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Man Group Plc Case Study Solution
Man Group Plc Case Study Help
Man Group Plc Case Study Analysis
The following area focuses on the of marketing for Man Group Plc where the company's customers, competitors and core competencies have actually examined in order to validate whether the decision to launch Case Study Help under Man Group Plc brand name would be a possible option or not. We have first of all taken a look at the kind of consumers that Man Group Plc handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Man Group Plc name.
Man Group Plc consumers can be segmented into two groups, final consumers and commercial customers. Both the groups use Man Group Plc high performance adhesives while the business is not just associated with the production of these adhesives but also markets them to these customer groups. There are 2 types of items that are being sold to these potential markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of instant adhesives for this analysis considering that the marketplace for the latter has a lower potential for Man Group Plc compared to that of immediate adhesives.
The total market for immediate adhesives is around 890,000 in the United States in 1978 which covers both client groups which have been recognized earlier.If we look at a breakdown of Man Group Plc potential market or customer groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair and overhauling companies (MRO) and producers dealing in items made of leather, wood, metal and plastic. This diversity in customers recommends that Man Group Plc can target has numerous alternatives in terms of segmenting the marketplace for its new item specifically as each of these groups would be requiring the very same type of product with respective changes in amount, packaging or demand. The client is not price sensitive or brand mindful so launching a low priced dispenser under Man Group Plc name is not a recommended option.
Man Group Plc is not just a maker of adhesives however enjoys market management in the instantaneous adhesive market. The business has its own experienced and competent sales force which includes value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives. Man Group Plc believes in exclusive distribution as indicated by the truth that it has actually picked to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for broadening reach through distributors. The company's reach is not limited to North America only as it also takes pleasure in worldwide sales. With 1400 outlets spread all across North America, Man Group Plc has its in-house production plants instead of utilizing out-sourcing as the favored strategy.
Core skills are not restricted to adhesive manufacturing only as Man Group Plc also specializes in making adhesive giving equipment to help with making use of its products. This double production method offers Man Group Plc an edge over rivals because none of the rivals of dispensing equipment makes immediate adhesives. Furthermore, none of these rivals sells directly to the customer either and uses distributors for reaching out to customers. While we are looking at the strengths of Man Group Plc, it is important to highlight the business's weak points too.
The company's sales staff is knowledgeable in training suppliers, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it needs to also be kept in mind that the distributors are showing unwillingness when it concerns selling equipment that requires servicing which increases the difficulties of selling equipment under a particular brand name.
If we look at Man Group Plc product line in adhesive equipment especially, the business has items aimed at the luxury of the marketplace. If Man Group Plc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Man Group Plc high-end line of product, sales cannibalization would definitely be impacting Man Group Plc sales income if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Man Group Plc 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Man Group Plc income if Case Study Help is launched under the business's trademark name. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for releasing 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.
In addition, if we look at the market in general, the adhesives market does disappoint brand name orientation or rate consciousness which offers us two extra factors for not releasing a low priced product under the company's brand name.
The competitive environment of Man Group Plc would be studied through 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 market is low especially as the purchaser has low knowledge about the item. While business like Man Group Plc have actually handled to train distributors concerning adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made directly by manufacturers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is controlled by 3 gamers, it could be said that the provider enjoys a greater bargaining power compared to the purchaser. However, the truth remains that the supplier does not have much impact over the buyer at this moment especially as the purchaser does not show brand name recognition or cost sensitivity. This shows that the distributor has the greater power when it pertains to the adhesive market while the purchaser and the maker do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market indicates that the market permits ease of entry. However, if we look at Man Group Plc in particular, the company has double capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Potential risks in devices giving industry are low which reveals the possibility of developing brand awareness in not just instant adhesives however also in dispensing adhesives as none of the industry players has actually managed to position itself in dual abilities.
Hazard of Substitutes: The risk of replacements in the instantaneous adhesive industry 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 Man Group Plc introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered numerous reasons for not launching Case Study Help under Man Group Plc name, we have actually a recommended marketing mix for Case Study Help provided below if Man Group Plc chooses to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional growth capacity of 10.1% which might be an excellent sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Diy market can likewise be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to buy the product on his own.
Man Group Plc would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Man Group Plc for releasing Case Study Help.
Place: A distribution design where Man Group Plc straight sends the item to the local supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Man Group Plc. Because the sales group is currently taken part in offering immediate adhesives and they do not have expertise in selling dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses approximately $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low promotional budget ought to have been assigned to Case Study Help however the truth that the dispenser is an innovation and it requires 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 introducing the product in the market. The prepared ads in publications would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
