EXECUTIVE SUMMARY I reco recomme mmend nd a full full launc launch h of the the BondBond-AA-Mat Matic ic 2000 2000 (BA (BAM) M) to facili facilitat tate e IPG’s IPG’s goals goals of increasing year-on-year sales of SuerBonder adhesi!es "y #0$%&' (from sales of #$M to $*M) and attaining a #*' mar+et share amongst core industry grous ,ithin the A mar+et$ .ithin .ithin the mar+et mar+et for instant instant adhesi!es adhesi!es// octite’ octite’s s target target customer customer for SuerBo SuerBonder nder ,ill ,ill increasingly "e a !aried grou of small- to mid-si1ed industrial manufacturers interested in uality control/ cost-e3ecti!eness/ ease of use and e4ciency$ .ith a strong reutation as a leader in the de!eloment and mar+eting of high-erformance adhesi!es and sealants for industrial and consumer alications/ octite is ,ell-situated to lead the gro,th in this ne, mar+e mar+ett "y aggre aggress ssi!e i!ely ly incre increas asing ing e3orts e3orts to educa educate te a ne, grou grou of end-"u end-"uyer yers s of the "ene5ts of its roducts$ Seci5cally/ I roose that octite initiate roduction of BAM 2000 and concentrate on mar+eting it to small and mid-si1e 5rms ,ithin the SI #*-#6 industry grous ,ho use "et,een one and nine ounds of As annually$
CUSTOMER ANALYSIS ANALYSIS In 78 &69%/ SuerBonder adhesi!es catured a #$:' share of the industrial mar+et for A and ;uic+ Set 0 maintained a *$#:' share$ .hile sales in A ,ere gro,ing "y more than 20' annual annually/ ly/ the indust industria riall segmen segmentt gre, gre, e!en e!en faster faster at 2:$2 2:$2'$ '$ .ithi .ithin n the indust industria riall segment/ sales of SuerBonder adhesi!es gre, gre, "y 9$9' from 78 &699 to 78 &69% indicating that SueBonder ,as stealing share from cometitors ,hile attracting ne, users as ,ell$ If octite could sustain such gro,th/ it ,ould ha!e no ro"lem reaching its targeted goal of further increasing sales "y #0$%&' in 78 &696 to $*M$ .hile the industrial segment ,ithin A ,as highly fragmented and 5rm si1e ,as a oor redictor of A demand/ more than *0' of IPG’s current SuerBonder adhesi!e sales came from distri"utors ,ho sold to either small or medium <=Ms$ Small 5rms accounted for **' of total industrial !olume and/ in &: SI grous/ more than &0' of 5rms used instant adhesi!es$ >he Systems ?i!ision de!eloed the BAM 2000 in resonse resonse to di4culties among assem"ly line ,or+ers in disensing A from standard one-ounce and smaller "ottles$ >he BAM 2000
,ould allo, these end-users to recisely disense dots/ dashes/ or lines of adhesi!e uic+ly and ,ithout mess$ .ith only &:' of 5rms using instant adhesi!es/ octite had an oortunity to create rimary demand and e@and the si1e of the mar+et ,hile also increasing its share ,ithin it$ As a leader in a young and gro,ing industry/ octite should educate the mar+et a"out SuerBonder’s many alications and uses$ .ith regards to the BAM 2000 ho,e!er/ octite should not mar+et it as standalone roduct "ut as comlementary to SuerBonder adhesi!es$ By targeting "ased on "ene5ts/ usage and decision rocesses/ octite should concentrate on lant and roduction engineers as ,ell as comany residents at small to medium si1ed 5rms in SI industry grous #*-#6 that use "et,een one and nine ounds of instant adhesi!es annually$ >his segment currently includes %669 5rms ,ith a otential to gro, to &/9:# 5rms "ased on the industry estimates ro!ided in the case$
Grou D urrent sers =sta"lishments D Ee, Potential ser =sta"lishments Total
SI #*-#6 Moderate se
SI #*-#6 Cea!y se
SI #*#6
%669
#&#
#&02#
*9:: 14763
2&%9 5600
&6%%# 50906
Moderate seF 26' of 5rms urchased "et,een one and nine ounds annually Cea!y seF &&' of 5rms urchased more than &0 ounds annually
