WhatsApp 
Southland Corp C Case Study Solution
Southland Corp C Case Study Help
Southland Corp C Case Study Analysis
The following area concentrates on the of marketing for Southland Corp C where the business's consumers, competitors and core competencies have actually evaluated in order to validate whether the choice to release Case Study Help under Southland Corp C brand name would be a possible alternative or not. We have first of all looked at the kind of clients that Southland Corp C deals in while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Southland Corp C name.
Both the groups utilize Southland Corp C high efficiency adhesives while the business is not only included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the consumers of immediate adhesives for this analysis given that the market for the latter has a lower potential for Southland Corp C compared to that of immediate adhesives.
The overall market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been determined earlier.If we look at a breakdown of Southland Corp C potential market or customer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and manufacturers dealing in items made from leather, metal, plastic and wood. This variety in consumers suggests that Southland Corp C can target has numerous options in terms of segmenting the marketplace for its brand-new product particularly as each of these groups would be needing the very same kind of item with respective changes in quantity, packaging or demand. However, the client is not rate sensitive or brand name mindful so introducing a low priced dispenser under Southland Corp C name is not a suggested option.
Southland Corp C is not simply a producer of adhesives however delights in market management in the instant adhesive industry. The company has its own skilled and competent sales force which includes value to sales by training the company's network of 250 suppliers for assisting in the sale of adhesives.
Core proficiencies are not restricted to adhesive production only as Southland Corp C also concentrates on making adhesive dispensing devices to facilitate the use of its items. This dual production technique provides Southland Corp C an edge over competitors considering that none of the competitors of giving equipment makes immediate adhesives. Furthermore, none of these rivals sells straight to the consumer either and makes use of distributors for reaching out to clients. While we are taking a look at the strengths of Southland Corp C, it is necessary to highlight the business's weak points as well.
The company's sales staff is experienced in training suppliers, 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. However, it needs to also be noted that the distributors are revealing unwillingness when it concerns offering devices that needs servicing which increases the obstacles of selling devices under a particular brand.
If we look at Southland Corp C line of product in adhesive devices particularly, the business has products aimed at the high-end of the market. The possibility of sales cannibalization exists if Southland Corp C sells Case Study Help under the exact same portfolio. Provided the fact that Case Study Help is priced lower than Southland Corp C high-end line of product, sales cannibalization would absolutely be affecting Southland Corp C sales revenue if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization affecting Southland Corp C 27A Pencil Applicator which is priced at $275. There is another possible hazard which could decrease Southland Corp C income if Case Study Help is launched under the company's brand name. The truth that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for releasing a dispenser which can highlight the fact 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 marketplace in general, the adhesives market does not show brand name orientation or price consciousness which provides us two extra factors for not launching a low priced product under the company's brand.
The competitive environment of Southland Corp C would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the purchaser has low understanding about the item. While business like Southland Corp C have actually managed to train suppliers concerning adhesives, the final consumer depends on suppliers. Around 72% of sales are made straight by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 players, it could be stated that the supplier enjoys a higher bargaining power compared to the buyer. Nevertheless, the reality remains that the provider does not have much impact over the buyer at this point especially as the buyer does not show brand name acknowledgment or cost sensitivity. This indicates that the distributor has the greater power when it comes to the adhesive market while the buyer and the manufacturer 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 revealed by foreign Japanese rivals in the instantaneous adhesive market indicates that the market allows ease of entry. Nevertheless, if we take a look at Southland Corp C in particular, the company has dual capabilities in regards to being a producer of adhesive dispensers and instantaneous adhesives. Prospective dangers in devices dispensing market are low which shows the possibility of producing brand awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has managed to place itself in double abilities.
Risk of Substitutes: The risk of replacements in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Southland Corp C presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given various reasons for not releasing Case Study Help under Southland Corp C name, we have actually a suggested marketing mix for Case Study Help offered below if Southland Corp C decides to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of reasons. 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 just 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.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep store requires to purchase the item on his own.
Southland Corp C would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Southland Corp C for releasing Case Study Help.
Place: A circulation design where Southland Corp C directly sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Southland Corp C. Since the sales team is currently engaged in offering instant adhesives and they do not have expertise in selling dispensers, involving them in the selling process would be costly especially as each sales call expenses approximately $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low marketing budget plan needs to 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 expenses sustained for production, the recommended marketing strategy costing $51816 is suggested for initially presenting the item in the market. The prepared ads in publications would be targeted at mechanics in automobile upkeep stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
