Zoecon Case

Zoëcon executives called a meeting to determine the fate of their Strike brand insectgrowth regular (IGR) called Strike ROACH ENDER. This product had been tested in theconsumer market in four cities (Charleston, SC; Beaumont, TX; Charlotte, NC; and NewOrleans, LA) from May through October of 1985. Changes in top management atZoëcon Corporation brought about a shift in corporate objectives. the proposedalternatives will be most profitable and most appropriate according to the newlydeveloped corporate strategy.

New objectives:

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Emphasized a focus on high financial-return products and businesses. Now that the testmarketing venture was complete, Zoëcon executives were faced with determining themost profitable future marketing strategy for their IGR products.

Problem

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how we can best allocate our technical, financial, and marketing resources for our IGRCompounds, and for which market would Zoecon be served in.

Some suggestions including,

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consumer market expansion with the ROACH ENDER product, pest control operator(PCO) market concentration with the ROACH ENDER

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IGR compound sales to existing firms in the consumer insecticide market.

Major Alternatives

The alternatives of:

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Marketing their Strike ROACH ENDER product to the consumer market or concentratingtheir efforts on the professional pest control market.

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If they cannot make a sufficient profit then marketing their IGR compounds throughother firms may be the next opportunity.Key pointsAlready introduced the Strike FLEA ENDER to the consumer market in 19 states, wherethe product gained an 18% market share by 1985, but

has not yet reached its profitobjectives

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(These insecticides were also successfully sold to pest control operators throughdistributors, and by 1985 had captured 80% of all flea product sales made through these outlets.)

 Zoëcon reached an agreement with SC Johnson and Son to include PRECOR (the fleacontrol compound in Strike FLEA ENDER) in its Raid...