Segmenting our mar+et in this ,ay allo,s octite to use BAM 2000 to introduce ne, users to instant adhesi!es and to react to the e@ressed interest of current SuerBond users ,ith imro!ed disensing technology$ >he industries ,ithin the selected classi5cation are characteri1ed "y small to medium usage ,ith strong oortunity to con!ert additional nonusers in the future$ >heir roducts are su"Hect to freuent design changes and their roduction rocesses are "etter suited for BAM 2000 than for anything else on the mar+et including the cum"ersome one-ounce "ottles that are rone to clogging and ma+ing a mess on the assem"ly line$ BAM 2000 ro!ides these users ,ith greater recision/ control/ relia"ility and e4ciency ,hile they ,or+$
COMPANY ANALYSIS
&
As a ioneer in the mar+et for instant adhesi!es/ octite is one of three comanies that altogether account for a"out 9*' of the industrial A mar+et in the S$ nli+e other cometitors/ octite is uniue in that it also manufactures automatic adhesi!e disensing euiment to comlement sales of As$ octite’s Systems ?i!ision ,as resonsi"le for more than &*' of IPG’s 78 &69% sales$ It recisely engineered and sold automatic adhesi!e disensing euiment for large 5rms at u to a ##' remium o!er comara"le euiment from cometitors$ >he Systems ?i!ision de!eloed the BAM 2000 and the Gluematic ti to address the needs of a di3erent tye of user the assem"ly line ,or+er in a small to midsi1e lant ,ho found it !ery "urdensome to ,or+ ,ith the one-ounce "ottles that are rone to clogging$ By increasing the recision and relia"ility of euiment a!aila"le to such ,or+ers/ the BAM 2000 layed directly to the Systems ?i!ision’s uniue cometiti!e ad!antage uroseful/ high-uality inno!ati!e designs and,ill dri!e IPG’s gro,th into ne, mar+ets that already comrise 90' of re!enues$ In 78 &69%/ sales of SuerBonder adhesi!es increased "y 2' from 78 &699$ he comany should incenti!i1e saleseole and distri"utors ,ith a matching commission ercentage for euiment as for adhesi!es and o3er distri"utors a matching 2*' margin on sales of the BAM 2000$ Additionally/ as neither 2
saleseole nor distri"utors ha!e re!iously "een ushed to sell euiment/ octite should train "oth arties on using the BAM 2000 for !arious alications as ,ell as on the "ene5ts it o3ers to end-users$ >he Systems ?i!ision’s dou"ts a"out "eing a"le to manufacture large uantities of the BAM 2000 and a"out their a"ility to ser!ice a high !olume of ser!ice reuests from ine@erienced users osed a serious limitation to the launch$ As a mar+et leader/ octite cannot a3ord to Heoardi1e its reutation for uality and ser!ice ,ith a ne, launch of a comlementary roduct$ >he comany should control its initial uantity of roduction to ensure that this does not haen or loo+ for ,ays to outsource roduction of the BAM 2000$ 7inancially/ octite is ,ell situated to launch BAM 2000 as an augmented roduct to comlement and dri!e sales of SuerBonder adhesi!es$ .ith 2*' of octite’s sales in 78 &69% and a AGJ of 2*'/ IPG’s sales should gro, from #2M in 78 &69% to 0M in 78 &696 e!en ,ithout launching the BAM 2000$ Additionally/ the u-front JK? and in!estment costs of %/000 reresented &$*' of SuerBonder sales from 78 &69%$ .ithout accounting for !arious mar+eting scenarios/ at a rice of 200 for distri"utors/ octite ,ould "rea+e!en ,ith 22# units of the lo,-ressure model or #&0 units of the high-ressure model (a #$:' mar+et shareF **#L&9:#)$ .ith the most aggressi!e romotion strategies including "oth direct mail and follo,ing the roosed media schedule/ at a rice to distri"utors of 200/ octite ,ould "rea+e!en ,ith 6# high-ressure models and :9# lo,-ressure models (a &0$%' mar+et share ofF &:09L&9:#)$
