Foster Wheeler Ltd Case Study Help Checklist

Foster Wheeler Ltd Case Study Help Checklist

Foster Wheeler Ltd Case Study Solution
Foster Wheeler Ltd Case Study Help
Foster Wheeler Ltd Case Study Analysis

Analyses for Evaluating Foster Wheeler Ltd decision to launch Case Study Solution

The following section focuses on the of marketing for Foster Wheeler Ltd where the business's clients, rivals and core competencies have actually examined in order to justify whether the decision to introduce Case Study Help under Foster Wheeler Ltd brand would be a feasible choice or not. We have firstly taken a look at the kind of consumers that Foster Wheeler Ltd handle while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Foster Wheeler Ltd name.
Foster Wheeler Ltd Case Study Solution

Customer Analysis

Both the groups use Foster Wheeler Ltd high efficiency adhesives while the company is not just included in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Foster Wheeler Ltd compared to that of instantaneous adhesives.

The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Foster Wheeler Ltd prospective market or consumer groups, we can see that the business sells to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair and overhauling business (MRO) and manufacturers handling items made from leather, metal, plastic and wood. This diversity in customers recommends that Foster Wheeler Ltd can target has numerous alternatives in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the exact same kind of item with respective changes in product packaging, demand or amount. The client is not price sensitive or brand conscious so releasing a low priced dispenser under Foster Wheeler Ltd name is not an advised choice.

Company Analysis

Foster Wheeler Ltd is not just a maker of adhesives but enjoys market management in the immediate adhesive market. The business has its own experienced and certified sales force which includes value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Foster Wheeler Ltd believes in special distribution as shown by the truth that it has chosen to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for broadening reach by means of suppliers. The company's reach is not restricted to North America only as it likewise delights in worldwide sales. With 1400 outlets spread all throughout North America, Foster Wheeler Ltd has its in-house production plants rather than utilizing out-sourcing as the favored method.

Core competences are not restricted to adhesive manufacturing just as Foster Wheeler Ltd also concentrates on making adhesive giving equipment to assist in the use of its products. This dual production technique gives Foster Wheeler Ltd an edge over rivals considering that none of the competitors of dispensing devices makes instantaneous adhesives. In addition, none of these competitors offers directly to the customer either and uses distributors for reaching out to consumers. While we are looking at the strengths of Foster Wheeler Ltd, it is essential to highlight the business's weak points.

The business's sales staff is experienced in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It should also be noted that the suppliers are showing reluctance when it comes to offering devices that needs maintenance which increases the obstacles of offering devices under a particular brand name.

The business has products intended at the high end of the market if we look at Foster Wheeler Ltd product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Foster Wheeler Ltd sells Case Study Help under the very same portfolio. Given the reality that Case Study Help is priced lower than Foster Wheeler Ltd high-end line of product, sales cannibalization would certainly be affecting Foster Wheeler Ltd sales income if the adhesive devices is sold under the company's brand.

We can see sales cannibalization impacting Foster Wheeler Ltd 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible threat which might lower Foster Wheeler Ltd revenue. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or rate consciousness which provides us 2 extra reasons for not launching a low priced product under the company's brand name.

Competitor Analysis

The competitive environment of Foster Wheeler Ltd would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high development capacity due to the existence of fragmented segments with Foster Wheeler Ltd taking pleasure in leadership and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While market competition in between these players could be called 'intense' as the customer is not brand conscious and each of these gamers has prominence in terms of market share, the fact still stays that the market is not saturated and still has several market segments which can be targeted as prospective specific niche markets even when releasing an adhesive. However, we can even point out the fact that sales cannibalization may be causing industry competition in the adhesive dispenser market while the marketplace for instantaneous adhesives offers development potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the purchaser has low understanding about the product. While companies like Foster Wheeler Ltd have actually managed to train suppliers concerning adhesives, the last consumer depends on distributors. Around 72% of sales are made straight by manufacturers 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 provider delights in a greater bargaining power compared to the purchaser. The truth remains that the provider does not have much impact over the purchaser at this point specifically as the purchaser does not show brand name recognition or rate level of sensitivity. This suggests that the supplier has the greater power when it concerns the adhesive market while the maker and the buyer do not have a significant control over the actual sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market suggests that the market enables ease of entry. If we look at Foster Wheeler Ltd in specific, the company has double abilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Prospective dangers in equipment giving market are low which shows the possibility of developing brand name awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the market players has managed to position itself in double abilities.

Risk of Substitutes: The risk of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth remains that if Foster Wheeler Ltd introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).

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

Foster Wheeler Ltd Case Study Help

Despite the fact that our 3C analysis has given various reasons for not launching Case Study Help under Foster Wheeler Ltd name, we have actually a recommended marketing mix for Case Study Help given listed below if Foster Wheeler Ltd decides to proceed with the launch.

Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this sector and a high usage of around 58900 lbs. is being used by 36.1 % of the market. This market has an extra growth capacity of 10.1% which might be a good enough niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The product would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to go with 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 offered through distributors or via direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance shop requires to purchase the item on his own.

Foster Wheeler Ltd would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net success for Foster Wheeler Ltd for launching Case Study Help.

Place: A distribution design where Foster Wheeler Ltd straight sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Foster Wheeler Ltd. Considering that the sales group is already participated in offering instantaneous adhesives and they do not have competence in selling dispensers, including them in the selling procedure would be costly especially as each sales call expenses around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: A low marketing budget should have been appointed to Case Study Help but the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising plan costing $51816 is advised for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in car upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Foster Wheeler Ltd Case Study Analysis

A recommended plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the truth still remains that the product would not match Foster Wheeler Ltd product line. We take a look at appendix 2, we can see how the overall gross success for the two models is expected to be approximately $49377 if 250 systems of each design are made annually based on the strategy. The initial prepared marketing is approximately $52000 per year which would be putting a stress on the company's resources leaving Foster Wheeler Ltd with a negative net earnings if the costs are allocated to Case Study Help just.

The truth that Foster Wheeler Ltd has currently sustained a preliminary investment of $48000 in the form of capital cost and model development indicates that the revenue from Case Study Help is inadequate to undertake the danger of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a more effective alternative specifically of it is impacting the sale of the company's revenue generating models.