The following section concentrates on the of marketing for Innovative Lighting Inc where the company's clients, rivals and core proficiencies have assessed in order to justify whether the choice to launch Case Study Help under Innovative Lighting Inc brand would be a practical choice or not. We have to start with taken a look at the type of customers that Innovative Lighting Inc deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Innovative Lighting Inc name.
Innovative Lighting Inc clients can be segmented into 2 groups, industrial consumers and final consumers. Both the groups use Innovative Lighting Inc high performance adhesives while the business is not only involved in the production of these adhesives but also markets them to these customer groups. There are two kinds of products that are being sold to these prospective markets; anaerobic adhesives and instant adhesives. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower potential for Innovative Lighting Inc compared to that of instant adhesives.
The total market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been recognized earlier.If we look at a breakdown of Innovative Lighting Inc possible market or consumer groups, we can see that the business sells to OEMs (Original Devices Makers), Do-it-Yourself customers, repair work and overhauling business (MRO) and makers dealing in products made of leather, wood, plastic and metal. This diversity in customers recommends that Innovative Lighting Inc can target has numerous options in regards to segmenting the market for its new item especially as each of these groups would be requiring the same kind of product with respective changes in quantity, need or product packaging. The customer is not cost sensitive or brand mindful so releasing a low priced dispenser under Innovative Lighting Inc name is not a recommended alternative.
Innovative Lighting Inc is not simply a producer of adhesives however enjoys market leadership in the instant adhesive industry. The company has its own skilled and qualified sales force which adds worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core competences are not restricted to adhesive production just as Innovative Lighting Inc also focuses on making adhesive giving devices to facilitate using its products. This dual production strategy gives Innovative Lighting Inc an edge over competitors because none of the rivals of giving equipment makes instantaneous adhesives. Additionally, none of these rivals offers straight to the customer either and uses distributors for connecting to consumers. While we are looking at the strengths of Innovative Lighting Inc, it is important to highlight the company's weak points.
Although the business's sales personnel is skilled in training distributors, the fact stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It needs to also be kept in mind that the suppliers are revealing reluctance when it comes to offering devices that requires maintenance which increases the obstacles of selling equipment under a particular brand name.
The business has actually products intended at the high end of the market if we look at Innovative Lighting Inc item line in adhesive devices especially. The possibility of sales cannibalization exists if Innovative Lighting Inc offers Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Innovative Lighting Inc high-end product line, sales cannibalization would certainly be impacting Innovative Lighting Inc sales revenue if the adhesive equipment is offered under the business's trademark name.
We can see sales cannibalization affecting Innovative Lighting Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which might reduce Innovative Lighting Inc profits if Case Study Help is introduced under the company's brand name. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we look at the market in general, the adhesives market does disappoint brand orientation or price awareness which provides us two additional factors for not releasing a low priced product under the company's brand name.
The competitive environment of Innovative Lighting Inc would be studied through Porter's five 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 specifically as the purchaser has low knowledge about the product. While companies like Innovative Lighting Inc have actually handled to train distributors relating to adhesives, the final customer depends on distributors. Approximately 72% of sales are made directly by producers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by 3 players, it could be stated that the provider enjoys a greater bargaining power compared to the buyer. Nevertheless, the fact stays that the supplier does not have much impact over the buyer at this point particularly as the purchaser does disappoint brand name recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the actual sales, this shows that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market indicates that the marketplace enables ease of entry. If we look at Innovative Lighting Inc in specific, the company has double abilities in terms of being a producer of immediate adhesives and adhesive dispensers. Possible dangers in devices dispensing market are low which reveals the possibility of developing brand awareness in not just instant adhesives however also in giving adhesives as none of the market gamers has handled to position itself in dual abilities.
Risk of Substitutes: The danger of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality remains that if Innovative Lighting Inc presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given different reasons for not introducing Case Study Help under Innovative Lighting Inc name, we have actually a suggested marketing mix for Case Study Help given listed below if Innovative Lighting Inc chooses to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. There are currently 89257 facilities in this segment and a high use of around 58900 pounds. is being used by 36.1 % of the market. This market has an extra development capacity of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the fact that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can choose whether he wishes to select either of the two accessories or not.
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 price below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to purchase the product on his own.
Innovative Lighting Inc would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Innovative Lighting Inc for introducing Case Study Help.
Place: A distribution design where Innovative Lighting Inc directly sends out the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Innovative Lighting Inc. Given that the sales team is already participated in selling instant adhesives and they do not have competence in selling dispensers, involving them in the selling process would be expensive specifically as each sales call expenses roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low promotional budget plan ought to have been appointed to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended advertising strategy costing $51816 is advised for at first introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).