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Continental Cablevision Inc Fintelco Joint Venture Case Study Solution
Continental Cablevision Inc Fintelco Joint Venture Case Study Help
Continental Cablevision Inc Fintelco Joint Venture Case Study Analysis
The following section concentrates on the of marketing for Continental Cablevision Inc Fintelco Joint Venture where the company's customers, competitors and core competencies have actually assessed in order to justify whether the choice to release Case Study Help under Continental Cablevision Inc Fintelco Joint Venture trademark name would be a possible alternative or not. We have to start with looked at the kind of clients that Continental Cablevision Inc Fintelco Joint Venture deals in while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Continental Cablevision Inc Fintelco Joint Venture name.
Both the groups use Continental Cablevision Inc Fintelco Joint Venture high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these customer groups. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower capacity for Continental Cablevision Inc Fintelco Joint Venture compared to that of instantaneous adhesives.
The total market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been recognized earlier.If we look at a breakdown of Continental Cablevision Inc Fintelco Joint Venture prospective market or customer groups, we can see that the business offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair and revamping companies (MRO) and manufacturers handling items made of leather, metal, plastic and wood. This diversity in customers suggests that Continental Cablevision Inc Fintelco Joint Venture can target has various options in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be requiring the exact same type of product with particular changes in product packaging, need or quantity. Nevertheless, the client is not rate delicate or brand mindful so launching a low priced dispenser under Continental Cablevision Inc Fintelco Joint Venture name is not a recommended choice.
Continental Cablevision Inc Fintelco Joint Venture is not just a producer of adhesives however delights in market management in the instant adhesive market. The company has its own experienced and certified sales force which adds value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives.
Core competences are not limited to adhesive manufacturing only as Continental Cablevision Inc Fintelco Joint Venture also focuses on making adhesive dispensing equipment to facilitate the use of its products. This dual production method gives Continental Cablevision Inc Fintelco Joint Venture an edge over rivals considering that none of the rivals of giving equipment makes instant adhesives. In addition, none of these competitors sells straight to the customer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Continental Cablevision Inc Fintelco Joint Venture, it is necessary to highlight the business's weak points as well.
The company's sales personnel is skilled in training suppliers, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it needs to also be noted that the suppliers are showing unwillingness when it pertains to offering devices that needs servicing which increases the challenges of selling equipment under a specific brand name.
The company has products intended at the high end of the market if we look at Continental Cablevision Inc Fintelco Joint Venture product line in adhesive equipment especially. If Continental Cablevision Inc Fintelco Joint Venture sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Continental Cablevision Inc Fintelco Joint Venture high-end line of product, sales cannibalization would absolutely be impacting Continental Cablevision Inc Fintelco Joint Venture sales earnings if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization affecting Continental Cablevision Inc Fintelco Joint Venture 27A Pencil Applicator which is priced at $275. There is another possible hazard which might reduce Continental Cablevision Inc Fintelco Joint Venture revenue if Case Study Help is released under the company's brand name. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the truth 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 cost awareness which offers us two extra reasons for not introducing a low priced item under the business's brand.
The competitive environment of Continental Cablevision Inc Fintelco Joint Venture would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low understanding about the item. While companies like Continental Cablevision Inc Fintelco Joint Venture have actually managed to train suppliers regarding adhesives, the last customer depends on suppliers. Approximately 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by three players, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much influence over the buyer at this point specifically as the purchaser does not show brand name acknowledgment or rate sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a significant 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 loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market shows that the marketplace permits ease of entry. However, if we take a look at Continental Cablevision Inc Fintelco Joint Venture in particular, the company has dual abilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Prospective threats in equipment giving industry are low which reveals the possibility of producing brand name awareness in not just immediate adhesives but likewise in giving adhesives as none of the industry gamers has actually managed to place itself in double abilities.
Hazard of Substitutes: The risk of replacements in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The fact stays that if Continental Cablevision Inc Fintelco Joint Venture introduced Case Study Help, it would be enjoying 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 Continental Cablevision Inc Fintelco Joint Venture name, we have actually a recommended marketing mix for Case Study Help offered below if Continental Cablevision Inc Fintelco Joint Venture chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a variety of factors. There are currently 89257 establishments in this section and a high use of around 58900 lbs. is being used by 36.1 % of the market. This market has an extra growth capacity 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 reality 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 sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to opt for either of the two accessories or not.
Price: The recommended price 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 cost would not include the cost of the 'vari pointer' or the 'glumetic idea'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for use in their day-to-day maintenance tasks.
Continental Cablevision Inc Fintelco Joint Venture would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Continental Cablevision Inc Fintelco Joint Venture for introducing Case Study Help.
Place: A distribution model where Continental Cablevision Inc Fintelco Joint Venture directly sends out the product to the local distributor and keeps a 10% drop delivery allowance for the distributor would be used by Continental Cablevision Inc Fintelco Joint Venture. Given that the sales team is already engaged in offering instantaneous adhesives and they do not have competence in offering dispensers, involving them in the selling procedure would be expensive specifically as each sales call expenses approximately $120. The distributors are already offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: Although a low promotional budget 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 incurred for production, the suggested marketing plan costing $51816 is suggested for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
