WhatsApp 
Cortlandt Town Center Case Study Solution
Cortlandt Town Center Case Study Help
Cortlandt Town Center Case Study Analysis
The following section focuses on the of marketing for Cortlandt Town Center where the business's consumers, rivals and core proficiencies have evaluated in order to justify whether the choice to introduce Case Study Help under Cortlandt Town Center brand would be a practical alternative or not. We have to start with looked at the type of customers that Cortlandt Town Center handle while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Cortlandt Town Center name.
Both the groups use Cortlandt Town Center high performance adhesives while the business is not just included in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the customers of instant adhesives for this analysis since the market for the latter has a lower capacity for Cortlandt Town Center compared to that of instant adhesives.
The total market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have been recognized earlier.If we look at a breakdown of Cortlandt Town Center possible market or consumer groups, we can see that the business offers to OEMs (Original Equipment Makers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and makers handling products made of leather, metal, plastic and wood. This diversity in clients recommends that Cortlandt Town Center can target has various choices in regards to segmenting the marketplace for its brand-new item especially as each of these groups would be needing the same kind of item with respective modifications in quantity, need or product packaging. However, the client is not cost delicate or brand conscious so introducing a low priced dispenser under Cortlandt Town Center name is not a suggested choice.
Cortlandt Town Center is not simply a producer of adhesives however enjoys market leadership in the instant adhesive industry. The company has its own skilled and qualified sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives. Cortlandt Town Center believes in special circulation as shown by the reality that it has actually selected to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach through distributors. The company's reach is not restricted to North America only as it likewise enjoys international sales. With 1400 outlets spread all across The United States and Canada, Cortlandt Town Center has its in-house production plants instead of using out-sourcing as the favored technique.
Core competences are not limited to adhesive production only as Cortlandt Town Center also specializes in making adhesive dispensing equipment to help with making use of its items. This dual production technique offers Cortlandt Town Center an edge over rivals since none of the competitors of giving devices makes immediate adhesives. In addition, none of these competitors offers directly to the customer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Cortlandt Town Center, it is crucial to highlight the company's weak points.
Although the business's sales staff is experienced in training suppliers, the fact stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It must likewise be kept in mind that the suppliers are revealing unwillingness when it comes to offering devices that requires servicing which increases the obstacles of selling devices under a specific brand name.
If we take a look at Cortlandt Town Center product line in adhesive devices particularly, the company has actually products focused on the luxury of the market. If Cortlandt Town Center sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Cortlandt Town Center high-end line of product, sales cannibalization would certainly be impacting Cortlandt Town Center sales income if the adhesive equipment is offered under the business's trademark name.
We can see sales cannibalization affecting Cortlandt Town Center 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which might reduce Cortlandt Town Center earnings. The fact that $175000 has actually been spent in promoting SuperBonder recommends 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 instantaneous adhesive.
Furthermore, if we look at the market in general, the adhesives market does not show brand orientation or price awareness which provides us two additional factors for not launching a low priced item under the company's brand.
The competitive environment of Cortlandt Town Center would be studied via 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 market is low specifically as the purchaser has low understanding about the item. While business like Cortlandt Town Center have actually managed to train suppliers relating to adhesives, the final consumer is dependent on distributors. Approximately 72% of sales are made directly by makers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by three gamers, it could be stated that the supplier enjoys a higher bargaining power compared to the buyer. The fact stays that the provider does not have much influence over the buyer at this point particularly as the purchaser does not reveal brand acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a significant control over the actual 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 shown by foreign Japanese competitors in the immediate adhesive market shows that the market allows ease of entry. If we look at Cortlandt Town Center in specific, the company has double capabilities in terms of being a producer of adhesive dispensers and immediate adhesives. Potential hazards in equipment giving market are low which shows the possibility of producing brand awareness in not only immediate adhesives however also in dispensing adhesives as none of the industry gamers has managed to place itself in double abilities.
Threat of Substitutes: The hazard of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Cortlandt Town Center presented 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 numerous reasons for not launching Case Study Help under Cortlandt Town Center name, we have a recommended marketing mix for Case Study Help provided below if Cortlandt Town Center decides to go ahead with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 facilities in this section and a high use of around 58900 lbs. is being used by 36.1 % of the market. This market has an additional development capacity of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the reality that the Do-it-Yourself market can also be targeted if a drinkable 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 devices or not.
Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or via direct selling. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance shop requires to buy the product on his own.
Cortlandt Town Center would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Cortlandt Town Center for introducing Case Study Help.
Place: A circulation design where Cortlandt Town Center straight sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Cortlandt Town Center. Because the sales team is already taken part in selling instant adhesives and they do not have expertise in selling dispensers, including them in the selling procedure would be costly particularly as each sales call costs roughly $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional budget should have been designated 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 expenses sustained for production, the recommended marketing strategy costing $51816 is suggested for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
