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Nutra Foods Case Study Solution
Nutra Foods Case Study Help
Nutra Foods Case Study Analysis
The following section concentrates on the of marketing for Nutra Foods where the business's clients, rivals and core proficiencies have examined in order to justify whether the decision to introduce Case Study Help under Nutra Foods trademark name would be a possible alternative or not. We have first of all looked at the type of customers that Nutra Foods deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Nutra Foods name.
Nutra Foods consumers can be segmented into two groups, industrial customers and last consumers. Both the groups utilize Nutra Foods high performance adhesives while the business is not just involved in the production of these adhesives but also markets them to these customer groups. There are two types of products that are being sold to these potential markets; immediate adhesives and anaerobic adhesives. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Nutra Foods compared to that of instant adhesives.
The overall market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have actually been recognized earlier.If we take a look at a breakdown of Nutra Foods potential market or customer groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair work and revamping business (MRO) and makers dealing in items made from leather, wood, metal and plastic. This diversity in clients suggests that Nutra Foods can target has different choices in terms of segmenting the marketplace for its brand-new product particularly as each of these groups would be requiring the same type of product with respective changes in packaging, quantity or demand. The consumer is not price delicate or brand conscious so introducing a low priced dispenser under Nutra Foods name is not a suggested option.
Nutra Foods is not simply a manufacturer of adhesives but enjoys market management in the instant adhesive market. The business has its own proficient and certified sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.
Core skills are not restricted to adhesive production only as Nutra Foods likewise specializes in making adhesive giving devices to assist in using its items. This double production technique offers Nutra Foods an edge over rivals considering that none of the competitors of giving equipment makes immediate adhesives. In addition, none of these competitors sells straight to the consumer either and utilizes distributors for reaching out to clients. While we are looking at the strengths of Nutra Foods, it is important to highlight the business's weak points also.
The business's sales staff is experienced in training suppliers, the fact remains that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it ought to likewise be kept in mind that the suppliers are revealing reluctance when it concerns offering devices that needs servicing which increases the difficulties of offering equipment under a particular trademark name.
If we look at Nutra Foods line of product in adhesive equipment particularly, the business has actually products targeted at the high end of the market. The possibility of sales cannibalization exists if Nutra Foods sells Case Study Help under the exact same portfolio. Given the reality that Case Study Help is priced lower than Nutra Foods high-end product line, sales cannibalization would certainly be impacting Nutra Foods sales earnings if the adhesive devices is offered under the business's brand.
We can see sales cannibalization impacting 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 risk which could lower Nutra Foods income. The truth that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does not show brand name orientation or price awareness which offers us two additional reasons for not releasing a low priced product under the company's brand name.
The competitive environment of Nutra Foods 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 purchaser in this industry is low specifically as the buyer has low understanding about the product. While business like Nutra Foods have managed to train distributors relating to adhesives, the final customer depends on distributors. Around 72% of sales are made directly by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by three players, it could be stated that the provider enjoys a higher bargaining power compared to the buyer. Nevertheless, the truth stays that the provider does not have much impact over the purchaser at this point specifically as the buyer does disappoint brand name recognition or cost level of sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a significant 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 instantaneous adhesive market shows that the marketplace allows ease of entry. If we look at Nutra Foods in specific, the company has dual abilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Prospective risks in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not only instantaneous adhesives but likewise in giving adhesives as none of the industry players has actually handled to position itself in double capabilities.
Hazard of Substitutes: The danger of alternatives in the instant adhesive market is low while the dispenser market in particular has alternatives 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 indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given numerous factors for not releasing Case Study Help under Nutra Foods name, we have a recommended marketing mix for Case Study Help given listed below if Nutra Foods decides to go ahead with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this section and a high usage of roughly 58900 lbs. is being used by 36.1 % of the marketplace. This market has an extra development potential of 10.1% which might be a good enough specific niche market section for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to go with either of the two accessories or not.
Price: The recommended rate 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. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to buy the product on his own.
Nutra Foods would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Nutra Foods for launching Case Study Help.
Place: A distribution model where Nutra Foods directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Nutra Foods. Since the sales group is already taken part in selling instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be expensive specifically as each sales call expenses approximately $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: Although a low marketing budget needs to have been designated to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended advertising strategy costing $51816 is recommended for at first introducing the item in the market. The planned ads in publications would be targeted at mechanics in automobile maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
