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Empire Glass Co B Case Study Solution
Empire Glass Co B Case Study Help
Empire Glass Co B Case Study Analysis
The following area focuses on the of marketing for Empire Glass Co B where the company's customers, competitors and core proficiencies have assessed in order to justify whether the choice to introduce Case Study Help under Empire Glass Co B brand would be a possible choice or not. We have actually first of all looked at the type of customers that Empire Glass Co B deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Empire Glass Co B name.
Both the groups utilize Empire Glass Co B high performance 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 customers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Empire Glass Co B compared to that of immediate adhesives.
The overall market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have actually been recognized earlier.If we look at a breakdown of Empire Glass Co B prospective market or consumer groups, we can see that the business offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and makers handling items made of leather, metal, wood and plastic. This variety in customers recommends that Empire Glass Co B can target has numerous choices in regards to segmenting the market for its brand-new product especially as each of these groups would be requiring the very same kind of product with particular changes in need, quantity or packaging. However, the customer is not price sensitive or brand conscious so launching a low priced dispenser under Empire Glass Co B name is not an advised option.
Empire Glass Co B is not just a manufacturer of adhesives however enjoys market management in the immediate adhesive market. The company has its own knowledgeable and competent sales force which includes value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives. Empire Glass Co B believes in unique circulation as indicated by the reality that it has chosen to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for expanding reach through distributors. The company's reach is not restricted to North America only as it also delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Empire Glass Co B has its internal production plants instead of utilizing out-sourcing as the favored technique.
Core competences are not restricted to adhesive production only as Empire Glass Co B likewise focuses on making adhesive dispensing devices to help with using its products. This double production strategy offers Empire Glass Co B an edge over rivals given that none of the competitors of dispensing equipment makes immediate adhesives. Furthermore, none of these rivals offers directly to the customer either and uses distributors for reaching out to consumers. While we are taking a look at the strengths of Empire Glass Co B, it is important to highlight the business's weaknesses too.
Although the business's sales staff is skilled in training distributors, the fact remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It ought to also be kept in mind that the suppliers are revealing unwillingness when it comes to offering equipment that requires servicing which increases the obstacles of selling equipment under a specific brand name.
If we take a look at Empire Glass Co B product line in adhesive equipment especially, the business has products focused on the luxury of the market. If Empire Glass Co B offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Empire Glass Co B high-end line of product, sales cannibalization would certainly be impacting Empire Glass Co B sales earnings if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization impacting Empire Glass Co B 27A Pencil Applicator which is priced at $275. There is another possible hazard which might decrease Empire Glass Co B profits if Case Study Help is introduced under the company's brand name. The fact that $175000 has 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 instant adhesive.
Additionally, if we take a look at the market in general, the adhesives market does not show brand orientation or cost consciousness which gives us two additional reasons for not launching a low priced item under the company's brand name.
The competitive environment of Empire Glass Co B would be studied through Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the buyer has low knowledge about the product. While business like Empire Glass Co B have actually managed to train suppliers regarding adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by 3 gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the buyer. Nevertheless, the reality remains that the supplier does not have much impact over the buyer at this point particularly as the purchaser does not show brand acknowledgment or price level of sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a major control over the actual sales, this shows that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market indicates that the market enables ease of entry. Nevertheless, if we look at Empire Glass Co B in particular, the business has dual abilities in regards to being a manufacturer of instantaneous adhesives and adhesive dispensers. Prospective risks in devices giving market are low which reveals the possibility of developing brand name awareness in not just immediate adhesives however also in giving adhesives as none of the market players has actually managed to position itself in double capabilities.
Threat of Substitutes: The hazard of substitutes in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact stays that if Empire Glass Co B presented 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 provided numerous factors for not launching Case Study Help under Empire Glass Co B name, we have actually a recommended marketing mix for Case Study Help offered listed below if Empire Glass Co B chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra growth potential of 10.1% which may be a good enough specific niche market section 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 also be targeted if a potable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold 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 car maintenance shop needs to purchase the product on his own.
Empire Glass Co B would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Empire Glass Co B for introducing Case Study Help.
Place: A circulation model where Empire Glass Co B straight sends the product to the local supplier and keeps a 10% drop delivery allowance for the supplier would be used by Empire Glass Co B. Given that the sales group is already engaged in selling immediate adhesives and they do not have knowledge in offering dispensers, including them in the selling procedure would be costly particularly as each sales call expenses roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low marketing budget plan needs to have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is advised for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
