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Progressive Corporation Variable Dividends Case Study Solution
Progressive Corporation Variable Dividends Case Study Help
Progressive Corporation Variable Dividends Case Study Analysis
The following section concentrates on the of marketing for Progressive Corporation Variable Dividends where the company's customers, rivals and core competencies have actually assessed in order to validate whether the decision to release Case Study Help under Progressive Corporation Variable Dividends trademark name would be a practical option or not. We have actually firstly taken a look at the type of clients that Progressive Corporation Variable Dividends handle while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Progressive Corporation Variable Dividends name.
Progressive Corporation Variable Dividends clients can be segmented into 2 groups, commercial customers and final consumers. Both the groups utilize Progressive Corporation Variable Dividends high performance adhesives while the business is not just involved in the production of these adhesives however likewise markets them to these client groups. There are 2 kinds of items that are being offered to these possible markets; immediate adhesives and anaerobic adhesives. We would be focusing on the consumers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Progressive Corporation Variable Dividends compared to that of instantaneous adhesives.
The overall market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Progressive Corporation Variable Dividends potential market or consumer groups, we can see that the company offers to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and producers handling items made of leather, wood, metal and plastic. This diversity in clients suggests that Progressive Corporation Variable Dividends can target has numerous options in regards to segmenting the marketplace for its brand-new item particularly as each of these groups would be needing the exact same kind of item with particular changes in quantity, packaging or need. Nevertheless, the customer is not rate delicate or brand conscious so introducing a low priced dispenser under Progressive Corporation Variable Dividends name is not an advised option.
Progressive Corporation Variable Dividends is not just a maker of adhesives but delights in market management in the instantaneous adhesive industry. The business has its own competent and certified sales force which adds worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives. Progressive Corporation Variable Dividends believes in exclusive distribution as shown by the reality that it has selected to offer through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach through suppliers. The business's reach is not limited to The United States and Canada just as it likewise delights in global sales. With 1400 outlets spread all throughout North America, Progressive Corporation Variable Dividends has its in-house production plants rather than utilizing out-sourcing as the preferred strategy.
Core competences are not restricted to adhesive manufacturing just as Progressive Corporation Variable Dividends likewise concentrates on making adhesive dispensing devices to help with making use of its items. This double production technique provides Progressive Corporation Variable Dividends an edge over competitors because none of the competitors of dispensing devices makes instant adhesives. In addition, none of these competitors sells straight to the consumer either and utilizes distributors for reaching out to consumers. While we are taking a look at the strengths of Progressive Corporation Variable Dividends, it is essential to highlight the company's weaknesses also.
Although the company's sales staff is experienced in training suppliers, the reality remains that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it must likewise be noted that the suppliers are showing hesitation when it pertains to offering equipment that needs servicing which increases the challenges of selling devices under a specific brand name.
If we look at Progressive Corporation Variable Dividends line of product in adhesive devices especially, the business has actually items targeted at the luxury of the market. The possibility of sales cannibalization exists if Progressive Corporation Variable Dividends sells Case Study Help under the very same portfolio. Offered the truth that Case Study Help is priced lower than Progressive Corporation Variable Dividends high-end product line, sales cannibalization would absolutely be affecting Progressive Corporation Variable Dividends sales income if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization affecting Progressive Corporation Variable Dividends 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible risk which might reduce Progressive Corporation Variable Dividends profits. The fact that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Additionally, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or price consciousness which offers us two additional factors for not introducing a low priced item under the company's brand name.
The competitive environment of Progressive Corporation Variable Dividends would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low knowledge about the product. While companies like Progressive Corporation Variable Dividends have actually handled to train suppliers regarding adhesives, the last consumer depends on suppliers. Around 72% of sales are made directly by manufacturers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 players, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the buyer. However, the reality remains that the provider does not have much impact over the buyer at this point especially as the purchaser does not show brand name recognition or price sensitivity. When it comes to the adhesive market while the maker and the buyer 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 loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market suggests that the marketplace permits ease of entry. Nevertheless, if we take a look at Progressive Corporation Variable Dividends in particular, the business has double abilities in regards to being a producer of immediate adhesives and adhesive dispensers. Potential risks in equipment giving industry are low which shows the possibility of producing brand awareness in not only instant adhesives however likewise in giving adhesives as none of the industry players has actually managed to position itself in double abilities.
Risk of Substitutes: The danger of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth remains that if Progressive Corporation Variable Dividends presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous reasons for not introducing Case Study Help under Progressive Corporation Variable Dividends name, we have actually a recommended marketing mix for Case Study Help provided below if Progressive Corporation Variable Dividends chooses to go on 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 additional development capacity of 10.1% which may be an excellent sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being offered for use with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This cost would not include the cost of the 'vari idea' or the 'glumetic suggestion'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store requires to buy the item on his own. This would increase the possibility of affecting mechanics to buy the item for use in their day-to-day maintenance jobs.
Progressive Corporation Variable Dividends would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net profitability for Progressive Corporation Variable Dividends for introducing Case Study Help.
Place: A distribution design where Progressive Corporation Variable Dividends directly sends the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Progressive Corporation Variable Dividends. Because the sales team is already engaged in offering instant adhesives and they do not have know-how in offering dispensers, including them in the selling procedure would be pricey especially as each sales call costs approximately $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low advertising budget plan must have been designated to Case Study Help however the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested advertising plan costing $51816 is advised for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
