The Problem. The Zoëcon Corporation faces the following problems regarding their marketing strategy for their Strike ROACH ENDER product: •
Should the Zoëcon Corporation expand the distribution to a 19 city area where 80 percent of roach control products are sold? •
Should the Zoëcon Corporation focus their attention on the professional pest control market (Pest Control Operators (PCOs))? •
Should the Zoëcon Corporation contact the makers of Raid, d-Con, or Black Flag for the purpose of including the IGR chemical. Recommendation. The Zoëcon Corporation expand the distribution to a 19 city area in the consumer market. The following justification is offered based on the decision factor below. Market Characterization. The premise insecticide market consists of the consumer market and the professional pest control market. The estimated annual sales for insecticides in the consumer market in 1985 were $400 million with a forecasted growth rate of 10% per year through 1990. Therefore annual sales were projected to be $440 million in 1986 (the problem year presented in this case). The southern tier of 14 states accounted for 50% of the annual sales, with May-October being the peak season. This information is very relevant to The Zoëcon Corporation given the fact that the planning meeting was to be held in January, and a decision would need to be made rather quickly if the corporation wanted to enter the market. The three major competitors; Raid, Black Flag, and d-Con Company; captured a combined 67% of the market, with no other company capturing anything larger than 8% market share. Supermarkets boasted 70% of insecticide sales, with drug stores following at 9%. All other retail avenues made up the other 21% of sales. The professional pest control market produced revenues of $2.5 billion in 1985 with a projected annual growth rate of 8%, and forecasted revenues of $2.7 billion in 1986. Fifty-two percent of revenues were the result of general insect...
Please join StudyMode to read the full document