Congoleum Corp Abridged Case Study Help Checklist

Congoleum Corp Abridged Case Study Help Checklist

Congoleum Corp Abridged Case Study Solution
Congoleum Corp Abridged Case Study Help
Congoleum Corp Abridged Case Study Analysis

Analyses for Evaluating Congoleum Corp Abridged decision to launch Case Study Solution

The following area concentrates on the of marketing for Congoleum Corp Abridged where the company's customers, competitors and core proficiencies have actually assessed in order to justify whether the decision to introduce Case Study Help under Congoleum Corp Abridged trademark name would be a feasible choice or not. We have to start with taken a look at the kind of clients that Congoleum Corp Abridged handle while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Congoleum Corp Abridged name.
Congoleum Corp Abridged Case Study Solution

Customer Analysis

Congoleum Corp Abridged clients can be segmented into 2 groups, industrial customers and last consumers. Both the groups utilize Congoleum Corp Abridged high performance adhesives while the business is not just 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; instant adhesives and anaerobic adhesives. We would be concentrating on the customers of instant adhesives for this analysis because the market for the latter has a lower capacity for Congoleum Corp Abridged compared to that of instantaneous adhesives.

The total market for instantaneous 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 Congoleum Corp Abridged potential market or client groups, we can see that the company sells to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair and overhauling business (MRO) and manufacturers dealing in items made from leather, wood, metal and plastic. This variety in clients recommends that Congoleum Corp Abridged can target has various options in regards to segmenting the market for its new item particularly as each of these groups would be requiring the same type of product with particular changes in quantity, demand or product packaging. The consumer is not cost delicate or brand mindful so introducing a low priced dispenser under Congoleum Corp Abridged name is not an advised option.

Company Analysis

Congoleum Corp Abridged is not just a manufacturer of adhesives but takes pleasure in market management in the instantaneous adhesive industry. The business has its own skilled and qualified sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.

Core skills are not restricted to adhesive manufacturing just as Congoleum Corp Abridged likewise focuses on making adhesive dispensing devices to assist in making use of its products. This double production method provides Congoleum Corp Abridged an edge over competitors since none of the rivals of dispensing equipment makes instant adhesives. Additionally, none of these rivals offers directly to the consumer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Congoleum Corp Abridged, it is important to highlight the business's weak points.

The business's sales staff is competent in training suppliers, the reality remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it must likewise be noted that the suppliers are revealing reluctance when it comes to selling equipment that requires maintenance which increases the difficulties of offering equipment under a particular brand name.

The company has items aimed at the high end of the market if we look at Congoleum Corp Abridged item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Congoleum Corp Abridged offers Case Study Help under the same portfolio. Provided the fact that Case Study Help is priced lower than Congoleum Corp Abridged high-end line of product, sales cannibalization would absolutely be affecting Congoleum Corp Abridged sales income if the adhesive equipment is sold under the company's trademark name.

We can see sales cannibalization affecting Congoleum Corp Abridged 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible threat which could decrease Congoleum Corp Abridged profits. The truth that $175000 has been invested 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 instant adhesive.

In addition, if we look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which provides us two additional factors for not releasing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Congoleum Corp Abridged 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 sections with Congoleum Corp Abridged delighting in management and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While industry competition in between these players could be called 'extreme' as the customer is not brand name conscious and each of these players has prominence in regards to market share, the reality still stays that the market is not saturated and still has several market sections which can be targeted as prospective specific niche markets even when releasing an adhesive. However, we can even explain the fact that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the marketplace for instantaneous adhesives provides development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low knowledge about the item. While companies like Congoleum Corp Abridged have handled to train distributors concerning adhesives, the final consumer depends on suppliers. Roughly 72% of sales are made directly by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three gamers, it could be said that the supplier delights in a higher bargaining power compared to the buyer. The truth remains that the provider does not have much impact over the purchaser at this point especially as the buyer does not reveal brand name recognition or price sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the buyer and the maker do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the marketplace allows ease of entry. If we look at Congoleum Corp Abridged in particular, the company has dual capabilities in terms of being a producer of immediate adhesives and adhesive dispensers. Possible threats in devices giving industry 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 industry players has actually managed to position itself in double abilities.

Threat of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact stays that if Congoleum Corp Abridged introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).

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

Congoleum Corp Abridged Case Study Help

Despite the fact that our 3C analysis has actually offered different reasons for not releasing Case Study Help under Congoleum Corp Abridged name, we have a suggested marketing mix for Case Study Help provided below if Congoleum Corp Abridged decides to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this section and a high use of roughly 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which might be a good enough niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the consumer can choose whether he wants to go with either of the two accessories or not.

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 through direct selling. This rate would not include the cost of the 'vari pointer' or the 'glumetic suggestion'. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to acquire the product on his own. This would increase the possibility of influencing mechanics to acquire the item for use in their daily maintenance jobs.

Congoleum Corp Abridged would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Congoleum Corp Abridged for introducing Case Study Help.

Place: A distribution model where Congoleum Corp Abridged straight sends the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Congoleum Corp Abridged. Because the sales group is already taken part in offering instantaneous adhesives and they do not have proficiency in selling dispensers, including them in the selling process would be expensive particularly as each sales call expenses approximately $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: A low promotional budget plan needs to have been designated to Case Study Help but the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising plan costing $51816 is recommended for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Congoleum Corp Abridged Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the fact still stays that the item would not match Congoleum Corp Abridged product line. We have a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be around $49377 if 250 units of each model are made each year based on the strategy. However, the preliminary planned advertising is around $52000 annually which would be putting a stress on the company's resources leaving Congoleum Corp Abridged with an unfavorable earnings if the expenditures are assigned to Case Study Help just.

The fact that Congoleum Corp Abridged has actually already sustained an initial financial investment of $48000 in the form of capital expense and model development shows that the profits from Case Study Help is not enough to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a preferable choice specifically of it is affecting the sale of the business's profits producing designs.