Citic Tower Ii The Real Option Case Study Help Checklist

Citic Tower Ii The Real Option Case Study Help Checklist

Citic Tower Ii The Real Option Case Study Solution
Citic Tower Ii The Real Option Case Study Help
Citic Tower Ii The Real Option Case Study Analysis

Analyses for Evaluating Citic Tower Ii The Real Option decision to launch Case Study Solution

The following section focuses on the of marketing for Citic Tower Ii The Real Option where the business's customers, competitors and core proficiencies have assessed in order to justify whether the choice to introduce Case Study Help under Citic Tower Ii The Real Option brand name would be a possible alternative or not. We have firstly looked at the type of clients that Citic Tower Ii The Real Option handle while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Citic Tower Ii The Real Option name.
Citic Tower Ii The Real Option Case Study Solution

Customer Analysis

Both the groups use Citic Tower Ii The Real Option high performance adhesives while the business is not just involved in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower capacity for Citic Tower Ii The Real Option compared to that of instantaneous adhesives.

The overall market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Citic Tower Ii The Real Option potential market or consumer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair and upgrading business (MRO) and makers handling products made from leather, metal, wood and plastic. This variety in customers recommends that Citic Tower Ii The Real Option can target has numerous options in regards to segmenting the market for its new product specifically as each of these groups would be requiring the same kind of item with respective modifications in packaging, amount or demand. The customer is not rate sensitive or brand mindful so launching a low priced dispenser under Citic Tower Ii The Real Option name is not a suggested option.

Company Analysis

Citic Tower Ii The Real Option is not simply a manufacturer of adhesives but takes pleasure in market leadership in the immediate adhesive market. The business has its own skilled and competent sales force which adds value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives. Citic Tower Ii The Real Option believes in special distribution as indicated by the reality that it has actually chosen to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach via suppliers. The business'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 across The United States and Canada, Citic Tower Ii The Real Option has its in-house production plants rather than utilizing out-sourcing as the favored strategy.

Core competences are not limited to adhesive manufacturing only as Citic Tower Ii The Real Option also focuses on making adhesive giving devices to help with the use of its products. This dual production method provides Citic Tower Ii The Real Option an edge over rivals because none of the rivals of giving devices makes instantaneous adhesives. In addition, none of these competitors sells directly to the customer either and uses distributors for connecting to consumers. While we are taking a look at the strengths of Citic Tower Ii The Real Option, it is very important to highlight the business's weaknesses as well.

The business's sales personnel is proficient in training distributors, the truth stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It needs to also be kept in mind that the distributors are showing hesitation when it comes to offering equipment that needs servicing which increases the challenges of offering devices under a specific brand name.

If we look at Citic Tower Ii The Real Option product line in adhesive devices especially, the company has products focused on the high end of the marketplace. If Citic Tower Ii The Real Option offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Citic Tower Ii The Real Option high-end product line, sales cannibalization would absolutely be affecting Citic Tower Ii The Real Option sales earnings if the adhesive devices is sold under the business's trademark name.

We can see sales cannibalization impacting Citic Tower Ii The Real Option 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible hazard which might reduce Citic Tower Ii The Real Option earnings. The fact that $175000 has actually been invested 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 instant adhesive.

Furthermore, if we look at the market in general, the adhesives market does not show brand orientation or cost consciousness which offers us two extra reasons for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Citic Tower Ii The Real Option would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sections with Citic Tower Ii The Real Option delighting in leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While market competition between these players could be called 'extreme' as the customer is not brand mindful and each of these gamers has prominence in terms of market share, the reality still stays that the market is not saturated and still has several market segments which can be targeted as prospective niche markets even when launching an adhesive. Nevertheless, we can even point out the fact that sales cannibalization might be causing market competition in the adhesive dispenser market while the marketplace for instant adhesives uses growth potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low understanding about the item. While business like Citic Tower Ii The Real Option have actually managed to train suppliers regarding adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made directly by makers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by three players, it could be said that the provider delights in a greater bargaining power compared to the buyer. The fact remains that the supplier does not have much influence over the buyer at this point particularly as the buyer does not reveal brand acknowledgment or price level of sensitivity. When it comes to the adhesive market while the buyer and the producer do not have a significant control over the actual sales, this shows that the supplier has the higher power.

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 instant adhesive market indicates that the market allows ease of entry. If we look at Citic Tower Ii The Real Option in specific, the company has double abilities in terms of being a maker of adhesive dispensers and instantaneous adhesives. Possible dangers in equipment dispensing market are low which reveals the possibility of producing brand name awareness in not only immediate adhesives however likewise in giving adhesives as none of the industry gamers has handled to position itself in double abilities.

Threat of Substitutes: The danger of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Citic Tower Ii The Real Option presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).

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

Citic Tower Ii The Real Option Case Study Help

Despite the fact that our 3C analysis has provided various factors for not releasing Case Study Help under Citic Tower Ii The Real Option name, we have actually a suggested marketing mix for Case Study Help offered below if Citic Tower Ii The Real Option decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra development capacity of 10.1% which may be a good sufficient specific niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or through direct selling. A price listed 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.

Citic Tower Ii The Real Option would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Citic Tower Ii The Real Option for introducing Case Study Help.

Place: A circulation design where Citic Tower Ii The Real Option straight sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Citic Tower Ii The Real Option. Considering that the sales group is currently participated in offering immediate adhesives and they do not have proficiency in offering dispensers, including them in the selling process would be expensive particularly as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: A low promotional budget should have been appointed to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is suggested for initially introducing the product in the market. The planned ads in publications would be targeted at mechanics in car maintenance shops. (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
Citic Tower Ii The Real Option Case Study Analysis

Although a recommended strategy in the form of a marketing mix has actually been discussed for Case Study Help, the truth still stays that the product would not complement Citic Tower Ii The Real Option product line. We have a look at appendix 2, we can see how the total gross success for the two models is expected to be around $49377 if 250 units of each model are produced each year according to the strategy. The preliminary planned marketing is around $52000 per year which would be putting a stress on the company's resources leaving Citic Tower Ii The Real Option with a negative net earnings if the expenditures are designated to Case Study Help only.

The reality that Citic Tower Ii The Real Option has actually currently sustained an initial investment of $48000 in the form of capital cost and model development indicates that the revenue from Case Study Help is insufficient to carry out the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a preferable option specifically of it is impacting the sale of the business's revenue producing designs.