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Zoecon

...      What was learned from Zoecon’s flea IGR introduction? ...

§     Zoecon learned early on that they dominated the PCO, veterinary clinic, and pet store market with its flea IGR. ...
§     Through the help of d-Con, Zoecon learned to develop their own brand for sales through supermarkets. ...      What are the pros and cons of the options available for Zoecon’ Strike Roach Ender? What action should Zoecon pursue with regard to Strike Roach Ender?

1) Expand to 19-City Consumer Market

     PROS:
      -Repeat purchasing rate is encouraging in the test market
      -Product captured a potentially high market share
      -Produces the highest gross margin (55%)
     
     CONS:
      -Trial rate was only 6%
      -If test market results were replicated in the 19-city introduction, a loss would
      result
      -Requires a long term investment

2) Focus on PCO Market

      PROS:
      -Zoecon is already selling its IGR to PCOs
      -IGRs require educating buyers and PCOs can do this
      -51% margin, though lower than consumer market, is higher than selling to
      third-party manufacturers

      CONS:
      -PCO market is smaller than consumer market
      -May require additional $500,000 spending

     3) Sell Hydroprene to Third-Party Manufacturers

PROS:
-Means to reach without marketing expenses
-Has worked in the past with PRECOR
-Margin of 50% is comparable to PCO market (51%)

CONS:
-Possibly lose the opportunity to pursue consumer market under own brand
name
-Difficulty in getting buyers, as seen in past
-Less than the 55% margin that can be got by pursuing consumer market

4) Expand Consumer Marketing and PCO Effort

PROS:
-Possibility that PCO use will enhance sales of Strike Roach Ender when
benefits of IGR are observed
-Possible economies of scale

CONS:
-could be very expensive given test marketing experience
-Need to know to what extent the benefit is transferable between the PCO
and the consumer market


ACTION:

     I would focus on expanding Consumer Marketing and PCO effort.


Approximate Word count = 972
Approximate Pages = 3.9
(250 words per page double spaced)
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