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Midwest Ice Cream Co Case Study Solution
Midwest Ice Cream Co Case Study Help
Midwest Ice Cream Co Case Study Analysis
The following section focuses on the of marketing for Midwest Ice Cream Co where the company's clients, competitors and core competencies have actually assessed in order to justify whether the choice to launch Case Study Help under Midwest Ice Cream Co brand would be a practical option or not. We have actually to start with looked at the type of clients that Midwest Ice Cream Co deals in 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 Midwest Ice Cream Co name.
Both the groups use Midwest Ice Cream Co high efficiency adhesives while the company is not only included in the production of these adhesives however also markets them to these customer groups. We would be focusing on the consumers of immediate adhesives for this analysis given that the market for the latter has a lower potential for Midwest Ice Cream Co compared to that of instant adhesives.
The overall market for instant 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 Midwest Ice Cream Co prospective market or customer groups, we can see that the company sells to OEMs (Original Equipment Manufacturers), Do-it-Yourself customers, repair and overhauling companies (MRO) and makers dealing in products made of leather, wood, metal and plastic. This variety in consumers recommends that Midwest Ice Cream Co can target has numerous options in terms of segmenting the market for its new item particularly as each of these groups would be requiring the same kind of item with respective modifications in packaging, amount or demand. Nevertheless, the client is not cost sensitive or brand name conscious so releasing a low priced dispenser under Midwest Ice Cream Co name is not an advised choice.
Midwest Ice Cream Co is not just a maker of adhesives however takes pleasure in market management in the immediate adhesive industry. The business has its own proficient and qualified sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core proficiencies are not limited to adhesive production just as Midwest Ice Cream Co also specializes in making adhesive giving equipment to facilitate using its products. This dual production technique gives Midwest Ice Cream Co an edge over rivals considering that none of the competitors of giving devices makes immediate adhesives. In addition, none of these competitors sells straight to the customer either and uses suppliers for connecting to clients. While we are looking at the strengths of Midwest Ice Cream Co, it is crucial to highlight the company's weak points.
Although the company's sales staff is proficient in training distributors, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it ought to likewise be noted that the suppliers are showing unwillingness when it pertains to offering equipment that needs maintenance which increases the difficulties of selling equipment under a specific brand.
If we take a look at Midwest Ice Cream Co product line in adhesive equipment particularly, the company has actually products focused on the high end of the marketplace. The possibility of sales cannibalization exists if Midwest Ice Cream Co sells Case Study Help under the same portfolio. Given the fact that Case Study Help is priced lower than Midwest Ice Cream Co high-end line of product, sales cannibalization would absolutely be affecting Midwest Ice Cream Co sales earnings if the adhesive devices is sold under the company's brand name.
We can see sales cannibalization impacting Midwest Ice Cream Co 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Midwest Ice Cream Co revenue if Case Study Help is introduced under the business's brand name. The truth that $175000 has been invested in promoting SuperBonder suggests that it is not a good 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.
In addition, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or rate awareness which gives us 2 additional factors for not launching a low priced product under the business's trademark name.
The competitive environment of Midwest Ice Cream Co would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low understanding about the product. While companies like Midwest Ice Cream Co have actually managed to train suppliers relating to adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made directly by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by three players, it could be said that the provider enjoys a higher bargaining power compared to the buyer. Nevertheless, the fact stays that the provider does not have much influence over the purchaser at this moment particularly as the buyer does not show brand acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the real sales, this suggests that the supplier 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 instantaneous adhesive market shows that the marketplace allows ease of entry. If we look at Midwest Ice Cream Co in specific, the business has double abilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Potential hazards in devices giving industry are low which shows the possibility of creating brand awareness in not only instant adhesives but likewise in dispensing adhesives as none of the industry gamers has handled to place itself in double capabilities.
Risk of Substitutes: The hazard of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality stays that if Midwest Ice Cream Co presented 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 various reasons for not releasing Case Study Help under Midwest Ice Cream Co name, we have a recommended marketing mix for Case Study Help given below if Midwest Ice Cream Co chooses to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an extra growth potential of 10.1% which might be a great adequate 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 potable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. This cost would not include the cost of the 'vari idea' or the 'glumetic tip'. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to acquire the product on his own. This would increase the possibility of affecting mechanics to buy the item for use in their daily maintenance tasks.
Midwest Ice Cream Co would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Midwest Ice Cream Co for launching Case Study Help.
Place: A distribution design where Midwest Ice Cream Co directly sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Midwest Ice Cream Co. Given that the sales team is currently taken part in selling instant adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be expensive particularly as each sales call expenses roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low promotional budget must have been assigned to Case Study Help but 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 suggested marketing strategy costing $51816 is suggested for at first introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in car maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
