Diamond Energy Resources Case Study Help Checklist

Diamond Energy Resources Case Study Help Checklist

Diamond Energy Resources Case Study Solution
Diamond Energy Resources Case Study Help
Diamond Energy Resources Case Study Analysis

Analyses for Evaluating Diamond Energy Resources decision to launch Case Study Solution

The following section focuses on the of marketing for Diamond Energy Resources where the business's clients, rivals and core competencies have evaluated in order to validate whether the choice to introduce Case Study Help under Diamond Energy Resources brand would be a possible alternative or not. We have firstly taken a look at the type of customers that Diamond Energy Resources deals in while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Diamond Energy Resources name.
Diamond Energy Resources Case Study Solution

Customer Analysis

Diamond Energy Resources customers can be segmented into 2 groups, final consumers and industrial clients. Both the groups utilize Diamond Energy Resources high performance adhesives while the company is not only associated with the production of these adhesives however also markets them to these customer groups. There are 2 kinds of items that are being offered to these possible markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower capacity for Diamond Energy Resources compared to that of instant adhesives.

The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we look at a breakdown of Diamond Energy Resources prospective market or customer groups, we can see that the company sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair and revamping business (MRO) and manufacturers dealing in items made of leather, wood, metal and plastic. This diversity in customers recommends that Diamond Energy Resources can target has numerous options in regards to segmenting the market for its brand-new item specifically as each of these groups would be requiring the exact same kind of product with particular changes in product packaging, amount or demand. The consumer is not cost sensitive or brand mindful so introducing a low priced dispenser under Diamond Energy Resources name is not an advised choice.

Company Analysis

Diamond Energy Resources is not just a producer of adhesives however delights in market management in the immediate adhesive industry. The company has its own knowledgeable and competent sales force which adds worth to sales by training the company's network of 250 distributors for facilitating the sale of adhesives. Diamond Energy Resources believes in exclusive distribution as shown by the fact that it has 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 limited to North America only as it also delights in worldwide sales. With 1400 outlets spread out all throughout North America, Diamond Energy Resources has its in-house production plants instead of using out-sourcing as the preferred strategy.

Core skills are not limited to adhesive production only as Diamond Energy Resources also concentrates on making adhesive giving devices to facilitate the use of its items. This double production method provides Diamond Energy Resources an edge over rivals since none of the rivals of giving devices makes immediate adhesives. In addition, none of these rivals sells directly to the customer either and uses distributors for reaching out to customers. While we are looking at the strengths of Diamond Energy Resources, it is essential to highlight the business's weak points.

Although the business's sales staff is skilled in training distributors, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it should also be noted that the distributors are showing hesitation when it concerns selling devices that requires servicing which increases the obstacles of offering equipment under a particular brand name.

The business has actually items intended at the high end of the market if we look at Diamond Energy Resources product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Diamond Energy Resources sells Case Study Help under the exact same portfolio. Offered the truth that Case Study Help is priced lower than Diamond Energy Resources high-end line of product, sales cannibalization would definitely be affecting Diamond Energy Resources sales income if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization affecting Diamond Energy Resources 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible hazard which might reduce Diamond Energy Resources income. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or rate awareness which provides us 2 extra reasons for not introducing a low priced item under the company's brand.

Competitor Analysis

The competitive environment of Diamond Energy Resources would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sectors with Diamond Energy Resources taking pleasure in leadership and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While industry competition between these gamers could be called 'extreme' as the consumer is not brand conscious and each of these players has prominence in terms of market share, the fact still remains that the industry is not filled and still has several market sectors which can be targeted as potential niche markets even when launching an adhesive. However, we can even point out the truth that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the market for instant adhesives uses development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low understanding about the product. While business like Diamond Energy Resources have actually managed to train distributors regarding adhesives, the last consumer is dependent on suppliers. Around 72% of sales are made directly by producers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by 3 players, it could be said that the supplier enjoys a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much impact over the purchaser at this point particularly as the buyer does not reveal brand recognition or price level of sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a significant control over the actual sales, this indicates that the distributor has the greater power.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market indicates that the market permits ease of entry. If we look at Diamond Energy Resources in specific, the business has dual abilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Prospective hazards in equipment dispensing industry are low which reveals the possibility of creating brand awareness in not only immediate adhesives however also in dispensing adhesives as none of the market gamers has actually managed to place itself in dual capabilities.

Hazard of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact remains that if Diamond Energy Resources presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Diamond Energy Resources Case Study Help

Despite the fact that our 3C analysis has offered different factors for not introducing Case Study Help under Diamond Energy Resources name, we have a recommended marketing mix for Case Study Help offered below if Diamond Energy Resources chooses to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of reasons. There are currently 89257 facilities in this section and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra development potential of 10.1% which might be a sufficient niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the reality that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the consumer can decide whether he wants to select either of the two accessories or not.

Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or through direct selling. This cost would not include the expense of the 'vari pointer' or the 'glumetic pointer'. A cost below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop requires to purchase the item on his own. This would increase the possibility of affecting mechanics to buy the item for use in their everyday upkeep tasks.

Diamond Energy Resources would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net profitability for Diamond Energy Resources for introducing Case Study Help.

Place: A circulation design where Diamond Energy Resources straight sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Diamond Energy Resources. Because the sales team is currently engaged in offering instant adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be expensive specifically as each sales call costs approximately $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: Although a low promotional budget plan ought to have been designated to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is suggested for at first introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in automobile upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Diamond Energy Resources Case Study Analysis

A suggested plan of action in the kind of a marketing mix has been talked about for Case Study Help, the fact still stays that the item would not complement Diamond Energy Resources product line. We have a look at appendix 2, we can see how the overall gross success for the two designs is expected to be approximately $49377 if 250 systems of each design are manufactured per year according to the strategy. Nevertheless, the initial planned marketing is roughly $52000 per year which would be putting a stress on the company's resources leaving Diamond Energy Resources with a negative earnings if the costs are allocated to Case Study Help only.

The fact that Diamond Energy Resources has already incurred a preliminary investment of $48000 in the form of capital expense and model development shows that the revenue from Case Study Help is inadequate to carry out the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a preferable alternative especially of it is impacting the sale of the business's profits creating models.