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Qalaa Holdings And The Egyptian Refining Company Case Study Solution
Qalaa Holdings And The Egyptian Refining Company Case Study Help
Qalaa Holdings And The Egyptian Refining Company Case Study Analysis
The following area focuses on the of marketing for Qalaa Holdings And The Egyptian Refining Company where the company's clients, rivals and core proficiencies have assessed in order to validate whether the choice to launch Case Study Help under Qalaa Holdings And The Egyptian Refining Company trademark name would be a practical option or not. We have to start with looked at the type of customers that Qalaa Holdings And The Egyptian Refining Company handle while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Qalaa Holdings And The Egyptian Refining Company name.
Qalaa Holdings And The Egyptian Refining Company clients can be segmented into two groups, final customers and commercial clients. Both the groups utilize Qalaa Holdings And The Egyptian Refining Company high performance adhesives while the company is not just associated with the production of these adhesives however also markets them to these client groups. There are 2 types of items that are being sold to these possible markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis considering that the market for the latter has a lower potential for Qalaa Holdings And The Egyptian Refining Company compared to that of instantaneous adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Qalaa Holdings And The Egyptian Refining Company prospective market or consumer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair and revamping companies (MRO) and manufacturers dealing in products made from leather, plastic, wood and metal. This variety in customers recommends that Qalaa Holdings And The Egyptian Refining Company can target has different alternatives in regards to segmenting the marketplace for its new item especially as each of these groups would be needing the exact same kind of product with particular changes in packaging, demand or amount. Nevertheless, the customer is not rate sensitive or brand mindful so releasing a low priced dispenser under Qalaa Holdings And The Egyptian Refining Company name is not an advised choice.
Qalaa Holdings And The Egyptian Refining Company is not just a manufacturer of adhesives however delights in market management in the immediate adhesive industry. The company has its own skilled and competent sales force which includes worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.
Core competences are not restricted to adhesive production just as Qalaa Holdings And The Egyptian Refining Company also focuses on making adhesive giving devices to help with making use of its products. This double production technique provides Qalaa Holdings And The Egyptian Refining Company an edge over competitors because none of the competitors of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals offers directly to the consumer either and makes use of distributors for connecting to clients. While we are looking at the strengths of Qalaa Holdings And The Egyptian Refining Company, it is important to highlight the business's weaknesses too.
The company's sales personnel is experienced in training suppliers, the truth 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 ought to also be noted that the distributors are showing hesitation when it comes to selling equipment that requires maintenance which increases the obstacles of selling equipment under a particular brand name.
The company has products aimed at the high end of the market if we look at Qalaa Holdings And The Egyptian Refining Company product line in adhesive equipment especially. The possibility of sales cannibalization exists if Qalaa Holdings And The Egyptian Refining Company sells Case Study Help under the same portfolio. Provided the reality that Case Study Help is priced lower than Qalaa Holdings And The Egyptian Refining Company high-end product line, sales cannibalization would certainly be impacting Qalaa Holdings And The Egyptian Refining Company sales earnings if the adhesive devices is offered under the company's brand name.
We can see sales cannibalization impacting Qalaa Holdings And The Egyptian Refining Company 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could decrease Qalaa Holdings And The Egyptian Refining Company income. The truth that $175000 has been spent in promoting SuperBonder suggests 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 not show brand name orientation or rate consciousness which provides us two extra factors for not introducing a low priced item under the business's trademark name.
The competitive environment of Qalaa Holdings And The Egyptian Refining Company would be studied via 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 specifically as the buyer has low understanding about the product. While business like Qalaa Holdings And The Egyptian Refining Company have actually managed to train distributors relating to adhesives, the final customer is dependent on distributors. Approximately 72% of sales are made directly by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by 3 players, it could be stated that the provider delights in a greater bargaining power compared to the purchaser. However, the truth remains that the supplier does not have much influence over the purchaser at this moment specifically as the buyer does not show brand name recognition or price level of sensitivity. This shows that the distributor has the higher power when it pertains to the adhesive market while the maker and the purchaser do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the market allows ease of entry. If we look at Qalaa Holdings And The Egyptian Refining Company in particular, the company has double abilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Prospective hazards in devices giving market are low which reveals the possibility of developing brand awareness in not only instant adhesives however also in giving adhesives as none of the industry players has actually managed to position itself in dual capabilities.
Danger of Substitutes: The threat of replacements in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The fact remains that if Qalaa Holdings And The Egyptian Refining Company presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given various reasons for not releasing Case Study Help under Qalaa Holdings And The Egyptian Refining Company name, we have actually a recommended marketing mix for Case Study Help offered below if Qalaa Holdings And The Egyptian Refining Company decides to go on with the launch.
Product & Target Market: The target audience picked for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this sector and a high use of roughly 58900 lbs. is being used by 36.1 % of the market. This market has an additional development potential of 10.1% which might be a good enough specific niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being cost usage with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can decide whether he wants to opt for 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 sold through distributors or by means of direct selling. This price would not include the expense of the 'vari pointer' or the 'glumetic pointer'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to acquire the item on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their everyday upkeep tasks.
Qalaa Holdings And The Egyptian Refining Company would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Qalaa Holdings And The Egyptian Refining Company for introducing Case Study Help.
Place: A distribution design where Qalaa Holdings And The Egyptian Refining Company straight sends out the item to the local supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Qalaa Holdings And The Egyptian Refining Company. Since the sales team is already participated in selling instant adhesives and they do not have know-how in selling dispensers, including them in the selling procedure would be costly specifically as each sales call costs around $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: Although a low marketing budget plan must have been assigned 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 costs sustained for production, the suggested advertising strategy costing $51816 is suggested for at first introducing the item in the market. The prepared advertisements in publications would be targeted at mechanics in car maintenance shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
