Zoecon Case Study Essay example

1321 Words Jun 20th, 2015 6 Pages
Conner Moreno csm0136 Individual Case Summary for
Zoëcon Corporation: Insect Growth Regulators

MKTG 5150.080
Marketing Management
Spring 2015

Attached is my summary for the Zoëcon Corporation case. Included are four tables which provide supporting data for my recommendations.
The Problem(s). Should Zoecon commercialize the Strike Roach Ender brand by expanding distribution to the 19 city market area in the Southeast United States?

The Recommendation(s). Zoecon Corporation should not expand their sales of Strike Roach Ender into the 19 city market in the Southeast United States. Justification for the recommendation stated is based on four decision factors from the case.

Profitability. From the test market analysis, the
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The last alternative for estimating fixed expenses brings the total to $4,064,000.00, which will generate a small Net Profit of $1,085,320.00. Although expanding Strike Roach Ender to 19 cities can be profitable, the potential losses Zoecon could take from an effective advertising and promotion strategy for this venture far exceed the potential rewards. The $4,064,000.00 would not be sufficient enough advertising to gain a significant market share in all 19 cities over a substantial amount of time. The general “rule of thumb” approach is more accurately what would be spent for the new Strike Roach Ender product, in which case a major loss would be taken, making this venture not financially feasible.
Price and Market Competition. – Strike Roach Ender product has a retail price of $4.49 for aerosols and $3.99 for foggers which is 50-75% higher than competitor roach insecticides. Although the price may be justified by the product’s unique compound and long-lasting effect. The insecticides for the consumer market are geared more toward easy-to-use, do-it-yourself containers. Not focusing on driving down the costs can make it even harder to gain significant market share against the competition. The Raid brand captured 45% of the consumer market, Boyle-Midway Division of American Home Products with 12%, and d-Con Company holding 10% with no other market share greater than 8% making it very tough to gain significant market share in the consumer market.
Market…

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