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Progressive Insurance Disclosure Strategy Case Study Solution
Progressive Insurance Disclosure Strategy Case Study Help
Progressive Insurance Disclosure Strategy Case Study Analysis
The following area concentrates on the of marketing for Progressive Insurance Disclosure Strategy where the company's consumers, competitors and core competencies have examined in order to validate whether the decision to release Case Study Help under Progressive Insurance Disclosure Strategy brand would be a possible alternative or not. We have to start with taken a look at the type of customers that Progressive Insurance Disclosure Strategy handle while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Progressive Insurance Disclosure Strategy name.
Progressive Insurance Disclosure Strategy customers can be segmented into two groups, final consumers and commercial clients. Both the groups utilize Progressive Insurance Disclosure Strategy high performance adhesives while the business is not just involved in the production of these adhesives but also markets them to these client groups. There are 2 types of products that are being sold to these possible markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of immediate adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Progressive Insurance Disclosure Strategy compared to that of instant adhesives.
The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we look at a breakdown of Progressive Insurance Disclosure Strategy prospective market or client groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair and upgrading companies (MRO) and producers dealing in products made of leather, wood, metal and plastic. This diversity in customers suggests that Progressive Insurance Disclosure Strategy can target has numerous choices in terms of segmenting the marketplace for its new product specifically as each of these groups would be requiring the same kind of item with particular modifications in need, packaging or amount. Nevertheless, the customer is not price delicate or brand conscious so introducing a low priced dispenser under Progressive Insurance Disclosure Strategy name is not an advised alternative.
Progressive Insurance Disclosure Strategy is not just a manufacturer of adhesives however delights in market leadership in the instant adhesive market. The business has its own proficient and qualified sales force which adds value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Progressive Insurance Disclosure Strategy believes in exclusive circulation as suggested by the truth that it has actually selected 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 business's reach is not limited to North America only as it likewise enjoys global sales. With 1400 outlets spread out all throughout North America, Progressive Insurance Disclosure Strategy has its internal production plants rather than utilizing out-sourcing as the preferred method.
Core competences are not restricted to adhesive production only as Progressive Insurance Disclosure Strategy likewise concentrates on making adhesive giving devices to facilitate making use of its products. This double production technique offers Progressive Insurance Disclosure Strategy an edge over rivals because none of the competitors of giving devices makes immediate adhesives. Furthermore, none of these competitors sells directly to the customer either and utilizes suppliers for reaching out to consumers. While we are looking at the strengths of Progressive Insurance Disclosure Strategy, it is important to highlight the company's weaknesses.
The company's sales staff is proficient in training suppliers, the truth remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it needs to also be kept in mind that the distributors are showing unwillingness when it comes to offering equipment that requires maintenance which increases the obstacles of offering devices under a specific brand.
The company has actually items intended at the high end of the market if we look at Progressive Insurance Disclosure Strategy item line in adhesive equipment especially. The possibility of sales cannibalization exists if Progressive Insurance Disclosure Strategy sells Case Study Help under the exact same portfolio. Given the truth that Case Study Help is priced lower than Progressive Insurance Disclosure Strategy high-end line of product, sales cannibalization would definitely be affecting Progressive Insurance Disclosure Strategy sales profits if the adhesive devices is sold under the company's trademark name.
We can see sales cannibalization impacting Progressive Insurance Disclosure Strategy 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible threat which could lower Progressive Insurance Disclosure Strategy income. The fact that $175000 has been invested in promoting SuperBonder suggests 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 instantaneous adhesive.
In addition, if we take a look at the market in general, the adhesives market does disappoint brand orientation or price awareness which gives us two additional reasons for not releasing a low priced product under the business's trademark name.
The competitive environment of Progressive Insurance Disclosure Strategy 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 especially as the buyer has low understanding about the item. While business like Progressive Insurance Disclosure Strategy have actually managed to train suppliers regarding adhesives, the final customer depends on suppliers. Roughly 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 gamers, it could be said that the provider enjoys a higher bargaining power compared to the purchaser. Nevertheless, the fact remains that the provider does not have much influence over the purchaser at this moment particularly as the buyer does disappoint brand name acknowledgment or cost sensitivity. This shows that the supplier has the higher power when it pertains to the adhesive market while the manufacturer and the purchaser do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace permits ease of entry. Nevertheless, if we look at Progressive Insurance Disclosure Strategy in particular, the business has dual capabilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Prospective dangers in devices giving market are low which shows the possibility of producing brand awareness in not only immediate adhesives however likewise in giving adhesives as none of the market gamers has actually managed to position itself in double capabilities.
Hazard of Substitutes: The risk of substitutes in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth remains that if Progressive Insurance Disclosure Strategy introduced 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 given various factors for not launching Case Study Help under Progressive Insurance Disclosure Strategy name, we have actually a recommended marketing mix for Case Study Help provided listed below if Progressive Insurance Disclosure Strategy chooses to go on with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a number of reasons. There are presently 89257 establishments in this sector and a high use of approximately 58900 lbs. is being used by 36.1 % of the market. This market has an additional development capacity of 10.1% which might be a sufficient specific niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can choose whether he wishes to select either of the two devices or not.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This cost would not include the expense of the 'vari tip' or the 'glumetic suggestion'. A price 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 item on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their everyday upkeep tasks.
Progressive Insurance Disclosure Strategy would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Progressive Insurance Disclosure Strategy for releasing Case Study Help.
Place: A distribution design where Progressive Insurance Disclosure Strategy directly sends the item to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Progressive Insurance Disclosure Strategy. Considering that the sales team is already engaged in selling instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling process would be expensive particularly as each sales call expenses approximately $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low marketing budget plan ought to have been assigned to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is advised for initially introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in car upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
