Glenorna Coffee Case Study Help Checklist

Glenorna Coffee Case Study Help Checklist

Glenorna Coffee Case Study Solution
Glenorna Coffee Case Study Help
Glenorna Coffee Case Study Analysis

Analyses for Evaluating Glenorna Coffee decision to launch Case Study Solution

The following section focuses on the of marketing for Glenorna Coffee where the company's consumers, rivals and core proficiencies have actually examined in order to validate whether the choice to introduce Case Study Help under Glenorna Coffee brand name would be a possible alternative or not. We have first of all looked at the type of customers that Glenorna Coffee deals in while an evaluation 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 Glenorna Coffee name.
Glenorna Coffee Case Study Solution

Customer Analysis

Both the groups use Glenorna Coffee high performance adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Glenorna Coffee compared to that of instantaneous adhesives.

The total market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have actually been identified earlier.If we take a look at a breakdown of Glenorna Coffee prospective market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and producers dealing in products made of leather, metal, wood and plastic. This variety in clients suggests that Glenorna Coffee can target has numerous choices in terms of segmenting the market for its brand-new product particularly as each of these groups would be requiring the very same kind of product with particular modifications in amount, need or product packaging. However, the client is not price delicate or brand mindful so releasing a low priced dispenser under Glenorna Coffee name is not an advised alternative.

Company Analysis

Glenorna Coffee is not just a manufacturer of adhesives but delights in market leadership in the instantaneous adhesive industry. The company has its own experienced and competent sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.

Core proficiencies are not restricted to adhesive manufacturing just as Glenorna Coffee likewise specializes in making adhesive dispensing equipment to assist in the use of its products. This double production technique provides Glenorna Coffee an edge over rivals because none of the rivals of giving devices makes immediate adhesives. Additionally, none of these rivals sells straight to the consumer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Glenorna Coffee, it is essential to highlight the business's weaknesses.

Although the business's sales personnel is skilled in training suppliers, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It should likewise be kept in mind that the distributors are showing hesitation when it comes to offering equipment that needs servicing which increases the obstacles of offering devices under a particular brand name.

If we take a look at Glenorna Coffee product line in adhesive equipment especially, the company has items focused on the luxury of the market. The possibility of sales cannibalization exists if Glenorna Coffee offers Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Glenorna Coffee high-end line of product, sales cannibalization would certainly be affecting Glenorna Coffee sales income if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization affecting Glenorna Coffee 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible danger which might decrease Glenorna Coffee profits. The fact that $175000 has been invested in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

In addition, if we look at the marketplace in general, the adhesives market does not show brand orientation or rate consciousness which gives us two extra reasons for not introducing a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Glenorna Coffee would be studied by means of 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 presence of fragmented sectors with Glenorna Coffee taking pleasure in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry rivalry between these players could be called 'intense' as the customer is not brand conscious and each of these gamers has prominence in terms of market share, the truth still remains that the industry is not filled and still has several market sectors which can be targeted as possible specific niche markets even when releasing an adhesive. We can even point out the truth that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instantaneous adhesives offers development 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 business like Glenorna Coffee have handled to train suppliers relating to adhesives, the final consumer depends on distributors. Roughly 72% of sales are made straight by producers and suppliers for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 players, it could be stated that the provider delights in a greater bargaining power compared to the buyer. Nevertheless, the truth remains that the supplier does not have much impact over the purchaser at this point especially as the purchaser does not show brand recognition or cost sensitivity. This indicates that the supplier has the higher power when it comes to the adhesive market while the buyer and the producer do not have a significant 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 marketplace permits ease of entry. If we look at Glenorna Coffee in particular, the business has double capabilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Potential dangers in equipment giving market are low which shows the possibility of developing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the industry gamers has managed to place itself in dual abilities.

Threat of Substitutes: The hazard of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Glenorna Coffee presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).

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

Glenorna Coffee Case Study Help

Despite the fact that our 3C analysis has offered numerous factors for not releasing Case Study Help under Glenorna Coffee name, we have a suggested marketing mix for Case Study Help offered listed below if Glenorna Coffee chooses to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional growth capacity of 10.1% which may be a great enough specific niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder.

Price: The suggested cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This cost would not include the expense of the 'vari idea' or the 'glumetic suggestion'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop requires to purchase the item on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their day-to-day upkeep tasks.

Glenorna Coffee would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Glenorna Coffee for introducing Case Study Help.

Place: A distribution design where Glenorna Coffee straight sends out the product to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Glenorna Coffee. Since the sales group is currently engaged in offering instant adhesives and they do not have know-how in selling dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: A low advertising spending plan needs to have been assigned to Case Study Help but the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is advised for initially presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in automobile maintenance stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Glenorna Coffee Case Study Analysis

Although a recommended strategy in the form of a marketing mix has been gone over for Case Study Help, the fact still stays that the product would not match Glenorna Coffee line of product. We have a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be around $49377 if 250 systems of each model are made each year according to the strategy. Nevertheless, the initial prepared advertising is roughly $52000 each year which would be putting a pressure on the business's resources leaving Glenorna Coffee with a negative net income if the costs are allocated to Case Study Help only.

The reality that Glenorna Coffee has actually already incurred an initial financial investment of $48000 in the form of capital cost and model development shows that the profits from Case Study Help is not enough to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a more suitable option specifically of it is affecting the sale of the company's earnings creating designs.