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Digamem Inc Case Study Solution
Digamem Inc Case Study Help
Digamem Inc Case Study Analysis
The following area concentrates on the of marketing for Digamem Inc where the company's consumers, competitors and core competencies have actually examined in order to validate whether the choice to release Case Study Help under Digamem Inc trademark name would be a possible option or not. We have actually to start with looked at the kind of consumers that Digamem Inc handle while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Digamem Inc name.
Digamem Inc consumers can be segmented into two groups, last consumers and commercial clients. Both the groups use Digamem Inc high performance adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these consumer groups. There are two types of items that are being offered to these potential markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower potential for Digamem Inc compared to that of immediate adhesives.
The total market for instantaneous adhesives is approximately 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 Digamem Inc possible market or customer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair work and revamping business (MRO) and manufacturers dealing in items made from leather, metal, plastic and wood. This variety in consumers recommends that Digamem Inc can target has various choices in terms of segmenting the marketplace for its new item specifically as each of these groups would be needing the exact same kind of product with particular modifications in amount, product packaging or need. The client is not cost sensitive or brand name conscious so introducing a low priced dispenser under Digamem Inc name is not a suggested alternative.
Digamem Inc is not simply a producer of adhesives however enjoys market leadership in the instant adhesive market. The business has its own experienced and certified sales force which includes value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not limited to adhesive manufacturing only as Digamem Inc also concentrates on making adhesive giving equipment to facilitate making use of its products. This double production technique provides Digamem Inc an edge over rivals given that none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these rivals offers straight to the consumer either and uses suppliers for reaching out to customers. While we are looking at the strengths of Digamem Inc, it is crucial to highlight the business's weaknesses.
The company's sales personnel is skilled in training distributors, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it should likewise be kept in mind that the suppliers are revealing reluctance when it concerns offering devices that needs maintenance which increases the difficulties of selling equipment under a specific brand.
The business has products intended at the high end of the market if we look at Digamem Inc product line in adhesive devices particularly. The possibility of sales cannibalization exists if Digamem Inc sells Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Digamem Inc high-end line of product, sales cannibalization would absolutely be affecting Digamem Inc sales earnings 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 introduced under the business's brand name, there is another possible risk which could decrease Digamem Inc revenue. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for launching 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 take a look at the market in general, the adhesives market does not show brand orientation or price consciousness which offers us 2 additional reasons for not introducing a low priced item under the business's brand name.
The competitive environment of Digamem Inc would be studied through Porter's 5 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 particularly as the purchaser has low understanding about the product. While companies like Digamem Inc 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 distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 players, it could be stated that the supplier enjoys a higher bargaining power compared to the buyer. However, the fact remains that the provider does not have much influence over the buyer at this moment especially as the purchaser does disappoint brand recognition or rate sensitivity. This shows that the distributor has the greater power when it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market indicates that the market enables ease of entry. Nevertheless, if we take a look at Digamem Inc in particular, the company has double capabilities in regards to being a manufacturer of immediate adhesives and adhesive dispensers. Prospective threats in equipment dispensing market are low which reveals the possibility of creating brand awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has actually managed to place itself in double abilities.
Threat of Substitutes: The danger of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The fact remains that if Digamem Inc introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given numerous reasons for not releasing Case Study Help under Digamem Inc name, we have actually a suggested marketing mix for Case Study Help offered below if Digamem Inc decides to go on with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this segment and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra development capacity of 10.1% which might be a good enough niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the fact that the Diy market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the customer can choose whether he wants to go with 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 sold through distributors or by means of direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the product on his own.
Digamem Inc would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Digamem Inc for introducing Case Study Help.
Place: A distribution model where Digamem Inc directly sends the product to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Digamem Inc. Given that the sales group is already participated in selling instantaneous adhesives and they do not have expertise in selling dispensers, including them in the selling procedure would be costly especially as each sales call expenses roughly $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low promotional budget should have been designated to Case Study Help however the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is advised for initially introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in lorry maintenance shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
