The following section focuses on the 3Cs of marketing for Longtop Financial Technologies A where the business's clients, rivals and core proficiencies have actually examined in order to justify whether the decision to launch Case Study Help under Longtop Financial Technologies A brand name would be a possible choice or not. We have first of all looked at the kind of consumers that Longtop Financial Technologies A handle while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Longtop Financial Technologies A name.
Both the groups use Longtop Financial Technologies A high efficiency adhesives while the company is not just included in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis since the market for the latter has a lower potential for Longtop Financial Technologies A compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Longtop Financial Technologies A possible market or consumer groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair work and revamping business (MRO) and producers handling items made of leather, metal, plastic and wood. This diversity in customers suggests that Longtop Financial Technologies A can target has different alternatives in terms of segmenting the market for its brand-new item specifically as each of these groups would be needing the exact same kind of item with particular changes in amount, product packaging or demand. Nevertheless, the consumer is not rate delicate or brand name conscious so introducing a low priced dispenser under Longtop Financial Technologies A name is not a recommended choice.
Longtop Financial Technologies A is not simply a manufacturer of adhesives however delights in market management in the immediate adhesive market. The company has its own competent 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. Longtop Financial Technologies A believes in exclusive distribution as shown by the truth that it has picked to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for broadening reach through suppliers. The company's reach is not limited to The United States and Canada just as it also takes pleasure in worldwide sales. With 1400 outlets spread out all across The United States and Canada, Longtop Financial Technologies A has its in-house production plants instead of utilizing out-sourcing as the favored technique.
Core competences are not limited to adhesive production just as Longtop Financial Technologies A likewise concentrates on making adhesive dispensing devices to help with using its items. This dual production technique gives Longtop Financial Technologies A an edge over rivals given that none of the rivals of giving equipment makes instant adhesives. Furthermore, none of these rivals sells straight to the consumer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Longtop Financial Technologies A, it is crucial to highlight the business's weaknesses.
The business's sales personnel is experienced in training distributors, the fact stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It should also be kept in mind that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the challenges of selling devices under a particular brand name.
The business has actually items intended at the high end of the market if we look at Longtop Financial Technologies A item line in adhesive equipment especially. The possibility of sales cannibalization exists if Longtop Financial Technologies A offers Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Longtop Financial Technologies A high-end line of product, sales cannibalization would absolutely be affecting Longtop Financial Technologies A sales income if the adhesive devices is sold under the company's brand.
We can see sales cannibalization impacting Longtop Financial Technologies A 27A Pencil Applicator which is priced at $275. There is another possible hazard which might reduce Longtop Financial Technologies A income if Case Study Help is launched under the company's brand. The reality that $175000 has been invested in promoting SuperBonder recommends that it is not a good 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 immediate adhesive.
Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost awareness which gives us two additional factors for not releasing a low priced product under the company's brand.
The competitive environment of Longtop Financial Technologies A would be studied through 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 market is low especially as the purchaser has low knowledge about the product. While business like Longtop Financial Technologies A have handled to train suppliers regarding adhesives, the last customer is dependent on suppliers. Roughly 72% of sales are made directly by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by three players, it could be stated that the supplier enjoys a greater bargaining power compared to the buyer. The reality stays that the supplier does not have much impact over the buyer at this point particularly as the buyer does not reveal brand name acknowledgment or rate sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a significant control over the actual sales, this shows that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we look at Longtop Financial Technologies A in particular, the company has dual capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Possible dangers in devices dispensing industry are low which reveals the possibility of creating brand name awareness in not just instantaneous adhesives however likewise in dispensing adhesives as none of the market gamers has handled to position itself in dual capabilities.
Danger of Substitutes: The hazard of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact stays that if Longtop Financial Technologies A presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered different reasons for not releasing Case Study Help under Longtop Financial Technologies A name, we have actually a recommended marketing mix for Case Study Help offered listed below if Longtop Financial Technologies A chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this segment and a high usage of approximately 58900 lbs. is being utilized by 36.1 % of the market. This market has an extra development capacity of 10.1% which might be a good enough specific niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the fact that the Diy market can likewise be targeted if a drinkable low priced adhesive is being cost use with SuperBonder. The product would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wishes to go with 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 offered through distributors or via direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance store needs to buy the item on his own.
Longtop Financial Technologies A would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net profitability for Longtop Financial Technologies A for introducing Case Study Help.
Place: A distribution design where Longtop Financial Technologies A directly sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Longtop Financial Technologies A. Since the sales group is already taken part in selling immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses roughly $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: Although a low marketing budget plan must have been appointed 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 expenses sustained for production, the suggested marketing plan costing $51816 is advised for at first presenting the item in the market. The prepared advertisements in publications would be targeted at mechanics in automobile maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
|Executive Summary||Porters Five Forces Analysis||Pestel Analysis||Financial Analysis|
|Generic Strategy||Vrine Analysis|