Digamem Inc Case Study Help Checklist

Digamem Inc Case Study Help Checklist

Digamem Inc Case Study Solution
Digamem Inc Case Study Help
Digamem Inc Case Study Analysis

Analyses for Evaluating Digamem Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Digamem Inc where the business's consumers, rivals and core competencies have examined in order to justify whether the choice to launch Case Study Help under Digamem Inc trademark name would be a feasible option or not. We have firstly taken a look at the type of clients that Digamem Inc deals in while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Digamem Inc name.
Digamem Inc Case Study Solution

Customer Analysis

Both the groups utilize Digamem Inc high efficiency adhesives while the company is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Digamem Inc compared to that of immediate adhesives.

The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Digamem Inc possible market or consumer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair work and overhauling companies (MRO) and manufacturers dealing in items made from leather, metal, plastic and wood. This diversity in consumers recommends that Digamem Inc can target has various choices in regards to segmenting the market for its brand-new product specifically as each of these groups would be requiring the very same type of item with particular modifications in need, quantity or packaging. Nevertheless, the client is not price sensitive or brand name conscious so releasing a low priced dispenser under Digamem Inc name is not a suggested alternative.

Company Analysis

Digamem Inc is not just a maker of adhesives but delights in market management in the immediate adhesive market. The company has its own skilled and certified sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.

Core skills are not restricted to adhesive production just as Digamem Inc also specializes in making adhesive dispensing devices to help with making use of its products. This double production strategy provides Digamem Inc an edge over rivals given that none of the competitors of dispensing equipment makes instant adhesives. Additionally, none of these rivals offers straight to the consumer either and makes use of suppliers for reaching out to customers. While we are looking at the strengths of Digamem Inc, it is very important to highlight the business's weak points also.

The business's sales staff is experienced 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 suppliers when promoting adhesive equipment. However, it should also be noted that the distributors are showing unwillingness when it pertains to offering devices that requires maintenance which increases the difficulties of offering devices under a specific trademark name.

If we take a look at Digamem Inc product line in adhesive equipment particularly, the business has items aimed at the high end of the market. The possibility of sales cannibalization exists if Digamem Inc offers Case Study Help under the very same portfolio. Given the truth that Case Study Help is priced lower than Digamem Inc high-end line of product, sales cannibalization would definitely be impacting Digamem Inc sales profits if the adhesive devices is offered under the business's trademark name.

We can see sales cannibalization impacting Digamem Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible danger which could lower Digamem Inc income. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a great 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.

Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or rate consciousness which provides us two extra factors for not introducing a low priced product under the company's brand name.

Competitor Analysis

The competitive environment of Digamem Inc would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth potential due to the presence of fragmented sectors with Digamem Inc enjoying management and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While market competition in between these players could be called 'intense' as the consumer is not brand name mindful and each of these players has prominence in terms of market share, the reality still remains that the industry is not saturated and still has a number of market sectors which can be targeted as possible specific niche markets even when launching an adhesive. Nevertheless, we can even explain the fact that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the marketplace for immediate adhesives uses development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low specifically as the purchaser has low understanding about the product. While business like Digamem Inc have handled to train distributors relating to adhesives, the final customer is dependent on distributors. Roughly 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by 3 gamers, it could be stated that the provider takes pleasure 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 especially as the buyer does not show brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the maker and the purchaser 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 name loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the market enables ease of entry. Nevertheless, if we look at Digamem Inc in particular, the company has double abilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Possible risks in equipment giving market are low which shows the possibility of developing brand awareness in not only instant adhesives but likewise in giving adhesives as none of the industry gamers has handled to position itself in dual capabilities.

Risk of Substitutes: The danger of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality stays that if Digamem Inc introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).

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

Digamem Inc Case Study Help

Despite the fact that our 3C analysis has given different factors for not releasing Case Study Help under Digamem Inc name, we have actually a recommended marketing mix for Case Study Help given listed below if Digamem Inc chooses to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a variety of factors. There are presently 89257 facilities in this segment and a high usage of roughly 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional development potential of 10.1% which might be a good enough niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the fact that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the customer can choose whether he wishes to select either of the two devices or not.

Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or through direct selling. This cost would not consist of the cost of the 'vari idea' or the 'glumetic suggestion'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to purchase the product on his own. This would increase the possibility of influencing mechanics to buy the item for use in their day-to-day upkeep jobs.

Digamem Inc would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Digamem Inc for introducing Case Study Help.

Place: A circulation design where Digamem Inc straight sends out the item to the local supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Digamem Inc. Because the sales group is currently engaged in selling immediate adhesives and they do not have expertise in offering dispensers, including them in the selling procedure would be expensive specifically as each sales call expenses approximately $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable option.

Promotion: A low promotional budget should have been assigned 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 incurred 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 car maintenance stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Digamem Inc Case Study Analysis

A suggested strategy of action in the kind of a marketing mix has been gone over for Case Study Help, the fact still stays that the product would not complement Digamem Inc product line. We take a look at appendix 2, we can see how the total gross success for the two designs is anticipated to be around $49377 if 250 units of each design are manufactured per year according to the strategy. The initial prepared advertising is around $52000 per year which would be putting a stress on the company's resources leaving Digamem Inc with an unfavorable net income if the expenditures are designated to Case Study Help just.

The truth that Digamem Inc has already sustained an initial investment of $48000 in the form of capital expense and model development indicates that the earnings from Case Study Help is inadequate to undertake the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a more suitable choice specifically of it is impacting the sale of the business's profits generating models.