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Prairie Ventures Limited Case Study Help Checklist

Prairie Ventures Limited Case Study Help Checklist

Prairie Ventures Limited Case Study Solution
Prairie Ventures Limited Case Study Help
Prairie Ventures Limited Case Study Analysis



Analyses for Evaluating Prairie Ventures Limited decision to launch Case Study Solution


The following section focuses on the of marketing for Prairie Ventures Limited where the business's customers, competitors and core proficiencies have actually assessed in order to justify whether the decision to introduce Case Study Help under Prairie Ventures Limited trademark name would be a feasible option or not. We have firstly taken a look at the kind of consumers that Prairie Ventures Limited handle while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Prairie Ventures Limited name.
Prairie Ventures Limited Case Study Solution

Customer Analysis

Both the groups use Prairie Ventures Limited high efficiency adhesives while the business is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the consumers of immediate adhesives for this analysis because the market for the latter has a lower capacity for Prairie Ventures Limited compared to that of instantaneous adhesives.

The total market for immediate adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have actually been recognized earlier.If we look at a breakdown of Prairie Ventures Limited potential market or customer groups, we can see that the business sells to OEMs (Original Equipment Makers), Do-it-Yourself consumers, repair work and revamping business (MRO) and manufacturers dealing in items made from leather, metal, wood and plastic. This diversity in consumers suggests that Prairie Ventures Limited can target has numerous choices in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be requiring the exact same type of product with particular modifications in product packaging, quantity or demand. The consumer is not price delicate or brand mindful so introducing a low priced dispenser under Prairie Ventures Limited name is not a suggested alternative.

Company Analysis

Prairie Ventures Limited is not simply a maker of adhesives however takes pleasure in market management in the immediate adhesive industry. The company has its own skilled and certified sales force which includes worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core competences are not limited to adhesive production just as Prairie Ventures Limited likewise concentrates on making adhesive giving equipment to facilitate using its items. This double production strategy gives Prairie Ventures Limited an edge over competitors because none of the rivals of giving equipment makes immediate adhesives. Furthermore, none of these competitors offers straight to the consumer either and uses suppliers for reaching out to customers. While we are looking at the strengths of Prairie Ventures Limited, it is important to highlight the company's weaknesses.

Although the business's sales personnel is skilled in training suppliers, 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 equipment. It needs to also be noted that the distributors are revealing hesitation when it comes to selling devices that requires servicing which increases the obstacles of offering devices under a specific brand name.

The company has items intended at the high end of the market if we look at Prairie Ventures Limited item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Prairie Ventures Limited sells Case Study Help under the same portfolio. Offered the fact that Case Study Help is priced lower than Prairie Ventures Limited high-end product line, sales cannibalization would definitely be impacting Prairie Ventures Limited sales profits if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization impacting Prairie Ventures Limited 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Prairie Ventures Limited profits if Case Study Help is released under the business's trademark name. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for releasing a dispenser which can highlight the reality 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 not show brand name orientation or cost consciousness which gives us 2 extra reasons for not launching a low priced item under the company's brand.

Competitor Analysis

The competitive environment of Prairie Ventures Limited 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 segments with Prairie Ventures Limited enjoying leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market competition in between these gamers could be called 'extreme' as the customer is not brand conscious and each of these gamers has prominence in regards to market share, the fact still stays that the market is not saturated and still has a number of market sectors which can be targeted as potential niche markets even when releasing an adhesive. We can even point out the reality that sales cannibalization may be leading to market competition in the adhesive dispenser market while the market for instant adhesives provides growth potential.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low understanding about the product. While companies like Prairie Ventures Limited have actually managed to train suppliers relating to adhesives, the final consumer is dependent on distributors. Approximately 72% of sales are made directly by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by three gamers, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The reality stays that the supplier does not have much influence over the buyer at this point specifically as the purchaser does not reveal brand name acknowledgment or price level of sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales, this suggests that the distributor has the greater power.

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 shows that the market enables ease of entry. However, if we take a look at Prairie Ventures Limited in particular, the business has double abilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Prospective hazards in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not only immediate adhesives however likewise in dispensing adhesives as none of the industry players has handled to place itself in dual capabilities.

Risk of Substitutes: The danger of substitutes in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality stays that if Prairie Ventures Limited presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).


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

Prairie Ventures Limited Case Study Help


Despite the fact that our 3C analysis has given different factors for not introducing Case Study Help under Prairie Ventures Limited name, we have actually a suggested marketing mix for Case Study Help offered below if Prairie Ventures Limited chooses to proceed with the launch.

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

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

Prairie Ventures Limited would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Prairie Ventures Limited for launching Case Study Help.

Place: A distribution model where Prairie Ventures Limited directly sends the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by Prairie Ventures Limited. Because the sales team is currently taken part in offering instantaneous adhesives and they do not have know-how in selling dispensers, involving them in the selling process would be pricey particularly as each sales call costs approximately $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: Although a low marketing spending plan must have been designated to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is advised for initially presenting the product in the market. The prepared ads in publications would be targeted at mechanics in vehicle maintenance 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
Prairie Ventures Limited Case Study Analysis

Although a recommended strategy in the form of a marketing mix has been discussed for Case Study Help, the truth still remains that the item would not complement Prairie Ventures Limited product line. We have a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be around $49377 if 250 systems of each design are produced per year as per the strategy. The initial planned advertising is roughly $52000 per year which would be putting a strain on the company's resources leaving Prairie Ventures Limited with a negative net earnings if the expenses are assigned to Case Study Help just.

The reality that Prairie Ventures Limited has currently sustained a preliminary financial investment of $48000 in the form of capital cost and prototype development indicates that the earnings from Case Study Help is not enough to undertake the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low flexibility of need is not a preferable choice specifically of it is impacting the sale of the business's profits creating models.



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