StaGreen by HydroCan Case Study free essay sample

Introduction 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 will be compiled for the short term and viable long term of HydroCan and its chemical fertilizer StaGreen. Analysis The analysis will separate the two markets to analyze each markets strengths, weaknesses, opportunities, and threats associated with each. The first discussed will be the consumer market. We will write a custom essay sample on StaGreen by HydroCan Case Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Consumer: In the consumer market, consumers are at the mercy of the two largest sellers of fertilizer, Scotts and Ortho Chemical. Between these two companies they control approximately 50% of the $622 million fertilizer market. Neither company has a product from their various fertilizer products that is similar to StaGreen which gives HydroCan a competitive advantage in the market as it has found a way to differentiate itself from the major competitors. What makes StaGreen so innovative is its ability to retain water in the roots of the grass thus reducing the need to water the grass manually by up to 40%. HydroCan is a Canadian firm with headquarters in Canada, Canadian employees, which all appeals more towards Canadian consumers, therefore making it easier for consumers to have confidence in the company and purchase StaGreen as oppose to the other major brands from the United States. One of the disadvantages of being a new company with a new product in the fertilizer market is that manufacturing will be limited in production to 180,000 kilograms per month which limits the sales of fertilizer for the first few years. Advertising the product will also be limited to a budget as well due to this. Lastly HydroCan at this time only has one product that they are bringing to market which not only limits its potential future growth for the short term, but puts tremendous pressure for the one product to generate revenues and create cash flow for the business. There are large opportunities for StaGreen as it can be marketed not only as a fertilizer but the technology can also be applied to consumers who have recently installed new sod and/or seed on their lawns, thus expanding the market of the product to tap into this $1. 89 billion dollar industry it represents as well the $622 million fertilizer market. This significantly increases StaGreen’s potential market to over 2. 51 billion. Another key opportunity is that market research has shown that almost half of all consumers in purchasing fertilizer and fertilizer related products pay little-to-no attention to brand preferences and heavily rely on sales staff and in-store advertisements which is great when introducing a new fertilizer product. And lastly there are three distinct types of retailers that sell lawn care products that StaGreen can sell to, discount stores, specialty stores, and home improvement stores. The biggest threat in entering the consumer market is that HydroCan will have to compete against two companies that have had great historical success in the fertilizer market, Scotts and Ortho Chemical. These two companies control half of the entire fertilizer market, and are able to outproduce HydroCan, and outspend them in advertising. They also have established consumer confidence in brands they produce, as well as have more than one product line of fertilizers and fertilizer related products. Commercial: The commercial market consists primarily of golf courses that are looking to reduce costs while maintaining great looking greens and fairways for their customers, and apartment office complexes looking to upkeep the lawns at these facilities. StaGreen is again very different from conventional golf course fertilizers as it allows the grass to retain water longer, reducing the costs of watering the courses, and fertilizing. Another key strength StaGreen can have in this market is that there is less resistance from major fertilizer companies as the majorities are smaller privately owned companies, or small subsidiary divisions of Scotts and/or Ortho Chemical. Advertising is substantially less in this market because of this. Larger bags will allow distribution costs to be reduced significantly by $300,000 which has a direct effect on the companies’ bottom line. Research tests have shown that StaGreen will be able to reduce 1/2 the cost courses spend on water which equates to over $302 million in total for the 2400 Canadian courses, and by 1/3 the cost courses spend on fertilizer which equates to $114 million savings per year. The overall commercial market is much smaller than the consumer market. Golf courses account for $950 million, and commercial housing $118 million for a total of $1. 068 billion. Golf courses will have to be sold on the idea that a new product from a new company will be able to save the course money in irrigation and fertilizing fees, and that it performs as advertised. It can be costly to persuade golf course keepers to switch from conventional fertilizers to StaGreen. If StaGreen is not initially received well by the commercial market they will have no opportunity to recover. StaGreen is their only product and with so few buyers if even one initial buyer is left feeling like the product was of poor quality their influence on the market will likely result in the loss of current customers and future ones. Golf courses are under public scrutiny for their detrimental effects to groundwater quality. The fact that StaGreen reduces the need for fertilizers makes it extremely attractive to course owners looking to silence the bad press surrounding their course maintenance activities. This market offers a greater chance for profits because the competition is less fierce than having to compete in the consumer market for shelf space in large discount stores against Scott’s and Ortho Chemicals, both of whom have large advertising budgets. The seasonal aspect of lawn care related purchasing is not as severe in the commercial market as in the consumer; this means sales will still peak in the summer months but out of season sales levels will be sustained at a higher level than projected in the consumer market. Fewer buyers present a limited opportunity to break into the commercial market for HydroCan. There will always be competition from other sales teams attempting to poach current clients away from golf courses who may be using StaGreen. The sales representative team has the sole responsibility of insuring continued sales; if your team doesn’t execute the perfect pitch to a potential customer they go with a competing brands product. Other than golf courses this market doesn’t really offer the potential for any other major purchasers. Possible Outcomes There are three market strategies that can be taken by HydroCan, each with its advantages and disadvantages. The first would see HydroCan sell its StaGreen fertilizer like product to only the consumer market. This market would include selling to large discount stores, specialty stores, and home improvement stores that sell fertilizers. There are two major companies that control 50% of this $622 million market. Shelf space to compete against these brands would be costly in advertising and promotional sales, which would result in low profits for the first few years. The other part of this market includes selling StaGreen to new homeowners or those who have recently installed sod and/or seed on their lawns. The two major fertilizer companies do not have competing products that would compete against StaGreen in this segment of the market. The limited production capabilities limits HydroCan to producing only 18,000 10kg bags each month at a sales price of $33. 5 to retailers, which limits its potential revenue in the first year to $7. 236 million. After variable costs, administrative expenses, research development, fixed costs, distribution expenses, and marketing budget including 12 sales reps the potential profit is limited to $149,900 before tax. The next market strategy for HydroCan would be to solely focus on selling to the commercial market which is comprised of primarily golf courses, and commercial housing complexes. While there is less direct competition from the two major companies, there are smaller independent companies that sell directly to this market. Golf courses may be more reluctant to be sold on the product, and will therefore have to be pitched and demonstrated that StaGreen can and will save the course money. In this strategy, advertising would be greatly reduced, including reductions in distribution costs. The market size for StaGreen is $950 million as golf courses spend this amount on water and fertilizer throughout the year. Potential production would be 3600 bags a month, sold at $195 which creates potential revenue of $8. 424 million a year in sales. After all of the expenses have been deducted, including 16 sales reps, the profit potential on the year would be $2. 240 million before tax. This is the stronger of the two strategies for HydroCan, however, it puts extreme pressure on the sales reps to be able to convince golf courses to buy and use StaGreen. If they are not successful in their sales attempts, sales will be non-existent as the commercial housing market only accounts for 1/8th of the golf course market which is approximately $120 million, and is susceptible to increased competition from consumer market competitors as well. The final strategy, one that we are recommending as part of HydroCan’s market strategy for StraGreen is to focus on selling to both markets selectively. Rationale Recommendation The decision to choose both markets for StaGreen to be sold in appeals the most over the two other strategies because it provides HydroCan enormous potential growth on two very different markets, and not just one. To be able to advertise in the consumer markets it is recommended that StaGreen is sold only in the nine large discount retailers, ignoring the specialty and home improvement stores. Entering all three would be too costly for HydroCan to fund in its first year of operations. This selective marketing will allow StaGreen to sell to the bulk of the consumer market of 60%, and the large commercial market of golf courses and commercial housing at the same time. The competitive advantage of StaGreen’s technology and Canadian image will give it an arm up on the American competition when being sold in Canada. By combining these two very large markets, we are increasing StaGreen’s potential revenue and profit significantly. Marketing Strategy For the short term, StaGreen should max its monthly production to 180,000 kg to be able to produce orders to fulfill the large discount retailers, and golf courses that the sales rep for each, 7 for the discount retailer, and 12 for the commercial side will begin to accomplish locking in. The packaging of the product should make it easy to spot for consumers that the product is â€Å"Made in Canada† to help sell itself against the competitors brands. Through this packaging alone, advertising costs will be able to be reduced after the first initial season of selling as consumers will have confidence in the brand when they see that it works and is made in Canada. Sales reps will begin to make sales calls and pitch StaGreen to golf courses immediately to setup orders before the season begins. Emphasis on reducing the courses maintenance fees by using the product will be the main element of the sales pitch. Reps will be able to give out a small, limited, amount of samples for those courses who would like to try it and see the benefits firsthand. The longer term strategy after a few years once HydroCan begins to generate enough cash flow and profit would be to increase into the untouched 40% of the consumer market which includes the specialty and home improvement stores. Also recommended is for HydroCan to have a greater focus on the commercial housing market during this so they can maximize their market potential.

