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Ligand Pharmaceuticals Incorporated Case Study Solution
Ligand Pharmaceuticals Incorporated Case Study Help
Ligand Pharmaceuticals Incorporated Case Study Analysis
The following section focuses on the of marketing for Ligand Pharmaceuticals Incorporated where the business's consumers, competitors and core competencies have assessed in order to validate whether the choice to introduce Case Study Help under Ligand Pharmaceuticals Incorporated trademark name would be a possible alternative or not. We have firstly taken a look at the type of clients that Ligand Pharmaceuticals Incorporated deals in while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Ligand Pharmaceuticals Incorporated name.
Both the groups use Ligand Pharmaceuticals Incorporated high performance adhesives while the company is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Ligand Pharmaceuticals Incorporated compared to that of immediate adhesives.
The overall market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have been recognized earlier.If we look at a breakdown of Ligand Pharmaceuticals Incorporated potential market or client groups, we can see that the business offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and manufacturers handling products made from leather, plastic, metal and wood. This variety in clients recommends that Ligand Pharmaceuticals Incorporated can target has different alternatives in regards to segmenting the market for its new product specifically as each of these groups would be needing the same type of item with respective changes in quantity, product packaging or demand. The customer is not price delicate or brand name mindful so launching a low priced dispenser under Ligand Pharmaceuticals Incorporated name is not a recommended option.
Ligand Pharmaceuticals Incorporated is not just a producer of adhesives but takes pleasure in market management in the instantaneous adhesive market. The business has its own skilled and certified sales force which adds value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.
Core proficiencies are not restricted to adhesive manufacturing only as Ligand Pharmaceuticals Incorporated likewise specializes in making adhesive dispensing devices to help with using its products. This dual production method offers Ligand Pharmaceuticals Incorporated an edge over competitors since none of the competitors of giving devices makes instant adhesives. Furthermore, none of these rivals sells straight to the customer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Ligand Pharmaceuticals Incorporated, it is important to highlight the company's weaknesses too.
The business's sales personnel is proficient in training distributors, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It should also be noted that the suppliers are showing unwillingness when it comes to offering devices that needs maintenance which increases the challenges of offering devices under a particular brand name.
The business has actually products intended at the high end of the market if we look at Ligand Pharmaceuticals Incorporated product line in adhesive devices especially. If Ligand Pharmaceuticals Incorporated sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Ligand Pharmaceuticals Incorporated high-end line of product, sales cannibalization would definitely be impacting Ligand Pharmaceuticals Incorporated sales profits if the adhesive equipment is sold under the business's brand name.
We can see sales cannibalization affecting Ligand Pharmaceuticals Incorporated 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could reduce Ligand Pharmaceuticals Incorporated income. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does not show brand name orientation or rate consciousness which offers us 2 additional reasons for not introducing a low priced product under the business's trademark name.
The competitive environment of Ligand Pharmaceuticals Incorporated 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 buyer in this industry is low specifically as the purchaser has low knowledge about the item. While business like Ligand Pharmaceuticals Incorporated have handled to train suppliers relating to adhesives, the final consumer depends on suppliers. Around 72% of sales are made straight by makers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three gamers, it could be said that the supplier takes pleasure in a higher bargaining power compared to the purchaser. The reality remains that the supplier does not have much influence over the purchaser at this point especially as the purchaser does not reveal brand name recognition or cost sensitivity. This shows that the supplier has the higher power when it pertains to the adhesive market while the buyer and the manufacturer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instant adhesive market indicates that the market enables ease of entry. Nevertheless, if we look at Ligand Pharmaceuticals Incorporated in particular, the company has dual abilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective hazards in devices giving market are low which shows the possibility of developing brand awareness in not just immediate adhesives but also in dispensing adhesives as none of the market players has actually handled to position itself in dual capabilities.
Hazard of Substitutes: The risk of substitutes in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Ligand Pharmaceuticals Incorporated 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 given different factors for not releasing Case Study Help under Ligand Pharmaceuticals Incorporated name, we have a recommended marketing mix for Case Study Help provided below if Ligand Pharmaceuticals Incorporated decides to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional growth potential of 10.1% which might be a good adequate specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested price 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 rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to acquire the product on his own.
Ligand Pharmaceuticals Incorporated would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Ligand Pharmaceuticals Incorporated for releasing Case Study Help.
Place: A circulation model where Ligand Pharmaceuticals Incorporated directly sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Ligand Pharmaceuticals Incorporated. Considering that the sales team is already participated in offering instant adhesives and they do not have expertise in selling dispensers, including them in the selling process would be costly particularly as each sales call expenses approximately $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low promotional budget should have been assigned 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 sustained for production, the suggested advertising strategy costing $51816 is suggested for at first introducing the product in the market. The planned ads in publications would be targeted at mechanics in automobile upkeep stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
