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Pinewood Mobile Homes Inc Case Study Solution
Pinewood Mobile Homes Inc Case Study Help
Pinewood Mobile Homes Inc Case Study Analysis
The following area concentrates on the of marketing for Pinewood Mobile Homes Inc where the business's clients, competitors and core proficiencies have actually examined in order to justify whether the choice to release Case Study Help under Pinewood Mobile Homes Inc brand would be a possible choice or not. We have actually to start with taken a look at the type of customers that Pinewood Mobile Homes Inc 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 introducing Case Study Help under Pinewood Mobile Homes Inc name.
Both the groups utilize Pinewood Mobile Homes Inc high performance adhesives while the business is not only included in the production of these adhesives however likewise markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis because the market for the latter has a lower potential for Pinewood Mobile Homes Inc compared to that of instant adhesives.
The overall market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Pinewood Mobile Homes Inc prospective market or consumer groups, we can see that the business sells to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair and revamping companies (MRO) and manufacturers handling items made from leather, plastic, wood and metal. This diversity in clients suggests that Pinewood Mobile Homes Inc can target has various alternatives in terms of segmenting the market for its new item particularly as each of these groups would be requiring the same type of product with respective modifications in need, quantity or packaging. However, the consumer is not rate delicate or brand mindful so launching a low priced dispenser under Pinewood Mobile Homes Inc name is not a recommended option.
Pinewood Mobile Homes Inc is not just a manufacturer of adhesives but enjoys market management in the instant adhesive market. The company has its own skilled and qualified sales force which adds worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.
Core skills are not restricted to adhesive production just as Pinewood Mobile Homes Inc likewise specializes in making adhesive giving equipment to help with the use of its items. This dual production technique provides Pinewood Mobile Homes Inc an edge over competitors because none of the rivals of dispensing equipment makes immediate adhesives. Additionally, none of these competitors offers directly to the customer either and utilizes distributors for connecting to consumers. While we are taking a look at the strengths of Pinewood Mobile Homes Inc, it is necessary to highlight the company's weak points too.
The company's sales staff is proficient in training distributors, the fact remains that the sales team is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it should likewise be kept in mind that the distributors are showing unwillingness when it pertains to selling equipment that requires maintenance which increases the challenges of offering devices under a particular brand.
If we look at Pinewood Mobile Homes Inc product line in adhesive devices especially, the company has actually products focused on the high end of the marketplace. If Pinewood Mobile Homes Inc offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Pinewood Mobile Homes Inc high-end line of product, sales cannibalization would absolutely be affecting Pinewood Mobile Homes Inc sales income if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization impacting Pinewood Mobile Homes Inc 27A Pencil Applicator which is priced at $275. There is another possible risk which might lower Pinewood Mobile Homes Inc profits if Case Study Help is introduced under the company's brand. The fact that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we look at the market in general, the adhesives market does disappoint brand orientation or cost awareness which provides us 2 additional reasons for not launching a low priced item under the company's trademark name.
The competitive environment of Pinewood Mobile Homes Inc would be studied by means of Porter's 5 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 particularly as the buyer has low knowledge about the product. While business like Pinewood Mobile Homes Inc have actually managed to train distributors concerning adhesives, the last customer depends on distributors. Roughly 72% of sales are made directly by producers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by 3 players, it could be said that the supplier delights in a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the provider does not have much impact over the buyer at this point specifically as the buyer does not show brand acknowledgment or price sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the actual sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed 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 business has dual capabilities in terms of being a producer of adhesive dispensers and instant adhesives. Potential dangers in devices dispensing industry are low which shows the possibility of producing brand name awareness in not only immediate adhesives but also in giving adhesives as none of the market gamers has handled to position itself in double capabilities.
Danger of Substitutes: The hazard of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The truth stays that if Pinewood Mobile Homes Inc introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given various factors for not launching Case Study Help under Pinewood Mobile Homes Inc name, we have a suggested marketing mix for Case Study Help provided 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 reasons. There are presently 89257 establishments in this section 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 sufficient niche market sector for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the truth that the Diy market can also be targeted if a safe and clean low priced adhesive is being cost usage with SuperBonder. The item would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to choose either of the two accessories or not.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or via direct selling. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep store requires to acquire the item on his own.
Pinewood Mobile Homes Inc would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Pinewood Mobile Homes Inc for releasing Case Study Help.
Place: A distribution model where Pinewood Mobile Homes Inc directly sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Pinewood Mobile Homes Inc. Considering that the sales team is already engaged in selling instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be pricey particularly as each sales call costs roughly $120. The distributors are already offering dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: A low advertising spending plan must have been designated to Case Study Help however the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing strategy costing $51816 is suggested for at first introducing the product in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
