The following area focuses on the of marketing for Harvey Cohen where the business's clients, competitors and core proficiencies have actually examined in order to justify whether the choice to release Case Study Help under Harvey Cohen trademark name would be a practical alternative or not. We have actually first of all taken a look at the type of customers that Harvey Cohen handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Harvey Cohen name.
Both the groups use Harvey Cohen high efficiency adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these client groups. 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 Harvey Cohen compared to that of instant adhesives.
The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we look at a breakdown of Harvey Cohen possible market or client groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself clients, repair work and revamping companies (MRO) and producers handling items made of leather, plastic, metal and wood. This diversity in customers recommends that Harvey Cohen can target has different choices in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the very same kind of product with particular changes in need, product packaging or quantity. The consumer is not price sensitive or brand name conscious so launching a low priced dispenser under Harvey Cohen name is not a suggested alternative.
Harvey Cohen is not simply a maker of adhesives but enjoys market leadership in the instant 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 suppliers for facilitating the sale of adhesives. Harvey Cohen believes in special distribution as suggested by the fact that it has actually selected to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for expanding reach by means of suppliers. The business's reach is not restricted to North America just as it also takes pleasure in worldwide sales. With 1400 outlets spread all throughout North America, Harvey Cohen has its internal production plants rather than utilizing out-sourcing as the favored method.
Core proficiencies are not limited to adhesive manufacturing only as Harvey Cohen likewise concentrates on making adhesive giving devices to facilitate the use of its products. This double production strategy provides Harvey Cohen an edge over rivals considering that none of the competitors of giving devices makes immediate adhesives. In addition, none of these rivals sells directly to the consumer either and utilizes suppliers for connecting to consumers. While we are looking at the strengths of Harvey Cohen, it is crucial to highlight the company's weak points.
Although the company's sales staff is experienced in training distributors, the reality remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it must likewise be noted that the distributors are showing reluctance when it comes to selling equipment that requires servicing which increases the challenges of offering equipment under a specific brand.
If we look at Harvey Cohen product line in adhesive equipment particularly, the company has items targeted at the high end of the market. If Harvey Cohen sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Harvey Cohen high-end product line, sales cannibalization would definitely be impacting Harvey Cohen sales income if the adhesive equipment is offered under the business's brand name.
We can see sales cannibalization impacting Harvey Cohen 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Harvey Cohen revenue if Case Study Help is introduced under the company's brand name. The truth that $175000 has been spent in promoting SuperBonder recommends 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 instantaneous adhesive.
In addition, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost awareness which gives us 2 additional reasons for not launching a low priced product under the company's brand.
The competitive environment of Harvey Cohen would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low understanding about the product. While business like Harvey Cohen have managed to train suppliers relating to adhesives, the final customer depends on suppliers. Roughly 72% of sales are made directly by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three gamers, it could be stated that the provider delights in a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the supplier does not have much influence over the purchaser at this point particularly as the purchaser does disappoint brand recognition or rate sensitivity. This indicates that the distributor has the greater power when it comes to the adhesive market while the maker and the purchaser do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market indicates that the marketplace allows ease of entry. Nevertheless, if we take a look at Harvey Cohen in particular, the company has dual capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Possible risks in equipment giving market are low which reveals the possibility of creating brand awareness in not just instant adhesives however also in giving adhesives as none of the market players has actually handled to position itself in dual capabilities.
Risk of Substitutes: The danger of alternatives in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Harvey Cohen introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given various reasons for not introducing Case Study Help under Harvey Cohen name, we have a suggested marketing mix for Case Study Help offered listed below if Harvey Cohen decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 establishments in this segment and a high usage of around 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an extra development potential of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the truth 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 item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the customer can decide whether he wishes to opt for either of the two accessories or not.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance shop requires to purchase the item on his own.
Harvey Cohen would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Harvey Cohen for introducing Case Study Help.
Place: A distribution model where Harvey Cohen directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be used by Harvey Cohen. Since the sales group is already taken part in offering instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling process would be pricey particularly as each sales call expenses around $120. The distributors are already selling dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: Although a low marketing budget should have been designated to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing plan costing $51816 is advised for initially introducing the product in the market. The planned ads in publications would be targeted at mechanics in automobile maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).