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Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Help Checklist

Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Help Checklist

Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Solution
Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Help
Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Analysis



Analyses for Evaluating Mary Kay Cosmetics Inc Sales Force Incentives B decision to launch Case Study Solution


The following section concentrates on the of marketing for Mary Kay Cosmetics Inc Sales Force Incentives B where the company's consumers, rivals and core proficiencies have actually evaluated in order to justify whether the choice to release Case Study Help under Mary Kay Cosmetics Inc Sales Force Incentives B brand would be a possible choice or not. We have firstly looked at the type of clients that Mary Kay Cosmetics Inc Sales Force Incentives B deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Mary Kay Cosmetics Inc Sales Force Incentives B name.
Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Solution

Customer Analysis

Mary Kay Cosmetics Inc Sales Force Incentives B customers can be segmented into 2 groups, last customers and industrial customers. Both the groups use Mary Kay Cosmetics Inc Sales Force Incentives B high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these consumer groups. There are 2 types of products that are being sold to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of instant adhesives for this analysis since the market for the latter has a lower potential for Mary Kay Cosmetics Inc Sales Force Incentives B compared to that of instant adhesives.

The total market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been identified earlier.If we take a look at a breakdown of Mary Kay Cosmetics Inc Sales Force Incentives B prospective market or customer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and makers handling items made from leather, plastic, wood and metal. This diversity in consumers suggests that Mary Kay Cosmetics Inc Sales Force Incentives B can target has numerous options in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be requiring the exact same kind of item with particular changes in quantity, need or product packaging. However, the client is not rate delicate or brand conscious so releasing a low priced dispenser under Mary Kay Cosmetics Inc Sales Force Incentives B name is not an advised alternative.

Company Analysis

Mary Kay Cosmetics Inc Sales Force Incentives B is not just a manufacturer of adhesives but delights in market management in the instantaneous adhesive industry. The company has its own competent and certified sales force which includes worth to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Mary Kay Cosmetics Inc Sales Force Incentives B believes in unique distribution as indicated by the fact that it has picked to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be checked out for broadening reach by means of suppliers. The company's reach is not limited to North America only as it likewise enjoys international sales. With 1400 outlets spread out all throughout The United States and Canada, Mary Kay Cosmetics Inc Sales Force Incentives B has its internal production plants instead of using out-sourcing as the preferred technique.

Core competences are not restricted to adhesive production only as Mary Kay Cosmetics Inc Sales Force Incentives B likewise concentrates on making adhesive giving devices to help with the use of its products. This dual production technique gives Mary Kay Cosmetics Inc Sales Force Incentives B an edge over competitors given that none of the competitors of dispensing equipment makes instant adhesives. Furthermore, none of these rivals offers directly to the consumer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Mary Kay Cosmetics Inc Sales Force Incentives B, it is essential to highlight the company's weak points.

The business's sales staff is experienced in training distributors, the reality remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it should also be kept in mind that the suppliers are showing reluctance when it comes to offering equipment that requires servicing which increases the difficulties of selling devices under a specific brand name.

The business has actually products intended at the high end of the market if we look at Mary Kay Cosmetics Inc Sales Force Incentives B item line in adhesive devices particularly. If Mary Kay Cosmetics Inc Sales Force Incentives B sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Mary Kay Cosmetics Inc Sales Force Incentives B high-end product line, sales cannibalization would absolutely be affecting Mary Kay Cosmetics Inc Sales Force Incentives B sales revenue if the adhesive equipment is offered under the business's brand name.

We can see sales cannibalization affecting Mary Kay Cosmetics Inc Sales Force Incentives B 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible hazard which might lower Mary Kay Cosmetics Inc Sales Force Incentives B profits. The fact that $175000 has 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 instantaneous adhesive.

Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand orientation or price consciousness which offers us two extra factors for not introducing a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Mary Kay Cosmetics Inc Sales Force Incentives B would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development potential due to the existence of fragmented sections with Mary Kay Cosmetics Inc Sales Force Incentives B enjoying management and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While market competition between these players could be called 'intense' as the consumer is not brand name conscious and each of these gamers has prominence in terms of market share, the fact still remains that the market is not filled and still has several market segments which can be targeted as possible niche markets even when launching an adhesive. We can even point out the reality that sales cannibalization may be leading to market rivalry in the adhesive dispenser market while the market for instantaneous adhesives uses growth potential.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the item. While companies like Mary Kay Cosmetics Inc Sales Force Incentives B have handled to train suppliers concerning adhesives, the last consumer is dependent on suppliers. Approximately 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: Provided the fact that the adhesive market is dominated by three gamers, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. However, the fact remains that the supplier does not have much influence over the purchaser at this moment particularly as the purchaser does not show brand recognition or rate level of sensitivity. This indicates that the supplier has the greater power when it pertains to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market indicates that the market enables ease of entry. If we look at Mary Kay Cosmetics Inc Sales Force Incentives B in specific, the business has dual abilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Potential risks in equipment giving market are low which shows the possibility of producing brand name awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the market players has actually managed to place itself in double abilities.

Hazard of Substitutes: The risk of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality remains that if Mary Kay Cosmetics Inc Sales Force Incentives B 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

Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Help


Despite the fact that our 3C analysis has given different factors for not releasing Case Study Help under Mary Kay Cosmetics Inc Sales Force Incentives B name, we have actually a recommended marketing mix for Case Study Help provided below if Mary Kay Cosmetics Inc Sales Force Incentives B decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of factors. This market has an extra development potential of 10.1% which may be a good sufficient specific niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.

Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. This rate would not consist of the expense of the 'vari idea' or the 'glumetic idea'. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to acquire the item on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their day-to-day upkeep tasks.

Mary Kay Cosmetics Inc Sales Force Incentives B would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Mary Kay Cosmetics Inc Sales Force Incentives B for introducing Case Study Help.

Place: A distribution design where Mary Kay Cosmetics Inc Sales Force Incentives B directly sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Mary Kay Cosmetics Inc Sales Force Incentives B. Considering that the sales team is already taken part in selling immediate adhesives and they do not have knowledge in selling dispensers, including them in the selling procedure would be expensive especially as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable choice.

Promotion: Although a low advertising budget plan must have been assigned to Case Study Help but the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is advised for initially presenting the item in the market. The prepared ads in publications would be targeted at mechanics in automobile upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Analysis

Although a recommended strategy in the form of a marketing mix has been gone over for Case Study Help, the truth still remains that the product would not complement Mary Kay Cosmetics Inc Sales Force Incentives B line of product. We take a look at appendix 2, we can see how the overall gross success for the two models is expected to be approximately $49377 if 250 systems of each model are manufactured annually according to the plan. The initial planned advertising is roughly $52000 per year which would be putting a stress on the company's resources leaving Mary Kay Cosmetics Inc Sales Force Incentives B with an unfavorable net earnings if the expenditures are assigned to Case Study Help only.

The fact that Mary Kay Cosmetics Inc Sales Force Incentives B has already incurred an initial investment of $48000 in the form of capital expense and model development shows that the earnings from Case Study Help is inadequate to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a more effective option specifically of it is impacting the sale of the business's profits producing models.



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