The following area focuses on the of marketing for Fremont Financial Corp where the business's customers, rivals and core competencies have evaluated in order to validate whether the choice to release Case Study Help under Fremont Financial Corp brand name would be a feasible alternative or not. We have actually first of all looked at the type of consumers that Fremont Financial Corp deals in while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Fremont Financial Corp name.
Both the groups utilize Fremont Financial Corp high performance 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 potential for Fremont Financial Corp compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Fremont Financial Corp potential market or client groups, we can see that the business offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair work and revamping business (MRO) and manufacturers dealing in items made of leather, plastic, metal and wood. This variety in consumers recommends that Fremont Financial Corp can target has numerous options in regards to segmenting the market for its new item especially as each of these groups would be needing the same type of product with particular changes in demand, product packaging or amount. However, the customer is not cost sensitive or brand name conscious so releasing a low priced dispenser under Fremont Financial Corp name is not a suggested choice.
Fremont Financial Corp is not just a producer of adhesives but takes pleasure in market management in the instant adhesive market. The company has its own knowledgeable 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.
Core proficiencies are not limited to adhesive production just as Fremont Financial Corp likewise concentrates on making adhesive giving devices to help with the use of its items. This double production technique gives Fremont Financial Corp an edge over competitors since none of the competitors of giving devices makes instantaneous adhesives. Additionally, none of these competitors sells directly to the consumer either and makes use of distributors for connecting to customers. While we are looking at the strengths of Fremont Financial Corp, it is important to highlight the company's weak points too.
Although the business's sales staff is skilled in training suppliers, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it ought to likewise be kept in mind that the suppliers are revealing reluctance when it concerns offering devices that requires servicing which increases the challenges of selling devices under a specific trademark name.
If we look at Fremont Financial Corp product line in adhesive devices especially, the business has products focused on the high-end of the market. If Fremont Financial Corp offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Fremont Financial Corp high-end line of product, sales cannibalization would definitely be affecting Fremont Financial Corp sales revenue if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization affecting Fremont Financial Corp 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Fremont Financial Corp revenue if Case Study Help is introduced under the company's trademark name. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a good 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.
In addition, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or price consciousness which provides us two additional factors for not launching a low priced product under the business's trademark name.
The competitive environment of Fremont Financial Corp would be studied through Porter's 5 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 purchaser has low understanding about the product. While companies like Fremont Financial Corp have actually managed to train distributors relating to adhesives, the final customer depends on suppliers. Roughly 72% of sales are made directly by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by 3 gamers, it could be said that the supplier enjoys a greater bargaining power compared to the buyer. The reality remains that the supplier does not have much impact over the purchaser at this point specifically as the purchaser does not reveal brand acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the real sales, this suggests that the distributor 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 immediate adhesive market suggests that the market enables ease of entry. Nevertheless, if we look at Fremont Financial Corp in particular, the company has double capabilities in regards to being a producer of adhesive dispensers and instantaneous adhesives. Potential dangers in devices giving industry are low which shows the possibility of producing brand name awareness in not only immediate adhesives but also in giving adhesives as none of the industry gamers has handled to place itself in double abilities.
Risk of Substitutes: The threat of replacements in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Fremont Financial Corp 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 provided different reasons for not releasing Case Study Help under Fremont Financial Corp name, we have a suggested marketing mix for Case Study Help provided listed below if Fremont Financial Corp chooses to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of factors. This market has an additional development potential of 10.1% which might be an excellent enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the truth that the Do-it-Yourself market can also be targeted if a drinkable 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. This price would not include the expense of the 'vari idea' or the 'glumetic pointer'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to acquire the product on his own. This would increase the possibility of affecting mechanics to buy the item for usage in their everyday upkeep tasks.
Fremont Financial Corp would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Fremont Financial Corp for launching Case Study Help.
Place: A distribution design where Fremont Financial Corp directly sends the product to the local supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Fremont Financial Corp. Since the sales group is currently engaged in offering immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be costly specifically as each sales call expenses approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget ought to have been designated to Case Study Help however the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is advised for at first introducing the product in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile maintenance stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).