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Friendly Cards Inc Case Study Solution
Friendly Cards Inc Case Study Help
Friendly Cards Inc Case Study Analysis
The following section focuses on the of marketing for Friendly Cards Inc where the business's clients, competitors and core competencies have actually examined in order to validate whether the decision to release Case Study Help under Friendly Cards Inc trademark name would be a possible choice or not. We have actually to start with looked at the kind of consumers that Friendly Cards Inc handle while an examination of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Friendly Cards Inc name.
Friendly Cards Inc clients can be segmented into 2 groups, industrial consumers and last customers. Both the groups use Friendly Cards Inc high performance adhesives while the company is not just involved in the production of these adhesives however likewise markets them to these customer groups. There are two kinds of items that are being sold to these prospective markets; instantaneous adhesives and anaerobic adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis considering that the marketplace for the latter has a lower potential for Friendly Cards Inc compared to that of instantaneous adhesives.
The overall market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have actually been determined earlier.If we look at a breakdown of Friendly Cards Inc potential market or client groups, we can see that the business offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair and upgrading business (MRO) and manufacturers handling items made from leather, metal, plastic and wood. This variety in consumers recommends that Friendly Cards Inc can target has various alternatives in terms of segmenting the marketplace for its new product particularly as each of these groups would be requiring the same type of product with particular modifications in need, product packaging or quantity. However, the consumer is not price sensitive or brand conscious so launching a low priced dispenser under Friendly Cards Inc name is not a recommended choice.
Friendly Cards Inc is not just a producer of adhesives however takes pleasure in market management in the immediate adhesive market. The company has its own skilled and qualified sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Friendly Cards Inc believes in unique circulation as shown by the fact that it has selected to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for expanding reach via suppliers. The company's reach is not restricted to North America just as it also delights in worldwide sales. With 1400 outlets spread out all across North America, Friendly Cards Inc has its in-house production plants instead of using out-sourcing as the favored strategy.
Core competences are not restricted to adhesive production only as Friendly Cards Inc likewise focuses on making adhesive dispensing equipment to help with the use of its products. This dual production method provides Friendly Cards Inc an edge over competitors because none of the competitors of giving equipment makes instant adhesives. Furthermore, none of these competitors sells directly to the consumer either and makes use of distributors for reaching out to customers. While we are looking at the strengths of Friendly Cards Inc, it is necessary to highlight the company's weak points too.
The business's sales staff is skilled in training distributors, the reality stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It ought to likewise be noted that the distributors are revealing reluctance when it comes to offering devices that needs maintenance which increases the difficulties of selling devices under a particular brand name.
The business has products intended at the high end of the market if we look at Friendly Cards Inc product line in adhesive devices especially. If Friendly Cards Inc sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Friendly Cards Inc high-end line of product, sales cannibalization would absolutely be affecting Friendly Cards Inc sales earnings if the adhesive devices is offered under the business's brand.
We can see sales cannibalization affecting Friendly Cards Inc 27A Pencil Applicator which is priced at $275. There is another possible risk which might lower Friendly Cards Inc revenue if Case Study Help is launched under the company's brand. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or cost consciousness which gives us 2 additional reasons for not introducing a low priced item under the company's trademark name.
The competitive environment of Friendly Cards Inc would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the buyer has low knowledge about the product. While companies like Friendly Cards Inc have handled to train distributors relating to adhesives, the final consumer depends on suppliers. Around 72% of sales are made directly by producers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by three players, it could be stated that the provider enjoys a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the supplier does not have much influence over the purchaser at this moment specifically as the buyer does disappoint brand acknowledgment or price sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a major control over the real sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the market permits ease of entry. If we look at Friendly Cards Inc in particular, the company has dual abilities in terms of being a maker of adhesive dispensers and instant adhesives. Possible dangers in equipment dispensing market are low which shows the possibility of creating brand name awareness in not only immediate adhesives but also in giving adhesives as none of the industry players has actually managed to place itself in double abilities.
Danger of Substitutes: The threat of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Friendly Cards Inc 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 provided numerous reasons for not releasing 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 picked for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an extra growth capacity of 10.1% which may be a good sufficient niche market segment for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or through direct selling. This price would not consist of the expense of the 'vari pointer' or the 'glumetic suggestion'. A price listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to purchase the product on his own. This would increase the possibility of affecting 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 provides a breakdown of gross profitability and net success for Friendly Cards Inc for releasing Case Study Help.
Place: A distribution model where Friendly Cards Inc straight sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be used by Friendly Cards Inc. Considering that the sales team is already participated in selling instant adhesives and they do not have proficiency in offering dispensers, including them in the selling procedure would be expensive especially as each sales call expenses roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low advertising budget ought to have been appointed to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended marketing strategy costing $51816 is recommended for initially presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
