Nutra Foods Case Study Help Checklist

Nutra Foods Case Study Help Checklist

Nutra Foods Case Study Solution
Nutra Foods Case Study Help
Nutra Foods Case Study Analysis

Analyses for Evaluating Nutra Foods decision to launch Case Study Solution

The following section focuses on the of marketing for Nutra Foods where the company's consumers, rivals and core proficiencies have assessed in order to validate whether the decision to launch Case Study Help under Nutra Foods trademark name would be a feasible option or not. We have to start with looked at the kind of customers that Nutra Foods deals in while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Nutra Foods name.
Nutra Foods Case Study Solution

Customer Analysis

Nutra Foods customers can be segmented into 2 groups, commercial consumers and last consumers. Both the groups use Nutra Foods high performance adhesives while the company is not only associated with the production of these adhesives however also markets them to these client groups. There are two kinds of items that are being sold to these prospective markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the marketplace for the latter has a lower capacity for Nutra Foods compared to that of instant adhesives.

The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Nutra Foods prospective market or client groups, we can see that the company sells to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and manufacturers handling products made from leather, metal, plastic and wood. This diversity in clients suggests that Nutra Foods can target has various choices in regards to segmenting the market for its new product especially as each of these groups would be needing the same type of item with particular modifications in quantity, need or packaging. Nevertheless, the consumer is not cost sensitive or brand name mindful so releasing a low priced dispenser under Nutra Foods name is not a recommended alternative.

Company Analysis

Nutra Foods is not simply a maker of adhesives but delights in market leadership in the immediate adhesive industry. The company has its own skilled and competent sales force which includes value to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not restricted to adhesive manufacturing just as Nutra Foods likewise specializes in making adhesive giving devices to help with using its products. This dual production method provides Nutra Foods an edge over competitors given that none of the competitors of giving devices makes instantaneous adhesives. In addition, none of these rivals offers directly to the consumer either and utilizes suppliers for connecting to consumers. While we are taking a look at the strengths of Nutra Foods, it is essential to highlight the business's weaknesses as well.

Although the business's sales staff is competent in training suppliers, the reality stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it ought to likewise be kept in mind that the distributors are showing unwillingness when it concerns offering devices that needs servicing which increases the difficulties of offering equipment under a particular trademark name.

The business has products aimed at the high end of the market if we look at Nutra Foods item line in adhesive equipment especially. If Nutra Foods sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Nutra Foods high-end product line, sales cannibalization would definitely be impacting Nutra Foods sales profits if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization affecting Nutra Foods 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible threat which could decrease Nutra Foods income. The truth that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

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

Competitor Analysis

The competitive environment of Nutra Foods would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high development potential due to the existence of fragmented segments with Nutra Foods delighting in management and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While industry competition in between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these gamers has prominence in regards to market share, the reality still stays that the market is not saturated and still has a number of market segments which can be targeted as prospective niche markets even when releasing 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 immediate adhesives uses development potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low understanding about the item. While companies like Nutra Foods have actually handled to train distributors relating to adhesives, the final customer depends on distributors. Roughly 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three players, it could be said that the supplier takes pleasure in a higher bargaining power compared to the purchaser. Nevertheless, the truth remains that the provider does not have much influence over the purchaser at this moment particularly as the buyer does not show brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a major control over the real sales, this shows 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 indicates that the market enables ease of entry. If we look at Nutra Foods in particular, the company has double abilities in terms of being a producer of adhesive dispensers and immediate adhesives. Potential hazards in devices giving market are low which reveals the possibility of producing brand name awareness in not just instantaneous adhesives however also in giving adhesives as none of the market players has actually managed to position itself in dual capabilities.

Hazard of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The fact stays that if Nutra Foods introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).

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

Nutra Foods Case Study Help

Despite the fact that our 3C analysis has actually provided various factors for not introducing Case Study Help under Nutra Foods name, we have a recommended marketing mix for Case Study Help provided listed below if Nutra Foods decides to proceed with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are presently 89257 establishments in this segment and a high usage of roughly 58900 lbs. is being utilized by 36.1 % of the market. This market has an extra development capacity of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can choose whether he wants to choose either of the two devices or not.

Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to buy the item on his own.

Nutra Foods would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Nutra Foods for launching Case Study Help.

Place: A distribution design where Nutra Foods straight sends out the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Nutra Foods. Since the sales group is currently participated in selling instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be costly particularly as each sales call expenses around $120. The distributors are already offering dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: A low advertising budget ought to have been appointed to Case Study Help however the fact 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 marketing strategy costing $51816 is suggested for at first introducing the item in the market. The planned ads in magazines would be targeted at mechanics in car upkeep shops. (Suggested 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
Nutra Foods Case Study Analysis

A recommended strategy of action in the kind of a marketing mix has actually been talked about for Case Study Help, the truth still stays that the product would not complement Nutra Foods product line. 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 according to the plan. Nevertheless, the initial prepared marketing is approximately $52000 per year which would be putting a stress on the business's resources leaving Nutra Foods with a negative net income if the costs are assigned to Case Study Help just.

The fact that Nutra Foods has actually currently incurred an initial investment of $48000 in the form of capital expense and prototype development indicates that the revenue from Case Study Help is not enough to carry out the risk 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 especially of it is affecting the sale of the company's earnings producing models.