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Great Atlantic And Pacific Tea Company Inc Case Study Solution
Great Atlantic And Pacific Tea Company Inc Case Study Help
Great Atlantic And Pacific Tea Company Inc Case Study Analysis
The following section focuses on the of marketing for Great Atlantic And Pacific Tea Company Inc where the business's consumers, rivals and core competencies have examined in order to justify whether the choice to release Case Study Help under Great Atlantic And Pacific Tea Company Inc brand name would be a possible alternative or not. We have actually to start with looked at the kind of clients that Great Atlantic And Pacific Tea Company Inc deals in while an assessment 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 Great Atlantic And Pacific Tea Company Inc name.
Great Atlantic And Pacific Tea Company Inc clients can be segmented into 2 groups, commercial clients and last consumers. Both the groups use Great Atlantic And Pacific Tea Company Inc high performance adhesives while the company is not only involved in the production of these adhesives but also markets them to these consumer groups. There are two types of products that are being sold to these potential markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of immediate adhesives for this analysis because the marketplace for the latter has a lower potential for Great Atlantic And Pacific Tea Company Inc compared to that of immediate adhesives.
The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Great Atlantic And Pacific Tea Company Inc potential market or client groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and producers dealing in items made of leather, metal, wood and plastic. This variety in customers suggests that Great Atlantic And Pacific Tea Company Inc can target has different choices in regards to segmenting the marketplace for its new product especially as each of these groups would be requiring the very same kind of item with respective modifications in packaging, quantity or need. Nevertheless, the consumer is not rate delicate or brand mindful so releasing a low priced dispenser under Great Atlantic And Pacific Tea Company Inc name is not an advised choice.
Great Atlantic And Pacific Tea Company Inc is not simply a manufacturer of adhesives however enjoys market leadership in the immediate adhesive industry. The business has its own proficient and competent sales force which adds worth to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives. Great Atlantic And Pacific Tea Company Inc believes in exclusive circulation as shown by the reality that it has actually selected to sell through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach via suppliers. The company's reach is not limited to North America only as it also enjoys international sales. With 1400 outlets spread all throughout North America, Great Atlantic And Pacific Tea Company Inc has its in-house production plants rather than using out-sourcing as the favored strategy.
Core proficiencies are not restricted to adhesive production only as Great Atlantic And Pacific Tea Company Inc likewise concentrates on making adhesive giving devices to assist in making use of its items. This double production strategy offers Great Atlantic And Pacific Tea Company Inc an edge over competitors since none of the competitors of dispensing equipment makes immediate adhesives. In addition, none of these competitors offers directly to the customer either and utilizes distributors for reaching out to consumers. While we are looking at the strengths of Great Atlantic And Pacific Tea Company Inc, it is crucial to highlight the business's weak points.
Although the business's sales personnel is proficient in training distributors, the fact stays that the sales group is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. However, it needs to likewise be noted that the suppliers are revealing reluctance when it concerns selling equipment that requires servicing which increases the difficulties of offering equipment under a particular trademark name.
The business has actually products aimed at the high end of the market if we look at Great Atlantic And Pacific Tea Company Inc item line in adhesive equipment particularly. If Great Atlantic And Pacific Tea Company Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Great Atlantic And Pacific Tea Company Inc high-end product line, sales cannibalization would certainly be impacting Great Atlantic And Pacific Tea Company Inc sales income if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Great Atlantic And Pacific Tea Company Inc 27A Pencil Applicator which is priced at $275. There is another possible danger which might reduce Great Atlantic And Pacific Tea Company Inc profits if Case Study Help is introduced under the business's brand name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
In addition, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or price consciousness which offers us two extra factors for not introducing a low priced product under the business's brand.
The competitive environment of Great Atlantic And Pacific Tea Company Inc 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 purchaser in this industry is low specifically as the buyer has low knowledge about the product. While business like Great Atlantic And Pacific Tea Company Inc have actually handled to train distributors regarding adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three players, it could be said that the provider takes pleasure in a greater bargaining power compared to the buyer. Nevertheless, the reality remains that the supplier does not have much impact over the buyer at this moment specifically as the purchaser does disappoint brand name acknowledgment or rate sensitivity. This suggests that the distributor has the higher power when it concerns the adhesive market while the buyer and the maker do not have a major 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 rivals in the instantaneous adhesive market suggests that the marketplace allows ease of entry. If we look at Great Atlantic And Pacific Tea Company Inc in particular, the company has double abilities in terms of being a maker of adhesive dispensers and instantaneous adhesives. Prospective dangers in devices giving industry are low which shows the possibility of developing brand awareness in not just instant adhesives but also in dispensing adhesives as none of the market players has handled to place itself in double capabilities.
Danger of Substitutes: The risk of alternatives in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality stays that if Great Atlantic And Pacific Tea Company Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided different reasons for not launching Case Study Help under Great Atlantic And Pacific Tea Company Inc name, we have actually a suggested marketing mix for Case Study Help given below if Great Atlantic And Pacific Tea Company Inc chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a variety of factors. There are presently 89257 facilities in this section 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 sufficient niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being cost 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 select either of the two devices or not.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This rate would not include the cost 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 a motor vehicle upkeep shop requires to buy the item on his own. This would increase the possibility of affecting mechanics to buy the item for use in their everyday upkeep tasks.
Great Atlantic And Pacific Tea Company Inc would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Great Atlantic And Pacific Tea Company Inc for launching Case Study Help.
Place: A circulation design where Great Atlantic And Pacific Tea Company Inc directly sends the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Great Atlantic And Pacific Tea Company Inc. Given that the sales team is already participated in offering immediate adhesives and they do not have know-how in offering dispensers, including them in the selling procedure would be pricey specifically as each sales call expenses roughly $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: Although a low marketing budget should have been appointed to Case Study Help but 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 advertising plan costing $51816 is advised for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in automobile upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