National Junior Honor Society Essay Sample

National Junior Honor Society Essay SampleFor the purposes of this article, a National Junior Honor Society essay sample is one that includes topics that are relevant to the student's high school experience. For example, if the student is an honor student in the sciences and planned to go into a STEM major, then the essay would have to be written in a scientific vocabulary. The goal is to give students an idea of what writing is like when they are writing for the honor society.All essays, no matter what topic, should include an anecdote or two from the student's experience at their local high school. This information can be from anything, but it should relate to the topic of the essay. Without the experience, it won't make sense to the essay writer.The student is expected to write an introduction to the essay and set the story in motion. They should do this by describing the setting of the essay. The following paragraph outlines the main theme of the essay, including an outline of th e specific points covered in the rest of the essay.There are five important parts to a National Junior Honor Society essay, each of which should be included. These five parts are structure, narrative, data, organization, and examples. All of these parts are interrelated to each other and should not be separated from each other.At the beginning of the introductory paragraph, the essay should describe the circumstances that led to the student's achievement. This could be something that relates to the club or the student. The next paragraph covers the first part of the essay, the structure. It describes how the student uses the structure of the essay to get the point across.The student should use the information provided in the introduction to provide information on words. The student needs to gather facts and information that will allow them to present a well written and informative essay. They need to think about the audience that will be reading the essay.The second paragraph of the essay must introduce the data. Data is the first part of the essay that makes the most difference in how well the essay will turn out. The final paragraph of the essay should cover the last part of the essay, organization.The National Junior Honor Society essay sample should help the student get started with the essay. They should not be afraid to follow directions because there is no reason why the essay cannot be written exactly the way the writer wants it to be. Following the directions will give the student a chance to get all of the information they need before they begin writing.