Zoecon Corporation Essay Example

However, this calculation does not include other administrative costs. According to the attached Excel spreadsheet, Strike's consumer market share is currently 9.5%. Given this level of revenue, it may prove challenging for the firm to compete with larger nationwide companies such as S.

One option is to focus on promoting C. Johnson's Raid, which currently holds a significant 40% market share. However, concentrating on opportunities in the PCOs market is the more practical and secure choice, given the firm's established position in that market. This option would require an estimated $500,000 for additional marketing efforts.

To calculate the potential increase in Zoecon's market share, we will use the statistics from Zoecon's flea insecticides sectors, since there is no data available on their roach insecticides (see Excel attachment). With a current return-on-marketing-expenses rate of $7.26 per dollar spent, Zoecon can raise its current market share by 1% – from 18% to 19%. Another option for Zoecon is to sell IRG to national firms that are heavily involved in the consumer market sector. This route offers a profit margin of 50% and eliminates any marketing expenses for Zoecon.

The executives of Zoecon must consider their market position carefully before compromising their opportunities in the consumer market. While developing the product image of Strike, Zoecon can achieve a profit margin of up to 61% after marketing expenses. Therefore, to retain their market share in the PCOs market and gain opportunities in the consumer market sector, Zoecon should combine option 1 and 2. Selling Strike nationwide is only risky in the first few years, as explained above.

Once the product gains its reputation, there will be a satisfactory margin

for the company. It is advisable for Zoecon to remain in the PCOs market due to its existing relations with other PCOs businesses. However, the extra $500,000 is not significant enough to generate a substantial increase in market share. Zoecon should also contemplate renaming Strike Roach Ender to distinguish their professional line from their consumer-market line.