The following area focuses on the of marketing for Computer Associates International Inc where the company's consumers, competitors and core proficiencies have actually evaluated in order to validate whether the decision to launch Case Study Help under Computer Associates International Inc brand would be a practical option or not. We have firstly taken a look at the kind of clients that Computer Associates International Inc handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Computer Associates International Inc name.
Computer Associates International Inc consumers can be segmented into 2 groups, final customers and industrial customers. Both the groups utilize Computer Associates International Inc high performance adhesives while the business is not only involved in the production of these adhesives however also markets them to these consumer groups. There are 2 types of items that are being sold to these potential markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of instant adhesives for this analysis since the market for the latter has a lower potential for Computer Associates International Inc compared to that of instantaneous adhesives.
The overall market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we look at a breakdown of Computer Associates International Inc prospective market or customer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair work and upgrading business (MRO) and manufacturers handling products made of leather, plastic, wood and metal. This diversity in consumers recommends that Computer Associates International Inc can target has different alternatives in regards to segmenting the marketplace for its new product specifically as each of these groups would be requiring the very same type of item with respective changes in packaging, amount or demand. The customer is not cost sensitive or brand conscious so launching a low priced dispenser under Computer Associates International Inc name is not a recommended alternative.
Computer Associates International Inc is not just a producer of adhesives however delights in market management in the instantaneous adhesive industry. The company has its own skilled and qualified sales force which includes value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Computer Associates International Inc likewise specializes in making adhesive giving equipment to facilitate making use of its items. This double production technique provides Computer Associates International Inc an edge over competitors since none of the rivals of dispensing devices makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the consumer either and uses distributors for connecting to clients. While we are looking at the strengths of Computer Associates International Inc, it is important to highlight the company's weak points too.
Although the company's sales staff is knowledgeable in training distributors, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it must also be noted that the suppliers are revealing unwillingness when it concerns selling equipment that needs maintenance which increases the challenges of selling equipment under a specific trademark name.
The business has actually products intended at the high end of the market if we look at Computer Associates International Inc product line in adhesive devices especially. If Computer Associates International Inc offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Computer Associates International Inc high-end line of product, sales cannibalization would absolutely be affecting Computer Associates International Inc sales profits if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization affecting Computer Associates International Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could reduce Computer Associates International Inc revenue. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching 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.
In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or rate awareness which provides us two extra factors for not launching a low priced product under the business's brand name.
The competitive environment of Computer Associates International Inc would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low understanding about the product. While companies like Computer Associates International Inc have actually managed to train suppliers relating to adhesives, the last consumer depends on suppliers. Roughly 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by 3 players, it could be stated that the provider delights in a greater bargaining power compared to the purchaser. The reality stays that the supplier does not have much influence over the purchaser at this point especially as the purchaser does not show brand recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the real sales, this indicates that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the market permits ease of entry. If we look at Computer Associates International Inc in specific, the business has dual abilities in terms of being a producer of adhesive dispensers and instant adhesives. Possible risks in equipment giving market are low which shows the possibility of developing brand name awareness in not only instantaneous adhesives however also in dispensing adhesives as none of the industry players has managed to position itself in double abilities.
Hazard of Substitutes: The danger of alternatives in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Computer Associates International Inc presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided various factors for not introducing Case Study Help under Computer Associates International Inc name, we have a recommended marketing mix for Case Study Help given below if Computer Associates International Inc decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an extra growth potential of 10.1% which might be an excellent sufficient specific niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the truth that the Diy market can also 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 actually been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance shop requires to acquire the item on his own.
Computer Associates International Inc would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Computer Associates International Inc for introducing Case Study Help.
Place: A circulation design where Computer Associates International Inc straight sends the item to the local supplier and keeps a 10% drop delivery allowance for the distributor would be used by Computer Associates International Inc. Since the sales group is currently participated in offering instant adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be expensive particularly as each sales call costs roughly $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: Although a low advertising budget must have been appointed to Case Study Help but the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested marketing plan costing $51816 is advised for at first introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in car upkeep shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).