MT631
LECTURE #12
OUTLINE

Zoecon Corp.:IGR

At issue here is the nature of new product diffusion. Also the question of dual distribution is part of this case. Market size estimates must be calculated based on product category, distribution channels, and geographic scope of the market coverage. Sales volume estimates using trial rates and repeat purchase data must be determined as well as profitability.

Discussion of the case will follow these basic questions:
  1. How might the Premise Insecticide Market be characterized for both the consumer and the professional segments?
  2. How do IGR's "fit" each segment? What was learned from Zoecon's flea IGR introduction?
  3. What has been learned from the Strike Roach Ender test market?
  4. What action should Zoecon pursue with regard to Strike Roach Ender?
    • Expand distribution to 19 city consumer markets
    • Focus exclusively on PCO's
    • Pursue opportunities to sell hydroprene to a third party
    • Expand both the consumer market and PCO marketing efforts
    • sell to third pary and pursue PCO's
  5. What specific information should be contained in a presentation to a potential third party?
Additional Study Questions and Drill Exercises
During class it was observed that the calculation of the market penetration seemed to offer a "natural" exam question. What level of market share would be necessary for the introduction of Strike Roach Ender to breakeven?