Friendly Cards Inc Case Study Help Checklist

Friendly Cards Inc Case Study Help Checklist

Friendly Cards Inc Case Study Solution
Friendly Cards Inc Case Study Help
Friendly Cards Inc Case Study Analysis

Analyses for Evaluating Friendly Cards Inc decision to launch Case Study Solution

The following section focuses on the of marketing for Friendly Cards Inc where the business's consumers, competitors and core proficiencies have actually evaluated in order to justify whether the decision to introduce Case Study Help under Friendly Cards Inc brand would be a possible choice or not. We have firstly looked at the type of consumers that Friendly Cards Inc deals in while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Friendly Cards Inc name.
Friendly Cards Inc Case Study Solution

Customer Analysis

Both the groups utilize Friendly Cards Inc high performance adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these customer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower potential for Friendly Cards Inc compared to that of instant adhesives.

The overall market for instant adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have actually been determined earlier.If we look at a breakdown of Friendly Cards Inc prospective market or customer groups, we can see that the company offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair and upgrading companies (MRO) and producers dealing in items made of leather, plastic, wood and metal. This variety in customers suggests that Friendly Cards Inc can target has different choices in terms of segmenting the marketplace for its new item particularly as each of these groups would be needing the very same type of product with particular changes in product packaging, amount or demand. The consumer is not price sensitive or brand name conscious so releasing a low priced dispenser under Friendly Cards Inc name is not a recommended option.

Company Analysis

Friendly Cards Inc is not just a manufacturer of adhesives however takes pleasure in market management in the immediate adhesive industry. The business has its own knowledgeable and qualified sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.

Core competences are not limited to adhesive production just as Friendly Cards Inc likewise focuses on making adhesive dispensing equipment to assist in the use of its products. This dual production strategy gives Friendly Cards Inc an edge over competitors because none of the competitors of dispensing equipment makes instant adhesives. Furthermore, none of these rivals sells directly to the consumer either and utilizes distributors for reaching out to customers. While we are taking a look at the strengths of Friendly Cards Inc, it is essential to highlight the business's weaknesses also.

Although the business's sales staff is proficient in training distributors, the fact 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 must also be noted that the suppliers are revealing hesitation when it comes to offering devices that requires maintenance which increases the challenges of offering devices under a particular brand name.

The business has products aimed at the high end of the market if we look at Friendly Cards Inc item line in adhesive equipment especially. If Friendly Cards Inc offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Friendly Cards Inc high-end line of product, sales cannibalization would certainly be affecting Friendly Cards Inc sales profits if the adhesive devices is offered under the business's brand name.

We can see sales cannibalization affecting Friendly Cards Inc 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 could decrease Friendly Cards Inc revenue. The truth that $175000 has actually been spent in promoting SuperBonder recommends 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 instantaneous adhesive.

In addition, if we look at the market in general, the adhesives market does not show brand name orientation or price awareness which provides us two additional reasons for not introducing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Friendly Cards Inc would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the existence of fragmented sections with Friendly Cards Inc enjoying leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While market rivalry in between these players could be called 'intense' as the customer is not brand name conscious and each of these players has prominence in terms of market share, the fact still stays that the market is not saturated and still has numerous market sections which can be targeted as prospective specific niche markets even when introducing an adhesive. Nevertheless, we can even explain the reality that sales cannibalization may be resulting in industry rivalry in the adhesive dispenser market while the market for immediate 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 knowledge about the item. While companies like Friendly Cards Inc have handled to train distributors relating to adhesives, the final consumer is dependent on suppliers. Approximately 72% of sales are made straight by makers and distributors for instantaneous 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 stated that the provider takes pleasure in a greater bargaining power compared to the buyer. The reality remains that the supplier does not have much influence over the purchaser at this point specifically as the buyer does not show brand name recognition or rate level of sensitivity. This suggests that the distributor has the higher power when it pertains to the adhesive market while the buyer and the manufacturer do not have a major control over the actual sales.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market suggests that the market enables ease of entry. Nevertheless, if we take a look at Friendly Cards Inc in particular, the business has dual capabilities in terms of being a maker of adhesive dispensers and immediate adhesives. Potential hazards in devices dispensing industry are low which reveals the possibility of developing brand awareness in not only instant adhesives but also in giving adhesives as none of the industry gamers has actually managed to place itself in double capabilities.

Risk of Substitutes: The risk of replacements in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Friendly Cards Inc presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).

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

Friendly Cards Inc Case Study Help

Despite the fact that our 3C analysis has provided numerous factors for not launching Case Study Help under Friendly Cards Inc name, we have actually a recommended marketing mix for Case Study Help provided below if Friendly Cards Inc chooses to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an extra development capacity of 10.1% which may be a great adequate specific niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the reality that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.

Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or through direct selling. This price would not include the cost of the 'vari pointer' or the 'glumetic idea'. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to acquire the item on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their daily upkeep jobs.

Friendly Cards Inc would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Friendly Cards Inc for releasing Case Study Help.

Place: A circulation design where Friendly Cards Inc directly sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Friendly Cards Inc. Since the sales group is currently participated in selling instantaneous adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be pricey particularly as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: A low advertising spending plan should have been appointed 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 incurred for production, the recommended advertising strategy costing $51816 is recommended for at first presenting the item in the market. The planned advertisements in magazines would be targeted at mechanics in automobile upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Friendly Cards Inc Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has been discussed for Case Study Help, the truth still stays that the item would not complement Friendly Cards Inc line of product. We take a look at appendix 2, we can see how the overall gross profitability for the two designs is anticipated to be roughly $49377 if 250 systems of each model are manufactured each year as per the plan. The preliminary planned marketing is roughly $52000 per year which would be putting a strain on the company's resources leaving Friendly Cards Inc with an unfavorable net income if the expenses are designated to Case Study Help just.

The fact that Friendly Cards Inc has actually currently incurred an initial financial investment of $48000 in the form of capital cost and model development suggests that the earnings from Case Study Help is not enough to undertake the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more effective alternative specifically of it is affecting the sale of the company's profits creating designs.