Zoecon

Zoecon Corporation Introduction

Changes in top management at Zoecon Corporation brought about a shift in corporate objectives. The new objectives emphasized a focus on high financial-return products and businesses. In January 1986, Zoecon executives called for a meeting to determine the fate of their Strike brand insect growth regular (IGR) called Strike ROACH ENDER. This product had been tested in the consumer market in four cities (Charleston, SC; Beaumont, TX; Charlotte, NC; and New Orleans, LA) from May through October of 1985. Now that the test-marketing venture was complete, Zoecon executives were faced with determining the most profitable future marketing strategy for their IGR products.

 Definition of the Problem

One Zoecon executive stated that the decision is basically how we can best allocate our technical, financial, and marketing resources for our IGR Compounds. Some suggestions had already been discussed informally among the executives, including, consumer market expansion with the ROACH ENDER product, pest control operator (PCO) market concentration with the ROACH ENDER, or IGR compound sales to existing firms in the consumer insecticide market. Some of these alternatives were mutually exclusive, and others were not. So, it was up to Zoecon executives to use the test market data analysis, along with their knowledge and experience in the insecticide industry to decide which of the proposed alternatives will be most profitable and most appropriate according to the newly developed corporate strategy.

Summary of the Major Alternatives

Zoecon executives are faced with the alternatives of marketing their Strike ROACH ENDER product to the consumer market or concentrating their efforts on the professional pest control market. If Zoecon cannot make a sufficient profit then marketing their IGR compounds through other firms may be the next opportunity.

Zoecon has already introduced the Strike FLEA ENDER to the consumer market in 19 states, where the...