The following area concentrates on the of marketing for Ligand Pharmaceuticals Incorporated where the company's customers, competitors and core competencies have examined in order to justify whether the decision to introduce Case Study Help under Ligand Pharmaceuticals Incorporated trademark name would be a possible alternative or not. We have actually first of all looked at the type of clients that Ligand Pharmaceuticals Incorporated deals in while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Ligand Pharmaceuticals Incorporated name.
Both the groups use Ligand Pharmaceuticals Incorporated high performance adhesives while the business is not only included in the production of these adhesives however also markets them to these client groups. We would be focusing on the customers of instantaneous adhesives for this analysis given that the market for the latter has a lower potential for Ligand Pharmaceuticals Incorporated compared to that of instantaneous adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have actually been recognized earlier.If we look at a breakdown of Ligand Pharmaceuticals Incorporated possible market or customer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and producers dealing in items made of leather, metal, plastic and wood. This variety in consumers recommends that Ligand Pharmaceuticals Incorporated can target has different choices in terms of segmenting the market for its brand-new product especially as each of these groups would be needing the exact same kind of item with particular modifications in packaging, amount or demand. The customer is not rate sensitive or brand conscious so introducing a low priced dispenser under Ligand Pharmaceuticals Incorporated name is not a recommended alternative.
Ligand Pharmaceuticals Incorporated is not simply a manufacturer of adhesives but delights in market management in the immediate adhesive market. The company has its own experienced and certified sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.
Core competences are not limited to adhesive manufacturing just as Ligand Pharmaceuticals Incorporated likewise focuses on making adhesive dispensing equipment to facilitate making use of its items. This dual production technique gives Ligand Pharmaceuticals Incorporated an edge over competitors considering that none of the rivals of giving equipment makes immediate adhesives. In addition, 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 Ligand Pharmaceuticals Incorporated, it is important to highlight the business's weaknesses as well.
The business's sales staff is knowledgeable in training distributors, the fact remains 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 needs to also be noted that the suppliers are showing unwillingness when it comes to selling devices that needs maintenance which increases the obstacles of offering equipment under a specific brand name.
The company has actually products aimed at the high end of the market if we look at Ligand Pharmaceuticals Incorporated item line in adhesive devices particularly. The possibility of sales cannibalization exists if Ligand Pharmaceuticals Incorporated sells Case Study Help under the very same portfolio. Offered the reality that Case Study Help is priced lower than Ligand Pharmaceuticals Incorporated high-end product line, sales cannibalization would absolutely be affecting Ligand Pharmaceuticals Incorporated sales revenue if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization impacting Ligand Pharmaceuticals Incorporated 27A Pencil Applicator which is priced at $275. There is another possible threat which might decrease Ligand Pharmaceuticals Incorporated income if Case Study Help is introduced under the company's trademark name. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand orientation or price awareness which offers us two extra reasons for not releasing a low priced product under the business's brand.
The competitive environment of Ligand Pharmaceuticals Incorporated would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the buyer has low understanding about the item. While companies like Ligand Pharmaceuticals Incorporated have actually managed to train distributors concerning adhesives, the final customer depends on distributors. Roughly 72% of sales are made directly by producers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 players, it could be stated that the provider enjoys a greater bargaining power compared to the purchaser. Nevertheless, the fact remains that the provider does not have much influence over the purchaser at this moment specifically as the purchaser does disappoint brand name recognition or cost level of sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a significant control over the actual sales, this indicates that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instant adhesive market indicates that the marketplace enables ease of entry. However, if we look at Ligand Pharmaceuticals Incorporated in particular, the company has dual capabilities in regards to being a manufacturer of instantaneous adhesives and adhesive dispensers. Prospective dangers in equipment giving industry are low which reveals the possibility of producing brand name awareness in not only instantaneous adhesives however likewise in giving adhesives as none of the market gamers has handled to place itself in double capabilities.
Danger of Substitutes: The risk of substitutes in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Ligand Pharmaceuticals Incorporated introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided various factors for not launching Case Study Help under Ligand Pharmaceuticals Incorporated name, we have a recommended marketing mix for Case Study Help offered listed below if Ligand Pharmaceuticals Incorporated chooses to go ahead with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a number of factors. There are currently 89257 facilities in this section and a high use of approximately 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional development capacity of 10.1% which might be a sufficient niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The item would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wishes to select either of the two accessories or not.
Price: The recommended price 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 cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep store requires to purchase the item on his own.
Ligand Pharmaceuticals Incorporated would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Ligand Pharmaceuticals Incorporated for releasing Case Study Help.
Place: A circulation design where Ligand Pharmaceuticals Incorporated directly sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Ligand Pharmaceuticals Incorporated. Given that the sales team is already engaged in selling immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be expensive specifically as each sales call expenses roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: Although a low advertising budget plan must have been appointed to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is suggested for at first presenting the item in the market. The prepared ads in publications would be targeted at mechanics in lorry upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).