MKT 750

PRESENTED BY: SITI MURNI MAT KHAIRI NUZUL FARISYA AHMAD FADZIL NURIZWA BAIZURA IZUDDIN YANG IDURA MOHD YUSOF AYU SUHASNEY SUHAINI BM770/2P
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INTRODUCTION
The company was founded by Alan Blake and Richard Crockett in Nov 2001.

Both of them are co-founded that provided web sites for university

professors.
The idea for Glofish originated when Crockett was studying a category of

fluorescent protein in 2001

After makes some research, they concluded that its not possible because the

fish already purpose for some research

In 2003 Yorktown technologies had announced that it would be marketing

Glofish genetically modified tropical zebra fish.

The announcement of Glofish make the Yorktown technologies became the

most highly publicized new company in the United States.

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PROBLEM DEFINITION
Objective

To find a marketing & distribution strategy that would help the company reach its revenue goals Distribution Alternatives???
Independent pet stores Chain stores Kiosks Internet

International marketing strategy??

Asia market (compete with Taiwan) GloFish market at Australia, Canada, & European Union were essentially closed Issues with California
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PROBLEM DEFINITION
Issues

Barrier by anti-biotechnology activist that has been: - Spreading misinformation concerning the safety of GloFish to be sell in California market Relationship with its suppliers, distributor & retailers being affected - Retailer refused to display the fish under optimal lighting & aquarium conditions - Major retail chain stores limited the number of fish to be sell Yorktown face a regulatory obstacles in possessing, selling & transporting the genetically modified fishes
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MARKETING MIX - Product

Freshwater Ornamental Fish
GloFish Starfire Red

GloFish Electric Green

GloFish Sunburst Orange

MARKETING MIX - Pricing

Traditional Zebra Fish Wholesalers Retailers Glofish Red Zebra Danios

5 cents 25 cents (including shipping) 75 cents - $1 $1.50 $5

Consumers

MARKETING MIX - Place

C

United State Market

WalMart

PetSmart

PETCO

MARKETING MIX - Place

CONSIDERING SELLING GLOFISH THROUGH INTERNET MARKETING

KIOSK

MARKETING MIX - Promotion

To educate public about GloFish
To create demand for GloFish

Advertise in 2 ornamental fish trade magazines

INDUSTRY ANALYSIS
Blake, CEO & co-founder of Yorktown Tech. was concerned about what marketing strategy to recommend to the company BOD

Specialized in the ornamental fish industry

Expected revenues $4 million (2002-2003)

But actual revenues only $500,000 (2004), expenses were $620,000 & operating loss of more than $120,000
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INDUSTRY ANALYSIS
California -> very important market for Yorktown due to population exceeding 33mill

Yorktown face a regulatory obstacles in marketing its GloFish, the genetically modified fishes

US Food & Drug Administration (FDA)

Fish & Game Commission

California Department of Fish & Game

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SWOT ANALYSIS
STRENGTH
1)
2) 3)

4)
5)

6)

Manage to raise additional capital to fund business operations Having more than three dozen different investors. The first company launching the commercially available biotech animal in US. Yorktown suppliers &distributors have been regular suppliers of tropical fish to the 3 major retail chains. Has grab the attention of the media & news of the upcoming Glo Fish launch was on the front pages of many famous magazines. It was given exclusive rights to lines of red green, yellow and orange fluorescent zebra fish which provided the company with an effective barrier to entry against potential competitors.

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SWOT ANALYSIS
WEAKNESSES 1) Loss and expenses amount is more than the revenue received in 2004. 2) Not enough money to support a national advertising campaign. 3) Unable to sell the Glo Fish in California which is an important market with high population. 4) High demand but limited supply by the retailers. 5) Some countries are still not convinced with the sale of Glo Fish.
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SWOT ANALYSIS
OPPORTUNITIES
1) 2) 3)

California population consist of 33million with consumers who are willing to buy innovative product. GloFish is an attractive fishes to the fish pet lovers which in return can increase sales and revenue of Yorktown Benefits of free publicity advertising due to issues arise in selling the GloFish

THREATS
1) 2)

3)
4)

Anti-biotechnology activist will not stop to disrupt the sale of GloFish Threat from advertising, publicity on media and news spreading inaccurate information about GloFish Relationship with its distributor&retailers is being affected by the inaccurate news and issues that arise Uncertainty to enter world markets such as the Asian Market, Taiwan as a competitors which offer ornamental fish at price below GloFish.
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STRATEGY BCG MATRIX

High market growth with low cash inflow, Low market share
Build greater MARKET SHARE

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STRATEGY BCG MATRIX

Question Marks???
YorkTown currently didnt make so much revenue /cash inflow due to they

dont have a large market share. The company revenues was only $500,000 in 2004 out of $4,000,000 sales projection Obstacles came from California game & Fish Commission and US Food and Drugs Administration where they claim the fishes are UNSAFE Not much retailers are willing to sell their product line do to the inaccurate information
There are opportunity to make more revenue/cash since GloFish potential market growth are relatively high This is due to the product attractiveness factors ability to glow in different colors in a completely dark room Opportunity to use the fish in determining a contaminated waterways

