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Riverbend Telephone Company Case Study Solution
Riverbend Telephone Company Case Study Help
Riverbend Telephone Company Case Study Analysis
The following section concentrates on the of marketing for Riverbend Telephone Company where the company's consumers, rivals and core proficiencies have assessed in order to validate whether the choice to launch Case Study Help under Riverbend Telephone Company brand would be a possible alternative or not. We have to start with looked at the type of clients that Riverbend Telephone Company deals in while an evaluation of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Riverbend Telephone Company name.
Riverbend Telephone Company customers can be segmented into 2 groups, last customers and industrial customers. Both the groups use Riverbend Telephone Company high performance adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these customer groups. There are 2 types of products that are being sold to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of instant adhesives for this analysis given that the market for the latter has a lower potential for Riverbend Telephone Company compared to that of instant adhesives.
The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have been identified earlier.If we take a look at a breakdown of Riverbend Telephone Company possible market or customer groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself clients, repair work and revamping companies (MRO) and manufacturers dealing in items made from leather, plastic, metal and wood. This variety in customers suggests that Riverbend Telephone Company can target has various options in regards to segmenting the market for its new product specifically as each of these groups would be requiring the very same type of product with particular changes in amount, product packaging or demand. The consumer is not price sensitive or brand conscious so launching a low priced dispenser under Riverbend Telephone Company name is not an advised choice.
Riverbend Telephone Company is not simply a manufacturer of adhesives however takes pleasure in market leadership in the instantaneous adhesive market. The company has its own skilled and certified sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Riverbend Telephone Company believes in unique distribution as indicated by the reality that it has actually selected to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach by means of suppliers. The business's reach is not limited to The United States and Canada just as it also delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Riverbend Telephone Company has its in-house production plants rather than utilizing out-sourcing as the favored strategy.
Core competences are not limited to adhesive manufacturing just as Riverbend Telephone Company likewise focuses on making adhesive dispensing equipment to help with making use of its items. This dual production method offers Riverbend Telephone Company an edge over competitors since none of the rivals of giving equipment makes instantaneous adhesives. Additionally, none of these competitors offers directly to the consumer either and makes use of distributors for connecting to clients. While we are looking at the strengths of Riverbend Telephone Company, it is essential to highlight the business's weaknesses.
The company's sales staff is skilled in training distributors, the fact remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It must also be kept in mind that the suppliers are showing hesitation when it comes to selling devices that requires servicing which increases the challenges of offering equipment under a specific brand name.
If we take a look at Riverbend Telephone Company line of product in adhesive devices especially, the business has items aimed at the luxury of the market. The possibility of sales cannibalization exists if Riverbend Telephone Company offers Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Riverbend Telephone Company high-end product line, sales cannibalization would certainly be affecting Riverbend Telephone Company sales revenue if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization impacting Riverbend Telephone Company 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 Riverbend Telephone Company earnings. The truth that $175000 has actually been invested in promoting SuperBonder recommends that it is not a great time for launching 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 look at the market in general, the adhesives market does disappoint brand orientation or price consciousness which provides us 2 extra factors for not launching a low priced product under the company's trademark name.
The competitive environment of Riverbend Telephone Company 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 market is low especially as the buyer has low understanding about the product. While companies like Riverbend Telephone Company have actually handled to train distributors regarding adhesives, the final consumer is dependent on suppliers. Approximately 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by three players, it could be stated that the supplier enjoys a greater bargaining power compared to the buyer. Nevertheless, the reality remains that the supplier does not have much influence over the buyer at this point particularly as the buyer does not show brand name acknowledgment or cost sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the producer and the purchaser do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace enables ease of entry. If we look at Riverbend Telephone Company in specific, the business has double capabilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Potential dangers in devices dispensing industry are low which reveals the possibility of creating brand name awareness in not just instant adhesives however also in dispensing adhesives as none of the market gamers has managed to place itself in double capabilities.
Threat of Substitutes: The threat of replacements in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Riverbend Telephone Company introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given various reasons for not introducing Case Study Help under Riverbend Telephone Company name, we have a recommended marketing mix for Case Study Help offered listed below if Riverbend Telephone Company decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of factors. This market has an extra growth capacity of 10.1% which might be an excellent adequate specific niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.
Price: The suggested price 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 idea'. A price below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to purchase the product on his own. This would increase the possibility of affecting mechanics to buy the product for usage in their day-to-day maintenance tasks.
Riverbend Telephone Company would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Riverbend Telephone Company for introducing Case Study Help.
Place: A circulation design where Riverbend Telephone Company straight sends the product to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Riverbend Telephone Company. Because the sales team is already engaged in offering instant adhesives and they do not have competence in selling dispensers, involving them in the selling process would be expensive particularly as each sales call expenses around $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: A low marketing spending plan ought to have been designated to Case Study Help but the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is recommended for initially presenting the product in the market. The planned ads in magazines would be targeted at mechanics in car upkeep stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
