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Opportunity Partners Case Study Solution
Opportunity Partners Case Study Help
Opportunity Partners Case Study Analysis
The following section concentrates on the of marketing for Opportunity Partners where the company's consumers, rivals and core competencies have evaluated in order to justify whether the choice to launch Case Study Help under Opportunity Partners trademark name would be a practical choice or not. We have actually firstly looked at the kind of clients that Opportunity Partners handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Opportunity Partners name.
Both the groups utilize Opportunity Partners high efficiency adhesives while the company is not only involved in the production of these adhesives but also markets them to these customer groups. We would be focusing on the customers of instantaneous adhesives for this analysis given that the market for the latter has a lower potential for Opportunity Partners compared to that of instantaneous adhesives.
The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Opportunity Partners possible market or customer groups, we can see that the business sells to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and makers handling products made of leather, wood, plastic and metal. This variety in customers recommends that Opportunity Partners can target has numerous options in regards to segmenting the marketplace for its new product especially as each of these groups would be needing the same type of item with particular changes in quantity, need or packaging. The consumer is not rate delicate or brand mindful so launching a low priced dispenser under Opportunity Partners name is not a suggested alternative.
Opportunity Partners is not simply a producer of adhesives but enjoys market leadership in the immediate adhesive market. The company has its own knowledgeable and certified sales force which includes value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Opportunity Partners likewise specializes in making adhesive dispensing devices to help with the use of its items. This double production technique offers Opportunity Partners an edge over rivals because none of the competitors of giving equipment makes instant adhesives. Furthermore, none of these competitors offers directly to the customer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Opportunity Partners, it is essential to highlight the business's weaknesses.
The business's sales personnel is experienced in training distributors, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. However, it needs to also be noted that the suppliers are showing unwillingness when it pertains to selling equipment that requires maintenance which increases the challenges of offering devices under a specific trademark name.
If we look at Opportunity Partners product line in adhesive devices particularly, the company has items targeted at the luxury of the marketplace. If Opportunity Partners offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Opportunity Partners high-end product line, sales cannibalization would definitely be affecting Opportunity Partners sales profits if the adhesive equipment is offered under the business's brand.
We can see sales cannibalization impacting Opportunity Partners 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible threat which could decrease Opportunity Partners profits. The truth that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for launching 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.
Additionally, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost awareness which gives us two additional reasons for not launching a low priced item under the company's brand.
The competitive environment of Opportunity Partners 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 especially as the purchaser has low knowledge about the product. While companies like Opportunity Partners have actually managed to train distributors regarding adhesives, the last consumer depends on distributors. Around 72% of sales are made directly by manufacturers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 players, it could be stated that the supplier delights in a greater bargaining power compared to the purchaser. However, the truth stays that the provider does not have much influence over the buyer at this moment specifically as the buyer does disappoint brand name recognition or rate level of sensitivity. This indicates that the supplier has the greater power when it pertains to the adhesive market while the producer and the purchaser do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market indicates that the market enables ease of entry. If we look at Opportunity Partners in particular, the company has double abilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential risks in devices dispensing market are low which reveals the possibility of creating brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the market players has actually handled to place itself in dual abilities.
Risk of Substitutes: The danger of replacements in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality remains that if Opportunity Partners introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided different factors for not launching Case Study Help under Opportunity Partners name, we have a suggested marketing mix for Case Study Help given below if Opportunity Partners decides to go on with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a variety of factors. There are currently 89257 establishments in this section and a high use of roughly 58900 lbs. is being used by 36.1 % of the market. This market has an additional growth potential of 10.1% which may be a good enough niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for use with SuperBonder. The product would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wants to select either of the two devices or not.
Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance store requires to purchase the product on his own.
Opportunity Partners would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Opportunity Partners for releasing Case Study Help.
Place: A circulation model where Opportunity Partners straight sends out the item to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Opportunity Partners. Considering that the sales team is currently taken part in selling immediate adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be costly especially as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable option.
Promotion: Although a low marketing budget must have been appointed to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is advised for at first introducing the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle upkeep stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
