WhatsApp 
Prague Post Case Study Solution
Prague Post Case Study Help
Prague Post Case Study Analysis
The following section focuses on the of marketing for Prague Post where the company's customers, rivals and core proficiencies have examined in order to validate whether the choice to introduce Case Study Help under Prague Post trademark name would be a practical choice or not. We have actually to start with taken a look at the type of customers that Prague Post handle while an evaluation of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Prague Post name.
Both the groups utilize Prague Post high efficiency adhesives while the company is not just included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Prague Post compared to that of instant adhesives.
The total market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have been identified earlier.If we look at a breakdown of Prague Post prospective market or consumer groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself clients, repair and revamping business (MRO) and producers handling products made of leather, plastic, metal and wood. This diversity in customers recommends that Prague Post can target has numerous choices in terms of segmenting the market for its new item particularly as each of these groups would be requiring the same kind of product with respective modifications in quantity, demand or product packaging. However, the client is not price delicate or brand mindful so launching a low priced dispenser under Prague Post name is not a suggested option.
Prague Post is not just a producer of adhesives but takes pleasure in market management in the instantaneous adhesive market. The business has its own knowledgeable and certified sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Prague Post believes in exclusive circulation as indicated by the fact that it has actually chosen to offer through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach via distributors. The company's reach is not restricted to North America only as it also delights in worldwide sales. With 1400 outlets spread out all across The United States and Canada, Prague Post has its internal production plants rather than using out-sourcing as the preferred method.
Core skills are not restricted to adhesive manufacturing only as Prague Post likewise concentrates on making adhesive giving equipment to assist in using its products. This double production technique offers Prague Post an edge over competitors given that none of the competitors of giving devices makes immediate adhesives. Furthermore, none of these competitors offers straight to the customer either and uses suppliers for reaching out to customers. While we are looking at the strengths of Prague Post, it is essential to highlight the company's weak points also.
The business's sales staff is competent in training suppliers, the truth stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. Nevertheless, it should also be noted that the suppliers are revealing hesitation when it pertains to selling equipment that requires maintenance which increases the challenges of selling devices under a particular trademark name.
If we look at Prague Post line of product in adhesive devices especially, the company has actually products focused on the luxury of the market. The possibility of sales cannibalization exists if Prague Post offers Case Study Help under the exact same portfolio. Given the truth that Case Study Help is priced lower than Prague Post high-end product line, sales cannibalization would absolutely be impacting Prague Post sales income if the adhesive devices is offered under the company's brand.
We can see sales cannibalization impacting Prague Post 27A Pencil Applicator which is priced at $275. There is another possible risk which could reduce Prague Post earnings if Case Study Help is introduced under the company's brand. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we look at the market in general, the adhesives market does disappoint brand orientation or rate consciousness which offers us two extra factors for not introducing a low priced product under the company's brand.
The competitive environment of Prague Post would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low knowledge about the item. While business like Prague Post have actually handled to train distributors relating to adhesives, the final customer depends on distributors. Approximately 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 reality that the adhesive market is controlled by 3 players, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the truth remains that the supplier does not have much influence over the buyer at this point especially as the buyer does not show brand acknowledgment or price level of sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a significant control over the real sales, this indicates that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the marketplace enables ease of entry. If we look at Prague Post in specific, the company has dual abilities in terms of being a producer of adhesive dispensers and immediate adhesives. Possible risks in equipment dispensing market are low which reveals the possibility of developing brand awareness in not just instantaneous adhesives but also in dispensing adhesives as none of the industry gamers has managed to position itself in double abilities.
Hazard of Substitutes: The danger of alternatives in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Prague Post 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 actually given various reasons for not launching Case Study Help under Prague Post name, we have actually a recommended marketing mix for Case Study Help provided listed below if Prague Post 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 factors. This market has an additional growth capacity of 10.1% which might be a great sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the reality that the Diy market can also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.
Price: The suggested price 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. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to buy the product on his own.
Prague Post would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Prague Post for introducing Case Study Help.
Place: A distribution design where Prague Post directly sends the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Prague Post. Given that the sales team is currently engaged in offering immediate adhesives and they do not have know-how in selling dispensers, including them in the selling process would be costly specifically as each sales call costs approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: A low promotional budget must have been appointed to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is suggested for initially presenting the item in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
