Pinewood Mobile Homes Inc Case Study Help Checklist

Pinewood Mobile Homes Inc Case Study Help Checklist

Pinewood Mobile Homes Inc Case Study Solution
Pinewood Mobile Homes Inc Case Study Help
Pinewood Mobile Homes Inc Case Study Analysis

Analyses for Evaluating Pinewood Mobile Homes Inc decision to launch Case Study Solution

The following area concentrates on the of marketing for Pinewood Mobile Homes Inc where the company's customers, rivals and core proficiencies have actually evaluated in order to justify whether the decision to release Case Study Help under Pinewood Mobile Homes Inc brand would be a possible choice or not. We have actually firstly looked at the type of clients that Pinewood Mobile Homes Inc handle while an assessment 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 Pinewood Mobile Homes Inc name.
Pinewood Mobile Homes Inc Case Study Solution

Customer Analysis

Both the groups utilize Pinewood Mobile Homes Inc high performance adhesives while the company is not only involved in the production of these adhesives however 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 capacity for Pinewood Mobile Homes Inc compared to that of instantaneous adhesives.

The overall market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been determined earlier.If we look at a breakdown of Pinewood Mobile Homes Inc prospective market or client groups, we can see that the business offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and makers dealing in items made of leather, wood, plastic and metal. This variety in customers suggests that Pinewood Mobile Homes Inc can target has different alternatives in terms of segmenting the market for its brand-new product especially as each of these groups would be needing the exact same kind of item with particular changes in demand, product packaging or amount. However, the consumer is not cost delicate or brand name conscious so introducing a low priced dispenser under Pinewood Mobile Homes Inc name is not a suggested choice.

Company Analysis

Pinewood Mobile Homes Inc is not simply a manufacturer of adhesives however enjoys market management in the instant adhesive industry. The business has its own knowledgeable and competent sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Pinewood Mobile Homes Inc believes in unique distribution as suggested by the truth that it has chosen to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach by means of suppliers. The company's reach is not limited to North America just as it also delights in international sales. With 1400 outlets spread all across The United States and Canada, Pinewood Mobile Homes Inc has its in-house production plants rather than utilizing out-sourcing as the favored strategy.

Core skills are not restricted to adhesive production only as Pinewood Mobile Homes Inc also specializes in making adhesive dispensing equipment to facilitate the use of its products. This double production technique provides Pinewood Mobile Homes Inc an edge over rivals because none of the rivals of dispensing devices makes instantaneous adhesives. In addition, none of these competitors offers straight to the consumer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Pinewood Mobile Homes Inc, it is essential to highlight the business's weaknesses too.

Although the company's sales personnel is knowledgeable in training distributors, the truth stays that the sales group is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It must likewise be kept in mind that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the difficulties of offering devices under a specific brand name.

If we look at Pinewood Mobile Homes Inc line of product in adhesive devices especially, the company has items aimed at the high end of the marketplace. The possibility of sales cannibalization exists if Pinewood Mobile Homes Inc sells Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Pinewood Mobile Homes Inc high-end product line, sales cannibalization would definitely be affecting Pinewood Mobile Homes Inc sales revenue if the adhesive equipment is offered under the company's brand.

We can see sales cannibalization affecting Pinewood Mobile Homes Inc 27A Pencil Applicator which is priced at $275. There is another possible hazard which could reduce Pinewood Mobile Homes Inc income if Case Study Help is introduced under the business's brand name. The reality that $175000 has actually been invested 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.

Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or rate consciousness which provides us 2 extra factors for not launching a low priced item under the business's brand name.

Competitor Analysis

The competitive environment of Pinewood Mobile Homes Inc would be studied by means of Porter's five 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 growth potential due to the presence of fragmented sections with Pinewood Mobile Homes Inc delighting in leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market rivalry in between these players could be called 'intense' as the customer is not brand name conscious and each of these gamers has prominence in regards to market share, the reality still remains that the market is not saturated and still has numerous market sections which can be targeted as prospective niche markets even when launching an adhesive. However, we can even explain the fact that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the market for immediate adhesives uses development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the buyer has low understanding about the item. While companies like Pinewood Mobile Homes Inc have managed to train suppliers concerning adhesives, the last consumer is dependent on distributors. Around 72% of sales are made straight by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by three players, it could be said that the provider delights in a greater bargaining power compared to the purchaser. However, the truth stays that the provider does not have much impact over the purchaser at this moment particularly as the buyer does disappoint brand recognition or rate sensitivity. This suggests that the distributor has the higher power when it concerns 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 loyalty and the ease of entry shown by foreign Japanese competitors in the instant adhesive market indicates that the market enables ease of entry. If we look at Pinewood Mobile Homes Inc in particular, the company has dual capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Prospective hazards in devices giving industry are low which shows the possibility of creating brand name awareness in not only immediate adhesives but also in giving adhesives as none of the industry players has actually managed to place itself in double abilities.

Hazard of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact stays that if Pinewood Mobile Homes Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).

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

Pinewood Mobile Homes Inc Case Study Help

Despite the fact that our 3C analysis has given numerous reasons for not introducing Case Study Help under Pinewood Mobile Homes Inc name, we have actually a recommended marketing mix for Case Study Help offered below if Pinewood Mobile Homes Inc chooses to go ahead with the launch.

Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a variety of factors. There are presently 89257 facilities in this sector and a high usage of around 58900 pounds. is being used by 36.1 % of the market. This market has an additional development potential of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being cost usage with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can choose whether he wants to select either of the two devices or not.

Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. A rate listed below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance store needs to purchase the item on his own.

Pinewood Mobile Homes Inc would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Pinewood Mobile Homes Inc for introducing Case Study Help.

Place: A distribution design where Pinewood Mobile Homes Inc straight sends the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Pinewood Mobile Homes Inc. Considering that the sales team is already participated in offering instant adhesives and they do not have competence in offering dispensers, including them in the selling procedure would be pricey especially as each sales call costs roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: A low marketing budget plan ought to have been assigned to Case Study Help but the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended marketing strategy costing $51816 is suggested for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile upkeep stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Pinewood Mobile Homes Inc Case Study Analysis

A recommended plan of action in the form of a marketing mix has been discussed for Case Study Help, the fact still stays that the product would not match Pinewood Mobile Homes Inc item line. 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 design are manufactured per year according to the strategy. The preliminary prepared advertising is roughly $52000 per year which would be putting a strain on the company's resources leaving Pinewood Mobile Homes Inc with an unfavorable net earnings if the expenses are assigned to Case Study Help just.

The truth that Pinewood Mobile Homes Inc has actually currently incurred a preliminary investment of $48000 in the form of capital cost and model development suggests that the revenue from Case Study Help is inadequate to carry out the threat of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a more suitable alternative specifically of it is affecting the sale of the business's revenue creating models.