Zoecon Case
Zoecon Corporation was founded forty three years ago by Dr. Carl Djerassi. The company mainly focuses on insect population control. The company has over 18 brands and Products. Zoecon developed an insect growth regulator (IGR) brand called Strike ROACH ENDER. IGRs are efficient in eliminating insect populations; they are also less toxic than other household insecticides. IGR affects the reproductive cycle of insects but do not kill them. For IGR to kill insects, it has to be combined with an adulticide. However, adulticide has a short term effect on roaches. Therefore, when all areas are not treated, roaches move away and dwell on untreated areas. So adulticide can reduce the effect of an IGR. To introduce Strike ROACH ENDER to the market, Zoecon perform a test based on past marketing experiences on another similar product. The results was to help the company choose the adequate market, the best form of the product that must be offered to customers, and the appropriate channel of distribution.
How can Zoecon penetrate the roach regulator market with its premium quality product?
1. How would you characterize the Premise Insecticide Market?
The Premise Insecticide Market would be characterized as being growing, demanding. The market is also characterized by high competition among industries in the United States. The market is divided into two segments which are the consumer market and the professional pest control market. Zoecon’s main competitors are S.C. Johnson and Son, Inc., The Boyle-Midway Division of American Home Products, and d-Con Company. Altogether, insecticide producers made about $400 million in sale revenues in 1985 in only the consumer market. Their revenue from sale in the professional pest control market for the same year is evaluated to $2.5 billion. Insecticide sales vary by geography and increase between May and October.
2. How do insect growth regulators "fit" each segment? What was learned from Zoecon 's flea IGR introduction?
How can Zoecon penetrate the roach regulator market with its premium quality product?
1. How would you characterize the Premise Insecticide Market?
The Premise Insecticide Market would be characterized as being growing, demanding. The market is also characterized by high competition among industries in the United States. The market is divided into two segments which are the consumer market and the professional pest control market. Zoecon’s main competitors are S.C. Johnson and Son, Inc., The Boyle-Midway Division of American Home Products, and d-Con Company. Altogether, insecticide producers made about $400 million in sale revenues in 1985 in only the consumer market. Their revenue from sale in the professional pest control market for the same year is evaluated to $2.5 billion. Insecticide sales vary by geography and increase between May and October.
2. How do insect growth regulators "fit" each segment? What was learned from Zoecon 's flea IGR introduction?
References: Kerin, R., & Peterson, R. (2010). Strategic Marketing Problems Cases and Comments. Upper Saddle River, NJ: Prentice hall.