The following section focuses on the of marketing for Thumbs Up Video Inc where the business's customers, competitors and core competencies have evaluated in order to validate whether the choice to introduce Case Study Help under Thumbs Up Video Inc trademark name would be a practical choice or not. We have to start with taken a look at the kind of consumers that Thumbs Up Video Inc deals in while an examination of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Thumbs Up Video Inc name.
Thumbs Up Video Inc consumers can be segmented into 2 groups, industrial customers and last customers. Both the groups utilize Thumbs Up Video Inc high performance adhesives while the business is not only associated with the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of items that are being sold to these prospective markets; instant adhesives and anaerobic adhesives. We would be concentrating on the customers of immediate adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Thumbs Up Video Inc compared to that of instant adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Thumbs Up Video Inc possible market or consumer groups, we can see that the business offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair work and revamping companies (MRO) and manufacturers dealing in items made of leather, wood, plastic and metal. This diversity in consumers recommends that Thumbs Up Video Inc can target has different options in terms of segmenting the marketplace for its new item especially as each of these groups would be requiring the very same type of product with particular changes in amount, product packaging or need. The consumer is not rate delicate or brand name mindful so launching a low priced dispenser under Thumbs Up Video Inc name is not a suggested alternative.
Thumbs Up Video Inc is not simply a producer of adhesives however takes pleasure in market leadership in the immediate adhesive market. The business has its own proficient and qualified sales force which includes value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Thumbs Up Video Inc also focuses on making adhesive giving devices to assist in using its items. This dual production method gives Thumbs Up Video Inc an edge over rivals given that none of the competitors of dispensing equipment makes immediate adhesives. Additionally, none of these rivals offers straight to the customer either and utilizes suppliers for connecting to customers. While we are looking at the strengths of Thumbs Up Video Inc, it is very important to highlight the business's weaknesses too.
The company's sales personnel is proficient in training distributors, the reality remains that the sales team is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it ought to likewise be noted that the suppliers are revealing hesitation when it comes to selling equipment that requires maintenance which increases the obstacles of selling equipment under a specific brand.
The company has products intended at the high end of the market if we look at Thumbs Up Video Inc product line in adhesive devices especially. If Thumbs Up Video Inc sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Thumbs Up Video Inc high-end line of product, sales cannibalization would certainly be affecting Thumbs Up Video Inc sales income if the adhesive devices is offered under the business's brand.
We can see sales cannibalization impacting Thumbs Up Video Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible hazard which might reduce Thumbs Up Video Inc profits. The truth that $175000 has actually been invested 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.
Furthermore, if we look at the market in general, the adhesives market does disappoint brand orientation or price awareness which gives us two extra reasons for not launching a low priced product under the company's brand name.
The competitive environment of Thumbs Up Video Inc would be studied through 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 market is low especially as the buyer has low understanding about the product. While companies like Thumbs Up Video Inc have actually handled to train suppliers relating to adhesives, the final customer depends on suppliers. Around 72% of sales are made directly by producers and suppliers for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by 3 gamers, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. Nevertheless, the truth stays that the provider does not have much influence over the purchaser at this moment especially as the buyer does disappoint brand name recognition or rate level of sensitivity. This indicates that the distributor has the higher power when it concerns the adhesive market while the buyer and the manufacturer do not have a significant control over the real sales.
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 suggests that the market permits ease of entry. However, if we take a look at Thumbs Up Video Inc in particular, the company has double abilities in regards to being a producer of immediate adhesives and adhesive dispensers. Prospective dangers in devices dispensing industry are low which reveals the possibility of creating brand awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the industry gamers has actually handled to position itself in dual abilities.
Danger of Substitutes: The danger of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Thumbs Up Video Inc introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given numerous reasons for not launching Case Study Help under Thumbs Up Video Inc name, we have actually a suggested marketing mix for Case Study Help given listed below if Thumbs Up Video Inc chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. There are presently 89257 facilities in this sector and a high usage of roughly 58900 pounds. is being used by 36.1 % of the market. This market has an extra development potential of 10.1% which might be a good enough specific niche market sector for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can decide whether he wants to choose either of the two devices or not.
Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This cost would not include the expense of the 'vari pointer' or the 'glumetic tip'. A rate listed below $250 would not require approvals from the senior management in case a mechanic at an automobile maintenance shop needs to acquire the item on his own. This would increase the possibility of influencing mechanics to purchase the item for usage in their everyday upkeep jobs.
Thumbs Up Video Inc would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Thumbs Up Video Inc for launching Case Study Help.
Place: A distribution design where Thumbs Up Video Inc directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by Thumbs Up Video Inc. Considering that the sales group is already participated in selling immediate adhesives and they do not have competence in offering dispensers, involving them in the selling process would be pricey particularly as each sales call expenses approximately $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low advertising budget should have been appointed to Case Study Help but the fact that the dispenser is an innovation 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 product in the market. The planned ads in magazines would be targeted at mechanics in car maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).