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STRATEGY BCG MATRIX

Stars
YorkTown needs to increase their MARKET SHARE proposition

by increasing the amount of investment Prove their product are SAFE to the environment by getting recognition from California Fish and Game Commission They need to invest their time, money and effort required to produce a comprehensive report to satisfy the government By doing so, they could expand their market to a larger capacity and improve consumers confidence especially in the US itself and other markets like California

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RECOMMENDATION & IMPLEMENTATION PLAN

Promotion
Communication program with distributor & retailers

Products
Variety the current product line

Distribution Channel
Market via chain stores (3 Major retail stores)

International Strategy
Market study to cater Asian consumer needs of choice

Educate retailers on display tips & procedure to keeping the fish

Continue with its R&D

Encourage suppliers (5D Tropical & Segrest) to promote GloFish to retailers

Internet : Direct contact with customers
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Develop logo & branding or core message

RECOMMENDATION & IMPLEMENTATION PLAN

Promotion
Build strong relationship with its distributor,

retailers through communication program Educate retailers on tips to display the fish & keep the GloFish safe Develop logo & branding or core message to convince retailers in marketing the GloFish & to develop confidence among consumers

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RECOMMENDATION & IMPLEMENTATION PLAN

Products
Offer more than a single product to be successful in

long term period with continuous study in product development Example: GloFish with various color (purple, blue &etc.) Each product come out with its own trademark. Example: Starfire

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RECOMMENDATION & IMPLEMENTATION PLAN

Distribution Channel
Independent pet stores

Advantages
Sales of pet stores are increasing at 7% annual rate
Convenient place to purchase freshwater ornamental fish with affordable price

Disadvantages
No of pet stores is declining at 2% annual rate Not a strong channel to market GloFish for future long term period Total average sales by pet stores about $1.7mill - Sales is being inflated, compete by very large chain pet stores

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RECOMMENDATION & IMPLEMENTATION PLAN

Chain stores
US market exceeds $700,000million (9% growth rate p/year) Worldwide market is approaching $2billion p/year In US, 3 major retail chain stores (Wal Mart, PetSmart & Petco)

Disadvantages
Require high effort to make GloFish as the most attractive pets than the other fishes available in the market May decrease the GloFish value due to chain stores is an intensive distribution

method (only found in specialty store) instead of exclusive method.

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RECOMMENDATION & IMPLEMENTATION PLAN

Chain stores

Advantages
The most popular place for buying the freshwater ornamental fish Allow GloFish to reach more customers and expand geographic borders of

market. The chosen place for first time customer & price-sensitive customers Marketing of Yorktowns GloFish is gaining acceptance and was being tested by Wal Mart & Petco. Strong relationship has been established by Yorktowns suppliers (5-D Tropical & Segrest) with the 3 major chain stores The best channel to market the GloFish with an expected higher return on revenue

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RECOMMENDATION & IMPLEMENTATION PLAN

Kiosks
Generated sales about $10 billion annually Seasonal sales occur s in Nov & Dec (40% from revenue) Sells variety of products other then pets

Advantages
Explosive growth on shopping mall kiosks

Disadvantages
High cost of production may incur on branded tanks, supplies, fish food and water condition
High cost of leased space in shopping mall Selling price is expected to be higher
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RECOMMENDATION & IMPLEMENTATION PLAN

Internet
Has launched its own website www.glofish.com

Advantages
Directly connect to customer Feedback & comments directly from customers can be used as a measure for improvement product planning

Disadvantages

Selling price is expected to be higher and competitive Delivery costs were several times higher than the price of the fish Have to think of the best delivery method to deliver the fish to customer No real display of fish via the Internet
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RECOMMENDATION & IMPLEMENTATION PLAN

International market Advantages
Fish can mainly be sold in Asia market as the most lucrative foreign market The company could sterilize its fish to prevent illegal breeding in areas where it could not otherwise control its intellectual property

Disadvantages
The regulation and law is not clear for selling the fish. Asia countries also have their own ornamental fish.

Facing big challenges of competitors (Taiwan) for Asia market

Some countries prohibit of selling GloFish (Australia, Canada, & European Union)

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KEY DECISION
The best marketing strategy: Chain Stores & Internet

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TODAYS SCENARIO OF YORKTOWN GLOFISH

Internet is being used as one of its marketing strategy Via Internet, information is provide to customer on:
GloFish fluorescent fish ethical principles GloFish fluorescent fish science (data on research, articles, data from

independent experts) Fish Display tips & fish care tips Purchasing is available at a nearest store.

Five stunningly beautiful colors - Starfire Red, Electric Green, Sunburst

Orange, and the all new Cosmic Blue and Galactic Purple.

Fish are not available in California due to the State's regulations.

Also not available anywhere outside of the United States.

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THE END.

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