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Harley Davidson Inc Case Study Solution
Harley Davidson Inc Case Study Help
Harley Davidson Inc Case Study Analysis
The following area focuses on the of marketing for Harley Davidson Inc where the business's clients, rivals and core competencies have actually assessed in order to justify whether the decision to release Case Study Help under Harley Davidson Inc brand name would be a feasible choice or not. We have to start with looked at the type of consumers that Harley Davidson Inc deals in while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Harley Davidson Inc name.
Both the groups use Harley Davidson Inc high performance adhesives while the business 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 immediate adhesives for this analysis given that the market for the latter has a lower potential for Harley Davidson Inc compared to that of immediate adhesives.
The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Harley Davidson Inc possible market or consumer groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and manufacturers handling products made from leather, metal, wood and plastic. This variety in consumers recommends that Harley Davidson Inc can target has various options in terms of segmenting the market for its new item particularly as each of these groups would be requiring the same type of product with particular modifications in demand, packaging or amount. Nevertheless, the client is not rate delicate or brand mindful so releasing a low priced dispenser under Harley Davidson Inc name is not a recommended alternative.
Harley Davidson Inc is not simply a producer of adhesives however takes pleasure in market management in the instantaneous adhesive market. The company has its own proficient and qualified sales force which adds value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Harley Davidson Inc believes in unique distribution as indicated by the fact that it has picked to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for expanding reach through suppliers. The business's reach is not limited to North America just as it likewise enjoys global sales. With 1400 outlets spread all throughout North America, Harley Davidson Inc has its in-house production plants rather than utilizing out-sourcing as the favored method.
Core competences are not restricted to adhesive manufacturing only as Harley Davidson Inc also specializes in making adhesive dispensing devices to assist in making use of its products. This double production method offers Harley Davidson Inc an edge over rivals since none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these competitors sells straight to the customer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Harley Davidson Inc, it is very important to highlight the business's weaknesses as well.
Although the business's sales personnel is competent in training distributors, the reality remains that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. It should also be kept in mind that the suppliers are revealing hesitation when it comes to selling devices that requires maintenance which increases the difficulties of offering equipment under a specific brand name.
The business has actually items aimed at the high end of the market if we look at Harley Davidson Inc item line in adhesive equipment especially. If Harley Davidson Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Harley Davidson Inc high-end line of product, sales cannibalization would absolutely be affecting Harley Davidson Inc sales income if the adhesive equipment is offered under the business's trademark name.
We can see sales cannibalization affecting Harley Davidson Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Harley Davidson Inc earnings if Case Study Help is introduced under the company's trademark name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
In addition, if we look at the market in general, the adhesives market does disappoint brand orientation or cost consciousness which provides us two additional reasons for not launching a low priced product under the business's trademark name.
The competitive environment of Harley Davidson Inc would be studied via 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 product. While companies like Harley Davidson Inc have actually handled to train distributors relating to adhesives, the last consumer depends on distributors. Approximately 72% of sales are made directly by producers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given 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 purchaser. Nevertheless, the truth remains that the supplier does not have much influence over the purchaser at this moment especially as the buyer does not show brand name recognition or cost level of sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the buyer and the producer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market shows that the market enables ease of entry. If we look at Harley Davidson Inc in particular, the business has dual capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible risks in equipment dispensing market are low which shows the possibility of developing brand name awareness in not just instant adhesives however also in giving adhesives as none of the industry gamers has actually managed to position itself in double capabilities.
Risk of Substitutes: The hazard of replacements in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Harley Davidson Inc introduced 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 given various factors for not introducing Case Study Help under Harley Davidson Inc name, we have actually a suggested marketing mix for Case Study Help given listed below if Harley Davidson Inc decides to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional development capacity of 10.1% which may be an excellent adequate niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the reality that the Diy market can likewise be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or through direct selling. This price would not include the cost of the 'vari pointer' or the 'glumetic suggestion'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store requires to acquire the item on his own. This would increase the possibility of affecting mechanics to buy the product for usage in their everyday upkeep jobs.
Harley Davidson Inc would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Harley Davidson Inc for launching Case Study Help.
Place: A distribution design where Harley Davidson Inc straight sends the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Harley Davidson Inc. Given that the sales team is currently taken part in selling instant adhesives and they do not have competence in selling dispensers, including them in the selling procedure would be costly especially as each sales call expenses around $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: A low marketing budget plan must have been assigned to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested marketing strategy costing $51816 is advised for initially introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
