Comptronics Associates Inc Case Study Help Checklist

Comptronics Associates Inc Case Study Help Checklist

Comptronics Associates Inc Case Study Solution
Comptronics Associates Inc Case Study Help
Comptronics Associates Inc Case Study Analysis

Analyses for Evaluating Comptronics Associates Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Comptronics Associates Inc where the business's clients, rivals and core competencies have examined in order to validate whether the choice to release Case Study Help under Comptronics Associates Inc trademark name would be a feasible choice or not. We have actually to start with looked at the kind of consumers that Comptronics Associates Inc handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Comptronics Associates Inc name.
Comptronics Associates Inc Case Study Solution

Customer Analysis

Comptronics Associates Inc clients can be segmented into two groups, industrial customers and last consumers. Both the groups use Comptronics Associates Inc high performance adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these client groups. There are 2 kinds of products that are being sold to these potential markets; anaerobic adhesives and instant adhesives. We would be concentrating on the customers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Comptronics Associates Inc compared to that of immediate adhesives.

The total market for instant adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Comptronics Associates Inc prospective market or consumer groups, we can see that the business sells to OEMs (Original Devices Manufacturers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and producers handling items made from leather, wood, plastic and metal. This variety in clients recommends that Comptronics Associates Inc can target has various choices in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the exact same type of product with particular changes in packaging, demand or quantity. The consumer is not cost delicate or brand conscious so releasing a low priced dispenser under Comptronics Associates Inc name is not an advised alternative.

Company Analysis

Comptronics Associates Inc is not simply a manufacturer of adhesives however delights in market leadership in the instantaneous adhesive industry. The company has its own knowledgeable and qualified sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Comptronics Associates Inc believes in exclusive circulation as shown by the truth that it has actually selected to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach via distributors. The business's reach is not restricted to The United States and Canada just as it also delights in international sales. With 1400 outlets spread out all across North America, Comptronics Associates Inc has its in-house production plants rather than using out-sourcing as the preferred technique.

Core proficiencies are not limited to adhesive manufacturing only as Comptronics Associates Inc likewise concentrates on making adhesive giving devices to assist in the use of its products. This double production strategy gives Comptronics Associates Inc an edge over competitors because none of the rivals of giving equipment makes instantaneous adhesives. Additionally, none of these rivals offers directly to the consumer either and makes use of suppliers for reaching out to consumers. While we are looking at the strengths of Comptronics Associates Inc, it is necessary to highlight the business's weak points also.

Although the business's sales personnel is skilled in training distributors, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It must likewise be kept in mind that the distributors are revealing hesitation when it comes to offering devices that needs maintenance which increases the challenges of selling devices under a particular brand name.

The business has products intended at the high end of the market if we look at Comptronics Associates Inc product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Comptronics Associates Inc sells Case Study Help under the same portfolio. Provided the truth that Case Study Help is priced lower than Comptronics Associates Inc high-end product line, sales cannibalization would certainly be impacting Comptronics Associates Inc sales income if the adhesive devices is sold under the company's brand name.

We can see sales cannibalization impacting Comptronics Associates Inc 27A Pencil Applicator which is priced at $275. There is another possible danger which might reduce Comptronics Associates Inc income if Case Study Help is released under the company's brand. The truth 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 fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

Furthermore, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or rate awareness which offers us 2 extra reasons for not releasing a low priced item under the business's trademark name.

Competitor Analysis

The competitive environment of Comptronics Associates Inc would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high development potential due to the existence of fragmented sections with Comptronics Associates Inc enjoying management and a combined market share of 75% with two other market players, Eastman and Permabond. While market rivalry in between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these players has prominence in regards to market share, the fact still stays that the industry is not filled and still has numerous market segments which can be targeted as possible specific niche markets even when releasing an adhesive. Nevertheless, we can even point out the reality that sales cannibalization might be leading to market rivalry in the adhesive dispenser market while the marketplace for instant adhesives provides growth potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the purchaser has low understanding about the item. While business like Comptronics Associates Inc have managed to train distributors regarding adhesives, the last consumer depends on distributors. Approximately 72% of sales are made straight by manufacturers and distributors 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 gamers, it could be said that the supplier delights in a higher bargaining power compared to the buyer. The fact remains that the provider does not have much influence over the buyer at this point specifically as the purchaser does not reveal brand name acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the actual sales, this indicates 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 competitors in the immediate adhesive market shows that the market permits ease of entry. However, if we take a look at Comptronics Associates Inc in particular, the company has dual abilities in regards to being a maker of adhesive dispensers and immediate adhesives. Possible hazards in equipment giving market are low which shows the possibility of producing brand name awareness in not just instantaneous adhesives but likewise in dispensing adhesives as none of the market gamers has actually handled to place itself in double abilities.

Threat of Substitutes: The hazard of replacements in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Comptronics Associates Inc introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).

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

Comptronics Associates Inc Case Study Help

Despite the fact that our 3C analysis has provided numerous reasons for not releasing Case Study Help under Comptronics Associates Inc name, we have a recommended marketing mix for Case Study Help given below if Comptronics Associates Inc chooses 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 reasons. This market has an extra development capacity of 10.1% which might be an excellent adequate specific niche market segment 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 potable low priced adhesive is being sold for use with SuperBonder.

Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or via direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep store needs to purchase the item on his own.

Comptronics Associates Inc would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Comptronics Associates Inc for introducing Case Study Help.

Place: A distribution design where Comptronics Associates Inc straight sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Comptronics Associates Inc. Considering that the sales team is already taken part in selling instant adhesives and they do not have competence in selling dispensers, including them in the selling process would be expensive particularly as each sales call expenses approximately $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: Although a low marketing budget plan must have been assigned to Case Study Help but the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising plan costing $51816 is recommended for initially presenting the item in the market. The prepared ads in publications would be targeted at mechanics in vehicle upkeep shops. (Recommended 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
Comptronics Associates Inc Case Study Analysis

A suggested plan of action in the form of a marketing mix has been discussed for Case Study Help, the truth still remains that the product would not match Comptronics Associates Inc product line. We take a look at appendix 2, we can see how the total gross profitability for the two models is expected to be approximately $49377 if 250 systems of each design are made each year as per the strategy. Nevertheless, the initial planned advertising is around $52000 annually which would be putting a pressure on the company's resources leaving Comptronics Associates Inc with an unfavorable net income if the expenses are assigned to Case Study Help just.

The fact that Comptronics Associates Inc has actually already sustained a preliminary investment of $48000 in the form of capital expense and prototype development suggests that the revenue from Case Study Help is inadequate to undertake the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a preferable option particularly of it is affecting the sale of the company's income generating designs.