Fu Ji Food And Catering Case Study Help Checklist

Fu Ji Food And Catering Case Study Help Checklist

Fu Ji Food And Catering Case Study Solution
Fu Ji Food And Catering Case Study Help
Fu Ji Food And Catering Case Study Analysis

Analyses for Evaluating Fu Ji Food And Catering decision to launch Case Study Solution

The following section focuses on the of marketing for Fu Ji Food And Catering where the company's customers, rivals and core competencies have evaluated in order to validate whether the choice to launch Case Study Help under Fu Ji Food And Catering brand name would be a feasible alternative or not. We have to start with looked at the kind of customers that Fu Ji Food And Catering handle while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Fu Ji Food And Catering name.
Fu Ji Food And Catering Case Study Solution

Customer Analysis

Both the groups use Fu Ji Food And Catering high efficiency adhesives while the company is not only involved in the production of these adhesives but 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 Fu Ji Food And Catering compared to that of immediate adhesives.

The total market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have actually been identified earlier.If we look at a breakdown of Fu Ji Food And Catering potential market or customer groups, we can see that the business sells to OEMs (Original Equipment Manufacturers), Do-it-Yourself clients, repair and revamping business (MRO) and manufacturers dealing in products made from leather, metal, plastic and wood. This variety in customers suggests that Fu Ji Food And Catering can target has different options in terms of segmenting the marketplace for its brand-new product specifically as each of these groups would be needing the same kind of product with particular changes in amount, need or product packaging. However, the client is not cost delicate or brand conscious so launching a low priced dispenser under Fu Ji Food And Catering name is not a recommended option.

Company Analysis

Fu Ji Food And Catering is not simply a manufacturer of adhesives however delights in market management in the immediate adhesive industry. The company has its own experienced and qualified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.

Core competences are not restricted to adhesive production just as Fu Ji Food And Catering also specializes in making adhesive giving devices to facilitate making use of its products. This dual production technique provides Fu Ji Food And Catering an edge over competitors considering that none of the rivals of dispensing devices makes immediate adhesives. Furthermore, none of these rivals offers directly to the consumer either and utilizes suppliers for connecting to clients. While we are taking a look at the strengths of Fu Ji Food And Catering, it is very important to highlight the business's weak points also.

Although the business's sales staff is skilled in training distributors, the fact remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it ought to likewise be kept in mind that the suppliers are showing hesitation when it concerns offering devices that requires servicing which increases the challenges of offering devices under a particular brand.

The business has products intended at the high end of the market if we look at Fu Ji Food And Catering product line in adhesive equipment particularly. If Fu Ji Food And Catering 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 Fu Ji Food And Catering high-end product line, sales cannibalization would certainly be affecting Fu Ji Food And Catering sales earnings if the adhesive equipment is offered under the business's trademark name.

We can see sales cannibalization impacting Fu Ji Food And Catering 27A Pencil Applicator which is priced at $275. There is another possible risk which could reduce Fu Ji Food And Catering profits if Case Study Help is released under the business's trademark name. The fact that $175000 has actually been spent in promoting SuperBonder recommends 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.

Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost consciousness which provides us two additional factors for not introducing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Fu Ji Food And Catering would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high development capacity due to the existence of fragmented sections with Fu Ji Food And Catering enjoying management and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While market competition in between these players could be called 'extreme' as the customer is not brand name mindful and each of these gamers has prominence in regards to market share, the fact still remains that the market is not saturated and still has several market sections which can be targeted as possible niche markets even when launching an adhesive. Nevertheless, we can even point out the truth that sales cannibalization might be causing industry competition in the adhesive dispenser market while the market for immediate adhesives offers growth potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the buyer has low understanding about the item. While companies like Fu Ji Food And Catering have actually managed to train suppliers concerning adhesives, the last consumer is dependent on distributors. Around 72% of sales are made straight by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by three players, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much influence over the purchaser at this point specifically as the buyer does not show brand name recognition or cost level of sensitivity. This indicates that the distributor has the greater power when it comes to the adhesive market while the buyer and the manufacturer do not have a significant control over the real sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the instant adhesive market suggests that the marketplace allows ease of entry. If we look at Fu Ji Food And Catering in specific, the business has double capabilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Prospective threats in devices dispensing industry are low which shows the possibility of producing brand name awareness in not only immediate adhesives but likewise in giving adhesives as none of the market players has actually handled to position itself in double capabilities.

Threat of Substitutes: The hazard of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact remains that if Fu Ji Food And Catering introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).

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

Fu Ji Food And Catering Case Study Help

Despite the fact that our 3C analysis has actually provided various factors for not launching Case Study Help under Fu Ji Food And Catering name, we have a recommended marketing mix for Case Study Help provided below if Fu Ji Food And Catering chooses to proceed with the launch.

Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this sector and a high usage of approximately 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which might be a sufficient niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the consumer can choose whether he wants to select either of the two accessories or not.

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

Fu Ji Food And Catering would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Fu Ji Food And Catering for releasing Case Study Help.

Place: A circulation design where Fu Ji Food And Catering directly sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be used by Fu Ji Food And Catering. Since the sales team is already taken part in selling instantaneous adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be pricey specifically as each sales call expenses around $120. The distributors are already selling dispensers so offering Case Study Help through them would be a favorable option.

Promotion: A low promotional budget plan must have been assigned 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 costs incurred for production, the suggested marketing strategy costing $51816 is suggested for initially introducing the item in the market. The prepared ads in publications would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Fu Ji Food And Catering Case Study Analysis

A suggested strategy of action in the form of a marketing mix has been gone over for Case Study Help, the truth still stays that the product would not complement Fu Ji Food And Catering product line. We take a look at appendix 2, we can see how the overall gross success for the two models is expected to be roughly $49377 if 250 systems of each design are made per year according to the plan. The preliminary prepared marketing is roughly $52000 per year which would be putting a strain on the business's resources leaving Fu Ji Food And Catering with a negative net earnings if the expenditures are designated to Case Study Help only.

The truth that Fu Ji Food And Catering has actually currently incurred an initial financial investment of $48000 in the form of capital cost and prototype development suggests that the revenue from Case Study Help is not enough to carry out the danger of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a preferable option especially of it is impacting the sale of the business's earnings producing models.