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Pak Elektron Limited Converting Systems To Erp Case Study Help Checklist

Pak Elektron Limited Converting Systems To Erp Case Study Help Checklist

Pak Elektron Limited Converting Systems To Erp Case Study Solution
Pak Elektron Limited Converting Systems To Erp Case Study Help
Pak Elektron Limited Converting Systems To Erp Case Study Analysis



3 C Analyses for Evaluating Pak Elektron Limited Converting Systems To Erp decision to launch Case Study Solution


The following section focuses on the 3Cs of marketing for Pak Elektron Limited Converting Systems To Erp where the company's clients, competitors and core competencies have assessed in order to validate whether the decision to launch Case Study Help under Pak Elektron Limited Converting Systems To Erp trademark name would be a feasible alternative or not. We have actually to start with looked at the type of clients that Pak Elektron Limited Converting Systems To Erp handle while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Pak Elektron Limited Converting Systems To Erp name.
Pak Elektron Limited Converting Systems To Erp Case Study Solution

Customer Analysis

Pak Elektron Limited Converting Systems To Erp customers can be segmented into 2 groups, final consumers and commercial clients. Both the groups use Pak Elektron Limited Converting Systems To Erp high performance adhesives while the company is not just associated with the production of these adhesives but also markets them to these client groups. There are 2 types of products that are being offered to these possible markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the customers of instant adhesives for this analysis since the marketplace for the latter has a lower capacity for Pak Elektron Limited Converting Systems To Erp compared to that of immediate adhesives.

The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been identified earlier.If we take a look at a breakdown of Pak Elektron Limited Converting Systems To Erp prospective market or customer groups, we can see that the company offers to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair work and upgrading business (MRO) and producers dealing in products made from leather, wood, plastic and metal. This variety in customers suggests that Pak Elektron Limited Converting Systems To Erp can target has various choices in regards to segmenting the marketplace for its brand-new item specifically as each of these groups would be requiring the very same type of product with respective modifications in quantity, product packaging or need. The consumer is not cost sensitive or brand name conscious so releasing a low priced dispenser under Pak Elektron Limited Converting Systems To Erp name is not an advised choice.

Company Analysis

Pak Elektron Limited Converting Systems To Erp is not simply a manufacturer of adhesives but enjoys market management in the immediate adhesive market. The company has its own skilled and competent sales force which adds value to sales by training the business's network of 250 distributors for assisting in the sale of adhesives.

Core competences are not limited to adhesive manufacturing just as Pak Elektron Limited Converting Systems To Erp likewise specializes in making adhesive dispensing equipment to assist in making use of its products. This dual production strategy gives Pak Elektron Limited Converting Systems To Erp an edge over competitors given that none of the competitors of dispensing devices makes instant adhesives. Furthermore, none of these competitors offers straight to the customer either and makes use of suppliers for reaching out to clients. While we are looking at the strengths of Pak Elektron Limited Converting Systems To Erp, it is important to highlight the business's weaknesses.

Although the business's sales personnel is skilled in training suppliers, the reality stays that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it should also be noted that the suppliers are showing unwillingness when it concerns selling equipment that requires maintenance which increases the challenges of selling equipment under a specific trademark name.

The company has actually items intended at the high end of the market if we look at Pak Elektron Limited Converting Systems To Erp product line in adhesive equipment particularly. If Pak Elektron Limited Converting Systems To Erp sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Pak Elektron Limited Converting Systems To Erp high-end line of product, sales cannibalization would certainly be impacting Pak Elektron Limited Converting Systems To Erp sales income if the adhesive devices is offered under the company's trademark name.

We can see sales cannibalization impacting Pak Elektron Limited Converting Systems To Erp 27A Pencil Applicator which is priced at $275. There is another possible threat which might decrease Pak Elektron Limited Converting Systems To Erp income if Case Study Help is launched under the business's brand name. The reality that $175000 has been invested in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.

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

Competitor Analysis

The competitive environment of Pak Elektron Limited Converting Systems To Erp would be studied via Porter's 5 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 capacity due to the existence of fragmented segments with Pak Elektron Limited Converting Systems To Erp enjoying leadership and a combined market share of 75% with 2 other market gamers, Eastman and Permabond. While market competition in between these players could be called 'extreme' as the customer is not brand name conscious and each of these players has prominence in terms of market share, the truth still stays that the industry is not saturated and still has a number of market segments which can be targeted as potential specific niche markets even when releasing an adhesive. Nevertheless, we can even point out the truth that sales cannibalization might be resulting in market rivalry in the adhesive dispenser market while the market for instant adhesives uses growth potential.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the buyer has low understanding about the product. While companies like Pak Elektron Limited Converting Systems To Erp have handled to train distributors concerning adhesives, the last consumer is dependent on distributors. Roughly 72% of sales are made straight by producers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by 3 gamers, it could be said that the provider delights in a greater bargaining power compared to the buyer. Nevertheless, the truth stays that the provider does not have much impact over the buyer at this point especially as the purchaser does disappoint brand acknowledgment or price sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the maker and the purchaser do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the market enables ease of entry. However, if we look at Pak Elektron Limited Converting Systems To Erp in particular, the company has dual abilities in terms of being a producer of adhesive dispensers and immediate adhesives. Potential threats in equipment dispensing market are low which reveals the possibility of developing brand name awareness in not only immediate adhesives but also in dispensing adhesives as none of the industry players has actually managed to position itself in double capabilities.

Danger of Substitutes: The danger of replacements in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The truth remains that if Pak Elektron Limited Converting Systems To Erp introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Pak Elektron Limited Converting Systems To Erp Case Study Help


Despite the fact that our 3C analysis has provided various reasons for not releasing Case Study Help under Pak Elektron Limited Converting Systems To Erp name, we have actually a suggested marketing mix for Case Study Help provided below if Pak Elektron Limited Converting Systems To Erp decides to go on 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 potential of 10.1% which may be a great sufficient niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. A cost below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep shop requires to purchase the item on his own.

Pak Elektron Limited Converting Systems To Erp would only be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross success and net success for Pak Elektron Limited Converting Systems To Erp for releasing Case Study Help.

Place: A distribution design where Pak Elektron Limited Converting Systems To Erp directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Pak Elektron Limited Converting Systems To Erp. Since the sales group is currently taken part in offering instant adhesives and they do not have competence in selling dispensers, including them in the selling process would be costly specifically as each sales call expenses around $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a favorable option.

Promotion: A low promotional budget plan must have been assigned to Case Study Help but the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the suggested advertising plan costing $51816 is suggested for at first introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile upkeep shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Pak Elektron Limited Converting Systems To Erp Case Study Analysis

A recommended plan of action in the form of a marketing mix has been gone over for Case Study Help, the reality still remains that the product would not complement Pak Elektron Limited Converting Systems To Erp item line. We take a look at appendix 2, we can see how the overall gross profitability for the two models is anticipated to be approximately $49377 if 250 units of each design are manufactured per year according to the strategy. The initial planned advertising is around $52000 per year which would be putting a pressure on the business's resources leaving Pak Elektron Limited Converting Systems To Erp with an unfavorable net earnings if the costs are assigned to Case Study Help just.

The fact that Pak Elektron Limited Converting Systems To Erp has actually already sustained a preliminary financial investment of $48000 in the form of capital cost and prototype development suggests that the earnings from Case Study Help is insufficient to carry out the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low elasticity of need is not a preferable choice especially of it is affecting the sale of the business's income producing models.



Executive Summary Porters Five Forces Analysis Pestel Analysis Financial Analysis
Generic Strategy Vrine Analysis