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Concord Center Case Study Solution
Concord Center Case Study Help
Concord Center Case Study Analysis
The following area focuses on the of marketing for Concord Center where the company's consumers, competitors and core competencies have evaluated in order to justify whether the choice to release Case Study Help under Concord Center brand name would be a possible choice or not. We have to start with looked at the type of clients that Concord Center deals in while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Concord Center name.
Concord Center customers can be segmented into 2 groups, last customers and commercial consumers. Both the groups utilize Concord Center high performance adhesives while the business is not just involved in the production of these adhesives but also markets them to these client groups. There are 2 kinds of items that are being sold to these potential markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the customers of instantaneous adhesives for this analysis since the marketplace for the latter has a lower capacity for Concord Center compared to that of immediate adhesives.
The total market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Concord Center possible market or client groups, we can see that the company offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself clients, repair and overhauling companies (MRO) and manufacturers handling products made of leather, wood, metal and plastic. This variety in clients recommends that Concord Center can target has different options in terms of segmenting the market for its brand-new product particularly as each of these groups would be requiring the exact same type of item with respective changes in product packaging, amount or need. Nevertheless, the consumer is not price sensitive or brand mindful so launching a low priced dispenser under Concord Center name is not a recommended alternative.
Concord Center is not just a producer of adhesives but delights in market management in the instantaneous adhesive industry. The company has its own skilled and competent sales force which includes worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.
Core skills are not limited to adhesive manufacturing only as Concord Center likewise concentrates on making adhesive giving equipment to help with the use of its products. This dual production technique provides Concord Center an edge over rivals considering that none of the rivals of dispensing equipment makes instant adhesives. Additionally, none of these competitors sells straight to the consumer either and makes use of suppliers for connecting to customers. While we are taking a look at the strengths of Concord Center, it is very important to highlight the business's weak points too.
The business's sales staff is knowledgeable in training suppliers, the reality remains that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It needs to also be noted that the suppliers are revealing unwillingness when it comes to offering devices that requires servicing which increases the obstacles of selling devices under a specific brand name.
If we take a look at Concord Center product line in adhesive equipment particularly, the business has products aimed at the high-end of the marketplace. The possibility of sales cannibalization exists if Concord Center sells Case Study Help under the very same portfolio. Provided the reality that Case Study Help is priced lower than Concord Center high-end line of product, sales cannibalization would certainly be impacting Concord Center sales income if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization affecting Concord Center 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible risk which could reduce Concord Center income. The reality that $175000 has actually been invested in promoting SuperBonder recommends that it is not a great 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 immediate adhesive.
In addition, if we look at the market in general, the adhesives market does not show brand orientation or cost awareness which provides us two additional factors for not launching a low priced item under the company's trademark name.
The competitive environment of Concord Center 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 Concord Center have actually managed to train distributors concerning adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three gamers, it could be said that the provider enjoys a higher bargaining power compared to the buyer. However, the reality remains that the supplier does not have much impact over the buyer at this moment specifically as the purchaser does disappoint brand recognition or price sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a major control over the real sales, this shows that the distributor has the greater 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 instant adhesive market indicates that the marketplace enables ease of entry. If we look at Concord Center in particular, the business has double capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Prospective threats in equipment giving industry are low which shows the possibility of producing brand name awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has handled to position itself in double capabilities.
Threat of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Concord Center presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given various factors for not releasing Case Study Help under Concord Center name, we have a suggested marketing mix for Case Study Help offered below if Concord Center chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this section and a high use of roughly 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an extra development potential of 10.1% which may be a good enough niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the customer can decide whether he wishes to opt for either of the two devices or not.
Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This price would not include the expense of the 'vari idea' or the 'glumetic pointer'. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to purchase the item on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their daily upkeep tasks.
Concord Center would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Concord Center for introducing Case Study Help.
Place: A distribution model where Concord Center straight sends the product to the local supplier and keeps a 10% drop delivery allowance for the distributor would be used by Concord Center. Given that the sales group is already participated in offering instantaneous adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be pricey particularly as each sales call expenses roughly $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional budget should have been designated to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is recommended for initially introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
