The following section concentrates on the of marketing for Windward Investment Management where the company's customers, competitors and core proficiencies have evaluated in order to validate whether the choice to release Case Study Help under Windward Investment Management trademark name would be a practical alternative or not. We have first of all looked at the type of customers that Windward Investment Management 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 launching Case Study Help under Windward Investment Management name.
Windward Investment Management clients can be segmented into two groups, industrial clients and last consumers. Both the groups use Windward Investment Management high performance adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these client groups. There are two types of items that are being sold to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be focusing on the consumers of immediate adhesives for this analysis given that the marketplace for the latter has a lower capacity for Windward Investment Management compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have actually been identified earlier.If we look at a breakdown of Windward Investment Management possible market or consumer groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and makers dealing in items made of leather, metal, wood and plastic. This diversity in customers suggests that Windward Investment Management can target has numerous choices in regards to segmenting the market for its brand-new item particularly as each of these groups would be requiring the very same kind of item with respective changes in demand, amount or packaging. The client is not rate sensitive or brand name mindful so releasing a low priced dispenser under Windward Investment Management name is not an advised option.
Windward Investment Management is not just a maker of adhesives but delights in market management in the instantaneous adhesive market. The business has its own proficient and competent sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives. Windward Investment Management believes in special circulation as shown by the reality that it has picked to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for broadening reach through distributors. The company's reach is not restricted to North America just as it likewise enjoys worldwide sales. With 1400 outlets spread out all throughout The United States and Canada, Windward Investment Management has its in-house production plants instead of using out-sourcing as the preferred method.
Core competences are not restricted to adhesive manufacturing only as Windward Investment Management also concentrates on making adhesive dispensing devices to help with the use of its products. This double production technique provides Windward Investment Management an edge over rivals because none of the rivals of giving devices makes instant adhesives. In addition, none of these rivals offers straight to the consumer either and uses distributors for reaching out to clients. While we are looking at the strengths of Windward Investment Management, it is necessary to highlight the company's weak points too.
The business's sales staff is competent in training distributors, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive devices. It must likewise be kept in mind that the distributors are revealing reluctance when it comes to offering equipment that needs maintenance which increases the difficulties of offering equipment under a particular brand name.
If we look at Windward Investment Management product line in adhesive equipment particularly, the company has actually products targeted at the high-end of the market. If Windward Investment Management offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Given the fact that Case Study Help is priced lower than Windward Investment Management high-end product line, sales cannibalization would definitely be affecting Windward Investment Management sales revenue if the adhesive equipment is offered under the company's brand.
We can see sales cannibalization impacting Windward Investment Management 27A Pencil Applicator which is priced at $275. There is another possible risk which could reduce Windward Investment Management income if Case Study Help is introduced under the company's brand. The reality that $175000 has been spent in promoting SuperBonder suggests 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 instant adhesive.
In addition, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or rate awareness which provides us two extra reasons for not launching a low priced item under the company's trademark name.
The competitive environment of Windward Investment Management would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low knowledge about the product. While companies like Windward Investment Management have managed to train distributors relating to adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made directly 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 controlled by 3 gamers, it could be said that the provider delights in a greater bargaining power compared to the purchaser. The reality stays that the provider does not have much impact over the buyer at this point especially as the buyer does not reveal brand name recognition or cost sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the actual sales, this shows that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market suggests that the marketplace permits ease of entry. Nevertheless, if we take a look at Windward Investment Management in particular, the business has dual capabilities in terms of being a maker of instantaneous adhesives and adhesive dispensers. Possible dangers in equipment dispensing industry are low which reveals the possibility of producing brand name awareness in not just instant adhesives however also in giving adhesives as none of the industry players has actually managed to place itself in dual capabilities.
Hazard of Substitutes: The threat of substitutes in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact remains that if Windward Investment Management introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given different reasons for not launching Case Study Help under Windward Investment Management name, we have a recommended marketing mix for Case Study Help given listed below if Windward Investment Management chooses to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor car services' for a number of reasons. This market has an extra growth capacity of 10.1% which might be an excellent adequate specific niche market section for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.
Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. This rate would not consist of the cost of the 'vari tip' or the 'glumetic suggestion'. A price below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop needs to purchase the product on his own. This would increase the possibility of influencing mechanics to buy the item for usage in their everyday maintenance jobs.
Windward Investment Management would just be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net success for Windward Investment Management for releasing Case Study Help.
Place: A distribution design where Windward Investment Management straight sends out the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Windward Investment Management. Given that the sales team is currently engaged in offering instant adhesives and they do not have competence in offering dispensers, including them in the selling procedure would be expensive particularly as each sales call expenses roughly $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable choice.
Promotion: Although a low promotional budget plan should have been appointed 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 costs incurred for production, the recommended advertising strategy costing $51816 is advised for at first presenting the item in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).