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Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Help Checklist

Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Help Checklist

Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Solution
Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Help
Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Analysis



Analyses for Evaluating Harley Davidson Inc Motorcycle Manufacturer Or Financing Company decision to launch Case Study Solution


The following area concentrates on the of marketing for Harley Davidson Inc Motorcycle Manufacturer Or Financing Company where the company's consumers, competitors and core competencies have assessed in order to justify whether the decision to introduce Case Study Help under Harley Davidson Inc Motorcycle Manufacturer Or Financing Company brand name would be a feasible choice or not. We have firstly taken a look at the type of consumers that Harley Davidson Inc Motorcycle Manufacturer Or Financing Company handle while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Harley Davidson Inc Motorcycle Manufacturer Or Financing Company name.
Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Solution

Customer Analysis

Harley Davidson Inc Motorcycle Manufacturer Or Financing Company consumers can be segmented into two groups, industrial consumers and final consumers. Both the groups utilize Harley Davidson Inc Motorcycle Manufacturer Or Financing Company high performance adhesives while the company is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 types of products that are being offered to these prospective markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Harley Davidson Inc Motorcycle Manufacturer Or Financing Company compared to that of immediate adhesives.

The total market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have been recognized earlier.If we take a look at a breakdown of Harley Davidson Inc Motorcycle Manufacturer Or Financing Company possible market or customer groups, we can see that the company sells to OEMs (Original Equipment Manufacturers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and producers handling products made from leather, plastic, wood and metal. This diversity in consumers recommends that Harley Davidson Inc Motorcycle Manufacturer Or Financing Company can target has different options in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be requiring the exact same kind of item with particular modifications in amount, need or packaging. The consumer is not cost delicate or brand name conscious so introducing a low priced dispenser under Harley Davidson Inc Motorcycle Manufacturer Or Financing Company name is not an advised alternative.

Company Analysis

Harley Davidson Inc Motorcycle Manufacturer Or Financing Company is not simply a maker of adhesives however enjoys market management in the instant adhesive market. The business has its own experienced and competent sales force which includes value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Harley Davidson Inc Motorcycle Manufacturer Or Financing Company believes in exclusive distribution as shown by the fact that it has selected to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be checked out for broadening reach via suppliers. The company's reach is not restricted to North America only as it also delights in international sales. With 1400 outlets spread all throughout North America, Harley Davidson Inc Motorcycle Manufacturer Or Financing Company has its internal production plants rather than using out-sourcing as the preferred method.

Core skills are not restricted to adhesive manufacturing just as Harley Davidson Inc Motorcycle Manufacturer Or Financing Company likewise concentrates on making adhesive giving equipment to facilitate making use of its items. This double production technique provides Harley Davidson Inc Motorcycle Manufacturer Or Financing Company an edge over rivals given that none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these competitors offers directly to the customer either and uses suppliers for reaching out to customers. While we are taking a look at the strengths of Harley Davidson Inc Motorcycle Manufacturer Or Financing Company, it is very important to highlight the business's weaknesses as well.

The business's sales personnel is proficient in training distributors, the truth stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it should likewise be noted that the distributors are revealing unwillingness when it comes to selling devices that needs servicing which increases the challenges of offering equipment under a particular trademark name.

