The following section focuses on the of marketing for Oriflame Sa C where the company's consumers, competitors and core competencies have examined in order to justify whether the choice to launch Case Study Help under Oriflame Sa C brand would be a feasible alternative or not. We have firstly looked at the kind of customers that Oriflame Sa C handle while an examination 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 Oriflame Sa C name.
Oriflame Sa C customers can be segmented into two groups, industrial clients and last customers. Both the groups utilize Oriflame Sa C high performance adhesives while the business is not just involved in the production of these adhesives but likewise markets them to these client groups. There are two types of products that are being sold to these prospective markets; instant adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis given that the marketplace for the latter has a lower capacity for Oriflame Sa C compared to that of instant adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Oriflame Sa C potential market or consumer groups, we can see that the business sells to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair work and revamping companies (MRO) and producers handling products made of leather, plastic, wood and metal. This variety in clients suggests that Oriflame Sa C can target has different choices in terms of segmenting the market for its brand-new item especially as each of these groups would be requiring the same type of item with respective modifications in quantity, product packaging or need. The consumer is not price sensitive or brand conscious so introducing a low priced dispenser under Oriflame Sa C name is not an advised alternative.
Oriflame Sa C is not simply a manufacturer of adhesives however enjoys market management in the instantaneous adhesive market. The company has its own experienced and qualified sales force which includes value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives.
Core proficiencies are not restricted to adhesive production only as Oriflame Sa C likewise specializes in making adhesive giving equipment to assist in using its products. This dual production strategy gives Oriflame Sa C an edge over rivals considering that none of the rivals of dispensing equipment makes instant adhesives. Additionally, none of these rivals sells straight to the customer either and makes use of suppliers for reaching out to clients. While we are looking at the strengths of Oriflame Sa C, it is necessary to highlight the business's weak points also.
The company's sales staff is skilled in training suppliers, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it needs to likewise be kept in mind that the distributors are showing reluctance when it pertains to offering devices that requires servicing which increases the obstacles of selling devices under a specific brand.
If we look at Oriflame Sa C product line in adhesive equipment especially, the business has actually items aimed at the high end of the marketplace. If Oriflame Sa C sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Oriflame Sa C high-end line of product, sales cannibalization would definitely be affecting Oriflame Sa C sales profits if the adhesive equipment is offered under the business's trademark name.
We can see sales cannibalization affecting Oriflame Sa C 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible risk which might decrease Oriflame Sa C income. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which offers us 2 extra reasons for not introducing a low priced item under the business's trademark name.
The competitive environment of Oriflame Sa C 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 purchaser in this industry is low specifically as the buyer has low knowledge about the item. While business like Oriflame Sa C have handled to train suppliers regarding adhesives, the last customer depends on distributors. Roughly 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by three players, it could be stated that the supplier delights in a higher bargaining power compared to the purchaser. The reality stays that the supplier does not have much influence over the purchaser at this point specifically as the buyer does not reveal brand name recognition or rate 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 indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market indicates that the market allows ease of entry. Nevertheless, if we take a look at Oriflame Sa C in particular, the company has dual capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Potential hazards in devices giving market are low which shows the possibility of developing brand name awareness in not only immediate adhesives however likewise in giving adhesives as none of the industry players has managed to place itself in double abilities.
Danger of Substitutes: The risk of substitutes in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Oriflame Sa C 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 given various reasons for not releasing Case Study Help under Oriflame Sa C name, we have a suggested marketing mix for Case Study Help offered listed below if Oriflame Sa C chooses to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional growth capacity of 10.1% which may be a good sufficient 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 offered for usage with SuperBonder.
Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or through direct selling. This rate would not consist of the expense of the 'vari tip' or the 'glumetic idea'. A price below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to purchase the product on his own. This would increase the possibility of influencing mechanics to purchase the product for usage in their day-to-day maintenance tasks.
Oriflame Sa C would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Oriflame Sa C for launching Case Study Help.
Place: A distribution model where Oriflame Sa C straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the distributor would be used by Oriflame Sa C. Because the sales group is already engaged in offering instant adhesives and they do not have competence in offering dispensers, including them in the selling process would be pricey specifically as each sales call expenses roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low advertising budget ought to have been assigned to Case Study Help but the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing plan costing $51816 is suggested for at first introducing the product in the market. The planned ads in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).