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Khosla Ventures Biofuels Strategy Case Study Solution
Khosla Ventures Biofuels Strategy Case Study Help
Khosla Ventures Biofuels Strategy Case Study Analysis
The following area concentrates on the of marketing for Khosla Ventures Biofuels Strategy where the company's customers, competitors and core proficiencies have assessed in order to validate whether the choice to release Case Study Help under Khosla Ventures Biofuels Strategy trademark name would be a possible alternative or not. We have actually to start with taken a look at the type of consumers that Khosla Ventures Biofuels Strategy deals in while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Khosla Ventures Biofuels Strategy name.
Both the groups utilize Khosla Ventures Biofuels Strategy high efficiency adhesives while the company is not only involved in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Khosla Ventures Biofuels Strategy compared to that of instant adhesives.
The total market for instant adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we take a look at a breakdown of Khosla Ventures Biofuels Strategy prospective market or customer groups, we can see that the business offers to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and manufacturers dealing in products made from leather, wood, plastic and metal. This variety in customers suggests that Khosla Ventures Biofuels Strategy can target has numerous options in terms of segmenting the marketplace for its new product especially as each of these groups would be requiring the same kind of item with respective modifications in need, amount or product packaging. The consumer is not rate delicate or brand mindful so releasing a low priced dispenser under Khosla Ventures Biofuels Strategy name is not a recommended alternative.
Khosla Ventures Biofuels Strategy is not just a maker of adhesives however enjoys market leadership in the instantaneous adhesive market. The business has its own knowledgeable and qualified sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.
Core competences are not limited to adhesive production only as Khosla Ventures Biofuels Strategy also concentrates on making adhesive giving equipment to help with using its items. This double production method gives Khosla Ventures Biofuels Strategy an edge over competitors since none of the competitors of giving equipment makes instant adhesives. Additionally, none of these competitors sells directly to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Khosla Ventures Biofuels Strategy, it is essential to highlight the company's weaknesses also.
Although the company's sales staff is proficient in training distributors, the fact 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. It needs to also be kept in mind that the suppliers are showing reluctance when it comes to offering equipment that needs maintenance which increases the challenges of selling equipment under a specific brand name.
If we look at Khosla Ventures Biofuels Strategy product line in adhesive equipment especially, the business has actually items focused on the luxury of the market. If Khosla Ventures Biofuels Strategy sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Khosla Ventures Biofuels Strategy high-end product line, sales cannibalization would absolutely be impacting Khosla Ventures Biofuels Strategy sales earnings if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Khosla Ventures Biofuels Strategy 27A Pencil Applicator which is priced at $275. There is another possible threat which could reduce Khosla Ventures Biofuels Strategy earnings if Case Study Help is launched under the business's brand name. The fact that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we look at the market in general, the adhesives market does not show brand name orientation or rate awareness which gives us two extra reasons for not introducing a low priced item under the company's trademark name.
The competitive environment of Khosla Ventures Biofuels Strategy would be studied by means of Porter's 5 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 particularly as the buyer has low knowledge about the product. While business like Khosla Ventures Biofuels Strategy have handled to train distributors regarding adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made straight by producers and suppliers 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 three gamers, it could be said that the provider enjoys a greater bargaining power compared to the purchaser. The truth stays that the supplier does not have much influence over the buyer at this point specifically as the purchaser does not show brand name acknowledgment or rate 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 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 competitors in the instantaneous adhesive market shows that the market permits ease of entry. However, if we take a look at Khosla Ventures Biofuels Strategy in particular, the business has dual abilities in terms of being a maker of immediate adhesives and adhesive dispensers. Prospective dangers in equipment dispensing market are low which reveals the possibility of producing brand name awareness in not only instantaneous adhesives however likewise in dispensing adhesives as none of the industry gamers has actually managed to position itself in dual capabilities.
Danger of Substitutes: The hazard of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality stays that if Khosla Ventures Biofuels Strategy 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 actually offered numerous factors for not launching Case Study Help under Khosla Ventures Biofuels Strategy name, we have actually a suggested marketing mix for Case Study Help offered below if Khosla Ventures Biofuels Strategy decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional growth capacity of 10.1% which may be an excellent adequate specific niche market section for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or via direct selling. A price below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance shop requires to acquire the product on his own.
Khosla Ventures Biofuels Strategy would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Khosla Ventures Biofuels Strategy for launching Case Study Help.
Place: A distribution model where Khosla Ventures Biofuels Strategy straight sends the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be used by Khosla Ventures Biofuels Strategy. Since the sales team is already taken part in offering instant adhesives and they do not have competence in offering dispensers, including them in the selling process would be pricey specifically as each sales call costs roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low advertising budget needs to have been assigned to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is recommended for at first presenting the item in the market. The planned advertisements in publications would be targeted at mechanics in automobile upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
