Shoes for Moos

Mktg 506

Case 2

Part I. Problem: Jim Wells, an owner of a clothing store, has an idea for a new product that would be relatively unchallenged in the market: a shoe that fits over cows’ feet to prevent injury and disease in cattle, and treat other conditions, leading to lower death and sickness rates among cattle, and thus more profit for farmers. Although the idea is good and will almost certainly sell, the costs of manufacturing, promoting and distributing it may be too high to move forward. Jim must determine if the project is feasible, and if so, how to most effectively promote and distribute it.

Part II: Situational Analysis

Strengths | * Unique product, technologically advanced * Legal patent and control of the product itself * $25,000 available without having to borrow * Manufacturing company already interested |

Weaknesses | * Product relatively unknown among market * Expensive to promote, distribute and manage * Very little experience with this market |

Opportunities | * New product in the market with few competitors * Serves an almost unanimous need for a large market * Exposure and promotion opportunities at trade conventions |

Threats | * May suffer from early problems with the product itself, since testing is limited. * Farmers may resist the product, sticking to home remedies. * Kauffman controls the means of production |

Jim has a product that is unique and, if marketed successfully, would be considered on the cutting edge of agricultural products. If his product is successful from the outset, it is likely that he will benefit greatly from having a new, exciting product that will generate a lot of “buzz” among farmers. Jim can also gain a patent to the product, giving him exclusive legal rights over the product and ensuring him a long time without any generic version of the same product or any “copycat” products that will steal market share. Jim also has significant funding up front to pay for expenses...