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Clearwater Seafoods Case Study Help Checklist

Clearwater Seafoods Case Study Help Checklist

Clearwater Seafoods Case Study Solution
Clearwater Seafoods Case Study Help
Clearwater Seafoods Case Study Analysis



Analyses for Evaluating Clearwater Seafoods decision to launch Case Study Solution


The following section focuses on the of marketing for Clearwater Seafoods where the company's customers, rivals and core proficiencies have examined in order to justify whether the choice to introduce Case Study Help under Clearwater Seafoods trademark name would be a practical option or not. We have to start with looked at the type of customers that Clearwater Seafoods deals in while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Clearwater Seafoods name.
Clearwater Seafoods Case Study Solution

Customer Analysis

Clearwater Seafoods customers can be segmented into 2 groups, final consumers and commercial customers. Both the groups utilize Clearwater Seafoods high performance adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these client groups. There are two kinds of items that are being offered to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Clearwater Seafoods compared to that of immediate adhesives.

The overall market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been identified earlier.If we look at a breakdown of Clearwater Seafoods possible market or customer groups, we can see that the business sells to OEMs (Original Equipment Producers), Do-it-Yourself customers, repair and overhauling business (MRO) and producers handling products made of leather, wood, plastic and metal. This diversity in consumers suggests that Clearwater Seafoods can target has various choices in terms of segmenting the market for its brand-new item specifically as each of these groups would be needing the very same kind of product with particular changes in packaging, amount or need. The client is not rate delicate or brand name conscious so releasing a low priced dispenser under Clearwater Seafoods name is not a suggested choice.

Company Analysis

Clearwater Seafoods is not just a maker of adhesives however delights in market management in the instantaneous adhesive market. The business has its own knowledgeable and certified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.

Core competences are not limited to adhesive production only as Clearwater Seafoods also concentrates on making adhesive giving equipment to facilitate making use of its products. This dual production strategy provides Clearwater Seafoods an edge over competitors considering that none of the competitors of dispensing equipment makes immediate adhesives. In addition, none of these rivals offers straight to the customer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Clearwater Seafoods, it is important to highlight the company's weak points.

The business's sales staff is competent in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. Nevertheless, it should likewise be kept in mind that the distributors are revealing reluctance when it comes to selling equipment that requires servicing which increases the difficulties of offering devices under a particular brand name.

The business has actually products intended at the high end of the market if we look at Clearwater Seafoods product line in adhesive equipment especially. If Clearwater Seafoods sells 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 Clearwater Seafoods high-end product line, sales cannibalization would absolutely be impacting Clearwater Seafoods sales income if the adhesive devices is offered under the business's trademark name.

We can see sales cannibalization affecting Clearwater Seafoods 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible threat which might decrease Clearwater Seafoods income. The fact that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good 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 instantaneous adhesive.

Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which offers us two extra factors for not launching a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Clearwater Seafoods would be studied through Porter's five forces analysis which would highlight the degree of competition 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 segments with Clearwater Seafoods delighting in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While industry rivalry in between these gamers could be called 'intense' as the consumer is not brand mindful and each of these players has prominence in regards to market share, the reality still stays that the market is not filled and still has several market sectors which can be targeted as possible specific niche markets even when releasing an adhesive. Nevertheless, we can even explain the fact that sales cannibalization may be leading to market rivalry in the adhesive dispenser market while the marketplace for instantaneous adhesives uses growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the buyer has low knowledge about the item. While business like Clearwater Seafoods have actually handled to train distributors relating to adhesives, the last customer is dependent on distributors. Roughly 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 players, it could be said that the provider enjoys a higher bargaining power compared to the purchaser. However, the fact remains that the supplier does not have much impact over the purchaser at this point specifically as the purchaser does not show brand name recognition or price level of sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the actual sales, this shows that the supplier has the greater power.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the marketplace allows ease of entry. However, if we look at Clearwater Seafoods in particular, the business has double abilities in regards to being a producer of adhesive dispensers and instantaneous adhesives. Potential hazards in equipment giving market are low which reveals the possibility of producing brand name awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the market gamers has actually handled to place itself in double abilities.

Threat of Substitutes: The risk of substitutes in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact remains that if Clearwater Seafoods presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Clearwater Seafoods Case Study Help


Despite the fact that our 3C analysis has provided various reasons for not releasing Case Study Help under Clearwater Seafoods name, we have actually a recommended marketing mix for Case Study Help provided listed below if Clearwater Seafoods decides to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional growth potential of 10.1% which might be a good sufficient niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.

Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This price would not include the expense of the 'vari suggestion' or the 'glumetic tip'. A rate listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to buy the item on his own. This would increase the possibility of influencing mechanics to acquire the item for use in their everyday upkeep tasks.

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

Place: A distribution design where Clearwater Seafoods directly sends the item to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Clearwater Seafoods. Given that the sales group is already engaged in selling immediate adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be costly specifically as each sales call costs approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a favorable choice.

Promotion: A low marketing budget plan should 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 expenses sustained for production, the recommended advertising plan costing $51816 is suggested for at first introducing the item in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Clearwater Seafoods Case Study Analysis

A suggested strategy of action in the kind of a marketing mix has been discussed for Case Study Help, the truth still stays that the product would not complement Clearwater Seafoods product line. We take a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be around $49377 if 250 units of each model are manufactured annually according to the plan. The initial prepared marketing is approximately $52000 per year which would be putting a pressure on the business's resources leaving Clearwater Seafoods with a negative net income if the costs are designated to Case Study Help just.

The truth that Clearwater Seafoods has currently sustained an initial financial investment of $48000 in the form of capital expense and prototype development indicates that the profits from Case Study Help is inadequate to carry out the danger of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low flexibility of demand is not a more effective alternative particularly of it is impacting the sale of the business's earnings creating models.



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