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Citic Tower Ii Case Study Solution
Citic Tower Ii Case Study Help
Citic Tower Ii Case Study Analysis
The following section focuses on the of marketing for Citic Tower Ii where the company's consumers, competitors and core proficiencies have evaluated in order to validate whether the decision to launch Case Study Help under Citic Tower Ii brand name would be a feasible choice or not. We have actually to start with looked at the kind of customers that Citic Tower Ii handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Citic Tower Ii name.
Citic Tower Ii consumers can be segmented into two groups, industrial customers and final consumers. Both the groups use Citic Tower Ii high performance adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these customer groups. There are two types of products that are being offered to these prospective markets; anaerobic adhesives and instant adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower potential for Citic Tower Ii compared to that of instant adhesives.
The total market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Citic Tower Ii prospective market or customer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair work and revamping business (MRO) and producers handling products made from leather, wood, metal and plastic. This variety in consumers suggests that Citic Tower Ii can target has numerous alternatives in terms of segmenting the market for its brand-new item especially as each of these groups would be requiring the same type of item with particular changes in demand, amount or packaging. However, the customer is not rate delicate or brand conscious so launching a low priced dispenser under Citic Tower Ii name is not an advised alternative.
Citic Tower Ii is not just a manufacturer of adhesives however takes pleasure in market management in the instant adhesive market. The company has its own proficient 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. Citic Tower Ii believes in unique circulation as shown by the truth that it has actually picked to sell through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach via distributors. The business's reach is not limited to The United States and Canada just as it likewise enjoys worldwide sales. With 1400 outlets spread out all across The United States and Canada, Citic Tower Ii has its internal production plants rather than using out-sourcing as the preferred technique.
Core proficiencies are not limited to adhesive production just as Citic Tower Ii also concentrates on making adhesive dispensing devices to help with the use of its items. This dual production method gives Citic Tower Ii an edge over rivals given that none of the rivals of dispensing devices makes immediate adhesives. Additionally, none of these rivals offers directly to the customer either and makes use of distributors for reaching out to clients. While we are looking at the strengths of Citic Tower Ii, it is essential to highlight the business's weak points as well.
Although the business's sales personnel is experienced in training distributors, the truth remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. Nevertheless, it needs to also be noted that the distributors are showing unwillingness when it comes to offering equipment that requires servicing which increases the challenges of selling devices under a specific trademark name.
The business has actually items aimed at the high end of the market if we look at Citic Tower Ii product line in adhesive equipment especially. If Citic Tower Ii sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Citic Tower Ii high-end line of product, sales cannibalization would absolutely be affecting Citic Tower Ii sales profits if the adhesive devices is offered under the company's brand name.
We can see sales cannibalization affecting Citic Tower Ii 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease Citic Tower Ii income if Case Study Help is launched under the business's trademark name. The truth 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 instant adhesive.
In addition, if we look at the market in general, the adhesives market does disappoint brand orientation or rate consciousness which gives us 2 additional reasons for not launching a low priced product under the company's brand.
The competitive environment of Citic Tower Ii would be studied through Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the buyer has low knowledge about the product. While companies like Citic Tower Ii have managed to train suppliers regarding adhesives, the last customer is dependent on suppliers. Roughly 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 gamers, it could be stated that the supplier enjoys a higher bargaining power compared to the purchaser. However, the fact remains that the supplier does not have much impact over the buyer at this point particularly as the buyer does disappoint brand recognition or rate sensitivity. This indicates that the distributor has the higher power when it pertains to the adhesive market while the manufacturer and the purchaser do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market suggests that the market allows ease of entry. Nevertheless, if we look at Citic Tower Ii in particular, the business has double capabilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Potential dangers in devices dispensing market are low which shows the possibility of producing brand awareness in not only immediate adhesives but likewise in giving adhesives as none of the industry gamers has handled to position itself in double abilities.
Threat of Substitutes: The hazard of substitutes in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality remains that if Citic Tower Ii 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 various reasons for not introducing Case Study Help under Citic Tower Ii name, we have a recommended marketing mix for Case Study Help offered listed below if Citic Tower Ii chooses to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an extra growth capacity of 10.1% which might be an excellent enough specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered for use with SuperBonder.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. This price would not include the expense of the 'vari idea' or the 'glumetic suggestion'. A cost below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store requires to buy the product on his own. This would increase the possibility of influencing mechanics to purchase the product for use in their daily upkeep jobs.
Citic Tower Ii would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Citic Tower Ii for releasing Case Study Help.
Place: A circulation design where Citic Tower Ii straight sends the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Citic Tower Ii. Since the sales team is already taken part in offering immediate adhesives and they do not have competence in offering dispensers, involving them in the selling procedure would be pricey particularly as each sales call expenses roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget ought to have been assigned to Case Study Help but 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 recommended advertising plan costing $51816 is recommended for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
