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Elliot Lebowitz Case Study Solution
Elliot Lebowitz Case Study Help
Elliot Lebowitz Case Study Analysis
The following section focuses on the of marketing for Elliot Lebowitz where the company's customers, competitors and core proficiencies have actually evaluated in order to justify whether the decision to launch Case Study Help under Elliot Lebowitz brand would be a feasible choice or not. We have actually firstly looked at the kind of customers that Elliot Lebowitz deals in while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Elliot Lebowitz name.
Elliot Lebowitz consumers can be segmented into 2 groups, last customers and commercial customers. Both the groups utilize Elliot Lebowitz high performance adhesives while the business is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 types of products that are being offered to these possible markets; anaerobic adhesives and instant adhesives. We would be concentrating 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 instantaneous adhesives.
The overall market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Elliot Lebowitz possible market or client groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair and overhauling companies (MRO) and producers dealing in products made from leather, plastic, metal and wood. This diversity in consumers suggests that Elliot Lebowitz can target has different options in terms of segmenting the market for its brand-new item particularly as each of these groups would be needing the very same kind of product with particular changes in packaging, quantity or need. Nevertheless, the client is not rate sensitive or brand name mindful so introducing a low priced dispenser under Elliot Lebowitz name is not a recommended alternative.
Elliot Lebowitz is not simply a producer of adhesives but enjoys market leadership in the immediate adhesive industry. The company has its own proficient and competent sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.
Core skills are not restricted to adhesive production only as Elliot Lebowitz likewise focuses on making adhesive giving devices to help with the use of its items. This dual production method provides Elliot Lebowitz an edge over competitors since none of the rivals of giving devices makes instant adhesives. Additionally, none of these rivals offers straight to the customer either and makes use of distributors for connecting to consumers. While we are taking a look at the strengths of Elliot Lebowitz, it is very important to highlight the business's weak points as well.
Although the business's sales personnel is proficient in training distributors, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it must likewise be noted that the suppliers are showing reluctance when it comes to selling equipment that needs maintenance which increases the challenges of offering equipment under a particular trademark name.
If we look at Elliot Lebowitz line of product in adhesive equipment particularly, the business has actually items targeted at the high end of the market. The possibility of sales cannibalization exists if Elliot Lebowitz offers Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Elliot Lebowitz high-end line of product, sales cannibalization would certainly be impacting Elliot Lebowitz sales earnings if the adhesive devices is sold under the business's brand name.
We can see sales cannibalization impacting Elliot Lebowitz 27A Pencil Applicator which is priced at $275. There is another possible threat which might decrease Elliot Lebowitz revenue if Case Study Help is released under the company's brand. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for releasing 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.
In addition, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or rate awareness which gives us two extra factors for not launching a low priced item under the company's brand.
The competitive environment of Elliot Lebowitz would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low understanding about the product. While companies like Elliot Lebowitz have actually managed to train suppliers regarding adhesives, the last customer is dependent on distributors. Around 72% of sales are made directly by makers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by three gamers, it could be said that the supplier enjoys a higher bargaining power compared to the purchaser. However, the truth remains that the provider does not have much impact over the buyer at this point especially as the buyer does disappoint brand recognition or cost sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a significant control over the actual sales, this suggests that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instant adhesive market shows that the marketplace permits ease of entry. If we look at Elliot Lebowitz in particular, the company has double capabilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Potential hazards in devices giving industry are low which reveals the possibility of producing brand name awareness in not just instantaneous adhesives but also in giving adhesives as none of the industry gamers has handled to place itself in double capabilities.
Risk of Substitutes: The risk of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality remains that if Elliot Lebowitz presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided various factors for not releasing Case Study Help under Elliot Lebowitz name, we have actually a recommended marketing mix for Case Study Help given below if Elliot Lebowitz decides to proceed with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this section and a high use of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which may be a good enough niche market section for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the fact that the Diy market can also be targeted if a drinkable low priced adhesive is being cost usage with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can choose whether he wants to choose either of the two devices or not.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep store needs to buy the product on his own.
Elliot Lebowitz would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Elliot Lebowitz for introducing Case Study Help.
Place: A distribution design where Elliot Lebowitz straight sends the item to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Elliot Lebowitz. Given that the sales team is already engaged in offering instant adhesives and they do not have expertise in selling dispensers, including them in the selling process would be costly especially as each sales call expenses roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a favorable option.
Promotion: A low advertising spending plan should have been designated to Case Study Help but the fact 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 item in the market. The prepared advertisements 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).
