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Treasure Trophy Company Case Study Solution
Treasure Trophy Company Case Study Help
Treasure Trophy Company Case Study Analysis
The following section focuses on the of marketing for Treasure Trophy Company where the business's customers, competitors and core competencies have actually evaluated in order to validate whether the decision to introduce Case Study Help under Treasure Trophy Company trademark name would be a feasible option or not. We have actually first of all looked at the kind of consumers that Treasure Trophy Company handle while an assessment of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not launching Case Study Help under Treasure Trophy Company name.
Treasure Trophy Company clients can be segmented into 2 groups, industrial clients and last customers. Both the groups utilize Treasure Trophy Company high performance adhesives while the company is not only associated with the production of these adhesives but also markets them to these customer groups. There are two types of products that are being sold to these prospective markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower potential for Treasure Trophy Company compared to that of instantaneous adhesives.
The overall market for immediate adhesives is around 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Treasure Trophy Company possible market or consumer groups, we can see that the company sells to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and manufacturers handling products made from leather, plastic, metal and wood. This variety in clients suggests that Treasure Trophy Company can target has different options in terms of segmenting the market for its new product particularly as each of these groups would be requiring the exact same kind of product with respective changes in need, quantity or packaging. Nevertheless, the customer is not cost delicate or brand name conscious so introducing a low priced dispenser under Treasure Trophy Company name is not an advised option.
Treasure Trophy Company is not simply a maker of adhesives however delights in market management in the instantaneous adhesive market. The business has its own experienced and qualified sales force which includes worth to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core competences are not limited to adhesive manufacturing just as Treasure Trophy Company likewise focuses on making adhesive dispensing devices to assist in using its products. This double production method provides Treasure Trophy Company an edge over competitors since none of the rivals of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals sells straight to the consumer either and utilizes suppliers for connecting to clients. While we are looking at the strengths of Treasure Trophy Company, it is essential to highlight the company's weak points.
Although the company's sales staff is skilled in training distributors, the fact stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. However, it ought to likewise be noted that the suppliers are revealing unwillingness when it comes to offering devices that needs servicing which increases the difficulties of selling devices under a specific brand name.
If we look at Treasure Trophy Company line of product in adhesive devices particularly, the company has actually items aimed at the high end of the marketplace. The possibility of sales cannibalization exists if Treasure Trophy Company offers Case Study Help under the exact same portfolio. Offered the reality that Case Study Help is priced lower than Treasure Trophy Company high-end line of product, sales cannibalization would certainly be impacting Treasure Trophy Company sales revenue if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization impacting Treasure Trophy Company 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which might lower Treasure Trophy Company profits. The reality that $175000 has been invested in promoting SuperBonder recommends that it is not a good time for releasing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
In addition, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which offers us two extra factors for not launching a low priced product under the company's brand.
The competitive environment of Treasure Trophy Company 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 item. While business like Treasure Trophy Company have handled to train suppliers concerning adhesives, the final customer depends on suppliers. Roughly 72% of sales are made directly by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by 3 players, it could be stated that the supplier enjoys a greater bargaining power compared to the purchaser. The reality remains that the supplier does not have much influence over the purchaser at this point especially as the purchaser does not reveal brand acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the actual sales, this suggests that the distributor has the higher power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market shows that the market enables ease of entry. If we look at Treasure Trophy Company in specific, the business has dual capabilities in terms of being a producer of immediate adhesives and adhesive dispensers. Prospective risks in equipment giving market are low which reveals the possibility of producing brand awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the industry players has managed to place itself in dual capabilities.
Danger of Substitutes: The risk of alternatives in the instantaneous adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact stays that if Treasure Trophy Company presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually provided numerous reasons for not releasing Case Study Help under Treasure Trophy Company name, we have actually a recommended marketing mix for Case Study Help given listed below if Treasure Trophy Company decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional growth potential of 10.1% which may be a great sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. This price 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 store needs to purchase the product on his own. This would increase the possibility of affecting mechanics to buy the product for usage in their everyday maintenance tasks.
Treasure Trophy Company would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Treasure Trophy Company for introducing Case Study Help.
Place: A distribution model where Treasure Trophy Company straight sends the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Treasure Trophy Company. Considering that the sales team is already participated in selling 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 expenses around $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low promotional budget plan needs to have been appointed to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested marketing strategy costing $51816 is suggested for at first introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in car upkeep shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