COMPETITOR ANALYSIS >he BAM 2000 ,ould "e entering the mar+et at a rice oint far "elo, the automatic disensers made "y cometitors (,hich sell for %#) and "y IPG’s System ?i!ision (92* and &200)$ As a manual disenser it ,ill not li+ely steal share from cometitors ,ho manufacture automatic disensers catered at larger 5rms$ Since current cometitors ha!e limited resources and are highly fragmented in di3erent regional mar+ets or seci5c industries/ there #
is little direct threat osed "y them$ Co,e!er/ if sales of BAM 2000 increase !ery uic+ly or the roduct is highly ro5ta"le/ there are fe, "arriers to entry rohi"iting ne, cometitors from entering the mar+et for mechanical adhesi!e disensers$ 7urthermore/ a successful launch of BAM 2000 "y octite may encourage #M/ =astman/ and Perma"ond to "egin de!eloing their o,n disensers for their line of instant adhesi!es as ,ell$ As a 5rst-mo!er/ octite has esta"lished its cometiti!e ad!antage in A and has "een gro,ing among industrial grous "y stealing share from cometitors$ .hile its mar+eting camaign in 78 &69% clearly aid o3/ it must continue mar+eting to educate otential users a"out its roducts and con!erting more users to BAM 2000 there"y raising s,itching costs for cometitors$ anni"ali1ation ,ith IPG’s Systems ?ecision’s alicators is not a concern "ecause they cater to !ery di3erent usage le!els$ It ,ould not "e ragmatic for a large 5rm using more than nineten ounds of SuerBonder to s,itch to the BAM 2000$
PRODUCT, PRICIN AND PROMOTION STRATEY BAM 2000 comlements the SuerBonder line of instant adhesi!es$ SIs #*-#6 are !ery heterogeneous ,ith regards to their uses and alications for instant adhesi!es$ Sales of BAM 2000 should "e accomanied ,ith the Gluematic ti/ the ari dro needle and alicator$ >hough BAM 2000 and the Gluematic Pen use the same alicator/ the !astly di3erent si1e of adhesi!e that accomanies each negates the ossi"ility of ri!alry "et,een them$ As adotion of BAM 2000 increases/ sales of one-ounce "ottles ,ill decline and may at some oint need to "e eliminated altogether ushing demand to either the one-ound containers or the threegram Gluematic Pen$ I recommend introducing "oth the high- and lo,-ressure models of the BAM 2000 at 200 for distri"utors and 2*0 for the end-user$ Pricing the BAM 2000 this ,ay eliminates the need to get sales cleared "y the urchasing deartment and allo,s the maHority of urchasing decisions to "e made directly "y roduction and lant engineers and o,ners of small 5rms$ >he 200 rice for distri"utors incenti!i1es them to stoc+ euiment "y raising their margin on euiment sales to 2*' (eui!alent to their margin on adhesi!es) resenting a greater
incenti!e to mar+et these roducts to their customers$ Additionally/ the suggested ricing scheme allo,s octite to ursue a rice s+imming strategyin line ,ith the remium it charges for its other roducts$ I am not certain a"out the target customer’s rice sensiti!ity$ >hough the mar+et sur!ey indicated that rice ,as not !ery imortant in instant adhesi!e urchase decisions/ I ,onder ,hether rice ,ill "ecome more imortant as 5rms start sending a lot more money on such urchases/ esecially as their orders gro, from one-ounce "ottles to one-ound containers ,ith a disenser$ At this early stage in the mar+et/ many otential users ha!e little +no,ledge a"out instant adhesi!es and their caa"ilities$ In order to continue gro,ing/ octite must emloy a ull strategy and continue its highly successful ad!ertising camaign to raise consumer a,areness/ change their ercetions and references/ and educate non-users a"out the SuerBondline of adhesi!es$ >o encourage sales and adotion of BAM 2000/ octite should follo, through ,ith the roosed media schedule in conHunction ,ith SuerBond ad!ertising and incororate the direct-mail rogram to reach the full list of &/90 otential users of instant adhesi!es in SIs #*-#6 ,ith moderate use ("et,een one and ten ounds)$ octite should insert "rochures in all SuerBond ac+ages and highlight anti-clogging features to target current users$ .hen sending a ac+age through the direct-mail rogram/ I ,ould suggest that the "rochure descri"ing BAM 2000 focus on "ene5ts it ro!ides ,ith user testimonials$ 7inally/ ,hen follo,ing the roosed media schedule/ octite should not highlight anti-clogging features as the goal here is to target ne, users as ,ell as nonusers$