If we take a look at Harley Davidson Inc Motorcycle Manufacturer Or Financing Company product line in adhesive devices particularly, the business has actually products focused on the high end of the market. If Harley Davidson Inc Motorcycle Manufacturer Or Financing Company offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Harley Davidson Inc Motorcycle Manufacturer Or Financing Company high-end line of product, sales cannibalization would absolutely be affecting Harley Davidson Inc Motorcycle Manufacturer Or Financing Company sales earnings if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization impacting Harley Davidson Inc Motorcycle Manufacturer Or Financing Company 27A Pencil Applicator which is priced at $275. There is another possible danger which could decrease Harley Davidson Inc Motorcycle Manufacturer Or Financing Company earnings if Case Study Help is released under the company's brand name. The reality that $175000 has been invested in promoting SuperBonder recommends that it is not a good time for launching 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 disappoint brand name orientation or rate consciousness which gives us two extra factors for not releasing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Harley Davidson Inc Motorcycle Manufacturer Or Financing Company would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the existence of fragmented sections with Harley Davidson Inc Motorcycle Manufacturer Or Financing Company taking pleasure in management and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry competition in between these gamers could be called 'extreme' as the customer is not brand name conscious and each of these gamers has prominence in terms of market share, the fact still remains that the industry is not saturated and still has numerous market sectors which can be targeted as prospective niche markets even when introducing an adhesive. We can even point out the reality that sales cannibalization may be leading to market rivalry in the adhesive dispenser market while the market for instant adhesives offers growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low understanding about the product. While business like Harley Davidson Inc Motorcycle Manufacturer Or Financing Company have handled to train distributors regarding adhesives, the last consumer depends on distributors. Around 72% of sales are made directly by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three players, it could be said that the supplier delights in a higher bargaining power compared to the buyer. Nevertheless, the truth stays that the provider does not have much impact over the buyer at this moment particularly as the buyer does disappoint brand name recognition or cost sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a significant control over the actual sales, this shows that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market suggests that the market allows ease of entry. If we look at Harley Davidson Inc Motorcycle Manufacturer Or Financing Company in particular, the company has dual capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective risks in equipment giving industry are low which shows the possibility of creating brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the industry players has handled to place itself in dual abilities.

Danger of Substitutes: The hazard of alternatives in the instant adhesive market 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 Harley Davidson Inc Motorcycle Manufacturer Or Financing Company presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).


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

Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Help


Despite the fact that our 3C analysis has actually provided different factors for not introducing Case Study Help under Harley Davidson Inc Motorcycle Manufacturer Or Financing Company name, we have actually a suggested marketing mix for Case Study Help offered below if Harley Davidson Inc Motorcycle Manufacturer Or Financing Company chooses to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra development capacity of 10.1% which may be a great enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. This cost would not consist of the cost of the 'vari pointer' or the 'glumetic pointer'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store needs to purchase the product on his own. This would increase the possibility of affecting mechanics to acquire the product for usage in their daily maintenance tasks.

Harley Davidson Inc Motorcycle Manufacturer Or Financing Company would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Harley Davidson Inc Motorcycle Manufacturer Or Financing Company for introducing Case Study Help.

Place: A distribution model where Harley Davidson Inc Motorcycle Manufacturer Or Financing Company straight sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Harley Davidson Inc Motorcycle Manufacturer Or Financing Company. Since the sales team is already participated in selling instant adhesives and they do not have expertise in selling dispensers, involving them in the selling process would be costly especially as each sales call costs around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable option.

Promotion: Although a low promotional budget needs to have been appointed to Case Study Help however the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is suggested for at first presenting the product in the market. The planned ads in magazines would be targeted at mechanics in automobile upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Harley Davidson Inc Motorcycle Manufacturer Or Financing Company Case Study Analysis

A suggested plan of action in the type of a marketing mix has actually been gone over for Case Study Help, the truth still stays that the product would not complement Harley Davidson Inc Motorcycle Manufacturer Or Financing Company item line. We have a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be around $49377 if 250 units of each design are manufactured each year based on the plan. However, the initial prepared marketing is approximately $52000 each year which would be putting a strain on the company's resources leaving Harley Davidson Inc Motorcycle Manufacturer Or Financing Company with a negative earnings if the costs are assigned to Case Study Help just.

The truth that Harley Davidson Inc Motorcycle Manufacturer Or Financing Company has actually already sustained a preliminary financial investment of $48000 in the form of capital expense and model development indicates that the revenue from Case Study Help is inadequate to undertake the danger of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a more suitable option especially of it is impacting the sale of the company's revenue generating designs.



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