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Kreative Kasuals Inc Case Study Help Checklist

Kreative Kasuals Inc Case Study Help Checklist

Kreative Kasuals Inc Case Study Solution
Kreative Kasuals Inc Case Study Help
Kreative Kasuals Inc Case Study Analysis



Analyses for Evaluating Kreative Kasuals Inc decision to launch Case Study Solution


The following section focuses on the of marketing for Kreative Kasuals Inc where the business's customers, rivals and core competencies have evaluated in order to justify whether the choice to introduce Case Study Help under Kreative Kasuals Inc brand would be a possible choice or not. We have first of all taken a look at the kind of customers that Kreative Kasuals Inc handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Kreative Kasuals Inc name.
Kreative Kasuals Inc Case Study Solution

Customer Analysis

Kreative Kasuals Inc clients can be segmented into two groups, final customers and commercial customers. Both the groups utilize Kreative Kasuals Inc high performance adhesives while the business is not only involved in the production of these adhesives but also markets them to these consumer groups. There are two types of items that are being offered to these potential markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of instant adhesives for this analysis since the market for the latter has a lower potential for Kreative Kasuals Inc compared to that of instantaneous adhesives.

The overall market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have been determined earlier.If we take a look at a breakdown of Kreative Kasuals Inc potential market or consumer groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair and overhauling business (MRO) and makers handling products made from leather, metal, plastic and wood. This diversity in customers suggests that Kreative Kasuals Inc can target has numerous choices in terms of segmenting the market for its new item specifically as each of these groups would be requiring the same type of item with particular changes in amount, demand or packaging. Nevertheless, the consumer is not price delicate or brand name mindful so introducing a low priced dispenser under Kreative Kasuals Inc name is not a suggested choice.

Company Analysis

Kreative Kasuals Inc is not simply a manufacturer of adhesives but enjoys market leadership in the immediate adhesive industry. The business has its own skilled and competent sales force which adds value to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core proficiencies are not limited to adhesive manufacturing only as Kreative Kasuals Inc likewise concentrates on making adhesive giving equipment to help with the use of its products. This double production method provides Kreative Kasuals Inc an edge over rivals considering that none of the competitors of giving devices 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 Kreative Kasuals Inc, it is necessary to highlight the business's weak points as well.

The company's sales staff is competent in training distributors, the reality remains that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It must likewise be kept in mind that the distributors are showing unwillingness when it comes to selling devices that needs servicing which increases the challenges of offering equipment under a particular brand name.

The company has products aimed at the high end of the market if we look at Kreative Kasuals Inc product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Kreative Kasuals Inc offers Case Study Help under the very same portfolio. Offered the truth that Case Study Help is priced lower than Kreative Kasuals Inc high-end product line, sales cannibalization would absolutely be impacting Kreative Kasuals Inc sales earnings if the adhesive equipment is offered under the company's brand name.

We can see sales cannibalization impacting Kreative Kasuals Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible hazard which could decrease Kreative Kasuals Inc revenue. The reality 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 reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which offers us two extra reasons for not introducing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Kreative Kasuals Inc 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 capacity due to the existence of fragmented segments with Kreative Kasuals Inc enjoying leadership and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While industry rivalry in between these players could be called 'extreme' as the consumer is not brand conscious and each of these gamers has prominence in terms of market share, the truth still stays that the industry is not filled and still has a number of market sectors which can be targeted as prospective specific niche markets even when launching an adhesive. However, we can even point out the truth that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the marketplace for instant adhesives offers development capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the purchaser has low knowledge about the product. While business like Kreative Kasuals Inc have handled to train distributors regarding adhesives, the last consumer depends on distributors. Approximately 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. The reality remains that the supplier does not have much influence over the buyer at this point particularly as the buyer does not reveal brand name acknowledgment or cost level of sensitivity. This suggests that the supplier has the higher power when it pertains to the adhesive market while the buyer and the manufacturer do not have a significant control over the real sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the instant adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we take a look at Kreative Kasuals Inc in particular, the company has dual capabilities in regards to being a maker of adhesive dispensers and instantaneous adhesives. Prospective hazards in equipment dispensing market are low which shows the possibility of developing brand awareness in not only immediate adhesives however likewise in dispensing adhesives as none of the market players has managed to position itself in double abilities.

Risk of Substitutes: The threat of alternatives in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, built-in applicators, pencil applicators and advanced consoles. The truth stays that if Kreative Kasuals Inc introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).


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

Kreative Kasuals Inc Case Study Help


Despite the fact that our 3C analysis has actually provided different factors for not introducing Case Study Help under Kreative Kasuals Inc name, we have a recommended marketing mix for Case Study Help offered below if Kreative Kasuals Inc decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 facilities in this segment and a high use of approximately 58900 pounds. is being used by 36.1 % of the market. This market has an extra growth capacity of 10.1% which might be a good enough specific niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the fact that the Diy market can also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The item would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to select either of the two accessories or not.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This price would not include the cost of the 'vari idea' or the 'glumetic pointer'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to buy the product on his own. This would increase the possibility of influencing mechanics to buy the product for usage in their everyday maintenance tasks.

Kreative Kasuals Inc would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Kreative Kasuals Inc for launching Case Study Help.

Place: A circulation design where Kreative Kasuals Inc straight sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be used by Kreative Kasuals Inc. Considering that the sales team is already engaged in offering immediate adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be costly especially as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: A low marketing spending plan should have been appointed to Case Study Help but 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 advertising plan costing $51816 is advised for initially introducing the item in the market. The planned ads in publications would be targeted at mechanics in automobile upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Kreative Kasuals Inc Case Study Analysis

A suggested strategy of action in the form of a marketing mix has actually been discussed for Case Study Help, the reality still remains that the item would not match Kreative Kasuals Inc product line. We have a look at appendix 2, we can see how the overall gross success for the two designs is expected to be approximately $49377 if 250 units of each model are made annually as per the plan. However, the initial prepared advertising is approximately $52000 per year which would be putting a pressure on the business's resources leaving Kreative Kasuals Inc with a negative earnings if the costs are designated to Case Study Help just.

The truth that Kreative Kasuals Inc has already incurred a preliminary financial investment of $48000 in the form of capital expense and model development suggests that the revenue from Case Study Help is not enough to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a more effective alternative specifically of it is affecting the sale of the business's income producing designs.



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