Augat Electronics Incorporation.

-A Circumstance Analysis

1 . Critical Concerns

Canadian marketplace for Satellite tv connectors is expected to grow substantially inside the coming years. Given the existing product quality and the maturity in Useful Services offered by the Cable TV companies, the basis for purchasing decisions seems to be changing. Given the current market share that Augat offers and scenario, it will be of at most importance to enter one or more with the multiple support operators (MSOs) that rule the Canadian market. Augat believes that Snap-N-Seal may be the product that will help Augat reach mainstream status The most important problems in this case as far as Augat goes is usually their decision(s) pertaining to a. Pricing Strategy in Canada – Augat business owners has considerable issues about pricing, positioning Snap-N-Seal. w. Sales and Distribution strategy – decisions regarding what channels to work with, partnerships to pursue, transmission strategies to employ etc . In the event Augat acquired introduced the item in 1988 if the LRC department first conceptualized it – they would have been a market head by now (in 1990). But also in early 1989, an innovative new company, Raychem became a surprising market innovator in the fresh connector organization that was promised to acquire very great insulation real estate for external connectors. And so Raychem gained from a first-mover benefit. Therefore , it had been able to gain clout and its sales and market share soared. By starting Snap-N-Seal canada the company must overcome a lot of problems. Furthermore, those MSOs that are currently using the EZF connector should be convinced to change over to the Snap-N-Seal connection and tools. This would require a considerable Capital Expenditure intended for the MSOs, the value idea for clients (MSOs) must be substantially large for them to exchange the existing Raychem tools/connectors (or any other competitors) for Augat's Snap-N-Seal connector/tool.

2 . Analysis

a. Marketing Mix

At present for the present connectors/tools, Augat seem to be playing an under-dog trying to undercut the competition upon price my spouse and i. Product – connectors, tools used in cable television service technician portfolio ii. Price – currently centered only about under-cutting the competition iii. Place – Canadian cable TV providers (MSOs)

4. Promotion – deals with White-colored Radio

I really believe that by simply tweaking/changing these types of parameters, Augat executives comes up with a compelling marketing mix – especially charges and promotion. One other important aspect of the procedure should include

versus. Positioning – how very well or better could the benefit proposition be proven or perhaps explained to end-users. In other words – how does Augat ‘Frame The Comparison' intended for MSOs to help make the switch.

n. 5C Analysis

i. Consumer Needs – end-users (MSOs) are looking for connectors that would shield the cable television against external electrical noises, reduce corrosion/moisture, necessity to exchange connectors generally and more notably, reduced service call expense ii. Rivals – Raychem (primary competitor in the new high-quality connector market) iii. Company Abilities – high-quality product, great relationship with White A radio station who in return understands an approval process of MSOs, perceived costs advantage in comparison to the primary rival in this market iv. Framework – innovative connector to become sold to Canadian cable MSOs with limitations on consumers' CapEx, importance duty, very high cost inside revenue reps and primarily huge market share with the competition sixth is v. Collaborators – manufacturer (of tools), White Radio

At this time I believe that Augat has to make a whole lot of decisions when it comes to pricing and distribution technique to get the product to be popular.

3. Suggestion

By a charges strategy point of view, the all-natural instinct would be to offer the Snap-N-Seal to be a substantially lower price to MSOs undercutting Raychem's every connector price of CDN $0. 80. By being in a position to demonstrate you’re able to send ability to give higher quality goods at a reduced...


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