The following section concentrates on the of marketing for Screen Microtech Inc where the company's customers, competitors and core competencies have assessed in order to justify whether the decision to launch Case Study Help under Screen Microtech Inc trademark name would be a possible alternative or not. We have actually first of all looked at the kind of clients that Screen Microtech Inc deals in while an examination of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Screen Microtech Inc name.
Screen Microtech Inc consumers can be segmented into two groups, final customers and industrial clients. Both the groups utilize Screen Microtech Inc high performance adhesives while the company is not only associated with the production of these adhesives but also markets them to these customer groups. There are 2 kinds of items that are being offered to these possible markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Screen Microtech Inc compared to that of instant adhesives.
The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Screen Microtech Inc possible market or client groups, we can see that the company offers to OEMs (Original Devices Makers), Do-it-Yourself clients, repair and overhauling business (MRO) and makers dealing in items made of leather, wood, plastic and metal. This diversity in clients suggests that Screen Microtech Inc can target has numerous choices in regards to segmenting the marketplace for its new product especially as each of these groups would be requiring the very same kind of product with particular changes in amount, product packaging or need. However, the customer is not cost sensitive or brand name mindful so introducing a low priced dispenser under Screen Microtech Inc name is not an advised alternative.
Screen Microtech Inc is not just a maker of adhesives however delights in market leadership in the instantaneous adhesive industry. The business has its own knowledgeable and certified sales force which adds worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive manufacturing just as Screen Microtech Inc likewise concentrates on making adhesive dispensing devices to assist in making use of its items. This dual production strategy provides Screen Microtech Inc an edge over competitors because none of the competitors of dispensing devices makes immediate adhesives. In addition, none of these rivals offers directly to the customer either and makes use of suppliers for connecting to consumers. While we are looking at the strengths of Screen Microtech Inc, it is essential to highlight the business's weak points.
The company's sales staff is experienced in training distributors, the truth remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It must likewise be kept in mind that the distributors are showing unwillingness when it comes to selling devices that needs maintenance which increases the difficulties of selling devices under a specific brand name.
If we look at Screen Microtech Inc product line in adhesive devices particularly, the company has actually items aimed at the high end of the marketplace. If Screen Microtech Inc sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Screen Microtech Inc high-end line of product, sales cannibalization would certainly be impacting Screen Microtech Inc sales profits if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization impacting Screen Microtech Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible threat which could reduce Screen Microtech Inc profits. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a good 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 immediate adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or rate consciousness which gives us 2 extra reasons for not launching a low priced product under the business's brand name.
The competitive environment of Screen Microtech Inc would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low knowledge about the item. While companies like Screen Microtech Inc have managed to train distributors relating to adhesives, the final customer is dependent on suppliers. Around 72% of sales are made straight by makers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by 3 gamers, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. The reality remains that the provider does not have much impact over the buyer at this point specifically as the buyer does not reveal brand recognition or price level of sensitivity. This suggests that the distributor has the greater power when it comes to the adhesive market while the manufacturer and the purchaser 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 rivals in the immediate adhesive market suggests that the market allows ease of entry. Nevertheless, if we look at Screen Microtech Inc in particular, the company has dual capabilities in terms of being a producer of adhesive dispensers and immediate adhesives. Possible threats in devices dispensing market are low which reveals the possibility of creating brand name awareness in not only instant adhesives however also in dispensing adhesives as none of the industry gamers has actually managed to place itself in dual abilities.
Hazard of Substitutes: The danger of substitutes 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 reality stays that if Screen Microtech Inc 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 actually given numerous factors for not launching Case Study Help under Screen Microtech Inc name, we have actually a recommended marketing mix for Case Study Help provided listed below if Screen Microtech Inc decides to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development capacity of 10.1% which may be an excellent enough niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can also be targeted if a potable 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 offered through distributors or by means of direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor automobile maintenance shop requires to buy the item on his own.
Screen Microtech Inc would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross profitability and net profitability for Screen Microtech Inc for releasing Case Study Help.
Place: A circulation model where Screen Microtech Inc directly sends out the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Screen Microtech Inc. Considering that the sales team is already engaged in offering instantaneous adhesives and they do not have proficiency in offering dispensers, involving them in the selling procedure would be expensive particularly as each sales call costs around $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: A low marketing spending plan ought to have been appointed 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 recommended for at first introducing the item in the market. The planned advertisements in publications would be targeted at mechanics in vehicle maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).