The following area focuses on the of marketing for Tokyo Afm where the company's customers, rivals and core competencies have actually assessed in order to justify whether the choice to release Case Study Help under Tokyo Afm trademark name would be a practical option or not. We have firstly taken a look at the type of customers that Tokyo Afm deals in while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Tokyo Afm name.
Tokyo Afm customers can be segmented into 2 groups, commercial consumers and last customers. Both the groups use Tokyo Afm high performance adhesives while the company is not only involved in the production of these adhesives however also markets them to these consumer groups. There are two kinds of items that are being offered to these possible markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instant adhesives for this analysis since the market for the latter has a lower potential for Tokyo Afm compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have actually been recognized earlier.If we look at a breakdown of Tokyo Afm potential market or customer groups, we can see that the company sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and producers dealing in products made from leather, plastic, wood and metal. This diversity in consumers suggests that Tokyo Afm can target has numerous options in regards to segmenting the marketplace for its new product especially as each of these groups would be needing the same kind of item with particular modifications in need, product packaging or amount. The customer is not rate sensitive or brand name mindful so launching a low priced dispenser under Tokyo Afm name is not a recommended option.
Tokyo Afm is not simply a manufacturer of adhesives however enjoys market management in the instant adhesive industry. The business has its own skilled and competent sales force which adds worth to sales by training the business's network of 250 distributors for assisting in the sale of adhesives.
Core proficiencies are not limited to adhesive production only as Tokyo Afm also focuses on making adhesive dispensing devices to facilitate the use of its items. This double production technique provides Tokyo Afm an edge over rivals given that none of the competitors of dispensing devices makes instantaneous adhesives. Additionally, none of these competitors sells straight to the consumer either and makes use of suppliers for reaching out to consumers. While we are looking at the strengths of Tokyo Afm, it is essential to highlight the business's weaknesses.
Although the business's sales personnel is skilled in training suppliers, the reality remains that the sales team is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it must also be noted that the suppliers are revealing unwillingness when it comes to selling devices that requires servicing which increases the obstacles of selling devices under a particular brand name.
The company has items aimed at the high end of the market if we look at Tokyo Afm product line in adhesive devices especially. If Tokyo Afm offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Tokyo Afm high-end line of product, sales cannibalization would absolutely be affecting Tokyo Afm sales earnings if the adhesive equipment is offered under the business's brand.
We can see sales cannibalization impacting Tokyo Afm 27A Pencil Applicator which is priced at $275. There is another possible risk which might reduce Tokyo Afm profits if Case Study Help is released under the company's brand name. 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 fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or rate awareness which offers us 2 additional factors for not launching a low priced product under the company's brand name.
The competitive environment of Tokyo Afm 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 industry is low especially as the purchaser has low knowledge about the product. While business like Tokyo Afm have managed to train distributors regarding adhesives, the final consumer depends on distributors. Approximately 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 fact that the adhesive market is controlled by three gamers, it could be said that the supplier enjoys a higher bargaining power compared to the purchaser. Nevertheless, the reality remains that the supplier does not have much influence over the purchaser at this point specifically as the buyer does not show brand acknowledgment or rate sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a significant control over the real sales, this indicates that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market indicates that the market permits ease of entry. Nevertheless, if we look at Tokyo Afm in particular, the company has double abilities in terms of being a producer of immediate adhesives and adhesive dispensers. Prospective hazards in devices giving industry are low which shows the possibility of creating brand awareness in not only immediate adhesives but also in dispensing adhesives as none of the market gamers has actually handled to place itself in dual capabilities.
Hazard of Substitutes: The danger of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The reality remains that if Tokyo Afm 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 offered various factors for not introducing Case Study Help under Tokyo Afm name, we have actually a recommended marketing mix for Case Study Help offered listed below if Tokyo Afm decides to proceed with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a variety of reasons. There are presently 89257 facilities in this section and a high use of roughly 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional development capacity of 10.1% which might be a good enough niche market segment 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 also be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can choose 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 distributors or via direct selling. This price would not consist of the expense of the 'vari idea' or the 'glumetic idea'. A price below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the product on his own. This would increase the possibility of influencing mechanics to acquire the item for use in their daily upkeep tasks.
Tokyo Afm would just be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Tokyo Afm for introducing Case Study Help.
Place: A circulation model where Tokyo Afm directly sends the product to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be utilized by Tokyo Afm. Given that the sales group is currently taken part in offering instantaneous adhesives and they do not have expertise 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 favorable choice.
Promotion: Although a low promotional spending plan must have been assigned to Case Study Help but the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising plan costing $51816 is advised for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).