Enzone Petroleum Corp Case Study Help Checklist

Enzone Petroleum Corp Case Study Help Checklist

Enzone Petroleum Corp Case Study Solution
Enzone Petroleum Corp Case Study Help
Enzone Petroleum Corp Case Study Analysis

Analyses for Evaluating Enzone Petroleum Corp decision to launch Case Study Solution

The following area focuses on the of marketing for Enzone Petroleum Corp where the company's consumers, rivals and core competencies have evaluated in order to validate whether the choice to introduce Case Study Help under Enzone Petroleum Corp trademark name would be a practical alternative or not. We have actually firstly looked at the type of clients that Enzone Petroleum Corp handle while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Enzone Petroleum Corp name.
Enzone Petroleum Corp Case Study Solution

Customer Analysis

Both the groups utilize Enzone Petroleum Corp high performance adhesives while the business is not just included in the production of these adhesives but also markets them to these customer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Enzone Petroleum Corp 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 consumer groups which have been identified earlier.If we look at a breakdown of Enzone Petroleum Corp potential market or customer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair and overhauling business (MRO) and makers dealing in items made of leather, wood, plastic and metal. This variety in consumers suggests that Enzone Petroleum Corp can target has various options in terms of segmenting the marketplace for its new item especially as each of these groups would be needing the exact same type of item with particular modifications in quantity, need or product packaging. The client is not rate delicate or brand name conscious so launching a low priced dispenser under Enzone Petroleum Corp name is not an advised option.

Company Analysis

Enzone Petroleum Corp is not just a manufacturer of adhesives however takes pleasure in market management in the immediate adhesive market. The company has its own proficient and competent sales force which includes worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core competences are not restricted to adhesive manufacturing only as Enzone Petroleum Corp likewise specializes in making adhesive giving equipment to facilitate the use of its items. This double production method provides Enzone Petroleum Corp an edge over competitors because none of the rivals of dispensing devices makes instant adhesives. Additionally, none of these rivals sells straight to the consumer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Enzone Petroleum Corp, it is important to highlight the business's weak points.

Although the business's sales staff is competent in training distributors, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It should also be noted that the suppliers are showing reluctance when it comes to selling equipment that requires servicing which increases the challenges of offering devices under a particular brand name.

If we look at Enzone Petroleum Corp line of product in adhesive devices particularly, the company has items targeted at the luxury of the market. The possibility of sales cannibalization exists if Enzone Petroleum Corp sells Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Enzone Petroleum Corp high-end line of product, sales cannibalization would certainly be impacting Enzone Petroleum Corp sales profits if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization impacting Enzone Petroleum Corp 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible risk which could lower Enzone Petroleum Corp revenue. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for releasing 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.

Furthermore, if we look at the market in general, the adhesives market does not show brand name orientation or cost awareness which gives us 2 additional reasons for not introducing a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Enzone Petroleum Corp would be studied through 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 existence of fragmented sectors with Enzone Petroleum Corp delighting in management and a combined market share of 75% with two other market players, Eastman and Permabond. While market rivalry in between these players could be called 'extreme' as the consumer is not brand mindful and each of these players has prominence in regards to market share, the fact still stays that the industry is not saturated and still has several market sections which can be targeted as possible niche markets even when introducing an adhesive. However, we can even mention the truth that sales cannibalization might be causing industry rivalry in the adhesive dispenser market while the marketplace for instant adhesives provides growth potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the purchaser has low knowledge about the item. While companies like Enzone Petroleum Corp have actually managed to train distributors relating to adhesives, the final customer is dependent on distributors. Around 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 gamers, it could be stated that the supplier delights in a greater bargaining power compared to the purchaser. However, the reality remains that the provider does not have much influence over the buyer at this point specifically as the purchaser does disappoint brand name recognition or rate sensitivity. This indicates that the distributor has the higher power when it concerns the adhesive market while the maker and the purchaser do not have a significant control over the actual sales.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market indicates that the market allows ease of entry. If we look at Enzone Petroleum Corp in specific, the business has double abilities in terms of being a maker of instant adhesives and adhesive dispensers. Prospective threats in devices dispensing market are low which shows the possibility of creating brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the market players has handled to place itself in dual abilities.

Hazard of Substitutes: The risk of alternatives in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The reality remains that if Enzone Petroleum Corp 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

Enzone Petroleum Corp Case Study Help

Despite the fact that our 3C analysis has provided different factors for not launching Case Study Help under Enzone Petroleum Corp name, we have actually a suggested marketing mix for Case Study Help offered below if Enzone Petroleum Corp chooses to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional development potential of 10.1% which may be an excellent adequate niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Diy market can likewise be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder.

Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to buy the product on his own.

Enzone Petroleum Corp would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Enzone Petroleum Corp for releasing Case Study Help.

Place: A circulation model where Enzone Petroleum Corp straight sends the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Enzone Petroleum Corp. Because the sales group is currently taken part in offering instantaneous adhesives and they do not have competence in selling dispensers, involving them in the selling process would be costly especially as each sales call expenses around $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial choice.

Promotion: A low advertising spending plan needs to have been appointed 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 suggested marketing strategy costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in lorry maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Enzone Petroleum Corp Case Study Analysis

A suggested plan of action in the type of a marketing mix has been gone over for Case Study Help, the fact still stays that the item would not complement Enzone Petroleum Corp product line. We take a look at appendix 2, we can see how the total gross success for the two designs is anticipated to be approximately $49377 if 250 systems of each design are produced per year based on the strategy. However, the initial planned marketing is roughly $52000 per year which would be putting a pressure on the business's resources leaving Enzone Petroleum Corp with a negative net income if the costs are designated to Case Study Help only.

The fact that Enzone Petroleum Corp has already incurred a preliminary financial investment of $48000 in the form of capital cost and model development suggests that the revenue from Case Study Help is not enough 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 need is not a more effective alternative particularly of it is impacting the sale of the company's revenue producing models.