1-Disguised sample marketing analysis project

1-Disguised sample marketing analysis project - Page - 1 -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Page - 1 - of 25 Pages Joe Blow XYZ Tool Company-ABC brand 1. LMN Tool Company (LMN) manufactures, sells, and services tools. LMN has been part of the XYZ Tool and Storage Division for the past 25 years. The roots of LMN are found in plumbing related tools, but over the years have extended out into various other hand tools and hand tool accessories. Some examples of the tools LMN manufactures and sells are; tubing and pipe cutters, pipe threading and fabrication tools, drain cleaning tools and machines, diagnostic equipment (line locators, cameras, etc.), and the ABC brand staple, pipe wrenches. In the early 1990’s LMN and XYZ reached an agreement with BBB to become the proprietary brand of one of the world’s largest home improvement warehouse. The agreement stipulates that BBB is the only retailer that can purchase ABC branded product. However, the vast majority of LMN’s business is still done with traditional wholesale customers and supply houses. The goal for BBB was to have an in-house brand with a strong professional reputation, ala PPP at QQQ. By bringing in a strong in-house brand BBB hoped to generate foot traffic in the store and at the same time increase margins. The benefit to XYZ and LMN Tool was increased revenues via licensing agreements, a strong partnership with the growing BBB business, and increased brand awareness outside of the traditional plumbing supply houses where ABC had been sold. It can be an interesting relationship because the goals of ABC do not necessarily align with the goals of BBB. BBB’s desire is to build brand volume, not build brand equity. Currently there are nine companies (four in XYZ and five outside of the XYZ family) that have licensing agreements with LMN. Although these nine companies are run autonomously from LMN, we have the final say-so in what products will don the ABC name brand. The following brand analysis will report only the ABC brand as it relates the parent company, LMN. 2. Porters “Five Forces” Model as it relates to the plumbing equipment industry (see figure below)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Page - 2 - of 25 Pages Threat of New Threat of Entrants Substitutes Threat of New Entrants: Moderate Brand name is at least moderately important to the majority of customers in the plumbing industry. Therefore, brand name recognition is the biggest deterrent for new entrants. Since relatively little technology is used in the plumbing industry the major players have been at the top for 50 plus years. Import buys are becoming a threat to the industry. For the most part this is only happening at the large retailers though, and seems to be only slowly growing in popularity. An example would be BBB sourcing a company in China to produce pipe wrenches under a new brand. These are sold on price point alone, but nevertheless are beginning to affect the industry as a whole.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/12/2010 for the course MAR 5805 taught by Professor Sawyer during the Fall '08 term at University of Florida.

Page1 / 25

1-Disguised sample marketing analysis project - Page - 1 -...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online