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Eskimo Pie Corp Case Study Help Checklist

Eskimo Pie Corp Case Study Help Checklist

Eskimo Pie Corp Case Study Solution
Eskimo Pie Corp Case Study Help
Eskimo Pie Corp Case Study Analysis



3 C Analyses for Evaluating Eskimo Pie Corp decision to launch Case Study Solution


The following section concentrates on the 3Cs of marketing for Eskimo Pie Corp where the company's clients, competitors and core competencies have examined in order to validate whether the decision to launch Case Study Help under Eskimo Pie Corp brand would be a feasible alternative or not. We have actually firstly looked at the kind of consumers that Eskimo Pie Corp deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Eskimo Pie Corp name.
Eskimo Pie Corp Case Study Solution

Customer Analysis

Both the groups utilize Eskimo Pie Corp high efficiency adhesives while the business is not only involved in the production of these adhesives however also markets them to these client groups. We would be focusing on the consumers of instant adhesives for this analysis considering that the market for the latter has a lower capacity for Eskimo Pie Corp compared to that of instantaneous adhesives.

The overall market for instant adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have been determined earlier.If we take a look at a breakdown of Eskimo Pie Corp possible market or consumer groups, we can see that the company sells to OEMs (Original Devices Makers), Do-it-Yourself customers, repair and upgrading business (MRO) and makers handling products made of leather, plastic, wood and metal. This diversity in clients suggests that Eskimo Pie Corp can target has different choices in terms of segmenting the market for its new item especially as each of these groups would be needing the same kind of product with particular changes in amount, packaging or demand. The consumer is not cost sensitive or brand name conscious so releasing a low priced dispenser under Eskimo Pie Corp name is not a recommended choice.

Company Analysis

Eskimo Pie Corp is not simply a producer of adhesives however takes pleasure in market management in the instantaneous adhesive industry. The company has its own competent and qualified sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Eskimo Pie Corp believes in exclusive distribution as indicated by the fact that it has actually picked to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for broadening reach through distributors. The business's reach is not restricted to North America just as it likewise delights in worldwide sales. With 1400 outlets spread all throughout North America, Eskimo Pie Corp has its in-house production plants instead of utilizing out-sourcing as the preferred method.

Core skills are not limited to adhesive production just as Eskimo Pie Corp likewise specializes in making adhesive dispensing equipment to facilitate using its products. This dual production strategy offers Eskimo Pie Corp an edge over rivals because none of the competitors of giving equipment makes instantaneous adhesives. Furthermore, none of these competitors sells directly to the customer either and uses suppliers for connecting to clients. While we are taking a look at the strengths of Eskimo Pie Corp, it is important to highlight the company's weaknesses as well.

The company's sales staff is skilled in training distributors, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. Nevertheless, it ought to likewise be kept in mind that the distributors are showing unwillingness when it concerns offering equipment that requires maintenance which increases the obstacles of offering devices under a particular brand name.

If we look at Eskimo Pie Corp product line in adhesive devices particularly, the company has actually items aimed at the high end of the marketplace. If Eskimo Pie Corp sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Eskimo Pie Corp high-end product line, sales cannibalization would absolutely be affecting Eskimo Pie Corp sales profits if the adhesive equipment is sold under the company's brand name.

We can see sales cannibalization affecting Eskimo Pie 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 danger which might decrease Eskimo Pie Corp earnings. The truth that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for introducing 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 take a look at the market in general, the adhesives market does not show brand name orientation or rate awareness which offers us two additional reasons for not releasing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Eskimo Pie Corp would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development potential due to the existence of fragmented sections with Eskimo Pie Corp taking pleasure in management and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While industry rivalry between these gamers could be called 'intense' as the consumer is not brand name mindful and each of these players has prominence in regards to market share, the truth still remains that the market is not filled and still has several market sectors which can be targeted as possible niche markets even when introducing an adhesive. Nevertheless, we can even mention the reality that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instant adhesives uses development capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low understanding about the item. While business like Eskimo Pie Corp have handled to train distributors relating to adhesives, the final customer is dependent on distributors. Approximately 72% of sales are made straight by manufacturers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three gamers, it could be said that the supplier takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the reality remains that the provider does not have much influence over the buyer at this point particularly as the buyer does disappoint brand recognition or cost sensitivity. This suggests that the supplier has the higher power when it concerns the adhesive market while the purchaser and the manufacturer 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 revealed by foreign Japanese competitors in the instant adhesive market suggests that the market allows ease of entry. Nevertheless, if we look at Eskimo Pie Corp in particular, the company has double abilities in regards to being a maker of instant adhesives and adhesive dispensers. Prospective risks in equipment dispensing industry are low which reveals the possibility of developing brand name awareness in not just immediate adhesives but likewise in dispensing adhesives as none of the market players has handled to position itself in double abilities.

Hazard of Substitutes: The hazard of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact stays that if Eskimo Pie Corp introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Eskimo Pie Corp Case Study Help


Despite the fact that our 3C analysis has actually offered numerous reasons for not releasing Case Study Help under Eskimo Pie Corp name, we have a suggested marketing mix for Case Study Help given listed below if Eskimo Pie Corp decides to proceed with the launch.

Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this sector and a high usage of around 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an additional development potential of 10.1% which might be a sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the reality that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic idea' and 'vari-drop' so that the consumer can decide whether he wants to choose either of the two devices or not.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance store requires to purchase the product on his own.

Eskimo Pie Corp would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net profitability for Eskimo Pie Corp for introducing Case Study Help.

Place: A distribution model where Eskimo Pie Corp directly sends out the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Eskimo Pie Corp. Since the sales team is currently taken part in selling immediate adhesives and they do not have expertise in selling dispensers, involving them in the selling process would be expensive particularly as each sales call expenses roughly $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial choice.

Promotion: A low marketing budget needs to have been assigned to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is recommended for initially introducing the product in the market. The planned ads in publications would be targeted at mechanics in car upkeep 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
Eskimo Pie Corp Case Study Analysis

Although a recommended strategy in the form of a marketing mix has actually been gone over for Case Study Help, the truth still stays that the item would not match Eskimo Pie Corp product line. We take a look at appendix 2, we can see how the overall gross success for the two designs is anticipated to be around $49377 if 250 units of each design are manufactured annually according to the strategy. However, the initial planned marketing is approximately $52000 each year which would be putting a pressure on the company's resources leaving Eskimo Pie Corp with a negative net income if the expenses are allocated to Case Study Help only.

The reality that Eskimo Pie Corp has currently sustained a preliminary financial investment of $48000 in the form of capital expense and prototype development suggests that the revenue from Case Study Help is inadequate to carry out the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of need is not a more suitable choice especially of it is impacting the sale of the company's profits creating designs.



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