The following area focuses on the of marketing for Pinnacle Ventures where the company's customers, competitors and core competencies have examined in order to validate whether the choice to release Case Study Help under Pinnacle Ventures brand would be a possible choice or not. We have actually first of all taken a look at the type of consumers that Pinnacle Ventures handle while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Pinnacle Ventures name.
Pinnacle Ventures consumers can be segmented into 2 groups, last customers and industrial consumers. Both the groups utilize Pinnacle Ventures high performance adhesives while the company is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of products that are being sold to these prospective markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of immediate adhesives for this analysis since the market for the latter has a lower capacity for Pinnacle Ventures compared to that of instant adhesives.
The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been recognized earlier.If we look at a breakdown of Pinnacle Ventures potential market or customer groups, we can see that the company offers to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair work and revamping business (MRO) and makers dealing in items made of leather, metal, wood and plastic. This variety in consumers recommends that Pinnacle Ventures can target has various options in regards to segmenting the market for its brand-new item especially as each of these groups would be needing the very same kind of product with particular changes in demand, quantity or packaging. The client is not rate sensitive or brand name mindful so introducing a low priced dispenser under Pinnacle Ventures name is not an advised choice.
Pinnacle Ventures is not just a producer of adhesives however takes pleasure in market management in the instantaneous adhesive industry. The business has its own experienced and competent sales force which adds value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core competences are not restricted to adhesive production only as Pinnacle Ventures likewise concentrates on making adhesive giving equipment to facilitate the use of its items. This double production method gives Pinnacle Ventures an edge over rivals since none of the rivals of dispensing devices makes instantaneous adhesives. In addition, none of these rivals offers straight to the consumer either and makes use of suppliers for reaching out to consumers. While we are looking at the strengths of Pinnacle Ventures, it is necessary to highlight the company's weak points as well.
Although the company's sales personnel is knowledgeable in training suppliers, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It ought to likewise be noted that the suppliers are showing unwillingness when it comes to offering equipment that requires maintenance which increases the obstacles of selling devices under a specific brand name.
If we take a look at Pinnacle Ventures line of product in adhesive equipment particularly, the company has actually products targeted at the high-end of the marketplace. If Pinnacle Ventures sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Pinnacle Ventures high-end product line, sales cannibalization would absolutely be impacting Pinnacle Ventures sales revenue if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization affecting Pinnacle Ventures 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Pinnacle Ventures income if Case Study Help is released under the business's brand. The fact that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good 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.
In addition, if we look at the market in general, the adhesives market does not show brand orientation or price awareness which gives us two additional factors for not launching a low priced product under the company's brand name.
The competitive environment of Pinnacle Ventures would be studied through 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 particularly as the buyer has low understanding about the product. While business like Pinnacle Ventures have actually managed to train suppliers regarding adhesives, the last customer is dependent on distributors. Roughly 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: Provided the truth that the adhesive market is dominated by 3 gamers, it could be said that the supplier enjoys a higher bargaining power compared to the purchaser. Nevertheless, the fact stays that the provider does not have much influence over the buyer at this moment particularly as the purchaser does disappoint brand recognition or cost sensitivity. This indicates that the supplier has the higher power when it comes to the adhesive market while the buyer and the maker do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market indicates that the marketplace enables ease of entry. If we look at Pinnacle Ventures in specific, the company has dual abilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible risks in equipment dispensing market are low which reveals the possibility of producing brand awareness in not only instant adhesives however also in giving adhesives as none of the market gamers has actually handled to position itself in dual capabilities.
Threat of Substitutes: The hazard of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Pinnacle Ventures presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually offered numerous reasons for not introducing Case Study Help under Pinnacle Ventures name, we have a recommended marketing mix for Case Study Help provided below if Pinnacle Ventures decides 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 growth capacity of 10.1% which may be a good adequate niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This price would not include the cost of the 'vari tip' or the 'glumetic pointer'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store requires to buy the item on his own. This would increase the possibility of affecting mechanics to buy the item for usage in their daily upkeep tasks.
Pinnacle Ventures would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Pinnacle Ventures for releasing Case Study Help.
Place: A distribution model where Pinnacle Ventures directly sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Pinnacle Ventures. Given that the sales group is currently engaged in offering instant adhesives and they do not have competence in selling dispensers, including them in the selling procedure would be pricey particularly as each sales call expenses around $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low promotional budget must have been appointed to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising plan costing $51816 is suggested for initially presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).