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Syntonix Pharmaceuticals Case Study Solution
Syntonix Pharmaceuticals Case Study Help
Syntonix Pharmaceuticals Case Study Analysis
The following area focuses on the of marketing for Syntonix Pharmaceuticals where the business's customers, rivals and core proficiencies have assessed in order to validate whether the decision to introduce Case Study Help under Syntonix Pharmaceuticals brand name would be a possible alternative or not. We have to start with looked at the type of consumers that Syntonix Pharmaceuticals handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Syntonix Pharmaceuticals name.
Syntonix Pharmaceuticals clients can be segmented into 2 groups, final customers and industrial clients. Both the groups use Syntonix Pharmaceuticals high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these consumer groups. There are 2 kinds of items that are being offered to these possible markets; instant adhesives and anaerobic adhesives. We would be concentrating on the consumers of instant adhesives for this analysis because the marketplace for the latter has a lower potential for Syntonix Pharmaceuticals compared to that of instantaneous adhesives.
The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have been identified earlier.If we take a look at a breakdown of Syntonix Pharmaceuticals potential market or consumer groups, we can see that the company sells to OEMs (Original Equipment Manufacturers), Do-it-Yourself consumers, repair and overhauling business (MRO) and manufacturers handling products made from leather, metal, wood and plastic. This diversity in customers suggests that Syntonix Pharmaceuticals can target has numerous alternatives in regards to segmenting the marketplace for its new product specifically as each of these groups would be needing the same type of product with particular modifications in product packaging, quantity or demand. Nevertheless, the customer is not price sensitive or brand mindful so introducing a low priced dispenser under Syntonix Pharmaceuticals name is not an advised alternative.
Syntonix Pharmaceuticals is not just a maker of adhesives however takes pleasure in market leadership in the immediate adhesive industry. The company has its own knowledgeable and competent sales force which adds worth to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.
Core skills are not limited to adhesive production only as Syntonix Pharmaceuticals likewise concentrates on making adhesive giving equipment to help with using its items. This dual production method provides Syntonix Pharmaceuticals an edge over competitors considering that none of the rivals of dispensing devices makes instant adhesives. Furthermore, none of these rivals sells straight to the customer either and utilizes distributors for reaching out to customers. While we are looking at the strengths of Syntonix Pharmaceuticals, it is essential to highlight the company's weak points.
The company's sales staff is experienced in training suppliers, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it should likewise be kept in mind that the suppliers are revealing unwillingness when it concerns offering equipment that needs maintenance which increases the difficulties of selling devices under a particular trademark name.
The company has items aimed at the high end of the market if we look at Syntonix Pharmaceuticals item line in adhesive devices especially. If Syntonix Pharmaceuticals offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Syntonix Pharmaceuticals high-end product line, sales cannibalization would certainly be affecting Syntonix Pharmaceuticals sales profits if the adhesive devices is offered under the company's trademark name.
We can see sales cannibalization affecting Syntonix Pharmaceuticals 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible hazard which could decrease Syntonix Pharmaceuticals revenue. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for releasing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we look at the market in general, the adhesives market does disappoint brand name orientation or cost awareness which offers us 2 additional reasons for not launching a low priced product under the company's brand.
The competitive environment of Syntonix Pharmaceuticals 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 market is low specifically as the buyer has low understanding about the product. While business like Syntonix Pharmaceuticals have handled to train distributors concerning adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by 3 gamers, it could be stated that the provider takes pleasure in a higher bargaining power compared to the purchaser. The reality stays that the provider does not have much impact over the purchaser at this point especially as the purchaser does not show brand recognition or cost sensitivity. This shows that the supplier has the greater power when it pertains to the adhesive market while the maker and the buyer do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market indicates that the market allows ease of entry. Nevertheless, if we take a look at Syntonix Pharmaceuticals in particular, the business has dual capabilities in regards to being a maker of immediate adhesives and adhesive dispensers. Prospective dangers in devices giving market are low which reveals the possibility of producing brand awareness in not only immediate adhesives but also in giving adhesives as none of the market players has handled to position itself in dual capabilities.
Hazard of Substitutes: The hazard of replacements in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Syntonix Pharmaceuticals introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered numerous reasons for not launching Case Study Help under Syntonix Pharmaceuticals name, we have actually a recommended marketing mix for Case Study Help offered below if Syntonix Pharmaceuticals decides to go on with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a variety of factors. There are currently 89257 establishments in this segment and a high use of approximately 58900 lbs. is being utilized by 36.1 % of the market. This market has an additional growth potential of 10.1% which might be a good enough niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost usage with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can choose whether he wishes to choose either of the two devices or not.
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 by means of direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor car maintenance shop needs to buy the item on his own.
Syntonix Pharmaceuticals would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Syntonix Pharmaceuticals for introducing Case Study Help.
Place: A distribution model where Syntonix Pharmaceuticals straight sends out the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Syntonix Pharmaceuticals. Considering that the sales team is currently engaged in selling immediate adhesives and they do not have expertise in offering dispensers, including them in the selling process would be costly specifically as each sales call costs roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: A low marketing spending plan needs to have been appointed 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 sustained for production, the suggested marketing plan costing $51816 is recommended for initially presenting the item in the market. The planned ads 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).