DISTRI!UTION STRATEY At this early stage/ I ,ould not recommend any changes to the current distri"ution strategy and ,ould re!isit in the future if cometition increases or ,hen BAM "ecomes a ,ellesta"lished roduct$ octite has strong relationshis ,ith distri"utors and these distri"utors already manage o!er *0' of current sales of SuerBond adhesi!es$ By incenti!i1ing
*
distri"utors to stoc+ euiment/ the goal is to ha!e them sell BAM 2000 as a comlement to all SuerBond adhesi!es$
=@hi"it &F Mar+et Analysis "y SI Industry Grou
SIC Co"#
N%)*#' o+ E&ta*l&-) #$t&
I$"%&t'(
I$&ta$t A"-#&. #& U&a/# l*&
2 o+ U&#' E&ta*l&-) #$t&
A""to$al 2 o+ Pot#$tal U&#' E&ta*l&-) #$t&
*$00'
9$:0'
&$#'
:$0'
20-2
7ood/ >e@tile/ ,ood roducts
62%9
2:-29
Paer and rinting
:2%92
2* 2%-26
7urniture hemicals/ etroleum roducts
&#%9* 20&:9
6*00 &*%*0
&2' &2$*0'
20$20' :$00'
##-#*
Metal roducts/ machinery
&02*2#
%200
&$90'
9$%0'
#:
&6:&0
2000
2:$90'
&%$#0'
#%
=lectrical and electronic euiment Scienti5c instruments/ hoto euiment/ ,atches
&0&#
&0:*0
29$:0'
20$&0'
#0-#&
Ju""er/ latstic/ leather roducts
&:##2
&*$#0'
6$90'
#2
Stone/ clay/ glass roducts
&6&60
&*$&0'
#$%0'
#9
>ransortation euiment
&&99&
&9$#0'
&*$20'
2#60
2$:0'
&%$90'
#6 0-6 90/ 92/ 9#
Ne,elry/ toys/ sorting goods >ransortation/ communications/ utilities Personal/ tourist/ "usiness ser!ices
900
29#*0
&#*:*9
&:000
&&$%0'
9$&0'
2%22#6
%*0
%$#0'
:$20'
9*
Motor !ehicle ser!ices
%62*9
*%600
#:$&0'
&0$&0'
9:
Aliance reair
%*%#%
&#*00
#0$%0'
$&0'
9%-%0
=ntertainment and health ser!ices
200&
6600
&0$&'
*$:0'
U&a/# #' E&ta*l&-) #$t l*& 0$#9&:0 9 0$#9&:0 9 *$90*90*90 : :$2%966#% #$&6%220: 2 %$02&*%6*# * #$%0262 2$0*##%6 # 2$0*##%6 # 2$0*##%6 # 2$0*##%6 # 0$666*26% : 0$#:09&2%# 2 &$%296*:26 2 0$*&0:2::# 2 2$###962
=@hi"it 2F Brea+e!en Analysis for the o,-Pressure and Cigh-Pressure BAM 2000 !'#a#.#$ o$ Lo P'#&&%'# !AM aria"le ost Assem"ly ost er unit Total Va'a*l# Co&t JK? ost BAM Ad!ertising ost ?irect Mail Ad!ertising Total :#" Co&t
P'# to E$" U&#' 9* &9$* 985 2000 2*60% 229$* 735585
P'# to D&t'*%to' 9* &9$* 985 2000 2*60% 229$* 735585
P'# to D&t'*%to' 9* &9$* 985 2000 2*60% 229$* 735585
P'# to D&t'*%to' 9* &9$* 985 2000 2*60% 229$* 735585
:
Price B= B= Share
!'#a#.#$ o$ ;/P'#&&%'# !AM aria"le ost Assem"ly ost er unit Total Va'a*l# Co&t JK? ost BAM Ad!ertising ost ?irect Mail Ad!ertising Total :#" Co&t Price B= B= Share
2*0 *6$ #'
P'# to E$" U&#' &0* &9$* 185 2000 2*60% 229$* 735585 2*0 *:9$6&&9: '
200 :9#$09 *'
&%9$* 9:&$: *'
P'# to D&t'*%to'
P'# to D&t'*%to'
&0* &9$* 185 2000 2*60% 229$* 735585 200 6##$:&6#*% :'
&0* &9$* 185 2000 2*60% 229$* 735585 &%9$* &&&#$&:&*#% %'
&9* %99$0 :'
P'# to D&t'*%to' &0* &9$* 185 2000 2*60% 229$* 735585 &9* %$2 6'
Assuming that direct mail and BAM ad!ertising cost are slit e!enly "et,een the high ressure and lo, ressure systems
9
=@hi"it #F Ad!ertisement Bond-A-Matic
%
a$
S>
Mar+et share of adhesi!es ,as held high "y <>I>=/ !ersus its t,o maHor cometitors =AS>MAE OI>=’s SP=JB
