The following section concentrates on the of marketing for Longtop Financial Technologies B where the business's customers, competitors and core proficiencies have assessed in order to justify whether the decision to launch Case Study Help under Longtop Financial Technologies B brand would be a possible option or not. We have first of all taken a look at the kind of clients that Longtop Financial Technologies B handle while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Longtop Financial Technologies B name.
Longtop Financial Technologies B consumers can be segmented into two groups, final customers and industrial customers. Both the groups utilize Longtop Financial Technologies B high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these client groups. There are two types of items that are being sold to these potential markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis since the marketplace for the latter has a lower capacity for Longtop Financial Technologies B compared to that of instantaneous adhesives.
The overall market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been recognized earlier.If we look at a breakdown of Longtop Financial Technologies B possible market or client groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair and revamping companies (MRO) and producers dealing in items made of leather, plastic, metal and wood. This variety in customers recommends that Longtop Financial Technologies B can target has numerous options in terms of segmenting the market for its new item particularly as each of these groups would be requiring the very same type of item with respective changes in packaging, need or amount. However, the customer is not cost sensitive or brand name conscious so introducing a low priced dispenser under Longtop Financial Technologies B name is not an advised alternative.
Longtop Financial Technologies B is not simply a maker of adhesives however takes pleasure in market management in the immediate adhesive industry. The business has its own knowledgeable and certified sales force which adds value to sales by training the business's network of 250 suppliers for helping with the sale of adhesives. Longtop Financial Technologies B believes in special distribution as indicated by the reality that it has actually picked to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach by means of distributors. The company's reach is not restricted to North America just as it likewise enjoys worldwide sales. With 1400 outlets spread out all across The United States and Canada, Longtop Financial Technologies B has its internal production plants instead of using out-sourcing as the preferred technique.
Core proficiencies are not restricted to adhesive production just as Longtop Financial Technologies B likewise specializes in making adhesive giving equipment to facilitate making use of its items. This double production method offers Longtop Financial Technologies B an edge over rivals because none of the rivals of dispensing equipment makes instantaneous adhesives. In addition, none of these rivals offers directly to the customer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Longtop Financial Technologies B, it is important to highlight the business's weak points also.
The business's sales staff is experienced in training suppliers, the fact remains that the sales team is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It should also be kept in mind that the suppliers are revealing reluctance when it comes to offering equipment that needs servicing which increases the obstacles of selling equipment under a particular brand name.
If we look at Longtop Financial Technologies B line of product in adhesive equipment especially, the company has items targeted at the high-end of the market. If Longtop Financial Technologies B offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Longtop Financial Technologies B high-end product line, sales cannibalization would certainly be impacting Longtop Financial Technologies B sales income if the adhesive equipment is sold under the business's brand name.
We can see sales cannibalization impacting Longtop Financial Technologies B 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible threat which could decrease Longtop Financial Technologies B revenue. The fact that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or cost consciousness which offers us two extra reasons for not introducing a low priced product under the company's brand name.
The competitive environment of Longtop Financial Technologies B would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low knowledge about the product. While companies like Longtop Financial Technologies B have actually handled to train distributors relating to adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by 3 gamers, it could be said that the supplier delights in a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much impact over the purchaser at this point especially as the purchaser does not show brand name acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a major 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 loyalty and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market shows that the marketplace allows ease of entry. Nevertheless, if we look at Longtop Financial Technologies B in particular, the company has dual capabilities in regards to being a manufacturer of instant adhesives and adhesive dispensers. Possible threats in equipment giving industry are low which shows the possibility of creating brand name awareness in not only immediate adhesives however likewise in giving adhesives as none of the market gamers has actually managed to position itself in double abilities.
Hazard of Substitutes: The threat of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Longtop Financial Technologies B 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 given numerous reasons for not releasing Case Study Help under Longtop Financial Technologies B name, we have a recommended marketing mix for Case Study Help offered below if Longtop Financial Technologies B decides to go on with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a number of factors. There are presently 89257 facilities in this segment and a high use of around 58900 pounds. is being used by 36.1 % of the market. This market has an additional development capacity of 10.1% which might be a good enough niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the consumer can choose whether he wishes to select either of the two devices or not.
Price: The suggested 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. This rate would not include the expense of the 'vari tip' or the 'glumetic tip'. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to buy the item on his own. This would increase the possibility of affecting mechanics to acquire the item for use in their daily upkeep tasks.
Longtop Financial Technologies B would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Longtop Financial Technologies B for launching Case Study Help.
Place: A circulation model where Longtop Financial Technologies B straight sends the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Longtop Financial Technologies B. Since the sales group is already engaged in offering instantaneous adhesives and they do not have competence in selling dispensers, including them in the selling process would be expensive especially as each sales call expenses roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low promotional budget plan needs to have been assigned 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 plan costing $51816 is suggested for at first introducing the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).