Académique Documents
Professionnel Documents
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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
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
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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Consumers
WalMart
PetSmart
PETCO
KIOSK
INDUSTRY ANALYSIS
Blake, CEO & co-founder of Yorktown Tech. was concerned about what marketing strategy to recommend to the company BOD
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
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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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High market growth with low cash inflow, Low market share
Build greater MARKET SHARE
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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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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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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
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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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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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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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
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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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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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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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Disadvantages
The regulation and law is not clear for selling the fish. Asia countries also have their own ornamental fish.
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KEY DECISION
The best marketing strategy: Chain Stores & Internet
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independent experts) Fish Display tips & fish care tips Purchasing is available at a nearest store.
Orange, and the all new Cosmic Blue and Galactic Purple.
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THE END.
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