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Screen Microtech Inc Case Study Solution
Screen Microtech Inc Case Study Help
Screen Microtech Inc Case Study Analysis
The following area focuses on the of marketing for Screen Microtech Inc where the company's consumers, competitors and core competencies have actually assessed in order to validate whether the choice to release Case Study Help under Screen Microtech Inc trademark name would be a possible choice or not. We have actually firstly looked at the type of clients that Screen Microtech Inc handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Screen Microtech Inc name.
Both the groups utilize Screen Microtech Inc high performance adhesives while the company is not just included in the production of these adhesives however likewise markets them to these customer 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 Screen Microtech Inc compared to that of immediate adhesives.
The overall market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Screen Microtech Inc potential market or consumer groups, we can see that the business sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair work and overhauling business (MRO) and manufacturers dealing in products made of leather, wood, metal and plastic. This diversity in customers suggests that Screen Microtech Inc can target has various alternatives in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be requiring the same kind of product with respective modifications in packaging, demand or quantity. The client is not rate delicate or brand name mindful so launching a low priced dispenser under Screen Microtech Inc name is not a suggested alternative.
Screen Microtech Inc is not simply a manufacturer of adhesives however takes pleasure in market management in the immediate adhesive industry. The company has its own experienced and competent sales force which adds worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.
Core skills are not limited to adhesive manufacturing just as Screen Microtech Inc also specializes in making adhesive dispensing devices to help with the use of its items. This dual production technique provides Screen Microtech Inc an edge over rivals given that none of the competitors of giving devices makes instantaneous adhesives. In addition, none of these competitors offers directly to the customer either and makes use of distributors for connecting to clients. While we are taking a look at the strengths of Screen Microtech Inc, it is important to highlight the business's weak points too.
The business's sales personnel is experienced in training distributors, the truth stays that the sales team is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. Nevertheless, it ought to also be noted that the distributors are revealing hesitation when it concerns selling devices that requires servicing which increases the obstacles of offering equipment under a particular brand name.
If we take a look at Screen Microtech Inc line of product in adhesive equipment especially, the business has actually products targeted at the luxury of the marketplace. If Screen Microtech Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Screen Microtech Inc high-end product line, sales cannibalization would absolutely be affecting Screen Microtech Inc sales income if the adhesive devices is offered under the business's brand.
We can see sales cannibalization affecting Screen Microtech Inc 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Screen Microtech Inc earnings if Case Study Help is released under the company's trademark name. The truth that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good 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 immediate adhesive.
In addition, if we look at the market in general, the adhesives market does disappoint brand orientation or price awareness which provides us two extra reasons for not launching a low priced item under the company's brand name.
The competitive environment of Screen Microtech Inc would be studied through Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the purchaser has low knowledge about the item. While business like Screen Microtech Inc have actually managed to train suppliers relating to adhesives, the final customer depends on suppliers. Around 72% of sales are made directly by producers and suppliers for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by three players, it could be stated that the provider delights in a greater bargaining power compared to the purchaser. However, the fact remains that the supplier does not have much influence over the buyer at this moment especially as the buyer does not show brand recognition or rate level of sensitivity. This indicates that the distributor has the higher power when it pertains to the adhesive market while the producer and the buyer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace permits ease of entry. If we look at Screen Microtech Inc in specific, the company has double abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Possible threats in equipment giving market are low which reveals the possibility of developing brand name awareness in not only instant adhesives however also in dispensing adhesives as none of the market players has managed to position itself in dual abilities.
Hazard of Substitutes: The hazard of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Screen Microtech Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided numerous factors for not releasing Case Study Help under Screen Microtech Inc name, we have actually a suggested marketing mix for Case Study Help provided listed below if Screen Microtech Inc chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an extra growth potential of 10.1% which may be an excellent adequate specific niche market segment for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the truth that the Diy market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance store requires to buy the item on his own.
Screen Microtech Inc would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net profitability for Screen Microtech Inc for launching Case Study Help.
Place: A distribution model where Screen Microtech Inc straight sends out the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be used by Screen Microtech Inc. Considering that the sales group is already participated in selling immediate adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be costly especially as each sales call costs approximately $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low advertising spending plan needs to have been assigned to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested marketing strategy costing $51816 is advised for initially presenting the item in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
