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Ecomotors International Case Study Solution
Ecomotors International Case Study Help
Ecomotors International Case Study Analysis
The following section focuses on the of marketing for Ecomotors International where the company's clients, competitors and core proficiencies have examined in order to validate whether the decision to introduce Case Study Help under Ecomotors International trademark name would be a feasible alternative or not. We have firstly looked at the kind of consumers that Ecomotors International deals in while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Ecomotors International name.
Both the groups use Ecomotors International high efficiency adhesives while the business is not only involved in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower capacity for Ecomotors International compared to that of immediate adhesives.
The total market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Ecomotors International prospective market or consumer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself customers, repair and revamping business (MRO) and makers dealing in products made of leather, metal, wood and plastic. This diversity in consumers suggests that Ecomotors International can target has numerous choices in terms of segmenting the market for its brand-new product especially as each of these groups would be needing the same kind of product with particular changes in product packaging, quantity or need. The client is not cost sensitive or brand name conscious so introducing a low priced dispenser under Ecomotors International name is not a recommended alternative.
Ecomotors International is not just a maker of adhesives but delights in market leadership in the immediate adhesive industry. The company has its own knowledgeable and qualified sales force which includes value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Ecomotors International believes in exclusive circulation as suggested by the truth that it has actually selected to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach through distributors. The company's reach is not restricted to North America just as it also takes pleasure in global sales. With 1400 outlets spread out all throughout The United States and Canada, Ecomotors International has its in-house production plants rather than using out-sourcing as the preferred technique.
Core skills are not restricted to adhesive production only as Ecomotors International also focuses on making adhesive giving devices to facilitate making use of its items. This dual production strategy offers Ecomotors International an edge over rivals considering that none of the rivals of giving equipment makes instantaneous adhesives. In addition, none of these rivals sells directly to the customer either and utilizes distributors for reaching out to clients. While we are looking at the strengths of Ecomotors International, it is crucial to highlight the business's weaknesses.
The company's sales personnel is proficient in training suppliers, the truth stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It must likewise be kept in mind that the suppliers are showing hesitation when it comes to offering equipment that requires servicing which increases the obstacles of selling equipment under a particular brand name.
If we look at Ecomotors International product line in adhesive equipment especially, the company has actually products aimed at the high end of the marketplace. If Ecomotors International offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Ecomotors International high-end line of product, sales cannibalization would definitely be impacting Ecomotors International sales profits if the adhesive devices is offered under the company's brand name.
We can see sales cannibalization affecting Ecomotors International 27A Pencil Applicator which is priced at $275. There is another possible hazard which could decrease Ecomotors International earnings if Case Study Help is released under the company's trademark name. The fact that $175000 has been invested in promoting SuperBonder suggests 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 instant adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand orientation or cost awareness which gives us two additional reasons for not launching a low priced item under the business's brand.
The competitive environment of Ecomotors International would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low understanding about the product. While business like Ecomotors International have managed to train suppliers regarding adhesives, the final consumer depends on distributors. Around 72% of sales are made straight by producers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by 3 gamers, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. However, the fact stays that the provider does not have much impact over the buyer at this moment especially as the buyer does disappoint brand recognition or cost level of sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a significant control over the real sales, this shows that the distributor has the greater 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 indicates that the marketplace enables ease of entry. If we look at Ecomotors International in specific, the company has dual abilities in terms of being a producer of adhesive dispensers and instant adhesives. Possible threats in equipment dispensing market are low which reveals the possibility of developing brand name awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the industry players has actually managed to place itself in double capabilities.
Danger of Substitutes: The threat of replacements in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The reality stays that if Ecomotors International presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided different reasons for not releasing Case Study Help under Ecomotors International name, we have actually a recommended marketing mix for Case Study Help given below if Ecomotors International decides to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this sector and a high use of around 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which may be a good enough specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the fact that the Diy market can also be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic suggestion' and 'vari-drop' so that the customer can choose whether he wishes to choose either of the two devices or not.
Price: The suggested 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 upkeep shop requires to buy the item on his own.
Ecomotors International would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Ecomotors International for introducing Case Study Help.
Place: A distribution design where Ecomotors International straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Ecomotors International. Considering that the sales team is already engaged in selling instant adhesives and they do not have know-how in selling dispensers, involving them in the selling procedure would be costly particularly as each sales call costs around $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low promotional spending plan should have been designated to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested marketing plan costing $51816 is suggested for initially presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in car upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
