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Olympus A Case Study Help Checklist

Olympus A Case Study Help Checklist

Olympus A Case Study Solution
Olympus A Case Study Help
Olympus A Case Study Analysis



Analyses for Evaluating Olympus A decision to launch Case Study Solution


The following area focuses on the of marketing for Olympus A where the company's consumers, competitors and core proficiencies have actually examined in order to justify whether the decision to introduce Case Study Help under Olympus A trademark name would be a practical alternative or not. We have firstly looked at the kind of clients that Olympus A handle while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Olympus A name.
Olympus A Case Study Solution

Customer Analysis

Both the groups use Olympus A high performance adhesives while the business is not just involved in the production of these adhesives however likewise markets them to these customer groups. We would be focusing on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Olympus A compared to that of immediate adhesives.

The total market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Olympus A prospective market or client groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair and overhauling business (MRO) and producers dealing in products made of leather, metal, wood and plastic. This variety in clients suggests that Olympus A can target has various options in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be needing the same kind of product with respective changes in need, product packaging or amount. The client is not price delicate or brand name mindful so introducing a low priced dispenser under Olympus A name is not a recommended option.

Company Analysis

Olympus A is not simply a maker of adhesives but takes pleasure in market leadership in the instantaneous adhesive industry. The company has its own proficient and qualified sales force which adds worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives.

Core skills are not limited to adhesive manufacturing only as Olympus A likewise focuses on making adhesive giving devices to assist in using its products. This dual production strategy provides Olympus A an edge over rivals given that none of the rivals of giving devices makes instantaneous adhesives. In addition, none of these competitors sells straight to the consumer either and utilizes suppliers for reaching out to consumers. While we are taking a look at the strengths of Olympus A, it is very important to highlight the business's weaknesses too.

The company's sales staff is proficient in training distributors, the fact remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it ought to also be kept in mind that the suppliers are showing reluctance when it concerns selling devices that requires maintenance which increases the difficulties of offering devices under a particular brand.

The company has actually items aimed at the high end of the market if we look at Olympus A item line in adhesive devices particularly. The possibility of sales cannibalization exists if Olympus A sells Case Study Help under the exact same portfolio. Provided the truth that Case Study Help is priced lower than Olympus A high-end product line, sales cannibalization would certainly be impacting Olympus A sales profits if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization affecting Olympus A 27A Pencil Applicator which is priced at $275. There is another possible hazard which might reduce Olympus A earnings if Case Study Help is introduced under the company's brand name. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching 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.

Furthermore, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or rate consciousness which provides us 2 extra reasons for not introducing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Olympus A would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high growth potential due to the existence of fragmented sections with Olympus A taking pleasure in leadership and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While market competition in between these gamers could be called 'extreme' as the consumer is not brand mindful and each of these players has prominence in terms of market share, the reality still stays that the market is not saturated and still has numerous market sections which can be targeted as prospective niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for immediate adhesives provides growth capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the buyer has low understanding about the product. While business like Olympus A have managed to train suppliers concerning adhesives, the final customer depends on suppliers. Approximately 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three players, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much influence over the purchaser at this point specifically as the purchaser does not show brand recognition or rate level of sensitivity. When it comes to the adhesive market while the producer and the buyer do not have a major control over the actual sales, this shows that the distributor has the greater power.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market indicates that the marketplace allows ease of entry. Nevertheless, if we take a look at Olympus A in particular, the business has dual capabilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Prospective hazards in devices giving market are low which reveals the possibility of developing brand name awareness in not only instantaneous adhesives however likewise in dispensing adhesives as none of the industry players has handled to place itself in dual capabilities.

Threat of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Olympus A presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Olympus A Case Study Help


Despite the fact that our 3C analysis has offered numerous reasons for not introducing Case Study Help under Olympus A name, we have actually a recommended marketing mix for Case Study Help given below if Olympus A decides to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional development potential of 10.1% which may be a good sufficient specific niche market section for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This rate would not include the cost of the 'vari tip' or the 'glumetic suggestion'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance shop needs to acquire the item on his own. This would increase the possibility of affecting mechanics to purchase the product for usage in their everyday maintenance jobs.

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

Place: A distribution design where Olympus A straight sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be used by Olympus A. Considering that the sales group is already taken part in offering instant adhesives and they do not have knowledge in selling dispensers, including them in the selling process would be expensive specifically as each sales call expenses roughly $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: Although a low promotional budget plan should have been appointed to Case Study Help but the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested advertising strategy costing $51816 is recommended for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Olympus A Case Study Analysis

A suggested strategy of action in the type of a marketing mix has been discussed for Case Study Help, the fact still stays that the product would not complement Olympus A product line. We have a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be roughly $49377 if 250 units of each model are produced each year as per the plan. However, the initial prepared advertising is approximately $52000 annually which would be putting a pressure on the business's resources leaving Olympus A with an unfavorable net income if the expenditures are allocated to Case Study Help just.

The truth that Olympus A has actually currently incurred a preliminary financial investment of $48000 in the form of capital expense and model development shows that the revenue from Case Study Help is insufficient to undertake the threat of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a preferable alternative particularly of it is affecting the sale of the business's earnings producing designs.



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