Preview

Zoecon Case Analysis

Powerful Essays
Open Document
Open Document
2018 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Zoecon Case Analysis
Changes in top management at Zoëcon Corporation brought about a shift in corporate objectives. The new objectives emphasized a focus on high financial-return products and businesses. In January 1986, Zoëcon executives called 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, Zoëcon executives were faced with determining the most profitable future marketing strategy for their IGR products.

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.

Summary of the Major Alternatives

Zoëcon 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 Zoëcon cannot make a sufficient profit then marketing their IGR compounds through other firms may be the next opportunity. Zoëcon has already introduced the Strike FLEA ENDER to the consumer market in 19 states, where the product gained an

You May Also Find These Documents Helpful

  • Powerful Essays

    BUS 310

    • 3150 Words
    • 11 Pages

    Carrington Pest Control Company is a local pest control firm in a large city. The company’s business is to…

    • 3150 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Zoecon Corporation Essay

    • 857 Words
    • 4 Pages

    Should the Zoëcon Corporation expand the distribution to a 19 city area where 80 percent of roach control products are sold?…

    • 857 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Netw583 Caseanalysis3

    • 670 Words
    • 3 Pages

    Why have Personal Navigation Devices become popular? What technologies are required to facilitate the success of PND’s?…

    • 670 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Zoecon Corporation Case

    • 747 Words
    • 3 Pages

    Zoecon'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.…

    • 747 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Jet2 stakeholders

    • 2343 Words
    • 10 Pages

    PESTEL analysis: This tool will select the vital influences on the company's future development, which factors are most likely to change and which ones will have the greatest impact on the company.( Oxford University Press, 2007)…

    • 2343 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Zoecon Corporation

    • 718 Words
    • 3 Pages

    Zoecon Corporation sells a variety of animal-health-related and pest-control products. With a strong growth rate of 10% annually, Zoecon enjoys a 25% before-tax profit without a clear threat of declining demand. However, while the company’s trade relations with pest control operators (PCOs), veterinary clinics, and pet stores, stay strong; the company has found the profit from its consumer-market sector lacking. In an attempt to conquer the consumer market, some of Zoecon’s top executives have suggested heavy investment in marketing efforts for its new product line, Strike Roach Ender. Some other executives find the proposal too risky, and prefer to stay within the company’s comfort zone: the PCOs market. The other executives think that marketing efforts are irrelevant when the company can sell this new R&D project to national firms, such as S.C. Johnson and Son, Boyle-Midway Division of American Home Products, or d-Con Company. (Kerin and Peterson, 177)…

    • 718 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Should they use chemicals that they know are not good for the environment and could potentially cause an individual a lot of health issues, or should they research and use a much safer chemical that may not be as effective as other pesticides. Other benefits of choosing Berry`s Bug Blasters is they are offering a monthly special to all customers for the first month and offer monthly extermination plans.…

    • 699 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Zoës Kitchen began in 1995 as a family-run restaurant in Homewood, Alabama. The company's owner, president & CEO, John Cassismus had turned his attention from his own business ventures to the family business, with desires to build a world-class company. Mostly frequented by mothers with small children and white-collar employees in the area, the restaurant catered to those consumers with a desire for healthy foods at comparatively lower prices. As of December 2005 there were 16 locations in five different states. The brand was strong and synonymous with freshness, home-style goodness and family recipes. The menu boasted healthy selections, mostly with a Greek influence, (i.e. chicken pitas & roll-ups, salads & dinner plates) which consumers could also purchase in larger quantities for take-home consumption.…

    • 3210 Words
    • 10 Pages
    Better Essays
  • Better Essays

    Zoecon Case

    • 1026 Words
    • 5 Pages

    The Premise Insecticide Market would be characterized as being growing, demanding. The market is also characterized by high competition among industries in the United States. The market is divided into two segments which are the consumer market and the professional pest control market. Zoecon’s main competitors are S.C. Johnson and Son, Inc., The Boyle-Midway Division of American Home Products, and d-Con Company. Altogether, insecticide producers made about $400 million in sale revenues in 1985 in only the consumer market. Their revenue from sale in the professional pest control market for the same year is evaluated to $2.5 billion. Insecticide sales vary by geography and increase between May and October.…

    • 1026 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Later in the book, Carson proposes primarily biological alternatives to the chemical pesticides currently in use. However, introducing a foreign species or biological component may be impractical for the agricultural industry. I suspect it’s more expensive than chemical sprays, and businesses, even food ones, generally care more about money than their environment.…

    • 988 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Going public through an Initial Public Offering, or IPO, could be a great way for Berry’s Bug Blasters to raise a substantial amount of cash very quickly. This infusion of cash, if managed properly, could help their company expand into other geographic regions or expand their service offerings. They could use this cash, which they would otherwise not have, to purchase the necessary equipment to improve their pest treatment services. For example, by investing in “greener” pest treatment chemicals, they may be able to tap a new market and have a broader appeal. Also, this cash infusion could help them accomplish their other idea of purchasing a company in the same industry, thereby growing their stock value even further.…

    • 417 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Louise Document's

    • 691 Words
    • 3 Pages

    In any food processing plant, a pest management program is only as strong as the employees who implement it. To ensure a successful pest management program, the staff should be given training about prevention of pest problems before they occur. Not only does this serve as a low-cost training opportunity in a stressed economy, but it also can save money long-term by preventing pest problems that would require costly remediation.…

    • 691 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Many decades ago the chemical industry promised the growers that pesticides would bring great wealth and bountiful harvests to the fields.…

    • 2031 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Apex Chemical

    • 1031 Words
    • 3 Pages

    To help Apex make a decision we must determine where is the money, who has it, how do I get it, how do I repeat getting it, how can I add to it later, and how do I get it faster than anyone else? Compound A-115, a new electrolysis agent, has a potential market of $10MM and seems stable in the near term. This new compound is a technological breakthrough and outperforms every current product in the market. Additionally, the market only contains one competitor who currently dominates the field with a 95% satisfaction rating. This satisfaction rating should not scare Apex since customer satisfaction is based on past history and the case study does not mention if the survey asked customers about their willingness to switch products. If customers agree that A-115 is a superior product and is priced correctly Apex would have to spend some resources marketing their product but could make significant headway if branded correctly. Rigorous marketing could have the additional advantage of highlighting Apex’s plastic oxidizer products which may open new channels for sales. If Apex works hard to get 50% of the market share it would have a potential revenue stream of $5MM of which $1-2MM would need to be spent on marketing expenses leaving a much smaller profit in the short term.…

    • 1031 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chuvala, Bob. (2006, August 14). Blockbuster for Biodel. Fairfield County Business Journal (Indiana). Vol. 45 No. 33 pp 1-2. Retrieved October 20, 2006 fromEBSCO Host Research…

    • 1158 Words
    • 5 Pages
    Powerful Essays

Related Topics