The following area concentrates on the of marketing for Fortress Investment Group where the business's customers, rivals and core competencies have actually assessed in order to justify whether the choice to launch Case Study Help under Fortress Investment Group brand name would be a feasible option or not. We have to start with looked at the kind of consumers that Fortress Investment Group deals in while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Fortress Investment Group name.
Both the groups utilize Fortress Investment Group high efficiency adhesives while the business is not only involved 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 Fortress Investment Group compared to that of immediate adhesives.
The overall market for immediate adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have actually been recognized earlier.If we take a look at a breakdown of Fortress Investment Group possible market or customer groups, we can see that the business offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and producers handling items made of leather, plastic, wood and metal. This diversity in clients recommends that Fortress Investment Group can target has numerous choices in regards to segmenting the market for its brand-new product particularly as each of these groups would be requiring the exact same type of product with particular modifications in product packaging, need or amount. The client is not price delicate or brand name mindful so launching a low priced dispenser under Fortress Investment Group name is not an advised choice.
Fortress Investment Group is not simply a maker of adhesives but takes pleasure in market management in the immediate adhesive market. The company has its own experienced and competent sales force which adds worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Fortress Investment Group believes in special circulation as suggested by the truth that it has actually picked to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for broadening reach via suppliers. The business's reach is not limited to North America just as it likewise delights in international sales. With 1400 outlets spread all across The United States and Canada, Fortress Investment Group has its internal production plants instead of utilizing out-sourcing as the preferred strategy.
Core skills are not limited to adhesive manufacturing just as Fortress Investment Group also focuses on making adhesive giving devices to facilitate making use of its products. This double production technique offers Fortress Investment Group an edge over competitors because none of the rivals of dispensing devices makes immediate adhesives. Additionally, none of these rivals offers directly to the customer either and utilizes distributors for reaching out to consumers. While we are taking a look at the strengths of Fortress Investment Group, it is necessary to highlight the business's weak points also.
The business's sales personnel is skilled in training suppliers, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it must likewise be kept in mind that the distributors are revealing reluctance when it comes to offering devices that needs maintenance which increases the challenges of selling devices under a particular brand name.
The business has actually products aimed at the high end of the market if we look at Fortress Investment Group product line in adhesive equipment particularly. If Fortress Investment Group offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Fortress Investment Group high-end line of product, sales cannibalization would certainly be affecting Fortress Investment Group sales profits if the adhesive devices is offered under the company's brand.
We can see sales cannibalization impacting Fortress Investment Group 27A Pencil Applicator which is priced at $275. There is another possible threat which could lower Fortress Investment Group revenue if Case Study Help is launched under the company's brand. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or rate awareness which gives us 2 additional reasons for not introducing a low priced item under the business's brand name.
The competitive environment of Fortress Investment Group 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 buyer in this industry is low specifically as the buyer has low knowledge about the product. While business like Fortress Investment Group have handled to train suppliers relating to adhesives, the last customer depends on suppliers. Approximately 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by three gamers, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The reality remains that the supplier does not have much impact over the purchaser at this point especially as the buyer does not show brand recognition or price sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a significant control over the real sales, this suggests 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 shown by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace allows ease of entry. If we look at Fortress Investment Group in specific, the business has double capabilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Prospective hazards in devices dispensing industry are low which reveals the possibility of producing brand name awareness in not just immediate adhesives but likewise in giving adhesives as none of the industry gamers has actually managed to position itself in double abilities.
Risk of Substitutes: The threat of replacements in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The reality stays that if Fortress Investment Group introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided numerous reasons for not introducing Case Study Help under Fortress Investment Group name, we have actually a suggested marketing mix for Case Study Help given listed below if Fortress Investment Group chooses to go on with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 facilities in this section and a high usage of around 58900 pounds. is being used by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which may be a good enough niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the reality that the Diy 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 idea' and 'vari-drop' so that the customer can choose whether he wishes to opt for either of the two devices or not.
Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of 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 needs to buy the item on his own.
Fortress Investment Group would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Fortress Investment Group for releasing Case Study Help.
Place: A distribution model where Fortress Investment Group directly sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Fortress Investment Group. Since the sales team is already engaged in selling instant adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be pricey especially as each sales call expenses around $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget plan should have been designated to Case Study Help but the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is suggested for initially presenting the item 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 summarized in appendix 4).