=S/ and ;uic+ Set 0 to maintain a mar+et share of *$#:'$ It ,as seen that the mar+et trends ,ere mo!ing in fa!or of <>I>= as sales from 8AE=S ,ere gro,ing "y 20' annually and that of the industrial segment at a much faster ace "y 2:$'$ Moreo!er/ inter-industry sales of <>I>=’s SP=JBhis ,as a clear indication that <>I>=’s SP=JBI>= sustained this gro,th/ then it ,ould encounter no ro"lem in caturing the target mar+et that it intends to cature$ >his ,ould hel <>I>= to increase its sales "y #0$%&' in 7iscal 8ear &696 to $*M as mentioned in <>I>=’s case$ >he Industrial segment for 8AE=S is a highly fragmented segment in the Adhesi!e Industry$ >he 5rm si1e ,as found to "e a oor redictor of 8AE=S’ demand in the target mar+et and at resent/ <>I>=’s SP=JBhese sales ,ere carried out "y 2%* trusted distri"utors of <>I>= out of the total &0/000 distri"utors nation,ide$ >hese 2%* distri"utors ,ere either small or medium he de!eloment of BI ,as a result of the ro"lems faced "y most of the assem"ly line ,or+ers/ ,ho used to use the earlier !ersion of adhesi!e$ >he di4culties faced ,ere disensing-o3 the 8AE=S from the roosed one-ounce and smaller "ottles standard$ BI ,as a solution to this ro"lem/ and it heled end-users to e4ciently disense-o3/ dots/ dashes/ or lines of adhesi!e from a relati!ely easy method ,ithout creating mess$ >o sei1e this oortunity/ <>I>= lanned manufacturing BI/ ,ith an aim to cater the needs of the target mar+et and also to e@and its mar+et share further$ .ith a young aggressi!e layer in the mar+et/ <>I>= initiated e3orts to educate end-users of the otential uses and many alications of <>I>=’s SP=JBI ,as riced lo,/ it might distort <>I>=’s uality image in the mind of consumer and therefore it is ad!isa"le that <>I>=’s BAM 2000 must "e introduced as a comliment to <>I>=’s SP=JBI>= needed to concentrate much on lant and roduction engineers as ,ell/ other comany’s maHor directors from the Standard Industrial lassi5cation Grous that lie in "et,een #*-#6/ that use at least 6
nine ounds of instant adhesi!es annually$ According to the current industry estimates/ this segment currently includes %/669 5rms that ,ill gro, at a good !elocity and reach u to &/9:# 5rms$ Mar+et segmentation/ ,ould hel <>I>= to use BAM 2000 in a ,ay to introduce ne, users to instant adhesi!es and "y comlementing it ,ith SP=JBhis ,ould hel in gaining accetance "y other non-users too in the near future$
"$
<>I>= stands as a ioneer in the instant adhesi!e mar+et at resent and stands num"er one amongst its three cometitors$ <>I>= accounts for 9$*' of the share in the 8AE=S industry$ It also manufactures automatic adhesi!e disensing euiment to ele!ate sales of 8AE=S in the mar+et$ Moreo!er/ more than &*' sales of IPG (industry roducts grou) in the 5scal year &69% ,ere contri"uted "y <>I>=$ 7urther to retain and esta"lish a strong image in the mind of consumer/ articularly large 5rms/ it sold its automatic euiment at ##' remium$ >he introduction of BI 2000 and the G=MA>I >IP to cater the di4culties of clogging faced "y e@erts ,as a cometiti!e landscae achie!ed$ It increased recision and relia"ility in their ,or+ and heled them go "eyond standard one ounce usage$ It ro!ed to "e uroseful/ high uality roduct ,ith a no!el design$ In addition to this/ the BI 2000 heled IPG to "oost its gro,th in ne, mar+ets ,ith a re!enue gro,th rate of 90'$ Jelationshi ,ith the distri"utor is <>I>=’s maHor strength$ <>I>=’s strong relationshi ,ith its distri"utors heled it to command remium rice for its roducts$ 7urther/ this relationshi moti!ated the distri"utor to carry all of the <>I>=’s adhesi!e roducts$ .hat <>I>= no, needs to do is/ so it needs to strengthen its relationshi further to o!ercome its distri"utor’s reluctance to stoc+ roducts that need maintenance$$
&0
