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Tempest Tech Incorporated Case Study Solution
Tempest Tech Incorporated Case Study Help
Tempest Tech Incorporated Case Study Analysis
The following area focuses on the of marketing for Tempest Tech Incorporated where the company's clients, rivals and core competencies have actually examined in order to validate whether the choice to launch Case Study Help under Tempest Tech Incorporated brand name would be a possible alternative or not. We have actually first of all looked at the kind of consumers that Tempest Tech Incorporated handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Tempest Tech Incorporated name.
Tempest Tech Incorporated consumers can be segmented into 2 groups, commercial clients and final consumers. Both the groups use Tempest Tech Incorporated high performance adhesives while the company is not only involved in the production of these adhesives but also markets them to these consumer groups. There are two types of products that are being offered to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Tempest Tech Incorporated compared to that of immediate adhesives.
The total market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been identified earlier.If we look at a breakdown of Tempest Tech Incorporated prospective market or consumer groups, we can see that the business offers to OEMs (Original Devices Makers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and manufacturers handling items made from leather, wood, plastic and metal. This variety in clients recommends that Tempest Tech Incorporated can target has numerous options in regards to segmenting the market for its new product specifically as each of these groups would be requiring the same type of product with respective changes in need, amount or packaging. The customer is not price delicate or brand name conscious so releasing a low priced dispenser under Tempest Tech Incorporated name is not a suggested choice.
Tempest Tech Incorporated is not just a manufacturer of adhesives but delights in market leadership in the instant adhesive market. The business has its own experienced and certified sales force which includes value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Tempest Tech Incorporated likewise focuses on making adhesive dispensing devices to assist in the use of its items. This dual production strategy provides Tempest Tech Incorporated an edge over rivals considering that none of the competitors of giving devices makes immediate adhesives. Additionally, none of these competitors offers directly to the consumer either and makes use of distributors for connecting to clients. While we are looking at the strengths of Tempest Tech Incorporated, it is essential to highlight the business's weaknesses as well.
The company's sales personnel is knowledgeable in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It ought to also be noted that the distributors are revealing hesitation when it comes to selling devices that needs servicing which increases the obstacles of offering devices under a particular brand name.
If we take a look at Tempest Tech Incorporated product line in adhesive equipment especially, the business has actually products aimed at the high end of the market. 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 absolutely be impacting Tempest Tech Incorporated sales income if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization impacting Tempest Tech Incorporated 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 could lower Tempest Tech Incorporated profits. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a good 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 instantaneous adhesive.
In addition, if we look at the marketplace in general, the adhesives market does disappoint brand orientation or price consciousness which offers us two additional factors for not launching a low priced product under the company's brand name.
The competitive environment of Tempest Tech Incorporated would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low understanding about the item. While companies like Tempest Tech Incorporated have handled to train suppliers relating to adhesives, the final consumer depends on suppliers. Approximately 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by three gamers, it could be said that the supplier takes pleasure in 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 particularly as the purchaser does not show brand name acknowledgment or price level of sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market shows that the market allows ease of entry. If we look at Tempest Tech Incorporated in specific, the business has double capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential threats in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not just instantaneous adhesives however likewise in dispensing adhesives as none of the market gamers has actually managed to place itself in dual capabilities.
Hazard of Substitutes: The threat of alternatives in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality remains that if Tempest Tech Incorporated presented Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered different reasons for not launching Case Study Help under Tempest Tech Incorporated name, we have actually a suggested marketing mix for Case Study Help given below if Tempest Tech Incorporated chooses to go on with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an extra development potential of 10.1% which might be a good adequate niche market sector for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to buy the product on his own.
Tempest Tech Incorporated would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net success for Tempest Tech Incorporated for launching Case Study Help.
Place: A circulation model where Tempest Tech Incorporated directly sends the product to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Tempest Tech Incorporated. Considering that the sales group is already participated in offering immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be costly particularly as each sales call expenses approximately $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial option.
Promotion: Although a low advertising budget should have been designated to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing strategy costing $51816 is suggested for initially presenting the product in the market. The planned advertisements in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
