The following section focuses on the of marketing for Marten Arts Gallery Inc where the business's clients, competitors and core proficiencies have actually evaluated in order to validate whether the decision to introduce Case Study Help under Marten Arts Gallery Inc brand name would be a possible option or not. We have actually to start with looked at the type of customers that Marten Arts Gallery Inc handle while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Marten Arts Gallery Inc name.
Both the groups utilize Marten Arts Gallery Inc high efficiency adhesives while the company is not just involved in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the customers of immediate adhesives for this analysis because the market for the latter has a lower potential for Marten Arts Gallery Inc compared to that of immediate adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been recognized earlier.If we take a look at a breakdown of Marten Arts Gallery Inc potential market or client groups, we can see that the business offers to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair and overhauling companies (MRO) and manufacturers dealing in products made of leather, plastic, metal and wood. This diversity in clients suggests that Marten Arts Gallery Inc can target has different choices in regards to segmenting the market for its brand-new item particularly as each of these groups would be needing the same kind of item with respective changes in product packaging, need or amount. Nevertheless, the client is not cost delicate or brand name conscious so introducing a low priced dispenser under Marten Arts Gallery Inc name is not a recommended alternative.
Marten Arts Gallery Inc is not just a maker of adhesives however delights in market leadership in the immediate adhesive industry. The business has its own experienced and competent sales force which adds worth to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.
Core competences are not restricted to adhesive manufacturing just as Marten Arts Gallery Inc likewise concentrates on making adhesive giving devices to facilitate the use of its products. This dual production strategy offers Marten Arts Gallery Inc an edge over competitors because none of the rivals of dispensing equipment makes instantaneous adhesives. Additionally, none of these competitors offers straight to the customer either and makes use of distributors for reaching out to customers. While we are looking at the strengths of Marten Arts Gallery Inc, it is important to highlight the business's weaknesses.
The business's sales personnel is competent in training distributors, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it should likewise be kept in mind that the suppliers are showing hesitation when it comes to offering equipment that needs servicing which increases the challenges of selling equipment under a particular brand name.
If we take a look at Marten Arts Gallery Inc product line in adhesive equipment especially, the company has actually products aimed at the high-end of the market. The possibility of sales cannibalization exists if Marten Arts Gallery Inc sells Case Study Help under the exact same portfolio. Given the fact that Case Study Help is priced lower than Marten Arts Gallery Inc high-end line of product, sales cannibalization would definitely be affecting Marten Arts Gallery Inc sales revenue if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Marten Arts Gallery Inc 27A Pencil Applicator which is priced at $275. There is another possible threat which could reduce Marten Arts Gallery Inc 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 great 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.
Additionally, if we look at the marketplace in general, the adhesives market does not show brand orientation or price awareness which offers us two additional factors for not releasing a low priced item under the business's brand name.
The competitive environment of Marten Arts Gallery Inc would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low knowledge about the item. While companies like Marten Arts Gallery Inc have handled to train distributors concerning adhesives, the final consumer is dependent on distributors. Approximately 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three gamers, it could be stated that the supplier delights in a greater bargaining power compared to the purchaser. The truth stays that the supplier does not have much impact over the purchaser at this point particularly as the buyer does not show brand name recognition or cost sensitivity. This suggests that the supplier has the higher power when it concerns the adhesive market while the purchaser and the manufacturer 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 immediate adhesive market shows that the market permits ease of entry. Nevertheless, if we look at Marten Arts Gallery Inc in particular, the company has dual abilities in regards to being a manufacturer of adhesive dispensers and instant adhesives. Prospective dangers in equipment dispensing industry are low which shows the possibility of creating brand awareness in not only instantaneous adhesives however also in dispensing adhesives as none of the industry gamers has handled to position itself in double capabilities.
Threat of Substitutes: The hazard of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Marten Arts Gallery Inc introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided different reasons for not launching Case Study Help under Marten Arts Gallery Inc name, we have actually a suggested marketing mix for Case Study Help offered below if Marten Arts Gallery Inc chooses to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra growth potential of 10.1% which may be a great adequate specific niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the truth 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 price 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 cost below $250 would not require approvals from the senior management in case a mechanic at a motor automobile upkeep shop requires to acquire the product on his own.
Marten Arts Gallery Inc would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Marten Arts Gallery Inc for launching Case Study Help.
Place: A distribution design where Marten Arts Gallery Inc directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Marten Arts Gallery Inc. Given that the sales group is already taken part in selling immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be expensive specifically as each sales call costs around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low marketing budget must have been assigned to Case Study Help however the fact 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 advertising plan costing $51816 is recommended for at first presenting the item in the market. The planned ads in publications would be targeted at mechanics in lorry maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).