Lott# Co'8< I$"%&t'al P'o"%t& 'o% E:#%t.# S%))a'(< >he case is "ased on the launch of ne, roduct for ,hich a detailed mar+et analysis along ,ith mar+et analysis has "een done$ >he case includes all the comonents that are reuired in the mar+eting mi@$ octite ororation needs to 5nd out roer mar+eting strategies to ma+e lanning for design in order to disense the adhesi!es and euiment’s used in the industry$ >he comany is in!ol!ed in the manufacturing of these euiment’s and adhesi!es$ >he analysis done in the case suggested that the comany needs to ma+e a mar+eting lan for a roduct +no,n as Bond-AMatic 2000 (Bond-A-Matic)$ >he mar+eting lan for Bond-A-Matic ,ill "e similar to the one ,hich ,as made in &69%/ ho,e!er it includes an increase in sales "y$* million along ,ith at least #*' share in the mar+et$ >he comany has lanned to achie!e this #*' mar+et share through increased "rand recognition and a,areness$ In addition to that/ the comany needs to educate the indi!iduals ,ho are not using A adhesi!es a"out the "ene5ts of the roduct$ >he mar+eting deartment of the comany ,ill do this ,ith the hel of di3erent media channels$
I$t'o"%to$< octite ororation is a glo"al leading manufacturing comany of sealants/ adhesi!es and relati!e roducts$ >he comany ,as founded in the year &6*: and located in nited States ,ith its headuarter in Ee,ington/ onnecticut$ >he comany erformed e@tremely ,ell in &6%0sthus it achie!ed tremendous gro,th in the adhesi!e mar+et$ As of no,/ the comany is located in more than ## countries other than nited States$ MaHority source of the comany’s sales is outside $S$
Co)a$( A$al(&& >he o"Hecti!e of the comany is to clear to e!ery sta+eholder ,ho stated to "ecome a leader of the adhesi!e industry$ >he comany is a leader in the mar+et of sealants and adhesi!e material$ In order to achie!e the consistency of "eing a mar+et leader/ octite or$ focuses on the ro!ision of high uality of roducts to its customers along ,ith high rice strategy in order to co!er the cost$ >he structure of the comany is di!ided into three ro5t centers ,ith minimal internal ri!alry$ >he Industrial Products Grou enHoys most of the comany’s sales from the ne,er and ad!anced technologies that are A and Anaero"ic$ >hese t,o roducts are free from any ro"lems in comarison ,ith the other technologies in the adhesi!e mar+et$ Moreo!er/ the comany has registered a atent against Anaero"ic and enHoys %*' of the share in the mar+et$ >he customers for Anaero"ic are limited as they ha!e not acceted the aarent ad!antages of the roduct$ he comany has successfully adHusted and di3erentiated the ricing of yanoacrylates roducts ,ith the aid of mar+et enetration to increase &&
the !olume of customers$ >he comany is also using mar+et s+imming to attract and retain the loyal customers of ;uic+set0 ,ho are not so rice sensiti!e$ In addition to that/ the comany is di3erentiating itself from its cometitors "y manufacturing automatic adhesi!e disensing euiment so as to harmoni1e the sales of yanoacrylates$ octite or$’s system is engaged in the engineering and selling of automatic adhesi!e disensing euiment for giant 5rms and is resonsi"le for more than &*' of the sales$
C%&to)#' A$al(&&< >he Bond-A-Matic ought to "e ositioned not as an irrele!ant roduct yet as a 5tting item to Suer Bond adhesi!es$ Suer Bonder adhesi!es ,ill "e utili1ed ,ith Bond-AMatic to stress lin+age this ,ill "e done ,hen romoting the osition of Bond-A-Matic as an e@tra tool for the Suer Bonder glues/ not the other ,ay around$ >he center of the arrangement is to utili1e the Bond-A-Matic as a techniue for acuainting ne, clients ,ith instant adhesi!es and to resond to the communicated enthusiasm of current A clients ,ith enhanced techniues used in disensing$ >he intended target grous for the lan range from small to fair-si1ed organi1ations that are non-clients and organi1ations