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Smart Union Group Holdings Limited A Short Toy Story Case Study Help Checklist

Smart Union Group Holdings Limited A Short Toy Story Case Study Help Checklist

Smart Union Group Holdings Limited A Short Toy Story Case Study Solution
Smart Union Group Holdings Limited A Short Toy Story Case Study Help
Smart Union Group Holdings Limited A Short Toy Story Case Study Analysis



Analyses for Evaluating Smart Union Group Holdings Limited A Short Toy Story decision to launch Case Study Solution


The following area concentrates on the of marketing for Smart Union Group Holdings Limited A Short Toy Story where the business's customers, rivals and core competencies have evaluated in order to justify whether the choice to introduce Case Study Help under Smart Union Group Holdings Limited A Short Toy Story trademark name would be a practical alternative or not. We have first of all taken a look at the kind of customers that Smart Union Group Holdings Limited A Short Toy Story deals in while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Smart Union Group Holdings Limited A Short Toy Story name.
Smart Union Group Holdings Limited A Short Toy Story Case Study Solution

Customer Analysis

Smart Union Group Holdings Limited A Short Toy Story clients can be segmented into 2 groups, commercial customers and final customers. Both the groups use Smart Union Group Holdings Limited A Short Toy Story high performance adhesives while the company is not just associated with the production of these adhesives however likewise markets them to these customer groups. There are 2 kinds of items that are being sold to these prospective markets; anaerobic adhesives and instant adhesives. We would be concentrating on the customers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Smart Union Group Holdings Limited A Short Toy Story compared to that of immediate adhesives.

The total market for immediate adhesives is around 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Smart Union Group Holdings Limited A Short Toy Story potential market or customer groups, we can see that the company offers to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair work and overhauling companies (MRO) and producers handling products made of leather, wood, plastic and metal. This diversity in customers recommends that Smart Union Group Holdings Limited A Short Toy Story can target has numerous alternatives in terms of segmenting the market for its new item especially as each of these groups would be requiring the very same kind of item with respective modifications in amount, packaging or demand. Nevertheless, the client is not rate sensitive or brand conscious so introducing a low priced dispenser under Smart Union Group Holdings Limited A Short Toy Story name is not a recommended choice.

Company Analysis

Smart Union Group Holdings Limited A Short Toy Story is not just a maker of adhesives however takes pleasure in market management in the immediate adhesive market. The business has its own competent and competent sales force which adds value to sales by training the company's network of 250 distributors for helping with the sale of adhesives. Smart Union Group Holdings Limited A Short Toy Story believes in exclusive circulation as suggested by the reality that it has picked to offer through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach via distributors. The company's reach is not limited to North America only as it likewise enjoys global sales. With 1400 outlets spread out all throughout North America, Smart Union Group Holdings Limited A Short Toy Story has its in-house production plants rather than utilizing out-sourcing as the preferred strategy.

Core competences are not limited to adhesive production just as Smart Union Group Holdings Limited A Short Toy Story also concentrates on making adhesive giving devices to facilitate the use of its products. This dual production method gives Smart Union Group Holdings Limited A Short Toy Story an edge over rivals given that none of the competitors of dispensing equipment makes instant adhesives. Furthermore, none of these rivals sells directly to the consumer either and uses distributors for reaching out to clients. While we are taking a look at the strengths of Smart Union Group Holdings Limited A Short Toy Story, it is necessary to highlight the business's weaknesses too.

The business's sales staff is competent in training distributors, the fact stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it must also be kept in mind that the distributors are showing unwillingness when it pertains to selling equipment that needs servicing which increases the difficulties of offering equipment under a particular brand.

If we take a look at Smart Union Group Holdings Limited A Short Toy Story line of product in adhesive devices especially, the company has items focused on the high-end of the marketplace. The possibility of sales cannibalization exists if Smart Union Group Holdings Limited A Short Toy Story sells Case Study Help under the same portfolio. Given the reality that Case Study Help is priced lower than Smart Union Group Holdings Limited A Short Toy Story high-end line of product, sales cannibalization would absolutely be impacting Smart Union Group Holdings Limited A Short Toy Story sales earnings if the adhesive devices is offered under the business's trademark name.

