SWOT Analysis for Zoecon, and the Product, ROACH ENDER

SWOT Analysis for Zoecon, and the Product, ROACH ENDER

Main Problem Analysis

While no real problem exists with Zoecon, there is a conflict of interests in regard to how Strike ROACH ENDER is marketed. A meeting was set in which Zoecon executives were to analyze and discuss the test market results for the Strike ROACH ENDER, after it was placed in a consumer test market for six months in four cities representative of the 19-city market where 80 percent of roach insecticides were sold. These four cities included: Charleston, South Carolina; Beaumont, Texas; Charlotte, North Carolina; and New Orleans, Louisiana.

After these six months, executives were to determine which option would benefit Zoecon, resulting in the greatest return on profit. After analyzing the results, executives came up with three different options in which to market Strike ROACH ENDER. These options included:

Option One: was to expand the Strike ROACH ENDER distribution to the 19 cities where Strike FLEA ENDER was being sold. The research conducted by Zoecon's private marketing research group showed that the 19 cities accounted for 80 percent of roach insecticide volume. The executives at Zoecon agreed that the primary direct costs associated with distributing Strike ROACH ENDER to these 19 cities would be a price of $1,016,000. This cost would cover the advertising and promotions for the purpose of creating brand awareness in these 19 cities. The executives also agreed that the set-up/auditing, marketing research, and miscellaneous costs would not be repeated in order to expand distribution.

Option Two: Executives believed that Zoecon should focus on directing their resources to Pest Control Operators, (PCO's). They noted that GENCOR (hydropene) had been greatly received by PCOs in 1984. At the end of this year, many PCOs were promoting GENCOR's benefits to their customers. These Zoecon executives agreed that with an annual investment of $500,000 every year above the 27 percent of sales would be enough for trade advertising and and sales efforts towards accelerating use.

Option Three: Zoecon executives suggested that they pursue opportunities for selling hydropene to the makers of d-Con, Black Flag, and Raid for use in their products. While this strategy had worked in the past for PRECOR (methopene), it could pose as a threat or possible...

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... above their competition.

Weaknesses:

While there isn't a great deal of weaknesses to this option, executives might still agree that our competition will take advantage of our opportunity for growth in the consumer market. While this may be true, the results could be much worse if Zoecon jumps into the consumer market before gaining the reputation and earnings they would have produced from starting with the PCO's support behind their product. Zoecon has a specially designed product that is backed by strong, scientific research. Even though Zoecon's competitors will have a few years to breathe freely, after developing widespread attention from professionals, and gaining competitive edge, Zoecon is bound to quickly surprise the consumer market in the future.

Threats:

The only potential threats to this option is new innovations, or a lack of timing. Zoecon's patents will eventually time out, which will give competition access to the controlled compounds that Zoecon formulated. Although this threat could potentially destroy Zoecon's existence, the chances of this happening are very slim to nearly impossible unless every one of their plans fail in the PCO market.