Tempest Tech Incorporated Case Study Help Checklist

Tempest Tech Incorporated Case Study Help Checklist

Tempest Tech Incorporated Case Study Solution
Tempest Tech Incorporated Case Study Help
Tempest Tech Incorporated Case Study Analysis

Analyses for Evaluating Tempest Tech Incorporated decision to launch Case Study Solution

The following section focuses on the of marketing for Tempest Tech Incorporated where the company's customers, competitors and core proficiencies have evaluated in order to justify whether the choice to introduce Case Study Help under Tempest Tech Incorporated brand would be a possible alternative or not. We have actually first of all looked at the kind of clients that Tempest Tech Incorporated handle while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Tempest Tech Incorporated name.
Tempest Tech Incorporated Case Study Solution

Customer Analysis

Tempest Tech Incorporated consumers can be segmented into two groups, industrial consumers and final consumers. Both the groups use Tempest Tech Incorporated high performance adhesives while the business is not only associated with the production of these adhesives however likewise markets them to these client groups. There are two kinds of items that are being sold to these prospective markets; anaerobic adhesives and instantaneous adhesives. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Tempest Tech Incorporated compared to that of instant adhesives.

The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been determined earlier.If we take a look at a breakdown of Tempest Tech Incorporated prospective market or client groups, we can see that the business sells to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair work and revamping business (MRO) and makers dealing in items made of leather, wood, plastic and metal. This variety in consumers recommends that Tempest Tech Incorporated can target has various alternatives in regards to segmenting the marketplace for its new product specifically as each of these groups would be needing the same kind of product with particular modifications in packaging, amount or demand. The client is not rate sensitive or brand name conscious so releasing a low priced dispenser under Tempest Tech Incorporated name is not a recommended option.

Company Analysis

Tempest Tech Incorporated is not just a producer of adhesives however takes pleasure in market leadership in the immediate adhesive market. The company has its own experienced and certified sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core competences are not limited to adhesive manufacturing only as Tempest Tech Incorporated also specializes in making adhesive dispensing devices to assist in making use of its items. This dual production method offers Tempest Tech Incorporated an edge over competitors since none of the competitors of dispensing devices makes immediate adhesives. Additionally, none of these competitors offers directly to the consumer either and utilizes distributors for connecting to customers. While we are taking a look at the strengths of Tempest Tech Incorporated, it is very important to highlight the business's weaknesses also.

The company's sales staff is experienced in training distributors, the truth stays that the sales team is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it needs to likewise be noted that the suppliers are showing unwillingness when it concerns offering equipment that needs maintenance which increases the difficulties of offering devices under a particular trademark name.

If we take a look at Tempest Tech Incorporated product line in adhesive devices particularly, the business has products targeted at the high-end of the marketplace. The possibility of sales cannibalization exists if Tempest Tech Incorporated offers Case Study Help under the very same portfolio. Offered the reality that Case Study Help is priced lower than Tempest Tech Incorporated high-end line of product, sales cannibalization would certainly be impacting Tempest Tech Incorporated sales earnings if the adhesive equipment is offered under the company's trademark name.

We can see sales cannibalization affecting Tempest Tech Incorporated 27A Pencil Applicator which is priced at $275. There is another possible hazard which might reduce Tempest Tech Incorporated income if Case Study Help is introduced under the business's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for introducing 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.

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

Competitor Analysis

The competitive environment of Tempest Tech Incorporated 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 growth potential due to the existence of fragmented segments with Tempest Tech Incorporated taking pleasure in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While industry competition between these players could be called 'intense' as the customer is not brand mindful and each of these players has prominence in terms of market share, the truth still remains that the industry is not filled and still has several market segments which can be targeted as potential niche markets even when releasing an adhesive. We can even point out the reality that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instant adhesives offers growth 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 item. While companies like Tempest Tech Incorporated have actually handled to train distributors concerning adhesives, the final customer depends on suppliers. Roughly 72% of sales are made directly by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three players, it could be said that the supplier enjoys a higher bargaining power compared to the buyer. The fact stays that the supplier does not have much impact over the purchaser at this point especially as the purchaser does not reveal brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a major control over the real sales, this shows that the supplier has the greater 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 instant adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we look at Tempest Tech Incorporated in particular, the business has dual abilities in terms of being a manufacturer of adhesive dispensers and instantaneous adhesives. Potential threats in equipment dispensing industry are low which shows the possibility of developing brand awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the market gamers has actually managed to position itself in double capabilities.

Risk of Substitutes: The threat of alternatives in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact remains that if Tempest Tech Incorporated presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).

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

Tempest Tech Incorporated Case Study Help

Despite the fact that our 3C analysis has provided numerous reasons for not introducing Case Study Help under Tempest Tech Incorporated name, we have actually a suggested marketing mix for Case Study Help provided below if Tempest Tech Incorporated decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional growth potential of 10.1% which might be a great sufficient niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold 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. This cost would not consist of the cost of the 'vari idea' or the 'glumetic tip'. A cost below $250 would not require approvals from the senior management in case a mechanic at an automobile upkeep store needs to purchase the product on his own. This would increase the possibility of affecting mechanics to buy the product for use in their everyday upkeep jobs.

Tempest Tech Incorporated would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Tempest Tech Incorporated for launching Case Study Help.

Place: A distribution design where Tempest Tech Incorporated straight sends the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Tempest Tech Incorporated. Given that the sales team is already engaged in offering instant adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be expensive especially as each sales call costs approximately $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: Although a low advertising budget plan ought to have been assigned to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the recommended advertising strategy costing $51816 is suggested for initially presenting the item in the market. The planned advertisements in magazines would be targeted at mechanics in lorry maintenance stores. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Tempest Tech Incorporated Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the truth still remains that the item would not match Tempest Tech Incorporated line of product. We take a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be roughly $49377 if 250 systems of each design are made annually as per the plan. Nevertheless, the initial prepared advertising is approximately $52000 per year which would be putting a strain on the business's resources leaving Tempest Tech Incorporated with a negative net income if the expenses are designated to Case Study Help only.

The fact that Tempest Tech Incorporated has actually currently sustained a preliminary investment of $48000 in the form of capital cost and model development shows that the earnings from Case Study Help is not enough to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a more effective option especially of it is affecting the sale of the company's income producing designs.