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East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Help Checklist

East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Help Checklist

East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Solution
East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Help
East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Analysis



Analyses for Evaluating East Meets West Rothschilds Investment In Indonesias Bakrie Group decision to launch Case Study Solution


The following area concentrates on the of marketing for East Meets West Rothschilds Investment In Indonesias Bakrie Group where the business's customers, rivals and core proficiencies have examined in order to justify whether the choice to introduce Case Study Help under East Meets West Rothschilds Investment In Indonesias Bakrie Group trademark name would be a feasible option or not. We have first of all taken a look at the kind of clients that East Meets West Rothschilds Investment In Indonesias Bakrie Group deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under East Meets West Rothschilds Investment In Indonesias Bakrie Group name.
East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Solution

Customer Analysis

East Meets West Rothschilds Investment In Indonesias Bakrie Group consumers can be segmented into two groups, final customers and commercial customers. Both the groups use East Meets West Rothschilds Investment In Indonesias Bakrie Group high performance adhesives while the company is not just involved in the production of these adhesives however likewise markets them to these customer groups. There are 2 kinds of products that are being sold to these possible markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for East Meets West Rothschilds Investment In Indonesias Bakrie Group compared to that of instant adhesives.

The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have been recognized earlier.If we look at a breakdown of East Meets West Rothschilds Investment In Indonesias Bakrie Group prospective market or client groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself consumers, repair and upgrading business (MRO) and manufacturers dealing in items made of leather, plastic, wood and metal. This variety in consumers recommends that East Meets West Rothschilds Investment In Indonesias Bakrie Group can target has various options in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be requiring the very same kind of item with particular modifications in packaging, demand or amount. However, the client is not cost delicate or brand conscious so launching a low priced dispenser under East Meets West Rothschilds Investment In Indonesias Bakrie Group name is not an advised alternative.

Company Analysis

East Meets West Rothschilds Investment In Indonesias Bakrie Group is not just a producer of adhesives but delights in market management in the immediate adhesive industry. The business has its own knowledgeable and certified sales force which adds value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.

Core skills are not restricted to adhesive manufacturing only as East Meets West Rothschilds Investment In Indonesias Bakrie Group likewise concentrates on making adhesive dispensing devices to assist in making use of its items. This double production method provides East Meets West Rothschilds Investment In Indonesias Bakrie Group an edge over competitors considering that none of the rivals of giving equipment makes instant adhesives. Furthermore, none of these competitors offers straight to the consumer either and utilizes distributors for connecting to clients. While we are looking at the strengths of East Meets West Rothschilds Investment In Indonesias Bakrie Group, it is important to highlight the company's weaknesses.

Although the business's sales personnel is skilled in training distributors, the truth 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. However, it should also be noted that the distributors are showing hesitation when it pertains to selling equipment that needs servicing which increases the challenges of offering devices under a particular trademark name.

The company has actually products aimed at the high end of the market if we look at East Meets West Rothschilds Investment In Indonesias Bakrie Group item line in adhesive equipment particularly. The possibility of sales cannibalization exists if East Meets West Rothschilds Investment In Indonesias Bakrie Group sells Case Study Help under the same portfolio. Given the truth that Case Study Help is priced lower than East Meets West Rothschilds Investment In Indonesias Bakrie Group high-end product line, sales cannibalization would definitely be affecting East Meets West Rothschilds Investment In Indonesias Bakrie Group sales earnings if the adhesive devices is offered under the company's brand name.

We can see sales cannibalization affecting East Meets West Rothschilds Investment In Indonesias Bakrie Group 27A Pencil Applicator which is priced at $275. There is another possible risk which could decrease East Meets West Rothschilds Investment In Indonesias Bakrie Group earnings if Case Study Help is launched under the company's trademark name. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a good 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 instant adhesive.

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

Competitor Analysis

The competitive environment of East Meets West Rothschilds Investment In Indonesias Bakrie Group would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sectors with East Meets West Rothschilds Investment In Indonesias Bakrie Group delighting in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While industry competition in between these gamers could be called 'intense' as the consumer is not brand conscious and each of these gamers has prominence in regards to market share, the truth still remains that the industry is not saturated and still has numerous market sections which can be targeted as prospective niche markets even when releasing an adhesive. Nevertheless, we can even point out the fact that sales cannibalization may be causing industry competition 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 particularly as the purchaser has low understanding about the product. While companies like East Meets West Rothschilds Investment In Indonesias Bakrie Group have managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the truth 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 buyer. However, the truth stays that the provider does not have much influence over the purchaser at this moment particularly as the purchaser does disappoint brand recognition or rate sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a significant control over the actual sales, this indicates that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market suggests that the market enables ease of entry. If we look at East Meets West Rothschilds Investment In Indonesias Bakrie Group in particular, the business has double capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Possible threats in devices dispensing industry are low which reveals the possibility of developing brand awareness in not just immediate adhesives but also in giving adhesives as none of the industry players has managed to position itself in double abilities.

Threat of Substitutes: The threat of substitutes in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth remains that if East Meets West Rothschilds Investment In Indonesias Bakrie Group presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).


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

East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Help


Despite the fact that our 3C analysis has actually provided various reasons for not releasing Case Study Help under East Meets West Rothschilds Investment In Indonesias Bakrie Group name, we have actually a recommended marketing mix for Case Study Help offered listed below if East Meets West Rothschilds Investment In Indonesias Bakrie Group decides to proceed with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this section and a high use of roughly 58900 lbs. is being used by 36.1 % of the market. This market has an extra development capacity of 10.1% which might be a sufficient specific niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Diy market can also be targeted if a drinkable low priced adhesive is being cost usage with SuperBonder. The item would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wants to select either of the two devices or not.

Price: The recommended rate 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. This price would not consist of the cost of the 'vari tip' or the 'glumetic pointer'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to buy the item on his own. This would increase the possibility of influencing mechanics to purchase the item for usage in their day-to-day maintenance tasks.

East Meets West Rothschilds Investment In Indonesias Bakrie Group would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for East Meets West Rothschilds Investment In Indonesias Bakrie Group for introducing Case Study Help.

Place: A circulation model where East Meets West Rothschilds Investment In Indonesias Bakrie Group directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by East Meets West Rothschilds Investment In Indonesias Bakrie Group. Considering that the sales group is currently taken part in offering instant adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be costly particularly as each sales call costs roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable choice.

Promotion: A low advertising budget plan needs to have been designated 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 incurred for production, the suggested marketing plan costing $51816 is recommended for initially introducing the item in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance 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
East Meets West Rothschilds Investment In Indonesias Bakrie Group Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the reality still remains that the item would not complement East Meets West Rothschilds Investment In Indonesias Bakrie Group product line. We take a look at appendix 2, we can see how the total gross success for the two models is expected to be roughly $49377 if 250 units of each design are made per year according to the strategy. The preliminary prepared advertising is roughly $52000 per year which would be putting a strain on the company's resources leaving East Meets West Rothschilds Investment In Indonesias Bakrie Group with an unfavorable net income if the expenditures are assigned to Case Study Help only.

The truth that East Meets West Rothschilds Investment In Indonesias Bakrie Group has currently sustained a preliminary financial investment of $48000 in the form of capital cost and prototype development shows that the revenue from Case Study Help is insufficient 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 need is not a more effective alternative particularly of it is impacting the sale of the company's profits generating designs.



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