The following section focuses on the of marketing for Stevens And Company where the business's clients, competitors and core competencies have actually assessed in order to validate whether the decision to release Case Study Help under Stevens And Company trademark name would be a feasible alternative or not. We have actually firstly looked at the kind of customers that Stevens And Company handle while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Stevens And Company name.
Stevens And Company consumers can be segmented into two groups, final consumers and industrial consumers. Both the groups use Stevens And Company high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these client groups. There are 2 types of items that are being offered to these potential markets; immediate adhesives and anaerobic adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower capacity for Stevens And Company compared to that of immediate adhesives.
The overall market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been determined earlier.If we look at a breakdown of Stevens And Company potential market or client groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and producers dealing in products made from leather, plastic, wood and metal. This diversity in consumers suggests that Stevens And Company can target has numerous choices in terms of segmenting the marketplace for its new product specifically as each of these groups would be needing the very same kind of item with respective changes in amount, demand or packaging. The consumer is not cost sensitive or brand mindful so introducing a low priced dispenser under Stevens And Company name is not a suggested option.
Stevens And Company is not simply a maker of adhesives however delights in market leadership in the instant adhesive industry. The company has its own knowledgeable and certified sales force which adds 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 Stevens And Company likewise specializes in making adhesive dispensing equipment to facilitate the use of its items. This double production technique offers Stevens And Company an edge over competitors given that none of the rivals of dispensing devices makes instantaneous adhesives. Furthermore, none of these competitors offers directly to the customer either and uses distributors for reaching out to consumers. While we are looking at the strengths of Stevens And Company, it is crucial to highlight the business's weaknesses.
The company's sales personnel is knowledgeable in training suppliers, the fact remains that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. It should also be noted that the suppliers are revealing unwillingness when it comes to selling equipment that requires maintenance which increases the difficulties of offering devices under a specific brand name.
If we look at Stevens And Company product line in adhesive devices particularly, the company has items aimed at the high-end of the marketplace. If Stevens And Company 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 Stevens And Company high-end product line, sales cannibalization would absolutely be impacting Stevens And Company sales revenue if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Stevens And Company 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible danger which might decrease Stevens And Company earnings. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for introducing a dispenser which can highlight the fact 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 disappoint brand name orientation or price consciousness which offers us two extra factors for not introducing a low priced item under the company's brand.
The competitive environment of Stevens And Company would be studied via 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 market is low particularly as the purchaser has low understanding about the product. While business like Stevens And Company have actually handled to train suppliers regarding adhesives, the final customer is dependent on distributors. Roughly 72% of sales are made directly by producers and distributors for immediate adhesives so the purchaser 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 provider takes pleasure in a greater bargaining power compared to the buyer. The fact remains that the provider does not have much influence over the buyer at this point especially as the buyer does not show brand name recognition or cost level of sensitivity. This indicates that the distributor has the higher power when it pertains to the adhesive market while the buyer and the manufacturer do not have a significant 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 competitors in the immediate adhesive market indicates that the market allows ease of entry. However, if we look at Stevens And Company in particular, the company has double capabilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Potential hazards in equipment dispensing market are low which shows the possibility of developing brand awareness in not just immediate adhesives but likewise in giving adhesives as none of the market gamers has handled to position itself in double capabilities.
Risk of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact remains that if Stevens And Company introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually given different factors for not launching Case Study Help under Stevens And Company name, we have a suggested marketing mix for Case Study Help provided listed below if Stevens And Company decides to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional development potential of 10.1% which might be a good sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the fact that the Diy 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 offered through suppliers or by means of direct selling. This rate would not consist of the cost of the 'vari pointer' or the 'glumetic idea'. A cost below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop needs to acquire the product on his own. This would increase the possibility of influencing mechanics to buy the product for use in their daily upkeep jobs.
Stevens And Company would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Stevens And Company for introducing Case Study Help.
Place: A distribution design where Stevens And Company directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Stevens And Company. Given that the sales group is already engaged in offering immediate adhesives and they do not have competence in offering dispensers, including them in the selling process would be costly particularly as each sales call expenses approximately $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low advertising budget ought to have been designated to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing strategy costing $51816 is recommended for at first presenting the item in the market. The planned advertisements in publications would be targeted at mechanics in car maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).