Recommended Action …show more content…
The risk for loss is too great. However, The consumer segment is a lucrative market with a lot of potential. I do not feel that a 6 month test market adequately represented the consumer attitude toward the product. I suggest that Zoëcon extend the test market for an additional year in the same geographic area. Since the initial introduction has been made, I suggest reducing marketing expenses by about $500,000 for the year. This marketing should emphasize the low toxicity of the product, as well as its long lasting effect. In October of 1986, re-evaluate ROACH ENDER’s position and if the brand is able to breakeven, continue with the launch.
I also suggest that Zoëcon mainly focus on the PCO market. Not only does this segment show great potential for market share, an industry the Zoëcon brand has already well established itself in, a good relationship with PCO’s is a form of marketing all on its own. A professional recommendation goes a long way with consumers. If PCOs are offered incentives to suggest, or even sell, the product, awareness and action will increase in the consumer