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Longtop Financial Technologies B Case Study Solution
Longtop Financial Technologies B Case Study Help
Longtop Financial Technologies B Case Study Analysis
The following area concentrates on the of marketing for Longtop Financial Technologies B where the company's consumers, rivals and core competencies have actually evaluated in order to justify whether the choice to introduce Case Study Help under Longtop Financial Technologies B brand would be a practical alternative or not. We have actually firstly looked at the type of consumers that Longtop Financial Technologies B handle while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Longtop Financial Technologies B name.
Longtop Financial Technologies B clients can be segmented into two groups, industrial clients and final consumers. Both the groups utilize Longtop Financial Technologies B high performance adhesives while the business is not just involved in the production of these adhesives however also markets them to these client groups. There are two kinds of items that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Longtop Financial Technologies B compared to that of instant adhesives.
The overall market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Longtop Financial Technologies B potential market or client groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair and revamping business (MRO) and manufacturers handling products made from leather, metal, plastic and wood. This variety in consumers recommends that Longtop Financial Technologies B can target has different alternatives in regards to segmenting the marketplace for its brand-new product especially as each of these groups would be needing the very same type of product with particular changes in packaging, quantity or demand. Nevertheless, the customer is not cost delicate or brand name conscious so releasing a low priced dispenser under Longtop Financial Technologies B name is not a suggested option.
Longtop Financial Technologies B is not just a producer of adhesives but enjoys market management in the immediate adhesive industry. The company has its own experienced and qualified sales force which includes worth to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Longtop Financial Technologies B believes in exclusive circulation as shown by the fact that it has selected to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach by means of suppliers. The business's reach is not restricted to North America only as it likewise delights in worldwide sales. With 1400 outlets spread all across North America, Longtop Financial Technologies B has its in-house production plants instead of using out-sourcing as the preferred method.
Core skills are not limited to adhesive manufacturing just as Longtop Financial Technologies B likewise specializes in making adhesive giving equipment to help with the use of its products. This double production technique provides Longtop Financial Technologies B an edge over competitors considering that none of the competitors of dispensing equipment makes instant adhesives. In addition, none of these rivals sells directly to the customer either and uses suppliers for reaching out to customers. While we are taking a look at the strengths of Longtop Financial Technologies B, it is essential to highlight the company's weak points as well.
The company's sales staff is competent in training suppliers, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It ought to also be noted that the suppliers are showing unwillingness when it comes to offering devices that needs maintenance which increases the difficulties of selling devices under a particular brand name.
If we look at Longtop Financial Technologies B product line in adhesive devices especially, the company has products targeted at the high-end of the marketplace. If Longtop Financial Technologies B offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Longtop Financial Technologies B high-end line of product, sales cannibalization would certainly be affecting Longtop Financial Technologies B sales revenue if the adhesive equipment is offered under the business's trademark name.
We can see sales cannibalization affecting 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 hazard which might decrease Longtop Financial Technologies B earnings. The truth that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or price awareness which gives us 2 additional reasons for not introducing a low priced item under the business's brand.
The competitive environment of Longtop Financial Technologies B 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 industry is low specifically as the buyer has low understanding about the item. While companies like Longtop Financial Technologies B have actually managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Around 72% of sales are made directly by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by 3 players, it could be stated that the provider enjoys a higher bargaining power compared to the buyer. The truth stays that the provider does not have much impact over the purchaser at this point particularly as the purchaser does not show brand recognition or rate level of sensitivity. This shows that the supplier has the higher power when it concerns the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the instant adhesive market shows that the marketplace enables ease of entry. If we look at Longtop Financial Technologies B in specific, the business has double abilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Prospective dangers in devices giving market are low which reveals the possibility of producing brand name awareness in not only instantaneous adhesives however likewise in dispensing adhesives as none of the industry gamers has managed to position itself in double abilities.
Threat of Substitutes: The threat of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The fact stays that if Longtop Financial Technologies B presented 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 provided various reasons for not introducing Case Study Help under Longtop Financial Technologies B name, we have actually a suggested marketing mix for Case Study Help given below if Longtop Financial Technologies B decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this segment and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra development potential of 10.1% which may be a good enough specific niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the customer can choose whether he wants to go with either of the two devices or not.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to acquire the item on his own.
Longtop Financial Technologies B would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Longtop Financial Technologies B for introducing Case Study Help.
Place: A circulation design where Longtop Financial Technologies B directly sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Longtop Financial Technologies B. Given that the sales group is currently participated in offering immediate adhesives and they do not have competence in selling dispensers, including them in the selling procedure would be pricey particularly as each sales call expenses roughly $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable option.
Promotion: A low marketing budget should have been designated to Case Study Help however the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested marketing strategy costing $51816 is advised for at first presenting the item in the market. The prepared ads in publications would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