that are A clients/ ,hich ,ill ro5t from utili1ing the Bond-AMaticthe commercial enterrises inside SI #: through #6$ >he "usinesses in this characteri1ation e@tent are descri"ed "y litter utili1ation their items are lia"le to incessant changes in the design and henceforth are "est suited for Bond-A-Matic that ,or+s ,ith any octite or$’s adhesi!e$ In addition/ the Systems ?i!isionQs tools indulge the need of "igger 5rms that canQt "e met "y Bond-A-Matic$ Cence/ octite or$ ,ill "e concentrating on its client "y focusing their needs ,ith the intention to e@and the "uy !olume and +ee a,ay from the roduct o3ering canni"ali1ation$ 7urther in light of the ricing strategy/ ,hich is discussed later on in the case one can e!ade the design engineers and acuiring sta3 from getting included in the urchasing choice$ Plant and roduction designers can settle on the "uy choice a"out the disensing euiment autonomously u to the e@ense of 2*0 ,hich ma+es them their intended target grou$ >his ,ill aid in +eeing u the contrasts in choice ma+ing techniues ,ith di3erent distri"utors$ 7actors li+e unmista+a"le contrasts "et,een Bond-A-Matic and di3erent disensers in !alue/ adhesi!es to "e utili1ed ,ith and accuracy ma+es it aealing for di!erse clients of octite or$ that circles in ,ith its strategic destination of increasing the "ase of ne, clients$ More than :0' of 5rms utili1ing more than three grams and not more than nine ounds of instant glues are the target clients of Bond-A-Matic$
Co$t#$"#' A$al(&&< >he Bond-A-Matic 2000 ,ill "e entering the "usiness at a !alue oint far "elo, the rogrammed disensers made "y contenders that o3er them for %# and "y IPGQs System ?i!ision of 92*and &200$ As a manual disenser/ it ,ill not "e li+ely to ta+e o3er from contenders ,ho ma+e rogrammed disensers coo+ed at "igger 5rms$ Since current contenders ha!e constrained assets and are highly di!ided in di!erse territorial mar+ets or articular "usinesses hence there is minimal immediate danger &2
ostured "y them$
P'o"%t St'at#/(< Gluematic >i ,ill "e utili1ed as art of Bond-A-Matic for hard surfaces$ ari ?ro needle in mi@ of ari ?ro instrument ,ill "e utili1ed for free falling dros and delicate surfaces$ In this manner/ to ful5ll the recommended clients that are SIS #*-#6/ ,ho are e@tremely heterogeneous concerning their commercial enterrises the organi1ation ,ill gi!e them "oth the heads$ octite or$ causes lo, cost for gi!ing "oth heads$ Bond-A-Matic ,as roduced as er the needs of assem"ly secialists and conseuently imarts no interior cometition to Gluematic Pen "ecause of the di!erse si1e$ Bond-A-Matic not Hust inherits all the aces of Gluematic Pen "ut it also tac+les the issue of o"structing and lum"ering "ottles of one o1 Hugs/ refers from =@hi"it # of the case$ .ith the e3ecti!e c ommencement ofBond-A-Matic/ Hust &*0 g containers ,ill "e utili1ed for clients reuiring more than three grams of adhesi!e e!ery year/ hence declining the o3ers of one o1$ So litter "ottles among the *&' oulace ,ho communicated enthusiasm to,ards inno!ation related to disensi ng$ >hus Gluematic Pen ,ill "e re!eled in "y the family unit audiences ,ith less than ound utili1ation$ It is rescri"ed resenting Bond-A-Matic ,ith its Cigh Pressure model along ,ith o, Pressure model$ >he roosed deals cost for Bond-A-Matic ,ith "oth models is the same$ o, Pressure models are less e@ensi!e ,hich "rings a"out higher edges$ In addition to that/ o, Pressure models might "e utili1ed ,ith t,o searately four of 5!e Suer Bonder adhesi!es as ,ell$ Adhesi!es 6* and 2* must "e utili1ed ,ith o, Pressure model and contri"ute to half of e@isting sales$ Adhesi!e &: utili1ed for soradic and ermea"le surfaces can "e utili1ed ,ith Hust a Cigh Pressure model$ Along these lines/ the choices inside the item ,ill "e a Ra,less 5t for uniue target client’s needs$
