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Direct Response Advertising At Liberator Medical Holdings Inc Case Study Help Checklist

Direct Response Advertising At Liberator Medical Holdings Inc Case Study Help Checklist

Direct Response Advertising At Liberator Medical Holdings Inc Case Study Solution
Direct Response Advertising At Liberator Medical Holdings Inc Case Study Help
Direct Response Advertising At Liberator Medical Holdings Inc Case Study Analysis



Analyses for Evaluating Direct Response Advertising At Liberator Medical Holdings Inc decision to launch Case Study Solution


The following section concentrates on the of marketing for Direct Response Advertising At Liberator Medical Holdings Inc where the business's consumers, competitors and core competencies have assessed in order to justify whether the choice to introduce Case Study Help under Direct Response Advertising At Liberator Medical Holdings Inc brand name would be a feasible option or not. We have firstly taken a look at the kind of customers that Direct Response Advertising At Liberator Medical Holdings Inc handle while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Direct Response Advertising At Liberator Medical Holdings Inc name.
Direct Response Advertising At Liberator Medical Holdings Inc Case Study Solution

Customer Analysis

Direct Response Advertising At Liberator Medical Holdings Inc consumers can be segmented into two groups, final consumers and industrial customers. Both the groups use Direct Response Advertising At Liberator Medical Holdings Inc high performance adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these customer groups. There are 2 kinds of items that are being offered to these possible markets; anaerobic adhesives and instant adhesives. We would be concentrating on the consumers of instant adhesives for this analysis because the market for the latter has a lower capacity for Direct Response Advertising At Liberator Medical Holdings Inc compared to that of instant adhesives.

The total market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Direct Response Advertising At Liberator Medical Holdings Inc prospective market or customer groups, we can see that the company offers to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and makers dealing in products made of leather, wood, plastic and metal. This variety in clients recommends that Direct Response Advertising At Liberator Medical Holdings Inc can target has numerous choices in terms of segmenting the market for its new product especially as each of these groups would be needing the exact same type of item with particular modifications in quantity, product packaging or demand. However, the customer is not price sensitive or brand name conscious so releasing a low priced dispenser under Direct Response Advertising At Liberator Medical Holdings Inc name is not a suggested choice.

Company Analysis

Direct Response Advertising At Liberator Medical Holdings Inc is not just a manufacturer of adhesives however delights in market leadership in the instant adhesive industry. The business has its own proficient and certified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Direct Response Advertising At Liberator Medical Holdings Inc believes in special circulation as indicated by the reality that it has chosen to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for broadening reach via distributors. The business's reach is not limited to North America just as it likewise takes pleasure in international sales. With 1400 outlets spread all across North America, Direct Response Advertising At Liberator Medical Holdings Inc has its in-house production plants rather than using out-sourcing as the favored technique.

Core proficiencies are not restricted to adhesive production only as Direct Response Advertising At Liberator Medical Holdings Inc likewise focuses on making adhesive dispensing devices to help with using its items. This double production strategy provides Direct Response Advertising At Liberator Medical Holdings Inc an edge over competitors since none of the competitors of giving devices makes instantaneous adhesives. Additionally, none of these competitors sells directly to the consumer either and makes use of distributors for reaching out to customers. While we are looking at the strengths of Direct Response Advertising At Liberator Medical Holdings Inc, it is essential to highlight the business's weak points.

Although the company's sales personnel is knowledgeable in training suppliers, the truth stays that the sales team is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it must likewise be noted that the distributors are showing hesitation when it comes to offering equipment that needs servicing which increases the difficulties of offering devices under a particular brand name.

The business has products aimed at the high end of the market if we look at Direct Response Advertising At Liberator Medical Holdings Inc product line in adhesive devices especially. If Direct Response Advertising At Liberator Medical Holdings Inc offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Direct Response Advertising At Liberator Medical Holdings Inc high-end product line, sales cannibalization would definitely be affecting Direct Response Advertising At Liberator Medical Holdings Inc sales earnings if the adhesive equipment is sold under the company's brand name.

