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Citibank Card Product Group Case Study Solution
Citibank Card Product Group Case Study Help
Citibank Card Product Group Case Study Analysis
The following section focuses on the of marketing for Citibank Card Product Group where the company's clients, competitors and core proficiencies have actually assessed in order to justify whether the choice to release Case Study Help under Citibank Card Product Group trademark name would be a possible alternative or not. We have firstly taken a look at the type of customers that Citibank Card Product Group handle while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Citibank Card Product Group name.
Both the groups utilize Citibank Card Product Group high efficiency adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the customers of immediate adhesives for this analysis since the market for the latter has a lower potential for Citibank Card Product Group compared to that of immediate adhesives.
The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Citibank Card Product Group potential market or customer groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and makers handling items made from leather, plastic, metal and wood. This diversity in clients suggests that Citibank Card Product Group can target has different alternatives in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the exact same type of item with particular changes in demand, amount or packaging. The customer is not cost sensitive or brand name mindful so launching a low priced dispenser under Citibank Card Product Group name is not an advised choice.
Citibank Card Product Group is not just a producer of adhesives but takes pleasure in market management in the instant adhesive industry. The business has its own knowledgeable and qualified sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Citibank Card Product Group believes in special distribution as shown by the reality that it has actually picked to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for expanding reach via suppliers. The company's reach is not restricted to North America just as it also enjoys global sales. With 1400 outlets spread out all across The United States and Canada, Citibank Card Product Group has its internal production plants rather than utilizing out-sourcing as the favored strategy.
Core proficiencies are not limited to adhesive production only as Citibank Card Product Group likewise focuses on making adhesive giving equipment to facilitate using its items. This double production technique provides Citibank Card Product Group an edge over competitors because none of the competitors of dispensing equipment makes immediate adhesives. In addition, none of these rivals sells directly to the customer either and utilizes suppliers for reaching out to consumers. While we are looking at the strengths of Citibank Card Product Group, it is important to highlight the business's weak points.
Although the business's sales staff is skilled in training distributors, the truth remains that the sales team is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it should likewise be noted that the suppliers are revealing reluctance when it comes to selling equipment that requires maintenance which increases the obstacles of offering equipment under a particular brand.
The business has items intended at the high end of the market if we look at Citibank Card Product Group product line in adhesive equipment particularly. If Citibank Card Product Group offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Citibank Card Product Group high-end line of product, sales cannibalization would absolutely be impacting Citibank Card Product Group sales income if the adhesive devices is sold under the company's trademark name.
We can see sales cannibalization impacting Citibank Card Product Group 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible danger which might reduce Citibank Card Product Group revenue. The fact that $175000 has actually been invested in promoting SuperBonder recommends that it is not a great time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which provides us 2 extra reasons for not releasing a low priced product under the business's brand name.
The competitive environment of Citibank Card Product Group would be studied by means of Porter's 5 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 particularly as the buyer has low understanding about the product. While business like Citibank Card Product Group have handled to train distributors concerning adhesives, the last consumer depends on suppliers. Approximately 72% of sales are made straight by makers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by 3 players, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the buyer at this point specifically as the purchaser does not reveal brand acknowledgment or price sensitivity. This indicates that the distributor has the higher power when it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market suggests that the marketplace enables ease of entry. If we look at Citibank Card Product Group in specific, the business has dual capabilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Potential hazards in equipment giving industry are low which shows the possibility of creating brand name awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry gamers has managed to position itself in dual abilities.
Danger of Substitutes: The hazard of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth remains that if Citibank Card Product Group introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous reasons for not releasing Case Study Help under Citibank Card Product Group name, we have actually a recommended marketing mix for Case Study Help given listed below if Citibank Card Product Group chooses to proceed with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Motor vehicle services' for a variety of factors. There are presently 89257 establishments in this segment and a high usage of roughly 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 sufficient niche market section for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being cost use with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the customer can decide whether he wishes to choose either of the two devices or not.
Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance store needs to purchase the product on his own.
Citibank Card Product Group would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Citibank Card Product Group for launching Case Study Help.
Place: A circulation design where Citibank Card Product Group straight sends the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Citibank Card Product Group. Because the sales team is currently participated in offering instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be pricey particularly as each sales call expenses approximately $120. The distributors are already selling dispensers so selling Case Study Help through them would be a favorable option.
Promotion: Although a low promotional budget plan should 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 suggested marketing strategy costing $51816 is recommended for initially presenting the item in the market. The planned ads in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
