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Enron Gas Services Case Study Solution
Enron Gas Services Case Study Help
Enron Gas Services Case Study Analysis
The following section focuses on the of marketing for Enron Gas Services where the business's consumers, competitors and core proficiencies have evaluated in order to validate whether the decision to introduce Case Study Help under Enron Gas Services trademark name would be a practical alternative or not. We have first of all taken a look at the kind of clients that Enron Gas Services handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Enron Gas Services name.
Enron Gas Services customers can be segmented into 2 groups, final consumers and industrial consumers. Both the groups use Enron Gas Services high performance adhesives while the company is not only associated with the production of these adhesives but also markets them to these client groups. There are two kinds of products that are being offered to these prospective markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis because the marketplace for the latter has a lower potential for Enron Gas Services compared to that of immediate adhesives.
The total market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have been identified earlier.If we look at a breakdown of Enron Gas Services possible market or client groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and manufacturers handling products made of leather, plastic, wood and metal. This diversity in customers recommends that Enron Gas Services can target has numerous options in regards to segmenting the market for its brand-new product specifically as each of these groups would be needing the same kind of item with respective changes in product packaging, need or quantity. However, the client is not cost delicate or brand name conscious so launching a low priced dispenser under Enron Gas Services name is not an advised option.
Enron Gas Services is not just a manufacturer of adhesives but delights in market leadership in the instant adhesive industry. The business has its own skilled and qualified sales force which adds value to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Enron Gas Services believes in exclusive distribution as indicated by the fact that it has actually selected to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach by means of suppliers. The company's reach is not limited to The United States and Canada just as it also delights in international sales. With 1400 outlets spread all throughout North America, Enron Gas Services has its in-house production plants rather than utilizing out-sourcing as the favored method.
Core proficiencies are not restricted to adhesive manufacturing just as Enron Gas Services likewise concentrates on making adhesive giving devices to assist in the use of its products. This double production strategy offers Enron Gas Services an edge over rivals because none of the competitors of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors offers straight to the consumer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Enron Gas Services, it is crucial to highlight the company's weak points.
The business's sales personnel is skilled in training distributors, the truth remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. Nevertheless, it ought to also be noted that the distributors are showing hesitation when it comes to selling equipment that needs maintenance which increases the obstacles of selling devices under a particular brand.
The business has actually products intended at the high end of the market if we look at Enron Gas Services product line in adhesive equipment particularly. If Enron Gas Services offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Enron Gas Services high-end product line, sales cannibalization would absolutely be impacting Enron Gas Services sales profits if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization affecting Enron Gas Services 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible hazard which might decrease Enron Gas Services revenue. The reality that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good 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.
In addition, if we look at the market in general, the adhesives market does disappoint brand orientation or rate consciousness which offers us 2 extra factors for not releasing a low priced item under the company's brand name.
The competitive environment of Enron Gas Services would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the buyer has low knowledge about the item. While companies like Enron Gas Services have actually managed to train suppliers regarding adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by 3 gamers, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much impact over the buyer at this point particularly as the purchaser does not show brand recognition or cost sensitivity. This shows that the distributor has the greater power when it comes to the adhesive market while the buyer and the maker do not have a major control over the actual sales.
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 shows that the marketplace allows ease of entry. Nevertheless, if we look at Enron Gas Services in particular, the company has dual abilities in regards to being a producer of instantaneous adhesives and adhesive dispensers. Potential threats in devices dispensing industry are low which reveals the possibility of developing brand name awareness in not only instant adhesives but likewise in giving adhesives as none of the market players has handled to position itself in dual abilities.
Danger of Substitutes: The threat of substitutes in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Enron Gas Services presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered numerous factors for not launching Case Study Help under Enron Gas Services name, we have a recommended marketing mix for Case Study Help given listed below if Enron Gas Services chooses to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra growth potential of 10.1% which might be an excellent adequate specific niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance shop requires to acquire the product on his own.
Enron Gas Services would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Enron Gas Services for releasing Case Study Help.
Place: A circulation model where Enron Gas Services straight sends the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Enron Gas Services. Since the sales team is already participated in selling instantaneous adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be expensive particularly as each sales call costs around $120. The distributors are already offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low advertising budget should have been appointed to Case Study Help however the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is suggested for initially presenting the product in the market. The prepared ads in publications would be targeted at mechanics in car upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
