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Strong Tie Ltd Case Study Help Checklist

Strong Tie Ltd Case Study Help Checklist

Strong Tie Ltd Case Study Solution
Strong Tie Ltd Case Study Help
Strong Tie Ltd Case Study Analysis



Analyses for Evaluating Strong Tie Ltd decision to launch Case Study Solution


The following section focuses on the of marketing for Strong Tie Ltd where the company's customers, rivals and core proficiencies have evaluated in order to validate whether the decision to release Case Study Help under Strong Tie Ltd brand name would be a possible alternative or not. We have actually to start with looked at the type of consumers that Strong Tie Ltd handle while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Strong Tie Ltd name.
Strong Tie Ltd Case Study Solution

Customer Analysis

Strong Tie Ltd consumers can be segmented into two groups, industrial clients and final customers. Both the groups utilize Strong Tie Ltd high performance adhesives while the company is not just involved in the production of these adhesives however also markets them to these client groups. There are two kinds of items that are being offered to these potential markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Strong Tie Ltd compared to that of instant adhesives.

The total market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have actually been determined earlier.If we take a look at a breakdown of Strong Tie Ltd prospective market or customer groups, we can see that the company offers to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and manufacturers dealing in products made of leather, wood, plastic and metal. This variety in clients suggests that Strong Tie Ltd can target has various alternatives in regards to segmenting the market for its brand-new product specifically as each of these groups would be needing the very same kind of item with respective changes in demand, quantity or product packaging. The consumer is not cost delicate or brand conscious so launching a low priced dispenser under Strong Tie Ltd name is not a recommended alternative.

Company Analysis

Strong Tie Ltd is not simply a maker of adhesives but takes pleasure in market leadership in the instant adhesive market. The company has its own experienced and certified sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Strong Tie Ltd believes in unique circulation as shown by the fact that it has actually chosen to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach via distributors. The business's reach is not limited to North America only as it likewise delights in global sales. With 1400 outlets spread out all across North America, Strong Tie Ltd has its in-house production plants instead of using out-sourcing as the favored method.

Core proficiencies are not limited to adhesive manufacturing just as Strong Tie Ltd also concentrates on making adhesive dispensing equipment to help with using its items. This double production strategy offers Strong Tie Ltd an edge over rivals given that none of the rivals of dispensing equipment makes instant adhesives. Furthermore, none of these competitors offers directly to the consumer either and utilizes distributors for reaching out to consumers. While we are looking at the strengths of Strong Tie Ltd, it is important to highlight the business's weaknesses.

The company's sales personnel is skilled in training suppliers, the reality stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It ought to also be kept in mind that the suppliers are showing hesitation when it comes to selling devices that requires maintenance which increases the challenges of offering equipment under a specific brand name.

The company has items aimed at the high end of the market if we look at Strong Tie Ltd product line in adhesive equipment especially. If Strong Tie Ltd offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Strong Tie Ltd high-end product line, sales cannibalization would certainly be impacting Strong Tie Ltd sales profits if the adhesive devices is offered under the business's brand.

We can see sales cannibalization impacting Strong Tie Ltd 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which could decrease Strong Tie Ltd profits. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for launching 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.

Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or price awareness which offers us two extra factors for not releasing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Strong Tie Ltd would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development potential due to the presence of fragmented sections with Strong Tie Ltd delighting in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While market competition between these players could be called 'extreme' as the customer is not brand mindful and each of these players has prominence in terms of market share, the fact still remains that the industry is not saturated and still has a number of market sectors which can be targeted as prospective niche markets even when releasing an adhesive. We can even point out the truth that sales cannibalization may be leading to market rivalry in the adhesive dispenser market while the market for instantaneous adhesives uses development capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the buyer has low understanding about the product. While business like Strong Tie Ltd have actually managed to train suppliers relating to adhesives, the final consumer depends on distributors. Roughly 72% of sales are made straight by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three players, it could be said that the provider takes pleasure in a higher bargaining power compared to the buyer. The reality remains that the supplier does not have much impact over the purchaser at this point specifically as the buyer does not show brand name recognition or price sensitivity. This suggests that the distributor has the greater power when it concerns the adhesive market while the purchaser 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 competitors in the immediate adhesive market suggests that the marketplace enables ease of entry. If we look at Strong Tie Ltd in specific, the business has double abilities in terms of being a maker of immediate adhesives and adhesive dispensers. Possible dangers in devices dispensing market are low which shows the possibility of producing brand name awareness in not just instant adhesives however also in dispensing adhesives as none of the industry gamers has actually handled to place itself in double abilities.

Danger of Substitutes: The hazard of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Strong Tie Ltd introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).


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

Strong Tie Ltd Case Study Help


Despite the fact that our 3C analysis has offered numerous reasons for not releasing Case Study Help under Strong Tie Ltd name, we have a suggested marketing mix for Case Study Help provided below if Strong Tie Ltd decides to go on with the launch.

Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 establishments in this section and a high use of approximately 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional development potential of 10.1% which may be a good 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 Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to go with either of the two devices or not.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry upkeep shop needs to purchase the item on his own.

Strong Tie Ltd would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Strong Tie Ltd for releasing Case Study Help.

Place: A circulation design where Strong Tie Ltd straight sends the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by Strong Tie Ltd. Considering that the sales team is currently engaged in offering immediate adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be pricey particularly as each sales call costs roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: A low marketing budget should have been appointed to Case Study Help but the fact 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 marketing plan costing $51816 is advised for initially introducing the product in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle upkeep shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Strong Tie Ltd Case Study Analysis

A suggested strategy of action in the kind of a marketing mix has been discussed for Case Study Help, the truth still stays that the product would not complement Strong Tie Ltd product line. We take a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be approximately $49377 if 250 systems of each design are manufactured each year as per the plan. However, the initial planned advertising is approximately $52000 each year which would be putting a pressure on the company's resources leaving Strong Tie Ltd with an unfavorable earnings if the expenses are designated to Case Study Help only.

The truth that Strong Tie Ltd has currently incurred a preliminary investment of $48000 in the form of capital cost and model development suggests that the revenue from Case Study Help is inadequate to carry out the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a more effective option especially of it is impacting the sale of the company's profits creating models.



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