The following area focuses on the of marketing for Fresh Choice where the company's customers, competitors and core competencies have examined in order to validate whether the choice to release Case Study Help under Fresh Choice brand name would be a practical alternative or not. We have actually first of all taken a look at the type of customers that Fresh Choice handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Fresh Choice name.
Fresh Choice clients can be segmented into 2 groups, last customers and commercial consumers. Both the groups utilize Fresh Choice 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 offered to these prospective markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of instant adhesives for this analysis since the market for the latter has a lower potential for Fresh Choice compared to that of instant adhesives.
The overall market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Fresh Choice prospective market or client groups, we can see that the business sells to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and makers handling products made of leather, metal, wood and plastic. This diversity in consumers suggests that Fresh Choice can target has numerous choices in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the exact same type of item with particular changes in product packaging, demand or amount. The customer is not cost delicate or brand name mindful so launching a low priced dispenser under Fresh Choice name is not a suggested option.
Fresh Choice is not just a manufacturer of adhesives however delights in market leadership in the instantaneous adhesive industry. The company has its own proficient and competent sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core competences are not limited to adhesive production just as Fresh Choice likewise focuses on making adhesive giving devices to help with using its products. This dual production technique offers Fresh Choice an edge over rivals because none of the rivals of dispensing devices makes instantaneous adhesives. In addition, none of these competitors sells straight to the consumer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Fresh Choice, it is crucial to highlight the company's weak points.
Although the company's sales personnel is competent in training distributors, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. Nevertheless, it should also be noted that the suppliers are showing unwillingness when it concerns selling equipment that requires maintenance which increases the obstacles of selling devices under a particular brand.
If we take a look at Fresh Choice line of product in adhesive devices especially, the business has products focused on the high-end of the market. If Fresh Choice sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Fresh Choice high-end product line, sales cannibalization would definitely be affecting Fresh Choice sales profits if the adhesive devices is offered under the business's brand.
We can see sales cannibalization affecting Fresh Choice 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible threat which could lower Fresh Choice income. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for releasing 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 take a look at the marketplace in general, the adhesives market does not show brand orientation or cost awareness which provides us two extra factors for not introducing a low priced item under the company's brand.
The competitive environment of Fresh Choice 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 purchaser in this industry is low especially as the purchaser has low knowledge about the item. While business like Fresh Choice have handled to train distributors concerning adhesives, the last consumer depends on distributors. Roughly 72% of sales are made straight by makers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 gamers, it could be said that the supplier enjoys a higher bargaining power compared to the buyer. Nevertheless, the fact remains that the provider does not have much impact over the buyer at this point especially as the purchaser does disappoint brand acknowledgment or cost sensitivity. This suggests that the distributor has the greater power when it pertains to the adhesive market while the purchaser and the producer do not have a major 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 rivals in the instant adhesive market indicates that the market enables ease of entry. If we look at Fresh Choice in specific, the company has dual capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Potential hazards in equipment giving industry are low which shows the possibility of creating brand awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the market gamers has actually managed to position itself in dual abilities.
Threat of Substitutes: The risk of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality remains that if Fresh Choice introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given different reasons for not launching Case Study Help under Fresh Choice name, we have a recommended marketing mix for Case Study Help provided below if Fresh Choice chooses to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a number of reasons. There are presently 89257 establishments in this section and a high use of around 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional development capacity of 10.1% which might be a good enough specific niche market section for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic idea' and 'vari-drop' so that the consumer can decide whether he wants to go with 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 offered through suppliers or by means of direct selling. This price would not include the expense of the 'vari idea' or the 'glumetic tip'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the product on his own. This would increase the possibility of influencing mechanics to purchase the product for use in their everyday upkeep jobs.
Fresh Choice would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Fresh Choice for releasing Case Study Help.
Place: A distribution design where Fresh Choice straight sends the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Fresh Choice. Considering that the sales group is already participated in selling immediate adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be pricey especially as each sales call costs around $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional budget needs to have been appointed to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising plan costing $51816 is suggested for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).