P'$/ St'at#/(
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Strategy used "y octite or$Qs calls for high costs and not for lo,-!alue mar+et in5ltration$ In this ,ay/ it is suggested to e@and the cost of the Bond-A-Matic alongside one Gluematic >i in addition to ari ?ro Eeedle and a ari ?ro Alicator to 2*0 for end client and &6* for a ,holesaler$ >he cost of the Bond-A-Matic needs to osition the item as successful and dura"le ,hile staying under the ,idely acceted 2*0 otional acuiring ca$ .ith this rice/ the lant and roduction secialists as ,ell as the target clients can choose freely a"out the urchase of euiment including 5ll$ 7actors li+e higher costs of the comany/ engineers and "uying sta3 gets included lea!ing no contrasts in decision-ma+ing rocedure ,ith di3erent disensers$ onseuently/ !alue ,ill "e e@anded not "e higher than 2*0 for consicuous distinction$ >his does reresent a limit to e@and cost for future and go a"out as a hindrance for increment in cost$ Co,e!er/ the organi1ation can gi!e additional edges to ,holesalers o!er adhesi!es that can gi!e them the imetus to stoc+ these sulies o!er their roensity of +eeing a,ay from gear stoc+u ,ith o"lige ser!ice$ octite or$ ,ill in e@change areciate a margin from the end clients along ,ith distri"utors as ,ell$
P'o)oto$ St'at#/(< It is roosed that the standard mail rogram num"er 2 "e actuali1ed concentrating on the references of the Bond-A-Matic and the Gluematic disenser ti and in addition con!eying the ro5ts of adhesi!es that are instant$ ?esite the fact that rint u"lici1i ng is so ,ide/ it is not ossi"le to e3ecti!ely mar+et the Bond-A-Matic indeendently hence it is rescri"ed that the roosed romoting schedule for the Suer Bond items "e modi5ed to incororate an altered rint ad that incororates a reference to BondA-Matic$ oyalty of "rand ,ill "e reinforced once the end client starts to utili1e the Bond-A-Matic in conHunction ,ith Suer Bond adhesi!es$ Additionally/ it is rescri"ed to roceed ,ith the utili1ation of the octite or’s logo on the Bond-A-Matic to fortify "rand ersonality$ >he Bond-A-Matic and the Gluematic allocator ti ,ill "e situated as a correlati!e item ,ithout ,ea+ening the Suer Bond message$ In this ,ay/ the e@enses of the rint romotion ,ill "e charged to the Suer Bonder ad!ertising lan$ octite or$Qs merchants/ accommodating :2' of aggregate "uys ,ill accet a data arcel that ,ill clarify the ro5ts and e!aluate time ta"les$ =m"ed leaRets in Suer Bonder "undles highlighting anti-clogging u gimmic+ here$
Pla# D&t'*%to$ St'at#/(< It is not suggested to e@and the system of distri"ution$ >his alternati!e can "e +et for future ,hen ri!alry "uilds and Bond-A-Matic turn into an entrenched roduct$ octite or$ is +no,n for its near"y associations ,ith merchants$ It is rescri"ed utili1ing the current ,hole-sellers and retailers/ on account of their s+ill to deal ,ith the resent in e@cess of half Suer Bonder adhesi!e deals$ >his methodology lies in sync ,ith Bond-A-MaticQs situating ,hich is not standalone ho,e!er/ it is integral to &
Suer Bonder$ Eonetheless/ since the essential client of the comany is modern/ it ought to underscore on immediate o3ering to the client or retail store "y e@ansion$
STRENT; Adhesi!e mar+et for long time mar+et +no,ledge and selling e@erience strong gro,th in sales good image K reutation focus on high uality clearly stated goals and o"Hecti!es organi1ed distri"ution system strong mar+et orientation
=EA>NESS high commission charged "y sales eole ,ith no incenti!e ser!e small mar+et only high !aria"le cost
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