The following section focuses on the of marketing for Part King Inc where the business's consumers, competitors and core proficiencies have evaluated in order to justify whether the choice to introduce Case Study Help under Part King Inc brand would be a possible option or not. We have to start with taken a look at the type of clients that Part King Inc handle while an evaluation of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Part King Inc name.
Both the groups use Part King Inc high efficiency adhesives while the company is not just involved in the production of these adhesives however also markets them to these customer groups. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower potential for Part King Inc compared to that of instant adhesives.
The total market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Part King Inc potential market or customer groups, we can see that the business offers to OEMs (Original Devices Makers), Do-it-Yourself clients, repair and overhauling companies (MRO) and manufacturers dealing in products made from leather, wood, plastic and metal. This variety in customers suggests that Part King Inc can target has different choices in terms of segmenting the market for its new product especially as each of these groups would be requiring the very same kind of product with particular modifications in need, amount or product packaging. However, the consumer is not price delicate or brand name conscious so launching a low priced dispenser under Part King Inc name is not an advised alternative.
Part King Inc is not just a producer of adhesives however delights in market leadership in the immediate adhesive market. The business has its own knowledgeable and competent sales force which adds value to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.
Core competences are not limited to adhesive production only as Part King Inc also specializes in making adhesive dispensing equipment to facilitate using its products. This dual production technique provides Part King Inc an edge over competitors because none of the rivals of dispensing equipment makes immediate adhesives. In addition, none of these rivals sells directly to the customer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Part King Inc, it is essential to highlight the company's weaknesses.
The company's sales staff is knowledgeable in training suppliers, 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. Nevertheless, it must also be noted that the distributors are revealing reluctance when it pertains to offering devices that needs servicing which increases the obstacles of selling devices under a particular brand.
If we look at Part King Inc line of product in adhesive equipment especially, the company has actually items aimed at the high-end of the marketplace. The possibility of sales cannibalization exists if Part King Inc offers Case Study Help under the very same portfolio. Provided the reality that Case Study Help is priced lower than Part King Inc high-end product line, sales cannibalization would certainly be affecting Part King Inc sales revenue if the adhesive devices is sold under the company's trademark name.
We can see sales cannibalization impacting Part King Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could reduce Part King Inc income. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a great 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 instantaneous adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which gives us 2 extra reasons for not launching a low priced product under the company's trademark name.
The competitive environment of Part King Inc would be studied by means of 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 particularly as the purchaser has low understanding about the product. While business like Part King Inc have managed to train suppliers concerning adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made directly by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the purchaser. Nevertheless, the truth stays that the supplier does not have much impact over the buyer at this point especially as the purchaser does disappoint brand name acknowledgment or cost level of sensitivity. This suggests that the distributor has the greater power when it concerns the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the market enables ease of entry. If we look at Part King Inc in specific, the business has dual abilities in terms of being a producer of immediate adhesives and adhesive dispensers. Potential threats in equipment giving market are low which shows the possibility of developing brand awareness in not just instant adhesives but likewise in dispensing adhesives as none of the industry players has handled to position itself in double capabilities.
Risk of Substitutes: The threat of replacements in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth remains that if Part King Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided various reasons for not releasing Case Study Help under Part King Inc name, we have actually a suggested marketing mix for Case Study Help provided below if Part King Inc chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 establishments in this section and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which might be a good enough niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can choose whether he wishes to opt for either of the two accessories or not.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. This rate would not include the cost of the 'vari pointer' or the 'glumetic suggestion'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store needs to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for usage in their daily upkeep tasks.
Part King Inc would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Part King Inc for releasing Case Study Help.
Place: A distribution model where Part King Inc straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Part King Inc. Considering that the sales group is currently engaged in offering instant adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be pricey specifically as each sales call expenses around $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low advertising spending plan needs to have been assigned to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is recommended for at first introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle upkeep shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).