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Sub Micron Devices Inc Case Study Solution
Sub Micron Devices Inc Case Study Help
Sub Micron Devices Inc Case Study Analysis
The following section focuses on the of marketing for Sub Micron Devices Inc where the company's consumers, rivals and core proficiencies have assessed in order to justify whether the decision to release Case Study Help under Sub Micron Devices Inc brand name would be a possible alternative or not. We have to start with taken a look at the kind of clients that Sub Micron Devices Inc deals in while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Sub Micron Devices Inc name.
Both the groups utilize Sub Micron Devices Inc high efficiency adhesives while the company is not only involved in the production of these adhesives however likewise markets them to these client groups. We would be focusing on the consumers of instant adhesives for this analysis since the market for the latter has a lower capacity for Sub Micron Devices Inc compared to that of immediate adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both client groups which have actually been recognized earlier.If we look at a breakdown of Sub Micron Devices Inc possible market or customer groups, we can see that the business sells to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair work and overhauling business (MRO) and makers dealing in products made of leather, plastic, metal and wood. This diversity in customers suggests that Sub Micron Devices Inc can target has different alternatives in regards to segmenting the marketplace for its new product particularly as each of these groups would be requiring the very same kind of item with respective modifications in packaging, amount or demand. The consumer is not cost delicate or brand conscious so launching a low priced dispenser under Sub Micron Devices Inc name is not a recommended alternative.
Sub Micron Devices Inc is not just a producer of adhesives however enjoys market leadership in the immediate adhesive industry. The company has its own competent and qualified sales force which adds worth to sales by training the business's network of 250 distributors for assisting in the sale of adhesives. Sub Micron Devices Inc believes in special circulation as shown by the fact that it has selected to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for broadening reach through distributors. The company's reach is not limited to The United States and Canada only as it also delights in international sales. With 1400 outlets spread out all across North America, Sub Micron Devices Inc has its internal production plants rather than using out-sourcing as the preferred technique.
Core skills are not limited to adhesive production only as Sub Micron Devices Inc likewise specializes in making adhesive dispensing devices to assist in making use of its products. This dual production strategy provides Sub Micron Devices Inc an edge over rivals given that none of the rivals of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the customer either and makes use of suppliers for reaching out to consumers. While we are taking a look at the strengths of Sub Micron Devices Inc, it is essential to highlight the business's weak points as well.
Although the company's sales personnel is skilled in training distributors, the reality stays that the sales team is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It should likewise be kept in mind that the distributors are showing unwillingness when it comes to offering equipment that needs servicing which increases the obstacles of offering devices under a particular brand name.
The business has products aimed at the high end of the market if we look at Sub Micron Devices Inc product line in adhesive devices especially. The possibility of sales cannibalization exists if Sub Micron Devices Inc sells Case Study Help under the same portfolio. Provided the fact that Case Study Help is priced lower than Sub Micron Devices Inc high-end product line, sales cannibalization would definitely be impacting Sub Micron Devices Inc sales revenue if the adhesive equipment is sold under the company's brand.
We can see sales cannibalization affecting Sub Micron Devices Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible risk which could decrease Sub Micron Devices Inc earnings. The fact that $175000 has actually 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 market in general, the adhesives market does disappoint brand name orientation or price awareness which provides us 2 extra reasons for not launching a low priced item under the company's brand.
The competitive environment of Sub Micron Devices Inc would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the buyer has low knowledge about the item. While business like Sub Micron Devices Inc have handled to train suppliers concerning adhesives, the last customer depends on distributors. Around 72% of sales are made straight by manufacturers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by three gamers, it could be said that the supplier takes pleasure in a greater bargaining power compared to the purchaser. The truth stays that the provider does not have much influence over the purchaser at this point specifically as the purchaser does not show brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a major 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 revealed by foreign Japanese rivals in the immediate adhesive market indicates that the market enables ease of entry. Nevertheless, if we look at Sub Micron Devices Inc in particular, the business has double abilities in terms of being a manufacturer of adhesive dispensers and immediate adhesives. Possible dangers in equipment dispensing industry are low which shows the possibility of developing brand awareness in not just instantaneous adhesives however likewise in dispensing adhesives as none of the market players has handled to position itself in dual capabilities.
Hazard of Substitutes: The risk of alternatives in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The reality stays that if Sub Micron Devices Inc introduced 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 actually offered numerous reasons for not launching Case Study Help under Sub Micron Devices Inc name, we have a suggested marketing mix for Case Study Help provided listed below if Sub Micron Devices Inc chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional development capacity of 10.1% which might be a good enough niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being offered for use with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This rate would not include the cost of the 'vari tip' or the 'glumetic idea'. A price listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store requires to acquire the item on his own. This would increase the possibility of influencing mechanics to buy the product for usage in their day-to-day upkeep jobs.
Sub Micron Devices Inc would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Sub Micron Devices Inc for releasing Case Study Help.
Place: A circulation model where Sub Micron Devices Inc straight sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Sub Micron Devices Inc. Considering that the sales team is currently engaged in selling immediate adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be expensive particularly as each sales call costs around $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: Although a low promotional spending plan ought to have been assigned to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended advertising strategy costing $51816 is suggested for initially introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
