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Village Ventures Case Study Help Checklist

Village Ventures Case Study Help Checklist

Village Ventures Case Study Solution
Village Ventures Case Study Help
Village Ventures Case Study Analysis



Analyses for Evaluating Village Ventures decision to launch Case Study Solution


The following section focuses on the of marketing for Village Ventures where the company's consumers, rivals and core proficiencies have assessed in order to justify whether the decision to release Case Study Help under Village Ventures trademark name would be a possible alternative or not. We have firstly looked at the kind of consumers that Village Ventures handle while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Village Ventures name.
Village Ventures Case Study Solution

Customer Analysis

Village Ventures customers can be segmented into 2 groups, final customers and commercial customers. Both the groups utilize Village Ventures high performance adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these consumer groups. There are 2 kinds of products that are being offered to these possible markets; anaerobic adhesives and instant adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis because the marketplace for the latter has a lower potential for Village Ventures compared to that of instantaneous adhesives.

The overall market for immediate adhesives is around 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we look at a breakdown of Village Ventures potential market or client groups, we can see that the business sells to OEMs (Original Devices Manufacturers), Do-it-Yourself clients, repair work and revamping business (MRO) and producers handling items made of leather, plastic, wood and metal. This diversity in consumers suggests that Village Ventures can target has different choices in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be requiring the same kind of item with respective changes in amount, packaging or demand. Nevertheless, the client is not rate sensitive or brand name conscious so launching a low priced dispenser under Village Ventures name is not an advised alternative.

Company Analysis

Village Ventures is not just a producer of adhesives however takes pleasure in market management in the immediate adhesive industry. The company has its own knowledgeable and certified sales force which adds value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.

Core skills are not limited to adhesive production just as Village Ventures likewise specializes in making adhesive giving equipment to help with the use of its items. This double production technique provides Village Ventures an edge over rivals since none of the competitors of giving equipment makes instant adhesives. In addition, none of these rivals sells directly to the consumer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Village Ventures, it is crucial to highlight the business's weaknesses.

The business's sales staff is competent in training suppliers, the truth remains that the sales team is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it needs to also be kept in mind that the distributors are showing hesitation when it comes to selling devices that requires servicing which increases the obstacles of selling devices under a specific brand name.

The company has actually products aimed at the high end of the market if we look at Village Ventures item line in adhesive equipment particularly. The possibility of sales cannibalization exists if Village Ventures offers Case Study Help under the same portfolio. Offered the fact that Case Study Help is priced lower than Village Ventures high-end product line, sales cannibalization would definitely be impacting Village Ventures sales revenue if the adhesive devices is offered under the company's brand.

We can see sales cannibalization affecting Village Ventures 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible danger which might lower Village Ventures earnings. The reality that $175000 has been spent in promoting SuperBonder suggests 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 immediate adhesive.

In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or cost awareness which provides us 2 additional factors for not releasing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Village Ventures would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high development capacity due to the existence of fragmented sectors with Village Ventures delighting in leadership and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While industry rivalry in between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these players has prominence in terms of market share, the reality still stays that the industry is not filled and still has numerous market segments which can be targeted as prospective specific niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization might be leading to industry rivalry in the adhesive dispenser market while the market for immediate adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low understanding about the product. While business like Village Ventures have actually managed to train suppliers concerning adhesives, the last customer depends on suppliers. Roughly 72% of sales are made directly by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is dominated by three players, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. Nevertheless, the reality stays that the supplier does not have much influence over the purchaser at this moment particularly as the purchaser does not show brand name acknowledgment or cost level of sensitivity. This shows that the distributor has the higher power when it concerns the adhesive market while the producer and the purchaser do not have a significant control over the actual sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market indicates that the marketplace enables ease of entry. Nevertheless, if we take a look at Village Ventures in particular, the company has double abilities in regards to being a manufacturer of adhesive dispensers and immediate adhesives. Prospective hazards in equipment dispensing industry are low which shows the possibility of producing brand name awareness in not just instant adhesives but also in dispensing adhesives as none of the market gamers has managed to position itself in dual capabilities.

Hazard of Substitutes: The threat of alternatives in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The fact stays that if Village Ventures introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).


4 P Analysis: A suggested Marketing Mix for Case Study Help

Village Ventures Case Study Help


Despite the fact that our 3C analysis has given numerous reasons for not launching Case Study Help under Village Ventures name, we have a recommended marketing mix for Case Study Help given listed below if Village Ventures decides to go ahead 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 section and a high usage of around 58900 pounds. is being utilized by 36.1 % of the market. This market has an additional development capacity of 10.1% which might be a sufficient specific niche market section for Case Study Help. Not only 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 sold for usage with SuperBonder. The product would be sold without the 'glumetic idea' and 'vari-drop' so that the consumer can choose whether he wants to select either of the two accessories or not.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This rate would not include the cost of the 'vari suggestion' or the 'glumetic pointer'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to buy the product on his own. This would increase the possibility of influencing mechanics to acquire the product for usage in their daily maintenance tasks.

Village Ventures would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Village Ventures for introducing Case Study Help.

Place: A circulation model where Village Ventures directly sends out the item to the local distributor and keeps a 10% drop delivery allowance for the distributor would be used by Village Ventures. Because the sales group is already participated in offering instantaneous adhesives and they do not have proficiency in selling dispensers, involving them in the selling procedure would be costly particularly as each sales call expenses around $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial choice.

Promotion: A low marketing budget plan must have been designated to Case Study Help however the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is recommended for at first presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Village Ventures Case Study Analysis

A suggested plan of action in the form of a marketing mix has been talked about for Case Study Help, the truth still remains that the item would not match Village Ventures item line. We have a look at appendix 2, we can see how the total gross profitability for the two models is anticipated to be roughly $49377 if 250 systems of each model are manufactured per year based on the plan. The preliminary prepared marketing is roughly $52000 per year which would be putting a strain on the business's resources leaving Village Ventures with a negative net income if the costs are designated to Case Study Help only.

The truth that Village Ventures has already sustained an initial investment of $48000 in the form of capital cost and model development shows that the revenue from Case Study Help is insufficient to carry out the danger of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low flexibility of demand is not a more effective option specifically of it is affecting the sale of the company's profits generating models.



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