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Patten Corp Case Study Help Checklist

Patten Corp Case Study Help Checklist

Patten Corp Case Study Solution
Patten Corp Case Study Help
Patten Corp Case Study Analysis



Analyses for Evaluating Patten Corp decision to launch Case Study Solution


The following section concentrates on the of marketing for Patten Corp where the company's clients, rivals and core competencies have actually assessed in order to justify whether the decision to introduce Case Study Help under Patten Corp trademark name would be a practical choice or not. We have firstly taken a look at the kind of customers that Patten Corp deals in while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Patten Corp name.
Patten Corp Case Study Solution

Customer Analysis

Both the groups use Patten Corp high efficiency adhesives while the business is not only included in the production of these adhesives however also markets them to these client groups. We would be focusing on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Patten Corp compared to that of instant adhesives.

The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Patten Corp prospective market or client groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair work and overhauling business (MRO) and producers dealing in products made of leather, plastic, metal and wood. This diversity in clients suggests that Patten Corp can target has different alternatives in terms of segmenting the marketplace for its new product particularly as each of these groups would be requiring the same type of product with particular modifications in amount, packaging or need. The client is not price sensitive or brand name mindful so releasing a low priced dispenser under Patten Corp name is not an advised option.

Company Analysis

Patten Corp is not simply a manufacturer of adhesives but enjoys market management in the immediate adhesive industry. The company has its own knowledgeable and certified sales force which includes worth to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.

Core proficiencies are not restricted to adhesive production only as Patten Corp also specializes in making adhesive giving equipment to facilitate the use of its items. This double production technique offers Patten Corp an edge over competitors considering that none of the competitors of giving devices makes instant adhesives. Furthermore, none of these rivals sells straight to the consumer either and uses suppliers for reaching out to customers. While we are taking a look at the strengths of Patten Corp, it is necessary to highlight the company's weaknesses too.

The business's sales staff is proficient in training suppliers, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It should also be noted that the distributors are showing hesitation when it comes to offering devices that needs servicing which increases the obstacles of selling devices under a specific brand name.

The company has actually products intended at the high end of the market if we look at Patten Corp product line in adhesive equipment particularly. If Patten Corp offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Patten Corp high-end line of product, sales cannibalization would certainly be affecting Patten Corp sales earnings if the adhesive equipment is offered under the company's brand name.

We can see sales cannibalization affecting Patten Corp 27A Pencil Applicator which is priced at $275. There is another possible hazard which might decrease Patten Corp income if Case Study Help is introduced under the company's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for introducing 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.

Additionally, if we look at the marketplace in general, the adhesives market does not show brand orientation or rate consciousness which offers us two extra factors for not launching a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Patten Corp would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sectors with Patten Corp delighting in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While market rivalry between these players could be called 'extreme' as the customer is not brand conscious and each of these players has prominence in terms of market share, the truth still remains that the market is not saturated and still has several market segments which can be targeted as possible niche markets even when launching an adhesive. We can even point out the fact that sales cannibalization may be leading to market competition in the adhesive dispenser market while the market for instantaneous adhesives uses development capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the purchaser has low knowledge about the item. While companies like Patten Corp have actually managed to train suppliers regarding adhesives, the last customer is dependent on distributors. Roughly 72% of sales are made directly by manufacturers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 players, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the buyer. The reality stays that the provider does not have much influence over the buyer at this point specifically as the purchaser does not show brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a major control over the actual sales, this indicates that the supplier has the greater power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market suggests that the market enables ease of entry. However, if we take a look at Patten Corp in particular, the business has double capabilities in regards to being a manufacturer of instantaneous adhesives and adhesive dispensers. Prospective dangers in devices giving market are low which shows the possibility of developing brand awareness in not only instantaneous adhesives however likewise in giving adhesives as none of the industry gamers has managed to position itself in double capabilities.

Hazard of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Patten Corp presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).


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

Patten Corp Case Study Help


Despite the fact that our 3C analysis has offered numerous factors for not launching Case Study Help under Patten Corp name, we have actually a suggested marketing mix for Case Study Help offered below if Patten Corp chooses to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra growth capacity of 10.1% which might be an excellent sufficient niche market sector for Case Study Help. Not only would a portable dispenser deal 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 offered for usage with SuperBonder.

Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or through direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance shop needs to acquire the product on his own.

Patten Corp would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Patten Corp for launching Case Study Help.

Place: A circulation model where Patten Corp directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Patten Corp. Because the sales group is already taken part in selling instantaneous adhesives and they do not have know-how in selling dispensers, involving them in the selling procedure would be pricey specifically as each sales call expenses approximately $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: A low marketing budget plan should have been appointed to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended advertising strategy costing $51816 is advised for initially introducing the item in the market. The prepared ads in magazines would be targeted at mechanics in car maintenance stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Patten Corp Case Study Analysis

Although a suggested strategy in the form of a marketing mix has actually been talked about for Case Study Help, the truth still stays that the product would not complement Patten Corp line of product. We have a look at appendix 2, we can see how the overall gross success for the two models is anticipated to be around $49377 if 250 units of each design are produced annually as per the plan. However, the initial planned advertising is around $52000 each year which would be putting a stress on the company's resources leaving Patten Corp with a negative earnings if the costs are assigned to Case Study Help just.

The truth that Patten Corp has currently incurred a preliminary investment of $48000 in the form of capital cost and model development suggests that the income from Case Study Help is insufficient to carry out the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable choice especially of it is impacting the sale of the company's income generating models.



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