The following area concentrates on the of marketing for Man Group Plc where the business's clients, rivals and core proficiencies have examined in order to justify whether the decision to release Case Study Help under Man Group Plc brand would be a possible alternative or not. We have actually to start with looked at the type of customers that Man Group Plc deals in while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Man Group Plc name.
Man Group Plc customers can be segmented into 2 groups, last customers and commercial consumers. Both the groups use Man Group Plc high performance adhesives while the business is not only associated with the production of these adhesives but also markets them to these client groups. There are two types of products that are being offered to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Man Group Plc compared to that of immediate adhesives.
The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Man Group Plc possible market or customer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair and overhauling companies (MRO) and manufacturers handling products made from leather, metal, wood and plastic. This variety in consumers suggests that Man Group Plc can target has various alternatives in regards to segmenting the market for its new product specifically as each of these groups would be requiring the same kind of product with respective modifications in demand, packaging or amount. However, the client is not rate sensitive or brand conscious so launching a low priced dispenser under Man Group Plc name is not a suggested option.
Man Group Plc is not just a manufacturer of adhesives however delights in market management in the immediate adhesive industry. The business has its own proficient and qualified sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core competences are not restricted to adhesive manufacturing just as Man Group Plc also specializes in making adhesive giving devices to help with making use of its products. This dual production technique offers Man Group Plc an edge over rivals considering that none of the rivals of dispensing devices makes instantaneous adhesives. Additionally, none of these competitors sells directly to the consumer either and makes use of distributors for connecting to customers. While we are looking at the strengths of Man Group Plc, it is important to highlight the company's weaknesses.
Although the company's sales staff is knowledgeable in training suppliers, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it should also be kept in mind that the distributors are revealing reluctance when it comes to selling devices that needs servicing which increases the challenges of selling devices under a specific trademark name.
If we take a look at Man Group Plc line of product in adhesive devices especially, the company has actually products targeted at the high end of the marketplace. If Man Group Plc sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Man Group Plc high-end line of product, sales cannibalization would certainly be affecting Man Group Plc sales earnings if the adhesive devices is sold under the business's brand name.
We can see sales cannibalization impacting Man Group Plc 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which might lower Man Group Plc income. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great 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.
Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or cost awareness which gives us two extra reasons for not releasing a low priced product under the business's brand.
The competitive environment of Man Group Plc 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 buyer in this market is low specifically as the buyer has low knowledge about the product. While business like Man Group Plc have handled to train distributors regarding adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made straight by makers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 players, it could be said that the provider delights in a higher bargaining power compared to the purchaser. The reality stays that the supplier does not have much influence over the purchaser at this point particularly as the buyer does not show brand recognition or rate level of sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a major control over the real sales, this indicates that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the market permits ease of entry. If we look at Man Group Plc in particular, the company has double capabilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Potential hazards in devices dispensing market are low which shows the possibility of developing brand name awareness in not just immediate adhesives but also in giving adhesives as none of the market players has managed to position itself in double abilities.
Hazard of Substitutes: The hazard of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The fact stays that if Man Group Plc presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given various factors for not launching Case Study Help under Man Group Plc name, we have actually a recommended marketing mix for Case Study Help provided listed below if Man Group Plc decides to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra development potential of 10.1% which might be an excellent adequate specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the truth that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. This cost would not consist of the expense of the 'vari idea' or the 'glumetic idea'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to acquire the item on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their daily upkeep jobs.
Man Group Plc would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Man Group Plc for releasing Case Study Help.
Place: A distribution model where Man Group Plc directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Man Group Plc. Considering that the sales group is already engaged in offering instantaneous adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be expensive particularly as each sales call costs approximately $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: Although a low marketing budget must have been designated to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended marketing plan costing $51816 is advised for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in lorry upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).