The following area focuses on the of marketing for Hayman Capital Management where the company's clients, competitors and core competencies have evaluated in order to validate whether the choice to launch Case Study Help under Hayman Capital Management brand would be a practical option or not. We have firstly taken a look at the kind of consumers that Hayman Capital Management handle while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Hayman Capital Management name.
Hayman Capital Management customers can be segmented into two groups, last customers and commercial consumers. Both the groups use Hayman Capital Management high performance adhesives while the company is not just involved in the production of these adhesives however also markets them to these consumer groups. There are 2 kinds of items that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Hayman Capital Management compared to that of immediate adhesives.
The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have been determined earlier.If we look at a breakdown of Hayman Capital Management potential market or consumer groups, we can see that the business sells to OEMs (Original Equipment Makers), Do-it-Yourself consumers, repair work and revamping business (MRO) and manufacturers dealing in items made of leather, metal, plastic and wood. This variety in consumers recommends that Hayman Capital Management can target has different options in terms of segmenting the market for its new item especially as each of these groups would be requiring the same kind of product with particular changes in need, quantity or product packaging. The consumer is not price delicate or brand name mindful so introducing a low priced dispenser under Hayman Capital Management name is not a recommended choice.
Hayman Capital Management is not just a maker of adhesives but takes pleasure in market management in the immediate adhesive market. The business has its own skilled and competent sales force which adds value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.
Core competences are not limited to adhesive production just as Hayman Capital Management likewise specializes in making adhesive giving devices to help with the use of its products. This dual production method provides Hayman Capital Management an edge over rivals since none of the rivals of giving devices makes immediate adhesives. Additionally, none of these competitors offers directly to the customer either and utilizes distributors for reaching out to clients. While we are looking at the strengths of Hayman Capital Management, it is necessary to highlight the company's weak points too.
Although the company's sales staff is skilled in training suppliers, the reality remains that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it needs to also be kept in mind that the suppliers are revealing unwillingness when it pertains to selling equipment that requires maintenance which increases the challenges of selling equipment under a specific trademark name.
The business has actually products intended at the high end of the market if we look at Hayman Capital Management item line in adhesive devices especially. The possibility of sales cannibalization exists if Hayman Capital Management sells Case Study Help under the very same portfolio. Given the truth that Case Study Help is priced lower than Hayman Capital Management high-end line of product, sales cannibalization would absolutely be impacting Hayman Capital Management sales profits if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization impacting Hayman Capital Management 27A Pencil Applicator which is priced at $275. There is another possible risk which might lower Hayman Capital Management profits if Case Study Help is introduced under the business's brand name. The reality that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or price consciousness which gives us 2 additional reasons for not introducing a low priced product under the business's brand name.
The competitive environment of Hayman Capital Management 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 item. While companies like Hayman Capital Management have handled to train distributors concerning adhesives, the final consumer depends on distributors. Roughly 72% of sales are made directly by manufacturers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three players, it could be stated that the supplier delights in a higher bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the buyer at this point especially as the buyer does not show brand name recognition or cost 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 real sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market shows that the marketplace enables ease of entry. If we look at Hayman Capital Management in specific, the business has double capabilities in terms of being a producer of immediate adhesives and adhesive dispensers. Prospective risks in equipment giving industry are low which reveals the possibility of creating brand awareness in not just instant adhesives but also in dispensing adhesives as none of the industry players has managed to place itself in double capabilities.
Hazard of Substitutes: The danger of replacements in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Hayman Capital Management introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given various reasons for not launching Case Study Help under Hayman Capital Management name, we have a suggested marketing mix for Case Study Help provided listed below if Hayman Capital Management decides to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an additional growth capacity of 10.1% which may be a great sufficient niche market section for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.
Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor lorry upkeep shop needs to buy the item on his own.
Hayman Capital Management would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net profitability for Hayman Capital Management for introducing Case Study Help.
Place: A distribution model where Hayman Capital Management directly sends the item to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Hayman Capital Management. Since the sales group is currently taken part in selling immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be expensive especially as each sales call expenses roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: A low marketing spending plan must have been assigned 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 incurred for production, the recommended marketing strategy costing $51816 is recommended for initially presenting the product in the market. The planned ads in magazines would be targeted at mechanics in lorry maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).