Flagstar Cos Inc Case Study Help Checklist

Flagstar Cos Inc Case Study Help Checklist

Flagstar Cos Inc Case Study Solution
Flagstar Cos Inc Case Study Help
Flagstar Cos Inc Case Study Analysis

Analyses for Evaluating Flagstar Cos Inc decision to launch Case Study Solution

The following section focuses on the of marketing for Flagstar Cos Inc where the company's customers, competitors and core proficiencies have actually examined in order to validate whether the choice to release Case Study Help under Flagstar Cos Inc brand would be a feasible choice or not. We have actually first of all taken a look at the type of clients that Flagstar Cos Inc deals in while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Flagstar Cos Inc name.
Flagstar Cos Inc Case Study Solution

Customer Analysis

Both the groups use Flagstar Cos Inc 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 customers of instant adhesives for this analysis because the market for the latter has a lower potential for Flagstar Cos Inc compared to that of immediate adhesives.

The total market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have actually been determined earlier.If we look at a breakdown of Flagstar Cos Inc potential market or client groups, we can see that the business sells to OEMs (Original Devices Makers), Do-it-Yourself consumers, repair and overhauling business (MRO) and manufacturers handling items made of leather, wood, metal and plastic. This variety in clients suggests that Flagstar Cos Inc can target has numerous alternatives in regards to segmenting the marketplace for its brand-new item especially as each of these groups would be needing the same kind of item with respective modifications in packaging, quantity or need. Nevertheless, the customer is not price sensitive or brand mindful so launching a low priced dispenser under Flagstar Cos Inc name is not a recommended choice.

Company Analysis

Flagstar Cos Inc is not just a maker of adhesives but takes pleasure in market management in the instantaneous adhesive industry. The company has its own experienced and competent sales force which includes value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.

Core proficiencies are not restricted to adhesive production just as Flagstar Cos Inc also focuses on making adhesive giving equipment to facilitate making use of its products. This dual production method gives Flagstar Cos Inc an edge over competitors since none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these competitors sells straight to the customer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Flagstar Cos Inc, it is necessary to highlight the business's weaknesses also.

The business's sales personnel is competent in training distributors, the truth remains that the sales team is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It should likewise be noted that the distributors are revealing reluctance when it comes to offering devices that requires servicing which increases the difficulties of offering equipment under a specific brand name.

If we take a look at Flagstar Cos Inc product line in adhesive devices especially, the company has actually items targeted at the luxury of the market. If Flagstar Cos Inc sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Flagstar Cos Inc high-end line of product, sales cannibalization would absolutely be affecting Flagstar Cos Inc sales earnings if the adhesive devices is sold under the business's brand name.

We can see sales cannibalization affecting Flagstar Cos Inc 27A Pencil Applicator which is priced at $275. There is another possible risk which could reduce Flagstar Cos Inc earnings if Case Study Help is released under the company's trademark name. The truth that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good 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 immediate adhesive.

Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which gives us two additional factors for not releasing a low priced item under the business's brand name.

Competitor Analysis

The competitive environment of Flagstar Cos Inc would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high development potential due to the existence of fragmented sectors with Flagstar Cos Inc delighting in leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While industry rivalry in between these players could be called 'intense' as the customer is not brand mindful and each of these players has prominence in terms of market share, the fact still remains that the market is not filled and still has several market segments which can be targeted as prospective specific niche markets even when introducing an adhesive. Nevertheless, we can even explain the reality that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instantaneous adhesives uses development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low understanding about the product. While business like Flagstar Cos Inc have actually managed to train distributors relating to adhesives, the last consumer is dependent on suppliers. Around 72% of sales are made straight by producers and distributors for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 players, it could be said that the supplier enjoys a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the supplier does not have much influence over the buyer at this moment especially as the purchaser does disappoint brand name recognition or rate level of sensitivity. This indicates that the distributor has the greater power when it pertains to the adhesive market while the purchaser and the maker do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market suggests that the marketplace permits ease of entry. Nevertheless, if we take a look at Flagstar Cos Inc in particular, the business has double abilities in regards to being a manufacturer of adhesive dispensers and instant adhesives. Potential dangers in equipment giving industry are low which shows the possibility of developing brand awareness in not just instant adhesives but likewise in giving adhesives as none of the industry gamers has actually handled to place itself in dual capabilities.

Danger 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, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Flagstar Cos Inc introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).

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

Flagstar Cos Inc Case Study Help

Despite the fact that our 3C analysis has actually offered various reasons for not releasing Case Study Help under Flagstar Cos Inc name, we have actually a suggested marketing mix for Case Study Help provided below if Flagstar Cos Inc decides to proceed 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 additional development potential of 10.1% which may be an excellent adequate specific niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the truth that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or through direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance shop needs to buy the product on his own.

Flagstar Cos Inc would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Flagstar Cos Inc for introducing Case Study Help.

Place: A distribution design where Flagstar Cos Inc directly sends the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Flagstar Cos Inc. Considering that the sales group is already engaged in selling instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be pricey specifically as each sales call costs roughly $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: A low marketing budget plan needs to have been designated to Case Study Help however the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended advertising plan costing $51816 is advised for initially presenting the item in the market. The prepared ads in publications would be targeted at mechanics in car maintenance stores. (Recommended 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
Flagstar Cos Inc Case Study Analysis

Although a recommended strategy in the form of a marketing mix has actually been discussed for Case Study Help, the fact still stays that the item would not match Flagstar Cos Inc line of product. We have a look at appendix 2, we can see how the overall gross success for the two designs is expected to be around $49377 if 250 systems of each model are produced per year according to the strategy. The initial planned marketing is roughly $52000 per year which would be putting a pressure on the company's resources leaving Flagstar Cos Inc with an unfavorable net income if the expenditures are assigned to Case Study Help just.

The reality that Flagstar Cos Inc has already sustained an initial investment of $48000 in the form of capital cost and prototype development shows that the profits from Case Study Help is not enough to undertake 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 preferable choice especially of it is affecting the sale of the business's earnings producing models.