The following section focuses on the of marketing for Euroland Foods Sa where the company's consumers, competitors and core proficiencies have evaluated in order to justify whether the choice to launch Case Study Help under Euroland Foods Sa trademark name would be a possible choice or not. We have actually firstly looked at the type of clients that Euroland Foods Sa deals in while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Euroland Foods Sa name.
Euroland Foods Sa consumers can be segmented into two groups, last customers and commercial consumers. Both the groups use Euroland Foods Sa high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these customer groups. There are two kinds of products that are being offered to these possible markets; anaerobic adhesives and instant adhesives. We would be concentrating on the customers of immediate adhesives for this analysis given that the marketplace for the latter has a lower potential for Euroland Foods Sa compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Euroland Foods Sa possible market or consumer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself customers, repair work and overhauling business (MRO) and producers handling items made of leather, plastic, wood and metal. This diversity in clients suggests that Euroland Foods Sa can target has different choices in terms of segmenting the market for its new product specifically as each of these groups would be needing the very same kind of item with particular modifications in need, product packaging or quantity. Nevertheless, the customer is not price sensitive or brand mindful so releasing a low priced dispenser under Euroland Foods Sa name is not an advised choice.
Euroland Foods Sa is not simply a maker of adhesives however enjoys market leadership in the instantaneous adhesive market. The company has its own competent and qualified sales force which includes worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Euroland Foods Sa believes in exclusive circulation as shown by the truth that it has actually chosen to sell through 250 distributors whereas there is t a network of 10000 distributors that can be explored for expanding reach via distributors. The company's reach is not limited to North America just as it also enjoys global sales. With 1400 outlets spread all throughout The United States and Canada, Euroland Foods Sa has its internal production plants rather than using out-sourcing as the preferred method.
Core competences are not restricted to adhesive production only as Euroland Foods Sa also focuses on making adhesive giving devices to assist in using its items. This double production method offers Euroland Foods Sa an edge over rivals given that none of the rivals of giving equipment makes immediate adhesives. In addition, none of these competitors offers directly to the customer either and uses distributors for connecting to consumers. While we are taking a look at the strengths of Euroland Foods Sa, it is important to highlight the business's weaknesses too.
Although the business's sales staff is skilled in training suppliers, the truth remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it must also be kept in mind that the distributors are showing hesitation when it concerns offering equipment that needs maintenance which increases the challenges of offering devices under a particular trademark name.
If we look at Euroland Foods Sa line of product in adhesive equipment particularly, the business has actually items focused on the high-end of the market. If Euroland Foods Sa offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Euroland Foods Sa high-end product line, sales cannibalization would certainly be affecting Euroland Foods Sa sales profits if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization affecting Euroland Foods Sa 27A Pencil Applicator which is priced at $275. There is another possible risk which might reduce Euroland Foods Sa profits if Case Study Help is introduced under the company's brand name. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for introducing 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.
Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or price awareness which offers us 2 extra reasons for not releasing a low priced product under the company's brand name.
The competitive environment of Euroland Foods Sa would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low knowledge about the item. While business like Euroland Foods Sa have handled to train distributors relating to adhesives, the last customer depends on suppliers. Roughly 72% of sales are made straight by producers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by three players, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. However, the truth stays that the supplier does not have much impact over the buyer at this point especially as the buyer does disappoint brand recognition or price sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the real sales, this shows that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace allows ease of entry. Nevertheless, if we look at Euroland Foods Sa in particular, the company has double capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Possible dangers in equipment dispensing market are low which reveals the possibility of creating brand name awareness in not only instantaneous adhesives but also in giving adhesives as none of the industry players has actually handled to position itself in dual capabilities.
Risk of Substitutes: The threat of replacements in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth remains that if Euroland Foods Sa introduced 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 given various reasons for not introducing Case Study Help under Euroland Foods Sa name, we have actually a recommended marketing mix for Case Study Help provided below if Euroland Foods Sa 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 development potential of 10.1% which might be an excellent adequate niche market sector for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the truth 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 suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or through direct selling. This cost would not consist of the expense of the 'vari suggestion' or the 'glumetic suggestion'. A rate listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to acquire the product on his own. This would increase the possibility of influencing mechanics to acquire the item for usage in their day-to-day maintenance jobs.
Euroland Foods Sa would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Euroland Foods Sa for launching Case Study Help.
Place: A circulation model where Euroland Foods Sa directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Euroland Foods Sa. Because the sales group is currently engaged in selling instantaneous adhesives and they do not have expertise in selling dispensers, involving them in the selling procedure would be expensive particularly as each sales call expenses approximately $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low marketing budget must have been assigned to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended marketing plan costing $51816 is recommended for at first presenting the item in the market. The planned ads in publications would be targeted at mechanics in automobile upkeep stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).