The following section concentrates on the of marketing for Cumberland Worldwide Corp A where the company's customers, rivals and core competencies have assessed in order to justify whether the decision to launch Case Study Help under Cumberland Worldwide Corp A brand name would be a possible option or not. We have firstly taken a look at the kind of customers that Cumberland Worldwide Corp A handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Cumberland Worldwide Corp A name.
Both the groups utilize Cumberland Worldwide Corp A high efficiency adhesives while the company is not only included in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Cumberland Worldwide Corp A compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Cumberland Worldwide Corp A potential market or client groups, we can see that the company offers to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair work and overhauling business (MRO) and producers dealing in products made of leather, plastic, metal and wood. This variety in customers suggests that Cumberland Worldwide Corp A can target has different options in regards to segmenting the marketplace for its brand-new item particularly as each of these groups would be requiring the very same type of product with particular modifications in amount, need or packaging. However, the customer is not price delicate or brand name conscious so releasing a low priced dispenser under Cumberland Worldwide Corp A name is not a suggested option.
Cumberland Worldwide Corp A is not simply a maker of adhesives but enjoys market leadership in the immediate adhesive market. The business has its own knowledgeable and competent sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.
Core skills are not restricted to adhesive production only as Cumberland Worldwide Corp A also concentrates on making adhesive giving devices to facilitate using its products. This double production technique provides Cumberland Worldwide Corp A an edge over rivals since none of the competitors of giving devices makes immediate adhesives. Furthermore, none of these competitors sells directly to the customer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Cumberland Worldwide Corp A, it is very important to highlight the company's weaknesses also.
The business's sales personnel is proficient in training suppliers, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it must likewise be noted that the suppliers are revealing hesitation when it comes to offering equipment that requires maintenance which increases the difficulties of offering equipment under a particular trademark name.
The company has actually products intended at the high end of the market if we look at Cumberland Worldwide Corp A item line in adhesive equipment particularly. If Cumberland Worldwide Corp A sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Cumberland Worldwide Corp A high-end product line, sales cannibalization would definitely be affecting Cumberland Worldwide Corp A sales revenue if the adhesive equipment is offered under the business's brand name.
We can see sales cannibalization impacting Cumberland Worldwide Corp A 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Cumberland Worldwide Corp A revenue if Case Study Help is released under the company's trademark name. The reality that $175000 has actually been spent 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 immediate adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or rate consciousness which gives us two additional factors for not introducing a low priced product under the business's brand name.
The competitive environment of Cumberland Worldwide Corp A would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the buyer has low understanding about the item. While companies like Cumberland Worldwide Corp A have actually handled to train distributors relating to adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made straight by makers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by three players, it could be stated that the supplier delights in a greater bargaining power compared to the purchaser. The reality remains that the supplier does not have much influence over the buyer at this point specifically as the buyer does not show brand recognition or rate level of sensitivity. This suggests that the distributor has the higher power when it concerns the adhesive market while the purchaser and the producer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we take a look at Cumberland Worldwide Corp A in particular, the company has double abilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Prospective dangers in devices dispensing market are low which reveals the possibility of developing brand awareness in not only immediate adhesives however likewise in giving adhesives as none of the market players has managed to position itself in double capabilities.
Risk of Substitutes: The risk of substitutes in the immediate adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Cumberland Worldwide Corp A introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given different factors for not introducing Case Study Help under Cumberland Worldwide Corp A name, we have actually a suggested marketing mix for Case Study Help given below if Cumberland Worldwide Corp A decides to go on with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. There are currently 89257 facilities in this section and a high use of approximately 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 sufficient niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the customer can decide 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 offered through distributors or by means of direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to acquire the item on his own.
Cumberland Worldwide Corp A would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net success for Cumberland Worldwide Corp A for introducing Case Study Help.
Place: A circulation model where Cumberland Worldwide Corp A directly sends the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Cumberland Worldwide Corp A. Given that the sales team is already engaged in selling immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be costly particularly as each sales call costs approximately $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low promotional budget ought to have been assigned to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).