Case 2: Yorktown Technologies Group 7 I. Problem definition: Trying to find a marketing and distribution strategy that would help the company reach its revenue goals. II. SWOT Analysis: 1-Strengths: • The company raised additional capital to fund its business operations and had more than three dozen different investors • The firm will be launching the first commercially available biotech animal in the U.
S • Yorktown Technologies grabbed the attention of the media and the news of the upcoming Glo fish launch was on the front pages of many famous magazines • $ 4 million out of $ 700 million was spent on Yorktown Technologies products by consumers. • Yorktown technologies’ suppliers and distributors have been regular suppliers of tropical fish to the 3 major retail chains • The company 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 2-Weaknesses: Generated more than $ 120,000 loss in 2004 • There is no enough money to support a national advertising campaign • Not being able to sell the Glofish in California which is an important market with high population • High demand on limited supply • Some countries are still not convinced with the safety of the GloFish 3-Opportunities: • California is a very important market that has a population of 33 million who are willing to buy innovative products • International markets where the fish can be sold mainly Asia • Zebra fish are known to be very popular ornamental fish with more than 200 million sold in the U.
S alone • Two dozen regional wholesalers located throughout the country distribute freshwater ornamental fish to an estimated 5000 retail establishments for sale to consumers • Total sales of pet stores are increasing at an annual rate of 7% • Consumer market for freshwater ornamental fish and related products in U. S exceeds $700 million annually and is growing at a rate of 9% a year 4-Threats: • The blanket regulation that the California Fish and Game Commission passed and that prohibited the possession of genetically modified fish in California • Number of pet stores in U.
S is declining at annual rate of 2% • The anti-biotechnology groups that are trying to stop or disrupt the launching of Yorktown Technologies by spreading misinformation about the safety of the fish • The ethical and environmental questions regarding the sale of the genetically modified fish • The strong competition in Asia especially Taiwan where genetically modified fish is being sold and rumors say that some of them are being introduced in the U. S III-Alternative courses of action: 1-Alternative one: Opening a Glofish Kiosk in a shopping mall Advantages |Disadvantages | |Shopping mall kiosks have enjoyed explosive growth in |High renting cost per year | |terms of revenue and numbers |Customers might get confused with the availability of | |Offering GloFish branded tanks and supplies |different products | |These outlets sells variety of products |Small space | -Alternative two: Possibility of marketing the Glofish product line through the internet directly to consumers Advantages |Disadvantages | |no rent costs |Availability of numerous dot com firms that marketed | |no operating costs other than delivery |tropical fish to consumers | |ability to offer and show customers the variety of |Competitive prices | |products available for GloFish |Delivery cost is high | 3-Alternative three:
Selling the fish through international markets |Advantages |Disadvantages | |Increased sales |must consider foreign regulations that would apply to | |High market share |the genetically modified fish | |High brand awareness by consumer due to the expansion |cannot market the product in all countries | | |high competition with similar products and prices |
IV-Recommended course of action: My suggestion is to go with the first recommendation that states to open kiosks in shopping malls Reason of choice: Due to the fact that malls are explosively growing in numbers and revenue and this would be a great benefit for Yorktown Technologies. V-Recommendations: a-What should be done? Showing people the value Glofish add b-Who should do it? Middle management (marketing and distribution department) and the sales team that is in contact with the customers – When should it be done? As soon as all people are aware that the following fish are harmless and the regulations allow their sale. d- How should it be done? -displaying then fish in a way that will show their true color and glow which will be the first thing that will attract the customers -offering competitive prices and promotions -always reminding people that they are not a threat e- How much it will cost? Rent is high which is between $12,000 and $36,000 per year and operating costs
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