop delivery allowance for the distributor would be used by Citibank Card Product Group. Considering that the sales team is currently taken part in selling immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be expensive especially as each sales call expenses around $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: A low advertising budget needs to have been appointed to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested advertising strategy costing $51816 is advised for initially presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in lorry upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).