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Jupiter Management Co Case Study Solution
Jupiter Management Co Case Study Help
Jupiter Management Co Case Study Analysis
The following area focuses on the of marketing for Jupiter Management Co where the business's consumers, rivals and core competencies have actually evaluated in order to validate whether the choice to introduce Case Study Help under Jupiter Management Co brand would be a feasible option or not. We have first of all looked at the type of clients that Jupiter Management Co deals in while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Jupiter Management Co name.
Jupiter Management Co clients can be segmented into 2 groups, last customers and industrial customers. Both the groups utilize Jupiter Management Co high performance adhesives while the business is not only associated with the production of these adhesives however likewise markets them to these client groups. There are two kinds of products that are being offered to these prospective markets; anaerobic adhesives and instant adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower capacity for Jupiter Management Co compared to that of immediate adhesives.
The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have actually been recognized earlier.If we take a look at a breakdown of Jupiter Management Co possible market or customer groups, we can see that the company offers to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair and revamping companies (MRO) and producers handling items made from leather, metal, wood and plastic. This diversity in consumers suggests that Jupiter Management Co can target has various options in terms of segmenting the market for its new product specifically as each of these groups would be needing the very same kind of item with particular changes in quantity, packaging or demand. The client is not cost sensitive or brand mindful so launching a low priced dispenser under Jupiter Management Co name is not an advised option.
Jupiter Management Co is not simply a maker of adhesives however takes pleasure in market leadership in the instant adhesive market. The company has its own skilled and competent sales force which adds worth to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Jupiter Management Co believes in exclusive distribution as suggested by the fact that it has actually chosen to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for expanding reach through distributors. The company's reach is not restricted to North America only as it also delights in international sales. With 1400 outlets spread out all across North America, Jupiter Management Co has its in-house production plants instead of utilizing out-sourcing as the favored strategy.
Core skills are not limited to adhesive manufacturing only as Jupiter Management Co also concentrates on making adhesive dispensing devices to facilitate using its items. This dual production method offers Jupiter Management Co an edge over competitors considering that none of the rivals of dispensing equipment makes instant adhesives. Furthermore, none of these competitors offers straight to the consumer either and makes use of distributors for reaching out to consumers. While we are looking at the strengths of Jupiter Management Co, it is essential to highlight the business's weak points.
Although the company's sales staff is knowledgeable in training distributors, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. Nevertheless, it should likewise be noted that the distributors are revealing reluctance when it pertains to selling equipment that requires servicing which increases the obstacles of selling equipment under a particular brand.
If we take a look at Jupiter Management Co product line in adhesive equipment especially, the company has actually items aimed at the high-end of the marketplace. The possibility of sales cannibalization exists if Jupiter Management Co offers Case Study Help under the exact same portfolio. Offered the reality that Case Study Help is priced lower than Jupiter Management Co high-end product line, sales cannibalization would certainly be affecting Jupiter Management Co sales earnings if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization impacting Jupiter Management Co 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 lower Jupiter Management Co profits. The truth that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or price awareness which offers us two extra reasons for not launching a low priced product under the business's brand.
The competitive environment of Jupiter Management Co would be studied via Porter's five 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 especially as the buyer has low knowledge about the item. While companies like Jupiter Management Co have actually managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three players, it could be said that the provider delights in a higher bargaining power compared to the purchaser. However, the reality stays that the supplier does not have much influence over the buyer at this moment especially as the purchaser does disappoint brand name recognition or cost level of sensitivity. This suggests that the distributor has the higher power when it comes to the adhesive market while the buyer and the maker do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market suggests that the marketplace allows ease of entry. If we look at Jupiter Management Co in specific, the business has double abilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective threats in devices giving market are low which reveals the possibility of producing brand name awareness in not only immediate adhesives however likewise in giving adhesives as none of the market players has managed to place itself in dual capabilities.
Hazard of Substitutes: The risk of replacements in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Jupiter Management Co 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 actually provided different factors for not introducing Case Study Help under Jupiter Management Co name, we have actually a recommended marketing mix for Case Study Help offered below if Jupiter Management Co chooses to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of reasons. There are currently 89257 establishments in this sector and a high usage of around 58900 lbs. is being used by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which may be a good enough specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wants to choose either of the two accessories or not.
Price: The suggested cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor lorry upkeep store needs to acquire the product on his own.
Jupiter Management Co would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Jupiter Management Co for launching Case Study Help.
Place: A distribution design where Jupiter Management Co straight sends the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Jupiter Management Co. Because the sales group is already participated in offering instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling procedure would be pricey specifically as each sales call costs roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: A low marketing budget plan should have been assigned to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is advised for at first introducing the product in the market. The prepared ads in publications would be targeted at mechanics in lorry upkeep stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
