Green Valley Medical Center Case Study Help Checklist

Green Valley Medical Center Case Study Help Checklist

Green Valley Medical Center Case Study Solution
Green Valley Medical Center Case Study Help
Green Valley Medical Center Case Study Analysis

Analyses for Evaluating Green Valley Medical Center decision to launch Case Study Solution

The following area focuses on the of marketing for Green Valley Medical Center where the business's customers, competitors and core proficiencies have actually evaluated in order to justify whether the choice to launch Case Study Help under Green Valley Medical Center brand would be a practical alternative or not. We have firstly taken a look at the type of customers that Green Valley Medical Center handle while an assessment 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 Green Valley Medical Center name.
Green Valley Medical Center Case Study Solution

Customer Analysis

Both the groups use Green Valley Medical Center high efficiency adhesives while the company is not only included in the production of these adhesives however likewise markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Green Valley Medical Center compared to that of instantaneous adhesives.

The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we look at a breakdown of Green Valley Medical Center potential market or client groups, we can see that the business sells to OEMs (Initial Equipment Producers), Do-it-Yourself consumers, repair work and overhauling business (MRO) and producers dealing in products made from leather, metal, wood and plastic. This diversity in customers recommends that Green Valley Medical Center can target has various choices in regards to segmenting the market for its new item specifically as each of these groups would be requiring the same kind of product with particular modifications in quantity, demand or product packaging. The consumer is not price delicate or brand mindful so releasing a low priced dispenser under Green Valley Medical Center name is not an advised choice.

Company Analysis

Green Valley Medical Center is not just a manufacturer of adhesives however delights in market management in the instantaneous adhesive industry. The business has its own knowledgeable and qualified sales force which includes worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core skills are not limited to adhesive manufacturing only as Green Valley Medical Center also specializes in making adhesive dispensing devices to help with the use of its items. This double production strategy provides Green Valley Medical Center an edge over competitors considering that none of the competitors of dispensing equipment makes immediate adhesives. In addition, none of these competitors offers straight to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Green Valley Medical Center, it is crucial to highlight the business's weak points.

The business's sales staff is experienced in training suppliers, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It should also be noted that the suppliers are showing hesitation when it comes to offering devices that requires maintenance which increases the obstacles of offering equipment under a particular brand name.

If we look at Green Valley Medical Center line of product in adhesive equipment particularly, the business has products targeted at the high-end of the marketplace. The possibility of sales cannibalization exists if Green Valley Medical Center sells Case Study Help under the exact same portfolio. Given the reality that Case Study Help is priced lower than Green Valley Medical Center high-end product line, sales cannibalization would definitely be affecting Green Valley Medical Center sales income if the adhesive equipment is sold under the company's trademark name.

We can see sales cannibalization affecting Green Valley Medical Center 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible hazard which might reduce Green Valley Medical Center revenue. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a good 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.

In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or price consciousness which gives us 2 extra factors for not introducing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Green Valley Medical Center would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sections with Green Valley Medical Center enjoying management and a combined market share of 75% with two other industry players, Eastman and Permabond. While market competition between these gamers could be called 'intense' as the customer is not brand name conscious and each of these gamers has prominence in terms of market share, the fact still stays that the market is not filled and still has a number of market sectors which can be targeted as potential specific niche markets even when releasing an adhesive. We can even point out the reality that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for immediate adhesives offers growth capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low knowledge about the item. While business like Green Valley Medical Center have managed to train distributors concerning adhesives, the last consumer is dependent on distributors. Roughly 72% of sales are made straight by makers and suppliers for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by three players, it could be stated that the supplier enjoys a higher bargaining power compared to the buyer. Nevertheless, the reality stays that the supplier does not have much impact over the purchaser at this moment especially as the buyer does disappoint brand name acknowledgment or cost sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market indicates that the marketplace allows ease of entry. If we look at Green Valley Medical Center in specific, the company has dual capabilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Possible hazards in equipment giving market are low which reveals the possibility of developing brand name awareness in not only instant adhesives however also in giving adhesives as none of the market gamers has actually managed to place itself in double abilities.

Danger of Substitutes: The hazard of substitutes in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact stays that if Green Valley Medical Center 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

Green Valley Medical Center Case Study Help

Despite the fact that our 3C analysis has provided various reasons for not introducing Case Study Help under Green Valley Medical Center name, we have a suggested marketing mix for Case Study Help provided below if Green Valley Medical Center chooses to proceed with the launch.

Product & Target Market: The target market selected 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 good enough specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the truth that the Diy market can likewise be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.

Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to purchase the item on his own.

Green Valley Medical Center would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Green Valley Medical Center for launching Case Study Help.

Place: A distribution model where Green Valley Medical Center straight sends the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be used by Green Valley Medical Center. Considering that the sales team is already participated in selling immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be costly especially as each sales call expenses roughly $120. The distributors are already offering dispensers so selling Case Study Help through them would be a favorable option.

Promotion: Although a low promotional spending plan should have been assigned to Case Study Help but the truth 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 plan costing $51816 is suggested for initially introducing the item in the market. The planned ads in publications would be targeted at mechanics in automobile maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Green Valley Medical Center Case Study Analysis

A suggested plan of action in the form of a marketing mix has been discussed for Case Study Help, the truth still stays that the item would not complement Green Valley Medical Center item line. We have a look at appendix 2, we can see how the overall gross success for the two designs is anticipated to be approximately $49377 if 250 systems of each model are manufactured annually as per the strategy. Nevertheless, the initial prepared marketing is around $52000 per year which would be putting a stress on the business's resources leaving Green Valley Medical Center with an unfavorable earnings if the expenses are allocated to Case Study Help just.

The reality that Green Valley Medical Center has currently incurred a preliminary financial investment of $48000 in the form of capital expense and prototype development shows that the revenue from Case Study Help is insufficient to carry out the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more effective choice especially of it is impacting the sale of the company's income producing designs.