The following section focuses on the of marketing for Superior Clamps Inc where the company's customers, competitors and core proficiencies have evaluated in order to validate whether the decision to launch Case Study Help under Superior Clamps Inc brand name would be a practical choice or not. We have firstly taken a look at the type of clients that Superior Clamps Inc handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Superior Clamps Inc name.
Both the groups use Superior Clamps Inc high performance adhesives while the company is not just included in the production of these adhesives however also markets them to these customer groups. We would be focusing on the consumers of immediate adhesives for this analysis because the market for the latter has a lower potential for Superior Clamps 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 been identified earlier.If we take a look at a breakdown of Superior Clamps Inc possible market or consumer groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair work and revamping business (MRO) and makers handling items made of leather, plastic, metal and wood. This variety in customers suggests that Superior Clamps Inc can target has numerous alternatives in regards to segmenting the market for its new item especially as each of these groups would be requiring the very same kind of item with respective modifications in quantity, need or packaging. However, the client is not price delicate or brand name conscious so releasing a low priced dispenser under Superior Clamps Inc name is not a recommended choice.
Superior Clamps Inc is not simply a maker of adhesives however enjoys market management in the instantaneous adhesive market. The company has its own skilled and certified sales force which adds value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core skills are not limited to adhesive manufacturing just as Superior Clamps Inc likewise focuses on making adhesive dispensing equipment to facilitate the use of its items. This double production technique provides Superior Clamps Inc an edge over rivals because none of the competitors of giving equipment makes instantaneous adhesives. In addition, none of these rivals offers straight to the consumer either and utilizes distributors for reaching out to consumers. While we are looking at the strengths of Superior Clamps Inc, it is essential to highlight the company's weaknesses.
Although the business's sales staff is proficient in training suppliers, the reality stays that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it ought to also be noted that the distributors are revealing unwillingness when it concerns selling devices that requires maintenance which increases the challenges of selling devices under a specific brand.
If we look at Superior Clamps Inc product line in adhesive devices particularly, the business has items targeted at the high end of the market. If Superior Clamps Inc offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the reality that Case Study Help is priced lower than Superior Clamps Inc high-end product line, sales cannibalization would absolutely be impacting Superior Clamps Inc sales revenue if the adhesive equipment is offered under the company's trademark name.
We can see sales cannibalization affecting Superior Clamps Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible danger which could decrease Superior Clamps Inc revenue. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great 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.
Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost awareness which offers us 2 additional reasons for not introducing a low priced product under the company's brand name.
The competitive environment of Superior Clamps Inc would be studied through 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 industry is low particularly as the buyer has low knowledge about the product. While business like Superior Clamps Inc have actually managed to train suppliers concerning adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by three players, it could be said that the provider enjoys a greater bargaining power compared to the buyer. The fact stays that the supplier does not have much influence over the purchaser at this point particularly as the buyer does not reveal brand name recognition or rate level of sensitivity. This suggests that the supplier has the higher power when it pertains to the adhesive market while the producer and the purchaser do not have a significant control over the actual 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 immediate adhesive market suggests that the market enables ease of entry. Nevertheless, if we take a look at Superior Clamps Inc in particular, the company has double abilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential risks in devices dispensing market are low which reveals the possibility of creating brand name awareness in not only immediate adhesives however also in giving adhesives as none of the industry gamers has actually handled to position itself in dual abilities.
Risk of Substitutes: The hazard of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Superior Clamps Inc introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has provided numerous factors for not launching Case Study Help under Superior Clamps Inc name, we have a recommended marketing mix for Case Study Help offered listed below if Superior Clamps Inc chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor automobile services' for a number of factors. This market has an additional development potential of 10.1% which may be an excellent enough niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for use 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 distributors or via direct selling. This cost would not consist of the expense of the 'vari suggestion' or the 'glumetic tip'. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to buy the item on his own. This would increase the possibility of affecting mechanics to purchase the item for use in their everyday maintenance tasks.
Superior Clamps Inc would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Superior Clamps Inc for launching Case Study Help.
Place: A circulation design where Superior Clamps Inc straight sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Superior Clamps Inc. Considering that the sales group is currently taken part in offering instant adhesives and they do not have expertise in offering dispensers, involving them in the selling procedure would be costly especially as each sales call expenses around $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: Although a low promotional budget plan needs to have been assigned to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended marketing strategy costing $51816 is suggested for at first introducing the item in the market. The prepared ads in magazines would be targeted at mechanics in automobile maintenance shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).