Kennecott Copper Corp Case Study Help Checklist

Kennecott Copper Corp Case Study Help Checklist

Kennecott Copper Corp Case Study Solution
Kennecott Copper Corp Case Study Help
Kennecott Copper Corp Case Study Analysis

Analyses for Evaluating Kennecott Copper Corp decision to launch Case Study Solution

The following area focuses on the of marketing for Kennecott Copper Corp where the business's clients, rivals and core proficiencies have assessed in order to justify whether the choice to launch Case Study Help under Kennecott Copper Corp brand name would be a practical choice or not. We have firstly taken a look at the kind of customers that Kennecott Copper Corp deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Kennecott Copper Corp name.
Kennecott Copper Corp Case Study Solution

Customer Analysis

Both the groups use Kennecott Copper Corp high performance adhesives while the business is not only included in the production of these adhesives however also markets them to these customer groups. We would be focusing on the consumers of instant adhesives for this analysis given that the market for the latter has a lower potential for Kennecott Copper Corp compared to that of immediate adhesives.

The total market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been identified earlier.If we look at a breakdown of Kennecott Copper Corp potential market or customer groups, we can see that the business sells to OEMs (Original Devices Producers), Do-it-Yourself clients, repair work and overhauling companies (MRO) and manufacturers dealing in items made from leather, metal, plastic and wood. This variety in consumers suggests that Kennecott Copper Corp can target has numerous alternatives in regards to segmenting the market for its new product especially as each of these groups would be needing the very same kind of product with respective changes in demand, packaging or amount. The consumer is not cost sensitive or brand conscious so introducing a low priced dispenser under Kennecott Copper Corp name is not a suggested option.

Company Analysis

Kennecott Copper Corp is not just a maker of adhesives but delights in market leadership in the immediate adhesive industry. The business has its own skilled and qualified sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Kennecott Copper Corp believes in special distribution as suggested by the fact that it has actually picked to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for broadening reach via suppliers. The business's reach is not restricted to The United States and Canada just as it likewise takes pleasure in global sales. With 1400 outlets spread out all throughout The United States and Canada, Kennecott Copper Corp has its internal production plants rather than using out-sourcing as the favored strategy.

Core competences are not limited to adhesive manufacturing only as Kennecott Copper Corp also focuses on making adhesive giving equipment to help with using its items. This double production technique gives Kennecott Copper Corp an edge over rivals since none of the competitors of giving equipment makes instantaneous adhesives. In addition, none of these rivals offers directly to the consumer either and makes use of suppliers for connecting to clients. While we are taking a look at the strengths of Kennecott Copper Corp, it is important to highlight the business's weak points too.

Although the business's sales staff is competent in training suppliers, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It should also be noted that the distributors are revealing reluctance when it comes to offering devices that requires maintenance which increases the obstacles of selling equipment under a specific brand name.

The company has actually items aimed at the high end of the market if we look at Kennecott Copper Corp item line in adhesive devices particularly. If Kennecott Copper Corp offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Kennecott Copper Corp high-end line of product, sales cannibalization would certainly be impacting Kennecott Copper Corp sales earnings if the adhesive devices is sold under the company's brand.

We can see sales cannibalization affecting Kennecott Copper Corp 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible hazard which could decrease Kennecott Copper Corp revenue. The truth that $175000 has actually been spent 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 instant adhesive.

Furthermore, if we look at the market in general, the adhesives market does not show brand name orientation or price awareness which provides us two additional factors for not introducing a low priced product under the business's trademark name.

Competitor Analysis

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.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth potential due to the existence of fragmented sections with Kennecott Copper Corp taking pleasure in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While market competition between these gamers could be called 'intense' as the consumer is not brand conscious and each of these gamers has prominence in terms of market share, the truth still remains that the industry is not filled and still has several market sectors which can be targeted as potential specific niche markets even when releasing an adhesive. However, we can even explain the reality that sales cannibalization might be leading to industry rivalry in the adhesive dispenser market while the marketplace for instantaneous adhesives provides development capacity.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the purchaser has low knowledge about the item. While business like Kennecott Copper Corp have actually managed to train distributors concerning adhesives, the last consumer is dependent on distributors. Approximately 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 gamers, it could be said that the provider enjoys a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much influence over the purchaser at this point especially as the buyer does not reveal brand recognition or cost level of sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a major control over the actual sales, this indicates that the supplier has the higher 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 instant adhesive market suggests that the market permits ease of entry. However, if we look at Kennecott Copper Corp in particular, the company has dual abilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Prospective dangers in devices giving market are low which shows the possibility of producing brand name awareness in not only instantaneous adhesives however likewise in giving adhesives as none of the market gamers has actually handled to position itself in double abilities.

Danger of Substitutes: The threat of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Kennecott Copper Corp introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).

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

Kennecott Copper Corp Case Study Help

Despite the fact that our 3C analysis has actually offered various reasons for not introducing Case Study Help under Kennecott Copper Corp name, we have a suggested marketing mix for Case Study Help provided below if Kennecott Copper Corp chooses to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a number of factors. There are currently 89257 facilities in this sector and a high usage of approximately 58900 lbs. is being used by 36.1 % of the market. This market has an additional development potential of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the truth that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The product would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wishes to opt for either of the two devices or not.

Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor lorry upkeep store requires to acquire the product on his own.

Kennecott Copper Corp would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net success for Kennecott Copper Corp for releasing Case Study Help.

Place: A distribution model where Kennecott Copper Corp straight sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Kennecott Copper Corp. Considering that the sales group is currently participated in offering immediate adhesives and they do not have know-how in offering dispensers, including them in the selling process would be costly specifically as each sales call expenses around $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial choice.

Promotion: Although a low marketing budget needs to have been appointed to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is recommended for initially introducing the product in the market. The prepared ads in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Kennecott Copper Corp Case Study Analysis

A recommended plan of action in the type of a marketing mix has actually been talked about for Case Study Help, the truth still stays that the item would not complement Kennecott Copper Corp item line. We have a look at appendix 2, we can see how the overall gross profitability for the two models is anticipated to be approximately $49377 if 250 units of each model are manufactured annually according to the strategy. Nevertheless, the preliminary planned marketing is roughly $52000 annually which would be putting a strain on the business's resources leaving Kennecott Copper Corp with an unfavorable earnings if the expenditures are allocated to Case Study Help only.

The truth that Kennecott Copper Corp has actually currently sustained a preliminary investment of $48000 in the form of capital expense and prototype development suggests that the profits from Case Study Help is not enough to undertake the danger of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low flexibility of need is not a preferable choice particularly of it is affecting the sale of the business's profits generating designs.