The following area concentrates on the of marketing for Health Development Corp where the business's clients, competitors and core competencies have actually assessed in order to justify whether the choice to launch Case Study Help under Health Development Corp brand name would be a possible choice or not. We have firstly looked at the type of customers that Health Development Corp deals in while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Health Development Corp name.
Health Development Corp consumers can be segmented into two groups, final customers and commercial clients. Both the groups utilize Health Development Corp high performance adhesives while the company is not just associated with the production of these adhesives but likewise markets them to these client groups. There are 2 types of products that are being sold to these prospective markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower potential for Health Development Corp compared to that of instant adhesives.
The total market for immediate adhesives is around 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Health Development Corp possible market or consumer groups, we can see that the business offers to OEMs (Initial Devices Producers), Do-it-Yourself customers, repair and upgrading companies (MRO) and makers handling items made from leather, metal, wood and plastic. This diversity in consumers suggests that Health Development Corp can target has various options in regards to segmenting the market for its new product specifically as each of these groups would be requiring the very same type of item with respective changes in packaging, need or amount. The customer is not rate delicate or brand conscious so releasing a low priced dispenser under Health Development Corp name is not an advised alternative.
Health Development Corp is not just a manufacturer of adhesives however takes pleasure in market leadership in the immediate adhesive industry. The company has its own competent and qualified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Health Development Corp believes in unique circulation as shown by the truth that it has actually selected to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach through suppliers. The company's reach is not limited to North America just as it likewise delights in worldwide sales. With 1400 outlets spread all across North America, Health Development Corp has its internal production plants instead of using out-sourcing as the favored strategy.
Core proficiencies are not limited to adhesive manufacturing just as Health Development Corp also focuses on making adhesive dispensing equipment to help with using its items. This dual production technique provides Health Development Corp an edge over rivals since none of the rivals of dispensing devices makes instant adhesives. Additionally, none of these competitors offers straight to the customer either and utilizes distributors for connecting to customers. While we are looking at the strengths of Health Development Corp, it is crucial to highlight the business's weak points.
Although the company's sales staff is knowledgeable in training suppliers, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it ought to also be noted that the suppliers are revealing unwillingness when it concerns selling devices that needs maintenance which increases the obstacles of selling equipment under a particular trademark name.
If we look at Health Development Corp product line in adhesive equipment particularly, the business has actually products aimed at the high-end of the market. The possibility of sales cannibalization exists if Health Development Corp offers Case Study Help under the very same portfolio. Given the fact that Case Study Help is priced lower than Health Development Corp high-end product line, sales cannibalization would definitely be affecting Health Development Corp sales earnings if the adhesive devices is sold under the company's brand.
We can see sales cannibalization impacting Health Development Corp 27A Pencil Applicator which is priced at $275. There is another possible danger which could decrease Health Development Corp income if Case Study Help is introduced under the company's brand. The fact that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does not show brand name orientation or rate awareness which provides us 2 additional factors for not introducing a low priced item under the company's brand.
The competitive environment of Health Development Corp would be studied via Porter's 5 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 particularly as the buyer has low knowledge about the item. While companies like Health Development Corp have handled to train suppliers concerning adhesives, the final customer is dependent on distributors. Approximately 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by three players, it could be stated that the provider takes pleasure in a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much influence over the purchaser at this point particularly as the purchaser does not reveal brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales, this shows that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market suggests that the market enables ease of entry. If we look at Health Development Corp in specific, the business has dual abilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Potential threats in equipment giving market are low which reveals the possibility of producing brand awareness in not just immediate adhesives however likewise in dispensing adhesives as none of the industry players has handled to place itself in dual capabilities.
Hazard of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Health Development Corp introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given various factors for not launching Case Study Help under Health Development Corp name, we have actually a recommended marketing mix for Case Study Help provided listed below if Health Development Corp decides to proceed with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Motor vehicle services' for a variety of reasons. There are currently 89257 facilities in this segment and a high usage of roughly 58900 lbs. is being used by 36.1 % of the market. This market has an extra growth potential of 10.1% which may be a good enough niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wishes to opt for either of the two devices or not.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the item on his own.
Health Development Corp would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Health Development Corp for introducing Case Study Help.
Place: A distribution model where Health Development Corp directly sends out the item to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Health Development Corp. Considering that the sales group is currently participated in selling immediate adhesives and they do not have proficiency in selling dispensers, including them in the selling process would be costly especially as each sales call expenses roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low advertising budget plan needs to have been appointed to Case Study Help however the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested advertising plan costing $51816 is suggested for initially introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in car upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).