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Philip Morris Companies Inc B Case Study Solution
Philip Morris Companies Inc B Case Study Help
Philip Morris Companies Inc B Case Study Analysis
The following section concentrates on the of marketing for Philip Morris Companies Inc B where the business's consumers, competitors and core competencies have actually assessed in order to justify whether the choice to introduce Case Study Help under Philip Morris Companies Inc B brand would be a feasible choice or not. We have first of all taken a look at the type of customers that Philip Morris Companies Inc B handle while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Philip Morris Companies Inc B name.
Both the groups use Philip Morris Companies Inc B high efficiency adhesives while the company is not just involved in the production of these adhesives however also markets them to these client groups. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower capacity for Philip Morris Companies Inc B compared to that of immediate adhesives.
The overall 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 take a look at a breakdown of Philip Morris Companies Inc B possible market or customer groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair work and revamping business (MRO) and manufacturers handling products made of leather, plastic, wood and metal. This diversity in clients suggests that Philip Morris Companies Inc B can target has various options in terms of segmenting the market for its new item specifically as each of these groups would be requiring the very same kind of product with respective modifications in packaging, amount or demand. The customer is not price delicate or brand name mindful so launching a low priced dispenser under Philip Morris Companies Inc B name is not a suggested alternative.
Philip Morris Companies Inc B is not just a producer of adhesives however takes pleasure in market leadership in the instantaneous adhesive market. The company has its own knowledgeable and competent sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.
Core proficiencies are not limited to adhesive manufacturing only as Philip Morris Companies Inc B likewise specializes in making adhesive dispensing devices to assist in using its products. This dual production technique offers Philip Morris Companies Inc B an edge over rivals considering that none of the competitors of dispensing devices makes instant adhesives. In addition, none of these rivals sells directly to the customer either and utilizes suppliers for connecting to consumers. While we are looking at the strengths of Philip Morris Companies Inc B, it is essential to highlight the business's weaknesses.
The business's sales personnel is experienced in training distributors, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it ought to likewise be kept in mind that the suppliers are revealing unwillingness when it comes to selling equipment that needs servicing which increases the difficulties of selling equipment under a particular brand name.
If we take a look at Philip Morris Companies Inc B product line in adhesive devices especially, the company has actually items aimed at the luxury of the marketplace. The possibility of sales cannibalization exists if Philip Morris Companies Inc B offers Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Philip Morris Companies Inc B high-end line of product, sales cannibalization would certainly be impacting Philip Morris Companies Inc B sales profits if the adhesive devices is offered under the business's brand.
We can see sales cannibalization affecting Philip Morris Companies Inc B 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible hazard which could reduce Philip Morris Companies Inc B earnings. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for introducing 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.
Additionally, if we take a look at the market in general, the adhesives market does not show brand orientation or cost awareness which offers us two additional reasons for not launching a low priced product under the company's trademark name.
The competitive environment of Philip Morris Companies Inc B would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the product. While companies like Philip Morris Companies Inc B have actually handled to train distributors regarding adhesives, the last consumer depends on distributors. Approximately 72% of sales are made straight by manufacturers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 players, it could be stated that the provider delights in a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the provider does not have much influence over the purchaser at this moment specifically as the buyer does not show brand acknowledgment or cost level of sensitivity. This shows that the distributor has the greater power when it comes to the adhesive market while the producer and the purchaser do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the marketplace allows ease of entry. However, if we take a look at Philip Morris Companies Inc B in particular, the company has dual abilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Prospective risks in equipment giving industry are low which reveals the possibility of developing brand awareness in not only instant adhesives however also in dispensing adhesives as none of the market players has managed to place itself in double abilities.
Danger of Substitutes: The threat of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Philip Morris Companies Inc B presented 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 actually given different factors for not introducing Case Study Help under Philip Morris Companies Inc B name, we have a recommended marketing mix for Case Study Help offered below if Philip Morris Companies Inc B chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of reasons. This market has an additional development capacity of 10.1% which might be a great adequate niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being offered for use with SuperBonder.
Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance shop needs to buy the item on his own.
Philip Morris Companies Inc B would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Philip Morris Companies Inc B for releasing Case Study Help.
Place: A circulation design where Philip Morris Companies Inc B straight sends out the product to the local distributor and keeps a 10% drop shipment allowance for the supplier would be used by Philip Morris Companies Inc B. Since the sales team is already taken part in selling instantaneous adhesives and they do not have competence in selling dispensers, including them in the selling procedure would be pricey specifically as each sales call costs roughly $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low marketing budget ought to have been assigned to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is advised for initially introducing the product in the market. The planned ads in magazines would be targeted at mechanics in automobile upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
