The following area concentrates on the of marketing for Goodyear Tire And Rubber Co 1986 where the company's consumers, rivals and core competencies have assessed in order to validate whether the choice to launch Case Study Help under Goodyear Tire And Rubber Co 1986 brand would be a feasible choice or not. We have first of all taken a look at the type of customers that Goodyear Tire And Rubber Co 1986 handle while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Goodyear Tire And Rubber Co 1986 name.
Goodyear Tire And Rubber Co 1986 consumers can be segmented into 2 groups, industrial clients and last customers. Both the groups use Goodyear Tire And Rubber Co 1986 high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these client groups. There are two types of items that are being sold to these possible markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the consumers of instant adhesives for this analysis because the marketplace for the latter has a lower potential for Goodyear Tire And Rubber Co 1986 compared to that of instantaneous adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have been recognized earlier.If we take a look at a breakdown of Goodyear Tire And Rubber Co 1986 potential market or customer groups, we can see that the company sells to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair and revamping companies (MRO) and producers dealing in items made from leather, plastic, wood and metal. This variety in consumers recommends that Goodyear Tire And Rubber Co 1986 can target has numerous alternatives in regards to segmenting the marketplace for its new product specifically as each of these groups would be needing the very same kind of item with particular changes in quantity, product packaging or demand. However, the consumer is not rate sensitive or brand conscious so launching a low priced dispenser under Goodyear Tire And Rubber Co 1986 name is not a recommended alternative.
Goodyear Tire And Rubber Co 1986 is not just a maker of adhesives however takes pleasure in market leadership in the instant adhesive market. The company has its own skilled and competent sales force which includes value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core skills are not restricted to adhesive production only as Goodyear Tire And Rubber Co 1986 also specializes in making adhesive dispensing devices to facilitate using its products. This dual production method gives Goodyear Tire And Rubber Co 1986 an edge over competitors given that none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these rivals offers directly to the consumer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Goodyear Tire And Rubber Co 1986, it is necessary to highlight the company's weaknesses too.
The business's sales personnel is experienced in training suppliers, the fact remains that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It should likewise be kept in mind that the suppliers are showing reluctance when it comes to selling equipment that needs servicing which increases the obstacles of selling devices under a particular brand name.
The business has products intended at the high end of the market if we look at Goodyear Tire And Rubber Co 1986 product line in adhesive devices particularly. The possibility of sales cannibalization exists if Goodyear Tire And Rubber Co 1986 offers Case Study Help under the exact same portfolio. Given the reality that Case Study Help is priced lower than Goodyear Tire And Rubber Co 1986 high-end line of product, sales cannibalization would definitely be affecting Goodyear Tire And Rubber Co 1986 sales earnings if the adhesive devices is sold under the company's brand name.
We can see sales cannibalization impacting Goodyear Tire And Rubber Co 1986 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Goodyear Tire And Rubber Co 1986 income if Case Study Help is introduced under the business's trademark name. The fact that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or rate consciousness which gives us 2 extra reasons for not releasing a low priced product under the company's trademark name.
The competitive environment of Goodyear Tire And Rubber Co 1986 would be studied through Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low understanding about the product. While companies like Goodyear Tire And Rubber Co 1986 have handled to train distributors relating to adhesives, the final customer depends on distributors. Approximately 72% of sales are made straight by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by three gamers, it could be stated that the provider delights in a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the provider does not have much influence over the buyer at this point specifically as the buyer does disappoint brand recognition or rate sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the purchaser and the maker 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 shown by foreign Japanese competitors in the immediate adhesive market indicates that the market permits ease of entry. If we look at Goodyear Tire And Rubber Co 1986 in particular, the company has dual abilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Possible threats in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not only instantaneous adhesives but likewise in giving adhesives as none of the industry players has handled to position itself in dual capabilities.
Risk of Substitutes: The danger of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality remains that if Goodyear Tire And Rubber Co 1986 presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided numerous reasons for not releasing Case Study Help under Goodyear Tire And Rubber Co 1986 name, we have actually a recommended marketing mix for Case Study Help provided below if Goodyear Tire And Rubber Co 1986 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 facilities in this sector and a high use of around 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can choose whether he wishes to select either of the two devices or not.
Price: The recommended cost 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 include the cost of the 'vari tip' or the 'glumetic tip'. A price below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to acquire the product on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their day-to-day upkeep jobs.
Goodyear Tire And Rubber Co 1986 would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net success for Goodyear Tire And Rubber Co 1986 for introducing Case Study Help.
Place: A distribution model where Goodyear Tire And Rubber Co 1986 directly sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be used by Goodyear Tire And Rubber Co 1986. Because the sales team is currently participated in offering instantaneous adhesives and they do not have know-how in selling dispensers, involving them in the selling process would be expensive specifically as each sales call expenses approximately $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: A low promotional budget should have been designated to Case Study Help but the reality that the dispenser is an innovation 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 initially presenting the item in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle upkeep shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).