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Kaiser Steel Corp 1984 Case Study Solution
Kaiser Steel Corp 1984 Case Study Help
Kaiser Steel Corp 1984 Case Study Analysis
The following area concentrates on the of marketing for Kaiser Steel Corp 1984 where the company's customers, competitors and core competencies have actually examined in order to validate whether the choice to release Case Study Help under Kaiser Steel Corp 1984 brand name would be a possible alternative or not. We have to start with looked at the type of clients that Kaiser Steel Corp 1984 handle while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Kaiser Steel Corp 1984 name.
Kaiser Steel Corp 1984 consumers can be segmented into two groups, final consumers and commercial clients. Both the groups utilize Kaiser Steel Corp 1984 high performance adhesives while the company is not just associated with the production of these adhesives however also markets them to these client groups. There are two types of products that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be focusing on the customers of immediate adhesives for this analysis given that the marketplace for the latter has a lower potential for Kaiser Steel Corp 1984 compared to that of instant adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Kaiser Steel Corp 1984 prospective market or client groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself clients, repair work and revamping business (MRO) and manufacturers handling items made from leather, wood, plastic and metal. This variety in customers recommends that Kaiser Steel Corp 1984 can target has various alternatives in regards to segmenting the marketplace for its brand-new product particularly as each of these groups would be needing the very same kind of product with particular modifications in product packaging, need or quantity. Nevertheless, the customer is not price delicate or brand mindful so introducing a low priced dispenser under Kaiser Steel Corp 1984 name is not a suggested option.
Kaiser Steel Corp 1984 is not simply a manufacturer of adhesives however delights in market leadership in the immediate adhesive market. The company has its own knowledgeable and qualified sales force which adds value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.
Core skills are not restricted to adhesive manufacturing only as Kaiser Steel Corp 1984 also concentrates on making adhesive dispensing equipment to assist in making use of its products. This double production method gives Kaiser Steel Corp 1984 an edge over rivals given that none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these rivals sells straight to the customer either and utilizes distributors for reaching out to consumers. While we are looking at the strengths of Kaiser Steel Corp 1984, it is very important to highlight the company's weak points also.
Although the company's sales staff is experienced in training suppliers, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. Nevertheless, it must likewise be kept in mind that the suppliers are revealing reluctance when it concerns selling devices that requires servicing which increases the challenges of selling equipment under a particular brand name.
If we take a look at Kaiser Steel Corp 1984 product line in adhesive devices particularly, the company has actually products aimed at the high-end of the market. If Kaiser Steel Corp 1984 offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Kaiser Steel Corp 1984 high-end product line, sales cannibalization would certainly be affecting Kaiser Steel Corp 1984 sales earnings if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Kaiser Steel Corp 1984 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Kaiser Steel Corp 1984 revenue if Case Study Help is introduced under the company's brand. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand orientation or cost awareness which gives us 2 additional reasons for not launching a low priced item under the business's brand.
The competitive environment of Kaiser Steel Corp 1984 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 industry is low specifically as the purchaser has low knowledge about the item. While companies like Kaiser Steel Corp 1984 have actually handled to train suppliers relating to adhesives, the final consumer is dependent on suppliers. Roughly 72% of sales are made straight by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by 3 players, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the buyer at this point specifically as the purchaser does not show brand name recognition or cost sensitivity. This indicates that the distributor has the higher power when it concerns the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the instant adhesive market suggests that the marketplace enables ease of entry. However, if we look at Kaiser Steel Corp 1984 in particular, the company has dual abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible risks in devices giving industry are low which reveals the possibility of creating brand awareness in not just immediate adhesives but likewise in giving adhesives as none of the market players has handled to position itself in double abilities.
Risk of Substitutes: The hazard of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Kaiser Steel Corp 1984 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 offered various reasons for not launching Case Study Help under Kaiser Steel Corp 1984 name, we have actually a suggested marketing mix for Case Study Help given listed below if Kaiser Steel Corp 1984 chooses to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional development potential of 10.1% which may be an excellent enough niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. This cost would not include the expense of the 'vari tip' or the 'glumetic idea'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to acquire the item on his own. This would increase the possibility of influencing mechanics to buy the item for usage in their day-to-day maintenance tasks.
Kaiser Steel Corp 1984 would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Kaiser Steel Corp 1984 for introducing Case Study Help.
Place: A distribution model where Kaiser Steel Corp 1984 directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Kaiser Steel Corp 1984. Since the sales group is already engaged in selling instantaneous adhesives and they do not have proficiency in offering dispensers, involving them in the selling procedure would be expensive specifically as each sales call expenses around $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: Although a low promotional budget plan needs to have been designated to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is recommended for initially introducing the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
