The following section focuses on the of marketing for Ska Sweden where the company's customers, rivals and core competencies have examined in order to validate whether the choice to introduce Case Study Help under Ska Sweden trademark name would be a practical choice or not. We have firstly taken a look at the type of clients that Ska Sweden handle while an evaluation of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Ska Sweden name.
Both the groups use Ska Sweden high efficiency adhesives while the company is not only included in the production of these adhesives but also markets them to these customer groups. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower potential for Ska Sweden compared to that of immediate adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Ska Sweden possible market or client groups, we can see that the company sells to OEMs (Original Devices Makers), Do-it-Yourself consumers, repair and overhauling business (MRO) and manufacturers handling items made from leather, plastic, metal and wood. This variety in consumers suggests that Ska Sweden can target has different options in terms of segmenting the market for its new product especially as each of these groups would be needing the same kind of item with particular changes in need, quantity or product packaging. However, the customer is not price delicate or brand name mindful so releasing a low priced dispenser under Ska Sweden name is not a recommended choice.
Ska Sweden is not just a producer of adhesives but delights in market leadership in the instant adhesive industry. The company has its own knowledgeable and competent sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive manufacturing only as Ska Sweden also specializes in making adhesive dispensing devices to assist in making use of its items. This double production strategy gives Ska Sweden an edge over competitors considering that none of the competitors of giving devices makes instantaneous adhesives. In addition, none of these rivals sells straight to the consumer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Ska Sweden, it is important to highlight the company's weaknesses.
The company's sales personnel is proficient in training suppliers, the reality stays that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It ought to also be kept in mind that the distributors are showing reluctance when it comes to selling equipment that requires servicing which increases the difficulties of selling equipment under a specific brand name.
If we take a look at Ska Sweden line of product in adhesive equipment particularly, the company has products focused on the high-end of the marketplace. If Ska Sweden offers 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 Ska Sweden high-end line of product, sales cannibalization would definitely be impacting Ska Sweden sales income if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Ska Sweden 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible danger which might lower Ska Sweden earnings. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for launching 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.
Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or price consciousness which provides us 2 additional reasons for not introducing a low priced item under the business's trademark name.
The competitive environment of Ska Sweden 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 especially as the purchaser has low knowledge about the item. While business like Ska Sweden have managed to train suppliers concerning adhesives, the last consumer depends on distributors. Roughly 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 fact that the adhesive market is dominated by 3 gamers, it could be stated that the supplier takes pleasure in a greater bargaining power compared to the buyer. The reality remains that the supplier does not have much influence over the buyer at this point particularly as the buyer does not show brand name recognition or cost level of sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the buyer and the producer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the market permits ease of entry. If we look at Ska Sweden in specific, the business has double capabilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible dangers in equipment giving industry are low which shows the possibility of developing brand awareness in not only instant adhesives but likewise in dispensing adhesives as none of the industry gamers has handled to place itself in dual abilities.
Hazard of Substitutes: The hazard of substitutes in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The truth stays that if Ska Sweden presented 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 different factors for not releasing Case Study Help under Ska Sweden name, we have a suggested marketing mix for Case Study Help provided below if Ska Sweden decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional development potential of 10.1% which may be an excellent enough specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the fact that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to buy the item on his own.
Ska Sweden would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Ska Sweden for launching Case Study Help.
Place: A circulation model where Ska Sweden directly sends the product to the local supplier and keeps a 10% drop delivery allowance for the distributor would be utilized by Ska Sweden. Considering that the sales group is already taken part in selling instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be costly particularly as each sales call expenses approximately $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget needs to have been assigned to Case Study Help but the fact 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 plan costing $51816 is recommended for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).