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Safecard Services Inc Case Study Solution
Safecard Services Inc Case Study Help
Safecard Services Inc Case Study Analysis
The following area focuses on the of marketing for Safecard Services Inc where the company's clients, rivals and core competencies have actually examined in order to validate whether the decision to release Case Study Help under Safecard Services Inc brand name would be a feasible choice or not. We have firstly looked at the type of consumers that Safecard Services Inc deals in while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Safecard Services Inc name.
Both the groups use Safecard Services Inc high performance adhesives while the business is not only included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower potential for Safecard Services Inc compared to that of immediate adhesives.
The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we look at a breakdown of Safecard Services Inc potential market or consumer groups, we can see that the business offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair work and revamping business (MRO) and producers handling products made of leather, plastic, wood and metal. This diversity in consumers suggests that Safecard Services Inc can target has numerous alternatives in regards to segmenting the marketplace for its brand-new item especially as each of these groups would be needing the exact same kind of product with respective changes in product packaging, amount or demand. Nevertheless, the consumer is not rate delicate or brand name conscious so launching a low priced dispenser under Safecard Services Inc name is not a recommended option.
Safecard Services Inc is not just a maker of adhesives but delights in market leadership in the instantaneous adhesive market. The business has its own knowledgeable and certified sales force which adds 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 Safecard Services Inc also focuses on making adhesive giving devices to assist in making use of its items. This double production strategy offers Safecard Services Inc an edge over competitors because none of the competitors of giving equipment makes instant adhesives. Furthermore, none of these rivals offers directly to the consumer either and utilizes distributors for reaching out to clients. While we are looking at the strengths of Safecard Services Inc, it is very important to highlight the business's weaknesses also.
Although the business's sales personnel is knowledgeable in training suppliers, the reality remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It must also be noted that the suppliers are revealing unwillingness when it comes to offering devices that needs maintenance which increases the challenges of selling devices under a specific brand name.
The business has items aimed at the high end of the market if we look at Safecard Services Inc product line in adhesive equipment particularly. If Safecard Services Inc offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Safecard Services Inc high-end product line, sales cannibalization would absolutely be affecting Safecard Services Inc sales profits if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Safecard Services Inc 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Safecard Services Inc revenue if Case Study Help is released under the business's brand. The reality that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for releasing 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.
Additionally, if we look at the market in general, the adhesives market does disappoint brand orientation or rate awareness which provides us 2 additional factors for not launching a low priced product under the company's brand.
The competitive environment of Safecard Services Inc would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low specifically as the buyer has low knowledge about the product. While companies like Safecard Services Inc have actually handled to train distributors concerning adhesives, the last consumer depends on distributors. Roughly 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is controlled by three players, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The reality remains that the supplier does not have much impact over the buyer at this point particularly as the purchaser does not show brand acknowledgment or price sensitivity. This suggests that the distributor has the greater power when it concerns 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 loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market suggests that the marketplace allows ease of entry. If we look at Safecard Services Inc in particular, the company has dual abilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential risks in devices giving market are low which reveals the possibility of creating brand name awareness in not only instantaneous adhesives however also in giving adhesives as none of the industry gamers has actually handled to position itself in double capabilities.
Danger of Substitutes: The risk of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact remains that if Safecard Services Inc presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given numerous factors for not releasing Case Study Help under Safecard Services Inc name, we have a suggested marketing mix for Case Study Help provided listed below if Safecard Services Inc chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a number of factors. There are presently 89257 establishments in this segment and a high usage of around 58900 pounds. is being used by 36.1 % of the market. This market has an additional growth potential of 10.1% which may be a sufficient specific niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the truth that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The item would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can choose whether he wishes to select either of the two devices or not.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This cost would not consist of the expense of the 'vari suggestion' or the 'glumetic pointer'. A rate listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance store needs to buy the product on his own. This would increase the possibility of affecting mechanics to purchase the product for use in their daily upkeep tasks.
Safecard Services Inc would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net success for Safecard Services Inc for introducing Case Study Help.
Place: A circulation design where Safecard Services Inc straight sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Safecard Services Inc. Since the sales group is already engaged in selling instant adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be pricey particularly as each sales call costs around $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: A low marketing spending plan should have been designated to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is advised for initially presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in car upkeep stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
