The following area focuses on the 3Cs of marketing for The Recs Project C where the company's clients, competitors and core competencies have actually assessed in order to validate whether the choice to launch Case Study Help under The Recs Project C brand would be a possible alternative or not. We have first of all taken a look at the kind of clients that The Recs Project C deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under The Recs Project C name.
The Recs Project C consumers can be segmented into two groups, last customers and industrial customers. Both the groups use The Recs Project C high performance adhesives while the company is not only associated with the production of these adhesives but also markets them to these customer groups. There are 2 types of products that are being offered to these potential markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the consumers of instant adhesives for this analysis given that the marketplace for the latter has a lower potential for The Recs Project C compared to that of immediate adhesives.
The total market for instant adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been recognized earlier.If we look at a breakdown of The Recs Project C potential market or customer groups, we can see that the company sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself clients, repair and revamping business (MRO) and producers handling products made from leather, metal, wood and plastic. This variety in consumers suggests that The Recs Project C can target has different alternatives in regards to segmenting the marketplace for its new item especially as each of these groups would be requiring the exact same kind of item with particular changes in packaging, quantity or demand. The client is not cost delicate or brand name mindful so launching a low priced dispenser under The Recs Project C name is not an advised alternative.
The Recs Project C is not just a manufacturer of adhesives however enjoys market management in the immediate adhesive market. The business has its own proficient 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 restricted to adhesive production just as The Recs Project C likewise specializes in making adhesive dispensing devices to facilitate the use of its items. This dual production strategy provides The Recs Project C an edge over rivals given that none of the competitors of dispensing devices makes instant adhesives. Furthermore, none of these rivals offers directly to the consumer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of The Recs Project C, it is very important to highlight the company's weak points as well.
Although the business's sales personnel is skilled in training distributors, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It should likewise be kept in mind that the suppliers are revealing unwillingness when it comes to offering equipment that requires maintenance which increases the obstacles of selling devices under a specific brand name.
If we take a look at The Recs Project C line of product in adhesive equipment particularly, the business has products targeted at the high-end of the market. If The Recs Project C sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Provided the fact that Case Study Help is priced lower than The Recs Project C high-end product line, sales cannibalization would certainly be impacting The Recs Project C sales profits if the adhesive equipment is offered under the company's brand name.
We can see sales cannibalization affecting The Recs Project C 27A Pencil Applicator which is priced at $275. There is another possible danger which could decrease The Recs Project C earnings if Case Study Help is introduced under the company's trademark name. The truth that $175000 has actually been spent in promoting SuperBonder recommends that it is not a good time for releasing a dispenser which can highlight the reality 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 marketplace in general, the adhesives market does not show brand name orientation or cost awareness which gives us 2 extra factors for not launching a low priced item under the business's brand name.
The competitive environment of The Recs Project C would be studied through Porter's five 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 particularly as the purchaser has low knowledge about the item. While companies like The Recs Project C have actually handled to train suppliers regarding adhesives, the last consumer depends on suppliers. Roughly 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three players, it could be stated that the supplier delights in a higher bargaining power compared to the buyer. Nevertheless, the fact stays that the supplier does not have much impact over the buyer at this point particularly as the purchaser does disappoint brand acknowledgment or cost level of sensitivity. This suggests that the distributor has the greater power when it concerns the adhesive market while the manufacturer and the buyer do not have a significant control over the real sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market indicates that the market enables ease of entry. Nevertheless, if we look at The Recs Project C in particular, the company has dual abilities in terms of being a producer of instant adhesives and adhesive dispensers. Prospective hazards in equipment giving industry are low which shows the possibility of developing brand awareness in not only instantaneous adhesives but also in dispensing adhesives as none of the market players has actually handled to place itself in dual capabilities.
Danger of Substitutes: The threat of alternatives in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if The Recs Project C introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered numerous reasons for not introducing Case Study Help under The Recs Project C name, we have a suggested marketing mix for Case Study Help provided listed below if The Recs Project C decides to go on with the launch.
Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a variety of reasons. There are presently 89257 facilities in this sector and a high usage of around 58900 lbs. is being used by 36.1 % of the market. This market has an additional development capacity of 10.1% which might be a sufficient specific niche market section for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder. The product would be sold without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wants to select either of the two devices or not.
Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to acquire the item on his own.
The Recs Project C would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for The Recs Project C for launching Case Study Help.
Place: A circulation design where The Recs Project C straight sends the item to the regional distributor and keeps a 10% drop delivery allowance for the supplier would be used by The Recs Project C. Because the sales group is currently engaged in offering immediate adhesives and they do not have know-how in selling dispensers, involving them in the selling process would be pricey especially as each sales call expenses roughly $120. The distributors are currently selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low marketing budget must have been designated 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 costs sustained for production, the suggested marketing plan costing $51816 is suggested for initially presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in car maintenance shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
|Executive Summary||Porters Five Forces Analysis||Pestel Analysis||Financial Analysis|
|Generic Strategy||Vrine Analysis|