Walter Industries Case Study Help Checklist

Walter Industries Case Study Help Checklist

Walter Industries Case Study Solution
Walter Industries Case Study Help
Walter Industries Case Study Analysis

Analyses for Evaluating Walter Industries decision to launch Case Study Solution

The following section focuses on the of marketing for Walter Industries where the company's clients, competitors and core proficiencies have assessed in order to validate whether the decision to introduce Case Study Help under Walter Industries trademark name would be a practical choice or not. We have first of all taken a look at the kind of customers that Walter Industries deals in while an evaluation of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not introducing Case Study Help under Walter Industries name.
Walter Industries Case Study Solution

Customer Analysis

Walter Industries consumers can be segmented into 2 groups, commercial consumers and last consumers. Both the groups use Walter Industries high performance adhesives while the business is not only involved in the production of these adhesives however also markets them to these client groups. There are two types of items that are being offered to these prospective markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instant adhesives for this analysis since the marketplace for the latter has a lower capacity for Walter Industries compared to that of instantaneous adhesives.

The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Walter Industries prospective market or customer groups, we can see that the company offers to OEMs (Original Devices Makers), Do-it-Yourself customers, repair work and revamping companies (MRO) and manufacturers dealing in products made of leather, wood, plastic and metal. This diversity in clients recommends that Walter Industries can target has various choices in regards to segmenting the marketplace for its new product particularly as each of these groups would be needing the very same kind of item with particular changes in quantity, packaging or demand. The customer is not price delicate or brand conscious so introducing a low priced dispenser under Walter Industries name is not a recommended alternative.

Company Analysis

Walter Industries is not just a maker of adhesives but takes pleasure in market leadership in the instantaneous adhesive market. The company has its own knowledgeable and competent sales force which includes worth to sales by training the company's network of 250 distributors for helping with the sale of adhesives.

Core proficiencies are not restricted to adhesive manufacturing just as Walter Industries likewise specializes in making adhesive dispensing devices to facilitate using its products. This dual production technique offers Walter Industries an edge over competitors considering that none of the rivals of giving equipment makes instantaneous adhesives. Additionally, none of these competitors sells directly to the customer either and uses distributors for reaching out to clients. While we are taking a look at the strengths of Walter Industries, it is essential to highlight the company's weak points as well.

The business's sales personnel is proficient in training distributors, the fact remains that the sales team is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. However, it must likewise be noted that the suppliers are showing reluctance when it comes to selling equipment that requires servicing which increases the obstacles of selling devices under a particular brand.

If we take a look at Walter Industries line of product in adhesive devices particularly, the company has actually products targeted at the high end of the market. If Walter Industries offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Offered the truth that Case Study Help is priced lower than Walter Industries high-end product line, sales cannibalization would absolutely be affecting Walter Industries sales profits if the adhesive devices is offered under the business's brand name.

We can see sales cannibalization impacting Walter Industries 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible risk which could lower Walter Industries income. The fact that $175000 has been spent in promoting SuperBonder recommends 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 immediate adhesive.

Furthermore, if we look at the market in general, the adhesives market does disappoint brand orientation or cost consciousness which gives us two extra factors for not releasing a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Walter Industries would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.

Degree of Rivalry:

Currently we can see that the adhesive market has a high development potential due to the presence of fragmented sectors with Walter Industries delighting in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry competition between these players could be called 'intense' as the consumer is not brand conscious and each of these players has prominence in terms of market share, the fact still stays that the industry is not saturated and still has a number of market sectors which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization might be leading to industry competition in the adhesive dispenser market while the market for instant adhesives offers development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the buyer has low knowledge about the item. While companies like Walter Industries have managed to train suppliers relating to adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made straight by makers and distributors for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is dominated by 3 players, it could be stated that the provider takes pleasure in a higher bargaining power compared to the buyer. Nevertheless, the reality remains that the supplier does not have much impact over the buyer at this moment especially as the buyer does not show brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a major control over the actual sales, this shows that the distributor has the higher power.

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 instant adhesive market shows that the marketplace allows ease of entry. However, if we take a look at Walter Industries in particular, the business has dual capabilities in regards to being a maker of adhesive dispensers and immediate adhesives. Prospective dangers in devices giving industry are low which reveals the possibility of developing brand name awareness in not just instant adhesives but likewise in dispensing adhesives as none of the industry gamers has handled to place itself in dual abilities.

Danger of Substitutes: The threat of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact remains that if Walter Industries introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).

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

Walter Industries Case Study Help

Despite the fact that our 3C analysis has actually given numerous factors for not releasing Case Study Help under Walter Industries name, we have actually a suggested marketing mix for Case Study Help offered below if Walter Industries chooses to go on with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor car services' for a number of factors. This market has an additional growth potential of 10.1% which might be a good enough niche market sector 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 potable low priced adhesive is being offered for usage with SuperBonder.

Price: The suggested price of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle upkeep shop needs to buy the product on his own.

Walter Industries would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net success for Walter Industries for releasing Case Study Help.

Place: A distribution model where Walter Industries directly sends out the item to the local supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Walter Industries. Because the sales group is currently participated in selling instant adhesives and they do not have know-how in selling dispensers, including them in the selling procedure would be costly specifically as each sales call expenses roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable option.

Promotion: A low advertising budget plan ought to have been appointed to Case Study Help but the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is recommended for initially introducing the product in the market. The prepared ads in publications would be targeted at mechanics in automobile upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Walter Industries Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the truth still stays that the product would not match Walter Industries line of product. We have a look at appendix 2, we can see how the total gross profitability for the two models is expected to be roughly $49377 if 250 systems of each model are manufactured each year based on the strategy. However, the initial prepared advertising is roughly $52000 each year which would be putting a pressure on the company's resources leaving Walter Industries with an unfavorable earnings if the expenditures are allocated to Case Study Help just.

The reality that Walter Industries has already sustained an initial financial investment of $48000 in the form of capital expense and prototype development indicates that the earnings from Case Study Help is not enough to carry out the threat of sales cannibalization. Other than that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a preferable option specifically of it is impacting the sale of the business's earnings creating designs.