The following area focuses on the of marketing for Continental Media Group Business Highlights where the business's customers, competitors and core competencies have actually assessed in order to justify whether the decision to launch Case Study Help under Continental Media Group Business Highlights trademark name would be a feasible alternative or not. We have actually to start with taken a look at the kind of consumers that Continental Media Group Business Highlights deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Continental Media Group Business Highlights name.
Both the groups utilize Continental Media Group Business Highlights high efficiency adhesives while the business is not just included in the production of these adhesives however also 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 potential for Continental Media Group Business Highlights compared to that of immediate adhesives.
The overall market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Continental Media Group Business Highlights potential market or customer groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair and revamping companies (MRO) and manufacturers dealing in items made from leather, wood, metal and plastic. This diversity in clients suggests that Continental Media Group Business Highlights can target has various choices in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the very same kind of item with respective modifications in need, product packaging or amount. However, the customer is not cost delicate or brand mindful so releasing a low priced dispenser under Continental Media Group Business Highlights name is not a suggested alternative.
Continental Media Group Business Highlights is not just a maker of adhesives but delights in market management in the immediate adhesive market. The business has its own experienced and qualified sales force which includes worth to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives. Continental Media Group Business Highlights believes in special circulation as suggested by the reality that it has selected to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for expanding reach by means of suppliers. The business's reach is not restricted to The United States and Canada only as it likewise delights in global sales. With 1400 outlets spread out all across North America, Continental Media Group Business Highlights has its in-house production plants rather than utilizing out-sourcing as the favored method.
Core skills are not limited to adhesive production only as Continental Media Group Business Highlights also focuses on making adhesive dispensing equipment to help with using its items. This dual production strategy provides Continental Media Group Business Highlights an edge over rivals since none of the rivals of dispensing devices makes instantaneous adhesives. Additionally, none of these rivals sells directly to the consumer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Continental Media Group Business Highlights, it is essential to highlight the business's weaknesses.
Although the company's sales personnel is experienced in training distributors, the truth stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It needs to also be noted that the distributors are showing reluctance when it comes to selling equipment that requires maintenance which increases the challenges of offering devices under a particular brand name.
If we take a look at Continental Media Group Business Highlights line of product in adhesive equipment particularly, the business has actually products aimed at the luxury of the market. The possibility of sales cannibalization exists if Continental Media Group Business Highlights sells Case Study Help under the exact same portfolio. Provided the fact that Case Study Help is priced lower than Continental Media Group Business Highlights high-end product line, sales cannibalization would absolutely be impacting Continental Media Group Business Highlights sales earnings if the adhesive equipment is sold under the business's brand.
We can see sales cannibalization impacting Continental Media Group Business Highlights 27A Pencil Applicator which is priced at $275. There is another possible hazard which could lower Continental Media Group Business Highlights profits if Case Study Help is released under the company's brand. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or price consciousness which gives us two additional reasons for not launching a low priced item under the business's brand name.
The competitive environment of Continental Media Group Business Highlights would be studied by means of 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 specifically as the buyer has low understanding about the item. While business like Continental Media Group Business Highlights have managed to train distributors concerning adhesives, the final customer is dependent on distributors. Roughly 72% of sales are made directly by makers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by 3 players, it could be said that the provider enjoys a higher bargaining power compared to the purchaser. The fact remains that the provider does not have much influence over the buyer at this point especially as the purchaser does not show brand recognition or rate level of sensitivity. This indicates that the supplier has the higher power when it concerns the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market indicates that the market enables ease of entry. Nevertheless, if we look at Continental Media Group Business Highlights in particular, the company has dual abilities in terms of being a producer of adhesive dispensers and instant adhesives. Prospective threats in devices giving market are low which shows the possibility of developing brand awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry players has managed to place itself in dual capabilities.
Threat of Substitutes: The risk of replacements in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Continental Media Group Business Highlights 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 actually given different reasons for not launching Case Study Help under Continental Media Group Business Highlights name, we have actually a recommended marketing mix for Case Study Help offered below if Continental Media Group Business Highlights decides to go ahead with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this segment and a high use of roughly 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an extra development 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 potable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the customer can choose whether he wants to opt for either of the two accessories or not.
Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. This price would not include the expense of the 'vari tip' or the 'glumetic idea'. A price below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop requires to buy the item on his own. This would increase the possibility of influencing mechanics to purchase the item for usage in their day-to-day maintenance tasks.
Continental Media Group Business Highlights would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Continental Media Group Business Highlights for releasing Case Study Help.
Place: A circulation model where Continental Media Group Business Highlights directly sends the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Continental Media Group Business Highlights. Given that the sales team is currently engaged in selling immediate adhesives and they do not have expertise in offering dispensers, including them in the selling process would be pricey particularly as each sales call costs approximately $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable option.
Promotion: A low marketing spending plan needs to have been assigned to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising plan costing $51816 is suggested for at first presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry maintenance shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).