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Kaiser Steel Corp 1972 Case Study Solution
Kaiser Steel Corp 1972 Case Study Help
Kaiser Steel Corp 1972 Case Study Analysis
The following area focuses on the of marketing for Kaiser Steel Corp 1972 where the business's customers, competitors and core competencies have examined in order to validate whether the choice to release Case Study Help under Kaiser Steel Corp 1972 brand name would be a possible option or not. We have actually firstly looked at the type of customers that Kaiser Steel Corp 1972 handle 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 Kaiser Steel Corp 1972 name.
Both the groups use Kaiser Steel Corp 1972 high performance adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these customer groups. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Kaiser Steel Corp 1972 compared to that of immediate adhesives.
The overall market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we look at a breakdown of Kaiser Steel Corp 1972 possible market or client groups, we can see that the company offers to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair and overhauling companies (MRO) and manufacturers dealing in products made from leather, plastic, wood and metal. This variety in customers recommends that Kaiser Steel Corp 1972 can target has various alternatives in regards to segmenting the market for its new item especially as each of these groups would be needing the same type of product with respective modifications in product packaging, quantity or need. The customer is not rate sensitive or brand conscious so releasing a low priced dispenser under Kaiser Steel Corp 1972 name is not a recommended option.
Kaiser Steel Corp 1972 is not simply a producer of adhesives but enjoys market management in the instant adhesive market. The company has its own competent and certified sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Kaiser Steel Corp 1972 believes in special distribution as suggested by the reality that it has chosen to sell through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach by means of suppliers. The company's reach is not restricted to The United States and Canada just as it also enjoys international sales. With 1400 outlets spread out all across The United States and Canada, Kaiser Steel Corp 1972 has its internal production plants instead of utilizing out-sourcing as the favored strategy.
Core skills are not restricted to adhesive production only as Kaiser Steel Corp 1972 also focuses on making adhesive giving devices to help with using its items. This dual production method provides Kaiser Steel Corp 1972 an edge over competitors since none of the competitors of giving equipment makes immediate adhesives. In addition, none of these rivals offers straight to the customer either and uses distributors for reaching out to customers. While we are looking at the strengths of Kaiser Steel Corp 1972, it is important to highlight the company's weak points.
The company's sales personnel is skilled in training suppliers, the truth stays that the sales team is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it must also be kept in mind that the suppliers are revealing hesitation when it pertains to selling devices that requires maintenance which increases the difficulties of offering devices under a specific trademark name.
The business has items aimed at the high end of the market if we look at Kaiser Steel Corp 1972 item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Kaiser Steel Corp 1972 sells Case Study Help under the exact same portfolio. Provided the reality that Case Study Help is priced lower than Kaiser Steel Corp 1972 high-end product line, sales cannibalization would absolutely be impacting Kaiser Steel Corp 1972 sales earnings if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization impacting Kaiser Steel Corp 1972 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which might decrease Kaiser Steel Corp 1972 revenue. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we look at the market in general, the adhesives market does disappoint brand orientation or cost awareness which gives us two extra reasons for not launching a low priced item under the company's trademark name.
The competitive environment of Kaiser Steel Corp 1972 would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the product. While business like Kaiser Steel Corp 1972 have actually managed to train distributors concerning adhesives, the final customer is dependent on distributors. Approximately 72% of sales are made straight by makers and distributors for immediate adhesives so the buyer 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 enjoys a greater bargaining power compared to the purchaser. The reality stays that the supplier does not have much influence over the purchaser at this point specifically as the buyer does not reveal brand recognition or rate level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the real sales, this indicates that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market suggests that the marketplace enables ease of entry. If we look at Kaiser Steel Corp 1972 in specific, the company has dual capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential risks in devices giving market are low which shows the possibility of developing brand awareness in not only instantaneous adhesives however also in dispensing adhesives as none of the market gamers has managed to place itself in double capabilities.
Hazard of Substitutes: The danger of substitutes in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Kaiser Steel Corp 1972 introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given different reasons for not releasing Case Study Help under Kaiser Steel Corp 1972 name, we have actually a recommended marketing mix for Case Study Help offered below if Kaiser Steel Corp 1972 decides to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of factors. This market has an extra development potential of 10.1% which may be a great sufficient niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the fact that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested cost 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 cost would not include the expense of the 'vari tip' or the 'glumetic suggestion'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to purchase the item on his own. This would increase the possibility of influencing mechanics to buy the item for usage in their everyday maintenance tasks.
Kaiser Steel Corp 1972 would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Kaiser Steel Corp 1972 for introducing Case Study Help.
Place: A circulation model where Kaiser Steel Corp 1972 directly sends the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Kaiser Steel Corp 1972. Since the sales group is already participated in offering immediate adhesives and they do not have know-how in selling dispensers, including them in the selling process would be expensive particularly as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: A low promotional budget plan needs to have been assigned to Case Study Help however the reality that the dispenser is an innovation 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 planned advertisements in magazines would be targeted at mechanics in car maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
