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Thompson Asset Management Case Study Solution
Thompson Asset Management Case Study Help
Thompson Asset Management Case Study Analysis
The following section focuses on the of marketing for Thompson Asset Management where the company's customers, rivals and core competencies have examined in order to validate whether the decision to launch Case Study Help under Thompson Asset Management brand would be a possible alternative or not. We have actually to start with taken a look at the type of consumers that Thompson Asset Management handle while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Thompson Asset Management name.
Thompson Asset Management clients can be segmented into two groups, final customers and industrial customers. Both the groups utilize Thompson Asset Management high performance adhesives while the company is not only associated with the production of these adhesives but also markets them to these client groups. There are 2 types of items that are being sold to these prospective markets; anaerobic adhesives and instant adhesives. We would be concentrating on the consumers of immediate adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Thompson Asset Management compared to that of instantaneous adhesives.
The total market for instant adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Thompson Asset Management possible market or consumer groups, we can see that the company sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself clients, repair and overhauling business (MRO) and producers dealing in products made from leather, wood, plastic and metal. This variety in clients suggests that Thompson Asset Management can target has different options in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be requiring the very same kind of product with particular changes in packaging, amount or demand. The consumer is not rate sensitive or brand conscious so launching a low priced dispenser under Thompson Asset Management name is not a suggested option.
Thompson Asset Management is not simply a maker of adhesives but enjoys market management in the immediate adhesive industry. The company has its own proficient and competent sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.
Core competences are not limited to adhesive production only as Thompson Asset Management likewise focuses on making adhesive dispensing equipment to help with the use of its products. This double production technique offers Thompson Asset Management an edge over rivals because none of the competitors of giving equipment makes immediate adhesives. In addition, none of these competitors sells directly to the customer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Thompson Asset Management, it is important to highlight the business's weak points also.
The business's sales personnel is skilled in training suppliers, the fact remains that the sales group is not trained in offering equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. However, it ought to also be noted that the suppliers are showing unwillingness when it comes to selling devices that needs servicing which increases the difficulties of selling devices under a specific brand.
The company has actually products aimed at the high end of the market if we look at Thompson Asset Management product line in adhesive devices especially. If Thompson Asset Management offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Thompson Asset Management high-end product line, sales cannibalization would definitely be impacting Thompson Asset Management sales revenue if the adhesive equipment is sold under the business's brand.
We can see sales cannibalization impacting Thompson Asset Management 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Thompson Asset Management profits if Case Study Help is introduced under the business's trademark name. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a good 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 take a look at the marketplace in general, the adhesives market does not show brand name orientation or price consciousness which offers us 2 additional reasons for not launching a low priced item under the business's brand name.
The competitive environment of Thompson Asset Management 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 buyer in this industry is low particularly as the purchaser has low understanding about the item. While companies like Thompson Asset Management have handled to train distributors regarding adhesives, the final customer is dependent on distributors. Around 72% of sales are made directly by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by 3 gamers, it could be stated that the supplier takes pleasure in a higher bargaining power compared to the purchaser. However, the fact remains that the supplier does not have much impact over the purchaser at this moment specifically as the purchaser does not show brand name recognition or cost sensitivity. This indicates that the distributor has the greater power when it pertains to the adhesive market while the maker and the purchaser 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 revealed by foreign Japanese rivals in the immediate adhesive market suggests that the marketplace enables ease of entry. If we look at Thompson Asset Management in specific, the company has dual capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective hazards in equipment dispensing market are low which reveals the possibility of creating brand awareness in not only instant adhesives but also in dispensing adhesives as none of the industry players has actually handled to place itself in double abilities.
Danger of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The reality remains that if Thompson Asset Management presented Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided different factors for not introducing Case Study Help under Thompson Asset Management name, we have a suggested marketing mix for Case Study Help given listed below if Thompson Asset Management chooses to proceed 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 extra development potential of 10.1% which may be a good adequate niche market sector for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the fact that the Diy market can likewise be targeted if a potable low priced adhesive is being offered for use with SuperBonder.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor automobile upkeep shop requires to acquire the product on his own.
Thompson Asset Management would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Thompson Asset Management for releasing Case Study Help.
Place: A circulation model where Thompson Asset Management straight sends the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Thompson Asset Management. Given that the sales team is already taken part in offering instant adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be pricey particularly as each sales call costs around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: Although a low marketing spending plan needs to have been appointed 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 sustained for production, the recommended advertising plan costing $51816 is recommended for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in automobile maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).
