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Horizon Insurance Agency Case Study Solution
Horizon Insurance Agency Case Study Help
Horizon Insurance Agency Case Study Analysis
The following section focuses on the of marketing for Horizon Insurance Agency where the business's clients, rivals and core proficiencies have evaluated in order to validate whether the choice to release Case Study Help under Horizon Insurance Agency brand name would be a feasible alternative or not. We have firstly looked at the kind of clients that Horizon Insurance Agency handle while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Horizon Insurance Agency name.
Horizon Insurance Agency customers can be segmented into two groups, industrial clients and last consumers. Both the groups utilize Horizon Insurance Agency high performance adhesives while the business is not only associated with the production of these adhesives but also markets them to these consumer groups. There are two kinds of products that are being offered to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be focusing on the customers of instant adhesives for this analysis since the market for the latter has a lower capacity for Horizon Insurance Agency compared to that of instantaneous adhesives.
The total market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have actually been determined earlier.If we take a look at a breakdown of Horizon Insurance Agency possible market or consumer groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and manufacturers handling items made of leather, plastic, wood and metal. This diversity in consumers recommends that Horizon Insurance Agency can target has numerous alternatives in terms of segmenting the marketplace for its new product specifically as each of these groups would be requiring the same type of item with respective modifications in amount, demand or product packaging. The client is not cost delicate or brand mindful so introducing a low priced dispenser under Horizon Insurance Agency name is not a suggested option.
Horizon Insurance Agency is not simply a manufacturer of adhesives but takes pleasure in market leadership in the immediate adhesive industry. The business has its own experienced and certified sales force which adds value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not limited to adhesive manufacturing just as Horizon Insurance Agency likewise concentrates on making adhesive dispensing devices to facilitate the use of its products. This double production method offers Horizon Insurance Agency an edge over competitors considering that none of the rivals of dispensing equipment makes immediate adhesives. Additionally, none of these competitors offers straight to the consumer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Horizon Insurance Agency, it is important to highlight the business's weak points as well.
Although the business's sales staff is competent in training suppliers, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It must also be noted that the suppliers are showing unwillingness when it comes to selling equipment that needs servicing which increases the challenges of selling equipment under a particular brand name.
If we look at Horizon Insurance Agency product line in adhesive devices particularly, the business has actually items focused on the luxury of the market. The possibility of sales cannibalization exists if Horizon Insurance Agency sells Case Study Help under the same portfolio. Offered the reality that Case Study Help is priced lower than Horizon Insurance Agency high-end line of product, sales cannibalization would certainly be impacting Horizon Insurance Agency sales income if the adhesive equipment is sold under the company's trademark name.
We can see sales cannibalization affecting Horizon Insurance Agency 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible risk which could decrease Horizon Insurance Agency revenue. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching 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.
Furthermore, if we look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which provides us two extra reasons for not introducing a low priced product under the company's trademark name.
The competitive environment of Horizon Insurance Agency would be studied via 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 particularly as the purchaser has low understanding about the item. While business like Horizon Insurance Agency have managed to train distributors relating to adhesives, the final consumer is dependent on suppliers. Approximately 72% of sales are made directly by makers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by 3 players, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. The fact remains that the provider does not have much influence over the buyer at this point specifically as the purchaser does not reveal brand name acknowledgment or cost level of sensitivity. This indicates that the distributor has the greater power when it pertains to the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the market allows ease of entry. If we look at Horizon Insurance Agency in particular, the company has double capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Possible risks in equipment giving market are low which reveals the possibility of creating brand awareness in not only instant adhesives however also in dispensing adhesives as none of the industry players has actually handled to position itself in dual capabilities.
Risk of Substitutes: The threat of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Horizon Insurance Agency introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided different reasons for not releasing Case Study Help under Horizon Insurance Agency name, we have a recommended marketing mix for Case Study Help offered listed below if Horizon Insurance Agency chooses to proceed with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 establishments in this section and a high use of around 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional development capacity of 10.1% which may be a good enough niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the fact that the Diy market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wants to choose either of the two accessories or not.
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 by means of direct selling. This price would not consist of the expense of the 'vari suggestion' or the 'glumetic idea'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop needs to acquire the product on his own. This would increase the possibility of affecting mechanics to acquire the item for usage in their day-to-day upkeep jobs.
Horizon Insurance Agency would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Horizon Insurance Agency for launching Case Study Help.
Place: A circulation design where Horizon Insurance Agency directly sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Horizon Insurance Agency. Given that the sales team is already engaged in selling immediate adhesives and they do not have expertise in selling dispensers, including them in the selling process would be costly especially as each sales call costs around $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable option.
Promotion: A low marketing budget needs to have been appointed to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested marketing strategy costing $51816 is recommended for initially presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in car upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
