The following area focuses on the of marketing for Ocean Drilling Inc where the company's clients, competitors and core proficiencies have examined in order to justify whether the decision to release Case Study Help under Ocean Drilling Inc trademark name would be a practical option or not. We have actually first of all taken a look at the kind of clients that Ocean Drilling Inc deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Ocean Drilling Inc name.
Ocean Drilling Inc customers can be segmented into 2 groups, industrial consumers and last consumers. Both the groups utilize Ocean Drilling Inc high performance adhesives while the business is not only involved in the production of these adhesives however likewise markets them to these client groups. There are two types of products that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be focusing on the customers of instant adhesives for this analysis since the marketplace for the latter has a lower capacity for Ocean Drilling Inc compared to that of immediate adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been determined earlier.If we take a look at a breakdown of Ocean Drilling Inc possible market or customer groups, we can see that the business offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair and upgrading business (MRO) and manufacturers dealing in items made from leather, wood, metal and plastic. This variety in customers suggests that Ocean Drilling Inc can target has different options in terms of segmenting the market for its new item specifically as each of these groups would be needing the exact same kind of product with particular changes in demand, product packaging or amount. Nevertheless, the consumer is not cost sensitive or brand name conscious so releasing a low priced dispenser under Ocean Drilling Inc name is not a recommended choice.
Ocean Drilling Inc is not simply a producer of adhesives however enjoys market leadership in the instant adhesive industry. The business has its own knowledgeable and certified sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Ocean Drilling Inc believes in special distribution as suggested by the fact that it has chosen to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach via distributors. The business's reach is not limited to The United States and Canada only as it also takes pleasure in worldwide sales. With 1400 outlets spread out all across The United States and Canada, Ocean Drilling Inc has its internal production plants rather than using out-sourcing as the favored strategy.
Core competences are not restricted to adhesive manufacturing only as Ocean Drilling Inc also concentrates on making adhesive dispensing devices to facilitate using its products. This double production technique provides Ocean Drilling Inc an edge over competitors because none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these rivals offers straight to the customer either and makes use of distributors for reaching out to customers. While we are looking at the strengths of Ocean Drilling Inc, it is crucial to highlight the company's weak points.
Although the business's sales personnel is competent in training distributors, the fact remains that the sales team is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It should likewise be kept in mind that the distributors are revealing reluctance when it comes to selling devices that needs servicing which increases the challenges of selling devices under a specific brand name.
If we look at Ocean Drilling Inc line of product in adhesive equipment especially, the company has actually items targeted at the high-end of the marketplace. If Ocean Drilling Inc offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Ocean Drilling Inc high-end line of product, sales cannibalization would certainly be affecting Ocean Drilling Inc sales revenue if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization affecting Ocean Drilling Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which could reduce Ocean Drilling Inc earnings if Case Study Help is launched under the company's trademark name. The truth that $175000 has actually been invested in promoting SuperBonder recommends 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 instant adhesive.
In addition, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or price consciousness which provides us 2 extra factors for not releasing a low priced product under the company's brand name.
The competitive environment of Ocean Drilling Inc would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low knowledge about the item. While business like Ocean Drilling Inc have actually handled to train distributors regarding adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made straight by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three players, it could be stated that the provider delights in a greater bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the purchaser at this point especially as the purchaser does not reveal brand name recognition or cost level of sensitivity. This shows that the distributor has the greater power when it pertains to the adhesive market while the producer and the purchaser do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market shows that the marketplace allows ease of entry. If we look at Ocean Drilling Inc in particular, the business has dual abilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential hazards in equipment giving market are low which shows the possibility of producing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the market players has handled to position itself in dual capabilities.
Danger of Substitutes: The threat of substitutes in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Ocean Drilling Inc presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given numerous reasons for not introducing Case Study Help under Ocean Drilling Inc name, we have a recommended marketing mix for Case Study Help offered below if Ocean Drilling Inc chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional development capacity of 10.1% which may be a good sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser offer 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 usage with SuperBonder.
Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to buy the product on his own.
Ocean Drilling Inc would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Ocean Drilling Inc for releasing Case Study Help.
Place: A distribution design where Ocean Drilling Inc directly sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Ocean Drilling Inc. Considering that the sales group is currently engaged in selling instant adhesives and they do not have competence in selling dispensers, involving them in the selling procedure would be costly especially as each sales call expenses roughly $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: Although a low advertising spending plan needs to have been appointed to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended marketing plan costing $51816 is recommended for initially introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in lorry upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).