Zoecon Corporation Case Analysis

Definition of the Problem

One Zoëcon executive stated, "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 Zoëcon's 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.

Options & Alternatives

1. Roll-out Strike Roach Ender in projected 19 city market at a premium price

Pros:

• A share of projected annual increase of sales in the continually growing

• Strike Roach Ender will hold high profit margins

Cons:

• Continual loss of profit

2. Roll-out Strike Roach Ender into the 19 cities Strike Flea Ender is currently in

Pros:

• Consumer familiarity with Strike product

• Increase in sales and decrease in promotional costs to introduce new product

Cons:

• Consumer confusion due to similar strike name

• Continued costs without achieving projected market share

3. Enter into an agreement with a 3rd party to include GENCOR ingredient

Pros:

• Initial introduction into the market by a competitor will pave the way for Zoecon’s won premium product with fewer costs

• Profits made by selling to a 3rd party

Cons:

• Unable to capture a profitable market share with Zoecon product after competitor enters

Suggestion

ZoEcon has developed a significantly improved product in the roach growth regulator market. It has shown that by promoting the product to an appropriate target market at a...