Zoecon Case Analysis

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To: David Nasser, Chief Analytics Officer of Zoëcon Corporation From: Consultant # 001708049
Date: January 8, 2012
Subject: Strike Roach Ender Analysis

With roach season rapidly approaching, we are all aware of the importance and speed with which a decision about how to manipulate the insect growth regulator, hydroprene, must be made. Zoëcon’s success with the IGR, methoprene, included in Strike FLEA ENDER and PRECOR, is an encouraging indicator of the results we might find with Strike ROACH ENDER or GENCOR. It is important to note that PRECOR captured an impressive 80% of the professional pest control operators and veterinarian segment. Strike FLEA ENDER gained 18% of the consumer market between 1983 and 1985, but still has not reached its profit objective. With great emphasis on how Zoëcon can effectively allocate technical, financial, and marketing resources for IGR compounds, I have analyzed the situation and recommended a course of action. Viable Alternatives:

A. Introduce Strike ROACH ENDER in a 19 city market segment that encompasses 80% of the roach insecticide market. B. Target the Professional Pest Control market with GENCORE. C. Sell the active ingredient, hydroprene, to other insecticide producers. Each alternative has several associated benefits and risks. After considering these and other factors of the insecticide market, I have concluded that a combination of alternatives A and B would best suit Zoëcon’s situation.

Targeting Consumer Market
Insecticides are an estimated $400 million per year industry for manufacturers, with an anticipated 10% growth rate until 1990. The Test Market conducted for Strike ROACH ENDER revealed a significant gap between anticipated sales and actual results. 854,336 units of Strike ROACH ENDER 10 oz aerosol were needed to break even during the test market1. Of 1.17 million households, Strike ROACH ENDER achieved about 57% awareness. However, only 6% of households actually tried the product, and...
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