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Hanson Industries B Case Study Help Checklist

Hanson Industries B Case Study Help Checklist

Hanson Industries B Case Study Solution
Hanson Industries B Case Study Help
Hanson Industries B Case Study Analysis



Analyses for Evaluating Hanson Industries B decision to launch Case Study Solution


The following section concentrates on the of marketing for Hanson Industries B where the company's customers, competitors and core competencies have actually evaluated in order to validate whether the choice to introduce Case Study Help under Hanson Industries B trademark name would be a practical choice or not. We have actually firstly taken a look at the kind of consumers that Hanson Industries B handle while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Hanson Industries B name.
Hanson Industries B Case Study Solution

Customer Analysis

Both the groups use Hanson Industries B 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 customers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Hanson Industries B compared to that of instant adhesives.

The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Hanson Industries B possible market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself customers, repair work and upgrading business (MRO) and producers handling items made from leather, wood, metal and plastic. This diversity in customers suggests that Hanson Industries B can target has numerous choices in terms of segmenting the market for its brand-new item especially as each of these groups would be needing the same type of product with particular modifications in product packaging, amount or demand. However, the customer is not price delicate or brand name conscious so releasing a low priced dispenser under Hanson Industries B name is not a recommended alternative.

Company Analysis

Hanson Industries B is not simply a maker of adhesives but delights in market management in the instant adhesive industry. The business has its own competent and certified sales force which includes value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.

Core proficiencies are not limited to adhesive manufacturing only as Hanson Industries B also concentrates on making adhesive dispensing devices to help with the use of its products. This dual production strategy gives Hanson Industries B an edge over competitors because none of the rivals of giving devices makes immediate adhesives. In addition, none of these competitors offers directly to the customer either and makes use of suppliers for reaching out to consumers. While we are looking at the strengths of Hanson Industries B, it is important to highlight the company's weak points.

Although the business's sales staff is knowledgeable in training suppliers, the truth remains that the sales team is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It needs to also be kept in mind that the distributors are revealing reluctance when it comes to offering devices that requires maintenance which increases the difficulties of offering devices under a particular brand name.

If we look at Hanson Industries B line of product in adhesive equipment particularly, the business has items focused on the high-end of the market. If Hanson Industries B offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Hanson Industries B high-end product line, sales cannibalization would certainly be impacting Hanson Industries B sales profits if the adhesive devices is offered under the company's brand.

We can see sales cannibalization affecting Hanson Industries B 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Hanson Industries B revenue if Case Study Help is released under the company's brand. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or rate consciousness which offers us 2 extra reasons for not releasing a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Hanson Industries B would be studied by means of Porter's five 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 segments with Hanson Industries B enjoying leadership and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While industry rivalry in between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these players has prominence in regards to market share, the fact still stays that the market is not saturated and still has several market sectors which can be targeted as prospective niche markets even when releasing an adhesive. We can even point out the truth that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for immediate adhesives offers growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the purchaser has low knowledge about the product. While companies like Hanson Industries B have managed to train distributors regarding adhesives, the last consumer depends on suppliers. Roughly 72% of sales are made straight by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered 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 truth stays that the supplier does not have much influence over the buyer at this point specifically as the buyer does not show brand recognition or price sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the real sales, this indicates that the supplier has the higher power.

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 shows that the market enables ease of entry. If we look at Hanson Industries B in specific, the business has double abilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Prospective risks in devices dispensing market are low which shows the possibility of developing brand awareness in not just instantaneous adhesives however likewise in dispensing adhesives as none of the market gamers has managed to place itself in dual abilities.

Danger of Substitutes: The risk of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Hanson Industries B presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Hanson Industries B Case Study Help


Despite the fact that our 3C analysis has actually given different reasons for not releasing Case Study Help under Hanson Industries B name, we have a suggested marketing mix for Case Study Help provided listed below if Hanson Industries B chooses to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a variety of factors. There are presently 89257 establishments in this sector and a high use of around 58900 lbs. is being used by 36.1 % of the market. This market has an additional growth potential of 10.1% which may be a sufficient niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can choose whether he wishes to go with either of the two accessories or not.

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

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

Place: A distribution design where Hanson Industries B straight sends the product to the local supplier and keeps a 10% drop delivery allowance for the distributor would be used by Hanson Industries B. Since the sales team is already taken part in selling instant adhesives and they do not have competence in selling dispensers, including them in the selling process would be pricey specifically as each sales call costs roughly $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: Although a low promotional budget plan needs to have been appointed to Case Study Help but the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended advertising strategy costing $51816 is advised for initially presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Hanson Industries B Case Study Analysis

A suggested plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the fact still remains that the product would not complement Hanson Industries B product line. We have a look at appendix 2, we can see how the total gross success for the two designs is expected to be around $49377 if 250 systems of each model are made annually according to the plan. The preliminary planned marketing is approximately $52000 per year which would be putting a stress on the company's resources leaving Hanson Industries B with an unfavorable net earnings if the expenses are designated to Case Study Help only.

The fact that Hanson Industries B has already sustained an initial investment of $48000 in the form of capital expense and prototype development indicates that the profits from Case Study Help is inadequate to undertake the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a preferable alternative especially of it is affecting the sale of the company's income creating designs.



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