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Prime Micro Inc Case Study Solution
Prime Micro Inc Case Study Help
Prime Micro Inc Case Study Analysis
The following area concentrates on the of marketing for Prime Micro Inc where the business's clients, competitors and core competencies have examined in order to validate whether the choice to launch Case Study Help under Prime Micro Inc brand name would be a practical choice or not. We have actually first of all taken a look at the type of consumers that Prime Micro Inc 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 Prime Micro Inc name.
Prime Micro Inc customers can be segmented into two groups, last consumers and commercial customers. Both the groups use Prime Micro Inc high performance adhesives while the company is not just involved in the production of these adhesives but likewise markets them to these customer groups. There are two types of items that are being sold to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be concentrating on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Prime Micro Inc compared to that of immediate adhesives.
The total market for immediate adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Prime Micro Inc prospective market or consumer groups, we can see that the business sells to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair and overhauling companies (MRO) and makers dealing in products made of leather, metal, wood and plastic. This diversity in clients suggests that Prime Micro Inc can target has various alternatives in terms of segmenting the market for its new product specifically as each of these groups would be requiring the exact same kind of product with respective changes in product packaging, quantity or demand. The customer is not price delicate or brand name conscious so releasing a low priced dispenser under Prime Micro Inc name is not a recommended option.
Prime Micro Inc is not simply a producer of adhesives but takes pleasure in market management in the immediate adhesive industry. The company has its own experienced and certified sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Prime Micro Inc believes in exclusive circulation as suggested by the truth that it has chosen to offer through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for expanding reach by means of suppliers. The company's reach is not limited to The United States and Canada just as it also takes pleasure in global sales. With 1400 outlets spread out all across The United States and Canada, Prime Micro Inc has its in-house production plants instead of utilizing out-sourcing as the favored strategy.
Core competences are not restricted to adhesive production just as Prime Micro Inc also concentrates on making adhesive giving equipment to help with using its items. This double production method provides Prime Micro Inc an edge over competitors since none of the competitors of dispensing equipment makes instantaneous adhesives. Furthermore, none of these competitors offers straight to the consumer either and makes use of distributors for connecting to clients. While we are looking at the strengths of Prime Micro Inc, it is essential to highlight the company's weak points.
The business's sales personnel is skilled in training distributors, the reality remains that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it should likewise be noted that the distributors are showing reluctance when it comes to offering devices that requires maintenance which increases the obstacles of selling devices under a specific brand.
The business has actually products aimed at the high end of the market if we look at Prime Micro Inc product line in adhesive equipment especially. The possibility of sales cannibalization exists if Prime Micro Inc sells Case Study Help under the same portfolio. Given the truth that Case Study Help is priced lower than Prime Micro Inc high-end line of product, sales cannibalization would absolutely be affecting Prime Micro Inc sales revenue if the adhesive devices is offered under the business's brand name.
We can see sales cannibalization impacting Prime Micro Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible threat which could reduce Prime Micro Inc income. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the truth 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 name orientation or price consciousness which provides us 2 additional reasons for not releasing a low priced product under the business's trademark name.
The competitive environment of Prime Micro Inc would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the item. While business like Prime Micro Inc have managed to train distributors relating to adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 gamers, it could be stated that the provider delights in a higher bargaining power compared to the buyer. The fact remains that the provider does not have much impact over the buyer at this point specifically as the buyer does not reveal brand acknowledgment or cost sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a significant 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 commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market suggests that the market permits ease of entry. If we look at Prime Micro Inc in specific, the company has double capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible dangers in devices dispensing market are low which reveals the possibility of producing brand awareness in not just instant adhesives however likewise in giving adhesives as none of the industry players has handled to place itself in dual abilities.
Hazard of Substitutes: The hazard of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Prime Micro Inc 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 given various factors for not launching Case Study Help under Prime Micro Inc name, we have a suggested marketing mix for Case Study Help provided below if Prime Micro Inc chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 facilities in this sector and a high usage of approximately 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Diy market can likewise be targeted if a potable low priced adhesive is being cost use with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can choose whether he wants to opt for either of the two devices or not.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. This cost would not consist of the cost of the 'vari tip' or the 'glumetic suggestion'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop requires to buy the product on his own. This would increase the possibility of influencing mechanics to buy the product for usage in their everyday maintenance tasks.
Prime Micro Inc would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net profitability for Prime Micro Inc for launching Case Study Help.
Place: A distribution model where Prime Micro Inc straight sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Prime Micro Inc. Considering that the sales group is already engaged in offering immediate adhesives and they do not have competence in selling dispensers, involving them in the selling process would be expensive specifically as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: Although a low marketing spending plan should have been assigned to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is recommended for at first presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in car upkeep shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
