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Ocean Carriers Case Study Help Checklist

Ocean Carriers Case Study Help Checklist

Ocean Carriers Case Study Solution
Ocean Carriers Case Study Help
Ocean Carriers Case Study Analysis



Analyses for Evaluating Ocean Carriers decision to launch Case Study Solution


The following section concentrates on the of marketing for Ocean Carriers where the business's consumers, rivals and core competencies have evaluated in order to validate whether the choice to introduce Case Study Help under Ocean Carriers brand name would be a feasible alternative or not. We have actually firstly looked at the type of consumers that Ocean Carriers deals in while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Ocean Carriers name.
Ocean Carriers Case Study Solution

Customer Analysis

Both the groups use Ocean Carriers high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these customer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis because the market for the latter has a lower capacity for Ocean Carriers compared to that of immediate adhesives.

The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we look at a breakdown of Ocean Carriers prospective market or consumer groups, we can see that the company sells to OEMs (Original Equipment Producers), Do-it-Yourself customers, repair and revamping business (MRO) and makers handling products made from leather, plastic, metal and wood. This variety in customers suggests that Ocean Carriers can target has numerous options in terms of segmenting the marketplace for its new product especially as each of these groups would be needing the very same type of item with respective changes in need, packaging or quantity. The customer is not price sensitive or brand name mindful so releasing a low priced dispenser under Ocean Carriers name is not a suggested option.

Company Analysis

Ocean Carriers is not just a producer of adhesives however delights in market management in the immediate adhesive industry. The business has its own competent and qualified sales force which includes worth to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.

Core skills are not restricted to adhesive production just as Ocean Carriers likewise focuses on making adhesive giving devices to facilitate making use of its items. This double production strategy gives Ocean Carriers an edge over rivals given that none of the competitors of dispensing devices makes immediate adhesives. Additionally, none of these competitors sells straight to the consumer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Ocean Carriers, it is important to highlight the company's weak points.

Although the business's sales personnel is proficient in training distributors, the truth remains that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. Nevertheless, it should likewise be noted that the distributors are showing hesitation when it comes to selling equipment that requires maintenance which increases the obstacles of selling devices under a particular brand name.

The business has actually items intended at the high end of the market if we look at Ocean Carriers item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Ocean Carriers offers Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Ocean Carriers high-end product line, sales cannibalization would absolutely be impacting Ocean Carriers sales revenue if the adhesive equipment is offered under the company's trademark name.

We can see sales cannibalization affecting Ocean Carriers 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Ocean Carriers revenue if Case Study Help is introduced under the company's trademark name. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for releasing 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.

Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which offers us two extra reasons for not releasing a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Ocean Carriers would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sections with Ocean Carriers taking pleasure in management and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market rivalry between these gamers could be called 'extreme' as the consumer is not brand conscious and each of these gamers has prominence in terms of market share, the reality still stays that the industry is not filled and still has several market sectors which can be targeted as possible specific niche markets even when launching an adhesive. However, we can even mention the truth that sales cannibalization might be resulting in industry competition in the adhesive dispenser market while the marketplace for instantaneous adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low knowledge about the item. While companies like Ocean Carriers have actually handled to train distributors regarding adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made straight by producers and distributors for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 gamers, it could be stated that the supplier delights in a greater 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 buyer does not show brand name recognition or cost level of sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a major control over the real sales, this suggests that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the instant adhesive market suggests that the market permits ease of entry. However, if we take a look at Ocean Carriers in particular, the company has double abilities in regards to being a producer of adhesive dispensers and immediate adhesives. Potential risks in equipment giving industry are low which reveals the possibility of developing brand name awareness in not just instantaneous adhesives however also in dispensing adhesives as none of the market gamers has handled to position itself in dual abilities.

Threat of Substitutes: The risk of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Ocean Carriers introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).


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

Ocean Carriers Case Study Help


Despite the fact that our 3C analysis has offered different factors for not releasing Case Study Help under Ocean Carriers name, we have actually a recommended marketing mix for Case Study Help offered listed below if Ocean Carriers decides to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an extra development potential of 10.1% which might be a great enough niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the reality that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. This price would not consist of the expense of the 'vari tip' or the 'glumetic pointer'. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to purchase the product on his own. This would increase the possibility of influencing mechanics to purchase the product for use in their daily maintenance tasks.

Ocean Carriers would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Ocean Carriers for releasing Case Study Help.

Place: A distribution design where Ocean Carriers directly sends the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Ocean Carriers. Since the sales team is already engaged in selling instant adhesives and they do not have expertise in selling dispensers, including them in the selling procedure would be costly especially as each sales call expenses roughly $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: Although a low advertising spending plan ought to have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended marketing strategy costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in lorry upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Ocean Carriers Case Study Analysis

A suggested plan of action in the form of a marketing mix has been gone over for Case Study Help, the reality still stays that the item would not complement Ocean Carriers item line. We take a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be roughly $49377 if 250 units of each model are produced annually as per the plan. However, the initial planned advertising is around $52000 annually which would be putting a strain on the business's resources leaving Ocean Carriers with an unfavorable earnings if the expenditures are allocated to Case Study Help only.

The truth that Ocean Carriers has actually currently sustained an initial financial investment of $48000 in the form of capital expense and prototype development shows that the revenue from Case Study Help is inadequate to undertake the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a more suitable choice especially of it is affecting the sale of the company's income generating designs.



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