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Village Ventures Case Study Solution
Village Ventures Case Study Help
Village Ventures Case Study Analysis
The following section concentrates on the of marketing for Village Ventures where the company's clients, competitors and core competencies have assessed in order to validate whether the choice 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 clients that Village Ventures deals in while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Village Ventures name.
Both the groups use Village Ventures high efficiency adhesives while the company is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the consumers of immediate adhesives for this analysis since the market for the latter has a lower potential for Village Ventures compared to that of immediate adhesives.
The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Village Ventures prospective market or consumer groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair and revamping business (MRO) and manufacturers handling items made of leather, wood, metal and plastic. This variety in consumers suggests that Village Ventures can target has numerous alternatives in regards to segmenting the market for its new product specifically as each of these groups would be needing the same type of item with respective modifications in demand, product packaging or amount. However, the consumer is not rate delicate or brand name conscious so launching a low priced dispenser under Village Ventures name is not an advised option.
Village Ventures is not just a maker of adhesives however takes pleasure in market management in the instantaneous adhesive industry. The business has its own competent and certified sales force which includes worth to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core skills are not limited to adhesive manufacturing only as Village Ventures likewise focuses on making adhesive dispensing equipment to help with using its products. This dual production method offers Village Ventures an edge over rivals since none of the competitors of dispensing equipment makes instantaneous adhesives. Additionally, none of these competitors offers straight to the customer either and uses suppliers for reaching out to consumers. While we are looking at the strengths of Village Ventures, it is essential to highlight the company's weaknesses.
The company's sales personnel is knowledgeable in training distributors, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. However, it must also be noted that the distributors are showing unwillingness when it concerns offering devices that requires servicing which increases the challenges of selling equipment under a specific brand.
If we take a look at Village Ventures line of product in adhesive equipment especially, the business has actually items targeted at the high-end of the marketplace. If Village Ventures offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than Village Ventures high-end product line, sales cannibalization would certainly be affecting Village Ventures sales income if the adhesive devices is sold under the business's trademark name.
We can see sales cannibalization impacting Village Ventures 27A Pencil Applicator which is priced at $275. There is another possible hazard which could reduce Village Ventures profits if Case Study Help is introduced under the business's trademark name. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Additionally, if we take a look at the market in general, the adhesives market does disappoint brand orientation or price consciousness which provides us 2 additional reasons for not introducing a low priced product under the company's trademark name.
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.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low particularly as the purchaser has low knowledge about the item. While business like Village Ventures have actually handled to train suppliers relating to adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by 3 players, it could be stated that the supplier takes pleasure in a greater bargaining power compared to the buyer. The fact stays that the supplier does not have much impact over the purchaser at this point especially as the purchaser does not show brand acknowledgment or rate sensitivity. This indicates that the supplier has the higher power when it concerns the adhesive market while the purchaser and the manufacturer do not have a major control over the actual sales.
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 instant adhesive market suggests that the market allows ease of entry. However, if we look at Village Ventures in particular, the business has dual abilities in terms of being a producer of adhesive dispensers and instant adhesives. Potential risks in devices giving industry are low which shows the possibility of developing brand name awareness in not just immediate adhesives however likewise in giving adhesives as none of the industry players has managed to place itself in double abilities.
Hazard of Substitutes: The risk of substitutes in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact stays that if Village Ventures presented Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered various reasons for not launching Case Study Help under Village Ventures name, we have actually a recommended marketing mix for Case Study Help provided listed below if Village Ventures decides to go ahead with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Automobile services' for a variety of reasons. There are currently 89257 facilities in this segment and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra growth potential of 10.1% which may be a sufficient specific niche market section 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 item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wishes to choose 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 sold through suppliers or through direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor lorry upkeep store requires to buy the item on his own.
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 design where Village Ventures straight sends out the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be used by Village Ventures. Since the sales group is currently taken part in offering instantaneous adhesives and they do not have proficiency in selling dispensers, including them in the selling procedure would be pricey especially as each sales call costs roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a favorable alternative.
Promotion: A low advertising spending plan must have been designated to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is advised for at first introducing the product in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
