Phu My Hung Case Study Help Checklist

Phu My Hung Case Study Help Checklist

Phu My Hung Case Study Solution
Phu My Hung Case Study Help
Phu My Hung Case Study Analysis

Analyses for Evaluating Phu My Hung decision to launch Case Study Solution

The following section focuses on the of marketing for Phu My Hung where the business's customers, competitors and core competencies have actually assessed in order to justify whether the choice to release Case Study Help under Phu My Hung brand name would be a feasible option or not. We have actually first of all taken a look at the kind of clients that Phu My Hung deals in while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Phu My Hung name.
Phu My Hung Case Study Solution

Customer Analysis

Both the groups use Phu My Hung high efficiency adhesives while the business is not only included in the production of these adhesives but also markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Phu My Hung compared to that of immediate adhesives.

The overall market for instantaneous adhesives is roughly 890,000 in the US 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 prospective market or consumer groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair work and revamping business (MRO) and makers dealing in items made from leather, metal, plastic and wood. This diversity in clients recommends that Phu My Hung can target has numerous alternatives in terms of segmenting the marketplace for its new product specifically as each of these groups would be needing the same kind of item with particular changes in amount, need or product packaging. However, the client is not cost delicate or brand name mindful so launching a low priced dispenser under Phu My Hung name is not a suggested alternative.

Company Analysis

Phu My Hung is not simply a producer of adhesives but delights in market leadership in the instantaneous adhesive industry. The business has its own experienced and qualified sales force which includes value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Phu My Hung believes in special circulation as shown by the reality that it has actually chosen to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for expanding reach via distributors. The company's reach is not limited to North America just as it also enjoys global sales. With 1400 outlets spread all across The United States and Canada, Phu My Hung has its in-house production plants rather than using out-sourcing as the favored method.

Core competences are not restricted to adhesive production only as Phu My Hung likewise focuses on making adhesive dispensing equipment to facilitate using its items. This dual production technique offers Phu My Hung an edge over competitors since none of the competitors of giving devices makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the customer either and utilizes suppliers for connecting to customers. While we are looking at the strengths of Phu My Hung, it is important to highlight the business's weaknesses.

Although the company's sales staff is competent in training distributors, the fact stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It must likewise be kept in mind that the distributors are showing reluctance when it comes to offering equipment that needs servicing which increases the difficulties of selling equipment under a specific brand name.

If we take a look at Phu My Hung line of product in adhesive devices particularly, the company has products aimed at the luxury of the marketplace. The possibility of sales cannibalization exists if Phu My Hung offers Case Study Help under the exact same portfolio. Provided the reality 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 earnings if the adhesive equipment is offered under the business's brand.

We can see sales cannibalization affecting Phu My Hung 27A Pencil Applicator which is priced at $275. There is another possible danger which could lower Phu My Hung revenue if Case Study Help is launched under the company's brand. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great 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 instant adhesive.

Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or price awareness which provides us 2 additional factors for not introducing a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Phu My Hung would be studied via 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 presence of fragmented sections with Phu My Hung enjoying management and a combined market share of 75% with 2 other market gamers, Eastman and Permabond. While industry rivalry in between these players could be called 'intense' as the customer is not brand conscious and each of these players has prominence in terms of market share, the reality still remains that the market is not filled and still has numerous market sectors which can be targeted as possible specific niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for instant adhesives offers development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low understanding about the product. While companies like Phu My Hung have actually managed to train distributors concerning adhesives, the final customer is dependent on distributors. Approximately 72% of sales are made directly by producers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by three players, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the fact remains that the provider does not have much influence over the purchaser at this moment particularly as the buyer does disappoint brand recognition or price level of sensitivity. This indicates that the supplier has the higher power when it pertains to the adhesive market while the buyer and the producer do not have a significant 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 immediate adhesive market indicates that the market permits ease of entry. However, if we look at Phu My Hung in particular, the business has double abilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Possible dangers in equipment giving market are low which shows the possibility of creating brand name awareness in not only instantaneous adhesives however likewise in giving adhesives as none of the industry gamers has actually handled to position itself in dual capabilities.

Hazard of Substitutes: The hazard of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Phu My Hung 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

Phu My Hung Case Study Help

Despite the fact that our 3C analysis has given various reasons for not introducing Case Study Help under Phu My Hung name, we have a suggested marketing mix for Case Study Help provided listed below if Phu My Hung chooses to proceed with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra growth potential of 10.1% which may be an excellent adequate specific niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.

Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep shop needs to acquire the item on his own.

Phu My Hung would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Phu My Hung for releasing Case Study Help.

Place: A circulation model where Phu My Hung straight sends the item to the local distributor and keeps a 10% drop shipment allowance for the distributor would be used by Phu My Hung. Since the sales team is already engaged in offering instant adhesives and they do not have know-how in offering dispensers, including them in the selling procedure would be expensive especially as each sales call costs roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: A low marketing budget should have been designated 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 sustained for production, the suggested advertising plan costing $51816 is recommended for initially presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in car upkeep shops. (Suggested 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
Phu My Hung Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has been talked about for Case Study Help, the fact still remains that the product would not match Phu My Hung line of product. We take a look at appendix 2, we can see how the total gross success for the two models is expected to be around $49377 if 250 systems of each model are produced each year as per the plan. However, the preliminary planned advertising is roughly $52000 each year which would be putting a strain on the company's resources leaving Phu My Hung with an unfavorable net income if the costs are assigned to Case Study Help only.

The fact that Phu My Hung has actually currently sustained an initial financial investment of $48000 in the form of capital cost and model development indicates that the profits from Case Study Help is not enough to carry out the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable alternative particularly of it is affecting the sale of the business's income creating designs.