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Flagstar Cos Inc Case Study Solution
Flagstar Cos Inc Case Study Help
Flagstar Cos Inc Case Study Analysis
The following area focuses on the of marketing for Flagstar Cos Inc where the business's clients, competitors and core proficiencies have evaluated in order to validate whether the decision to launch Case Study Help under Flagstar Cos Inc brand would be a practical choice or not. We have actually to start with looked at the type of clients that Flagstar Cos Inc handle while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Flagstar Cos Inc name.
Both the groups utilize Flagstar Cos Inc high efficiency adhesives while the company is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the customers of immediate adhesives for this analysis since the market for the latter has a lower capacity for Flagstar Cos Inc compared to that of immediate adhesives.
The total market for instant adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been recognized earlier.If we look at a breakdown of Flagstar Cos Inc prospective market or customer groups, we can see that the business sells to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair and revamping business (MRO) and makers dealing in items made from leather, plastic, wood and metal. This variety in consumers suggests that Flagstar Cos Inc can target has different choices in regards to segmenting the marketplace for its new product specifically as each of these groups would be needing the same kind of product with particular changes in quantity, demand or product packaging. However, the customer is not rate sensitive or brand name conscious so releasing a low priced dispenser under Flagstar Cos Inc name is not a suggested choice.
Flagstar Cos Inc is not just a maker of adhesives however takes pleasure in market leadership in the immediate adhesive market. The company has its own skilled and competent sales force which includes worth to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.
Core competences are not limited to adhesive manufacturing just as Flagstar Cos Inc likewise focuses on making adhesive giving devices to facilitate the use of its products. This dual production strategy gives Flagstar Cos Inc an edge over rivals considering that none of the rivals of giving equipment makes immediate adhesives. Additionally, none of these competitors sells straight to the customer either and uses suppliers for reaching out to customers. While we are looking at the strengths of Flagstar Cos Inc, it is very important to highlight the business's weak points as well.
Although the company's sales personnel is proficient in training suppliers, the reality remains that the sales team is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it should also be noted that the suppliers are showing hesitation when it pertains to offering equipment that needs servicing which increases the obstacles of selling devices under a specific trademark name.
If we look at Flagstar Cos Inc product line in adhesive equipment particularly, the business has actually items aimed at the luxury of the marketplace. If Flagstar Cos Inc offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Flagstar Cos Inc high-end line of product, sales cannibalization would definitely be impacting Flagstar Cos Inc sales revenue if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization affecting Flagstar Cos Inc 27A Pencil Applicator which is priced at $275. There is another possible risk which might lower Flagstar Cos Inc earnings if Case Study Help is introduced under the company's brand. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the fact 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 consciousness which provides us two additional factors for not introducing a low priced item under the business's brand name.
The competitive environment of Flagstar Cos Inc would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low specifically as the purchaser has low knowledge about the item. While companies like Flagstar Cos Inc have managed to train suppliers relating to adhesives, the last customer depends on distributors. Roughly 72% of sales are made straight by manufacturers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by 3 gamers, it could be said that the provider enjoys a higher bargaining power compared to the buyer. Nevertheless, the reality remains that the provider does not have much impact over the buyer at this point particularly as the purchaser does not show brand acknowledgment or cost sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a significant control over the actual sales, this indicates that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the market allows ease of entry. If we look at Flagstar Cos Inc in particular, the company has dual abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible dangers in equipment dispensing market are low which reveals the possibility of producing brand awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the market players has actually handled to place itself in double abilities.
Danger of Substitutes: The hazard of alternatives in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality remains that if Flagstar Cos Inc 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 numerous reasons for not launching Case Study Help under Flagstar Cos Inc name, we have a suggested marketing mix for Case Study Help given listed below if Flagstar Cos Inc chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an extra growth capacity of 10.1% which may be a good adequate niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the fact 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 recommended price 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 need approvals from the senior management in case a mechanic at a motor automobile maintenance shop requires to buy the product on his own.
Flagstar Cos Inc would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Flagstar Cos Inc for launching Case Study Help.
Place: A distribution model where Flagstar Cos Inc directly sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Flagstar Cos Inc. Given that the sales group is already engaged in selling immediate adhesives and they do not have expertise in offering dispensers, including them in the selling procedure would be expensive specifically as each sales call costs approximately $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: A low marketing budget plan ought to have been assigned to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is advised for initially presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle maintenance shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
