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Cox Communications Inc 1999 Case Study Solution
Cox Communications Inc 1999 Case Study Help
Cox Communications Inc 1999 Case Study Analysis
The following area focuses on the of marketing for Cox Communications Inc 1999 where the business's customers, competitors and core proficiencies have actually evaluated in order to validate whether the choice to introduce Case Study Help under Cox Communications Inc 1999 brand would be a feasible alternative or not. We have actually firstly taken a look at the kind of clients that Cox Communications Inc 1999 handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Cox Communications Inc 1999 name.
Both the groups utilize Cox Communications Inc 1999 high efficiency adhesives while the company is not only involved in the production of these adhesives but also markets them to these customer groups. We would be focusing on the customers of instantaneous adhesives for this analysis given that the market for the latter has a lower potential for Cox Communications Inc 1999 compared to that of instantaneous adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Cox Communications Inc 1999 possible market or client groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair work and upgrading business (MRO) and producers dealing in products made from leather, metal, wood and plastic. This variety in clients recommends that Cox Communications Inc 1999 can target has numerous alternatives in terms of segmenting the market for its new item particularly as each of these groups would be requiring the same type of product with respective modifications in product packaging, quantity or demand. The client is not cost delicate or brand name conscious so releasing a low priced dispenser under Cox Communications Inc 1999 name is not an advised choice.
Cox Communications Inc 1999 is not simply a manufacturer of adhesives but delights in market management in the immediate adhesive market. The business has its own competent and competent sales force which includes value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.
Core competences are not limited to adhesive manufacturing just as Cox Communications Inc 1999 likewise focuses on making adhesive dispensing devices to help with using its products. This dual production method gives Cox Communications Inc 1999 an edge over competitors since none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these rivals offers directly to the customer either and makes use of suppliers for connecting to clients. While we are looking at the strengths of Cox Communications Inc 1999, it is essential to highlight the business's weak points.
Although the company's sales personnel is skilled in training distributors, the reality stays that the sales team is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. Nevertheless, it must likewise be kept in mind that the distributors are showing reluctance when it concerns offering equipment that requires maintenance which increases the difficulties of selling equipment under a specific brand name.
If we take a look at Cox Communications Inc 1999 product line in adhesive devices particularly, the business has items aimed at the high-end of the market. If Cox Communications Inc 1999 sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Cox Communications Inc 1999 high-end product line, sales cannibalization would definitely be affecting Cox Communications Inc 1999 sales income if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization impacting Cox Communications Inc 1999 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Cox Communications Inc 1999 income if Case Study Help is launched under the business's brand name. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for introducing 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.
In addition, if we look at the market in general, the adhesives market does disappoint brand orientation or cost awareness which offers us two additional reasons for not releasing a low priced item under the business's trademark name.
The competitive environment of Cox Communications Inc 1999 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 purchaser in this industry is low particularly as the purchaser has low knowledge about the product. While companies like Cox Communications Inc 1999 have handled to train distributors regarding adhesives, the last customer is dependent on distributors. Approximately 72% of sales are made directly by producers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by three players, it could be said that the provider delights in a greater bargaining power compared to the buyer. The truth stays that the provider does not have much impact over the purchaser at this point specifically as the buyer does not reveal brand acknowledgment or rate level of sensitivity. This shows that the distributor has the greater power when it comes to the adhesive market while the purchaser and the maker do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name loyalty 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 Cox Communications Inc 1999 in particular, the company has dual capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential hazards in devices dispensing industry are low which shows the possibility of developing brand name awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the market players has managed to position itself in double capabilities.
Risk of Substitutes: The danger of alternatives in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality stays that if Cox Communications Inc 1999 introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided various reasons for not introducing Case Study Help under Cox Communications Inc 1999 name, we have actually a suggested marketing mix for Case Study Help offered below if Cox Communications Inc 1999 decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a number of reasons. There are presently 89257 establishments in this segment and a high usage of around 58900 pounds. is being used by 36.1 % of the marketplace. This market has an extra growth potential of 10.1% which may be a sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the reality that the Diy market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The product would be sold without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wants to go with 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. This rate would not include the expense of the 'vari suggestion' or the 'glumetic idea'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to purchase the item on his own. This would increase the possibility of affecting mechanics to purchase the product for use in their day-to-day maintenance jobs.
Cox Communications Inc 1999 would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Cox Communications Inc 1999 for launching Case Study Help.
Place: A circulation model where Cox Communications Inc 1999 straight sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be used by Cox Communications Inc 1999. Considering that the sales team is currently engaged in selling instant adhesives and they do not have competence in offering dispensers, involving them in the selling procedure would be expensive specifically as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low promotional budget must 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 incurred for production, the suggested marketing strategy costing $51816 is recommended for at first presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in automobile upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
