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Olympic Financial Ltd Case Study Solution
Olympic Financial Ltd Case Study Help
Olympic Financial Ltd Case Study Analysis
The following area focuses on the of marketing for Olympic Financial Ltd where the company's consumers, competitors and core competencies have actually examined in order to validate whether the decision to introduce Case Study Help under Olympic Financial Ltd trademark name would be a practical alternative or not. We have actually first of all looked at the type of consumers that Olympic Financial Ltd handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Olympic Financial Ltd name.
Both the groups use Olympic Financial Ltd high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these client groups. We would be focusing on the consumers of instant adhesives for this analysis since the market for the latter has a lower capacity for Olympic Financial Ltd compared to that of immediate adhesives.
The overall market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have actually been identified earlier.If we look at a breakdown of Olympic Financial Ltd prospective market or consumer groups, we can see that the company offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and producers dealing in items made of leather, wood, plastic and metal. This diversity in consumers suggests that Olympic Financial Ltd can target has various choices in regards to segmenting the market for its brand-new product particularly as each of these groups would be needing the same kind of product with particular modifications in need, packaging or amount. However, the customer is not price sensitive or brand name conscious so releasing a low priced dispenser under Olympic Financial Ltd name is not a recommended option.
Olympic Financial Ltd is not simply a maker of adhesives however enjoys market leadership in the instant adhesive market. The business has its own skilled and qualified sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives. Olympic Financial Ltd believes in unique distribution as suggested by the fact that it has picked to offer through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach via suppliers. The business's reach is not restricted to North America just as it likewise enjoys worldwide sales. With 1400 outlets spread out all throughout The United States and Canada, Olympic Financial Ltd has its internal production plants instead of using out-sourcing as the favored method.
Core skills are not limited to adhesive production just as Olympic Financial Ltd likewise specializes in making adhesive giving equipment to assist in the use of its products. This dual production technique gives Olympic Financial Ltd an edge over competitors because none of the competitors of giving equipment makes immediate adhesives. Additionally, none of these competitors sells straight to the consumer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Olympic Financial Ltd, it is important to highlight the business's weak points.
The business's sales personnel is skilled in training distributors, the reality stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It should also be kept in mind that the distributors are showing hesitation when it comes to selling equipment that requires maintenance which increases the difficulties of selling devices under a specific brand name.
The company has products aimed at the high end of the market if we look at Olympic Financial Ltd product line in adhesive devices particularly. The possibility of sales cannibalization exists if Olympic Financial Ltd sells Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Olympic Financial Ltd high-end line of product, sales cannibalization would definitely be affecting Olympic Financial Ltd sales profits if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Olympic Financial Ltd 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible hazard which might decrease Olympic Financial Ltd earnings. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a good 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 immediate adhesive.
In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or rate awareness which offers us two additional reasons for not launching a low priced product under the business's brand.
The competitive environment of Olympic Financial Ltd would be studied through 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 particularly as the purchaser has low knowledge about the item. While companies like Olympic Financial Ltd have handled to train distributors regarding adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made directly by makers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 players, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. Nevertheless, the fact stays that the provider does not have much influence over the buyer at this point particularly as the purchaser does disappoint brand recognition or rate sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales, this suggests that the distributor has the higher 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 immediate adhesive market indicates that the market allows ease of entry. If we look at Olympic Financial Ltd in particular, the company has double abilities in terms of being a producer of immediate adhesives and adhesive dispensers. Potential threats in equipment dispensing market are low which shows the possibility of developing brand name awareness in not only immediate adhesives however likewise in dispensing adhesives as none of the industry players has managed to place itself in dual capabilities.
Risk of Substitutes: The threat of replacements in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Olympic Financial Ltd presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided numerous reasons for not releasing Case Study Help under Olympic Financial Ltd name, we have actually a recommended marketing mix for Case Study Help given below if Olympic Financial Ltd chooses to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of factors. This market has an additional development potential of 10.1% which might be a great adequate specific niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the truth that the Diy market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or through direct selling. This cost would not consist of the cost of the 'vari tip' or the 'glumetic suggestion'. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to purchase the item on his own. This would increase the possibility of influencing mechanics to buy the product for usage in their day-to-day maintenance tasks.
Olympic Financial Ltd would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Olympic Financial Ltd for introducing Case Study Help.
Place: A distribution design where Olympic Financial Ltd straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Olympic Financial Ltd. Since the sales team is already taken part in offering immediate adhesives and they do not have know-how in selling dispensers, including them in the selling process would be expensive specifically as each sales call expenses approximately $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low advertising spending plan must have been appointed to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is recommended for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
