The following area focuses on the of marketing for Harrington Financial Group where the company's consumers, competitors and core competencies have actually evaluated in order to justify whether the decision to introduce Case Study Help under Harrington Financial Group trademark name would be a possible option or not. We have firstly taken a look at the kind of clients that Harrington Financial Group handle while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Harrington Financial Group name.
Both the groups use Harrington Financial Group high performance adhesives while the company is not only included in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower capacity for Harrington Financial Group compared to that of instant adhesives.
The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Harrington Financial Group prospective market or consumer groups, we can see that the business offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and producers handling items made of leather, plastic, metal and wood. This diversity in customers recommends that Harrington Financial Group can target has numerous alternatives in regards to segmenting the marketplace for its brand-new product especially as each of these groups would be needing the very same type of item with particular modifications in demand, quantity or packaging. Nevertheless, the customer is not rate sensitive or brand conscious so launching a low priced dispenser under Harrington Financial Group name is not a recommended option.
Harrington Financial Group is not simply a producer of adhesives but takes pleasure in market management in the immediate adhesive market. The business has its own skilled and certified sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.
Core skills are not limited to adhesive production just as Harrington Financial Group likewise specializes in making adhesive giving devices to facilitate the use of its products. This double production strategy provides Harrington Financial Group an edge over rivals because none of the competitors of giving devices makes immediate adhesives. Furthermore, none of these rivals sells directly to the customer either and uses distributors for connecting to clients. While we are looking at the strengths of Harrington Financial Group, it is important to highlight the company's weaknesses too.
The business's sales personnel is knowledgeable in training suppliers, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it should also be kept in mind that the distributors are showing hesitation when it pertains to selling equipment that requires servicing which increases the difficulties of selling equipment under a specific trademark name.
If we take a look at Harrington Financial Group line of product in adhesive devices particularly, the business has actually items targeted at the high-end of the market. The possibility of sales cannibalization exists if Harrington Financial Group sells Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Harrington Financial Group high-end product line, sales cannibalization would absolutely be impacting Harrington Financial Group sales revenue if the adhesive devices is sold under the business's brand name.
We can see sales cannibalization affecting Harrington Financial Group 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible hazard which could lower Harrington Financial Group earnings. The reality that $175000 has been invested in promoting SuperBonder suggests 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 instant 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 extra factors for not releasing a low priced product under the company's trademark name.
The competitive environment of Harrington Financial Group 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 specifically as the buyer has low knowledge about the product. While business like Harrington Financial Group have actually managed to train distributors concerning adhesives, the last consumer is dependent on distributors. Around 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by 3 players, it could be stated that the provider takes pleasure in a greater bargaining power compared to the buyer. However, the truth remains that the supplier does not have much influence over the purchaser at this moment specifically as the purchaser does disappoint brand acknowledgment or price sensitivity. This indicates that the supplier has the greater power when it pertains to the adhesive market while the purchaser and the manufacturer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the marketplace enables ease of entry. However, if we look at Harrington Financial Group in particular, the company has dual capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Prospective dangers in equipment dispensing market are low which shows the possibility of creating brand awareness in not only instant adhesives but also in dispensing adhesives as none of the market players has actually managed to position itself in double abilities.
Threat of Substitutes: The risk of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality stays that if Harrington Financial Group introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided different reasons for not launching Case Study Help under Harrington Financial Group name, we have a suggested marketing mix for Case Study Help given listed below if Harrington Financial Group chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra development potential of 10.1% which may be a great enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep shop requires to purchase the item on his own.
Harrington Financial Group would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Harrington Financial Group for releasing Case Study Help.
Place: A distribution model where Harrington Financial Group directly sends out the item to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Harrington Financial Group. Because the sales group is already engaged in offering instantaneous adhesives and they do not have competence in offering dispensers, involving them in the selling process would be pricey particularly as each sales call costs around $120. The distributors are already offering dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional budget must have been appointed to Case Study Help however the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended marketing strategy costing $51816 is recommended for at first introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in automobile upkeep stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).