Essay About Consumer Insecticide Market And Strike Roach Ender.Some Executives

Zoecon Corporation
Zoecon Corporation
ZoeconZoecon 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 1987Other 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 MarketTwo SegmentsConsumer marketInsecticides 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 MarketEstimated annual sales for all consumer-disbursed insecticides in 1985 were $400 million at manufacturer’s pricesSales 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 brandBoyle-Midway Division of American Home Products accounted for 12% of the market with Black FlagD-Con company captured 10%No other company had more than 8%Supermarkets accounted for 70% of insecticide salesDrug-stores make up 9% of insecticide salesHost 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 seenConsumer 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.