The following section focuses on the of marketing for London Water B where the business's customers, competitors and core competencies have actually assessed in order to justify whether the choice to introduce Case Study Help under London Water B brand name would be a feasible choice or not. We have first of all looked at the type of customers that London Water B handle while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under London Water B name.
London Water B consumers can be segmented into two groups, last customers and commercial consumers. Both the groups use London Water B high performance adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these consumer groups. There are 2 types of products that are being offered to these prospective markets; instant adhesives and anaerobic adhesives. We would be concentrating on the customers of instant adhesives for this analysis because the marketplace for the latter has a lower potential for London Water B 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 identified earlier.If we look at a breakdown of London Water B potential market or customer groups, we can see that the company offers to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair and overhauling business (MRO) and producers dealing in products made from leather, plastic, wood and metal. This variety in customers recommends that London Water B can target has numerous alternatives in regards to segmenting the market for its new item especially as each of these groups would be needing the very same kind of item with respective modifications in quantity, packaging or need. However, the customer is not rate sensitive or brand conscious so introducing a low priced dispenser under London Water B name is not an advised choice.
London Water B is not just a manufacturer of adhesives however takes pleasure in market leadership in the immediate adhesive industry. The business has its own competent and qualified sales force which adds value to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.
Core skills are not limited to adhesive production just as London Water B also specializes in making adhesive giving equipment to help with using its items. This dual production strategy gives London Water B an edge over rivals given that none of the rivals of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors sells directly to the consumer either and uses distributors for connecting to consumers. While we are looking at the strengths of London Water B, it is essential to highlight the business's weak points.
Although the business's sales personnel is proficient in training suppliers, the truth stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It should also be kept in mind that the distributors are showing unwillingness when it comes to selling devices that needs servicing which increases the difficulties of offering equipment under a particular brand name.
The company has actually products intended at the high end of the market if we look at London Water B item line in adhesive devices particularly. The possibility of sales cannibalization exists if London Water B offers Case Study Help under the exact same portfolio. Offered the fact that Case Study Help is priced lower than London Water B high-end line of product, sales cannibalization would absolutely be impacting London Water B sales earnings if the adhesive equipment is sold under the business's trademark name.
We can see sales cannibalization affecting London Water B 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease London Water B profits if Case Study Help is released under the company's brand name. The fact 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 reality 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 market in general, the adhesives market does not show brand name orientation or rate consciousness which provides us 2 extra factors for not releasing a low priced product under the company's trademark name.
The competitive environment of London Water B would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low knowledge about the product. While business like London Water B have handled to train distributors regarding adhesives, the final consumer depends on distributors. Around 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: Given the truth that the adhesive market is dominated by 3 gamers, it could be stated that the supplier enjoys a higher bargaining power compared to the buyer. Nevertheless, the reality stays that the supplier does not have much impact over the purchaser at this moment especially as the buyer does not show brand name recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market suggests that the market allows ease of entry. If we look at London Water B in specific, the company has dual abilities in terms of being a maker of immediate adhesives and adhesive dispensers. Potential threats in devices giving market are low which reveals the possibility of producing brand awareness in not only instant adhesives but likewise in dispensing adhesives as none of the industry gamers has managed to position itself in dual capabilities.
Risk of Substitutes: The risk of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if London Water B introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered different reasons for not releasing Case Study Help under London Water B name, we have a suggested marketing mix for Case Study Help provided listed below if London Water B decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra growth potential of 10.1% which might be a good adequate niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being offered for use 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 by means of direct selling. This rate would not consist of the expense of the 'vari suggestion' or the 'glumetic pointer'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop needs to acquire the item on his own. This would increase the possibility of influencing mechanics to purchase the product for usage in their everyday maintenance jobs.
London Water B would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for London Water B for releasing Case Study Help.
Place: A distribution model where London Water B directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by London Water B. Given that the sales group is currently participated in selling instant adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be costly particularly as each sales call expenses around $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget plan must have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing strategy costing $51816 is advised for at first presenting the item in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).