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Habitat For Humanity International In South Africa Case Study Help Checklist

Habitat For Humanity International In South Africa Case Study Help Checklist

Habitat For Humanity International In South Africa Case Study Solution
Habitat For Humanity International In South Africa Case Study Help
Habitat For Humanity International In South Africa Case Study Analysis



3 C Analyses for Evaluating Habitat For Humanity International In South Africa decision to launch Case Study Solution


The following area focuses on the 3Cs of marketing for Habitat For Humanity International In South Africa where the company's clients, rivals and core competencies have examined in order to justify whether the choice to launch Case Study Help under Habitat For Humanity International In South Africa brand name would be a possible choice or not. We have actually to start with looked at the type of clients that Habitat For Humanity International In South Africa handle while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Habitat For Humanity International In South Africa name.
Habitat For Humanity International In South Africa Case Study Solution

Customer Analysis

Both the groups utilize Habitat For Humanity International In South Africa high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower capacity for Habitat For Humanity International In South Africa compared to that of immediate adhesives.

The total market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Habitat For Humanity International In South Africa prospective market or client groups, we can see that the company sells to OEMs (Original Devices Producers), Do-it-Yourself customers, repair work and revamping companies (MRO) and makers handling products made from leather, plastic, wood and metal. This diversity in clients recommends that Habitat For Humanity International In South Africa can target has different alternatives in terms of segmenting the market for its brand-new item particularly as each of these groups would be needing the same type of product with particular modifications in packaging, quantity or need. The client is not cost sensitive or brand name conscious so releasing a low priced dispenser under Habitat For Humanity International In South Africa name is not a suggested option.

Company Analysis

Habitat For Humanity International In South Africa is not just a manufacturer of adhesives but takes pleasure in market management in the instant adhesive market. The business has its own knowledgeable and competent sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Habitat For Humanity International In South Africa believes in unique circulation as indicated by the reality that it has selected to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach via suppliers. The company's reach is not limited to The United States and Canada just as it also takes pleasure in worldwide sales. With 1400 outlets spread all throughout North America, Habitat For Humanity International In South Africa has its internal production plants rather than using out-sourcing as the favored method.

Core competences are not limited to adhesive manufacturing only as Habitat For Humanity International In South Africa also specializes in making adhesive dispensing devices to assist in making use of its items. This dual production method gives Habitat For Humanity International In South Africa an edge over rivals given that none of the competitors of dispensing equipment makes immediate adhesives. Additionally, none of these rivals offers straight to the customer either and makes use of distributors for connecting to clients. While we are taking a look at the strengths of Habitat For Humanity International In South Africa, it is essential to highlight the company's weak points also.

Although the business's sales personnel is knowledgeable in training suppliers, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. Nevertheless, it ought to likewise be noted that the distributors are showing hesitation when it pertains to offering devices that requires maintenance which increases the challenges of offering devices under a particular brand.

If we look at Habitat For Humanity International In South Africa line of product in adhesive equipment especially, the business has items targeted at the high end of the marketplace. The possibility of sales cannibalization exists if Habitat For Humanity International In South Africa offers Case Study Help under the very same portfolio. Provided the truth that Case Study Help is priced lower than Habitat For Humanity International In South Africa high-end product line, sales cannibalization would certainly be affecting Habitat For Humanity International In South Africa sales profits if the adhesive equipment is offered under the company's brand name.

We can see sales cannibalization affecting Habitat For Humanity International In South Africa 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Habitat For Humanity International In South Africa revenue if Case Study Help is released under the company's brand. The fact that $175000 has actually 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 marketplace in general, the adhesives market does disappoint brand orientation or rate awareness which gives us two additional factors for not launching a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Habitat For Humanity International In South Africa would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high development potential due to the presence of fragmented segments with Habitat For Humanity International In South Africa enjoying leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While market rivalry between these players could be called 'extreme' as the consumer is not brand name conscious and each of these gamers has prominence in regards to market share, the truth still stays that the market is not saturated and still has several market segments which can be targeted as possible niche markets even when launching an adhesive. Nevertheless, we can even point out the reality that sales cannibalization might be causing market competition in the adhesive dispenser market while the market for immediate adhesives provides development capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the product. While business like Habitat For Humanity International In South Africa have actually managed to train suppliers concerning adhesives, the final customer depends on distributors. Approximately 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by 3 gamers, it could be said that the supplier enjoys a higher bargaining power compared to the buyer. However, the reality remains that the supplier does not have much influence over the buyer at this moment specifically as the buyer does not show brand name recognition or cost level of sensitivity. This suggests that the supplier has the greater power when it concerns the adhesive market while the maker and the buyer do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace enables ease of entry. If we look at Habitat For Humanity International In South Africa in specific, the company has double capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Potential dangers in devices dispensing market are low which shows the possibility of creating brand awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the industry players has actually handled to place itself in dual abilities.

Threat of Substitutes: The danger of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, built-in applicators, pencil applicators and advanced consoles. The fact stays that if Habitat For Humanity International In South Africa presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).


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

Habitat For Humanity International In South Africa Case Study Help


Despite the fact that our 3C analysis has actually provided numerous reasons for not introducing Case Study Help under Habitat For Humanity International In South Africa name, we have a recommended marketing mix for Case Study Help given below if Habitat For Humanity International In South Africa decides to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an additional growth capacity of 10.1% which might be a good sufficient niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered 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 offered through distributors or by means of direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor lorry upkeep store needs to buy the product on his own.

Habitat For Humanity International In South Africa would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Habitat For Humanity International In South Africa for introducing Case Study Help.

Place: A distribution design where Habitat For Humanity International In South Africa straight sends out the item to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Habitat For Humanity International In South Africa. Since the sales team is currently participated in offering instant adhesives and they do not have knowledge in offering dispensers, including them in the selling procedure would be expensive specifically as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable option.

Promotion: A low marketing budget plan needs to have been appointed 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 costs sustained for production, the recommended marketing strategy costing $51816 is recommended for initially introducing the product in the market. The prepared ads in publications would be targeted at mechanics in lorry maintenance stores. (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
Habitat For Humanity International In South Africa Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has been talked about for Case Study Help, the truth still stays that the product would not complement Habitat For Humanity International In South Africa product line. We take a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be approximately $49377 if 250 systems of each model are manufactured per year according to the plan. However, the preliminary prepared marketing is around $52000 annually which would be putting a stress on the company's resources leaving Habitat For Humanity International In South Africa with a negative earnings if the costs are allocated to Case Study Help just.

The fact that Habitat For Humanity International In South Africa has currently incurred a preliminary financial investment of $48000 in the form of capital expense and model development shows that the earnings 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 revealing low flexibility of need is not a more effective alternative especially of it is impacting the sale of the business's earnings generating designs.



Executive Summary Porters Five Forces Analysis Pestel Analysis Financial Analysis
Generic Strategy Vrine Analysis