Greener Pastures
Decision to be made
Stone Age Marketing Consultants must assess the viability of HydroCan and its product, StaGreen, and determine which market to target and how to position StaGreen in that market, while developing a viable marketing strategy for the launch year.
Situation Analysis
Problem
HydroCan is a start-up company that is obtaining patents in both the United States and Canada for a new type of lawn care, and is in need of marketing advice concerning its new product, StaGreen. HydroCan has approached Stone Age Marketing Consultants to help determine which segment to target, how to position its new product, and what type of launch strategy it should use. Considering the launch must take place in February, just
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Opportunities * The consumer market is not brand loyal basing most purchase decisions on in-store promotions and sales staff recommendations. * StaGreen will be in high demand with golf course owners because it reduces the need for extra watering, and the slow-release technology reduces the number of applications required which will reduce groundwater pollution. * No matter what segment is chosen by HydroCan, the StaGreen product will benefit both consumer and commercial markets, by saving the consumer money in the long run.
Threats
* StaGreen is entering an extremely competitive market with two top firms, Scotts Co. and Ortho Chemicals, controlling 50% of the total consumer market. * Golf course owners tend to be highly brand loyal and are unwilling to risk switching to a new product.
Consumer Market Segment Analysis
The consumer lawn care market is big business in Canada with Canadians spending nearly $2.3 billion in 1995. If HydroCan targets the consumer market, the company will be competing primarily with fertilizers which accounted for 52% of $620 million in lawn maintenance sales in 1995. Not only does the consumer market have high expenditure, it also has competition with two top firms controlling approximately 50% of the total consumer market. Current prices are based on relative market share and strength, with the market
In William Cronon’s book Changes in the Land: Indians, Colonists, and the Ecology of New England, he discuses the ecological history of New England from the late sixteenth century to the early nineteenth century. He demonstrates how the New Englanders changed the land by illustrating the process of the change in the landscape and the environment. In the Preface Cronon states, “My thesis is simple: the shift from Indian to European dominance in New England entailed important changes—well known to historians—in the ways these people organized their lives, but it also involved fundamental reorganizations—less well-known to historians—in the region's plant
Companies currently operating within the golf industry, specifically Calloway Golf, must change their current marketing approaches and strategies to withstand the recession and threats facing the industry. Although Calloway has a strong R&D department that tends to remain competitive with products and technology, there have been little results in reference to scores. It is imperative that if companies are going to market a product that will help golfers drive further and straighter that the results depict this so that not to damage the brand name of a product. Secondly, due to the decline in equipment sales and the number of golfers, prices are dropping and companies are outsourcing to maintain the volume needed to remain competitive. Companies must be cautious and aware so that counterfeiting may be reduced. This reduction would also allow companies to reduce their pricing and have more sales without the competition of these cheaply priced knock-offs. In the instance of
America — a land known for its ideals of freedom and new opportunities, a nation built under the idea that every man and women is created equal. However, the definition of what makes a person an American is entirely different from what it is that makes up America, itself. J.Hector St. John Crevecoeur, author of Letters from an American Farmer (1782), exposes what he believes makes an American. However, when compared to the standards of what makes an American in today’s world, it seems that becoming an American then was much simpler then, than it is today. The definition of an American is always evolving due to the influences of our changing nation. During a simpler time, Crevecoeur defined an American as someone of European
Create a sample list of owners and properties. Your list will be similar in structure to that in Figure 1:30, but it will concern owners and properties rather than owners and pets. Your list should include, a minimum, owner name, phone and billing address, as well as property name, type and address.
The newly innovative fertilizer like product created by HydroCan called StaGreen brings to the market a new type of fertilizer like product that is different from the conventional leading fertilizers on the market. The ability of StaGreen’s water retention for the grass roots that have been applied with the product is something the traditional brands have not been able to recreate. Market analysis will be conducted on the consumer market, and commercial market, with a decision for which market/ markets will be most profitable to enter for HydroCan. Analysis will look at the financial barriers for each, including market growth and potential of each. After this, a marketing strategy
1. Railroads- Railroads in each area were often controlled by one company, enabling those railroads to charge what they wanted. Railroads were the only way for many western farmers to get their produce to market and high prices were always charged. Railroads controlled storage, elevators, and warehouses so the prices the farmers paid were very high.
Coracle, being a new brand should first adopt a push strategy since there is low brand loyalty and low brand awareness. This will generate exposure and encourage distributors to stock up on Coracle. Only 25% of consumers understand and use clarifiers regularly. This shows that there is low involvement in purchasing decision and perhaps an impulse item as a residential clarifier. And thus a push strategy is a good way to promote the product. However, since product benefits are not well understood by consumers, Soren can also adopt a pull strategy in communicating the actual value of Coracle, and let consumers know about the annual EVC rather than unit cost. It is hard to promote Coracle to the distributors since they understand that low annual cost of Coracle comes
The second alternative would be to direct their resources to the pest control operators. The projected annual sales increase for this market is 8 percent, which is a little less than that of the consumer market. Zoecon had their product Gencor (hydroprene) well received by PCO’s in 1984, therefore the consumers will have a positive view of a new product line from the same brand. A yearly investment of $500,000 per year above the 27% of sales will be budgeted for trade advertising and sales efforts to accelerate sales.
New golfers increased from 1.5 million to 3 million between 1988 and 1998, but most of them quit due to increased cost of playing which went up by nearly 50%, unavailability of courses and time involved in playing. The global premium equipment market declined post 1998 due to various reasons like decreased demand, Asian economic turmoil and saturation of product in the market place. To CGC’s benefit the competition on golf equipment
With the professional endorsement by these golfers, the target market was able to see the product in action and also learn how to properly use them. With practice, these average
- Product design is not according to the preference of the customers that makes it hard for consumer acceptance.
A group of professional members of Colorado State University excited about developing and marketing the product
If this technology were universally adopted by all manufacturers, there may be benefit to the industry as a whole. However, value brand manufacturers feel that brand image might be tarnished by concern about consumer’s “infringement on their access to cheap used balls.” Additionally, high-end manufacturers’ sales, which represent 67% of total new balls market, will be reluctant to adopt the technology due the belief that the consumers may buy new value brand golf balls rather than their own premium brand golf balls.
3. The Canadian gardening market is heavily saturated, and even more so as the granite business grows. With the advent of the internet, customers have more options to find cheaper alternatives to MNG’s products. This also means the company’s market share is significantly reduced.
Best Buy, a familiar retailer in the technology world, is struggling to stay on top. Online and mass stores have cornered the market in terms of convenience, customer service and price matching. The recent closing of over two hundred stores alongside falling sales has experts predicting that the giant won’t be in business long. Using a results-only work environment (ROWE), Best Buy has removed the customer from the equation and forced many employees out. A marketing disaster, Best Buy must change its marketing strategy from sales-based to a customer-based to stay afloat.