Ecomotors International Case Study Help Checklist

Ecomotors International Case Study Help Checklist

Ecomotors International Case Study Solution
Ecomotors International Case Study Help
Ecomotors International Case Study Analysis

Analyses for Evaluating Ecomotors International decision to launch Case Study Solution

The following section concentrates on the of marketing for Ecomotors International where the company's customers, competitors and core competencies have examined in order to justify whether the decision to introduce Case Study Help under Ecomotors International brand name would be a practical alternative or not. We have actually first of all taken a look at the type of consumers that Ecomotors International handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Ecomotors International name.
Ecomotors International Case Study Solution

Customer Analysis

Both the groups utilize Ecomotors International high efficiency adhesives while the company is not just involved in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Ecomotors International compared to that of immediate adhesives.

The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Ecomotors International potential market or client groups, we can see that the company offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair work and overhauling business (MRO) and makers dealing in products made from leather, metal, wood and plastic. This variety in clients suggests that Ecomotors International can target has numerous options in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the very same type of item with particular modifications in product packaging, need or amount. However, the client is not cost delicate or brand name mindful so introducing a low priced dispenser under Ecomotors International name is not a suggested choice.

Company Analysis

Ecomotors International is not just a manufacturer of adhesives however delights in market management in the instant adhesive market. The business has its own competent and certified sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core competences are not limited to adhesive production only as Ecomotors International likewise concentrates on making adhesive giving equipment to assist in the use of its items. This double production method provides Ecomotors International an edge over rivals since none of the rivals of giving devices makes instant adhesives. Furthermore, none of these competitors offers straight to the consumer either and makes use of distributors for connecting to customers. While we are looking at the strengths of Ecomotors International, it is essential to highlight the business's weak points.

The company's sales personnel is proficient in training distributors, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it must likewise be kept in mind that the distributors are revealing hesitation when it concerns offering equipment that requires maintenance 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 Ecomotors International item line in adhesive devices particularly. If Ecomotors International sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Ecomotors International high-end line of product, sales cannibalization would absolutely be impacting Ecomotors International sales income if the adhesive devices is offered under the business's brand name.

We can see sales cannibalization affecting Ecomotors International 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible risk which could reduce Ecomotors International income. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for launching 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.

Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which provides us two extra factors for not introducing a low priced item under the company's trademark name.

Competitor Analysis

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.

Degree of Rivalry:

Presently we can see that the adhesive market has a high development potential due to the presence of fragmented sections with Ecomotors International enjoying leadership and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry rivalry in between these players could be called 'extreme' as the customer is not brand mindful and each of these players has prominence in regards to market share, the reality still remains that the market is not filled and still has a number of market segments which can be targeted as possible niche markets even when introducing an adhesive. We can even point out the fact that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instantaneous adhesives uses development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the purchaser has low understanding about the product. While business like Ecomotors International have actually managed to train distributors concerning adhesives, the last customer depends on suppliers. Roughly 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by three players, it could be stated that the supplier delights in a higher bargaining power compared to the buyer. The truth stays that the supplier does not have much influence over the buyer at this point particularly as the purchaser does not show brand name recognition or price level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer 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 loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the marketplace allows ease of entry. However, if we take a look at Ecomotors International in particular, the company has dual capabilities in regards to being a producer of adhesive dispensers and instantaneous adhesives. Possible threats in devices giving industry are low which shows the possibility of developing brand name awareness in not just instantaneous adhesives however likewise in dispensing adhesives as none of the industry gamers has actually handled to place itself in double abilities.

Danger of Substitutes: The hazard of alternatives in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The truth stays that if Ecomotors International presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).

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

Ecomotors International Case Study Help

Despite the fact that our 3C analysis has given numerous factors for not launching Case Study Help under Ecomotors International name, we have actually a suggested marketing mix for Case Study Help provided below if Ecomotors International decides to go on with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra development capacity of 10.1% which may be a great adequate specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the reality that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.

Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep shop requires to purchase the item on his own.

Ecomotors International would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Ecomotors International for releasing Case Study Help.

Place: A distribution design where Ecomotors International directly sends out the product to the local supplier and keeps a 10% drop delivery allowance for the supplier would be used by Ecomotors International. Because the sales group is already engaged in selling immediate adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be expensive specifically as each sales call expenses roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable choice.

Promotion: Although a low marketing budget plan should have been assigned to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested advertising strategy costing $51816 is advised for initially introducing the product in the market. The prepared advertisements in publications would be targeted at mechanics in lorry upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Ecomotors International Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the fact still remains that the item would not complement Ecomotors International line of product. We have a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be roughly $49377 if 250 units of each model are produced each year according to the strategy. However, the initial planned advertising is around $52000 per year which would be putting a strain on the company's resources leaving Ecomotors International with an unfavorable earnings if the expenditures are allocated to Case Study Help only.

The fact that Ecomotors International has currently sustained an initial investment of $48000 in the form of capital cost and model development shows that the revenue from Case Study Help is insufficient to carry out the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a more suitable choice especially of it is affecting the sale of the business's profits creating designs.