The following area concentrates on the of marketing for Medfield Pharmaceuticals where the business's clients, rivals and core proficiencies have evaluated in order to justify whether the choice to introduce Case Study Help under Medfield Pharmaceuticals trademark name would be a feasible alternative or not. We have to start with taken a look at the kind of customers that Medfield Pharmaceuticals deals in while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Medfield Pharmaceuticals name.
Medfield Pharmaceuticals clients can be segmented into 2 groups, industrial customers and final consumers. Both the groups use Medfield Pharmaceuticals high performance adhesives while the company is not just associated with the production of these adhesives but also markets them to these consumer groups. There are two kinds of items that are being offered to these potential markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Medfield Pharmaceuticals compared to that of instant adhesives.
The overall market for instant adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Medfield Pharmaceuticals prospective market or client groups, we can see that the business sells to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and makers handling items made from leather, metal, plastic and wood. This variety in customers suggests that Medfield Pharmaceuticals can target has numerous choices in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be needing the same type of product with respective changes in packaging, amount or demand. The client is not price delicate or brand name conscious so launching a low priced dispenser under Medfield Pharmaceuticals name is not an advised choice.
Medfield Pharmaceuticals is not just a producer of adhesives but delights in market leadership in the immediate adhesive market. The company has its own competent and certified sales force which adds value to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Medfield Pharmaceuticals believes in exclusive distribution as shown by the truth that it has chosen 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 also delights in worldwide sales. With 1400 outlets spread all throughout The United States and Canada, Medfield Pharmaceuticals has its in-house production plants rather than using out-sourcing as the favored strategy.
Core skills are not restricted to adhesive manufacturing only as Medfield Pharmaceuticals likewise concentrates on making adhesive dispensing devices to assist in using its items. This double production strategy offers Medfield Pharmaceuticals an edge over competitors considering that none of the rivals of giving devices makes instantaneous adhesives. Furthermore, none of these rivals offers directly to the customer either and uses suppliers for connecting to customers. While we are looking at the strengths of Medfield Pharmaceuticals, it is important to highlight the company's weak points too.
Although the company's sales personnel is skilled in training suppliers, the fact stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it ought to also be kept in mind that the suppliers are revealing unwillingness when it pertains to offering devices that requires servicing which increases the difficulties of selling equipment under a specific trademark name.
If we take a look at Medfield Pharmaceuticals product line in adhesive devices particularly, the business has products focused on the high-end of the market. The possibility of sales cannibalization exists if Medfield Pharmaceuticals sells Case Study Help under the very same portfolio. Provided the reality that Case Study Help is priced lower than Medfield Pharmaceuticals high-end line of product, sales cannibalization would certainly be impacting Medfield Pharmaceuticals sales earnings if the adhesive equipment is offered under the company's brand.
We can see sales cannibalization affecting Medfield Pharmaceuticals 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible hazard which might reduce Medfield Pharmaceuticals earnings. The fact that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for launching 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 not show brand orientation or price consciousness which offers us two additional factors for not introducing a low priced item under the company's brand name.
The competitive environment of Medfield Pharmaceuticals 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 purchaser in this market is low especially as the purchaser has low knowledge about the product. While business like Medfield Pharmaceuticals have handled to train distributors regarding adhesives, the final customer depends on distributors. Roughly 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by 3 gamers, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. Nevertheless, the fact remains that the provider does not have much impact over the purchaser at this point especially as the purchaser does not show brand recognition or cost level of sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales, this shows that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market suggests that the market permits ease of entry. Nevertheless, if we take a look at Medfield Pharmaceuticals in particular, the company has double capabilities in terms of being a producer of adhesive dispensers and instant adhesives. Potential hazards in equipment giving industry are low which shows the possibility of producing brand awareness in not only immediate adhesives however also in giving adhesives as none of the market players has handled to position itself in dual capabilities.
Danger of Substitutes: The danger of substitutes in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Medfield Pharmaceuticals presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered different reasons for not introducing Case Study Help under Medfield Pharmaceuticals name, we have actually a suggested marketing mix for Case Study Help given listed below if Medfield Pharmaceuticals chooses to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of factors. This market has an extra growth capacity of 10.1% which may be a good enough niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance shop needs to buy the item on his own.
Medfield Pharmaceuticals would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Medfield Pharmaceuticals for releasing Case Study Help.
Place: A circulation design where Medfield Pharmaceuticals directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Medfield Pharmaceuticals. Because the sales group is already participated in selling instantaneous adhesives and they do not have knowledge in selling dispensers, including them in the selling process would be costly particularly as each sales call expenses approximately $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: Although a low advertising budget must have been appointed to Case Study Help however the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested marketing plan costing $51816 is suggested for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in automobile upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).