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Empire Glass Co B Case Study Help Checklist

Empire Glass Co B Case Study Help Checklist

Empire Glass Co B Case Study Solution
Empire Glass Co B Case Study Help
Empire Glass Co B Case Study Analysis



Analyses for Evaluating Empire Glass Co B decision to launch Case Study Solution


The following area concentrates on the of marketing for Empire Glass Co B where the business's customers, rivals and core competencies have actually evaluated in order to justify whether the choice to introduce Case Study Help under Empire Glass Co B trademark name would be a possible alternative or not. We have firstly looked at the kind of clients that Empire Glass Co B handle while an evaluation 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 Empire Glass Co B name.
Empire Glass Co B Case Study Solution

Customer Analysis

Both the groups use Empire Glass Co B high efficiency adhesives while the company is not only included in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Empire Glass Co B compared to that of instant adhesives.

The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Empire Glass Co B possible market or consumer groups, we can see that the company sells to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and producers handling items made of leather, wood, plastic and metal. This diversity in customers recommends that Empire Glass Co B can target has various alternatives in terms of segmenting the marketplace for its new product specifically as each of these groups would be needing the very same kind of item with respective modifications in packaging, need or amount. The client is not cost sensitive or brand name conscious so releasing a low priced dispenser under Empire Glass Co B name is not a suggested option.

Company Analysis

Empire Glass Co B is not simply a producer of adhesives but delights in market management in the instant adhesive market. The company has its own knowledgeable and certified sales force which adds worth to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not restricted to adhesive manufacturing just as Empire Glass Co B also focuses on making adhesive dispensing devices to assist in the use of its products. This double production method provides Empire Glass Co B an edge over competitors since none of the competitors of giving devices makes instant adhesives. In addition, none of these rivals sells directly to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Empire Glass Co B, it is necessary to highlight the business's weak points also.

Although the business's sales staff is knowledgeable in training distributors, the fact stays that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It needs to likewise be kept in mind that the distributors are revealing unwillingness when it comes to offering devices that needs servicing which increases the obstacles of selling devices under a specific brand name.

The business has products intended at the high end of the market if we look at Empire Glass Co B item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Empire Glass Co B sells Case Study Help under the same portfolio. Provided the reality that Case Study Help is priced lower than Empire Glass Co B high-end line of product, sales cannibalization would absolutely be impacting Empire Glass Co B sales revenue if the adhesive devices is offered under the company's brand name.

We can see sales cannibalization impacting Empire Glass Co B 27A Pencil Applicator which is priced at $275. There is another possible threat which might lower Empire Glass Co B income if Case Study Help is released under the company's brand name. The truth that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for releasing 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 market in general, the adhesives market does disappoint brand name orientation or price awareness which provides us 2 additional factors for not launching a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Empire Glass Co B would be studied via 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 growth capacity due to the presence of fragmented segments with Empire Glass Co B delighting in leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry competition between these players could be called 'extreme' as the consumer is not brand conscious and each of these players has prominence in terms of market share, the fact still stays that the industry is not filled and still has several market sectors which can be targeted as prospective specific niche markets even when launching an adhesive. However, we can even point out the truth that sales cannibalization might be resulting in industry rivalry in the adhesive dispenser market while the market for instantaneous adhesives offers development capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the buyer has low knowledge about the product. While business like Empire Glass Co B have actually managed to train suppliers relating to adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. However, the reality stays that the provider does not have much influence over the purchaser at this moment especially as the buyer does disappoint brand name recognition or price sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the real sales, this suggests that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market shows that the marketplace permits ease of entry. However, if we take a look at Empire Glass Co B in particular, the business has dual abilities in terms of being a producer of instant adhesives and adhesive dispensers. Possible risks in devices dispensing market are low which shows the possibility of producing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the market players has managed to position itself in dual abilities.

Risk of Substitutes: The hazard of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality stays that if Empire Glass Co B introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).


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

Empire Glass Co B Case Study Help


Despite the fact that our 3C analysis has offered various factors for not releasing Case Study Help under Empire Glass Co B name, we have actually a suggested marketing mix for Case Study Help offered listed below if Empire Glass Co B chooses to proceed with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of factors. This market has an extra growth potential of 10.1% which may be an excellent enough niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This rate would not include the expense of the 'vari pointer' or the 'glumetic tip'. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to acquire the item on his own. This would increase the possibility of affecting mechanics to buy the product for use in their everyday upkeep jobs.

Empire Glass Co B would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Empire Glass Co B for releasing Case Study Help.

Place: A distribution design where Empire Glass Co B straight sends the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Empire Glass Co B. Given that the sales team is already participated in offering immediate adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be expensive particularly as each sales call expenses approximately $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: A low advertising spending plan ought to have been designated to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is advised for at first presenting the product in the market. The planned ads in publications would be targeted at mechanics in lorry maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Empire Glass Co B Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has been gone over for Case Study Help, the reality still stays that the product would not match Empire Glass Co B line of product. We take a look at appendix 2, we can see how the overall gross success for the two models is anticipated to be around $49377 if 250 systems of each model are produced each year as per the plan. The preliminary prepared marketing is approximately $52000 per year which would be putting a strain on the company's resources leaving Empire Glass Co B with a negative net earnings if the expenses are allocated to Case Study Help just.

The reality that Empire Glass Co B has already incurred a preliminary investment of $48000 in the form of capital expense and prototype development suggests that the income from Case Study Help is inadequate to carry out the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a more suitable choice particularly of it is affecting the sale of the business's profits producing designs.



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