The following section concentrates on the of marketing for First National Banks Golden Opportunity where the business's customers, competitors and core proficiencies have examined in order to justify whether the decision to release Case Study Help under First National Banks Golden Opportunity brand name would be a possible choice or not. We have actually firstly looked at the kind of customers that First National Banks Golden Opportunity 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 First National Banks Golden Opportunity name.
Both the groups use First National Banks Golden Opportunity high efficiency adhesives while the company is not only included in the production of these adhesives but also markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for First National Banks Golden Opportunity compared to that of instant adhesives.
The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of First National Banks Golden Opportunity potential market or client groups, we can see that the business offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair and revamping business (MRO) and producers handling products made from leather, metal, wood and plastic. This variety in customers recommends that First National Banks Golden Opportunity can target has numerous options in regards to segmenting the market for its new product especially as each of these groups would be requiring the same kind of product with particular changes in product packaging, need or quantity. However, the customer is not price delicate or brand conscious so introducing a low priced dispenser under First National Banks Golden Opportunity name is not a recommended option.
First National Banks Golden Opportunity is not just a maker of adhesives however enjoys market management in the instant adhesive industry. 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 assisting in the sale of adhesives.
Core skills are not limited to adhesive manufacturing just as First National Banks Golden Opportunity likewise concentrates on making adhesive giving devices to facilitate using its products. This double production strategy gives First National Banks Golden Opportunity an edge over competitors considering that none of the rivals of giving equipment makes instant adhesives. Furthermore, none of these competitors offers directly to the customer either and makes use of distributors for reaching out to consumers. While we are looking at the strengths of First National Banks Golden Opportunity, it is essential to highlight the business's weaknesses as well.
The company's sales personnel is competent in training suppliers, the fact remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It needs to also be noted that the suppliers are revealing hesitation when it comes to selling equipment that needs servicing which increases the obstacles of selling equipment under a specific brand name.
If we look at First National Banks Golden Opportunity line of product in adhesive equipment particularly, the business has actually items aimed at the high end of the market. The possibility of sales cannibalization exists if First National Banks Golden Opportunity sells Case Study Help under the very same portfolio. Offered the reality that Case Study Help is priced lower than First National Banks Golden Opportunity high-end product line, sales cannibalization would certainly be impacting First National Banks Golden Opportunity sales profits if the adhesive equipment is sold under the business's trademark name.
We can see sales cannibalization affecting First National Banks Golden Opportunity 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease First National Banks Golden Opportunity revenue if Case Study Help is released under the company's brand. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the reality 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 gives us 2 extra reasons for not introducing a low priced product under the business's brand name.
The competitive environment of First National Banks Golden Opportunity would be studied via 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 market is low particularly as the buyer has low knowledge about the product. While business like First National Banks Golden Opportunity have actually handled to train suppliers relating to adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three players, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the purchaser. The reality stays that the supplier does not have much impact over the purchaser at this point particularly as the buyer does not show brand name recognition or cost sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales, this indicates 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 First National Banks Golden Opportunity in particular, the company has double capabilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Prospective risks in equipment dispensing market are low which reveals the possibility of producing brand awareness in not just instantaneous adhesives but also in giving adhesives as none of the industry players has actually handled to place itself in double capabilities.
Hazard of Substitutes: The danger of alternatives in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The fact stays that if First National Banks Golden Opportunity introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided various factors for not introducing Case Study Help under First National Banks Golden Opportunity name, we have a recommended marketing mix for Case Study Help provided listed below if First National Banks Golden Opportunity decides to proceed with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a number of factors. There are currently 89257 facilities in this sector and a high usage of roughly 58900 lbs. is being utilized by 36.1 % of the market. This market has an additional development potential of 10.1% which may 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 reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wishes to select either of the two accessories or not.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance shop requires to buy the product on his own.
First National Banks Golden Opportunity would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net profitability for First National Banks Golden Opportunity for releasing Case Study Help.
Place: A circulation design where First National Banks Golden Opportunity directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the distributor would be used by First National Banks Golden Opportunity. Because the sales group is currently taken part in selling instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be pricey especially as each sales call costs approximately $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget ought to have been assigned to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is advised for at first introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).