The following area focuses on the of marketing for Eddie Bauer B where the company's customers, rivals and core competencies have evaluated in order to validate whether the choice to launch Case Study Help under Eddie Bauer B brand name would be a possible alternative or not. We have first of all taken a look at the type of customers that Eddie Bauer B handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Eddie Bauer B name.
Both the groups use Eddie Bauer B high performance adhesives while the company is not just included in the production of these adhesives but also markets them to these customer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower capacity for Eddie Bauer B compared to that of immediate adhesives.
The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Eddie Bauer B potential market or customer groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair and upgrading business (MRO) and producers handling items made of leather, plastic, metal and wood. This variety in clients recommends that Eddie Bauer B can target has various alternatives in terms of segmenting the marketplace for its new item especially as each of these groups would be requiring the same kind of item with respective changes in product packaging, quantity or demand. The client is not price delicate or brand name mindful so launching a low priced dispenser under Eddie Bauer B name is not a recommended choice.
Eddie Bauer B is not just a producer of adhesives however enjoys market leadership in the immediate adhesive market. The business has its own competent and qualified sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Eddie Bauer B believes in unique distribution as shown by the truth that it has actually selected to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for expanding reach through suppliers. The business's reach is not restricted to The United States and Canada only as it likewise takes pleasure in worldwide sales. With 1400 outlets spread out all throughout The United States and Canada, Eddie Bauer B has its internal production plants rather than utilizing out-sourcing as the favored technique.
Core skills are not limited to adhesive manufacturing just as Eddie Bauer B also concentrates on making adhesive dispensing equipment to help with making use of its products. This dual production strategy offers Eddie Bauer B an edge over rivals since none of the competitors of dispensing devices makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the customer either and uses distributors for connecting to clients. While we are looking at the strengths of Eddie Bauer B, it is essential to highlight the company's weak points.
The company's sales staff is skilled in training suppliers, the reality stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It should also be kept in mind that the suppliers are showing reluctance when it comes to offering equipment that requires servicing which increases the challenges of selling devices under a specific brand name.
If we take a look at Eddie Bauer B line of product in adhesive devices especially, the company has actually items targeted at the high-end of the market. If Eddie Bauer B sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Eddie Bauer B high-end product line, sales cannibalization would definitely be affecting Eddie Bauer B sales income if the adhesive equipment is offered under the business's brand.
We can see sales cannibalization affecting Eddie Bauer B 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible risk which could lower Eddie Bauer B profits. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand orientation or price consciousness which provides us 2 additional factors for not launching a low priced item under the business's trademark name.
The competitive environment of Eddie Bauer B would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low knowledge about the product. While business like Eddie Bauer B have actually handled to train suppliers relating to adhesives, the last customer depends on distributors. Approximately 72% of sales are made straight by producers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by 3 gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. Nevertheless, the truth remains that the provider does not have much influence over the purchaser at this point especially as the buyer does not show brand acknowledgment or rate sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the real sales, this indicates that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace enables ease of entry. If we look at Eddie Bauer B in specific, the business has dual capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Possible threats in devices giving industry are low which reveals the possibility of developing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the market players has actually managed to position itself in dual capabilities.
Danger of Substitutes: The risk of substitutes in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Eddie Bauer B introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered different factors for not launching Case Study Help under Eddie Bauer B name, we have a recommended marketing mix for Case Study Help offered listed below if Eddie Bauer B chooses to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this sector and a high usage of around 58900 lbs. is being used by 36.1 % of the market. This market has an extra growth potential of 10.1% which might be a good enough specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience 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 wishes to go with either of the two accessories or not.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep shop needs to buy the item on his own.
Eddie Bauer B would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net success for Eddie Bauer B for releasing Case Study Help.
Place: A circulation model where Eddie Bauer B straight sends out the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by Eddie Bauer B. Because the sales group is currently engaged in offering immediate adhesives and they do not have know-how in offering dispensers, including them in the selling process would be expensive especially as each sales call costs around $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: A low promotional spending plan ought to have been assigned to Case Study Help however the fact 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 strategy costing $51816 is recommended for at first introducing the item in the market. The prepared ads in publications would be targeted at mechanics in lorry maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).