Koffman Corporation Case Study Help Checklist

Koffman Corporation Case Study Help Checklist

Koffman Corporation Case Study Solution
Koffman Corporation Case Study Help
Koffman Corporation Case Study Analysis

Analyses for Evaluating Koffman Corporation decision to launch Case Study Solution

The following section concentrates on the of marketing for Koffman Corporation where the company's consumers, rivals and core competencies have actually evaluated in order to validate whether the decision to introduce Case Study Help under Koffman Corporation brand would be a possible choice or not. We have to start with looked at the type of clients that Koffman Corporation handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Koffman Corporation name.
Koffman Corporation Case Study Solution

Customer Analysis

Koffman Corporation clients can be segmented into 2 groups, last consumers and industrial consumers. Both the groups utilize Koffman Corporation high performance adhesives while the business is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of products that are being sold to these possible markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of immediate adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Koffman Corporation compared to that of immediate adhesives.

The total market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Koffman Corporation prospective market or consumer groups, we can see that the business sells to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair and revamping companies (MRO) and makers handling items made of leather, metal, wood and plastic. This diversity in clients recommends that Koffman Corporation can target has numerous choices in terms of segmenting the marketplace for its brand-new item particularly as each of these groups would be requiring the exact same kind of item with respective modifications in product packaging, amount or demand. The customer is not cost sensitive or brand mindful so releasing a low priced dispenser under Koffman Corporation name is not an advised choice.

Company Analysis

Koffman Corporation is not just a producer of adhesives however takes pleasure in market management in the instantaneous adhesive market. The company has its own experienced and certified sales force which adds worth to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives. Koffman Corporation believes in unique circulation as indicated by the fact that it has actually picked to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach through distributors. The business's reach is not restricted to The United States and Canada only as it also enjoys worldwide sales. With 1400 outlets spread out all throughout The United States and Canada, Koffman Corporation has its in-house production plants rather than utilizing out-sourcing as the preferred strategy.

Core skills are not restricted to adhesive production just as Koffman Corporation likewise concentrates on making adhesive giving devices to help with making use of its products. This dual production technique provides Koffman Corporation an edge over rivals since none of the competitors of giving devices makes immediate adhesives. Furthermore, none of these competitors sells directly to the customer either and uses distributors for reaching out to clients. While we are taking a look at the strengths of Koffman Corporation, it is necessary to highlight the business's weaknesses too.

Although the business's sales personnel is skilled in training suppliers, the truth remains that the sales team is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it must likewise be noted that the distributors are showing hesitation when it comes to selling devices that requires maintenance which increases the obstacles of selling devices under a specific brand name.

The business has actually items aimed at the high end of the market if we look at Koffman Corporation item line in adhesive devices especially. The possibility of sales cannibalization exists if Koffman Corporation offers Case Study Help under the same portfolio. Offered the reality that Case Study Help is priced lower than Koffman Corporation high-end product line, sales cannibalization would definitely be impacting Koffman Corporation sales income if the adhesive equipment is offered under the business's trademark name.

We can see sales cannibalization affecting Koffman Corporation 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible threat which could lower Koffman Corporation income. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

In addition, if we look at the market in general, the adhesives market does not show brand orientation or cost consciousness which gives us 2 extra reasons for not launching a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Koffman Corporation would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry 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 sectors with Koffman Corporation delighting in leadership and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While market rivalry in between these players could be called 'extreme' as the consumer is not brand conscious and each of these gamers has prominence in regards to market share, the truth still stays that the market is not filled and still has several market segments which can be targeted as prospective niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for immediate adhesives offers growth potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low understanding about the item. While business like Koffman Corporation have handled to train suppliers regarding adhesives, the final consumer depends on distributors. Around 72% of sales are made directly by producers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by 3 gamers, it could be said that the provider enjoys a higher bargaining power compared to the buyer. However, the truth stays that the provider does not have much influence over the purchaser at this point particularly as the purchaser does disappoint brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the purchaser and the producer 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 name commitment and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the market enables ease of entry. However, if we take a look at Koffman Corporation in particular, the company has double capabilities in regards to being a maker of instantaneous adhesives and adhesive dispensers. Potential risks in equipment giving industry are low which shows the possibility of producing brand awareness in not just instant adhesives however likewise in dispensing adhesives as none of the market players has actually managed to position itself in double abilities.

Danger of Substitutes: The threat of replacements in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality stays that if Koffman Corporation presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).

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

Koffman Corporation Case Study Help

Despite the fact that our 3C analysis has actually given various factors for not introducing Case Study Help under Koffman Corporation name, we have a suggested marketing mix for Case Study Help provided below if Koffman Corporation chooses to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional growth potential of 10.1% which might be a great adequate specific niche market sector for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The suggested rate 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 price listed below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance store needs to buy the item on his own.

Koffman Corporation would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Koffman Corporation for introducing Case Study Help.

Place: A circulation model where Koffman Corporation directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Koffman Corporation. Because the sales group is currently participated in selling instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be costly specifically as each sales call costs roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: A low promotional spending plan should have been appointed to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested marketing plan costing $51816 is advised for initially introducing the item in the market. The prepared ads in publications would be targeted at mechanics in car upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Koffman Corporation Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been gone over for Case Study Help, the fact still remains that the item would not match Koffman Corporation product line. We take a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be around $49377 if 250 systems of each model are produced each year based on the strategy. Nevertheless, the initial planned advertising is approximately $52000 each year which would be putting a strain on the company's resources leaving Koffman Corporation with an unfavorable earnings if the expenditures are designated to Case Study Help just.

The truth that Koffman Corporation has actually already sustained a preliminary investment of $48000 in the form of capital cost and prototype development shows that the earnings from Case Study Help is insufficient to undertake the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of need is not a more effective option especially of it is impacting the sale of the company's revenue generating designs.