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Kennecott Copper Corp Case Study Solution
Kennecott Copper Corp Case Study Help
Kennecott Copper Corp Case Study Analysis
The following area focuses on the of marketing for Kennecott Copper Corp where the business's clients, competitors and core proficiencies have evaluated in order to validate whether the decision to release Case Study Help under Kennecott Copper Corp trademark name would be a feasible choice or not. We have firstly taken a look at the kind of consumers that Kennecott Copper Corp 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 launching Case Study Help under Kennecott Copper Corp name.
Kennecott Copper Corp consumers can be segmented into two groups, final customers and industrial customers. Both the groups utilize Kennecott Copper Corp high performance adhesives while the company is not just involved in the production of these adhesives however also markets them to these consumer groups. There are 2 kinds of items that are being sold to these potential markets; anaerobic adhesives and instant adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Kennecott Copper Corp compared to that of instant adhesives.
The total market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Kennecott Copper Corp possible market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and manufacturers dealing in items made from leather, wood, plastic and metal. This diversity in consumers recommends that Kennecott Copper Corp can target has numerous choices in terms of segmenting the market for its new item specifically as each of these groups would be needing the exact same kind of item with particular modifications in need, product packaging or amount. Nevertheless, the customer is not cost sensitive or brand name conscious so launching a low priced dispenser under Kennecott Copper Corp name is not an advised option.
Kennecott Copper Corp is not simply a manufacturer of adhesives however delights in market leadership in the instantaneous adhesive market. The company has its own experienced and competent sales force which adds value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core competences are not limited to adhesive production just as Kennecott Copper Corp likewise focuses on making adhesive giving devices to help with the use of its items. This dual production strategy provides Kennecott Copper Corp an edge over rivals given that none of the competitors of dispensing equipment makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the consumer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Kennecott Copper Corp, it is important to highlight the company's weak points.
The business's sales personnel is competent in training distributors, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It must also be noted that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the obstacles of offering devices under a particular brand name.
The business has items aimed at the high end of the market if we look at Kennecott Copper Corp product line in adhesive devices particularly. The possibility of sales cannibalization exists if Kennecott Copper Corp offers Case Study Help under the very same portfolio. Offered the truth that Case Study Help is priced lower than Kennecott Copper Corp high-end line of product, sales cannibalization would definitely be affecting Kennecott Copper Corp sales revenue if the adhesive devices is sold under the company's brand name.
We can see sales cannibalization affecting Kennecott Copper Corp 27A Pencil Applicator which is priced at $275. There is another possible danger which could decrease Kennecott Copper Corp earnings if Case Study Help is released under the company's trademark name. The reality that $175000 has been invested in promoting SuperBonder recommends 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.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or rate awareness which gives us 2 extra reasons for not releasing a low priced product under the business's brand name.
The competitive environment of Kennecott Copper Corp would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low knowledge about the product. While business like Kennecott Copper Corp have handled to train suppliers relating to adhesives, the last consumer depends on distributors. Around 72% of sales are made straight by makers and suppliers for immediate adhesives so the purchaser 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 buyer. The truth stays that the supplier does not have much influence over the buyer at this point especially as the buyer does not reveal brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a significant control over the actual sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the marketplace allows ease of entry. However, if we look at Kennecott Copper Corp in particular, the company has double capabilities in regards to being a manufacturer of adhesive dispensers and immediate adhesives. Prospective threats in equipment dispensing market are low which reveals the possibility of developing brand name awareness in not just instant adhesives but likewise in giving adhesives as none of the industry players has actually handled to place itself in double abilities.
Hazard of Substitutes: The danger of alternatives in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality stays that if Kennecott Copper Corp introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given numerous factors for not launching Case Study Help under Kennecott Copper Corp name, we have actually a suggested marketing mix for Case Study Help offered below if Kennecott Copper Corp decides to proceed with the launch.
Product & Target Market: The target market picked 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 adequate specific niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.
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 by means of direct selling. This rate would not consist of the expense of the 'vari pointer' or the 'glumetic tip'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to buy the item on his own. This would increase the possibility of affecting mechanics to acquire the product for use in their daily upkeep tasks.
Kennecott Copper Corp would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Kennecott Copper Corp for launching Case Study Help.
Place: A distribution model where Kennecott Copper Corp directly sends the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Kennecott Copper Corp. Considering that the sales team is already engaged in offering instant adhesives and they do not have know-how in selling dispensers, involving them in the selling process would be pricey specifically as each sales call expenses around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low marketing budget plan should have been appointed to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is suggested for at first introducing the product in the market. The planned 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 summarized in appendix 4).
