Thursday, September 19, 2019
Zoecon Corporation - Strike Roach Ender :: Case Study, solution
To:à à à à à à à à à à Executive, Zoecon Corporation From: à à à à à à à à à à Date:à à à à à à à à à à Thursday, February 17, 2005 Subject:à à à à à Strike Roach Ender Introduction Projected Industry Consumersà à à à à à à à à à à à à à à à à à à à à à à à à à à à à à Professional Projected Growth Rate of 10% annuallyà à à à à à à à à à Projected growth rate of 8% annually Projected sales of $4.4 million à à à à à à à à à à à à à à à Projected sales of $2.7 billion Flea IGR Introduction ââ¬â Similar Scenario â⬠¢Ã à à à à Great success of introduction of flea IGR PRECOR into PCO, veterinary and pet store markets. â⬠¢Ã à à à à In 1980 Zoecon broke into the supermarket segment by selling the PRECOR ingredient to itââ¬â¢s competitor dCon â⬠¢Ã à à à à In early 1983 Flea Ender (using PRECOR) was introduced to supermarkets by Zoecon ââ¬â 11 % of the market was captured by late 1983 â⬠¢Ã à à à à Flea Enderââ¬â¢s success attributed to a second 3rd party competitor S.C. Johnson â⬠¢Ã à à à à By 1985 Strike Flea Ender had captured 18% of the flea pesticide market and continues to achieve itââ¬â¢s profit objective Consumer Test Market Analysis Zoeconââ¬â¢s introduction of the Strike Roach Ender has captured a substantial portion of the test area household market segment. As seen in Table A the brand was recognized by over half of the households in the market and 6 %,( 70,200 households) of those households purchased the brand, resulting in a profit of $ 247,180.40. Though repeat purchases were also high at 30% (21,060 households) the profit generated was not enough to sustain a revenue in the trial market. Zoecon ended the market in a net loss of $$1,230,819.40. Figures are further broken down in Table A. Contribution margins were also high for Strike Roach Ender. Aerosol Strike had a contribution margin of 55.1% and fogger had an even higher margin of 57% as seen in Table B. Table C projects the break even analysis in both units and dollars as a basis for further projections. As seen in Table C substantially larger sales are required to break even. Industry Market Analysis Using the techniques from the test market estimates of market share and projected sales for the 19 city (80% of trial insecticide volume) are made for the introduction of Strike Roach Ender into the household market. I also chose to increase the advertising budget by 20% which increased costs to upwards of $12 million. This further drove the net loss to a final projection of $6,844,476 as seen in Table D. Much like the test market Contribution margins were also high for Strike Roach Ender. Aerosol and fogger Strike had a contribution margin exceeding 50% as seen in Table E. Table F projects the break even analysis in both units and dollars as a basis for further projections.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.