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Hanson Ski Products Case Study Solution
Hanson Ski Products Case Study Help
Hanson Ski Products Case Study Analysis
The following section concentrates on the of marketing for Hanson Ski Products where the company's customers, rivals and core competencies have assessed in order to validate whether the decision to launch Case Study Help under Hanson Ski Products brand name would be a possible alternative or not. We have firstly taken a look at the kind of customers that Hanson Ski Products deals in while an evaluation 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 Hanson Ski Products name.
Hanson Ski Products customers can be segmented into two groups, final customers and industrial consumers. Both the groups utilize Hanson Ski Products high performance adhesives while the company is not only associated with the production of these adhesives however also markets them to these customer groups. There are 2 types of items that are being sold to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be focusing on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Hanson Ski Products compared to that of instant adhesives.
The total market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Hanson Ski Products potential market or client groups, we can see that the company offers to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair and overhauling companies (MRO) and makers dealing in items made of leather, plastic, wood and metal. This diversity in consumers suggests that Hanson Ski Products can target has different choices in terms of segmenting the market for its new item particularly as each of these groups would be requiring the very same type of product with respective changes in need, amount or product packaging. Nevertheless, the consumer is not cost delicate or brand mindful so launching a low priced dispenser under Hanson Ski Products name is not a recommended option.
Hanson Ski Products is not simply a producer of adhesives but takes pleasure in market management in the instantaneous adhesive market. The company has its own skilled and competent sales force which adds value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives.
Core competences are not limited to adhesive manufacturing just as Hanson Ski Products also specializes in making adhesive giving devices to help with making use of its items. This double production technique provides Hanson Ski Products an edge over rivals because none of the competitors of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors offers directly to the consumer either and utilizes suppliers for connecting to consumers. While we are looking at the strengths of Hanson Ski Products, it is important to highlight the company's weaknesses.
The company's sales personnel is skilled in training suppliers, the fact stays that the sales team is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It should also be noted that the distributors are revealing reluctance when it comes to selling equipment that needs servicing which increases the obstacles of offering equipment under a particular brand name.
If we take a look at Hanson Ski Products product line in adhesive devices particularly, the company has items focused on the high end of the market. If Hanson Ski Products offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Hanson Ski Products high-end line of product, sales cannibalization would definitely be affecting Hanson Ski Products sales revenue if the adhesive devices is offered under the company's trademark name.
We can see sales cannibalization impacting Hanson Ski Products 27A Pencil Applicator which is priced at $275. There is another possible risk which could decrease Hanson Ski Products revenue if Case Study Help is released under the business's brand. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Additionally, if we take a look at the market in general, the adhesives market does not show brand name orientation or cost consciousness which provides us two extra factors for not releasing a low priced item under the business's brand name.
The competitive environment of Hanson Ski Products would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low understanding about the item. While companies like Hanson Ski Products have actually managed to train distributors regarding adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers 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 dominated by 3 gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the buyer. The reality remains that the provider does not have much impact over the buyer at this point particularly as the purchaser does not reveal brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the actual sales, this shows that the supplier has the higher power.
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 instantaneous adhesive market shows that the marketplace allows ease of entry. If we look at Hanson Ski Products in particular, the business has dual capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Potential dangers in equipment giving market are low which reveals the possibility of producing brand awareness in not only instant adhesives but also in dispensing adhesives as none of the market gamers has managed to position itself in double capabilities.
Hazard of Substitutes: The threat of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Hanson Ski Products introduced 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 given different factors for not releasing Case Study Help under Hanson Ski Products name, we have a suggested marketing mix for Case Study Help offered listed below if Hanson Ski Products chooses to proceed with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a number of factors. There are currently 89257 facilities in this sector and a high use of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an extra growth potential of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the reality that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wishes to go with 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 distributors or via direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor lorry upkeep store requires to purchase the product on his own.
Hanson Ski Products would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net profitability for Hanson Ski Products for releasing Case Study Help.
Place: A circulation model where Hanson Ski Products directly sends out the item to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Hanson Ski Products. Since the sales group is currently engaged in selling instant adhesives and they do not have knowledge in selling dispensers, including them in the selling procedure would be costly particularly as each sales call expenses around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low promotional spending plan ought to have been designated to Case Study Help but the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended marketing strategy costing $51816 is recommended for initially presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in automobile upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
