The following section focuses on the of marketing for Harley Davidson Inc where the company's consumers, rivals and core competencies have examined in order to justify whether the decision to introduce Case Study Help under Harley Davidson Inc brand name would be a feasible alternative or not. We have first of all looked at the kind of clients that Harley Davidson Inc handle while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Harley Davidson Inc name.
Both the groups use Harley Davidson Inc high performance adhesives while the business is not just included in the production of these adhesives but also markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Harley Davidson Inc compared to that of instantaneous adhesives.
The total market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Harley Davidson Inc possible market or consumer groups, we can see that the company offers to OEMs (Original Devices Makers), Do-it-Yourself consumers, repair and revamping business (MRO) and makers dealing in products made from leather, plastic, metal and wood. This variety in consumers suggests that Harley Davidson Inc can target has numerous alternatives in terms of segmenting the marketplace for its brand-new product particularly as each of these groups would be requiring the same kind of product with respective modifications in demand, quantity or product packaging. However, the consumer is not rate delicate or brand conscious so introducing a low priced dispenser under Harley Davidson Inc name is not an advised choice.
Harley Davidson Inc is not simply a producer of adhesives however enjoys market leadership in the immediate adhesive industry. The business has its own knowledgeable and certified sales force which includes value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Harley Davidson Inc believes in exclusive circulation as shown by the fact that it has selected to sell through 250 distributors whereas there is t a network of 10000 distributors that can be explored for expanding reach by means of distributors. The company's reach is not limited to The United States and Canada just as it also delights in international sales. With 1400 outlets spread out all throughout North America, Harley Davidson Inc has its internal production plants instead of utilizing out-sourcing as the favored method.
Core competences are not limited to adhesive manufacturing only as Harley Davidson Inc likewise focuses on making adhesive dispensing devices to assist in the use of its products. This dual production strategy provides Harley Davidson Inc an edge over competitors considering that none of the competitors of giving equipment makes instantaneous adhesives. Additionally, none of these competitors sells straight to the consumer either and uses distributors for reaching out to customers. While we are looking at the strengths of Harley Davidson Inc, it is important to highlight the company's weak points.
The business's sales personnel is proficient in training distributors, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it ought to also be kept in mind that the distributors are revealing hesitation when it comes to selling devices that requires servicing which increases the challenges of selling devices under a particular brand.
If we look at Harley Davidson Inc line of product in adhesive equipment particularly, the business has actually products aimed at the luxury of the market. If Harley Davidson Inc offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Harley Davidson Inc high-end product line, sales cannibalization would certainly be impacting Harley Davidson Inc sales profits if the adhesive equipment is sold under the business's brand.
We can see sales cannibalization affecting Harley Davidson Inc 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease Harley Davidson Inc income if Case Study Help is released under the company's brand. The reality that $175000 has actually been invested in promoting SuperBonder recommends that it is not a great 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 instantaneous adhesive.
Additionally, if we look at the market in general, the adhesives market does not show brand name orientation or price awareness which provides us two additional reasons for not launching a low priced product under the business's brand name.
The competitive environment of Harley Davidson Inc would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the buyer has low knowledge about the item. While business like Harley Davidson Inc have actually managed to train suppliers concerning adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 gamers, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. However, the truth remains that the supplier does not have much influence over the buyer at this point specifically as the purchaser does not show brand acknowledgment or price sensitivity. This indicates that the supplier has the higher power when it comes to the adhesive market while the purchaser and the maker do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market indicates that the market enables ease of entry. Nevertheless, if we take a look at Harley Davidson Inc in particular, the business has double capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible dangers in devices dispensing industry are low which shows the possibility of creating brand name awareness in not only instant adhesives however likewise in giving adhesives as none of the industry players has handled to position itself in double abilities.
Threat of Substitutes: The danger of replacements in the immediate adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Harley Davidson Inc presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered numerous factors for not introducing Case Study Help under Harley Davidson Inc name, we have a recommended marketing mix for Case Study Help provided listed below if Harley Davidson Inc chooses to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a variety of factors. There are presently 89257 facilities in this sector and a high use of around 58900 pounds. is being used by 36.1 % of the marketplace. This market has an extra development potential of 10.1% which might be a sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost usage with SuperBonder. The item would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can choose whether he wishes to select either of the two devices or not.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to buy the item on his own.
Harley Davidson Inc would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net profitability for Harley Davidson Inc for introducing Case Study Help.
Place: A distribution model where Harley Davidson Inc directly sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be used by Harley Davidson Inc. Considering that the sales group is currently participated in offering instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be pricey specifically as each sales call costs approximately $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: Although a low promotional spending plan ought to have been appointed to Case Study Help but the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is advised for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).