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Shun Electronics Company Case Study Solution
Shun Electronics Company Case Study Help
Shun Electronics Company Case Study Analysis
The following section focuses on the of marketing for Shun Electronics Company where the company's customers, rivals and core proficiencies have actually assessed in order to validate whether the decision to introduce Case Study Help under Shun Electronics Company trademark name would be a possible option or not. We have to start with looked at the kind of clients that Shun Electronics Company deals in while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Shun Electronics Company name.
Both the groups utilize Shun Electronics Company high performance adhesives while the company is not only involved 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 because the market for the latter has a lower capacity for Shun Electronics Company compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Shun Electronics Company prospective market or consumer groups, we can see that the company offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair and upgrading business (MRO) and manufacturers dealing in items made from leather, wood, plastic and metal. This diversity in customers suggests that Shun Electronics Company can target has various options in regards to segmenting the market for its brand-new product especially as each of these groups would be requiring the very same kind of item with particular modifications in product packaging, quantity or need. However, the client is not cost delicate or brand conscious so launching a low priced dispenser under Shun Electronics Company name is not a suggested option.
Shun Electronics Company is not just a manufacturer of adhesives however delights in market leadership in the immediate adhesive market. The business has its own knowledgeable and competent sales force which includes value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.
Core skills are not limited to adhesive production only as Shun Electronics Company also focuses on making adhesive dispensing devices to facilitate the use of its products. This double production method offers Shun Electronics Company an edge over rivals considering that none of the rivals of dispensing equipment makes instant adhesives. Additionally, none of these competitors sells directly to the consumer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Shun Electronics Company, it is very important to highlight the company's weaknesses also.
Although the business's sales staff is competent in training distributors, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It needs to likewise be noted that the distributors are revealing hesitation when it comes to offering devices that needs maintenance which increases the obstacles of offering devices under a particular brand name.
The company has products intended at the high end of the market if we look at Shun Electronics Company item line in adhesive equipment particularly. If Shun Electronics Company offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Shun Electronics Company high-end line of product, sales cannibalization would definitely be affecting Shun Electronics Company sales income if the adhesive equipment is sold under the business's brand.
We can see sales cannibalization affecting Shun Electronics Company 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible threat which could reduce Shun Electronics Company income. The fact that $175000 has actually been invested in promoting SuperBonder recommends 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 instant adhesive.
Furthermore, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or cost awareness which gives us 2 extra reasons for not releasing a low priced product under the company's brand name.
The competitive environment of Shun Electronics Company would be studied via 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 Shun Electronics Company have managed to train suppliers regarding adhesives, the final consumer depends on suppliers. Around 72% of sales are made directly by manufacturers and distributors for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 players, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the buyer. Nevertheless, the truth stays that the supplier does not have much impact over the buyer at this point especially as the purchaser does not show brand name acknowledgment or rate sensitivity. This shows that the supplier has the greater power when it pertains to the adhesive market while the maker and the purchaser do not have a significant control over the actual 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 instant adhesive market shows that the marketplace enables ease of entry. However, if we take a look at Shun Electronics Company in particular, the company has dual abilities in regards to being a manufacturer of adhesive dispensers and instant adhesives. Potential dangers in equipment dispensing market are low which reveals the possibility of creating brand name awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has handled to place itself in dual capabilities.
Hazard of Substitutes: The risk of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The fact stays that if Shun Electronics Company presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided different factors for not launching Case Study Help under Shun Electronics Company name, we have a suggested marketing mix for Case Study Help offered listed below if Shun Electronics Company decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional development potential of 10.1% which may be a great adequate specific niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the reality that the Diy market can likewise be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through distributors or via direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance shop needs to buy the item on his own.
Shun Electronics Company would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Shun Electronics Company for releasing Case Study Help.
Place: A distribution model where Shun Electronics Company directly sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Shun Electronics Company. Since the sales group is already participated in offering instantaneous adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be expensive particularly as each sales call costs approximately $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low advertising budget plan should have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing strategy costing $51816 is recommended for at first introducing the product in the market. The planned ads in magazines would be targeted at mechanics in automobile upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).
