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Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Help Checklist

Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Help Checklist

Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Solution
Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Help
Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Analysis



Analyses for Evaluating Jiuding Capital Private Equity Firm With Chinese Characteristics decision to launch Case Study Solution


The following section concentrates on the of marketing for Jiuding Capital Private Equity Firm With Chinese Characteristics where the company's clients, rivals and core competencies have actually evaluated in order to validate whether the decision to release Case Study Help under Jiuding Capital Private Equity Firm With Chinese Characteristics brand name would be a possible option or not. We have first of all looked at the type of clients that Jiuding Capital Private Equity Firm With Chinese Characteristics handle while an examination of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Jiuding Capital Private Equity Firm With Chinese Characteristics name.
Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Solution

Customer Analysis

Jiuding Capital Private Equity Firm With Chinese Characteristics customers can be segmented into two groups, commercial customers and last consumers. Both the groups utilize Jiuding Capital Private Equity Firm With Chinese Characteristics high performance adhesives while the business is not only associated with the production of these adhesives but also markets them to these customer groups. There are two types of items that are being sold to these possible markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of immediate adhesives for this analysis given that the marketplace for the latter has a lower potential for Jiuding Capital Private Equity Firm With Chinese Characteristics compared to that of instantaneous adhesives.

The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both client groups which have actually been recognized earlier.If we take a look at a breakdown of Jiuding Capital Private Equity Firm With Chinese Characteristics potential market or consumer groups, we can see that the company sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair and revamping companies (MRO) and producers dealing in items made from leather, metal, plastic and wood. This variety in customers suggests that Jiuding Capital Private Equity Firm With Chinese Characteristics can target has different options in regards to segmenting the market for its brand-new product particularly as each of these groups would be requiring the same kind of product with respective modifications in need, amount or product packaging. The consumer is not rate sensitive or brand name conscious so introducing a low priced dispenser under Jiuding Capital Private Equity Firm With Chinese Characteristics name is not an advised choice.

Company Analysis

Jiuding Capital Private Equity Firm With Chinese Characteristics is not just a maker of adhesives but takes pleasure in market leadership in the instant adhesive industry. The company has its own competent and certified sales force which adds worth to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.

Core skills are not limited to adhesive production only as Jiuding Capital Private Equity Firm With Chinese Characteristics also specializes in making adhesive dispensing devices to help with making use of its products. This double production technique offers Jiuding Capital Private Equity Firm With Chinese Characteristics an edge over competitors because none of the competitors of dispensing equipment makes instant adhesives. Furthermore, none of these competitors offers straight to the customer either and uses suppliers for reaching out to consumers. While we are taking a look at the strengths of Jiuding Capital Private Equity Firm With Chinese Characteristics, it is important to highlight the company's weak points also.

Although the business's sales staff is experienced 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 devices. However, it ought to also be kept in mind that the suppliers are revealing unwillingness when it pertains to selling devices that needs maintenance which increases the obstacles of selling equipment under a specific brand.

The company has actually products intended at the high end of the market if we look at Jiuding Capital Private Equity Firm With Chinese Characteristics item line in adhesive devices particularly. If Jiuding Capital Private Equity Firm With Chinese Characteristics offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Jiuding Capital Private Equity Firm With Chinese Characteristics high-end line of product, sales cannibalization would certainly be affecting Jiuding Capital Private Equity Firm With Chinese Characteristics sales earnings if the adhesive equipment is offered under the business's trademark name.

We can see sales cannibalization impacting Jiuding Capital Private Equity Firm With Chinese Characteristics 27A Pencil Applicator which is priced at $275. There is another possible threat which could reduce Jiuding Capital Private Equity Firm With Chinese Characteristics revenue if Case Study Help is launched under the company's brand name. The truth that $175000 has actually been spent 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 instantaneous adhesive.

Additionally, if we look at the market in general, the adhesives market does not show brand orientation or cost awareness which offers us 2 extra factors for not releasing a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Jiuding Capital Private Equity Firm With Chinese Characteristics would be studied by means of 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 potential due to the presence of fragmented segments with Jiuding Capital Private Equity Firm With Chinese Characteristics delighting in management and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market rivalry between these gamers could be called 'intense' as the consumer is not brand conscious and each of these players has prominence in regards to market share, the fact still stays that the market is not filled and still has several market sections which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the fact that sales cannibalization may be leading to market rivalry in the adhesive dispenser market while the market for immediate adhesives provides growth capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low knowledge about the item. While business like Jiuding Capital Private Equity Firm With Chinese Characteristics have actually managed to train distributors regarding adhesives, the last customer depends on distributors. Approximately 72% of sales are made straight by makers and distributors for instant adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by three gamers, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. The reality stays that the provider does not have much impact over the purchaser at this point particularly as the buyer does not reveal brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales, this shows that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market shows that the market allows ease of entry. If we look at Jiuding Capital Private Equity Firm With Chinese Characteristics in particular, the business has double capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective threats in equipment giving market are low which shows the possibility of developing brand awareness in not only instant adhesives however also in dispensing adhesives as none of the market gamers has managed to place itself in double abilities.

Risk of Substitutes: The hazard of replacements in the immediate adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Jiuding Capital Private Equity Firm With Chinese Characteristics introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).


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

Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Help


Despite the fact that our 3C analysis has offered different factors for not introducing Case Study Help under Jiuding Capital Private Equity Firm With Chinese Characteristics name, we have a recommended marketing mix for Case Study Help given below if Jiuding Capital Private Equity Firm With Chinese Characteristics chooses to go on 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 extra development potential of 10.1% which might be a great adequate niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality that the Diy market can likewise be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This rate would not consist of the cost of the 'vari suggestion' or the 'glumetic suggestion'. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to acquire the item on his own. This would increase the possibility of affecting mechanics to buy the product for use in their daily upkeep jobs.

Jiuding Capital Private Equity Firm With Chinese Characteristics would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net success for Jiuding Capital Private Equity Firm With Chinese Characteristics for releasing Case Study Help.

Place: A circulation design where Jiuding Capital Private Equity Firm With Chinese Characteristics directly sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Jiuding Capital Private Equity Firm With Chinese Characteristics. Since the sales team is currently engaged in selling immediate adhesives and they do not have competence in offering dispensers, involving them in the selling process would be expensive especially as each sales call expenses approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: Although a low marketing budget needs to have been appointed to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is advised for initially introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Jiuding Capital Private Equity Firm With Chinese Characteristics Case Study Analysis

A recommended strategy of action in the form of a marketing mix has actually been discussed for Case Study Help, the fact still remains that the item would not complement Jiuding Capital Private Equity Firm With Chinese Characteristics item line. We have a look at appendix 2, we can see how the overall gross success for the two models is anticipated to be around $49377 if 250 systems of each model are produced each year according to the plan. The initial prepared advertising is approximately $52000 per year which would be putting a strain on the company's resources leaving Jiuding Capital Private Equity Firm With Chinese Characteristics with a negative net income if the costs are assigned to Case Study Help only.

The fact that Jiuding Capital Private Equity Firm With Chinese Characteristics has actually already sustained a preliminary investment of $48000 in the form of capital expense and model development suggests that the revenue from Case Study Help is not enough to undertake the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable choice specifically of it is impacting the sale of the business's revenue producing models.



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