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Fremont Financial Corp Case Study Solution
Fremont Financial Corp Case Study Help
Fremont Financial Corp Case Study Analysis
The following area concentrates on the of marketing for Fremont Financial Corp where the business's customers, rivals and core proficiencies have actually evaluated in order to justify whether the choice to introduce Case Study Help under Fremont Financial Corp brand name would be a possible alternative or not. We have firstly looked at the type of clients that Fremont Financial Corp handle while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Fremont Financial Corp name.
Fremont Financial Corp consumers can be segmented into 2 groups, commercial consumers and final consumers. Both the groups utilize Fremont Financial Corp high performance adhesives while the company is not just associated with the production of these adhesives but also markets them to these customer groups. There are 2 kinds of items that are being sold to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis since the market for the latter has a lower potential for Fremont Financial Corp compared to that of immediate adhesives.
The overall market for instant adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Fremont Financial Corp possible market or client groups, we can see that the company sells to OEMs (Original Devices Producers), Do-it-Yourself customers, repair work and upgrading business (MRO) and makers dealing in items made of leather, metal, wood and plastic. This diversity in consumers suggests that Fremont Financial Corp can target has numerous options in regards to segmenting the market for its new product particularly as each of these groups would be requiring the very same type of item with respective changes in amount, demand or product packaging. Nevertheless, the consumer is not cost delicate or brand conscious so releasing a low priced dispenser under Fremont Financial Corp name is not a recommended alternative.
Fremont Financial Corp is not simply a manufacturer of adhesives but delights in market leadership in the instantaneous adhesive market. The business has its own proficient and qualified sales force which adds value to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Fremont Financial Corp believes in exclusive circulation as suggested by the truth that it has picked to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be checked out for broadening reach via suppliers. The company's reach is not limited to North America just as it also enjoys global sales. With 1400 outlets spread out all throughout The United States and Canada, Fremont Financial Corp has its internal production plants instead of utilizing out-sourcing as the favored strategy.
Core competences are not restricted to adhesive production just as Fremont Financial Corp also concentrates on making adhesive dispensing equipment to help with using its items. This dual production technique provides Fremont Financial Corp an edge over rivals since none of the competitors of dispensing equipment makes instant adhesives. Furthermore, none of these rivals offers directly to the customer either and utilizes distributors for connecting to clients. While we are looking at the strengths of Fremont Financial Corp, it is essential to highlight the business's weaknesses as well.
The company's sales staff is skilled in training suppliers, the truth stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It should also be kept in mind that the distributors are revealing hesitation when it comes to offering equipment that requires servicing which increases the obstacles of selling devices under a specific brand name.
The company has items intended at the high end of the market if we look at Fremont Financial Corp item line in adhesive equipment especially. The possibility of sales cannibalization exists if Fremont Financial Corp offers Case Study Help under the very same portfolio. Offered the reality that Case Study Help is priced lower than Fremont Financial Corp high-end line of product, sales cannibalization would definitely be impacting Fremont Financial Corp sales income if the adhesive devices is sold under the business's brand name.
We can see sales cannibalization impacting Fremont Financial Corp 27A Pencil Applicator which is priced at $275. There is another possible hazard which might decrease Fremont Financial Corp earnings if Case Study Help is introduced under the business's brand name. The fact that $175000 has actually been invested in promoting SuperBonder recommends that it is not a great 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 instant adhesive.
In addition, if we look at the market in general, the adhesives market does disappoint brand name orientation or rate awareness which provides us 2 extra factors for not launching a low priced item under the business's brand.
The competitive environment of Fremont Financial Corp 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 market is low specifically as the purchaser has low knowledge about the product. While companies like Fremont Financial Corp have actually managed to train distributors regarding adhesives, the final consumer is dependent on suppliers. Roughly 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three players, it could be said that the supplier takes pleasure in a greater bargaining power compared to the buyer. However, the fact remains that the provider does not have much impact over the purchaser at this moment especially as the purchaser does not show brand recognition or price level of sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a major control over the real sales, this shows that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the instant adhesive market shows that the market allows ease of entry. However, if we look at Fremont Financial Corp in particular, the company has dual abilities in terms of being a producer of adhesive dispensers and immediate adhesives. Prospective threats in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not only instant adhesives however likewise in giving adhesives as none of the industry players has managed to position itself in double abilities.
Hazard of Substitutes: The threat of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Fremont Financial Corp presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered various reasons for not releasing Case Study Help under Fremont Financial Corp name, we have a suggested marketing mix for Case Study Help given listed below if Fremont Financial Corp decides to proceed with the launch.
Product & Target Market: The target audience selected 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 utilized by 36.1 % of the marketplace. This market has an extra development capacity of 10.1% which might be a sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the fact that the Do-it-Yourself 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 pointer' and 'vari-drop' so that the consumer can choose whether he wishes to go with either of the two accessories or not.
Price: The suggested cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This price would not include the expense of the 'vari idea' or the 'glumetic idea'. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to purchase the item on his own. This would increase the possibility of affecting mechanics to buy the item for use in their everyday upkeep jobs.
Fremont Financial Corp would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Fremont Financial Corp for launching Case Study Help.
Place: A circulation design where Fremont Financial Corp directly sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Fremont Financial Corp. Since the sales group is already taken part in selling immediate adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be costly particularly as each sales call costs roughly $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low advertising budget must have been appointed to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is advised for initially presenting the item in the market. The planned ads in magazines would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
