The following area concentrates on the of marketing for Longtop Financial Technologies C 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 C brand name would be a practical choice or not. We have actually firstly taken a look at the kind of consumers that Longtop Financial Technologies C handle while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Longtop Financial Technologies C name.
Both the groups utilize Longtop Financial Technologies C high performance adhesives while the business is not just involved in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Longtop Financial Technologies C compared to that of instant adhesives.
The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have been identified earlier.If we take a look at a breakdown of Longtop Financial Technologies C potential market or customer groups, we can see that the company sells to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair and overhauling business (MRO) and makers handling items made of leather, wood, plastic and metal. This variety in customers recommends that Longtop Financial Technologies C can target has numerous choices in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be requiring the same type of item with respective changes in demand, quantity or product packaging. The client is not price sensitive or brand name mindful so launching a low priced dispenser under Longtop Financial Technologies C name is not an advised option.
Longtop Financial Technologies C is not simply a maker of adhesives but delights in market management in the immediate adhesive market. The company has its own skilled and qualified sales force which includes worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Longtop Financial Technologies C believes in special circulation as shown by the truth that it has picked to sell through 250 suppliers 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 restricted to North America only as it likewise enjoys worldwide 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 method.
Core proficiencies are not limited to adhesive manufacturing only as Longtop Financial Technologies C likewise focuses on making adhesive giving equipment to facilitate making use of its products. This double production technique offers Longtop Financial Technologies C an edge over rivals given that none of the rivals of dispensing devices makes immediate adhesives. Additionally, none of these competitors 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 crucial to highlight the business's weaknesses.
The company's sales personnel is knowledgeable in training suppliers, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it needs to also be noted that the distributors are revealing reluctance when it concerns selling equipment that needs maintenance which increases the obstacles of selling devices under a particular brand.
The business has actually products intended at the high end of the market if we look at Longtop Financial Technologies C product line in adhesive equipment especially. The possibility of sales cannibalization exists if Longtop Financial Technologies C sells Case Study Help under the exact same portfolio. Provided the truth that Case Study Help is priced lower than Longtop Financial Technologies C high-end line of product, sales cannibalization would definitely be impacting Longtop Financial Technologies C sales income if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization impacting Longtop Financial Technologies C 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible danger which might decrease Longtop Financial Technologies C earnings. The fact that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for launching 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 price 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 C would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the buyer has low knowledge about the item. While business like Longtop Financial Technologies C have handled to train distributors regarding adhesives, the last customer is dependent on distributors. Roughly 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 players, it could be stated that the provider delights in a greater bargaining power compared to the buyer. The fact remains that the provider does not have much influence over the buyer at this point especially as the buyer does not show brand name acknowledgment or rate level of sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the actual sales.
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 indicates that the marketplace allows ease of entry. However, if we take a look at Longtop Financial Technologies C in particular, the business has dual abilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Possible risks in devices giving market are low which shows the possibility of developing brand awareness in not only immediate adhesives however likewise in dispensing adhesives as none of the industry gamers has managed to place itself in dual capabilities.
Danger of Substitutes: The threat of substitutes in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality remains that if Longtop Financial Technologies C presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous reasons for not releasing Case Study Help under Longtop Financial Technologies C name, we have a recommended marketing mix for Case Study Help given listed below if Longtop Financial Technologies C chooses 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 additional growth capacity of 10.1% which might be a good enough specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the fact that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. This price would not include the cost of the 'vari pointer' or the 'glumetic suggestion'. A price listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store requires to buy the product on his own. This would increase the possibility of influencing mechanics to acquire the product for usage in their day-to-day maintenance tasks.
Longtop Financial Technologies C would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Longtop Financial Technologies C for introducing Case Study Help.
Place: A distribution model where Longtop Financial Technologies C straight sends the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Longtop Financial Technologies C. Since the sales group is already participated in selling immediate adhesives and they do not have knowledge in offering dispensers, including them in the selling procedure would be pricey specifically as each sales call costs approximately $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: A low promotional budget should have been designated to Case Study Help however 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 recommended marketing strategy costing $51816 is suggested for at first introducing the item in the market. The planned ads in publications 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).