The following section focuses on the of marketing for Citic Tower Ii where the company's consumers, rivals and core proficiencies have assessed in order to validate whether the decision to launch Case Study Help under Citic Tower Ii brand would be a possible option or not. We have firstly looked at the kind of customers that Citic Tower Ii handle while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Citic Tower Ii name.
Both the groups use Citic Tower Ii high efficiency adhesives while the business is not only included in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Citic Tower Ii compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Citic Tower Ii potential market or consumer groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself clients, repair work and upgrading business (MRO) and manufacturers handling items made of leather, metal, plastic and wood. This diversity in clients recommends that Citic Tower Ii can target has different options in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be needing the very same type of item with respective changes in demand, quantity or packaging. Nevertheless, the client is not price delicate or brand conscious so launching a low priced dispenser under Citic Tower Ii name is not a recommended alternative.
Citic Tower Ii is not simply a producer of adhesives however takes pleasure in market management in the instant adhesive market. The business has its own skilled 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. Citic Tower Ii believes in special distribution as indicated by the reality that it has chosen to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for expanding reach through distributors. The company's reach is not limited to North America only as it also enjoys international sales. With 1400 outlets spread out all throughout The United States and Canada, Citic Tower Ii has its in-house production plants rather than utilizing out-sourcing as the preferred method.
Core competences are not restricted to adhesive manufacturing just as Citic Tower Ii likewise concentrates on making adhesive giving devices to help with making use of its products. This double production technique provides Citic Tower Ii an edge over rivals considering that none of the competitors of giving equipment makes instant adhesives. Additionally, none of these rivals sells directly to the consumer either and utilizes suppliers for connecting to consumers. While we are looking at the strengths of Citic Tower Ii, it is important to highlight the company's weaknesses.
Although the company's sales staff is experienced in training suppliers, the truth remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it should also be kept in mind that the suppliers are showing hesitation when it concerns offering devices that needs maintenance which increases the difficulties of offering devices under a specific trademark name.
If we look at Citic Tower Ii product line in adhesive devices particularly, the company has actually products aimed at the luxury of the marketplace. If Citic Tower Ii sells 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 Citic Tower Ii high-end line of product, sales cannibalization would absolutely be affecting Citic Tower Ii sales earnings if the adhesive equipment is sold under the business's trademark name.
We can see sales cannibalization affecting Citic Tower Ii 27A Pencil Applicator which is priced at $275. There is another possible hazard which could decrease Citic Tower Ii profits if Case Study Help is launched under the business's brand name. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which gives us 2 additional factors for not introducing a low priced item under the business's brand name.
The competitive environment of Citic Tower Ii 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 industry is low especially as the buyer has low knowledge about the product. While business like Citic Tower Ii have handled to train distributors concerning adhesives, the final consumer is dependent on suppliers. Approximately 72% of sales are made straight by makers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the buyer. However, the reality remains that the supplier does not have much influence over the buyer at this point specifically as the purchaser does disappoint brand recognition or price level of sensitivity. This suggests that the distributor has the greater power when it concerns the adhesive market while the buyer and the manufacturer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace permits ease of entry. If we look at Citic Tower Ii in specific, the company has double capabilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible hazards in equipment dispensing market are low which shows the possibility of creating brand awareness in not only instantaneous adhesives however also in giving adhesives as none of the market gamers has handled to position itself in double abilities.
Risk of Substitutes: The threat of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Citic Tower Ii introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given different factors for not introducing Case Study Help under Citic Tower Ii name, we have actually a suggested marketing mix for Case Study Help provided below if Citic Tower Ii decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of factors. There are currently 89257 establishments in this sector and a high use of approximately 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra growth potential of 10.1% which may be a sufficient niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost usage with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wants to choose either of the two devices or not.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. This rate would not include the expense of the 'vari tip' or the 'glumetic idea'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store needs to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the item for usage in their daily upkeep tasks.
Citic Tower Ii would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Citic Tower Ii for introducing Case Study Help.
Place: A distribution design where Citic Tower Ii directly sends the item to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Citic Tower Ii. Since the sales team is already taken part in selling immediate adhesives and they do not have proficiency in offering dispensers, involving them in the selling procedure would be pricey particularly as each sales call costs roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget plan needs to have been appointed to Case Study Help but the truth 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 marketing strategy costing $51816 is recommended for at first introducing the product in the market. The planned ads in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).