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Zoecon Corporation

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Zoecon Corporation

Zoecon

Zoecon Corporation executives met to assess future growth and profit opportunities for its strike brand insect growth regulator called strike ROACH ENDER.

  • Some executives believed Zoëcon should expand distribution of Strike Roach Ender to 19 cities in April 1986, with the intent of distributing the product nationally in April 1987
  • Other executives felt that Zoecon should concentrate its opportunities in the professional pest control market.
  • Other executives held the view that Zoëcon should sell its IGR compound to firms actively engaged in reaching the consumer insecticide market.  The firms included d-con Company, S.C. Johnson and Son (Raid), and Boyle-Midway Division of American Home Products (Black Flag).

Premise Insecticide Market

Two Segments

  • Consumer market
  • Insecticides for this market are packaged in easy-to-use, do-it-yourself containers sold mostly through supermarkets.
  • Professional pest control market consists of sales of insecticides, often in diluted form, to professional applicators.  Orkin and Terminix are examples of professional applicators.

Consumer Market

  • Estimated annual sales for all consumer-disbursed insecticides in 1985 were $400 million at manufacturer’s prices
  • Sales were forecasted to grow at an average rate of 10% per year through 1990.
  • S.C. Johnson and Son captured 45% of this market with its Raid brand
  • Boyle-Midway Division of American Home Products accounted for 12% of the market with Black Flag
  • D-Con company captured 10%
  • No other company had more than 8%

Supermarkets accounted for 70% of insecticide sales

Drug-stores make up 9% of insecticide sales

Host of other retailers such as home improvement centers and house and garden outlets make up 21%.

Aerosol sprays, including foggers, were the preferred method for applying insecticides and accounted for 74% of retail sales.  Liquid sprays followed with 14%.  Solids, strips, pastes, traps, and baits generated 12% of retail sales.

Quick-kill dominated the consumer mindset, hence the popularity of aerosols and liquids allowed for a chase and squirt when a roach was seen

Consumer market was subdivided into insect-specific insecticides.  Ant and roach killers captured 40% of the market, flying insect killers- 20%, flea killers 11%, and other insect-specific products- 29%.  

6-month period from May through October was the prime sales time for insecticides.  75% of annual sales were made during this period.  The southern tier of 14 states (from east coast to west coast) accounted for 50% of annual sales.

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