Waltham Motors Division Case Study Help Checklist

Waltham Motors Division Case Study Help Checklist

Waltham Motors Division Case Study Solution
Waltham Motors Division Case Study Help
Waltham Motors Division Case Study Analysis

Analyses for Evaluating Waltham Motors Division decision to launch Case Study Solution

The following area focuses on the of marketing for Waltham Motors Division where the business's consumers, competitors and core proficiencies have evaluated in order to justify whether the choice to release Case Study Help under Waltham Motors Division brand name would be a feasible alternative or not. We have first of all looked at the kind of clients that Waltham Motors Division deals in while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Waltham Motors Division name.
Waltham Motors Division Case Study Solution

Customer Analysis

Both the groups use Waltham Motors Division high efficiency adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the market for the latter has a lower capacity for Waltham Motors Division compared to that of immediate adhesives.

The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Waltham Motors Division possible market or consumer groups, we can see that the company offers to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair work and revamping companies (MRO) and producers handling items made from leather, metal, plastic and wood. This variety in customers recommends that Waltham Motors Division can target has numerous options in terms of segmenting the market for its brand-new item especially as each of these groups would be requiring the exact same type of item with particular changes in product packaging, quantity or demand. Nevertheless, the client is not price sensitive or brand conscious so introducing a low priced dispenser under Waltham Motors Division name is not a suggested choice.

Company Analysis

Waltham Motors Division is not just a manufacturer of adhesives but enjoys market management in the instantaneous adhesive market. The business has its own skilled and competent sales force which includes value to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core skills are not restricted to adhesive manufacturing only as Waltham Motors Division likewise specializes in making adhesive giving equipment to assist in the use of its products. This dual production strategy offers Waltham Motors Division an edge over competitors given that none of the competitors of giving equipment makes immediate adhesives. Furthermore, none of these competitors sells directly to the customer either and makes use of distributors for connecting to consumers. While we are looking at the strengths of Waltham Motors Division, it is important to highlight the business's weak points.

The company's sales staff is proficient in training distributors, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It should likewise be noted that the distributors are revealing unwillingness when it comes to selling devices that needs servicing which increases the difficulties of selling equipment under a specific brand name.

The company has actually items aimed at the high end of the market if we look at Waltham Motors Division item line in adhesive equipment particularly. If Waltham Motors Division sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Waltham Motors Division high-end product line, sales cannibalization would absolutely be impacting Waltham Motors Division sales profits if the adhesive equipment is offered under the business's trademark name.

We can see sales cannibalization impacting Waltham Motors Division 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible threat which might lower Waltham Motors Division income. The fact that $175000 has been invested in promoting SuperBonder recommends that it is not a good 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.

In addition, if we look at the market in general, the adhesives market does disappoint brand orientation or rate awareness which provides us 2 extra reasons for not introducing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Waltham Motors Division would be studied by means of 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 growth potential due to the existence of fragmented sections with Waltham Motors Division enjoying leadership and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry rivalry between these players could be called 'intense' as the consumer is not brand name conscious and each of these players has prominence in terms of market share, the reality still remains that the market is not filled and still has several market segments which can be targeted as possible specific niche markets even when introducing an adhesive. However, we can even point out the reality that sales cannibalization might be resulting in market competition in the adhesive dispenser market while the market for instantaneous adhesives provides development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low understanding about the product. While companies like Waltham Motors Division have actually managed to train suppliers relating to adhesives, the final consumer is dependent on suppliers. Approximately 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by 3 gamers, it could be said that the supplier delights in a greater bargaining power compared to the purchaser. However, the fact remains that the supplier does not have much impact over the buyer at this point particularly as the buyer does not show brand acknowledgment or cost sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the actual sales, this suggests that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market suggests that the market allows ease of entry. However, if we look at Waltham Motors Division in particular, the business has double capabilities in regards to being a manufacturer of adhesive dispensers and immediate adhesives. Potential dangers in equipment giving industry are low which reveals the possibility of producing brand awareness in not only instant adhesives however likewise in giving adhesives as none of the market players has actually handled to position itself in double abilities.

Risk of Substitutes: The risk of substitutes in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The fact remains that if Waltham Motors Division introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).

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

Waltham Motors Division Case Study Help

Despite the fact that our 3C analysis has provided different factors for not releasing Case Study Help under Waltham Motors Division name, we have a suggested marketing mix for Case Study Help provided below if Waltham Motors Division chooses to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an extra development capacity of 10.1% which may be an excellent sufficient niche market sector for Case Study Help. Not just would a portable dispenser offer convenience 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 use with SuperBonder.

Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This cost would not include the expense of the 'vari tip' or the 'glumetic tip'. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop needs to buy the product on his own. This would increase the possibility of affecting mechanics to acquire the product for use in their daily upkeep jobs.

Waltham Motors Division would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Waltham Motors Division for launching Case Study Help.

Place: A circulation design where Waltham Motors Division directly sends out the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Waltham Motors Division. Because the sales team is currently participated in offering immediate adhesives and they do not have competence in selling dispensers, involving them in the selling procedure would be costly particularly as each sales call costs roughly $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a favorable alternative.

Promotion: A low promotional budget needs to have been assigned to Case Study Help however the truth that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested advertising strategy costing $51816 is recommended for at first presenting the item in the market. The planned ads in publications would be targeted at mechanics in lorry maintenance shops. (Recommended 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
Waltham Motors Division Case Study Analysis

A suggested strategy of action in the form of a marketing mix has been discussed for Case Study Help, the truth still remains that the product would not complement Waltham Motors Division product line. We take a look at appendix 2, we can see how the overall gross success for the two designs is expected to be around $49377 if 250 units of each model are manufactured annually based on the strategy. The preliminary prepared marketing is roughly $52000 per year which would be putting a stress on the company's resources leaving Waltham Motors Division with a negative net income if the expenses are allocated to Case Study Help just.

The fact that Waltham Motors Division has already incurred a preliminary investment of $48000 in the form of capital cost and prototype development shows that the income from Case Study Help is insufficient to carry out the threat of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low elasticity of need is not a more suitable alternative specifically of it is affecting the sale of the company's revenue producing models.