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Citigroups Exchange Offer Case Study Help Checklist

Citigroups Exchange Offer Case Study Help Checklist

Citigroups Exchange Offer Case Study Solution
Citigroups Exchange Offer Case Study Help
Citigroups Exchange Offer Case Study Analysis



3 C Analyses for Evaluating Citigroups Exchange Offer decision to launch Case Study Solution


The following section concentrates on the 3Cs of marketing for Citigroups Exchange Offer where the company's clients, competitors and core competencies have actually evaluated in order to justify whether the decision to release Case Study Help under Citigroups Exchange Offer brand would be a practical option or not. We have actually to start with looked at the kind of consumers that Citigroups Exchange Offer deals in while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Citigroups Exchange Offer name.
Citigroups Exchange Offer Case Study Solution

Customer Analysis

Citigroups Exchange Offer clients can be segmented into two groups, commercial consumers and final customers. Both the groups utilize Citigroups Exchange Offer high performance adhesives while the company is not just associated with the production of these adhesives however also markets them to these customer groups. There are 2 types of items that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Citigroups Exchange Offer compared to that of instantaneous adhesives.

The total market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been recognized earlier.If we take a look at a breakdown of Citigroups Exchange Offer potential market or customer groups, we can see that the business offers to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair and revamping companies (MRO) and makers handling items made from leather, metal, wood and plastic. This variety in consumers suggests that Citigroups Exchange Offer can target has numerous options in regards to segmenting the marketplace for its new product especially as each of these groups would be needing the very same type of item with particular modifications in quantity, product packaging or need. The consumer is not rate delicate or brand name conscious so releasing a low priced dispenser under Citigroups Exchange Offer name is not a suggested option.

Company Analysis

Citigroups Exchange Offer is not simply a manufacturer of adhesives but enjoys market management in the instant adhesive industry. The company has its own knowledgeable and qualified sales force which adds value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.

Core competences are not restricted to adhesive manufacturing only as Citigroups Exchange Offer also focuses on making adhesive dispensing equipment to help with using its items. This dual production technique provides Citigroups Exchange Offer an edge over rivals because none of the competitors of giving devices makes instantaneous adhesives. Additionally, none of these competitors sells straight to the consumer either and makes use of distributors for connecting to clients. While we are looking at the strengths of Citigroups Exchange Offer, it is important to highlight the business's weak points also.

Although the company's sales staff is skilled in training suppliers, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. Nevertheless, it needs to also be noted that the suppliers are revealing hesitation when it comes to offering equipment that needs servicing which increases the difficulties of offering devices under a particular trademark name.

The company has items aimed at the high end of the market if we look at Citigroups Exchange Offer product line in adhesive equipment particularly. If Citigroups Exchange Offer offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Citigroups Exchange Offer high-end line of product, sales cannibalization would definitely be impacting Citigroups Exchange Offer sales income if the adhesive devices is offered under the company's trademark name.

We can see sales cannibalization impacting Citigroups Exchange Offer 27A Pencil Applicator which is priced at $275. There is another possible hazard which might decrease Citigroups Exchange Offer earnings if Case Study Help is launched under the business's brand name. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

In addition, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or cost awareness which provides us two extra factors for not introducing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Citigroups Exchange Offer would be studied by means of Porter's five 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 development potential due to the presence of fragmented sectors with Citigroups Exchange Offer taking pleasure in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry competition in between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these players has prominence in terms of market share, the fact still stays that the market is not saturated and still has a number of market sectors which can be targeted as potential niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the market for immediate adhesives uses development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the purchaser has low knowledge about the item. While business like Citigroups Exchange Offer have handled to train suppliers concerning adhesives, the final consumer depends on distributors. Around 72% of sales are made straight by producers and distributors for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the purchaser. Nevertheless, the fact stays that the supplier does not have much impact over the purchaser at this moment especially as the buyer does not show brand name recognition or rate sensitivity. This indicates that the supplier has the higher power when it concerns the adhesive market while the purchaser and the manufacturer do not have a major 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 suggests that the market allows ease of entry. If we look at Citigroups Exchange Offer in specific, the company has double capabilities in terms of being a maker of adhesive dispensers and instant adhesives. Prospective dangers in devices giving industry are low which reveals the possibility of creating brand name awareness in not only instant adhesives however also in giving adhesives as none of the industry gamers has handled to position itself in dual abilities.

Threat of Substitutes: The risk of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth remains that if Citigroups Exchange Offer presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).


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

Citigroups Exchange Offer Case Study Help


Despite the fact that our 3C analysis has actually given various factors for not releasing Case Study Help under Citigroups Exchange Offer name, we have actually a suggested marketing mix for Case Study Help provided listed below if Citigroups Exchange Offer chooses to proceed with the launch.

Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 establishments in this sector and a high usage of roughly 58900 lbs. is being used by 36.1 % of the market. This market has an additional growth capacity of 10.1% which might be a sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer 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 suppliers or through direct selling. A price below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep store needs to purchase the product on his own.

Citigroups Exchange Offer would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Citigroups Exchange Offer for releasing Case Study Help.

Place: A distribution model where Citigroups Exchange Offer directly sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Citigroups Exchange Offer. Considering that the sales team is currently participated in selling instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be expensive specifically as each sales call costs roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: A low advertising budget plan needs to have been appointed to Case Study Help however the truth 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 marketing plan costing $51816 is advised for initially introducing the item in the market. The prepared ads in magazines would be targeted at mechanics in automobile upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Citigroups Exchange Offer Case Study Analysis

Although a suggested strategy in the form of a marketing mix has actually been discussed for Case Study Help, the truth still remains that the item would not match Citigroups Exchange Offer product line. We take a look at appendix 2, we can see how the total gross success for the two designs is anticipated to be approximately $49377 if 250 systems of each design are manufactured per year as per the plan. The initial planned marketing is around $52000 per year which would be putting a stress on the business's resources leaving Citigroups Exchange Offer with a negative net income if the expenditures are assigned to Case Study Help just.

The fact that Citigroups Exchange Offer has already incurred an initial financial investment of $48000 in the form of capital cost and prototype development suggests that the earnings from Case Study Help is inadequate to carry out the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a more effective choice specifically of it is affecting the sale of the company's profits creating designs.



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