Romeo Engine Plant Case Study Help Checklist

Romeo Engine Plant Case Study Help Checklist

Romeo Engine Plant Case Study Solution
Romeo Engine Plant Case Study Help
Romeo Engine Plant Case Study Analysis

Analyses for Evaluating Romeo Engine Plant decision to launch Case Study Solution

The following area concentrates on the of marketing for Romeo Engine Plant where the business's clients, competitors and core competencies have evaluated in order to validate whether the decision to introduce Case Study Help under Romeo Engine Plant trademark name would be a practical choice or not. We have to start with looked at the type of customers that Romeo Engine Plant handle while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Romeo Engine Plant name.
Romeo Engine Plant Case Study Solution

Customer Analysis

Romeo Engine Plant consumers can be segmented into 2 groups, last customers and commercial clients. Both the groups use Romeo Engine Plant high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these client groups. There are two types of products that are being sold to these potential markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the customers of instant adhesives for this analysis because the marketplace for the latter has a lower potential for Romeo Engine Plant compared to that of immediate adhesives.

The overall market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we look at a breakdown of Romeo Engine Plant potential market or consumer groups, we can see that the business sells to OEMs (Original Devices Makers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and producers handling items made of leather, metal, wood and plastic. This variety in clients suggests that Romeo Engine Plant can target has different choices in terms of segmenting the marketplace for its new item particularly as each of these groups would be needing the same type of product with respective changes in packaging, amount or need. The client is not cost delicate or brand conscious so introducing a low priced dispenser under Romeo Engine Plant name is not a recommended option.

Company Analysis

Romeo Engine Plant is not just a producer of adhesives however delights in market leadership in the instantaneous adhesive industry. The business has its own competent and competent sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not restricted to adhesive manufacturing just as Romeo Engine Plant also concentrates on making adhesive giving equipment to help with using its items. This double production method provides Romeo Engine Plant an edge over competitors because none of the rivals of dispensing devices makes instant adhesives. In addition, none of these rivals offers straight to the consumer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Romeo Engine Plant, it is important to highlight the company's weak points.

The company's sales personnel is skilled in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it ought to also be noted that the distributors are showing hesitation when it pertains to offering equipment that needs servicing which increases the difficulties of offering devices under a particular brand.

If we look at Romeo Engine Plant line of product in adhesive devices especially, the business has actually products aimed at the luxury of the marketplace. The possibility of sales cannibalization exists if Romeo Engine Plant offers Case Study Help under the same portfolio. Offered the truth that Case Study Help is priced lower than Romeo Engine Plant high-end line of product, sales cannibalization would absolutely be impacting Romeo Engine Plant sales earnings if the adhesive equipment is sold under the business's brand.

We can see sales cannibalization affecting Romeo Engine Plant 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible risk which might decrease Romeo Engine Plant income. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

Furthermore, if we look at the market in general, the adhesives market does not show brand name orientation or price awareness which offers us 2 extra reasons for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Romeo Engine Plant would be studied through Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the presence of fragmented sectors with Romeo Engine Plant enjoying management and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While industry competition between these gamers could be called 'intense' as the customer is not brand name mindful and each of these gamers has prominence in terms of market share, the reality still remains that the industry is not saturated and still has a number of market segments which can be targeted as prospective specific niche markets even when introducing an adhesive. We can even point out the reality that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for immediate adhesives offers growth capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the purchaser has low understanding about the product. While companies like Romeo Engine Plant have managed to train suppliers regarding adhesives, the final consumer depends on suppliers. Roughly 72% of sales are made straight by manufacturers and distributors for instant adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by 3 players, it could be said that the provider enjoys a greater bargaining power compared to the purchaser. The fact remains that the provider does not have much influence over the buyer at this point especially as the buyer does not reveal brand acknowledgment or price level of sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales, this suggests that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market suggests that the market allows ease of entry. If we look at Romeo Engine Plant in specific, the business has double capabilities in terms of being a maker of adhesive dispensers and instant adhesives. Prospective dangers in equipment dispensing market are low which reveals the possibility of producing brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the market gamers has managed to position itself in double abilities.

Danger of Substitutes: The threat of substitutes in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Romeo Engine Plant introduced 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

Romeo Engine Plant Case Study Help

Despite the fact that our 3C analysis has actually given different factors for not introducing Case Study Help under Romeo Engine Plant name, we have actually a suggested marketing mix for Case Study Help given below if Romeo Engine Plant decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Automobile services' for a number of factors. There are presently 89257 facilities in this section and a high usage of approximately 58900 lbs. is being used by 36.1 % of the marketplace. This market has an extra growth potential of 10.1% which might be a sufficient niche market segment for Case Study Help. Not just would a portable dispenser deal benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wants to go with either of the two accessories or not.

Price: The suggested rate 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. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to acquire the product on his own.

Romeo Engine Plant would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Romeo Engine Plant for introducing Case Study Help.

Place: A distribution model where Romeo Engine Plant straight sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Romeo Engine Plant. Given that the sales team is already engaged in selling instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be pricey particularly as each sales call expenses approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable choice.

Promotion: Although a low advertising budget plan needs to have been assigned to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising plan costing $51816 is advised for initially introducing the product in the market. The prepared ads in magazines would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Romeo Engine Plant Case Study Analysis

A suggested strategy of action in the type of a marketing mix has been gone over for Case Study Help, the fact still stays that the product would not match Romeo Engine Plant item line. We take a look at appendix 2, we can see how the total gross success for the two designs is expected to be around $49377 if 250 systems of each model are made annually according to the strategy. The initial planned advertising is around $52000 per year which would be putting a pressure on the company's resources leaving Romeo Engine Plant with a negative net income if the costs are allocated to Case Study Help only.

The reality that Romeo Engine Plant has already incurred an initial investment of $48000 in the form of capital expense and prototype development shows that the revenue from Case Study Help is not enough to carry out the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a more suitable alternative particularly of it is affecting the sale of the company's earnings creating designs.