We can see sales cannibalization impacting Smart Union Group Holdings Limited A Short Toy Story 27A Pencil Applicator which is priced at $275. There is another possible danger which could reduce Smart Union Group Holdings Limited A Short Toy Story profits if Case Study Help is launched under the business's brand. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great 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 marketplace in general, the adhesives market does disappoint brand orientation or price awareness which provides us 2 extra reasons for not introducing a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Smart Union Group Holdings Limited A Short Toy Story would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high development capacity due to the existence of fragmented segments with Smart Union Group Holdings Limited A Short Toy Story delighting in leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While market competition between these gamers could be called 'extreme' as the customer is not brand name mindful and each of these gamers has prominence in terms of market share, the fact still remains that the industry is not filled and still has a number of market sectors which can be targeted as possible specific niche markets even when releasing an adhesive. Nevertheless, we can even point out the reality that sales cannibalization may be resulting in market competition in the adhesive dispenser market while the market for immediate adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low understanding about the item. While companies like Smart Union Group Holdings Limited A Short Toy Story have handled to train distributors concerning adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made directly by producers and distributors for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by 3 gamers, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. The truth remains that the supplier does not have much impact over the buyer at this point especially as the buyer does not reveal brand name recognition or cost level of sensitivity. This shows that the supplier has the greater power when it concerns the adhesive market while the maker 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 revealed by foreign Japanese rivals in the instant adhesive market suggests that the market allows ease of entry. If we look at Smart Union Group Holdings Limited A Short Toy Story in specific, the business has dual capabilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective hazards in devices dispensing industry are low which reveals the possibility of creating brand name awareness in not only instantaneous adhesives however likewise in giving adhesives as none of the industry players has managed to position itself in dual abilities.

Risk of Substitutes: The threat of alternatives in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality remains that if Smart Union Group Holdings Limited A Short Toy Story introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).


4 P Analysis: A suggested Marketing Mix for Case Study Help

Smart Union Group Holdings Limited A Short Toy Story Case Study Help


Despite the fact that our 3C analysis has provided various reasons for not launching Case Study Help under Smart Union Group Holdings Limited A Short Toy Story name, we have a suggested marketing mix for Case Study Help provided listed below if Smart Union Group Holdings Limited A Short Toy Story chooses to go ahead with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 establishments in this segment and a high use of roughly 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which might be a good enough niche market section for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the truth that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wants to go with either of the two devices or not.

Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor automobile maintenance shop requires to buy the item on his own.

Smart Union Group Holdings Limited A Short Toy Story would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Smart Union Group Holdings Limited A Short Toy Story for introducing Case Study Help.

Place: A distribution design where Smart Union Group Holdings Limited A Short Toy Story directly sends the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Smart Union Group Holdings Limited A Short Toy Story. Given that the sales team is currently taken part in offering instant adhesives and they do not have expertise in selling dispensers, including them in the selling procedure would be expensive particularly as each sales call expenses roughly $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: Although a low promotional budget should have been appointed to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended marketing strategy costing $51816 is advised for initially presenting the item in the market. The planned advertisements in magazines would be targeted at mechanics in automobile maintenance stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Smart Union Group Holdings Limited A Short Toy Story Case Study Analysis

A recommended strategy of action in the kind of a marketing mix has actually been talked about for Case Study Help, the reality still remains that the product would not match Smart Union Group Holdings Limited A Short Toy Story item line. We take a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be roughly $49377 if 250 units of each design are made per year according to the plan. The initial planned marketing is approximately $52000 per year which would be putting a stress on the company's resources leaving Smart Union Group Holdings Limited A Short Toy Story with a negative net income if the costs are designated to Case Study Help only.

The fact that Smart Union Group Holdings Limited A Short Toy Story has currently sustained an initial investment of $48000 in the form of capital cost and prototype development suggests that the revenue from Case Study Help is inadequate to undertake the threat of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a preferable alternative especially of it is impacting the sale of the business's income creating designs.



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