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Texas High Speed Rail Corp Case Study Solution
Texas High Speed Rail Corp Case Study Help
Texas High Speed Rail Corp Case Study Analysis
The following area focuses on the of marketing for Texas High Speed Rail Corp where the business's customers, competitors and core proficiencies have examined in order to validate whether the decision to introduce Case Study Help under Texas High Speed Rail Corp brand name would be a possible choice or not. We have actually firstly taken a look at the type of clients that Texas High Speed Rail Corp deals in while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Texas High Speed Rail Corp name.
Both the groups use Texas High Speed Rail Corp high performance adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these customer groups. We would be focusing on the customers of instant adhesives for this analysis considering that the market for the latter has a lower potential for Texas High Speed Rail Corp compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Texas High Speed Rail Corp possible market or customer groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and producers handling products made of leather, plastic, metal and wood. This variety in clients suggests that Texas High Speed Rail Corp can target has numerous alternatives in terms of segmenting the market for its brand-new product specifically as each of these groups would be needing the very same kind of item with respective modifications in demand, product packaging or amount. Nevertheless, the consumer is not rate delicate or brand name mindful so releasing a low priced dispenser under Texas High Speed Rail Corp name is not a recommended choice.
Texas High Speed Rail Corp is not just a manufacturer of adhesives but enjoys market leadership in the instantaneous adhesive industry. The company has its own skilled and competent sales force which adds value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not limited to adhesive manufacturing just as Texas High Speed Rail Corp likewise focuses on making adhesive giving equipment to help with making use of its items. This double production technique gives Texas High Speed Rail Corp an edge over competitors given that none of the competitors of giving 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 looking at the strengths of Texas High Speed Rail Corp, it is essential to highlight the company's weak points as well.
Although the business's sales staff is skilled in training distributors, the truth remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. Nevertheless, it needs to likewise be kept in mind that the suppliers are revealing hesitation when it concerns selling equipment that needs servicing which increases the obstacles of selling devices under a particular brand.
The company has actually products intended at the high end of the market if we look at Texas High Speed Rail Corp item line in adhesive equipment particularly. If Texas High Speed Rail Corp sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Texas High Speed Rail Corp high-end product line, sales cannibalization would certainly be affecting Texas High Speed Rail Corp sales income if the adhesive devices is sold under the company's trademark name.
We can see sales cannibalization affecting Texas High Speed Rail Corp 27A Pencil Applicator which is priced at $275. There is another possible threat which could reduce Texas High Speed Rail Corp profits if Case Study Help is launched under the company's trademark name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good 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 instant adhesive.
In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or price awareness which offers us two extra factors for not releasing a low priced item under the company's trademark name.
The competitive environment of Texas High Speed Rail Corp would be studied via Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low understanding about the product. While companies like Texas High Speed Rail Corp have managed to train distributors concerning adhesives, the last customer is dependent on distributors. Roughly 72% of sales are made straight by producers and distributors 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 said that the supplier enjoys a higher bargaining power compared to the buyer. The fact stays that the provider does not have much impact over the purchaser at this point particularly as the purchaser does not reveal brand name recognition or rate sensitivity. This indicates that the distributor has the greater power when it concerns the adhesive market while the buyer and the producer do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market indicates that the marketplace permits ease of entry. If we look at Texas High Speed Rail Corp in particular, the business has double abilities in terms of being a maker of adhesive dispensers and immediate adhesives. Prospective dangers in devices giving market are low which reveals the possibility of producing brand name awareness in not just immediate adhesives however likewise in dispensing adhesives as none of the market players has actually managed to position itself in dual capabilities.
Danger of Substitutes: The danger of replacements in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality stays that if Texas High Speed Rail Corp presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided various factors for not launching Case Study Help under Texas High Speed Rail Corp name, we have actually a recommended marketing mix for Case Study Help given listed below if Texas High Speed Rail Corp chooses to proceed with the launch.
Product & Target Market: The target audience chosen for Case Study Help is 'Motor vehicle services' for a variety of reasons. There are currently 89257 facilities in this section and a high use of approximately 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which might be a good enough niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the fact that the Diy market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wants to select either of the two accessories or not.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or through direct selling. This rate would not consist of the cost of the 'vari tip' or the 'glumetic pointer'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to buy the item on his own. This would increase the possibility of influencing mechanics to acquire the item for usage in their day-to-day maintenance jobs.
Texas High Speed Rail Corp would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Texas High Speed Rail Corp for introducing Case Study Help.
Place: A distribution design where Texas High Speed Rail Corp directly sends the product to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Texas High Speed Rail Corp. Given that the sales group is currently taken part in selling instant 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 roughly $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional budget plan must have been assigned to Case Study Help but the fact that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the recommended marketing plan costing $51816 is recommended for initially introducing the product in the market. The prepared ads in publications would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
