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Continental Media Group Business Highlights Case Study Solution
Continental Media Group Business Highlights Case Study Help
Continental Media Group Business Highlights Case Study Analysis
The following section concentrates on the of marketing for Continental Media Group Business Highlights where the business's consumers, rivals and core competencies have evaluated in order to justify whether the choice to release Case Study Help under Continental Media Group Business Highlights trademark name would be a possible alternative or not. We have actually firstly taken a look at the kind of customers that Continental Media Group Business Highlights handle while an evaluation of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Continental Media Group Business Highlights name.
Continental Media Group Business Highlights consumers can be segmented into two groups, final consumers and commercial consumers. Both the groups use Continental Media Group Business Highlights high performance adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these customer groups. There are 2 kinds of products that are being offered to these possible markets; instant adhesives and anaerobic adhesives. We would be concentrating on the consumers of instant adhesives for this analysis given that the market for the latter has a lower potential for Continental Media Group Business Highlights compared to that of immediate adhesives.
The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been determined earlier.If we look at a breakdown of Continental Media Group Business Highlights prospective market or customer groups, we can see that the company offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair and overhauling business (MRO) and makers dealing in products made from leather, wood, plastic and metal. This variety in customers suggests that Continental Media Group Business Highlights can target has different options in terms of segmenting the market for its brand-new item especially as each of these groups would be requiring the exact same type of product with particular modifications in demand, amount or packaging. The client is not cost sensitive or brand conscious so launching a low priced dispenser under Continental Media Group Business Highlights name is not an advised choice.
Continental Media Group Business Highlights is not just a producer of adhesives however enjoys market leadership in the immediate adhesive industry. The business has its own knowledgeable and qualified sales force which adds value to sales by training the business's network of 250 suppliers for helping with the sale of adhesives. Continental Media Group Business Highlights believes in exclusive circulation as suggested by the reality that it has actually picked to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for expanding reach via distributors. The company's reach is not restricted to The United States and Canada only as it also takes pleasure in international sales. With 1400 outlets spread out all throughout The United States and Canada, Continental Media Group Business Highlights has its in-house production plants rather than using out-sourcing as the favored technique.
Core skills are not limited to adhesive manufacturing only as Continental Media Group Business Highlights likewise specializes in making adhesive giving equipment to assist in making use of its products. This dual production strategy gives Continental Media Group Business Highlights an edge over competitors considering that none of the rivals of dispensing devices makes instantaneous adhesives. In addition, none of these rivals offers straight to the consumer either and uses distributors for connecting to consumers. While we are looking at the strengths of Continental Media Group Business Highlights, it is essential to highlight the business's weak points.
The business's sales personnel is experienced in training suppliers, the fact remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it must likewise be kept in mind that the suppliers are revealing reluctance when it concerns offering equipment that needs servicing which increases the difficulties of offering equipment under a specific brand.
The company has items intended at the high end of the market if we look at Continental Media Group Business Highlights item line in adhesive devices especially. If Continental Media Group Business Highlights offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Continental Media Group Business Highlights high-end product line, sales cannibalization would definitely be impacting Continental Media Group Business Highlights sales income if the adhesive equipment is sold under the company's trademark name.
We can see sales cannibalization affecting Continental Media Group Business Highlights 27A Pencil Applicator which is priced at $275. There is another possible risk which might reduce Continental Media Group Business Highlights income if Case Study Help is released under the business's brand. The fact that $175000 has actually been spent in promoting SuperBonder recommends 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 market in general, the adhesives market does disappoint brand orientation or price awareness which provides us two extra reasons for not launching a low priced product under the company's trademark 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 purchaser in this industry is low particularly as the purchaser has low knowledge about the item. While business like Continental Media Group Business Highlights have actually managed to train suppliers regarding adhesives, the last customer is dependent on suppliers. Around 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by 3 players, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much impact over the buyer at this point especially as the purchaser does not reveal brand acknowledgment or price sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the real sales, this shows that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace allows ease of entry. However, if we look at Continental Media Group Business Highlights in particular, the company has double abilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Possible hazards in devices dispensing market are low which reveals the possibility of developing brand name awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the market players has handled to place itself in dual capabilities.
Risk of Substitutes: The risk of replacements in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth remains that if Continental Media Group Business Highlights presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered numerous factors for not releasing Case Study Help under Continental Media Group Business Highlights name, we have a suggested marketing mix for Case Study Help offered listed below if Continental Media Group Business Highlights decides to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional growth potential of 10.1% which may be an excellent enough specific niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the reality that the Diy market can likewise be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder.
Price: The suggested cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This rate would not include the cost of the 'vari suggestion' 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 needs to buy the product on his own. This would increase the possibility of influencing mechanics to buy the product for use in their daily maintenance tasks.
Continental Media Group Business Highlights would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Continental Media Group Business Highlights for launching Case Study Help.
Place: A distribution 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 utilized by Continental Media Group Business Highlights. Considering that the sales team is currently engaged in offering instantaneous adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be pricey particularly as each sales call costs roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low marketing budget needs to have been appointed to Case Study Help but 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 marketing plan costing $51816 is recommended for initially introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in lorry maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
