Continental Carriers Inc Case Study Help Checklist

Continental Carriers Inc Case Study Help Checklist

Continental Carriers Inc Case Study Solution
Continental Carriers Inc Case Study Help
Continental Carriers Inc Case Study Analysis

Analyses for Evaluating Continental Carriers Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Continental Carriers Inc where the company's customers, rivals and core proficiencies have actually assessed in order to justify whether the decision to release Case Study Help under Continental Carriers Inc trademark name would be a practical option or not. We have firstly taken a look at the kind of customers that Continental Carriers Inc deals in while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Continental Carriers Inc name.
Continental Carriers Inc Case Study Solution

Customer Analysis

Continental Carriers Inc customers can be segmented into two groups, last consumers and commercial customers. Both the groups utilize Continental Carriers Inc high performance adhesives while the company is not just associated with the production of these adhesives but likewise markets them to these consumer groups. There are two kinds of products that are being sold to these prospective markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Continental Carriers Inc compared to that of instant 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 look at a breakdown of Continental Carriers Inc prospective market or client groups, we can see that the company sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair work and overhauling business (MRO) and makers dealing in items made from leather, plastic, wood and metal. This diversity in customers recommends that Continental Carriers Inc can target has various options in terms of segmenting the marketplace for its new product specifically as each of these groups would be requiring the same type of item with respective modifications in product packaging, need or amount. The consumer is not rate sensitive or brand mindful so launching a low priced dispenser under Continental Carriers Inc name is not a suggested choice.

Company Analysis

Continental Carriers Inc is not just a producer of adhesives however enjoys market leadership in the instantaneous adhesive industry. The business has its own knowledgeable and certified sales force which includes worth to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Continental Carriers Inc believes in special circulation as indicated by the reality that it has picked to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be checked out for broadening reach via distributors. The business's reach is not limited to North America only as it also delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Continental Carriers Inc has its in-house production plants instead of using out-sourcing as the favored technique.

Core competences are not restricted to adhesive production only as Continental Carriers Inc also focuses on making adhesive dispensing equipment to facilitate the use of its items. This double production technique provides Continental Carriers Inc an edge over rivals because none of the rivals of dispensing equipment makes instant adhesives. In addition, none of these rivals sells straight to the consumer either and makes use of suppliers for connecting to clients. While we are taking a look at the strengths of Continental Carriers Inc, it is very important to highlight the company's weak points too.

Although the company's sales staff is knowledgeable in training suppliers, the fact stays that the sales team is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It must also be kept in mind that the distributors are showing reluctance when it comes to offering devices that requires maintenance which increases the challenges of offering devices under a specific brand name.

If we look at Continental Carriers Inc line of product in adhesive equipment particularly, the company has actually products targeted at the luxury of the market. If Continental Carriers Inc offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Continental Carriers Inc high-end product line, sales cannibalization would absolutely be impacting Continental Carriers Inc sales income if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization affecting Continental Carriers Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Continental Carriers Inc income if Case Study Help is launched under the business's brand. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for introducing 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.

Additionally, if we take a look at the market in general, the adhesives market does disappoint brand orientation or cost awareness which gives us two extra factors for not introducing a low priced product under the company's brand name.

Competitor Analysis

The competitive environment of Continental Carriers Inc would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the presence of fragmented segments with Continental Carriers Inc enjoying leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry competition between these players could be called 'extreme' as the consumer is not brand mindful and each of these gamers has prominence in regards to market share, the fact still stays that the industry is not saturated and still has numerous market sectors which can be targeted as possible specific niche markets even when introducing an adhesive. However, we can even explain the fact that sales cannibalization might be leading to market competition in the adhesive dispenser market while the marketplace for immediate adhesives provides development potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low knowledge about the product. While companies like Continental Carriers Inc have handled to train distributors regarding adhesives, the last customer depends on distributors. Around 72% of sales are made directly by producers and distributors for instantaneous 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 delights in a higher bargaining power compared to the purchaser. The truth stays that the supplier does not have much impact over the purchaser 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 producer and the buyer do not have a significant control over the real sales, this shows that the supplier has the greater power.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market suggests that the marketplace enables ease of entry. Nevertheless, if we take a look at Continental Carriers Inc in particular, the business has double abilities in regards to being a manufacturer of instant adhesives and adhesive dispensers. Prospective dangers in devices giving industry are low which reveals the possibility of creating brand name awareness in not only immediate adhesives however also in giving adhesives as none of the industry gamers has actually managed to position itself in dual capabilities.

Hazard of Substitutes: The risk of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Continental Carriers Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).

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

Continental Carriers Inc Case Study Help

Despite the fact that our 3C analysis has actually offered various factors for not launching Case Study Help under Continental Carriers Inc name, we have actually a suggested marketing mix for Case Study Help given below if Continental Carriers Inc chooses to go on with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a number of reasons. There are presently 89257 facilities in this section and a high usage of approximately 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which might be a sufficient niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the fact that the Diy market can also be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wants to select either of the two accessories or not.

Price: The suggested cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. This rate would not consist of the expense of the 'vari pointer' or the 'glumetic idea'. A price listed below $250 would not require approvals from the senior management in case a mechanic at an automobile upkeep store requires to purchase the item on his own. This would increase the possibility of affecting mechanics to acquire the item for use in their daily upkeep jobs.

Continental Carriers Inc would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Continental Carriers Inc for launching Case Study Help.

Place: A distribution design where Continental Carriers Inc straight sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Continental Carriers Inc. Considering that the sales group is already participated in selling immediate adhesives and they do not have competence in selling dispensers, involving them in the selling process would be expensive specifically as each sales call expenses around $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: A low advertising budget plan should have been designated to Case Study Help however 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 suggested advertising plan costing $51816 is advised for initially introducing the product in the market. The prepared advertisements in publications would be targeted at mechanics in lorry maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Continental Carriers Inc Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the fact still stays that the item would not complement Continental Carriers Inc product line. We have a look at appendix 2, we can see how the overall gross success for the two models is expected to be approximately $49377 if 250 units of each design are manufactured annually according to the plan. The preliminary prepared advertising is around $52000 per year which would be putting a stress on the company's resources leaving Continental Carriers Inc with a negative net earnings if the costs are allocated to Case Study Help just.

The reality that Continental Carriers Inc has actually currently sustained a preliminary financial investment of $48000 in the form of capital expense and prototype development indicates that the earnings from Case Study Help is not enough to carry out the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a more effective choice especially of it is impacting the sale of the business's revenue generating designs.