Hockley Valley Brewing Co Inc Case Study Help Checklist

Hockley Valley Brewing Co Inc Case Study Help Checklist

Hockley Valley Brewing Co Inc Case Study Solution
Hockley Valley Brewing Co Inc Case Study Help
Hockley Valley Brewing Co Inc Case Study Analysis

Analyses for Evaluating Hockley Valley Brewing Co Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Hockley Valley Brewing Co Inc where the company's consumers, competitors and core proficiencies have examined in order to validate whether the choice to launch Case Study Help under Hockley Valley Brewing Co Inc trademark name would be a feasible alternative or not. We have to start with taken a look at the kind of customers that Hockley Valley Brewing Co Inc deals in while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Hockley Valley Brewing Co Inc name.
Hockley Valley Brewing Co Inc Case Study Solution

Customer Analysis

Both the groups use Hockley Valley Brewing Co Inc high efficiency adhesives while the business is not just included in the production of these adhesives however also markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower capacity for Hockley Valley Brewing Co Inc compared to that of instantaneous adhesives.

The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Hockley Valley Brewing Co Inc potential market or consumer groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair and revamping companies (MRO) and manufacturers dealing in products made from leather, plastic, wood and metal. This variety in consumers recommends that Hockley Valley Brewing Co Inc can target has various choices in terms of segmenting the marketplace for its new item specifically as each of these groups would be needing the same kind of item with particular modifications in product packaging, amount or need. The consumer is not cost sensitive or brand name mindful so releasing a low priced dispenser under Hockley Valley Brewing Co Inc name is not a recommended alternative.

Company Analysis

Hockley Valley Brewing Co Inc is not just a producer of adhesives however delights in market leadership in the immediate adhesive market. The business has its own competent and certified sales force which adds worth to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.

Core competences are not restricted to adhesive manufacturing only as Hockley Valley Brewing Co Inc likewise focuses on making adhesive dispensing devices to assist in using its items. This double production method offers Hockley Valley Brewing Co Inc an edge over rivals considering that none of the rivals of dispensing equipment makes instant adhesives. Additionally, none of these rivals sells straight to the consumer either and uses distributors for connecting to clients. While we are looking at the strengths of Hockley Valley Brewing Co Inc, it is crucial to highlight the business's weaknesses.

The business's sales personnel is proficient in training suppliers, the fact stays that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It must likewise be noted that the suppliers are revealing hesitation when it comes to selling devices that requires servicing which increases the difficulties of selling equipment under a particular brand name.

If we look at Hockley Valley Brewing Co Inc product line in adhesive equipment especially, the company has products targeted at the high end of the marketplace. If Hockley Valley Brewing Co Inc sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Hockley Valley Brewing Co Inc high-end product line, sales cannibalization would definitely be affecting Hockley Valley Brewing Co Inc sales earnings if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization affecting Hockley Valley Brewing Co Inc 27A Pencil Applicator which is priced at $275. There is another possible threat which might reduce Hockley Valley Brewing Co Inc income if Case Study Help is introduced under the business's trademark name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

Additionally, if we look at the market in general, the adhesives market does not show brand orientation or price awareness which gives us two extra reasons for not introducing a low priced item under the business's trademark name.

Competitor Analysis

The competitive environment of Hockley Valley Brewing Co Inc would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the presence of fragmented sectors with Hockley Valley Brewing Co Inc delighting in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While market rivalry in between these players could be called 'intense' as the consumer is not brand name conscious and each of these players has prominence in terms of market share, the reality still stays that the industry is not saturated and still has several market segments which can be targeted as prospective niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the market for instant adhesives offers growth capacity.

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 Hockley Valley Brewing Co Inc have managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by producers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by three players, it could be stated that the provider delights in a higher bargaining power compared to the buyer. The truth stays that the supplier does not have much influence over the purchaser at this point especially as the purchaser does not show brand name acknowledgment or price level of sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a major control over the real sales, this indicates that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the marketplace enables ease of entry. However, if we look at Hockley Valley Brewing Co Inc in particular, the company has dual capabilities in regards to being a producer of immediate adhesives and adhesive dispensers. Possible dangers in equipment dispensing market are low which reveals the possibility of developing brand name awareness in not only instant adhesives but also in dispensing adhesives as none of the market players has actually handled to place itself in dual abilities.

Risk of Substitutes: The hazard of alternatives in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Hockley Valley Brewing Co Inc presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Hockley Valley Brewing Co Inc Case Study Help

Despite the fact that our 3C analysis has provided various factors for not releasing Case Study Help under Hockley Valley Brewing Co Inc name, we have actually a suggested marketing mix for Case Study Help offered below if Hockley Valley Brewing Co Inc decides to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional development capacity of 10.1% which may be a great sufficient specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for usage 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 suppliers or by means of direct selling. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to acquire the item on his own.

Hockley Valley Brewing Co Inc would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Hockley Valley Brewing Co Inc for releasing Case Study Help.

Place: A distribution design where Hockley Valley Brewing Co Inc straight sends out the item to the local distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Hockley Valley Brewing Co Inc. Considering that the sales group is already taken part in offering instantaneous adhesives and they do not have expertise in selling dispensers, including them in the selling procedure would be expensive particularly as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable option.

Promotion: A low marketing budget plan ought to have been assigned to Case Study Help but the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is suggested for at first presenting the item in the market. The planned advertisements in publications would be targeted at mechanics in automobile upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Hockley Valley Brewing Co Inc Case Study Analysis

A recommended strategy of action in the form of a marketing mix has been talked about for Case Study Help, the truth still remains that the item would not complement Hockley Valley Brewing Co Inc item line. We take a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be around $49377 if 250 systems of each model are produced each year according to the strategy. Nevertheless, the initial prepared marketing is roughly $52000 per year which would be putting a stress on the business's resources leaving Hockley Valley Brewing Co Inc with an unfavorable earnings if the expenses are allocated to Case Study Help only.

The fact that Hockley Valley Brewing Co Inc has actually currently sustained an initial investment of $48000 in the form of capital expense and model development indicates that the earnings from Case Study Help is not enough to carry out the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a more suitable choice specifically of it is affecting the sale of the company's revenue generating models.