WhatsApp 
Phu My Hung Case Study Solution
Phu My Hung Case Study Help
Phu My Hung Case Study Analysis
The following area concentrates on the of marketing for Phu My Hung where the company's consumers, rivals and core proficiencies have assessed in order to validate whether the choice to introduce Case Study Help under Phu My Hung trademark name would be a feasible option or not. We have actually to start with looked at the type of customers that Phu My Hung handle while an evaluation of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Phu My Hung name.
Both the groups use Phu My Hung high efficiency adhesives while the business is not only included in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Phu My Hung compared to that of instantaneous adhesives.
The total market for immediate adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Phu My Hung potential market or consumer groups, we can see that the business offers to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair and revamping business (MRO) and makers handling products made from leather, wood, metal and plastic. This variety in customers recommends that Phu My Hung can target has various choices in terms of segmenting the market for its brand-new product particularly as each of these groups would be requiring the very same kind of product with respective modifications in packaging, amount or need. The client is not price delicate or brand name mindful so releasing a low priced dispenser under Phu My Hung name is not a suggested alternative.
Phu My Hung is not simply a manufacturer of adhesives but delights in market leadership in the immediate adhesive industry. The company has its own knowledgeable and qualified sales force which adds value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.
Core competences are not restricted to adhesive production only as Phu My Hung likewise specializes in making adhesive dispensing devices to assist in making use of its products. This dual production method provides Phu My Hung an edge over competitors given that none of the rivals of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors sells directly to the consumer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Phu My Hung, it is crucial to highlight the company's weak points.
Although the company's sales staff is knowledgeable in training suppliers, the reality stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it must also be kept in mind that the suppliers are showing unwillingness when it comes to offering equipment that needs servicing which increases the obstacles of offering equipment under a particular brand.
If we look at Phu My Hung line of product in adhesive equipment particularly, the company has products aimed at the luxury of the marketplace. If Phu My Hung offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Phu My Hung high-end product line, sales cannibalization would absolutely be impacting Phu My Hung sales profits if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization impacting Phu My Hung 27A Pencil Applicator which is priced at $275. There is another possible risk which might reduce Phu My Hung income if Case Study Help is introduced under the business's brand. The reality that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which gives us 2 extra factors for not launching a low priced product under the business's trademark name.
The competitive environment of Phu My Hung would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low knowledge about the item. While companies like Phu My Hung have handled to train distributors regarding adhesives, the final customer is dependent on distributors. Around 72% of sales are made straight by makers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by three players, it could be said that the provider takes pleasure in a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much influence over the purchaser at this point particularly as the purchaser does not show brand recognition or rate level of sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the real sales, this indicates that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese rivals in the instant adhesive market indicates that the marketplace enables ease of entry. If we look at Phu My Hung in specific, the business has dual capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective hazards in devices 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 gamers has handled to place itself in dual capabilities.
Risk of Substitutes: The danger of alternatives in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Phu My Hung introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered different reasons for not introducing Case Study Help under Phu My Hung name, we have actually a recommended marketing mix for Case Study Help given below if Phu My Hung decides to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 establishments in this segment and a high usage of around 58900 lbs. is being utilized by 36.1 % of the market. This market has an extra development potential of 10.1% which might be a good enough specific niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The product would be sold without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wants to select either of the two accessories or not.
Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance store needs to buy the product on his own.
Phu My Hung would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Phu My Hung for launching Case Study Help.
Place: A distribution design where Phu My Hung directly sends out the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Phu My Hung. Because the sales group is currently engaged in selling instantaneous adhesives and they do not have expertise in selling dispensers, including them in the selling procedure would be costly specifically as each sales call expenses around $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: Although a low marketing budget must have been designated to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended marketing plan costing $51816 is recommended for initially introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in car maintenance shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
