The following area focuses on the of marketing for Southern State University Health System where the business's clients, competitors and core competencies have assessed in order to validate whether the choice to release Case Study Help under Southern State University Health System brand name would be a feasible option or not. We have actually to start with taken a look at the kind of consumers that Southern State University Health System deals in while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Southern State University Health System name.
Southern State University Health System clients can be segmented into 2 groups, industrial consumers and last consumers. Both the groups utilize Southern State University Health System high performance adhesives while the company is not only associated with the production of these adhesives however also markets them to these consumer groups. There are two types of items that are being sold to these possible markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the customers of immediate adhesives for this analysis given that the marketplace for the latter has a lower potential for Southern State University Health System compared to that of instantaneous adhesives.
The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Southern State University Health System potential market or customer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself customers, repair work and upgrading business (MRO) and makers dealing in products made from leather, wood, metal and plastic. This diversity in customers suggests that Southern State University Health System can target has different alternatives in terms of segmenting the market for its brand-new product specifically as each of these groups would be needing the exact same type of product with particular modifications in amount, demand or packaging. Nevertheless, the consumer is not price delicate or brand name mindful so introducing a low priced dispenser under Southern State University Health System name is not a suggested choice.
Southern State University Health System is not just a maker of adhesives but enjoys market leadership in the instant adhesive industry. The business has its own knowledgeable and certified sales force which adds 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 just as Southern State University Health System also concentrates on making adhesive dispensing equipment to facilitate making use of its items. This double production strategy offers Southern State University Health System an edge over rivals considering that none of the rivals of giving devices makes instantaneous adhesives. Furthermore, none of these competitors sells directly to the customer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Southern State University Health System, it is important to highlight the business's weaknesses.
The company's sales personnel is experienced in training distributors, the truth remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it needs to likewise be kept in mind that the distributors are showing reluctance when it concerns selling devices that needs servicing which increases the difficulties of offering devices under a particular brand.
The business has actually items intended at the high end of the market if we look at Southern State University Health System item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Southern State University Health System offers Case Study Help under the same portfolio. Offered the fact that Case Study Help is priced lower than Southern State University Health System high-end product line, sales cannibalization would definitely be impacting Southern State University Health System sales revenue if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Southern State University Health System 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible hazard which might decrease Southern State University Health System income. The fact that $175000 has been invested in promoting SuperBonder recommends 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 instantaneous adhesive.
In addition, if we look at the market in general, the adhesives market does not show brand name orientation or price awareness which provides us 2 additional factors for not releasing a low priced product under the company's trademark name.
The competitive environment of Southern State University Health System would be studied through Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the buyer has low knowledge about the item. While companies like Southern State University Health System have actually managed to train suppliers relating to adhesives, the final customer depends on distributors. Roughly 72% of sales are made straight by manufacturers and distributors for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 players, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. Nevertheless, the reality stays that the supplier does not have much influence over the purchaser at this point particularly as the buyer does disappoint brand name recognition or price level of sensitivity. This suggests that the supplier has the greater power when it pertains to the adhesive market while the producer and the buyer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market indicates that the market permits ease of entry. Nevertheless, if we look at Southern State University Health System in particular, the company has dual capabilities in regards to being a producer of adhesive dispensers and immediate adhesives. Prospective dangers in equipment giving market are low which reveals the possibility of producing brand name awareness in not just instantaneous adhesives but likewise in dispensing adhesives as none of the market gamers has actually managed to position itself in dual abilities.
Danger of Substitutes: The hazard of alternatives 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 advanced consoles. The fact remains that if Southern State University Health System introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has offered various factors for not introducing Case Study Help under Southern State University Health System name, we have actually a recommended marketing mix for Case Study Help offered listed below if Southern State University Health System decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development capacity of 10.1% which might be a good adequate 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 potable low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold 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 vehicle maintenance shop needs to purchase the item on his own.
Southern State University Health System would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Southern State University Health System for launching Case Study Help.
Place: A distribution model where Southern State University Health System directly sends the item to the regional distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Southern State University Health System. Since the sales team is currently taken part in offering immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be expensive especially as each sales call expenses approximately $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low marketing budget plan must 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 costs incurred for production, the suggested advertising plan costing $51816 is recommended for at first presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in lorry upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).