The following area focuses on the of marketing for Corrections Corp Of America where the business's clients, rivals and core competencies have actually assessed in order to validate whether the decision to release Case Study Help under Corrections Corp Of America brand would be a possible option or not. We have firstly looked at the kind of clients that Corrections Corp Of America deals in while an evaluation of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Corrections Corp Of America name.
Both the groups use Corrections Corp Of America high efficiency adhesives while the company is not just involved in the production of these adhesives however likewise markets them to these customer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Corrections Corp Of America compared to that of instantaneous adhesives.
The overall market for instant adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Corrections Corp Of America possible market or consumer groups, we can see that the business sells to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and producers dealing in products made of leather, plastic, wood and metal. This variety in consumers suggests that Corrections Corp Of America can target has numerous options in regards to segmenting the marketplace for its new item especially as each of these groups would be requiring the very same kind of product with particular changes in product packaging, quantity or need. However, the consumer is not rate sensitive or brand name conscious so launching a low priced dispenser under Corrections Corp Of America name is not a suggested alternative.
Corrections Corp Of America is not just a manufacturer of adhesives but takes pleasure in market leadership in the immediate adhesive industry. The business has its own experienced and competent sales force which adds worth to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.
Core skills are not restricted to adhesive manufacturing just as Corrections Corp Of America likewise focuses on making adhesive dispensing equipment to help with making use of its products. This dual production technique gives Corrections Corp Of America an edge over rivals because none of the competitors of giving equipment makes instant adhesives. In addition, none of these competitors sells directly to the customer either and makes use of distributors for reaching out to consumers. While we are looking at the strengths of Corrections Corp Of America, it is important to highlight the business's weak points.
Although the company's sales staff is competent in training distributors, the reality stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it should also be noted that the suppliers are showing reluctance when it concerns offering equipment that needs servicing which increases the difficulties of selling equipment under a particular brand name.
The business has products intended at the high end of the market if we look at Corrections Corp Of America item line in adhesive equipment particularly. If Corrections Corp Of America sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Corrections Corp Of America high-end line of product, sales cannibalization would definitely be impacting Corrections Corp Of America sales earnings if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization affecting Corrections Corp Of America 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible danger which could decrease Corrections Corp Of America income. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost awareness which provides us two extra reasons for not introducing a low priced product under the business's trademark name.
The competitive environment of Corrections Corp Of America would be studied by means of Porter's five 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 product. While companies like Corrections Corp Of America have actually handled to train distributors concerning adhesives, the last customer is dependent on suppliers. Around 72% of sales are made directly by producers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by three players, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The reality stays that the provider does not have much influence over the purchaser at this point particularly as the purchaser does not reveal brand recognition or cost level of 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 distributor has the higher 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 immediate adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we take a look at Corrections Corp Of America in particular, the company has dual abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible risks in equipment giving industry are low which shows the possibility of producing brand awareness in not just instant adhesives however also in giving adhesives as none of the market players has handled to place itself in dual abilities.
Hazard of Substitutes: The danger of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Corrections Corp Of America presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given numerous factors for not releasing Case Study Help under Corrections Corp Of America name, we have actually a suggested marketing mix for Case Study Help given below if Corrections Corp Of America decides to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of reasons. This market has an additional growth potential of 10.1% which might be a great adequate niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being offered for use with SuperBonder.
Price: The recommended rate of Case Study Help has 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 cost of the 'vari tip' or the 'glumetic pointer'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to purchase the product on his own. This would increase the possibility of affecting mechanics to acquire the item for usage in their daily upkeep tasks.
Corrections Corp Of America would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Corrections Corp Of America for launching Case Study Help.
Place: A circulation model where Corrections Corp Of America straight sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Corrections Corp Of America. Given that the sales group is currently taken part in selling immediate adhesives and they do not have expertise in offering dispensers, including them in the selling procedure would be pricey specifically as each sales call expenses roughly $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: Although a low marketing spending plan must have been assigned to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested marketing plan costing $51816 is recommended for initially introducing the product in the market. The prepared advertisements in magazines would be targeted at mechanics in lorry upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).