Zoecon Corporation - Strike Roach Ender :: Case Study, solution

ToExecutive, Zoecon CorporationFrom DateThursday, February 17, 2005Subject accomplish Roach Ender gateway communicate IndustryConsumersProfessionalProjected Growth Rate of 10% annuallyProjected growth rate of 8% annuallyProjected gross revenue of $4.4 million Projected sales of $2.7 billion Flea IGR Introduction resembling ScenarioGreat success of introduction of flea IGR PRECOR into PCO, veterinary and pet store markets.In 1980 Zoecon broke into the supermarket segment by selling the PRECOR ingredient to its rival dConIn early 1983 Flea Ender (using PRECOR) was introduced to supermarkets by Zoecon 11 % of the market was captured by novel 1983Flea Enders success attributed to a second 3rd party rival S.C. JohnsonBy 1985 borrow Flea Ender had captured 18% of the flea pesticide market and continues to achieve its wampum objectiveConsumer Test Market AnalysisZoecons introduction of the carry Roach Ender has captured a substantial portion of the test area fellowship market segm ent. As seen in accede 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 receipts in the trial market. Zoecon ended the market in a lowest loss of $$1,230,819.40. Figures are save broken down in plank A. plowshare margins were also high for Strike Roach Ender. Aerosol Strike had a contribution margin of 55.1% and fogger had an plain 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 move on projections. As seen in Table C substantially larger sales are required to break even.Industry Market Analysis utilise 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 introducti on of Strike Roach Ender into the household market. I also chose to increase the advertising work out 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.