Mcarthur Glen Realty Corp Case Study Help Checklist

Mcarthur Glen Realty Corp Case Study Help Checklist

Mcarthur Glen Realty Corp Case Study Solution
Mcarthur Glen Realty Corp Case Study Help
Mcarthur Glen Realty Corp Case Study Analysis

Analyses for Evaluating Mcarthur Glen Realty Corp decision to launch Case Study Solution

The following section focuses on the of marketing for Mcarthur Glen Realty Corp where the business's customers, rivals and core competencies have examined in order to validate whether the choice to launch Case Study Help under Mcarthur Glen Realty Corp brand would be a possible option or not. We have firstly taken a look at the type of consumers that Mcarthur Glen Realty Corp deals in while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Mcarthur Glen Realty Corp name.
Mcarthur Glen Realty Corp Case Study Solution

Customer Analysis

Mcarthur Glen Realty Corp customers can be segmented into two groups, final consumers and commercial clients. Both the groups use Mcarthur Glen Realty Corp high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these consumer groups. There are two types of products that are being offered to these potential markets; instant adhesives and anaerobic adhesives. We would be concentrating on the consumers of instant adhesives for this analysis because the marketplace for the latter has a lower potential for Mcarthur Glen Realty Corp compared to that of instantaneous adhesives.

The total market for immediate adhesives is around 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 Mcarthur Glen Realty Corp potential market or consumer groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and producers handling products made of leather, metal, plastic and wood. This diversity in clients suggests that Mcarthur Glen Realty Corp can target has various options in terms of segmenting the marketplace for its new item particularly as each of these groups would be needing the very same type of product with particular changes in amount, need or packaging. However, the customer is not price sensitive or brand mindful so releasing a low priced dispenser under Mcarthur Glen Realty Corp name is not an advised alternative.

Company Analysis

Mcarthur Glen Realty Corp is not simply a maker of adhesives but takes pleasure in market management in the immediate adhesive industry. The business has its own proficient and certified sales force which adds worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.

Core competences are not restricted to adhesive production just as Mcarthur Glen Realty Corp likewise concentrates on making adhesive giving equipment to assist in using its items. This double production technique provides Mcarthur Glen Realty Corp an edge over competitors given that none of the competitors of giving devices makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the customer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Mcarthur Glen Realty Corp, it is crucial to highlight the business's weak points.

The business's sales staff is proficient in training suppliers, the reality stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. Nevertheless, it should likewise be kept in mind that the distributors are revealing reluctance when it comes to selling equipment that requires maintenance which increases the challenges of offering equipment under a specific brand.

The business has products aimed at the high end of the market if we look at Mcarthur Glen Realty Corp product line in adhesive devices particularly. The possibility of sales cannibalization exists if Mcarthur Glen Realty Corp sells Case Study Help under the same portfolio. Offered the fact that Case Study Help is priced lower than Mcarthur Glen Realty Corp high-end line of product, sales cannibalization would certainly be affecting Mcarthur Glen Realty Corp sales profits if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization impacting Mcarthur Glen Realty Corp 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible risk which might reduce Mcarthur Glen Realty Corp earnings. The truth that $175000 has actually been spent 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 instantaneous adhesive.

In addition, if we take a look at the market in general, the adhesives market does disappoint brand orientation or rate consciousness which provides us two additional reasons for not introducing a low priced product under the business's brand.

Competitor Analysis

The competitive environment of Mcarthur Glen Realty Corp would be studied through Porter's 5 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 development potential due to the existence of fragmented sectors with Mcarthur Glen Realty Corp delighting in management and a combined market share of 75% with two other market players, Eastman and Permabond. While industry rivalry in between these gamers could be called 'extreme' as the customer is not brand conscious and each of these players has prominence in regards to market share, the truth still stays that the industry is not filled and still has a number of market segments which can be targeted as possible specific niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instantaneous adhesives provides development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low understanding about the item. While business like Mcarthur Glen Realty Corp have managed to train suppliers relating to adhesives, the last customer depends on distributors. Approximately 72% of sales are made directly by makers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by 3 gamers, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. The fact remains that the provider does not have much influence over the buyer at this point specifically as the purchaser does not show brand recognition or rate level of sensitivity. This shows 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 commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace enables ease of entry. If we look at Mcarthur Glen Realty Corp in particular, the business has dual abilities in terms of being a producer of adhesive dispensers and immediate adhesives. Possible dangers in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not just immediate adhesives however also in dispensing adhesives as none of the market gamers has actually managed to place itself in dual abilities.

Danger of Substitutes: The hazard of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Mcarthur Glen Realty Corp introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).

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

Mcarthur Glen Realty Corp Case Study Help

Despite the fact that our 3C analysis has given numerous factors for not releasing Case Study Help under Mcarthur Glen Realty Corp name, we have a recommended marketing mix for Case Study Help given listed below if Mcarthur Glen Realty Corp decides to proceed with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional development potential of 10.1% which might be a good enough niche market sector for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the fact that the Diy market can also be targeted if a potable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance shop needs to purchase the product on his own.

Mcarthur Glen Realty Corp would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Mcarthur Glen Realty Corp for launching Case Study Help.

Place: A distribution model where Mcarthur Glen Realty Corp straight sends out the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Mcarthur Glen Realty Corp. Because the sales group is currently engaged in selling instant adhesives and they do not have proficiency in selling dispensers, including them in the selling process would be pricey specifically as each sales call expenses roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: Although a low marketing spending plan needs to have been assigned to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is suggested for at first presenting the item in the market. The planned ads in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Mcarthur Glen Realty Corp Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been gone over for Case Study Help, the reality still stays that the item would not match Mcarthur Glen Realty Corp line of product. We have a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be around $49377 if 250 units of each design are produced annually as per the strategy. However, the initial planned advertising is approximately $52000 per year which would be putting a stress on the company's resources leaving Mcarthur Glen Realty Corp with an unfavorable net income if the costs are designated to Case Study Help only.

The fact that Mcarthur Glen Realty Corp has actually currently sustained a preliminary financial investment of $48000 in the form of capital expense and prototype development suggests that the income from Case Study Help is not enough to carry out the danger of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a preferable option specifically of it is affecting the sale of the company's income generating models.