Zoecon Case

The company started off producing 20,000 units of mountain bikes. We did not change the production quantity. Last year our forecast sales were 24,000 when we only sold 19,866; therefore we thought it would be best to leave production at 20,000 bikes. Having excess inventory, we concluded that 20,000 units should be enough considering our quality has not changed and our advertising will not increase the sales dramatically. Although we had the choice to produce as much as 30,000 units, we felt as though we did not have sufficient money to increase production. We were interested in allocating the money towards marketing as opposed to production. We realized that without awareness, no matter how many units we make, sales would be inefficient.

3. Increase in expenses for marketing efforts and expanded distribution even if you do not introduce a new product.

Increased marketing budget costs to launch the new product and provide incentives to “Maintenance users

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

During this Period We decreased the price of our product from$ 5.45 to$ 5.29 to be more competitive in compare to our rivals and increased the sales force in chain drugstores and Grocery stores since they were receiving more sales than the other channels. As a result we increased our sales $29 million.

Attached is my summary for the Zoëcon Corporation case. Included are four tables which provide supporting data for my recommendations.

Northwest Coalition for Alternatives to Pesticides (NCAP) (Winter 1992). Malathion Insecticide Factsheet. Journal of Pesticide Reform 12(4). Retrieved May 4, 2008, from

Probably increase marketing, promotional and expenses related to discounts in the subsequent year due to “Premier Vision” plan.

1. Should ServiSoft cave in to the distributors, or go around them and go direct using independent reps?

The problem of the Zoecon Coporation at this moment is how they can best allocate their technical, financial, and marketing resources for their IGR compounds. Some executives have suggested an informal consumer market expansion with their Roach Ender product to 19 cities, concentrate on the pest control operator (PCO) market with the Roach Ender, or sell its IGR compound to firms actively engaged in reaching the consumer market insecticide market. Some of these suggestions/alternatives are mutually exclusive and some are not, therefore Zoecon Executives should use the test market data analysis, in addition to their experience and knowledge in the insecticide industry to

• Expand the limited advertising program for current niche market products to retain and gain market share.

section). This shows an increase in product purchases and an increase in market share (an increase

To check mortality trends of mealybugs regarding to the concentration and time of exposure of insecticides.

EXECUTIVE SUMMARY COMPANY ORIENTATION COMPANY PORTFOLIO ISSUES TREATED PROMOTION OR NO PROMOTION? CANNIBALIZATION BRAND EQUITY EROSION FORWARD BUYING PASS-THROUGH STOCKPILING ENGEL’S LAW GENERAL REASONS TO CONDUCT A SALES PROMOTION PROMOTION FOR WHICH ITEM FINANCIAL ANALYSIS THANK YOU NOTE

The best form of distribution of the product will be intensive distribution. Intensive distribution is where the product will be made available at sporting good stores, outlets and department stores (Pitts & Stotlar, 2013, p.291). Being sold in many different stores will allow the product