Union Carbide Corp Interest Rate Risk Management Case Study Solution
Union Carbide Corp Interest Rate Risk Management Case Study Help
Union Carbide Corp Interest Rate Risk Management Case Study Analysis
The following area focuses on the of marketing for Union Carbide Corp Interest Rate Risk Management where the company's customers, competitors and core proficiencies have evaluated in order to justify whether the choice to release Case Study Help under Union Carbide Corp Interest Rate Risk Management brand would be a feasible choice or not. We have actually firstly looked at the type of consumers that Union Carbide Corp Interest Rate Risk Management deals in while an evaluation of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Union Carbide Corp Interest Rate Risk Management name.
Union Carbide Corp Interest Rate Risk Management consumers can be segmented into two groups, last consumers and commercial customers. Both the groups use Union Carbide Corp Interest Rate Risk Management high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these consumer groups. There are two types of products that are being sold to these potential markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis given that the market for the latter has a lower potential for Union Carbide Corp Interest Rate Risk Management compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have actually been determined earlier.If we take a look at a breakdown of Union Carbide Corp Interest Rate Risk Management possible market or client groups, we can see that the business offers to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair and revamping business (MRO) and makers dealing in products made of leather, metal, plastic and wood. This diversity in clients suggests that Union Carbide Corp Interest Rate Risk Management can target has different options in regards to segmenting the marketplace for its brand-new item particularly as each of these groups would be needing the same kind of product with respective changes in need, amount or product packaging. The customer is not price sensitive or brand name conscious so introducing a low priced dispenser under Union Carbide Corp Interest Rate Risk Management name is not a suggested option.
Union Carbide Corp Interest Rate Risk Management is not just a manufacturer of adhesives however enjoys market management in the instant adhesive market. The business has its own knowledgeable and qualified sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives.
Core skills are not restricted to adhesive production just as Union Carbide Corp Interest Rate Risk Management likewise concentrates on making adhesive giving devices to assist in the use of its items. This dual production technique provides Union Carbide Corp Interest Rate Risk Management an edge over rivals given that none of the competitors of dispensing equipment makes instantaneous adhesives. Additionally, none of these competitors sells directly to the consumer either and makes use of distributors for reaching out to customers. While we are looking at the strengths of Union Carbide Corp Interest Rate Risk Management, it is important to highlight the company's weaknesses too.
The business's sales personnel is competent in training suppliers, the reality remains that the sales team is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It must also be kept in mind that the distributors are showing reluctance when it comes to selling equipment that requires maintenance which increases the obstacles of selling equipment under a specific brand name.
The business has actually items intended at the high end of the market if we look at Union Carbide Corp Interest Rate Risk Management item line in adhesive devices particularly. The possibility of sales cannibalization exists if Union Carbide Corp Interest Rate Risk Management sells Case Study Help under the very same portfolio. Provided the fact that Case Study Help is priced lower than Union Carbide Corp Interest Rate Risk Management high-end product line, sales cannibalization would absolutely be impacting Union Carbide Corp Interest Rate Risk Management sales earnings if the adhesive devices is offered under the company's trademark name.
We can see sales cannibalization affecting Union Carbide Corp Interest Rate Risk Management 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Union Carbide Corp Interest Rate Risk Management earnings if Case Study Help is launched under the business's brand name. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or price awareness which gives us 2 extra factors for not releasing a low priced product under the business's brand.
The competitive environment of Union Carbide Corp Interest Rate Risk Management would be studied by means of Porter's five 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 particularly as the purchaser has low understanding about the item. While business like Union Carbide Corp Interest Rate Risk Management have actually handled to train distributors relating to adhesives, the last consumer is dependent on suppliers. 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: Given the truth that the adhesive market is dominated by three players, it could be stated that the provider enjoys a higher bargaining power compared to the buyer. The truth remains that the provider does not have much influence over the purchaser at this point particularly as the purchaser does not reveal brand name acknowledgment or cost sensitivity. This indicates that the supplier has the greater power when it concerns the adhesive market while the maker and the buyer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market indicates that the marketplace enables ease of entry. However, if we take a look at Union Carbide Corp Interest Rate Risk Management in particular, the company has dual capabilities in regards to being a manufacturer of instantaneous adhesives and adhesive dispensers. Potential threats in equipment giving market are low which shows the possibility of developing brand name awareness in not only immediate adhesives but likewise in giving adhesives as none of the market players has actually managed to place itself in double capabilities.
Hazard of Substitutes: The hazard of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, built-in applicators, pencil applicators and sophisticated consoles. The reality remains that if Union Carbide Corp Interest Rate Risk Management introduced 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 factors for not releasing Case Study Help under Union Carbide Corp Interest Rate Risk Management name, we have a recommended marketing mix for Case Study Help given listed below if Union Carbide Corp Interest Rate Risk Management chooses to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a variety of factors. There are presently 89257 facilities in this sector and a high use of approximately 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which may be a good enough niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic tip' and 'vari-drop' so that the customer can decide whether he wishes to choose either of the two devices or not.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or through direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to purchase the product on his own.
Union Carbide Corp Interest Rate Risk Management would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Union Carbide Corp Interest Rate Risk Management for introducing Case Study Help.
Place: A distribution design where Union Carbide Corp Interest Rate Risk Management straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the distributor would be used by Union Carbide Corp Interest Rate Risk Management. Since the sales group is currently participated in offering immediate adhesives and they do not have proficiency in offering dispensers, including them in the selling procedure would be expensive particularly as each sales call costs around $120. The distributors are currently offering dispensers so offering Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget must 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 incurred for production, the recommended advertising plan costing $51816 is advised for initially introducing the product in the market. The prepared advertisements in publications would be targeted at mechanics in car maintenance stores. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).