Consolidated Equipment Co Case Study Help Checklist

Consolidated Equipment Co Case Study Help Checklist

Consolidated Equipment Co Case Study Solution
Consolidated Equipment Co Case Study Help
Consolidated Equipment Co Case Study Analysis

Analyses for Evaluating Consolidated Equipment Co decision to launch Case Study Solution

The following section focuses on the of marketing for Consolidated Equipment Co where the business's customers, rivals and core proficiencies have evaluated in order to validate whether the choice to introduce Case Study Help under Consolidated Equipment Co trademark name would be a practical option or not. We have to start with taken a look at the kind of customers that Consolidated Equipment Co deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Consolidated Equipment Co name.
Consolidated Equipment Co Case Study Solution

Customer Analysis

Both the groups use Consolidated Equipment Co high efficiency adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the consumers of immediate adhesives for this analysis since the market for the latter has a lower capacity for Consolidated Equipment Co compared to that of immediate adhesives.

The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Consolidated Equipment Co prospective market or consumer groups, we can see that the business offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair and overhauling companies (MRO) and manufacturers dealing in products made of leather, plastic, metal and wood. This variety in consumers suggests that Consolidated Equipment Co can target has different choices in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the exact same kind of item with respective modifications in demand, packaging or amount. The consumer is not cost delicate or brand conscious so releasing a low priced dispenser under Consolidated Equipment Co name is not a suggested choice.

Company Analysis

Consolidated Equipment Co is not just a maker of adhesives but enjoys market leadership in the instant adhesive industry. The business has its own experienced and competent sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Consolidated Equipment Co believes in exclusive circulation as indicated by the truth that it has selected to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach through distributors. The business's reach is not restricted to North America only as it also enjoys global sales. With 1400 outlets spread all across The United States and Canada, Consolidated Equipment Co has its in-house production plants instead of using out-sourcing as the favored method.

Core proficiencies are not limited to adhesive manufacturing just as Consolidated Equipment Co also specializes in making adhesive dispensing equipment to assist in making use of its products. This dual production technique provides Consolidated Equipment Co an edge over rivals because none of the rivals of giving equipment makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the consumer either and utilizes distributors for connecting to customers. While we are looking at the strengths of Consolidated Equipment Co, it is essential to highlight the company's weaknesses.

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

If we take a look at Consolidated Equipment Co line of product in adhesive devices especially, the business has actually products aimed at the luxury of the market. The possibility of sales cannibalization exists if Consolidated Equipment Co sells Case Study Help under the same portfolio. Offered the reality that Case Study Help is priced lower than Consolidated Equipment Co high-end line of product, sales cannibalization would certainly be impacting Consolidated Equipment Co sales income if the adhesive equipment is offered under the business's trademark name.

We can see sales cannibalization affecting Consolidated Equipment Co 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible hazard which might lower Consolidated Equipment Co income. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the truth 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 disappoint brand orientation or cost consciousness which provides us 2 extra reasons for not introducing a low priced product under the business's brand name.

Competitor Analysis

The competitive environment of Consolidated Equipment Co would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth potential due to the presence of fragmented segments with Consolidated Equipment Co taking pleasure in leadership and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While market competition 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 reality still remains that the industry is not filled and still has a number of market sectors which can be targeted as potential specific niche markets even when launching an adhesive. However, we can even explain the fact that sales cannibalization might be resulting in market competition in the adhesive dispenser market while the market for instant adhesives uses growth capacity.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the purchaser has low understanding about the product. While companies like Consolidated Equipment Co have handled to train distributors concerning adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 gamers, it could be stated that the supplier delights in a greater bargaining power compared to the buyer. The fact stays that the provider does not have much influence over the buyer at this point specifically as the buyer does not show brand name acknowledgment or price sensitivity. When it comes to the adhesive market while the producer and the buyer do not have a major control over the real 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 revealed by foreign Japanese competitors in the instantaneous adhesive market indicates that the marketplace enables ease of entry. However, if we look at Consolidated Equipment Co in particular, the company has double abilities in regards to being a maker of instant adhesives and adhesive dispensers. Possible dangers in devices dispensing industry are low which shows the possibility of creating brand name awareness in not only instantaneous adhesives however also in giving adhesives as none of the market players has handled to position itself in double abilities.

Danger of Substitutes: The risk of replacements in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The reality stays that if Consolidated Equipment Co presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).

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

Consolidated Equipment Co Case Study Help

Despite the fact that our 3C analysis has provided different reasons for not introducing Case Study Help under Consolidated Equipment Co name, we have a recommended marketing mix for Case Study Help offered below if Consolidated Equipment Co chooses to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional growth potential of 10.1% which may be a good sufficient specific niche market section 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 drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. This price would not consist of the cost of the 'vari idea' or the 'glumetic tip'. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to buy the item on his own. This would increase the possibility of influencing mechanics to acquire the product for usage in their day-to-day upkeep jobs.

Consolidated Equipment Co would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Consolidated Equipment Co for releasing Case Study Help.

Place: A circulation design where Consolidated Equipment Co directly sends the item to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Consolidated Equipment Co. Considering that the sales team is already taken part in selling instantaneous adhesives and they do not have competence in selling dispensers, involving them in the selling procedure would be pricey particularly as each sales call expenses roughly $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: A low promotional spending plan needs to have been assigned to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is suggested for initially introducing the product in the market. The planned ads in publications would be targeted at mechanics in lorry maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Consolidated Equipment Co Case Study Analysis

A suggested plan of action in the kind of a marketing mix has actually been gone over for Case Study Help, the fact still remains that the product would not match Consolidated Equipment Co item line. We have a look at appendix 2, we can see how the overall gross profitability for the two designs is anticipated to be approximately $49377 if 250 units of each model are manufactured per year as per the plan. The preliminary planned marketing is around $52000 per year which would be putting a strain on the company's resources leaving Consolidated Equipment Co with a negative net earnings if the costs are allocated to Case Study Help just.

The fact that Consolidated Equipment Co has already sustained an initial financial investment of $48000 in the form of capital cost and prototype development indicates that the profits from Case Study Help is insufficient to undertake the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a more suitable alternative especially of it is impacting the sale of the company's earnings generating models.