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Ocean Drilling Inc Case Study Solution
Ocean Drilling Inc Case Study Help
Ocean Drilling Inc Case Study Analysis
The following area focuses on the of marketing for Ocean Drilling Inc where the business's consumers, rivals and core proficiencies have evaluated in order to justify whether the decision to launch Case Study Help under Ocean Drilling Inc trademark name would be a feasible choice or not. We have to start with looked at the kind of clients that Ocean Drilling Inc handle 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 Ocean Drilling Inc name.
Both the groups utilize Ocean Drilling Inc high performance adhesives while the business is not only involved in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the customers of instant adhesives for this analysis because the market for the latter has a lower potential for Ocean Drilling Inc compared to that of instant adhesives.
The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been recognized earlier.If we take a look at a breakdown of Ocean Drilling Inc potential market or client groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and producers handling items made from leather, plastic, metal and wood. This variety in clients suggests that Ocean Drilling Inc can target has various options in terms of segmenting the market for its new product specifically as each of these groups would be needing the exact same type of item with respective changes in amount, product packaging or need. The consumer is not cost delicate or brand name conscious so introducing a low priced dispenser under Ocean Drilling Inc name is not a recommended choice.
Ocean Drilling Inc is not just a manufacturer of adhesives however enjoys market leadership in the instant adhesive industry. The company has its own skilled and certified sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Ocean Drilling Inc believes in unique circulation as shown by the truth that it has picked to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for expanding reach through distributors. The company's reach is not limited to North America only as it likewise takes pleasure in worldwide sales. With 1400 outlets spread all across The United States and Canada, Ocean Drilling Inc has its internal production plants rather than using out-sourcing as the preferred method.
Core competences are not restricted to adhesive manufacturing only as Ocean Drilling Inc also concentrates on making adhesive dispensing devices to help with the use of its items. This double production technique provides Ocean Drilling Inc an edge over rivals since none of the competitors of dispensing equipment makes instant adhesives. Additionally, none of these competitors sells directly to the customer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Ocean Drilling Inc, it is necessary to highlight the business's weak points also.
The company's sales staff is proficient in training distributors, the truth stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it ought to also be kept in mind that the distributors are revealing reluctance when it concerns offering equipment that needs maintenance which increases the difficulties of offering devices under a particular brand.
If we look at Ocean Drilling Inc product line in adhesive equipment particularly, the business has products aimed at the high end of the marketplace. The possibility of sales cannibalization exists if Ocean Drilling Inc sells Case Study Help under the very same portfolio. Provided the truth that Case Study Help is priced lower than Ocean Drilling Inc high-end line of product, sales cannibalization would definitely be affecting Ocean Drilling Inc sales earnings if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Ocean Drilling Inc 27A Pencil Applicator which is priced at $275. There is another possible threat which might reduce Ocean Drilling Inc revenue if Case Study Help is launched under the business's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the fact 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 market in general, the adhesives market does not show brand orientation or price consciousness which offers us 2 extra reasons for not launching a low priced item under the business's brand.
The competitive environment of Ocean Drilling Inc would be studied by means of Porter's 5 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 knowledge about the product. While companies like Ocean Drilling Inc have handled to train suppliers relating to adhesives, the last consumer is dependent 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: Given the reality that the adhesive market is controlled by three players, it could be stated that the supplier enjoys a higher bargaining power compared to the purchaser. The fact stays that the supplier does not have much impact over the buyer at this point specifically as the purchaser does not reveal brand name acknowledgment or price level of sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a significant control over the actual sales, this suggests that the distributor 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 instant adhesive market suggests that the market permits ease of entry. However, if we take a look at Ocean Drilling Inc in particular, the business has double capabilities in terms of being a producer of adhesive dispensers and immediate adhesives. Possible dangers in equipment dispensing market are low which reveals the possibility of producing brand awareness in not only instant adhesives but likewise in giving adhesives as none of the market players has actually handled to place itself in dual capabilities.
Hazard of Substitutes: The danger of alternatives in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The reality remains that if Ocean Drilling Inc presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided numerous factors for not launching Case Study Help under Ocean Drilling Inc name, we have actually a recommended marketing mix for Case Study Help provided below if Ocean Drilling Inc decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional growth capacity of 10.1% which may be a great sufficient niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the truth that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or through direct selling. This rate would not include the expense of the 'vari suggestion' or the 'glumetic idea'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for use in their day-to-day upkeep tasks.
Ocean Drilling Inc would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Ocean Drilling Inc for launching Case Study Help.
Place: A circulation design where Ocean Drilling Inc directly sends out the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Ocean Drilling Inc. Because the sales team is currently engaged in selling instant adhesives and they do not have proficiency in selling dispensers, including them in the selling process would be costly specifically as each sales call costs approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a favorable option.
Promotion: A low marketing budget must have been appointed to Case Study Help but the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising plan costing $51816 is recommended for initially presenting the item in the market. The planned ads in publications would be targeted at mechanics in lorry upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
