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Urban Water Partners B Case Study Solution
Urban Water Partners B Case Study Help
Urban Water Partners B Case Study Analysis
The following area focuses on the of marketing for Urban Water Partners B where the company's customers, competitors and core competencies have actually assessed in order to validate whether the decision to release Case Study Help under Urban Water Partners B trademark name would be a feasible option or not. We have firstly looked at the kind of consumers that Urban Water Partners B handle while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Urban Water Partners B name.
Both the groups use Urban Water Partners B high efficiency adhesives while the company is not only involved in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the consumers of instant adhesives for this analysis since the market for the latter has a lower capacity for Urban Water Partners B compared to that of instantaneous adhesives.
The total market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have been determined earlier.If we take a look at a breakdown of Urban Water Partners B prospective market or client groups, we can see that the business sells to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair and revamping companies (MRO) and makers handling products made from leather, metal, plastic and wood. This variety in consumers suggests that Urban Water Partners B can target has numerous options in regards to segmenting the market for its brand-new item particularly as each of these groups would be needing the exact same type of product with respective changes in packaging, need or quantity. The consumer is not rate sensitive or brand mindful so launching a low priced dispenser under Urban Water Partners B name is not an advised alternative.
Urban Water Partners B is not simply a maker of adhesives however enjoys market leadership in the instantaneous adhesive market. The business has its own competent and certified 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 Urban Water Partners B likewise concentrates on making adhesive giving equipment to facilitate the use of its items. This dual production method provides Urban Water Partners B an edge over rivals considering that none of the rivals of giving devices makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the consumer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Urban Water Partners B, it is essential to highlight the company's weaknesses.
The business's sales staff is skilled in training distributors, the truth remains that the sales team is not trained in offering equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it must likewise be noted that the distributors are revealing hesitation when it comes to selling equipment that requires maintenance which increases the obstacles of offering equipment under a specific trademark name.
The business has items intended at the high end of the market if we look at Urban Water Partners B product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Urban Water Partners B offers Case Study Help under the same portfolio. Provided the reality that Case Study Help is priced lower than Urban Water Partners B high-end line of product, sales cannibalization would absolutely be impacting Urban Water Partners B sales profits if the adhesive equipment is offered under the company's brand.
We can see sales cannibalization affecting Urban Water Partners B 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible danger which might decrease Urban Water Partners B income. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for releasing 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.
Additionally, if we look at the market in general, the adhesives market does not show brand orientation or price consciousness which provides us 2 extra reasons for not releasing a low priced product under the company's brand name.
The competitive environment of Urban Water Partners B would be studied via 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 especially as the purchaser has low knowledge about the product. While business like Urban Water Partners B have handled to train suppliers regarding adhesives, the final consumer depends on distributors. Around 72% of sales are made straight by manufacturers and suppliers for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is dominated by 3 gamers, it could be said that the provider delights in a higher bargaining power compared to the purchaser. The truth remains that the provider does not have much impact over the buyer at this point particularly as the buyer does not reveal brand recognition or cost sensitivity. This suggests that the supplier has the higher power when it concerns the adhesive market while the purchaser and the producer do not have a major 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 instantaneous adhesive market suggests that the market permits ease of entry. However, if we look at Urban Water Partners B in particular, the company has double capabilities in regards to being a maker of adhesive dispensers and instantaneous adhesives. Prospective hazards in devices giving industry are low which shows the possibility of developing brand awareness in not just immediate adhesives but also in giving adhesives as none of the industry gamers has actually managed to place itself in dual capabilities.
Hazard of Substitutes: The danger of replacements in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Urban Water Partners B 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 Urban Water Partners B name, we have a suggested marketing mix for Case Study Help offered listed below if Urban Water Partners B decides to proceed with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this section and a high usage of around 58900 lbs. is being utilized by 36.1 % of the market. This market has an extra growth capacity of 10.1% which may be a sufficient specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being cost usage with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wishes to go with either of the two devices or not.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This cost would not include the cost of the 'vari idea' or the 'glumetic pointer'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop needs to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for usage in their day-to-day upkeep tasks.
Urban Water Partners B would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Urban Water Partners B for launching Case Study Help.
Place: A circulation design where Urban Water Partners B straight sends out the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Urban Water Partners B. Given that the sales team is already engaged in offering immediate adhesives and they do not have expertise in offering dispensers, including them in the selling process would be pricey particularly as each sales call costs approximately $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low promotional spending plan must have been appointed to Case Study Help but the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested advertising plan costing $51816 is advised for initially presenting the product in the market. The planned ads in publications would be targeted at mechanics in vehicle maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
