Fail Safe Testing Inc Case Study Help Checklist

Fail Safe Testing Inc Case Study Help Checklist

Fail Safe Testing Inc Case Study Solution
Fail Safe Testing Inc Case Study Help
Fail Safe Testing Inc Case Study Analysis

Analyses for Evaluating Fail Safe Testing Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Fail Safe Testing Inc where the business's consumers, rivals and core competencies have examined in order to validate whether the decision to release Case Study Help under Fail Safe Testing Inc brand name would be a possible choice or not. We have actually first of all looked at the kind of consumers that Fail Safe Testing Inc handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Fail Safe Testing Inc name.
Fail Safe Testing Inc Case Study Solution

Customer Analysis

Fail Safe Testing Inc clients can be segmented into 2 groups, final customers and industrial consumers. Both the groups use Fail Safe Testing Inc high performance adhesives while the business is not only involved in the production of these adhesives however likewise markets them to these consumer groups. There are 2 kinds of items that are being offered to these prospective markets; anaerobic adhesives and instant adhesives. We would be concentrating on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Fail Safe Testing Inc compared to that of instant adhesives.

The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Fail Safe Testing Inc possible market or customer groups, we can see that the company offers to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and manufacturers handling products made of leather, wood, metal and plastic. This variety in consumers suggests that Fail Safe Testing Inc can target has numerous choices in regards to segmenting the market for its brand-new product especially as each of these groups would be needing the exact same kind of item with particular changes in amount, packaging or need. Nevertheless, the customer is not rate sensitive or brand name conscious so launching a low priced dispenser under Fail Safe Testing Inc name is not a suggested choice.

Company Analysis

Fail Safe Testing Inc is not just a producer of adhesives however enjoys market leadership in the instant adhesive market. The company has its own competent and competent sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Fail Safe Testing Inc believes in special distribution as suggested by the truth that it has actually selected to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach via distributors. The company's reach is not limited to North America only as it also takes pleasure in worldwide sales. With 1400 outlets spread all throughout North America, Fail Safe Testing Inc has its internal production plants rather than utilizing out-sourcing as the favored strategy.

Core competences are not limited to adhesive production only as Fail Safe Testing Inc also specializes in making adhesive dispensing equipment to assist in making use of its items. This dual production method provides Fail Safe Testing Inc an edge over competitors considering that none of the rivals of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors offers straight to the consumer either and uses distributors for reaching out to consumers. While we are looking at the strengths of Fail Safe Testing Inc, it is crucial to highlight the company's weaknesses.

Although the company's sales staff is knowledgeable in training suppliers, the fact stays that the sales group is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it should also be kept in mind that the suppliers are showing hesitation when it pertains to offering devices that requires servicing which increases the challenges of offering equipment under a specific brand name.

If we take a look at Fail Safe Testing Inc product line in adhesive devices particularly, the business has items targeted at the high end of the marketplace. The possibility of sales cannibalization exists if Fail Safe Testing Inc offers Case Study Help under the same portfolio. Offered the fact that Case Study Help is priced lower than Fail Safe Testing Inc high-end line of product, sales cannibalization would definitely be impacting Fail Safe Testing Inc sales earnings if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization affecting Fail Safe Testing Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which could decrease Fail Safe Testing Inc revenue if Case Study Help is launched under the company's trademark name. The reality that $175000 has actually been invested in promoting SuperBonder recommends 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.

In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or cost awareness which provides us two extra factors for not launching a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Fail Safe Testing Inc would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the presence of fragmented segments with Fail Safe Testing Inc delighting in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While market competition between these players could be called 'extreme' as the customer is not brand mindful and each of these gamers has prominence in regards to market share, the truth still remains that the industry is not saturated and still has a number of market sectors which can be targeted as possible niche markets even when introducing an adhesive. We can even point out the fact that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for instant adhesives offers growth capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the purchaser has low understanding about the item. While companies like Fail Safe Testing Inc have handled to train distributors regarding adhesives, the final consumer depends on suppliers. Roughly 72% of sales are made directly by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by 3 players, it could be said that the provider delights in a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much impact over the buyer at this point particularly as the buyer does not reveal brand name acknowledgment or price level of 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 name commitment and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market suggests that the market allows ease of entry. If we look at Fail Safe Testing Inc in specific, the company has double capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential dangers in devices giving industry are low which shows the possibility of producing brand awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry gamers has managed to place itself in dual abilities.

Risk of Substitutes: The risk of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Fail Safe Testing Inc introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).

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

Fail Safe Testing Inc Case Study Help

Despite the fact that our 3C analysis has actually provided numerous reasons for not launching Case Study Help under Fail Safe Testing Inc name, we have a suggested marketing mix for Case Study Help provided below if Fail Safe Testing Inc decides to go on 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 establishments in this segment and a high usage of around 58900 pounds. is being used by 36.1 % of the marketplace. This market has an extra growth potential of 10.1% which might be a good enough specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder. The product would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wants to opt for either of the two devices or not.

Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to purchase the item on his own.

Fail Safe Testing Inc would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Fail Safe Testing Inc for introducing Case Study Help.

Place: A distribution model where Fail Safe Testing Inc directly sends the product to the local distributor and keeps a 10% drop shipment allowance for the supplier would be used by Fail Safe Testing Inc. Considering that the sales team is already engaged in selling instant adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be costly specifically as each sales call costs approximately $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: Although a low promotional budget 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 expenses incurred for production, the recommended advertising strategy costing $51816 is recommended for at first presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in car upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Fail Safe Testing Inc Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been gone over for Case Study Help, the fact still stays that the item would not complement Fail Safe Testing Inc product line. We have a look at appendix 2, we can see how the total gross profitability for the two designs is expected to be approximately $49377 if 250 systems of each model are manufactured each year according to the strategy. The preliminary prepared advertising is around $52000 per year which would be putting a strain on the business's resources leaving Fail Safe Testing Inc with an unfavorable net earnings if the expenditures are assigned to Case Study Help just.

The reality that Fail Safe Testing Inc has already incurred a preliminary financial investment of $48000 in the form of capital cost and model development shows that the revenue from Case Study Help is inadequate to carry out the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low elasticity of need is not a more suitable option especially of it is affecting the sale of the business's revenue producing models.