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Lomita Hospital Case Study Solution
Lomita Hospital Case Study Help
Lomita Hospital Case Study Analysis
The following area focuses on the of marketing for Lomita Hospital where the company's customers, rivals and core competencies have evaluated in order to justify whether the choice to introduce Case Study Help under Lomita Hospital brand name would be a practical choice or not. We have actually firstly taken a look at the kind of clients that Lomita Hospital handle while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Lomita Hospital name.
Both the groups use Lomita Hospital high efficiency adhesives while the company is not only included in the production of these adhesives but likewise markets them to these customer groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Lomita Hospital compared to that of immediate adhesives.
The overall market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Lomita Hospital potential market or client groups, we can see that the business sells to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair and revamping business (MRO) and manufacturers dealing in items made of leather, wood, plastic and metal. This variety in clients suggests that Lomita Hospital can target has various alternatives in terms of segmenting the marketplace for its new item specifically as each of these groups would be requiring the same type of product with particular changes in need, amount or packaging. Nevertheless, the customer is not price delicate or brand conscious so introducing a low priced dispenser under Lomita Hospital name is not a recommended alternative.
Lomita Hospital is not just a manufacturer of adhesives but enjoys market leadership in the immediate adhesive industry. The business has its own experienced and certified sales force which includes value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Lomita Hospital likewise specializes in making adhesive dispensing equipment to help with the use of its items. This double production method offers Lomita Hospital an edge over rivals because none of the rivals of dispensing equipment makes immediate adhesives. In addition, none of these competitors offers directly to the customer either and uses suppliers for connecting to customers. While we are looking at the strengths of Lomita Hospital, it is important to highlight the company's weaknesses.
Although the company's sales staff is proficient in training suppliers, the reality remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it needs to also be noted that the distributors are revealing hesitation when it concerns offering equipment that needs servicing which increases the difficulties of offering devices under a particular brand name.
The company has products intended at the high end of the market if we look at Lomita Hospital item line in adhesive devices especially. The possibility of sales cannibalization exists if Lomita Hospital offers Case Study Help under the same portfolio. Offered the reality that Case Study Help is priced lower than Lomita Hospital high-end product line, sales cannibalization would certainly be impacting Lomita Hospital sales profits if the adhesive equipment is offered under the business's brand name.
We can see sales cannibalization impacting Lomita Hospital 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible danger which might lower Lomita Hospital earnings. The reality that $175000 has actually been invested in promoting SuperBonder recommends 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 instant adhesive.
In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or price awareness which gives us two extra factors for not introducing a low priced product under the company's brand name.
The competitive environment of Lomita Hospital would be studied by means of Porter's five 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 especially as the buyer has low understanding about the product. While business like Lomita Hospital have actually managed to train suppliers concerning adhesives, the last customer is dependent on suppliers. Around 72% of sales are made directly by makers 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 dominated by 3 players, it could be said that the supplier enjoys a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much impact over the buyer at this point particularly as the purchaser does not show brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a major control over the actual sales, this suggests that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market indicates that the market allows ease of entry. However, if we take a look at Lomita Hospital in particular, the business has dual capabilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible threats in equipment dispensing industry are low which reveals the possibility of developing brand name awareness in not just instant adhesives however likewise in dispensing adhesives as none of the industry gamers has handled to place itself in double abilities.
Hazard of Substitutes: The danger of replacements in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Lomita Hospital introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given various factors for not introducing Case Study Help under Lomita Hospital name, we have a suggested marketing mix for Case Study Help provided below if Lomita Hospital decides to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional development capacity of 10.1% which might be a great enough niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the fact that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder.
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 via direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep shop requires to acquire the product on his own.
Lomita Hospital would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Lomita Hospital for launching Case Study Help.
Place: A distribution design where Lomita Hospital straight sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Lomita Hospital. Given that the sales team is already participated in selling instant adhesives and they do not have proficiency in selling dispensers, including them in the selling process would be costly particularly as each sales call costs around $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: Although a low marketing budget should have been appointed to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing strategy costing $51816 is suggested for initially introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in automobile maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
