The following area focuses on the of marketing for Musimundo where the company's customers, competitors and core proficiencies have evaluated in order to validate whether the decision to launch Case Study Help under Musimundo trademark name would be a practical option or not. We have firstly looked at the kind of customers that Musimundo deals in while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Musimundo name.
Musimundo customers can be segmented into two groups, last consumers and commercial consumers. Both the groups use Musimundo high performance adhesives while the business is not only associated with the production of these adhesives however likewise markets them to these consumer groups. There are 2 types of products that are being offered to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of immediate adhesives for this analysis because the marketplace for the latter has a lower potential for Musimundo compared to that of immediate adhesives.
The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both client groups which have been recognized earlier.If we take a look at a breakdown of Musimundo possible market or client groups, we can see that the company sells to OEMs (Original Devices Producers), Do-it-Yourself consumers, repair work and upgrading companies (MRO) and makers dealing in items made of leather, wood, metal and plastic. This variety in customers suggests that Musimundo can target has numerous alternatives in terms of segmenting the market for its new item specifically as each of these groups would be requiring the same type of product with particular changes in need, product packaging or amount. The customer is not price delicate or brand name conscious so releasing a low priced dispenser under Musimundo name is not a suggested option.
Musimundo is not just a producer of adhesives however takes pleasure in market management in the immediate adhesive market. The company has its own proficient and qualified sales force which includes value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.
Core skills are not limited to adhesive production just as Musimundo likewise specializes in making adhesive giving devices to facilitate making use of its items. This dual production strategy provides Musimundo an edge over competitors because none of the rivals of giving equipment makes instantaneous adhesives. Additionally, none of these competitors offers straight to the customer either and utilizes suppliers for connecting to customers. While we are looking at the strengths of Musimundo, it is essential to highlight the business's weaknesses.
Although the company's sales personnel is competent in training suppliers, the reality remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. Nevertheless, it must likewise be kept in mind that the distributors are showing reluctance when it comes to selling devices that requires servicing which increases the challenges of selling equipment under a particular trademark name.
The business has actually products aimed at the high end of the market if we look at Musimundo product line in adhesive equipment especially. If Musimundo offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Musimundo high-end product line, sales cannibalization would absolutely be impacting Musimundo sales profits if the adhesive devices is sold under the company's brand name.
We can see sales cannibalization impacting Musimundo 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 could reduce Musimundo income. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great 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 immediate adhesive.
Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost consciousness which gives us two additional reasons for not launching a low priced product under the company's brand name.
The competitive environment of Musimundo 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 purchaser in this market is low especially as the purchaser has low understanding about the item. While business like Musimundo have actually managed to train suppliers regarding adhesives, the final customer is dependent on suppliers. Around 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 fact that the adhesive market is dominated by three gamers, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. The truth stays that the provider does not have much influence over the buyer at this point especially as the purchaser does not reveal brand name recognition or price level of sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a major control over the actual sales, this suggests that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the market permits ease of entry. If we look at Musimundo in particular, the business has dual capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential dangers in equipment dispensing industry are low which shows the possibility of producing brand awareness in not only immediate adhesives however also in dispensing adhesives as none of the industry gamers has actually managed to position itself in dual abilities.
Risk of Substitutes: The danger of replacements in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Musimundo presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered numerous reasons for not releasing Case Study Help under Musimundo name, we have actually a recommended marketing mix for Case Study Help provided below if Musimundo chooses to go on with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a number of factors. There are currently 89257 facilities in this section and a high usage of around 58900 lbs. is being utilized by 36.1 % of the market. This market has an extra development potential of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can choose whether he wishes to choose either of the two accessories or not.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This rate would not include the cost of the 'vari tip' or the 'glumetic tip'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop requires to purchase the product on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their everyday maintenance tasks.
Musimundo would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Musimundo for releasing Case Study Help.
Place: A circulation model where Musimundo straight sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Musimundo. Since the sales group is already participated in selling instantaneous adhesives and they do not have know-how in offering dispensers, including them in the selling procedure would be expensive particularly as each sales call expenses roughly $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: Although a low marketing budget plan should have been appointed to Case Study Help but the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing plan costing $51816 is suggested for at first presenting the product in the market. The planned ads in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).