We can see sales cannibalization impacting Direct Response Advertising At Liberator Medical Holdings Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Direct Response Advertising At Liberator Medical Holdings Inc earnings if Case Study Help is introduced under the company's brand. The reality that $175000 has 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 immediate adhesive.

Additionally, if we look at the market in general, the adhesives market does not show brand name orientation or cost awareness which gives us two extra reasons for not releasing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Direct Response Advertising At Liberator Medical Holdings Inc would be studied by means of 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 potential due to the presence of fragmented sections with Direct Response Advertising At Liberator Medical Holdings Inc enjoying leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While market competition in between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these players has prominence in regards to market share, the fact still stays that the market is not saturated and still has several market sections which can be targeted as potential specific niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for immediate adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low knowledge about the item. While business like Direct Response Advertising At Liberator Medical Holdings Inc have handled to train suppliers regarding adhesives, the last consumer is dependent on distributors. Roughly 72% of sales are made straight by makers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 gamers, it could be stated that the supplier delights in a greater bargaining power compared to the buyer. Nevertheless, the fact stays that the supplier does not have much impact over the purchaser at this moment especially as the purchaser does not show brand name acknowledgment or price level of sensitivity. This indicates that the distributor has the greater power when it pertains to 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 commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market shows that the market allows ease of entry. If we look at Direct Response Advertising At Liberator Medical Holdings Inc in particular, the business has dual abilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible dangers in equipment dispensing industry are low which shows the possibility of creating brand name awareness in not only instant adhesives but likewise in dispensing adhesives as none of the market gamers has managed to position itself in double capabilities.

Danger of Substitutes: The hazard of replacements in the immediate adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Direct Response Advertising At Liberator Medical Holdings Inc presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).


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

Direct Response Advertising At Liberator Medical Holdings Inc Case Study Help


Despite the fact that our 3C analysis has given various factors for not launching Case Study Help under Direct Response Advertising At Liberator Medical Holdings Inc name, we have a recommended marketing mix for Case Study Help given below if Direct Response Advertising At Liberator Medical Holdings Inc chooses to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development potential of 10.1% which might be a great sufficient specific niche market section for Case Study Help. Not just would a portable dispenser offer benefit 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 sold for usage with SuperBonder.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance store needs to purchase the product on his own.

Direct Response Advertising At Liberator Medical Holdings Inc would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Direct Response Advertising At Liberator Medical Holdings Inc for launching Case Study Help.

Place: A circulation model where Direct Response Advertising At Liberator Medical Holdings Inc directly sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Direct Response Advertising At Liberator Medical Holdings Inc. Since the sales team is already taken part in selling immediate adhesives and they do not have proficiency in offering dispensers, including them in the selling procedure would be expensive specifically as each sales call costs around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: Although a low marketing budget plan needs 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 suggested advertising plan costing $51816 is recommended for at first introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in car upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Direct Response Advertising At Liberator Medical Holdings Inc Case Study Analysis

A recommended plan of action in the form of a marketing mix has been gone over for Case Study Help, the reality still remains that the product would not complement Direct Response Advertising At Liberator Medical Holdings Inc product line. We have a look at appendix 2, we can see how the total gross success for the two models is expected to be approximately $49377 if 250 units of each model are produced each year based on the plan. However, the preliminary prepared marketing is approximately $52000 each year which would be putting a pressure on the company's resources leaving Direct Response Advertising At Liberator Medical Holdings Inc with an unfavorable net income if the costs are allocated to Case Study Help just.

The reality that Direct Response Advertising At Liberator Medical Holdings Inc has already sustained an initial investment of $48000 in the form of capital cost and prototype development suggests that the income from Case Study Help is insufficient to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable alternative particularly of it is impacting the sale of the business's revenue producing models.



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