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Investment Technology Group Case Study Solution
Investment Technology Group Case Study Help
Investment Technology Group Case Study Analysis
The following section focuses on the of marketing for Investment Technology Group where the company's customers, rivals and core proficiencies have examined in order to justify whether the decision to release Case Study Help under Investment Technology Group brand name would be a practical choice or not. We have firstly looked at the kind of customers that Investment Technology Group deals in while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Investment Technology Group name.
Investment Technology Group customers can be segmented into two groups, last customers and industrial customers. Both the groups use Investment Technology Group high performance adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these consumer groups. There are 2 types of items that are being sold to these possible markets; immediate adhesives and anaerobic adhesives. We would be focusing on the customers of immediate adhesives for this analysis since the marketplace for the latter has a lower capacity for Investment Technology Group compared to that of immediate adhesives.
The total market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have been determined earlier.If we take a look at a breakdown of Investment Technology Group potential market or client groups, we can see that the business sells to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair and revamping business (MRO) and manufacturers handling products made from leather, plastic, wood and metal. This variety in customers suggests that Investment Technology Group can target has numerous alternatives in regards to segmenting the marketplace for its brand-new product particularly as each of these groups would be requiring the very same kind of product with particular modifications in demand, product packaging or quantity. The consumer is not rate delicate or brand name mindful so releasing a low priced dispenser under Investment Technology Group name is not a suggested option.
Investment Technology Group is not simply a manufacturer of adhesives however delights in market leadership in the immediate adhesive industry. The business has its own knowledgeable and qualified sales force which adds value to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Investment Technology Group believes in unique distribution as shown by the truth that it has picked to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for broadening reach by means of distributors. The company's reach is not restricted to The United States and Canada just as it likewise enjoys worldwide sales. With 1400 outlets spread out all across North America, Investment Technology Group has its internal production plants instead of using out-sourcing as the preferred strategy.
Core skills are not limited to adhesive manufacturing just as Investment Technology Group likewise specializes in making adhesive giving devices to help with using its items. This double production technique offers Investment Technology Group an edge over rivals considering that none of the rivals of giving equipment makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the customer either and uses distributors for connecting to clients. While we are looking at the strengths of Investment Technology Group, it is essential to highlight the company's weaknesses.
The business's sales personnel is proficient in training distributors, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It needs to also be kept in mind that the suppliers are revealing reluctance when it comes to selling devices that requires servicing which increases the difficulties of offering equipment under a specific brand name.
If we take a look at Investment Technology Group product line in adhesive equipment particularly, the business has items focused on the luxury of the marketplace. The possibility of sales cannibalization exists if Investment Technology Group offers Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Investment Technology Group high-end product line, sales cannibalization would certainly be impacting Investment Technology Group sales profits if the adhesive devices is offered under the business's brand name.
We can see sales cannibalization affecting Investment Technology Group 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Investment Technology Group profits if Case Study Help is launched under the business's brand name. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
In addition, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or price consciousness which offers us two additional reasons for not releasing a low priced item under the business's brand.
The competitive environment of Investment Technology Group would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the buyer has low understanding about the product. While business like Investment Technology Group have managed to train suppliers relating to adhesives, the final consumer is dependent on distributors. Around 72% of sales are made directly by producers and suppliers for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. The truth stays that the provider does not have much impact over the buyer at this point especially as the buyer does not show brand recognition or cost sensitivity. This suggests that the supplier has the higher power when it pertains to the adhesive market while the maker and the buyer do not have a major control over the real sales.
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 allows ease of entry. If we look at Investment Technology Group in particular, the company has double capabilities in terms of being a producer of adhesive dispensers and immediate adhesives. Possible risks in equipment dispensing industry are low which shows the possibility of producing brand awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the market gamers has managed to place itself in double capabilities.
Risk of Substitutes: The danger of alternatives in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Investment Technology Group presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered numerous reasons for not introducing Case Study Help under Investment Technology Group name, we have a recommended marketing mix for Case Study Help provided below if Investment Technology Group decides to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional growth capacity of 10.1% which might be an excellent enough niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This price would not include the expense of the 'vari tip' or the 'glumetic suggestion'. A cost below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store requires to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for usage in their daily upkeep jobs.
Investment Technology Group would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Investment Technology Group for introducing Case Study Help.
Place: A distribution design where Investment Technology Group directly sends out the product to the local distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Investment Technology Group. Since the sales team is already taken part in offering instant adhesives and they do not have competence in offering dispensers, including them in the selling process would be pricey specifically as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low advertising budget plan should have been appointed to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested marketing plan costing $51816 is recommended for initially introducing the product in the market. The prepared advertisements in publications would be targeted at mechanics in lorry upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
