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Elliot Lebowitz Case Study Help Checklist

Elliot Lebowitz Case Study Help Checklist

Elliot Lebowitz Case Study Solution
Elliot Lebowitz Case Study Help
Elliot Lebowitz Case Study Analysis



Analyses for Evaluating Elliot Lebowitz decision to launch Case Study Solution


The following section concentrates on the of marketing for Elliot Lebowitz where the company's consumers, rivals and core proficiencies have actually assessed in order to justify whether the choice to launch Case Study Help under Elliot Lebowitz brand would be a practical choice or not. We have actually firstly looked at the kind of customers that Elliot Lebowitz handle while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Elliot Lebowitz name.
Elliot Lebowitz Case Study Solution

Customer Analysis

Both the groups use Elliot Lebowitz high performance adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these client groups. 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 Elliot Lebowitz compared to that of instant adhesives.

The overall market for immediate adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Elliot Lebowitz possible market or consumer groups, we can see that the company offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and manufacturers dealing in products made from leather, plastic, metal and wood. This variety in consumers recommends that Elliot Lebowitz can target has various choices in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be requiring the exact same kind of product with respective modifications in amount, product packaging or demand. However, the consumer is not cost sensitive or brand conscious so releasing a low priced dispenser under Elliot Lebowitz name is not a recommended alternative.

Company Analysis

Elliot Lebowitz is not just a producer of adhesives but delights in market management in the immediate adhesive industry. The business has its own experienced and competent 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 production only as Elliot Lebowitz likewise specializes in making adhesive dispensing devices to help with making use of its items. This dual production strategy provides Elliot Lebowitz an edge over competitors considering that none of the rivals of giving devices makes instantaneous adhesives. Additionally, none of these competitors offers straight to the consumer either and makes use of suppliers for reaching out to consumers. While we are looking at the strengths of Elliot Lebowitz, it is crucial to highlight the business's weaknesses.

Although the business's sales staff is knowledgeable in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. However, it needs to likewise be kept in mind that the suppliers are showing unwillingness when it comes to selling equipment that needs maintenance which increases the obstacles of offering equipment under a specific brand.

If we take a look at Elliot Lebowitz product line in adhesive devices particularly, the company has items aimed at the high end of the market. If Elliot Lebowitz offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Elliot Lebowitz high-end line of product, sales cannibalization would certainly be impacting Elliot Lebowitz sales profits if the adhesive equipment is offered under the business's brand name.

We can see sales cannibalization affecting Elliot Lebowitz 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible threat which could decrease Elliot Lebowitz earnings. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

In addition, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or cost awareness which gives us two extra reasons for not introducing a low priced product under the business's brand name.

Competitor Analysis

The competitive environment of Elliot Lebowitz would be studied via 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 growth potential due to the presence of fragmented sectors with Elliot Lebowitz taking pleasure in leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While market competition in between these players could be called 'intense' as the consumer is not brand name mindful and each of these gamers has prominence in regards to market share, the fact still remains that the market is not saturated and still has several market sectors which can be targeted as potential niche markets even when releasing an adhesive. However, we can even explain the reality that sales cannibalization might be resulting in industry rivalry in the adhesive dispenser market while the market for instantaneous adhesives offers growth potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low knowledge about the product. While business like Elliot Lebowitz have actually handled to train suppliers concerning adhesives, the final customer depends on suppliers. Approximately 72% of sales are made straight by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by 3 players, it could be said that the supplier takes pleasure in a greater bargaining power compared to the purchaser. The reality stays that the supplier does not have much impact over the purchaser at this point particularly as the buyer does not reveal brand name recognition or rate sensitivity. This suggests that the supplier has the higher power when it pertains to the adhesive market while the manufacturer and the buyer do not have a significant control over the actual sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market indicates that the marketplace allows ease of entry. However, if we look at Elliot Lebowitz in particular, the business has double abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible risks in equipment dispensing market are low which shows the possibility of creating brand name awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has actually managed to position itself in dual abilities.

Threat of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact stays that if Elliot Lebowitz presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).


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

Elliot Lebowitz Case Study Help


Despite the fact that our 3C analysis has actually given numerous reasons for not releasing Case Study Help under Elliot Lebowitz name, we have actually a recommended marketing mix for Case Study Help offered below if Elliot Lebowitz decides to proceed with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an additional growth potential of 10.1% which may be a great enough niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality that the Diy market can likewise be targeted if a potable low priced adhesive is being offered for use with SuperBonder.

Price: The suggested cost 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 cost would not consist of the cost of the 'vari suggestion' or the 'glumetic tip'. A cost below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance shop requires to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the item for usage in their everyday upkeep jobs.

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

Place: A circulation design where Elliot Lebowitz straight sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Elliot Lebowitz. Considering that the sales team is currently taken part in selling immediate adhesives and they do not have proficiency in offering dispensers, including them in the selling procedure would be expensive particularly as each sales call costs roughly $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: Although a low marketing spending plan must have been appointed to Case Study Help however the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended advertising strategy costing $51816 is advised for initially introducing the product in the market. The planned ads in magazines would be targeted at mechanics in automobile upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Elliot Lebowitz Case Study Analysis

A recommended strategy of action in the kind of a marketing mix has been talked about for Case Study Help, the reality still remains that the product would not match Elliot Lebowitz product line. We take a look at appendix 2, we can see how the overall gross success for the two models is expected to be roughly $49377 if 250 units of each design are manufactured each year based on the plan. The preliminary prepared marketing is approximately $52000 per year which would be putting a pressure on the business's resources leaving Elliot Lebowitz with a negative net income if the costs are designated to Case Study Help just.

The fact that Elliot Lebowitz has actually already sustained an initial investment of $48000 in the form of capital cost and prototype development suggests that the earnings from Case Study Help is inadequate to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable option especially of it is affecting the sale of the business's revenue generating designs.



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