The following area focuses on the of marketing for Virginia Craftsmen Inc where the business's consumers, rivals and core proficiencies have examined in order to justify whether the choice to launch Case Study Help under Virginia Craftsmen Inc trademark name would be a feasible alternative or not. We have firstly looked at the type of consumers that Virginia Craftsmen Inc deals in while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Virginia Craftsmen Inc name.
Both the groups use Virginia Craftsmen Inc high efficiency adhesives while the company is not just involved in the production of these adhesives but also markets them to these consumer groups. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for Virginia Craftsmen Inc compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Virginia Craftsmen Inc prospective market or consumer groups, we can see that the company offers to OEMs (Original Devices Producers), Do-it-Yourself customers, repair and revamping companies (MRO) and producers handling items made of leather, wood, metal and plastic. This variety in consumers recommends that Virginia Craftsmen Inc can target has different options in terms of segmenting the market for its brand-new product specifically as each of these groups would be needing the very same type of item with particular changes in packaging, amount or demand. However, the customer is not cost delicate or brand mindful so releasing a low priced dispenser under Virginia Craftsmen Inc name is not a suggested alternative.
Virginia Craftsmen Inc is not just a manufacturer of adhesives but delights in market management in the instant adhesive industry. The company has its own experienced and qualified sales force which adds worth to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.
Core competences are not restricted to adhesive manufacturing just as Virginia Craftsmen Inc likewise specializes in making adhesive dispensing equipment to assist in using its items. This dual production method offers Virginia Craftsmen Inc an edge over competitors considering that none of the competitors of dispensing devices makes instant adhesives. In addition, none of these competitors sells straight to the consumer either and utilizes suppliers for reaching out to clients. While we are taking a look at the strengths of Virginia Craftsmen Inc, it is essential to highlight the company's weaknesses as well.
The business's sales personnel is competent in training distributors, the reality remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It needs to likewise be noted that the distributors are showing reluctance when it comes to selling equipment that requires servicing which increases the difficulties of selling devices under a specific brand name.
If we take a look at Virginia Craftsmen Inc product line in adhesive equipment particularly, the business has actually products focused on the high-end of the market. The possibility of sales cannibalization exists if Virginia Craftsmen Inc sells Case Study Help under the same portfolio. Given the truth that Case Study Help is priced lower than Virginia Craftsmen Inc high-end line of product, sales cannibalization would absolutely be impacting Virginia Craftsmen Inc sales profits if the adhesive devices is sold under the business's brand name.
We can see sales cannibalization affecting Virginia Craftsmen Inc 27A Pencil Applicator which is priced at $275. There is another possible danger which could reduce Virginia Craftsmen Inc revenue if Case Study Help is launched under the company's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a good time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does not show brand name orientation or cost awareness which gives us two extra reasons for not introducing a low priced item under the company's brand.
The competitive environment of Virginia Craftsmen Inc would be studied via 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 industry is low specifically as the buyer has low knowledge about the product. While companies like Virginia Craftsmen Inc have managed to train suppliers concerning adhesives, the last customer is dependent on distributors. Around 72% of sales are made straight by producers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by 3 gamers, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The truth stays that the supplier does not have much influence over the buyer at this point specifically as the purchaser does not reveal brand acknowledgment or rate sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the marketplace permits ease of entry. If we look at Virginia Craftsmen Inc in particular, the business has double capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential hazards in equipment dispensing industry are low which reveals the possibility of producing brand name awareness in not only instant adhesives however likewise in dispensing adhesives as none of the industry gamers has actually managed to place itself in double abilities.
Risk of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The fact remains that if Virginia Craftsmen Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered numerous factors for not releasing Case Study Help under Virginia Craftsmen Inc name, we have actually a recommended marketing mix for Case Study Help offered below if Virginia Craftsmen Inc chooses to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 establishments in this section and a high use of around 58900 pounds. is being used by 36.1 % of the market. This market has an additional growth potential of 10.1% which might be a sufficient niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost usage with SuperBonder. The product would be sold without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wants to opt for either of the two accessories or not.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or via direct selling. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store needs to purchase the item on his own.
Virginia Craftsmen Inc would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net success for Virginia Craftsmen Inc for launching Case Study Help.
Place: A circulation design where Virginia Craftsmen Inc directly sends out the item to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Virginia Craftsmen Inc. Considering that the sales group is already taken part in offering instantaneous adhesives and they do not have expertise in offering dispensers, including them in the selling process would be expensive specifically as each sales call expenses approximately $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: A low promotional budget plan should have been assigned to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the suggested advertising strategy costing $51816 is suggested for initially introducing the item in the market. The prepared advertisements 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).