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Southland Corp B Case Study Solution
Southland Corp B Case Study Help
Southland Corp B Case Study Analysis
The following area focuses on the of marketing for Southland Corp B where the company's consumers, rivals and core proficiencies have actually assessed in order to justify whether the decision to introduce Case Study Help under Southland Corp B brand would be a practical option or not. We have actually to start with taken a look at the type of consumers that Southland Corp B handle while an evaluation of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Southland Corp B name.
Both the groups utilize Southland Corp B high efficiency adhesives while the business is not just involved in the production of these adhesives but also markets them to these customer 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 Southland Corp B compared to that of immediate adhesives.
The total market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Southland Corp B potential market or customer groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair work and overhauling business (MRO) and makers dealing in items made from leather, plastic, metal and wood. This variety in clients recommends that Southland Corp B can target has different alternatives in terms of segmenting the market for its brand-new product especially as each of these groups would be needing the exact same kind of item with respective changes in packaging, need or quantity. However, the consumer is not price sensitive or brand name conscious so releasing a low priced dispenser under Southland Corp B name is not a suggested alternative.
Southland Corp B is not simply a manufacturer of adhesives but delights in market leadership in the instant 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 assisting in the sale of adhesives. Southland Corp B believes in special circulation as indicated by the fact that it has actually picked to offer through 250 distributors whereas there is t a network of 10000 suppliers that can be explored for broadening reach via distributors. The company's reach is not limited to The United States and Canada only as it also takes pleasure in global sales. With 1400 outlets spread all throughout The United States and Canada, Southland Corp B has its in-house production plants rather than utilizing out-sourcing as the favored technique.
Core competences are not restricted to adhesive production only as Southland Corp B also focuses on making adhesive giving devices to assist in using its products. This double production strategy offers Southland Corp B an edge over rivals because none of the competitors of dispensing devices makes instantaneous adhesives. In addition, none of these rivals offers directly to the customer either and makes use of suppliers for connecting to consumers. While we are looking at the strengths of Southland Corp B, it is necessary to highlight the business's weaknesses also.
The company's sales staff is skilled 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. It should also be noted that the suppliers are revealing hesitation when it comes to offering equipment that requires maintenance which increases the challenges of selling equipment under a particular brand name.
If we look at Southland Corp B product line in adhesive equipment particularly, the business has actually products targeted at the high-end of the market. If Southland Corp B sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Southland Corp B high-end product line, sales cannibalization would absolutely be impacting Southland Corp B sales income if the adhesive equipment is sold under the business's brand name.
We can see sales cannibalization impacting Southland Corp B 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible danger which could lower Southland Corp B income. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
In addition, if we take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or price awareness which gives us 2 additional factors for not releasing a low priced item under the business's trademark name.
The competitive environment of Southland Corp B 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 purchaser in this market is low specifically as the purchaser has low understanding about the item. While business like Southland Corp B have managed to train suppliers relating to adhesives, the last consumer is dependent on suppliers. Around 72% of sales are made straight by makers and distributors 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 gamers, it could be said that the supplier takes pleasure in a higher bargaining power compared to the purchaser. Nevertheless, the fact remains that the provider does not have much impact over the purchaser at this moment specifically as the buyer does disappoint brand name recognition or price sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a significant control over the actual sales, this indicates that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instant adhesive market indicates that the marketplace enables ease of entry. If we look at Southland Corp B in particular, the company has double capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective risks in equipment giving market are low which reveals the possibility of developing brand name awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the market players has managed to position itself in dual capabilities.
Hazard of Substitutes: The danger of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Southland Corp B introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided different factors for not releasing Case Study Help under Southland Corp B name, we have actually a suggested marketing mix for Case Study Help offered below if Southland Corp B chooses to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an additional development capacity of 10.1% which might be an excellent enough specific niche market section for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. This price would not consist of the cost of the 'vari pointer' or the 'glumetic tip'. A cost below $250 would not require approvals from the senior management in case a mechanic at an automobile upkeep store needs to buy the item on his own. This would increase the possibility of influencing mechanics to purchase the item for use in their everyday upkeep jobs.
Southland Corp B would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Southland Corp B for introducing Case Study Help.
Place: A distribution design where Southland Corp B straight sends the product to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Southland Corp B. Since the sales team is already taken part in offering instantaneous adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be pricey especially as each sales call costs approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low advertising spending plan must have been assigned to Case Study Help however 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 recommended advertising plan costing $51816 is recommended for initially presenting the product in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
