Sub Micron Devices Inc Case Study Help Checklist

Sub Micron Devices Inc Case Study Help Checklist

Sub Micron Devices Inc Case Study Solution
Sub Micron Devices Inc Case Study Help
Sub Micron Devices Inc Case Study Analysis

Analyses for Evaluating Sub Micron Devices Inc decision to launch Case Study Solution

The following area focuses on the of marketing for Sub Micron Devices Inc where the business's consumers, rivals and core proficiencies have actually examined in order to justify whether the choice to introduce Case Study Help under Sub Micron Devices Inc brand would be a practical option or not. We have firstly taken a look at the kind of customers that Sub Micron Devices Inc handle while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Sub Micron Devices Inc name.
Sub Micron Devices Inc Case Study Solution

Customer Analysis

Sub Micron Devices Inc consumers can be segmented into 2 groups, last customers and commercial consumers. Both the groups utilize Sub Micron Devices Inc high performance adhesives while the business is not just associated with the production of these adhesives but also markets them to these client groups. There are two types of products that are being sold to these possible markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis since the market for the latter has a lower potential for Sub Micron Devices Inc compared to that of immediate adhesives.

The overall market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Sub Micron Devices Inc possible market or consumer groups, we can see that the business sells to OEMs (Original Devices Producers), Do-it-Yourself clients, repair and upgrading companies (MRO) and makers handling items made of leather, wood, metal and plastic. This variety in consumers suggests that Sub Micron Devices Inc can target has various alternatives in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the very same type of product with particular modifications in need, amount or product packaging. The customer is not rate delicate or brand name conscious so launching a low priced dispenser under Sub Micron Devices Inc name is not a recommended option.

Company Analysis

Sub Micron Devices Inc is not just a manufacturer of adhesives but delights in market management in the instant adhesive market. The business has its own proficient and competent sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives. Sub Micron Devices Inc believes in special distribution as suggested by the truth that it has chosen to sell through 250 distributors whereas there is t a network of 10000 distributors that can be checked out for expanding reach by means of suppliers. The company's reach is not restricted to North America just as it also takes pleasure in international sales. With 1400 outlets spread all throughout The United States and Canada, Sub Micron Devices Inc has its in-house production plants instead of utilizing out-sourcing as the favored method.

Core skills are not limited to adhesive manufacturing just as Sub Micron Devices Inc also concentrates on making adhesive dispensing devices to facilitate making use of its items. This dual production method gives Sub Micron Devices Inc an edge over competitors because none of the rivals of dispensing equipment makes instantaneous adhesives. In addition, none of these rivals sells straight to the consumer either and utilizes distributors for reaching out to clients. While we are taking a look at the strengths of Sub Micron Devices Inc, it is important to highlight the business's weaknesses too.

The company's sales staff is skilled in training distributors, the fact remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. It needs to likewise be kept in mind that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the difficulties of selling equipment under a specific brand name.

The company has actually products intended at the high end of the market if we look at Sub Micron Devices Inc product line in adhesive equipment especially. The possibility of sales cannibalization exists if Sub Micron Devices Inc offers Case Study Help under the same portfolio. Provided the truth that Case Study Help is priced lower than Sub Micron Devices Inc high-end line of product, sales cannibalization would certainly be impacting Sub Micron Devices Inc sales revenue if the adhesive devices is sold under the company's brand.

We can see sales cannibalization impacting Sub Micron Devices Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible threat which might reduce Sub Micron Devices Inc revenue. The truth that $175000 has actually been spent in promoting SuperBonder suggests 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 look at the market in general, the adhesives market does not show brand orientation or rate consciousness which offers us 2 extra factors for not releasing a low priced item under the company's brand.

Competitor Analysis

The competitive environment of Sub Micron Devices Inc would be studied by means of Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Presently we can see that the adhesive market has a high growth potential due to the existence of fragmented segments with Sub Micron Devices Inc enjoying leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry rivalry in between these players could be called 'intense' as the customer is not brand name conscious and each of these players has prominence in regards to market share, the reality still stays that the industry is not saturated and still has several market sections which can be targeted as prospective niche markets even when introducing an adhesive. We can even point out the fact that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instantaneous adhesives offers development potential.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the purchaser has low understanding about the product. While business like Sub Micron Devices Inc have handled to train distributors regarding adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made straight by makers 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 stated that the provider enjoys a greater bargaining power compared to the purchaser. However, the reality remains that the supplier does not have much impact over the buyer at this point particularly as the purchaser does not show brand acknowledgment or rate level of sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a significant control over the actual sales, this suggests that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market indicates that the market allows ease of entry. If we look at Sub Micron Devices Inc in specific, the company has dual abilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Potential dangers in equipment giving industry are low which shows the possibility of producing brand name awareness in not only instant adhesives however also in giving adhesives as none of the industry gamers has actually handled to position itself in dual capabilities.

Danger of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has replacements like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality remains that if Sub Micron Devices Inc presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).

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

Sub Micron Devices Inc Case Study Help

Despite the fact that our 3C analysis has given numerous factors for not releasing Case Study Help under Sub Micron Devices Inc name, we have actually a suggested marketing mix for Case Study Help provided below if Sub Micron Devices Inc chooses to proceed with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional growth potential of 10.1% which might be a great adequate specific niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the fact that the Diy market can also be targeted if a potable low priced adhesive is being offered for use with SuperBonder.

Price: The suggested price 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 require approvals from the senior management in case a mechanic at a motor lorry upkeep store requires to buy the item on his own.

Sub Micron Devices Inc would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Sub Micron Devices Inc for releasing Case Study Help.

Place: A circulation design where Sub Micron Devices Inc directly sends the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Sub Micron Devices Inc. Given that the sales team is already taken part in selling instant adhesives and they do not have proficiency in offering dispensers, involving them in the selling process would be pricey specifically as each sales call costs roughly $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: Although a low advertising spending plan should have been designated 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 recommended advertising strategy costing $51816 is advised for initially introducing the product in the market. The planned ads in magazines would be targeted at mechanics in car upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Sub Micron Devices Inc Case Study Analysis

A suggested plan of action in the kind of a marketing mix has actually been talked about for Case Study Help, the fact still stays that the item would not match Sub Micron Devices Inc product line. We take a look at appendix 2, we can see how the total gross success for the two designs is expected to be approximately $49377 if 250 systems of each model are produced per year according to the strategy. The preliminary planned marketing is approximately $52000 per year which would be putting a pressure on the company's resources leaving Sub Micron Devices Inc with a negative net earnings if the expenses are designated to Case Study Help only.

The fact that Sub Micron Devices Inc has currently sustained a preliminary investment of $48000 in the form of capital cost and prototype development suggests that the income from Case Study Help is inadequate to undertake the danger of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable alternative especially of it is affecting the sale of the business's revenue creating models.