Kraves Candy Co Clodhoppers C Case Study Help Checklist

Kraves Candy Co Clodhoppers C Case Study Help Checklist

Kraves Candy Co Clodhoppers C Case Study Solution
Kraves Candy Co Clodhoppers C Case Study Help
Kraves Candy Co Clodhoppers C Case Study Analysis

Analyses for Evaluating Kraves Candy Co Clodhoppers C decision to launch Case Study Solution

The following section concentrates on the of marketing for Kraves Candy Co Clodhoppers C where the business's clients, competitors and core proficiencies have evaluated in order to validate whether the decision to introduce Case Study Help under Kraves Candy Co Clodhoppers C brand would be a possible choice or not. We have first of all looked at the kind of customers that Kraves Candy Co Clodhoppers C deals in while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Kraves Candy Co Clodhoppers C name.
Kraves Candy Co Clodhoppers C Case Study Solution

Customer Analysis

Both the groups use Kraves Candy Co Clodhoppers C high performance adhesives while the company is not just involved 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 considering that the market for the latter has a lower potential for Kraves Candy Co Clodhoppers C compared to that of immediate 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 determined earlier.If we take a look at a breakdown of Kraves Candy Co Clodhoppers C potential market or consumer groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair and overhauling companies (MRO) and manufacturers handling products made of leather, metal, plastic and wood. This variety in consumers recommends that Kraves Candy Co Clodhoppers C can target has various choices in regards to segmenting the market for its new item particularly as each of these groups would be needing the same type of product with particular modifications in product packaging, quantity or demand. Nevertheless, the consumer is not rate sensitive or brand mindful so releasing a low priced dispenser under Kraves Candy Co Clodhoppers C name is not a recommended choice.

Company Analysis

Kraves Candy Co Clodhoppers C is not simply a manufacturer of adhesives but enjoys market leadership in the instantaneous adhesive industry. The business has its own competent and competent sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not limited to adhesive production just as Kraves Candy Co Clodhoppers C likewise specializes in making adhesive giving devices to help with using its items. This double production method offers Kraves Candy Co Clodhoppers C an edge over rivals considering that none of the rivals of giving devices makes instantaneous adhesives. Furthermore, none of these rivals offers directly to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Kraves Candy Co Clodhoppers C, it is important to highlight the company's weak points too.

Although the company's sales staff is proficient in training suppliers, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. 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 company has actually products aimed at the high end of the market if we look at Kraves Candy Co Clodhoppers C item line in adhesive equipment especially. The possibility of sales cannibalization exists if Kraves Candy Co Clodhoppers C sells Case Study Help under the same portfolio. Provided the truth that Case Study Help is priced lower than Kraves Candy Co Clodhoppers C high-end line of product, sales cannibalization would definitely be affecting Kraves Candy Co Clodhoppers C sales income if the adhesive equipment is offered under the company's brand.

We can see sales cannibalization affecting Kraves Candy Co Clodhoppers C 27A Pencil Applicator which is priced at $275. There is another possible danger which could lower Kraves Candy Co Clodhoppers C profits if Case Study Help is introduced under the business's trademark name. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

Furthermore, if we look at the market in general, the adhesives market does disappoint brand name orientation or cost consciousness which gives us two extra factors for not releasing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Kraves Candy Co Clodhoppers C would be studied by means of Porter's five 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 development potential due to the existence of fragmented segments with Kraves Candy Co Clodhoppers C delighting in leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While industry competition between these gamers could be called 'intense' as the consumer is not brand conscious and each of these players has prominence in terms of market share, the reality still remains that the market is not saturated and still has several market sectors which can be targeted as possible niche markets even when releasing an adhesive. Nevertheless, we can even mention the truth that sales cannibalization might be causing industry rivalry in the adhesive dispenser market while the market for instant adhesives provides growth potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low understanding about the item. While companies like Kraves Candy Co Clodhoppers C have managed to train suppliers relating to adhesives, the last customer depends on suppliers. Roughly 72% of sales are made straight by manufacturers and distributors for instantaneous 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 said that the supplier delights in a greater bargaining power compared to the buyer. Nevertheless, the truth stays that the supplier does not have much influence over the buyer at this point particularly as the buyer does disappoint brand recognition or cost level of sensitivity. This suggests that the supplier has the higher power when it concerns the adhesive market while the buyer and the producer do not have a significant control over the actual sales.

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 suggests that the market permits ease of entry. If we look at Kraves Candy Co Clodhoppers C in particular, the business has double abilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Potential risks in equipment giving market are low which reveals the possibility of developing brand awareness in not just immediate adhesives but also in dispensing adhesives as none of the market players has actually managed to place itself in dual capabilities.

Risk of Substitutes: The threat of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact remains that if Kraves Candy Co Clodhoppers C introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).

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

Kraves Candy Co Clodhoppers C Case Study Help

Despite the fact that our 3C analysis has actually offered various reasons for not launching Case Study Help under Kraves Candy Co Clodhoppers C name, we have actually a suggested marketing mix for Case Study Help given listed below if Kraves Candy Co Clodhoppers C chooses to proceed with the launch.

Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a number of factors. There are currently 89257 establishments in this section and a high use of around 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an extra development potential of 10.1% which might be a sufficient niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the customer can choose whether he wishes to go with either of the two devices or not.

Price: The recommended rate 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. A price below $250 would not require approvals from the senior management in case a mechanic at a motor lorry maintenance shop needs to acquire the product on his own.

Kraves Candy Co Clodhoppers C would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Kraves Candy Co Clodhoppers C for launching Case Study Help.

Place: A distribution design where Kraves Candy Co Clodhoppers C directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Kraves Candy Co Clodhoppers C. Given that the sales group is currently participated in offering immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be costly particularly as each sales call costs approximately $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable option.

Promotion: A low advertising budget must have been designated to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended advertising strategy costing $51816 is suggested for initially introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in lorry maintenance stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Kraves Candy Co Clodhoppers C Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has been discussed for Case Study Help, the reality still stays that the item would not match Kraves Candy Co Clodhoppers C line of product. 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 design are made per year according to the plan. However, the preliminary planned advertising is approximately $52000 per year which would be putting a stress on the company's resources leaving Kraves Candy Co Clodhoppers C with an unfavorable net income if the expenditures are assigned to Case Study Help just.

The truth that Kraves Candy Co Clodhoppers C has currently sustained an initial investment of $48000 in the form of capital expense and prototype development shows that the profits from Case Study Help is not enough to carry out the risk 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 profits creating models.