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Foster Wheeler Ltd Case Study Solution
Foster Wheeler Ltd Case Study Help
Foster Wheeler Ltd Case Study Analysis
The following area focuses on the of marketing for Foster Wheeler Ltd where the business's clients, competitors and core competencies have actually examined in order to validate whether the choice to launch Case Study Help under Foster Wheeler Ltd brand name would be a feasible choice or not. We have firstly looked at the type of clients that Foster Wheeler Ltd deals in while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Foster Wheeler Ltd name.
Foster Wheeler Ltd customers can be segmented into 2 groups, last customers and industrial consumers. Both the groups utilize Foster Wheeler Ltd high performance adhesives while the business is not only involved in the production of these adhesives but also markets them to these consumer groups. There are 2 types of items that are being sold to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower potential for Foster Wheeler Ltd compared to that of instant adhesives.
The overall market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Foster Wheeler Ltd potential market or customer groups, we can see that the company offers to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair work and upgrading business (MRO) and makers dealing in products made from leather, metal, plastic and wood. This variety in consumers suggests that Foster Wheeler Ltd can target has various choices in regards to segmenting the marketplace for its new item specifically as each of these groups would be needing the exact same type of item with particular changes in product packaging, quantity or need. Nevertheless, the client is not rate delicate or brand name conscious so introducing a low priced dispenser under Foster Wheeler Ltd name is not a suggested choice.
Foster Wheeler Ltd is not simply a producer of adhesives however delights in market leadership in the immediate adhesive industry. The business has its own knowledgeable and competent sales force which includes worth to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives. Foster Wheeler Ltd believes in unique circulation as shown by the fact that it has chosen to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach through distributors. The business's reach is not limited to The United States and Canada only as it also takes pleasure in global sales. With 1400 outlets spread all throughout North America, Foster Wheeler Ltd has its internal production plants instead of utilizing out-sourcing as the favored method.
Core proficiencies are not restricted to adhesive production just as Foster Wheeler Ltd likewise focuses on making adhesive giving devices to assist in making use of its products. This double production method provides Foster Wheeler Ltd an edge over competitors since none of the rivals of giving devices makes instantaneous adhesives. Furthermore, none of these competitors offers straight to the consumer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Foster Wheeler Ltd, it is necessary to highlight the company's weaknesses as well.
Although the business's sales staff is experienced in training distributors, the fact remains that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It must also be kept in mind that the suppliers are showing unwillingness when it comes to offering devices that needs maintenance which increases the challenges of selling equipment under a specific brand name.
The business has actually items aimed at the high end of the market if we look at Foster Wheeler Ltd product line in adhesive equipment particularly. If Foster Wheeler Ltd sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Foster Wheeler Ltd high-end product line, sales cannibalization would definitely be affecting Foster Wheeler Ltd sales profits if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Foster Wheeler Ltd 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible hazard which might reduce Foster Wheeler Ltd profits. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we look at the market in general, the adhesives market does disappoint brand name orientation or price awareness which gives us two extra factors for not introducing a low priced item under the company's trademark name.
The competitive environment of Foster Wheeler Ltd would be studied through Porter's five 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 buyer has low understanding about the item. While business like Foster Wheeler Ltd have handled to train distributors concerning adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by producers and suppliers for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by three gamers, it could be said that the supplier delights in a higher bargaining power compared to the buyer. The truth remains that the provider does not have much impact over the purchaser at this point particularly as the buyer does not reveal brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the producer and the buyer do not have a major control over the actual sales, this shows that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market shows that the marketplace enables ease of entry. However, if we take a look at Foster Wheeler Ltd in particular, the company has dual capabilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Potential hazards in equipment dispensing market are low which shows the possibility of developing brand name awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the market players has handled to position itself in double abilities.
Risk of Substitutes: The threat of alternatives in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth remains that if Foster Wheeler Ltd presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided numerous factors for not launching Case Study Help under Foster Wheeler Ltd name, we have actually a suggested marketing mix for Case Study Help provided below if Foster Wheeler Ltd decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of factors. There are presently 89257 establishments in this section and a high usage of approximately 58900 pounds. is being utilized by 36.1 % of the market. This market has an additional development capacity of 10.1% which may be a good enough niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the fact that the Diy market can also be targeted if a drinkable low priced adhesive is being cost use with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wishes to choose either of the two accessories or not.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This cost would not include the cost of the 'vari suggestion' or the 'glumetic tip'. A price below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to acquire the product on his own. This would increase the possibility of influencing mechanics to purchase the item for usage in their everyday upkeep tasks.
Foster Wheeler Ltd would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net profitability for Foster Wheeler Ltd for releasing Case Study Help.
Place: A circulation design where Foster Wheeler Ltd straight sends the item to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Foster Wheeler Ltd. Since the sales team is already taken part in selling instant adhesives and they do not have competence in offering dispensers, involving them in the selling process would be costly specifically as each sales call costs around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: A low advertising budget plan should have been appointed to Case Study Help however the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is recommended for initially presenting the item in the market. The planned ads in magazines would be targeted at mechanics in car maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
