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Hill Country Snack Foods Co Case Study Solution
Hill Country Snack Foods Co Case Study Help
Hill Country Snack Foods Co Case Study Analysis
The following section concentrates on the of marketing for Hill Country Snack Foods Co where the company's consumers, rivals and core proficiencies have assessed in order to justify whether the choice to launch Case Study Help under Hill Country Snack Foods Co brand name would be a practical alternative or not. We have first of all looked at the type of customers that Hill Country Snack Foods Co handle while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Hill Country Snack Foods Co name.
Hill Country Snack Foods Co customers can be segmented into two groups, last consumers and commercial consumers. Both the groups utilize Hill Country Snack Foods Co high performance adhesives while the business is not just involved in the production of these adhesives but likewise markets them to these consumer groups. There are two kinds of products that are being offered to these possible markets; instant adhesives and anaerobic adhesives. We would be concentrating on the customers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Hill Country Snack Foods Co compared to that of instant adhesives.
The total market for instantaneous adhesives is around 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 Hill Country Snack Foods Co prospective market or consumer groups, we can see that the business offers to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair work and overhauling business (MRO) and makers dealing in items made from leather, plastic, metal and wood. This diversity in consumers suggests that Hill Country Snack Foods Co can target has numerous choices in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be needing the very same type of item with particular changes in amount, need or packaging. Nevertheless, the client is not price sensitive or brand name conscious so introducing a low priced dispenser under Hill Country Snack Foods Co name is not a recommended option.
Hill Country Snack Foods Co is not just a producer of adhesives but enjoys market management in the instant adhesive market. The company has its own experienced and certified sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Hill Country Snack Foods Co believes in unique distribution as shown by the reality 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 via distributors. The business's reach is not limited to The United States and Canada just as it also takes pleasure in international sales. With 1400 outlets spread out all throughout North America, Hill Country Snack Foods Co has its in-house production plants instead of using out-sourcing as the favored method.
Core proficiencies are not limited to adhesive manufacturing only as Hill Country Snack Foods Co likewise concentrates on making adhesive giving devices to facilitate using its products. This dual production method offers Hill Country Snack Foods Co an edge over competitors given that none of the competitors of dispensing devices makes immediate adhesives. Furthermore, none of these rivals sells straight to the consumer either and uses distributors for connecting to consumers. While we are looking at the strengths of Hill Country Snack Foods Co, it is essential to highlight the company's weaknesses.
The business's sales staff is skilled in training distributors, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It must also be kept in mind that the suppliers are revealing reluctance when it comes to offering equipment that requires maintenance which increases the obstacles of offering devices under a specific brand name.
The business has actually products aimed at the high end of the market if we look at Hill Country Snack Foods Co item line in adhesive devices especially. If Hill Country Snack Foods Co sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Hill Country Snack Foods Co high-end line of product, sales cannibalization would absolutely be impacting Hill Country Snack Foods Co sales income if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization impacting Hill Country Snack Foods Co 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease Hill Country Snack Foods Co revenue if Case Study Help is introduced under the company's brand. 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 truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we take a look at the market in general, the adhesives market does not show brand orientation or price awareness which provides us 2 extra factors for not releasing a low priced item under the business's brand name.
The competitive environment of Hill Country Snack Foods Co would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the purchaser has low knowledge about the product. While companies like Hill Country Snack Foods Co have actually managed to train suppliers concerning adhesives, the final consumer is dependent on distributors. Approximately 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 fact that the adhesive market is dominated by 3 players, it could be said that the supplier takes pleasure in a greater bargaining power compared to the purchaser. However, the truth remains that the supplier does not have much influence over the buyer at this moment specifically as the purchaser does disappoint brand acknowledgment or rate level of sensitivity. This indicates that the distributor has the higher power when it concerns the adhesive market while the producer and the buyer do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the marketplace enables ease of entry. However, if we take a look at Hill Country Snack Foods Co in particular, the business has dual abilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Potential threats in devices giving industry are low which reveals the possibility of creating brand name awareness in not only instantaneous adhesives however likewise in dispensing adhesives as none of the market gamers has actually handled to position itself in double abilities.
Risk of Substitutes: The hazard of alternatives in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact remains that if Hill Country Snack Foods Co introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered various reasons for not releasing Case Study Help under Hill Country Snack Foods Co name, we have actually a recommended marketing mix for Case Study Help given listed below if Hill Country Snack Foods Co chooses to go ahead 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 good adequate specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the reality that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. This price would not include the expense of the 'vari suggestion' or the 'glumetic idea'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to acquire the product on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their daily upkeep jobs.
Hill Country Snack Foods Co would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net profitability for Hill Country Snack Foods Co for introducing Case Study Help.
Place: A distribution design where Hill Country Snack Foods Co directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Hill Country Snack Foods Co. Because the sales team is already participated in offering immediate adhesives and they do not have competence in offering dispensers, involving them in the selling process would be expensive specifically as each sales call expenses around $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: A low marketing budget must have been appointed to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended advertising plan costing $51816 is advised for at first presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in vehicle upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
