The following section concentrates on the 3Cs of marketing for Gaz De France where the business's consumers, competitors and core proficiencies have evaluated in order to justify whether the decision to launch Case Study Help under Gaz De France brand would be a practical alternative or not. We have to start with taken a look at the kind of consumers that Gaz De France deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Gaz De France name.
Gaz De France customers can be segmented into 2 groups, industrial consumers and final consumers. Both the groups utilize Gaz De France high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these client groups. There are two kinds of products that are being sold to these potential markets; instant adhesives and anaerobic adhesives. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Gaz De France compared to that of immediate adhesives.
The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Gaz De France possible market or customer groups, we can see that the company offers to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and manufacturers dealing in items made of leather, plastic, wood and metal. This variety in consumers suggests that Gaz De France can target has various choices in regards to segmenting the market for its brand-new product especially as each of these groups would be needing the same type of item with particular changes in packaging, demand or quantity. The client is not rate sensitive or brand conscious so releasing a low priced dispenser under Gaz De France name is not a recommended option.
Gaz De France is not just a producer of adhesives but enjoys market management in the instant adhesive market. The business has its own experienced and qualified sales force which includes value to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives. Gaz De France believes in exclusive circulation as suggested by the truth that it has chosen to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for broadening reach by means of distributors. The business's reach is not limited to North America only as it likewise enjoys worldwide sales. With 1400 outlets spread all throughout The United States and Canada, Gaz De France has its in-house production plants rather than utilizing out-sourcing as the preferred method.
Core skills are not restricted to adhesive manufacturing only as Gaz De France also focuses on making adhesive dispensing equipment to help with making use of its items. This double production method gives Gaz De France an edge over rivals given that none of the competitors of dispensing equipment makes immediate adhesives. In addition, none of these competitors sells straight to the consumer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Gaz De France, it is essential to highlight the business's weaknesses.
Although the company's sales staff is experienced in training distributors, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It needs to likewise be noted that the distributors are showing unwillingness when it comes to offering devices that requires maintenance which increases the obstacles of offering equipment under a particular brand name.
The business has products intended at the high end of the market if we look at Gaz De France product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Gaz De France offers Case Study Help under the same portfolio. Provided the fact that Case Study Help is priced lower than Gaz De France high-end product line, sales cannibalization would definitely be impacting Gaz De France sales earnings if the adhesive devices is sold under the company's trademark name.
We can see sales cannibalization impacting Gaz De France 27A Pencil Applicator which is priced at $275. There is another possible hazard which could lower Gaz De France income if Case Study Help is launched under the business's brand. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a great 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 take a look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which gives us 2 extra factors for not launching a low priced item under the business's brand name.
The competitive environment of Gaz De France would be studied by means of 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 industry is low especially as the buyer has low understanding about the item. While companies like Gaz De France have managed to train distributors concerning adhesives, the final customer is dependent on distributors. Around 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by 3 players, it could be said that the provider takes pleasure in a higher bargaining power compared to the buyer. Nevertheless, the reality remains that the provider does not have much impact over the purchaser at this moment specifically as the purchaser does not show brand acknowledgment or cost sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the actual sales, this suggests that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the market permits ease of entry. However, if we take a look at Gaz De France in particular, the company has double capabilities in regards to being a maker of immediate adhesives and adhesive dispensers. Possible hazards in equipment giving industry are low which reveals the possibility of creating brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the market players has actually handled to position itself in double abilities.
Danger of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact stays that if Gaz De France presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered different factors for not releasing Case Study Help under Gaz De France name, we have actually a suggested marketing mix for Case Study Help offered listed below if Gaz De France decides to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. There are currently 89257 establishments in this segment and a high use of approximately 58900 lbs. is being utilized by 36.1 % of the market. This market has an additional development potential of 10.1% which may be a sufficient specific niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The product would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wants to opt for either of the two accessories or not.
Price: The suggested 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. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to acquire the product on his own.
Gaz De France would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Gaz De France for releasing Case Study Help.
Place: A circulation design where Gaz De France straight sends the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Gaz De France. Given that the sales team is currently engaged in selling instant adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be expensive particularly 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: Although a low promotional budget plan must have been designated to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising strategy costing $51816 is recommended for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
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