WhatsApp 
Longtop Financial Technologies C Case Study Solution
Longtop Financial Technologies C Case Study Help
Longtop Financial Technologies C Case Study Analysis
The following area concentrates on the of marketing for Longtop Financial Technologies C where the company's customers, rivals and core competencies have actually assessed in order to validate whether the decision to launch Case Study Help under Longtop Financial Technologies C brand name would be a feasible alternative or not. We have to start with looked at the type of clients that Longtop Financial Technologies C deals in while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Longtop Financial Technologies C name.
Longtop Financial Technologies C clients can be segmented into two groups, industrial consumers and last consumers. Both the groups utilize Longtop Financial Technologies C high performance adhesives while the company is not just associated with the production of these adhesives however likewise markets them to these client groups. There are 2 kinds of items that are being offered to these potential markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the customers of immediate adhesives for this analysis because the market for the latter has a lower potential for Longtop Financial Technologies C compared to that of immediate adhesives.
The total market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have actually been identified earlier.If we take a look at a breakdown of Longtop Financial Technologies C prospective market or client groups, we can see that the business offers to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and producers dealing in items made of leather, plastic, metal and wood. This diversity in consumers suggests that Longtop Financial Technologies C can target has various alternatives in terms of segmenting the market for its new product particularly as each of these groups would be requiring the very same type of product with respective modifications in product packaging, demand or amount. Nevertheless, the client is not rate delicate or brand mindful so introducing a low priced dispenser under Longtop Financial Technologies C name is not an advised option.
Longtop Financial Technologies C is not simply a producer of adhesives but enjoys market management in the instantaneous adhesive market. The business has its own skilled and competent sales force which adds worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Longtop Financial Technologies C believes in exclusive circulation as suggested by the truth that it has picked to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for broadening reach via suppliers. The business's reach is not limited to North America just as it likewise delights in global sales. With 1400 outlets spread out all across The United States and Canada, Longtop Financial Technologies C has its internal production plants rather than using out-sourcing as the preferred technique.
Core skills are not limited to adhesive production just as Longtop Financial Technologies C likewise specializes in making adhesive giving devices to facilitate making use of its items. This dual production method provides Longtop Financial Technologies C an edge over rivals since none of the competitors of giving equipment makes immediate adhesives. Furthermore, none of these rivals sells straight to the customer either and uses distributors for connecting to customers. While we are looking at the strengths of Longtop Financial Technologies C, it is necessary to highlight the business's weaknesses as well.
Although the business's sales personnel is competent in training suppliers, the truth stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it ought to likewise be noted that the suppliers are showing unwillingness when it concerns selling equipment that requires maintenance which increases the challenges of offering equipment under a specific brand.
If we look at Longtop Financial Technologies C line of product in adhesive equipment especially, the business has products focused on the high end of the marketplace. The possibility of sales cannibalization exists if Longtop Financial Technologies C sells Case Study Help under the same portfolio. Provided the reality that Case Study Help is priced lower than Longtop Financial Technologies C high-end line of product, sales cannibalization would certainly be affecting Longtop Financial Technologies C sales revenue if the adhesive devices is sold under the company's trademark name.
We can see sales cannibalization affecting Longtop Financial Technologies C 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible threat which might lower Longtop Financial Technologies C income. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which gives us two additional factors for not releasing a low priced product under the business's brand name.
The competitive environment of Longtop Financial Technologies C would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low knowledge about the product. While companies like Longtop Financial Technologies C have actually handled to train distributors regarding adhesives, the final customer depends on distributors. Around 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by three gamers, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. Nevertheless, the reality remains that the provider does not have much influence over the buyer at this moment particularly as the purchaser does disappoint brand acknowledgment or rate sensitivity. This suggests that the supplier has the higher power when it concerns the adhesive market while the purchaser and the producer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instant adhesive market suggests that the market allows ease of entry. If we look at Longtop Financial Technologies C in particular, the company has dual capabilities in terms of being a producer of adhesive dispensers and immediate adhesives. Potential dangers in devices giving industry are low which reveals the possibility of developing brand name awareness in not only immediate adhesives however likewise in giving adhesives as none of the market gamers has managed to place itself in double capabilities.
Hazard of Substitutes: The threat of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Longtop Financial Technologies C introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided different reasons for not introducing Case Study Help under Longtop Financial Technologies C name, we have a recommended marketing mix for Case Study Help provided listed below if Longtop Financial Technologies C chooses to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development potential of 10.1% which might be a great enough niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the truth that the Diy market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.
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 cost below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance store needs to acquire the item on his own.
Longtop Financial Technologies C 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 C for launching Case Study Help.
Place: A circulation design where Longtop Financial Technologies C directly sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Longtop Financial Technologies C. Because the sales team is currently taken part in offering immediate adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses around $120. The distributors are already offering dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget plan needs to have been assigned 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 costs sustained for production, the suggested advertising plan costing $51816 is suggested for initially presenting the item in the market. The prepared ads in publications would be targeted at mechanics in automobile maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
