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Duffinbear Inc Case Study Help Checklist

Duffinbear Inc Case Study Help Checklist

Duffinbear Inc Case Study Solution
Duffinbear Inc Case Study Help
Duffinbear Inc Case Study Analysis



Analyses for Evaluating Duffinbear Inc decision to launch Case Study Solution


The following section focuses on the of marketing for Duffinbear Inc where the business's consumers, competitors and core proficiencies have actually assessed in order to validate whether the decision to release Case Study Help under Duffinbear Inc brand name would be a practical alternative or not. We have firstly taken a look at the kind of customers that Duffinbear Inc handle while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Duffinbear Inc name.
Duffinbear Inc Case Study Solution

Customer Analysis

Duffinbear Inc clients can be segmented into two groups, last consumers and commercial consumers. Both the groups utilize Duffinbear Inc high performance adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these client groups. There are two kinds of products that are being offered to these possible markets; anaerobic adhesives and instant adhesives. We would be focusing on the consumers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Duffinbear Inc compared to that of instantaneous adhesives.

The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Duffinbear Inc prospective market or customer groups, we can see that the company sells to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair and overhauling business (MRO) and makers dealing in items made of leather, plastic, metal and wood. This variety in clients suggests that Duffinbear Inc can target has various 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 respective changes in packaging, amount or need. The customer is not price sensitive or brand name mindful so launching a low priced dispenser under Duffinbear Inc name is not a recommended option.

Company Analysis

Duffinbear Inc is not just a maker of adhesives however delights in market management in the immediate adhesive industry. The business has its own skilled and competent sales force which adds value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.

Core proficiencies are not restricted to adhesive manufacturing just as Duffinbear Inc also concentrates on making adhesive dispensing equipment to assist in making use of its products. This double production method provides Duffinbear Inc an edge over rivals because none of the rivals of giving equipment makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the consumer either and utilizes distributors for connecting to customers. While we are looking at the strengths of Duffinbear Inc, it is essential to highlight the company's weak points.

Although the company's sales staff is experienced in training suppliers, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It ought to likewise be kept in mind that the distributors are revealing reluctance when it comes to selling equipment that needs maintenance which increases the obstacles of selling devices under a particular brand name.

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

We can see sales cannibalization impacting Duffinbear Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible risk which could lower Duffinbear Inc profits. The truth that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for introducing a dispenser which can highlight the fact 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 orientation or price awareness which provides us 2 extra reasons for not introducing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Duffinbear Inc would be studied through 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 development potential due to the existence of fragmented sectors with Duffinbear Inc enjoying leadership and a combined market share of 75% with 2 other market gamers, Eastman and Permabond. While industry competition between these gamers could be called 'extreme' as the consumer is not brand name conscious and each of these players has prominence in terms of market share, the reality still stays that the market is not filled and still has several market sections which can be targeted as prospective niche markets even when releasing an adhesive. However, we can even explain the reality that sales cannibalization might be causing market rivalry in the adhesive dispenser market while the marketplace for instant adhesives uses development potential.


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

Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 gamers, it could be said that the provider delights in a higher bargaining power compared to the purchaser. The fact stays that the supplier does not have much impact over the buyer at this point especially as the purchaser does not reveal brand acknowledgment or cost sensitivity. This indicates that the distributor has the greater power when it concerns the adhesive market while the manufacturer and the purchaser 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 rivals in the instant adhesive market suggests that the marketplace allows ease of entry. If we look at Duffinbear Inc in specific, the company has dual capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective risks in equipment dispensing market are low which reveals the possibility of producing brand name awareness in not only instantaneous adhesives but likewise in giving adhesives as none of the industry players has actually handled to position itself in double capabilities.

Danger of Substitutes: The danger of substitutes in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Duffinbear Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).


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

Duffinbear Inc Case Study Help


Despite the fact that our 3C analysis has actually provided various factors for not introducing Case Study Help under Duffinbear Inc name, we have actually a suggested marketing mix for Case Study Help provided below if Duffinbear Inc decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra development capacity of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being offered for usage with SuperBonder.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. This rate would not include the cost of the 'vari pointer' or the 'glumetic idea'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for use in their daily maintenance tasks.

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

Place: A circulation model where Duffinbear Inc directly sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Duffinbear Inc. Because the sales team is already engaged in offering instantaneous adhesives and they do not have know-how in offering dispensers, including them in the selling procedure would be costly particularly as each sales call costs roughly $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a favorable option.

Promotion: Although a low promotional budget plan ought to have been appointed to Case Study Help however the fact 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 advised for initially presenting the item in the market. The planned advertisements in magazines would be targeted at mechanics in lorry upkeep shops. (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
Duffinbear Inc Case Study Analysis

A recommended plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the fact still remains that the item would not match Duffinbear Inc product line. We take a look at appendix 2, we can see how the overall gross success for the two designs is anticipated to be approximately $49377 if 250 systems of each design are produced annually based on the plan. The preliminary prepared advertising is roughly $52000 per year which would be putting a pressure on the business's resources leaving Duffinbear Inc with an unfavorable net earnings if the costs are allocated to Case Study Help only.

The reality that Duffinbear Inc has already incurred a preliminary investment of $48000 in the form of capital cost and model development suggests that the profits from Case Study Help is insufficient to undertake the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low flexibility of need is not a preferable alternative particularly of it is affecting the sale of the company's income generating models.



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