Phelps Dodge Corp Case Study Help Checklist

Phelps Dodge Corp Case Study Help Checklist

Phelps Dodge Corp Case Study Solution
Phelps Dodge Corp Case Study Help
Phelps Dodge Corp Case Study Analysis

Analyses for Evaluating Phelps Dodge Corp decision to launch Case Study Solution

The following area concentrates on the of marketing for Phelps Dodge Corp where the business's customers, rivals and core proficiencies have actually evaluated in order to justify whether the decision to launch Case Study Help under Phelps Dodge Corp trademark name would be a feasible choice or not. We have actually to start with taken a look at the type of customers that Phelps Dodge Corp handle while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Phelps Dodge Corp name.
Phelps Dodge Corp Case Study Solution

Customer Analysis

Phelps Dodge Corp clients can be segmented into 2 groups, final customers and industrial consumers. Both the groups utilize Phelps Dodge Corp high performance adhesives while the company is not just associated with the production of these adhesives but likewise markets them to these consumer groups. There are two kinds of products that are being sold to these prospective markets; instantaneous adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower capacity for Phelps Dodge Corp compared to that of immediate adhesives.

The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we look at a breakdown of Phelps Dodge Corp possible market or customer groups, we can see that the company sells to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair work and upgrading business (MRO) and makers dealing in products made from leather, wood, metal and plastic. This diversity in consumers recommends that Phelps Dodge Corp can target has numerous options in terms of segmenting the market for its brand-new item specifically as each of these groups would be needing the exact same kind of item with respective changes in packaging, need or amount. The customer is not cost sensitive or brand mindful so releasing a low priced dispenser under Phelps Dodge Corp name is not a recommended alternative.

Company Analysis

Phelps Dodge Corp is not simply a manufacturer of adhesives however takes pleasure in market leadership in the instant adhesive market. The company has its own experienced and certified sales force which adds worth to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives. Phelps Dodge Corp believes in unique circulation as suggested by the truth that it has selected to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for expanding reach through distributors. The business's reach is not restricted to The United States and Canada only as it also takes pleasure in international sales. With 1400 outlets spread all throughout The United States and Canada, Phelps Dodge Corp has its internal production plants rather than using out-sourcing as the preferred method.

Core skills are not limited to adhesive production just as Phelps Dodge Corp likewise concentrates on making adhesive giving devices to help with using its products. This double production method provides Phelps Dodge Corp an edge over competitors given that none of the competitors of giving devices makes immediate adhesives. In addition, none of these competitors sells directly to the consumer either and uses distributors for connecting to consumers. While we are looking at the strengths of Phelps Dodge Corp, it is essential to highlight the business's weaknesses.

Although the company's sales personnel is skilled in training suppliers, the fact stays that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. Nevertheless, it ought to also be noted that the distributors are revealing unwillingness when it pertains to selling devices that requires maintenance which increases the difficulties of selling equipment under a specific trademark name.

If we look at Phelps Dodge Corp line of product in adhesive equipment particularly, the business has actually items focused on the luxury of the market. The possibility of sales cannibalization exists if Phelps Dodge Corp sells Case Study Help under the same portfolio. Given the truth that Case Study Help is priced lower than Phelps Dodge Corp high-end product line, sales cannibalization would absolutely be impacting Phelps Dodge Corp sales revenue if the adhesive equipment is sold under the business's trademark name.

We can see sales cannibalization impacting Phelps Dodge Corp 27A Pencil Applicator which is priced at $275. There is another possible threat which might reduce Phelps Dodge Corp revenue if Case Study Help is released under the company's trademark name. The fact that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for introducing 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.

In addition, if we look at the marketplace in general, the adhesives market does not show brand orientation or rate awareness which provides us 2 additional reasons for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Phelps Dodge Corp would be studied through Porter's 5 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 development potential due to the presence of fragmented sectors with Phelps Dodge Corp enjoying management and a combined market share of 75% with two other industry players, Eastman and Permabond. While market rivalry in between these players could be called 'intense' as the customer is not brand name mindful and each of these players has prominence in regards to market share, the truth still remains that the industry is not saturated and still has a number of market sections which can be targeted as prospective specific niche markets even when launching an adhesive. However, we can even point out the reality that sales cannibalization may be causing industry rivalry in the adhesive dispenser market while the marketplace for instantaneous adhesives uses development capacity.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the purchaser has low understanding about the product. While business like Phelps Dodge Corp have actually managed to train distributors regarding adhesives, the final customer depends on distributors. Around 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by 3 players, it could be stated that the supplier enjoys a greater bargaining power compared to the buyer. The truth stays that the provider does not have much influence over the buyer at this point especially as the purchaser does not reveal brand acknowledgment or rate level of sensitivity. This indicates that the distributor has the higher power when it concerns the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.

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 instant adhesive market suggests that the marketplace permits ease of entry. If we look at Phelps Dodge Corp in specific, the business has double abilities in terms of being a producer of immediate adhesives and adhesive dispensers. Possible hazards in equipment dispensing industry are low which reveals the possibility of creating brand name awareness in not only instantaneous adhesives however also in dispensing adhesives as none of the market gamers has handled to place itself in double abilities.

Hazard of Substitutes: The hazard of substitutes in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Phelps Dodge Corp introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).

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

Phelps Dodge Corp Case Study Help

Despite the fact that our 3C analysis has given various reasons for not introducing Case Study Help under Phelps Dodge Corp name, we have a suggested marketing mix for Case Study Help offered listed below if Phelps Dodge Corp decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of factors. This market has an additional development capacity of 10.1% which may be a great sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder.

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

Phelps Dodge Corp would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Phelps Dodge Corp for introducing Case Study Help.

Place: A circulation design where Phelps Dodge Corp straight sends the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Phelps Dodge Corp. Considering that the sales team is already taken part in selling instant adhesives and they do not have knowledge in selling dispensers, involving them in the selling process would be expensive specifically as each sales call costs around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: A low marketing budget plan needs to have been assigned to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is recommended for at first introducing the item in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Phelps Dodge Corp Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the reality still stays that the item would not complement Phelps Dodge Corp line of product. We take a look at appendix 2, we can see how the overall gross success for the two models is anticipated to be approximately $49377 if 250 units of each model are produced annually according to the plan. However, the initial planned advertising is around $52000 annually which would be putting a pressure on the company's resources leaving Phelps Dodge Corp with an unfavorable net income if the expenses are allocated to Case Study Help just.

The fact that Phelps Dodge Corp has actually currently incurred a preliminary financial investment of $48000 in the form of capital cost and prototype development shows that the income from Case Study Help is inadequate to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a preferable choice especially of it is impacting the sale of the business's income producing models.