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Silver Lane Apartments Case Study Solution
Silver Lane Apartments Case Study Help
Silver Lane Apartments Case Study Analysis
The following section focuses on the of marketing for Silver Lane Apartments where the company's customers, rivals and core competencies have examined in order to validate whether the choice to release Case Study Help under Silver Lane Apartments brand name would be a practical choice or not. We have to start with looked at the kind of consumers that Silver Lane Apartments handle while an assessment of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Silver Lane Apartments name.
Both the groups use Silver Lane Apartments high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Silver Lane Apartments compared to that of instant adhesives.
The overall market for instant adhesives is approximately 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 Silver Lane Apartments potential market or client groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair work and overhauling business (MRO) and manufacturers dealing in products made from leather, wood, metal and plastic. This variety in customers recommends that Silver Lane Apartments can target has numerous options in regards to segmenting the marketplace for its new item specifically as each of these groups would be needing the exact same kind of item with particular modifications in amount, need or product packaging. The consumer is not rate delicate or brand name mindful so introducing a low priced dispenser under Silver Lane Apartments name is not a suggested choice.
Silver Lane Apartments is not simply a maker of adhesives but takes pleasure in market leadership in the immediate adhesive industry. The business has its own proficient and competent sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.
Core skills are not restricted to adhesive manufacturing just as Silver Lane Apartments likewise focuses on making adhesive dispensing devices to facilitate the use of its products. This double production technique gives Silver Lane Apartments an edge over competitors since none of the competitors of giving devices makes instant adhesives. Additionally, none of these competitors offers straight to the customer either and uses suppliers for reaching out to customers. While we are looking at the strengths of Silver Lane Apartments, it is important to highlight the company's weak points.
Although the business's sales personnel is proficient in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. Nevertheless, it should likewise be noted that the distributors are revealing reluctance when it concerns offering equipment that requires servicing which increases the difficulties of offering equipment under a specific trademark name.
The company has items intended at the high end of the market if we look at Silver Lane Apartments product line in adhesive equipment especially. If Silver Lane Apartments offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Silver Lane Apartments high-end product line, sales cannibalization would absolutely be affecting Silver Lane Apartments sales revenue if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization impacting Silver Lane Apartments 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Silver Lane Apartments earnings if Case Study Help is launched under the company's brand name. The fact that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for launching 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 disappoint brand name orientation or cost awareness which offers us 2 additional reasons for not launching a low priced product under the company's brand name.
The competitive environment of Silver Lane Apartments would be studied through 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 especially as the buyer has low understanding about the product. While business like Silver Lane Apartments have handled to train distributors concerning adhesives, the last consumer depends on suppliers. Around 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three players, it could be stated that the provider delights in a greater bargaining power compared to the buyer. The reality stays that the provider does not have much influence over the purchaser at this point especially as the buyer does not reveal brand name acknowledgment or price level of sensitivity. This shows that the distributor has the greater power when it pertains to the adhesive market while the manufacturer and the buyer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market indicates that the market enables ease of entry. If we look at Silver Lane Apartments in particular, the business has dual abilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Prospective hazards in devices giving market are low which shows the possibility of creating brand awareness in not only instant adhesives however also in giving adhesives as none of the industry gamers has actually managed to place itself in double capabilities.
Danger of Substitutes: The danger of substitutes in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Silver Lane Apartments introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given numerous factors for not introducing Case Study Help under Silver Lane Apartments name, we have actually a recommended marketing mix for Case Study Help offered listed below if Silver Lane Apartments chooses to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a variety of factors. There are presently 89257 establishments in this sector and a high use of roughly 58900 lbs. is being utilized by 36.1 % of the market. This market has an additional growth capacity of 10.1% which might be a good enough niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wants to select either of the two accessories or not.
Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance store requires to acquire the product on his own.
Silver Lane Apartments would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Silver Lane Apartments for launching Case Study Help.
Place: A circulation model where Silver Lane Apartments straight sends the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Silver Lane Apartments. Considering that the sales team is already participated in offering instantaneous adhesives and they do not have proficiency in offering dispensers, including them in the selling procedure would be costly particularly as each sales call costs roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional spending plan must have been designated to Case Study Help however the truth 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 plan costing $51816 is suggested for initially introducing the product in the market. The planned ads in publications would be targeted at mechanics in car maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
