IPG should introduce BAM because there is a customer needs, it can be a complementary product to increase average order value per customer and customer life-time value, BAM fits well with IPG’s capability, and IPG can use existing distributor and drop shipment program to serve the new product need. In addition, IPG can use BAM to increase brand loyalty – you have a Loctite adhesive equipment, when you need adhesive, you use Loctite products.
Primary target for BAM should be current customers with assemble line, and the secondary target are non-customers with assemble line. More specifically, BAM should target plant and production engineers of manufacturing companies.
For product, they should position it as a complementary product to
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when they order SuperBond, add an amount to get BAM) and cross-sale as trial package (buy SuperBond and BAM package get a package price and trial) to non-users. In addition to the that, the company can also focus their product to companies with assemble lines within SIC#75 Motor vehicle services and #76 Appliance repair because these two segments have the highest percentage of user establishments.
IPG should use BAM as the strategic move to encourage brand loyalty of using Loctite adhesives: once you have that equipment, when you need adhesives, you thought of Loctite (similar to HP sells cheap printer but make money from ink; Kindle sell tablets but the market is in the app.) BAM serves different needs(one-ounce bottles) from Gluematic tip applicator (for 3-gram size) so it will not significant cannibalize Gluematic tip sales.
Company and Competitor Analysis
Company’s objective was to become the premiere worldwide marketer of instant adhesives for industrial use by 1985. Its strength (exh.1) includes brand (quality, history, service, knowledge etc) and good relationship with distributors. Its weakness includes inexperience in selling equipment and low sales commission incentive to store equipment. BAM should promote its 10% drop shipment program and increase equipment commission to provide incentives to distributors.
Low capital barriers to entry and expiration of some patents had attracted several
Based on the internal cost study, the costs of Geoffrey Doll and the specialty branded doll #106 changed drastically. There was no change in the costs of the cradle as the Springfield plant is very labor intensive. Below are the calculations for the total cost of each type of doll & the cradle:
As the day-shift supervisor at the ISG Steelton steel plant, you summon the six college students who are working for you this summer, doing whatever you need done (sweeping up, sandblasting the inside of boilers that are down for maintenance, running errands, and so forth). You walk them across the plant to a field where the company stores scrap metal. The area, about the size of a football field, is stacked with organized piles of metal. You explain that everything they see has just been sold. Metal prices, which have been depressed, have finally risen enough that the company can earn a small profit by selling its scrap.
4. Brand erosion is also a key factor to take into account. MMBC is doing things right in the eye of the core consumer and can possibly stumble with its brand equity if they introduce a new product.
WGD is a distributor that provides winter sports appeal and equipment to suppliers like FastFit. Their main business needs are profit, market capital, market share, operational excellence, and improved decision making
The sales composition is split into 37% from grocery stores, 20% from drug stores, 35% from mass merchants and 8% from miscellaneous sources. 70% of their total sales value is derived from 10% of their important customers. The company has foreseen valuable increase in their demand and is about to face some problems due to their traditional distribution network and their competitors. To focus these issues, they have decided to improvise on certain issues by collaboration with suppliers and customers which are discussed below.
Who are MM’s target customers? Are all segments equally attractive to MM? If yes, why? If not, why not? How do the different segments’ needs and expectations evolve over time?
The potential market for this product could represent between $263M and $350M (see Table F). Comparing to CMI’s 2007 net sales of $55M is a big potential market and as Joseph Fernandez said “A successful market introduction could double the sales of this company, as well as compensate for the decline of some existing products”.
A potential problem with this strategy is with a large, non targeted marketing push, 75% of audience the company would be targeting is not purchasing paint. Based on the company’s standard of recovering the costs within a year, if the company doubles its advertising costs, sales should show a significant increase and there is no guarantee of this.
|Little Black Bag (small circular purse) |22” Spinner (suitcase) |Lanyard |Case for iPhone 5 |
Company G 's main focus is to help shoppers by giving an item that enhances their personal satisfaction, as well as an item that is anything but difficult to acquire, utilize and be consolidated into their day by day schedules without bother.
In business, it is essential for management to understand the role and importance of marketing to his or her organization. Management utilizes marketing tools to satisfy the needs of customers, and to gain a better understanding of the product itself. The goal of this paper is to discuss and analyze the distribution practices of Land O Lakes butter. In review of the distribution practices, I will also attempt to show the importance of knowing and understanding the product you are marketing.
HMBR has introduced advanced technology from Japan, Korea and China, and thus have adopted the best production base for their chemical products. They intend to place high emphasis on product quality; as such they regard their reputation as the most important asset when selling in the market. Their mission statement is "persistence, dedication and quality". They are capable of offering
This unit of 3M help manufacturers in improving their business through innovative products & services. Because of a global network structure , 3M is able to fulfil the needs of local as well as multinational customers. Some of the major & well recognized products of 3M of this division are Abrasives, 3M Adhesives & Tapes, 3M™ VHB™ Tapes, 3M™ Purification, Dyneon™ Fluoro polymers.
I do not think Loctite should launch the Bond-O-Matic 2000 (BAM). Loctite manufactures high quality equipment and adhesives and the BAM would dilute this quality. Consumers are willing to pay a premium price for Loctite’s products because they know they are getting a high quality product. The BAM could damage the company’s image because it is priced well below the company’s normal pricing at $175. This could corrode customers’ relationships with all of Loctite’s products, especially their SuperBonder adhesive which would share the Loctite name and a similar brand name. Loctite’s other pieces equipment all have a profit margin around 25% when selling
At the initial launch of the product BAM should focus more on anaerobic market as this market is the one that caters to the industrial users. Only 30% of the users are industrial users in the instant adhesives market and the product features and the cost of the product will suggest to the consumer that BAM is for industrial users and not for the occasional consumers.