Riverbend Telephone Company Case Study Help Checklist

Riverbend Telephone Company Case Study Help Checklist

Riverbend Telephone Company Case Study Solution
Riverbend Telephone Company Case Study Help
Riverbend Telephone Company Case Study Analysis

Analyses for Evaluating Riverbend Telephone Company decision to launch Case Study Solution

The following area concentrates on the of marketing for Riverbend Telephone Company where the business's customers, rivals and core proficiencies have actually assessed in order to validate whether the decision to launch Case Study Help under Riverbend Telephone Company trademark name would be a practical alternative or not. We have first of all looked at the type of customers that Riverbend Telephone Company deals in while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Riverbend Telephone Company name.
Riverbend Telephone Company Case Study Solution

Customer Analysis

Both the groups utilize Riverbend Telephone Company high performance adhesives while the company is not just included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis given that the market for the latter has a lower potential for Riverbend Telephone Company compared to that of immediate adhesives.

The total market for instant adhesives is approximately 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 Riverbend Telephone Company prospective market or consumer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair and overhauling business (MRO) and makers dealing in items made of leather, wood, plastic and metal. This diversity in consumers recommends that Riverbend Telephone Company can target has different choices in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the same kind of item with particular modifications in product packaging, amount or need. However, the client is not rate delicate or brand mindful so introducing a low priced dispenser under Riverbend Telephone Company name is not a suggested alternative.

Company Analysis

Riverbend Telephone Company is not just a producer of adhesives however enjoys market management in the immediate adhesive industry. The company has its own skilled and certified sales force which adds value 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 just as Riverbend Telephone Company also focuses on making adhesive dispensing devices to help with making use of its items. This double production technique provides Riverbend Telephone Company an edge over competitors considering that none of the rivals of giving devices makes instantaneous adhesives. In addition, none of these rivals offers directly to the consumer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Riverbend Telephone Company, it is important to highlight the business's weak points.

Although the business's sales personnel is skilled in training distributors, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it needs to also be kept in mind that the distributors are showing unwillingness when it concerns selling equipment that needs servicing which increases the challenges of offering equipment under a particular trademark name.

The company has actually items intended at the high end of the market if we look at Riverbend Telephone Company product line in adhesive equipment particularly. If Riverbend Telephone Company sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Riverbend Telephone Company high-end product line, sales cannibalization would absolutely be affecting Riverbend Telephone Company sales earnings if the adhesive equipment is offered under the business's brand.

We can see sales cannibalization impacting Riverbend Telephone 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 danger which might decrease Riverbend Telephone Company revenue. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great 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 instant adhesive.

Furthermore, if we look at the market in general, the adhesives market does disappoint brand orientation or price awareness which gives us 2 additional reasons for not launching a low priced item under the business's brand name.

Competitor Analysis

The competitive environment of Riverbend Telephone Company would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth potential due to the presence of fragmented segments with Riverbend Telephone Company delighting in management and a combined market share of 75% with two other market players, Eastman and Permabond. While market competition between these players could be called 'intense' as the consumer is not brand name conscious and each of these gamers has prominence in terms of market share, the reality still remains that the market is not saturated and still has several market sectors which can be targeted as prospective specific niche markets even when releasing an adhesive. We can even point out the truth that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instantaneous adhesives offers growth capacity.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the purchaser has low understanding about the product. While business like Riverbend Telephone Company have actually handled to train distributors concerning adhesives, the last customer is dependent on suppliers. Roughly 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 fact that the adhesive market is dominated by 3 gamers, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. The reality stays that the provider does not have much impact over the purchaser at this point specifically as the purchaser does not show brand acknowledgment or cost sensitivity. This suggests that the distributor has the higher power when it pertains to the adhesive market while the purchaser and the manufacturer do not have a major control over the actual 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 immediate adhesive market indicates that the market allows ease of entry. If we look at Riverbend Telephone Company in specific, the business has dual abilities in terms of being a maker of adhesive dispensers and instant adhesives. Potential dangers in devices dispensing market are low which shows the possibility of creating brand awareness in not just instant adhesives however likewise in dispensing adhesives as none of the market players has managed to place itself in double abilities.

Hazard of Substitutes: The danger of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Riverbend Telephone Company presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).

4 P Analysis: A suggested Marketing Mix for Case Study Help

Riverbend Telephone Company Case Study Help

Despite the fact that our 3C analysis has actually offered different factors for not introducing Case Study Help under Riverbend Telephone Company name, we have actually a recommended marketing mix for Case Study Help given below if Riverbend Telephone Company decides to proceed with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an extra growth potential of 10.1% which may be a good sufficient niche market sector 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 drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. This price would not include the expense of the 'vari idea' or the 'glumetic tip'. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to acquire the product on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their daily maintenance tasks.

Riverbend Telephone Company would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net profitability for Riverbend Telephone Company for releasing Case Study Help.

Place: A circulation model where Riverbend Telephone Company straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Riverbend Telephone Company. Since the sales group is already engaged in offering instant adhesives and they do not have knowledge in selling dispensers, involving them in the selling procedure would be costly specifically as each sales call expenses roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: Although a low marketing spending plan should have been designated to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is recommended for at first presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle upkeep stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Riverbend Telephone Company Case Study Analysis

A suggested strategy of action in the form of a marketing mix has actually been discussed for Case Study Help, the reality still remains that the item would not match Riverbend Telephone Company product line. We have a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be approximately $49377 if 250 units of each design are manufactured per year according to the plan. The initial prepared marketing is roughly $52000 per year which would be putting a strain on the business's resources leaving Riverbend Telephone Company with an unfavorable net income if the expenses are designated to Case Study Help only.

The truth that Riverbend Telephone Company has currently sustained a preliminary investment of $48000 in the form of capital cost and prototype development suggests that the revenue from Case Study Help is not enough to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of demand is not a more suitable option particularly of it is impacting the sale of the business's profits generating models.