Mama Js Marmalade Case Study Help Checklist

Mama Js Marmalade Case Study Help Checklist

Mama Js Marmalade Case Study Solution
Mama Js Marmalade Case Study Help
Mama Js Marmalade Case Study Analysis

Analyses for Evaluating Mama Js Marmalade decision to launch Case Study Solution

The following section concentrates on the of marketing for Mama Js Marmalade where the company's customers, competitors and core proficiencies have evaluated in order to justify whether the choice to introduce Case Study Help under Mama Js Marmalade trademark name would be a practical choice or not. We have actually to start with taken a look at the kind of customers that Mama Js Marmalade handle while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Mama Js Marmalade name.
Mama Js Marmalade Case Study Solution

Customer Analysis

Both the groups use Mama Js Marmalade high efficiency adhesives while the company is not only included in the production of these adhesives but likewise markets them to these customer groups. We would be focusing on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Mama Js Marmalade compared to that of instantaneous adhesives.

The total market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Mama Js Marmalade possible market or client groups, we can see that the business offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair work and revamping business (MRO) and manufacturers handling products made of leather, metal, wood and plastic. This diversity in customers recommends that Mama Js Marmalade can target has different options in terms of segmenting the market for its brand-new item particularly as each of these groups would be needing the very same type of item with respective changes in packaging, demand or amount. However, the client is not price sensitive or brand conscious so releasing a low priced dispenser under Mama Js Marmalade name is not a suggested option.

Company Analysis

Mama Js Marmalade is not just a maker of adhesives however takes pleasure in market management in the instant adhesive market. The business has its own experienced and competent sales force which adds value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.

Core competences are not restricted to adhesive manufacturing just as Mama Js Marmalade also focuses on making adhesive giving equipment to assist in using its products. This dual production method provides Mama Js Marmalade an edge over competitors considering that none of the rivals of dispensing devices makes instant adhesives. Additionally, none of these rivals sells directly to the consumer either and makes use of suppliers for connecting to consumers. While we are looking at the strengths of Mama Js Marmalade, it is crucial to highlight the business's weaknesses.

The business's sales personnel is proficient in training suppliers, the truth stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it must likewise be kept in mind that the suppliers are revealing reluctance when it pertains to selling devices that needs servicing which increases the challenges of offering devices under a particular trademark name.

If we look at Mama Js Marmalade line of product in adhesive equipment especially, the company has actually products aimed at the high-end of the marketplace. If Mama Js Marmalade sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Mama Js Marmalade high-end line of product, sales cannibalization would certainly be affecting Mama Js Marmalade sales earnings if the adhesive devices is sold under the business's trademark name.

We can see sales cannibalization affecting Mama Js Marmalade 27A Pencil Applicator which is priced at $275. There is another possible hazard which could decrease Mama Js Marmalade income if Case Study Help is released under the business's brand. The truth 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 truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or cost awareness which gives us 2 extra factors for not launching a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Mama Js Marmalade would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the presence of fragmented sectors with Mama Js Marmalade delighting in leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry rivalry between these players could be called 'extreme' as the consumer is not brand mindful and each of these players has prominence in terms of market share, the reality still remains that the market is not saturated and still has numerous market sections which can be targeted as prospective specific niche markets even when releasing an adhesive. Nevertheless, we can even point out the fact that sales cannibalization may be causing market competition in the adhesive dispenser market while the marketplace for instantaneous adhesives provides growth capacity.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low knowledge about the item. While business like Mama Js Marmalade have actually handled to train distributors concerning adhesives, the final customer is dependent on distributors. Around 72% of sales are made straight 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 dominated by three players, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. However, the fact stays that the supplier does not have much impact over the buyer at this moment especially as the buyer does not show brand name acknowledgment or rate level of sensitivity. This suggests that the distributor has the higher power when it pertains to the adhesive market while the buyer and the manufacturer 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 instantaneous adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we look at Mama Js Marmalade in particular, the company has double abilities in regards to being a producer of instantaneous adhesives and adhesive dispensers. Prospective dangers in equipment dispensing industry are low which reveals the possibility of producing brand awareness in not only instant adhesives however likewise in dispensing adhesives as none of the market players has actually handled to place itself in dual abilities.

Risk of Substitutes: The danger of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact remains that if Mama Js Marmalade presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Mama Js Marmalade Case Study Help

Despite the fact that our 3C analysis has given different factors for not introducing Case Study Help under Mama Js Marmalade name, we have a recommended marketing mix for Case Study Help offered below if Mama Js Marmalade chooses to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional development capacity of 10.1% which may be a good enough niche market section for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the truth that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.

Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance shop needs to buy the item on his own.

Mama Js Marmalade would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net profitability for Mama Js Marmalade for launching Case Study Help.

Place: A circulation model where Mama Js Marmalade straight sends the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Mama Js Marmalade. Because the sales team is currently engaged in offering instant adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be expensive particularly as each sales call expenses around $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable option.

Promotion: A low promotional budget needs to have been assigned to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing plan costing $51816 is advised for initially presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle upkeep shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Mama Js Marmalade Case Study Analysis

A suggested plan of action in the kind of a marketing mix has been gone over for Case Study Help, the reality still remains that the item would not complement Mama Js Marmalade product line. We take a look at appendix 2, we can see how the overall gross success for the two designs is expected to be approximately $49377 if 250 units of each design are manufactured annually based on the plan. Nevertheless, the preliminary planned advertising is around $52000 annually which would be putting a strain on the company's resources leaving Mama Js Marmalade with a negative net income if the expenditures are allocated to Case Study Help only.

The fact that Mama Js Marmalade has actually currently incurred an initial investment of $48000 in the form of capital expense and model development suggests that the profits from Case Study Help is not enough to carry out the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable choice particularly of it is affecting the sale of the company's profits producing models.