Dragon Beer Case Study Help Checklist

Dragon Beer Case Study Help Checklist

Dragon Beer Case Study Solution
Dragon Beer Case Study Help
Dragon Beer Case Study Analysis

Analyses for Evaluating Dragon Beer decision to launch Case Study Solution

The following area focuses on the of marketing for Dragon Beer where the company's consumers, competitors and core proficiencies have assessed in order to validate whether the decision to introduce Case Study Help under Dragon Beer brand name would be a feasible choice or not. We have to start with looked at the type of customers that Dragon Beer deals in while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Dragon Beer name.
Dragon Beer Case Study Solution

Customer Analysis

Dragon Beer customers can be segmented into two groups, industrial customers and final consumers. Both the groups use Dragon Beer 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 2 kinds of items that are being sold to these possible markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Dragon Beer compared to that of instant adhesives.

The total market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Dragon Beer potential market or client groups, we can see that the business offers to OEMs (Original Devices Makers), Do-it-Yourself customers, repair work and upgrading business (MRO) and producers handling products made from leather, plastic, wood and metal. This variety in customers recommends that Dragon Beer can target has numerous alternatives in terms of segmenting the market for its new item specifically as each of these groups would be requiring the exact same kind of product with respective changes in product packaging, demand or amount. The client is not rate delicate or brand mindful so introducing a low priced dispenser under Dragon Beer name is not a suggested choice.

Company Analysis

Dragon Beer is not simply a maker of adhesives but enjoys market management in the instant adhesive market. The business has its own proficient and competent 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 just as Dragon Beer also focuses on making adhesive dispensing equipment to help with making use of its products. This double production method gives Dragon Beer an edge over rivals since none of the rivals of giving devices makes instantaneous adhesives. Additionally, none of these rivals offers straight to the customer either and makes use of distributors for reaching out to consumers. While we are looking at the strengths of Dragon Beer, it is essential to highlight the company's weak points too.

Although the business's sales staff is knowledgeable in training distributors, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it needs to also be noted that the distributors are showing hesitation when it pertains to offering equipment that requires maintenance which increases the difficulties of selling equipment under a particular brand name.

The company has actually products intended at the high end of the market if we look at Dragon Beer item line in adhesive equipment especially. The possibility of sales cannibalization exists if Dragon Beer sells Case Study Help under the very same portfolio. Given the reality that Case Study Help is priced lower than Dragon Beer high-end line of product, sales cannibalization would absolutely be affecting Dragon Beer sales revenue if the adhesive devices is offered under the company's brand.

We can see sales cannibalization affecting Dragon Beer 27A Pencil Applicator which is priced at $275. There is another possible risk which might lower Dragon Beer revenue if Case Study Help is introduced under the business's brand. The truth that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

In addition, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or price awareness which provides us 2 extra reasons for not releasing a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Dragon Beer 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 development capacity due to the existence of fragmented sectors with Dragon Beer delighting in management and a combined market share of 75% with two other market players, Eastman and Permabond. While industry competition in between these gamers could be called 'extreme' as the customer is not brand name mindful and each of these gamers has prominence in regards to market share, the reality still remains that the industry is not saturated and still has numerous market segments which can be targeted as potential niche markets even when introducing an adhesive. We can even point out the fact that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for immediate adhesives offers growth capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low knowledge about the item. While business like Dragon Beer have managed to train distributors relating to adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made straight by makers and suppliers for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by 3 gamers, it could be stated that the supplier delights in a higher bargaining power compared to the purchaser. The truth stays that the supplier does not have much influence over the buyer at this point especially as the buyer does not reveal brand name recognition or cost level of sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a major control over the actual sales, this shows 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 rivals in the instant adhesive market indicates that the market enables ease of entry. If we look at Dragon Beer in specific, the company has dual abilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Prospective hazards in devices giving market are low which reveals the possibility of producing brand name awareness in not just instant adhesives however likewise in giving adhesives as none of the market gamers has managed to place itself in double capabilities.

Threat of Substitutes: The risk of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Dragon Beer introduced 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

Dragon Beer Case Study Help

Despite the fact that our 3C analysis has actually offered different reasons for not introducing Case Study Help under Dragon Beer name, we have actually a suggested marketing mix for Case Study Help provided below if Dragon Beer chooses to proceed with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an extra development potential of 10.1% which might be an excellent sufficient niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the fact that the Diy market can likewise be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

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

Dragon Beer would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Dragon Beer for launching Case Study Help.

Place: A distribution model where Dragon Beer directly sends the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Dragon Beer. Because the sales group is already taken part in selling immediate adhesives and they do not have competence in offering dispensers, including them in the selling process would be pricey specifically as each sales call costs around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable choice.

Promotion: Although a low marketing spending plan needs to have been appointed to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is suggested for at first presenting the product in the market. The planned ads in publications would be targeted at mechanics in car upkeep stores. (Suggested 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
Dragon Beer Case Study Analysis

A suggested strategy of action in the type of a marketing mix has actually been gone over for Case Study Help, the truth still stays that the item would not complement Dragon Beer item line. We take a look at appendix 2, we can see how the total gross profitability for the two models is anticipated to be roughly $49377 if 250 units of each model are produced annually according to the plan. The preliminary prepared marketing is around $52000 per year which would be putting a stress on the business's resources leaving Dragon Beer with an unfavorable net income if the costs are allocated to Case Study Help only.

The truth that Dragon Beer has currently incurred an initial investment of $48000 in the form of capital expense and prototype development shows that the earnings from Case Study Help is not enough to carry out 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 specifically of it is impacting the sale of the business's profits producing models.