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

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

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

Customer Analysis

Both the groups use Phelps Dodge Corp high performance adhesives while the business is not only included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the consumers of instant adhesives for this analysis given that the market for the latter has a lower potential for Phelps Dodge Corp compared to that of immediate adhesives.

The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been identified earlier.If we look at a breakdown of Phelps Dodge Corp possible market or consumer groups, we can see that the company offers to OEMs (Original Devices Producers), Do-it-Yourself clients, repair and overhauling companies (MRO) and makers handling items made from leather, wood, plastic and metal. This diversity in clients suggests that Phelps Dodge Corp can target has different choices in terms of segmenting the market for its new product specifically as each of these groups would be requiring the same type of item with respective modifications in quantity, demand or packaging. Nevertheless, the client is not cost sensitive or brand conscious so releasing a low priced dispenser under Phelps Dodge Corp name is not a suggested option.

Company Analysis

Phelps Dodge Corp is not just a producer of adhesives but enjoys market management in the instantaneous adhesive market. The business has its own experienced and certified sales force which includes worth to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.

Core competences are not restricted to adhesive production just as Phelps Dodge Corp also specializes in making adhesive giving devices to help with the use of its products. This double production method provides Phelps Dodge Corp an edge over rivals given that none of the rivals of dispensing equipment makes instant adhesives. Furthermore, none of these competitors sells straight to the customer either and uses suppliers for reaching out to customers. While we are taking a look at the strengths of Phelps Dodge Corp, it is essential to highlight the business's weak points as well.

Although the company's sales personnel is skilled in training distributors, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It must also be noted that the distributors are revealing hesitation when it comes to offering equipment that needs servicing which increases the obstacles of selling equipment under a specific brand name.

The business has actually products aimed at the high end of the market if we look at Phelps Dodge Corp product line in adhesive equipment especially. If Phelps Dodge Corp sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Phelps Dodge Corp high-end line of product, sales cannibalization would certainly be impacting Phelps Dodge Corp sales revenue if the adhesive equipment is offered under the business's brand name.

We can see sales cannibalization affecting Phelps Dodge Corp 27A Pencil Applicator which is priced at $275. There is another possible risk which might decrease Phelps Dodge Corp revenue if Case Study Help is released under the business's brand. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a great 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 instant adhesive.

In addition, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or rate awareness which offers us two additional factors for not launching a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Phelps Dodge Corp would be studied by means of Porter's 5 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 development capacity due to the existence of fragmented sections with Phelps Dodge Corp delighting in management and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While market competition in between these players could be called 'intense' as the customer is not brand name conscious and each of these gamers has prominence in terms of market share, the truth still stays that the market is not saturated and still has several market sectors which can be targeted as possible niche markets even when introducing an adhesive. Nevertheless, we can even point out the truth that sales cannibalization may be resulting in market competition in the adhesive dispenser market while the market for instant adhesives uses growth potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low understanding about the item. While business like Phelps Dodge Corp have actually managed to train distributors relating to adhesives, the final consumer is dependent on suppliers. Approximately 72% of sales are made directly by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by three gamers, it could be stated that the supplier takes pleasure in a greater bargaining power compared to the purchaser. However, the truth stays that the provider does not have much influence over the purchaser at this point especially as the buyer does disappoint brand acknowledgment or price level of sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the actual sales, this indicates that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the market permits ease of entry. Nevertheless, if we look at Phelps Dodge Corp in particular, the company has dual capabilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Prospective dangers in devices giving market 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 players has actually handled to position itself in double capabilities.

Threat of Substitutes: The danger of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Phelps Dodge Corp introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (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 actually given numerous reasons for not launching Case Study Help under Phelps Dodge Corp name, we have actually a suggested marketing mix for Case Study Help provided below if Phelps Dodge Corp chooses to proceed with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of factors. This market has an extra development capacity of 10.1% which might be a good adequate specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being offered for use 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 suppliers or by means of direct selling. This cost would not include the cost of the 'vari suggestion' or the 'glumetic suggestion'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store needs to acquire the item on his own. This would increase the possibility of influencing mechanics to buy the item for usage in their daily upkeep jobs.

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

Place: A distribution model where Phelps Dodge Corp straight sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Phelps Dodge Corp. Considering that the sales team is currently taken part in offering immediate adhesives and they do not have knowledge in selling dispensers, including them in the selling procedure would be expensive especially as each sales call expenses around $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: Although a low marketing budget ought to have been appointed to Case Study Help however the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is recommended for initially presenting the item in the market. The planned ads in magazines would be targeted at mechanics in lorry upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

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

A suggested plan of action in the kind of a marketing mix has actually been gone over for Case Study Help, the truth still remains that the product would not match Phelps Dodge Corp item line. We take a look at appendix 2, we can see how the overall gross success for the two designs is anticipated to be around $49377 if 250 units of each design are made each year according to the plan. Nevertheless, the initial prepared marketing is approximately $52000 annually which would be putting a strain on the business's resources leaving Phelps Dodge Corp with a negative net income if the costs are assigned to Case Study Help just.

The fact that Phelps Dodge Corp has already sustained a preliminary investment of $48000 in the form of capital cost and prototype development shows that the revenue from Case Study Help is insufficient to carry out the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of demand is not a preferable choice particularly of it is affecting the sale of the company's income creating models.

Executive Summary Porters Five Forces Analysis Pestel Analysis Financial Analysis
Generic Strategy Vrine Analysis