WhatsApp 
Congoleum Corp Abridged Case Study Solution
Congoleum Corp Abridged Case Study Help
Congoleum Corp Abridged Case Study Analysis
The following section concentrates on the of marketing for Congoleum Corp Abridged where the company's consumers, competitors and core competencies have examined in order to validate whether the choice to launch Case Study Help under Congoleum Corp Abridged brand name would be a feasible choice or not. We have first of all looked at the kind of customers that Congoleum Corp Abridged deals in while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Congoleum Corp Abridged name.
Congoleum Corp Abridged clients can be segmented into two groups, industrial clients and final consumers. Both the groups use Congoleum Corp Abridged high performance adhesives while the business is not just involved in the production of these adhesives but likewise markets them to these customer groups. There are two types of items that are being sold to these prospective markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Congoleum Corp Abridged compared to that of immediate adhesives.
The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Congoleum Corp Abridged potential market or client groups, we can see that the business offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and makers dealing in products made of leather, metal, wood and plastic. This diversity in customers suggests that Congoleum Corp Abridged can target has numerous alternatives in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the exact same type of item with respective modifications in packaging, amount or demand. However, the customer is not cost sensitive or brand conscious so introducing a low priced dispenser under Congoleum Corp Abridged name is not a suggested choice.
Congoleum Corp Abridged is not simply a manufacturer of adhesives but takes pleasure in market management in the instantaneous adhesive market. The business has its own proficient and certified sales force which adds value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.
Core proficiencies are not restricted to adhesive manufacturing just as Congoleum Corp Abridged also specializes in making adhesive giving equipment to help with the use of its products. This double production strategy gives Congoleum Corp Abridged an edge over competitors considering that none of the rivals of dispensing devices makes instantaneous adhesives. Additionally, none of these rivals offers directly to the customer either and uses suppliers for reaching out to customers. While we are taking a look at the strengths of Congoleum Corp Abridged, it is important to highlight the business's weak points too.
Although the business's sales staff is proficient in training distributors, the fact remains that the sales group is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It should also be kept in mind that the suppliers are revealing unwillingness when it comes to selling devices that requires servicing which increases the difficulties of selling equipment under a particular brand name.
The company has products aimed at the high end of the market if we look at Congoleum Corp Abridged product line in adhesive devices especially. The possibility of sales cannibalization exists if Congoleum Corp Abridged offers Case Study Help under the same portfolio. Given the fact that Case Study Help is priced lower than Congoleum Corp Abridged high-end line of product, sales cannibalization would certainly be impacting Congoleum Corp Abridged sales income if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization impacting Congoleum Corp Abridged 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible threat which could reduce Congoleum Corp Abridged earnings. The truth that $175000 has actually been spent 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 look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which provides us 2 extra factors for not launching a low priced item under the business's brand.
The competitive environment of Congoleum Corp Abridged would be studied via 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 Congoleum Corp Abridged have handled to train distributors regarding adhesives, the final customer is dependent on suppliers. Around 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by 3 gamers, it could be stated that the provider takes pleasure in a greater bargaining power compared to the purchaser. The fact stays that the provider does not have much influence over the purchaser at this point specifically as the buyer does not reveal brand recognition or rate level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales, this suggests that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the market permits ease of entry. If we look at Congoleum Corp Abridged in particular, the business has double capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective dangers in equipment giving market are low which shows the possibility of developing brand name awareness in not just instant adhesives but likewise in giving adhesives as none of the industry players has handled to position itself in double abilities.
Risk of Substitutes: The hazard of replacements in the instantaneous 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 reality stays that if Congoleum Corp Abridged presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided numerous factors for not releasing Case Study Help under Congoleum Corp Abridged name, we have actually a suggested marketing mix for Case Study Help given listed below if Congoleum Corp Abridged decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a variety of factors. There are currently 89257 facilities in this segment and a high use of around 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional development potential of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Diy market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wants to choose either of the two accessories or not.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to purchase the product on his own.
Congoleum Corp Abridged would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Congoleum Corp Abridged for launching Case Study Help.
Place: A circulation design where Congoleum Corp Abridged directly sends the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Congoleum Corp Abridged. Because the sales group is currently taken part in selling instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be expensive particularly as each sales call expenses approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low advertising spending plan must have been designated to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is advised for initially introducing 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 displayed in appendix 3 while the 4Ps are summarized in appendix 4).
