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Ravens Sun Enterprise Ltd Case Study Solution
Ravens Sun Enterprise Ltd Case Study Help
Ravens Sun Enterprise Ltd Case Study Analysis
The following area concentrates on the of marketing for Ravens Sun Enterprise Ltd where the company's consumers, competitors and core competencies have actually evaluated in order to justify whether the choice to introduce Case Study Help under Ravens Sun Enterprise Ltd brand name would be a possible alternative or not. We have actually firstly taken a look at the type of clients that Ravens Sun Enterprise Ltd deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Ravens Sun Enterprise Ltd name.
Both the groups utilize Ravens Sun Enterprise Ltd high performance adhesives while the company is not just involved in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the consumers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Ravens Sun Enterprise Ltd compared to that of immediate adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Ravens Sun Enterprise Ltd potential market or consumer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and producers handling items made of leather, plastic, metal and wood. This diversity in clients suggests that Ravens Sun Enterprise Ltd can target has different choices in regards to segmenting the market for its new product specifically as each of these groups would be requiring the very same type of item with respective modifications in quantity, need or packaging. However, the consumer is not price delicate or brand conscious so introducing a low priced dispenser under Ravens Sun Enterprise Ltd name is not a recommended alternative.
Ravens Sun Enterprise Ltd is not just a maker of adhesives however delights 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 company's network of 250 suppliers for assisting in the sale of adhesives.
Core skills are not limited to adhesive manufacturing only as Ravens Sun Enterprise Ltd also focuses on making adhesive giving devices to facilitate using its products. This double production method gives Ravens Sun Enterprise Ltd an edge over rivals since none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these rivals sells directly to the consumer either and makes use of distributors for reaching out to clients. While we are looking at the strengths of Ravens Sun Enterprise Ltd, it is essential to highlight the company's weak points.
The company's sales personnel is experienced in training distributors, the truth stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. It needs to also be kept in mind that the distributors are revealing reluctance when it comes to offering equipment that requires servicing which increases the obstacles of selling devices under a specific brand name.
The company has items aimed at the high end of the market if we look at Ravens Sun Enterprise Ltd item line in adhesive devices especially. If Ravens Sun Enterprise Ltd offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Ravens Sun Enterprise Ltd high-end line of product, sales cannibalization would absolutely be impacting Ravens Sun Enterprise Ltd sales revenue if the adhesive equipment is offered under the business's brand.
We can see sales cannibalization affecting Ravens Sun Enterprise Ltd 27A Pencil Applicator which is priced at $275. There is another possible threat which could lower Ravens Sun Enterprise Ltd revenue if Case Study Help is launched under the company's brand name. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Additionally, if we take a look at the market in general, the adhesives market does disappoint brand orientation or rate consciousness which provides us 2 extra factors for not introducing a low priced item under the company's brand.
The competitive environment of Ravens Sun Enterprise Ltd would be studied by means of 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 industry is low specifically as the buyer has low knowledge about the product. While business like Ravens Sun Enterprise Ltd have handled to train distributors regarding adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made straight by producers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by 3 gamers, it could be stated that the provider delights in a greater bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the buyer at this point specifically as the buyer does not reveal brand name recognition or cost level of sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a major control over the real sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market suggests that the marketplace allows ease of entry. If we look at Ravens Sun Enterprise Ltd in particular, the business has double abilities in terms of being a producer of adhesive dispensers and instant adhesives. Prospective threats in devices giving market are low which reveals the possibility of producing brand awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry players has actually 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, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Ravens Sun Enterprise Ltd introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided various factors for not releasing Case Study Help under Ravens Sun Enterprise Ltd name, we have a recommended marketing mix for Case Study Help provided listed below if Ravens Sun Enterprise Ltd chooses to go ahead 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 growth potential of 10.1% which may be a good adequate specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the truth that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor car maintenance store needs to acquire the product on his own.
Ravens Sun Enterprise Ltd would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Ravens Sun Enterprise Ltd for introducing Case Study Help.
Place: A circulation model where Ravens Sun Enterprise Ltd directly sends the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Ravens Sun Enterprise Ltd. Given that the sales team is already engaged in offering instant adhesives and they do not have expertise in selling 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 beneficial choice.
Promotion: A low promotional budget plan should have been assigned to Case Study Help but the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is suggested for at first presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in car maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
