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Waltham Motors Division Case Study Solution
Waltham Motors Division Case Study Help
Waltham Motors Division Case Study Analysis
The following section focuses on the of marketing for Waltham Motors Division where the business's consumers, rivals and core competencies have evaluated in order to validate whether the decision to introduce Case Study Help under Waltham Motors Division brand would be a feasible option or not. We have first of all taken a look at the kind of clients that Waltham Motors Division handle while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Waltham Motors Division name.
Waltham Motors Division consumers can be segmented into 2 groups, industrial consumers and last customers. Both the groups utilize Waltham Motors Division high performance adhesives while the business is not only associated with the production of these adhesives but likewise markets them to these customer groups. There are two kinds of products that are being offered to these prospective markets; instantaneous adhesives and anaerobic adhesives. We would be concentrating on the customers of instant adhesives for this analysis because the market for the latter has a lower potential for Waltham Motors Division compared to that of instantaneous adhesives.
The total market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have been determined earlier.If we take a look at a breakdown of Waltham Motors Division prospective market or consumer groups, we can see that the company sells to OEMs (Original Devices Makers), Do-it-Yourself clients, repair and overhauling business (MRO) and makers dealing in items made of leather, wood, plastic and metal. This variety in clients recommends that Waltham Motors Division can target has different alternatives in terms of segmenting the market for its new item particularly as each of these groups would be requiring the exact same type of item with particular modifications in demand, product packaging or quantity. Nevertheless, the consumer is not price sensitive or brand mindful so releasing a low priced dispenser under Waltham Motors Division name is not a recommended choice.
Waltham Motors Division is not simply a manufacturer of adhesives but takes pleasure in market leadership in the instantaneous adhesive industry. The business has its own knowledgeable and competent sales force which includes value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.
Core competences are not limited to adhesive production only as Waltham Motors Division also focuses on making adhesive dispensing equipment to facilitate making use of its products. This dual production strategy offers Waltham Motors Division an edge over competitors considering that none of the competitors of dispensing devices makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the customer either and utilizes distributors for reaching out to consumers. While we are taking a look at the strengths of Waltham Motors Division, it is very important to highlight the business's weaknesses also.
The company's sales staff is competent in training suppliers, the reality remains that the sales team is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive devices. It must also be kept in mind that the distributors are showing unwillingness when it comes to offering devices that requires servicing which increases the difficulties of offering devices under a specific brand name.
If we take a look at Waltham Motors Division line of product in adhesive equipment particularly, the company has items focused on the high-end of the market. If Waltham Motors Division sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Waltham Motors Division high-end line of product, sales cannibalization would absolutely be impacting Waltham Motors Division sales revenue if the adhesive equipment is sold under the business's brand name.
We can see sales cannibalization affecting Waltham Motors Division 27A Pencil Applicator which is priced at $275. There is another possible threat which might lower Waltham Motors Division profits if Case Study Help is launched under the company's brand name. The fact that $175000 has been spent in promoting SuperBonder recommends 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 take a look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost consciousness which offers us two extra reasons for not releasing a low priced product under the business's trademark name.
The competitive environment of Waltham Motors Division would be studied by means of 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 specifically as the buyer has low knowledge about the product. While companies like Waltham Motors Division have managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Roughly 72% of sales are made straight by producers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 players, it could be said that the supplier delights in a higher bargaining power compared to the buyer. The reality remains that the provider does not have much impact over the purchaser at this point especially as the purchaser does not reveal brand acknowledgment or cost level of sensitivity. This suggests that the distributor has the greater power when it comes to the adhesive market while the buyer and the producer 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 revealed by foreign Japanese rivals in the instant adhesive market indicates that the market allows ease of entry. However, if we look at Waltham Motors Division in particular, the business has dual abilities in terms of being a producer of adhesive dispensers and instant adhesives. Possible hazards in devices giving industry are low which reveals the possibility of creating brand awareness in not just instantaneous adhesives however also in giving adhesives as none of the industry gamers has managed to position itself in double abilities.
Danger of Substitutes: The threat of alternatives in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The reality remains that if Waltham Motors Division introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given different reasons for not releasing Case Study Help under Waltham Motors Division name, we have actually a suggested marketing mix for Case Study Help provided below if Waltham Motors Division decides to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an additional development capacity of 10.1% which may be a great adequate niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this specific market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being offered for usage with SuperBonder.
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. This cost would not consist of the expense of the 'vari pointer' or the 'glumetic idea'. A cost 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 influencing mechanics to purchase the item for use in their everyday upkeep tasks.
Waltham Motors Division would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Waltham Motors Division for introducing Case Study Help.
Place: A distribution model where Waltham Motors Division directly sends the item to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Waltham Motors Division. Since the sales team is already engaged in offering instant adhesives and they do not have competence in selling dispensers, involving them in the selling procedure would be expensive specifically as each sales call costs roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial choice.
Promotion: Although a low advertising budget plan must have been designated to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended marketing plan costing $51816 is recommended for at first introducing the item in the market. The planned ads in magazines would be targeted at mechanics in vehicle maintenance stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
